February 19, 2008, Introduced by Senators OLSHOVE, GILBERT, JELINEK, BIRKHOLZ, BARCIA, ALLEN, VAN WOERKOM, CROPSEY and HARDIMAN and referred to the Committee on Agriculture.
A bill to amend 1990 PA 134, entitled
"Motor fuel distribution act,"
by amending the title and section 2 (MCL 445.1802) and by adding
section 5a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to regulate the termination and transfer of motor fuel
franchises; to prohibit certain conduct relating to purchasing and
selling of alternative motor fuels; and to provide for certain
remedies and penalties.
Sec. 2. As used in this act:
(a) "Alternative motor fuel" means any of the following:
(i) A blend of ethanol and gasoline that includes at least 70%
ethanol.
(ii) A blend of methyl-ester, commonly referred to as
"biodiesel", and diesel motor fuel that includes at least 2%
methyl-ester.
(iii) Motor fuel comprised primarily of methane, stored in
either a gaseous or liquid state and suitable for use and
consumption in the engine of a motor vehicle, commonly referred to
as "compressed natural gas".
(iv) Hydrogen.
(b) (a)
"Contract" means any oral or written agreement.
(c) (b)
"Franchise" means a contract between a refiner and a
retailer or between a distributor and a retailer, under which a
refiner or distributor authorizes or permits a retailer to use, in
connection with the sale, consignment, or distribution of gasoline,
diesel, gasohol, or aviation fuel, a trademark that is owned or
controlled by a refiner, or by a refiner that supplies fuel to the
distributor that authorizes or permits such use. Franchise
includes, but is not limited to, both of the following:
(i) A contract under which a retailer is authorized or
permitted to occupy leased marketing premises, which premises are
to be employed in connection with the sale, consignment, or
distribution of fuel under a trademark that is owned or controlled
by a refiner.
(ii) A contract pertaining to the supply of fuel that is to be
sold, consigned, or distributed by a retailer under a trademark
owned or controlled by a refiner.
(d) (c)
"Distributor" means a person, including any affiliate
of the person, who meets either of the following requirements:
(i) Purchases motor fuel for sale, consignment, or distribution
to another.
(ii) Receives motor fuel on consignment for consignment or
distribution to his or her own motor fuel accounts or to accounts
of his or her supplier, but does not include a person who is an
employee of, or merely serves as a common carrier providing
transportation service for the supplier.
(e) (d)
"Franchisee" means a retailer who is authorized or
permitted, under a franchise, to use a trademark in connection with
the sale, consignment, or distribution of fuel. Franchisee does not
include
a distributor which that resells motor fuel to retailers,
to the general public, or to both retailers and the general public.
(f) (e)
"Franchisor" means a refiner or distributor who
authorizes or permits, under a franchise, a retailer to use a
trademark in connection with the sale, consignment, or distribution
of fuel.
(g) (f)
"Marketing premises" means, in the case of any
franchise, premises that, under the franchise, are to be employed
by the franchisee in connection with the sale, consignment, or
distribution of motor fuel.
(h) (g)
"Motor fuel" means gasoline, and diesel fuel, and
alternative motor fuels of a type distributed for use as a fuel in
motor vehicles or watercraft.
(i) "Motor vehicles" means self-propelled vehicles designed
primarily for use on public streets, roads, and highways.
(j) (h)
"Refiner" means a person engaged in the refining of
crude
oil to produce motor fuel , and includes any affiliate of the
person.
(k) (i)
"Retailer" means any person who purchases motor fuel
for sale to the general public for ultimate consumption.
(l) "Watercraft" means that term as defined in section 78101 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.78101.
Sec. 5a. (1) Beginning 30 days after the effective date of the
amendatory act that added this section, if a franchisor does not
supply or offer to supply alternative motor fuel to its
franchisees, the franchisor and a franchisee shall not enter into a
contract that contains any of the following:
(a) A provision that prohibits the franchisee from purchasing
or selling alternative motor fuel from a refiner or distributor
other than the franchisor.
(b) A provision that limits the quantity of alternative motor
fuel that the franchisee is allowed to purchase from a refiner or
distributor other than the franchisor.
(c) A provision that directly or indirectly discourages the
franchisee from purchasing or selling alternative motor fuel from a
refiner or distributor other than the franchisor.
(2) A provision in a contract between a franchisor and
franchisee that violates subsection (1) is void and unenforceable.
(3) A franchisor or an officer, agent, or employee of a
franchisor who threatens, harasses, coerces, or attempts to coerce
a franchisee for the purpose of compelling the franchisee to
refrain from purchasing or selling an alternative motor fuel from a
refiner or distributor other than the franchisor is guilty of a
misdemeanor punishable by a fine of not more than $1,000.00 for
each violation.