SENATE BILL REPORT

SB 5760

BYSenators Bailey, Williams, Fleming, McMullen and Kreidler

Creating the oil heat commission.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):January 27, 1989; February 21, 1989

Senate Staff:Paul Parker (786-7447)

AS OF FEBRUARY 21, 1989

BACKGROUND:

Commodity commissions are authorized by law to promote, stabilize and contribute to the development of several sectors of the state's agricultural industry.  Funded by member assessments, statutory commodity commissions exist for dairy products, wheat, beef, wine and apple advertising, among others.

SUMMARY:

An Oil Heat Commission is established to stabilize and protect the oil heat industry.  Following the model of agricultural commodity commissions, the Oil Heat Commission is comprised of a board of eight oil heat dealers elected by affected oil heat dealers, two public members appointed by the elected oil heat dealers, and the director of the State Energy Office, who sits as a member of the board without a vote.

The commission, with the approval of the affected oil heat dealers, may establish a fund based on member assessments and other available funds to be used for its operations and programs.  Programs may include energy conservation programs, equipment research and development, employee training, safe use and storage of oil products and cleanup in the event of a leak or spill, assistance for claims brought against a customer with an oil tank leak and investigation of unfair trade practices.

Member assessments shall not exceed one cent per gallon of heating oil sold.  The commission may take legal action to collect unpaid assessments.

Anticompetitive practices such as price-fixing and production limits are specifically prohibited.  No commercial conduct contrary to the Consumer Protection Act is authorized.  The commission may adopt rules or orders under APA procedures.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested

Effective Date:July 1, 1989