You asked if the phrase “producer or refiner” in the sentence in Senate Amendment "A" (LCO 4638) to SB 502 beginning on line 34 includes jobbers. The Office of Legislative Research is not authorized to render legal opinions and this report should not be construed as one.

The phrase applies only to those businesses that produce or refine petroleum and furnish it to retail sellers. Thus it does not appear to include “jobbers” as the term is commonly understood in the industry.

The sentence states:

No producer or refiner of petroleum products who is subject to the provisions of section 14-344a and furnishes gasoline to a person that sells gasoline at retail in this state shall use a pricing system under which the wholesale price paid for such gasoline by such retail seller is determined based on the geographic location of such retail seller in any geographic zone in this state, or any other system that would prevent retail sellers of gasoline from paying lower prices on an equal basis with other retail sellers of gasoline in this state. Such producer or refiner shall sell such gasoline at the posted rack price of such producer or refiner.

The sentence refers to producers and refiners who are subject to the provisions of CGS § 14-344a. This statute is the first of four sections that are collectively known as the “divorcement law. ” The first section prohibits petroleum product producers and refiners from opening, after July 1, 1979, a major brand, secondary brand, or unbranded retail service station and operating it with its own employees or those of a subsidiary, commissioned agent or employees under contract. It restricts operation of service stations to retail service station dealers. The second section prohibits petroleum product producers and refiners from operating such stations after July 1, 1980 (CGS § 14-344b).

A “jobber” is an industry term generally describing businesses that operate in the wholesale level of the industry. The term is not defined by state law, although it is used in several sections, typically as part of a list of the parts of a product distribution chain, such as “manufacturer, wholesaler, dealer, or jobber” (CGS § 29-364). Further, we did not find it defined in Connecticut caselaw.

We found the term defined in federal case law.

The term “jobber,” which is not defined in the PMPA [the federal Petroleum Marketing Practices Act], is generally taken to mean “(o)ne who buys and sells goods for others(,)” Black's Law Dictionary 970 (4th ed. 1968), or “wholesaler(,)” Webster's Third New International Dictionary 1217 (1971). Thus, a typical branded fuel jobber would fit squarely within the PMPA definition of “distributor” (Checkrite Petroleum, Inc. v. Amoco Oil Co. , 678 F. 2d 5, 1982).

The term is also defined in another decision. “A jobber is an intermediate distributor who resells gasoline and other products to dealers, the independent service station operators who sell directly to the motoring public” (Amoco Oil Co. v. Barrier Gas Service, Inc. , not reported in F. Supp. , 1992 WL 232077 (S. D. N. Y. )).

In the gasoline industry, a jobber may sell at wholesaler as well as at retail. It is a local company that owns or supplies properties with petroleum products obtained from local supply points, does not produce gasoline, and usually buys at the branded or unbranded rack.   A jobber may or may not own and operate retail outlets.   Jobbers are also known as “distributors or marketers. ”

Consequently, the prohibition against zone pricing in Senate Amendment “A” does not appear to prohibit jobbers from zone pricing.

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