[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1639 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 1639
To amend the Petroleum Marketing Practices Act to extend certain
protections to franchised refiners or distributors of lubricating oil.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 22, 2003
Mr. Reid (for himself, Mr. Burns, and Mr. Ensign) introduced the
following bill; which was read twice and referred to the Committee on
Energy and Natural Resources
_______________________________________________________________________
A BILL
To amend the Petroleum Marketing Practices Act to extend certain
protections to franchised refiners or distributors of lubricating oil.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PROTECTION OF FRANCHISED DISTRIBUTORS OF LUBRICATING OIL.
(a) Definitions.--Section 101 of the Petroleum Marketing Practices
Act (15 U.S.C. 2801) is amended--
(1) in paragraph (1)(B)--
(A) in clause (ii)(II), by striking ``and'' at the
end;
(B) by redesignating clause (iii) as clause (iv);
and
(C) by inserting after clause (ii) the following:
``(iii) any contract under which a refiner
authorizes or permits a distributor to use, in
connection with the sale, consignment, or
distribution of lubricating oil, a trademark
that is owned or controlled by the refiner;
and'';
(2) in paragraphs (2), (5), and (6), by inserting ``or
lubricating oil'' after ``motor fuel'' each place it appears;
(3) by striking paragraphs (3) and (4) and inserting the
following:
``(3) Franchisee.--The term `franchisee' means--
``(A) a retailer or distributor that is authorized
or permitted, under a franchise, to use a trademark in
connection with the sale, consignment, or distribution
of motor fuel; or
``(B) a distributor that is authorized or
permitted, under a franchise, to use a trademark in
connection with the sale, consignment, or distribution
of lubricating oil.
``(4) Franchisor.--The term `franchisor' means--
``(A) a refiner or distributor that authorizes or
permits, under a franchise, a retailer or distributor
to use a trademark in connection with the sale,
consignment, or distribution of motor fuel; or
``(B) a refiner that authorizes or permits, under a
franchise, a distributor to use a trademark in
connection with the sale, consignment, or distribution
of motor fuel.''; and
(4) by adding at the end the following:
``(20) Lubricating oil.--The term `lubricating oil' means
any grade of paraffinic or naphthenic lubricating oil stock
that is refined from crude oil or synthetic lubricants.''.
(b) Protection of Franchised Distributors of Lubricating Oil.--
Section 102(b)(2) of the Petroleum Marketing Practices Act (15 U.S.C.
2802(b)(2)) is amended by inserting after subparagraph (E) the
following:
``(F) Franchised distributors of lubricating oil.--
In the case of a franchise between a refiner or a
distributor for the sale, distribution, or consignment
of trademarked lubricating oil, a determination made by
the franchisor in good faith and in the normal course
of business to withdraw from the marketing of the
lubricating oil in the relevant geographic market in
which the franchised lubricating oil is distributed,
if--
``(i) the determination is made--
``(I) after the date on which the
franchise is entered into or renewed;
and
``(II) on the basis of a change in
relevant facts or circumstances
relating to the franchise that occurs
after the date specified in subclause
(I); and
``(ii) the termination or nonrenewal is not
for the purpose of converting any accounts
subject to the franchise to the account of the
franchisor.''.
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