S-4327               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 4621

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Senate Committee on Transportation (originally sponsored by Senators Halsan, Peterson, Johnson, Bender, Bottiger, Vognild, McManus, Warnke, Deccio and Lee; by request of Select Committee on Petroleum Marketing Practices)

Read first time 2/7/86.

AN ACT Relating to retail sales of motor vehicle fuel; adding a new chapter to Title 19 RCW; adding a new section to chapter 19.86 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

          (1) "Motor fuel refiner-supplier" means any person, firm, or corporation, including any affiliate of the person, firm, or corporation, engaged in the refining of crude oil into petroleum who supplies motor fuel for sale, consignment, or distribution through retail outlets and has an operable refinery capacity of three hundred twenty-five thousand barrels a day as reported to the federal department of energy.

          (2) "Motor fuel retailer" means a person, firm, or corporation engaged primarily in the sale of motor fuel pursuant to a motor fuel franchise entered into with a refiner-supplier.

          (3) "Retail motor fuel outlet" means any location where motor fuel is distributed for purposes other than resale.

          (4) "Marketing area" means an area not less than the county in which the retail motor fuel outlet, selling products of the same trademark as the motor fuel refiner-supplier, is located.

          (5) "Affiliate" means any person, firm, or corporation who controls or is controlled by any motor fuel refiner-supplier, and includes any subsidiary or affiliated corporation in which the motor fuel refiner-supplier or its shareholders, officers, agents, or employees hold or control more than twenty-five percent of the voting shares.

NEW SECTION. Sec. 2.     A motor fuel refiner-supplier shall sell motor fuel to a motor fuel retailer, selling products of the same trademark as the motor fuel refiner-supplier, at a price five cents below the lowest posted retail price for the motor fuel sold at any retail motor fuel outlet which it operates with company personnel, a subsidiary company, or commissioned agents, or under contract with any person, firm, or corporation managing any such outlet for a commission or fee within the marketing area of the motor fuel retailer.

NEW SECTION. Sec. 3.     The department of licensing shall adopt rules under chapter 34.04 RCW to implement this chapter, including penalties that may include civil fines not to exceed five thousand dollars per day.

NEW SECTION. Sec. 4.  A new section is added to chapter 19.86 RCW to read as follows:

          Any violation of section 2 of this act shall also constitute a violation under RCW 19.86.020.

NEW SECTION. Sec. 5.     Sections 1 through 3 of this act shall constitute a new chapter in Title 19 RCW.