BILL REQ. #:  H-0282.1 

Prefiled 1/5/2007. Read first time 01/08/2007.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to increasing the availability of alternative fuels at retail fuel stations; and amending RCW 19.120.080.

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

Sec. 1   RCW 19.120.080 and 2000 c 171 s 72 are each amended to read as follows:
     Without limiting the other provisions of this chapter, the following specific rights and prohibitions shall govern the relation between the motor fuel refiner-supplier and the motor fuel retailers:
     (1) The parties shall deal with each other in good faith.
     (2) For the purposes of this chapter and without limiting its general application, it shall be an unfair or deceptive act or practice or an unfair method of competition and therefore unlawful and a violation of this chapter for any person to:
     (a) Require a motor fuel retailer to purchase or lease goods or services of the motor fuel refiner-supplier or from approved sources of supply unless and to the extent that the motor fuel refiner-supplier satisfies the burden of proving that such restrictive purchasing agreements are reasonably necessary for a lawful purpose justified on business grounds, and do not substantially affect competition: PROVIDED, That this provision shall not apply to the initial inventory of the motor fuel franchise. In determining whether a requirement to purchase or lease goods or services constitutes an unfair or deceptive act or practice or an unfair method of competition the courts shall be guided by the decisions of the courts of the United States interpreting and applying the anti-trust laws of the United States.
     (b) Discriminate between motor fuel retailers in the charges offered or made for royalties, goods, services, equipment, rentals, advertising services, or in any other business dealing, unless and to the extent that the motor fuel refiner-supplier satisfies the burden of proving that any classification of or discrimination between motor fuel retailers is reasonable, is based on motor fuel franchises granted at materially different times and such discrimination is reasonably related to such difference in time or on other proper and justifiable distinctions considering the purposes of this chapter, and is not arbitrary.
     (c) Sell, rent, or offer to sell to a motor fuel retailer any product or service for more than a fair and reasonable price.
     (d) Require a motor fuel retailer to assent to a release, assignment, novation, or waiver which would relieve any person from liability imposed by this chapter.
     (e) Threaten, harass, or coerce or attempt to coerce a motor fuel retailer for the purpose of compelling the retailer to refrain from purchasing or selling alternative motor fuel from a person or firm other than the refiner-supplier.
     (3) Any provision of a franchise that prohibits a motor fuel retailer from purchasing or selling an alternative motor fuel from a person or firm other than the refiner-supplier, or limits the quantity of motor fuel to be purchased from the other person or firm, or any provision of a franchise which directly or indirectly discourages a motor fuel retailer from purchasing or selling alternative motor fuels from other persons or firms, is null and void as it pertains to that particular alternative motor fuel if the refiner-supplier does not supply or offer to supply to the motor fuel retailer alternative motor fuel. Nothing in this subsection grants to any motor fuel retailer any rights, authority, or obligation with respect to the permissible uses of the premises or facilities owned, leased, or controlled by a refiner-supplier under the terms of the franchise.