Connecticut Seal

General Assembly

 

Committee Bill No. 5869

January Session, 2011

 

LCO No. 4026

 

*04026HB05869GL_*

Referred to Committee on General Law

 

Introduced by:

 

(GL)

 

AN ACT BANNING GASOLINE ZONE PRICING.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 16a-23 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2011):

(a) No person engaged in the business of refining petroleum into gasoline and furnishing gasoline to retail distributors of gasoline for sale to the public in this state shall fail to furnish gasoline to independent retail distributors of gasoline in this state, whether or not franchised by such person, at wholesale prices in reasonable quantities as long as [he] such person continues to furnish gasoline to retail distributors of gasoline in this state which are wholly owned by [him] such person or operated under a franchise granted by [him] such person.

(b) It shall constitute, prima facie, a violation of the provisions of subsection (a) of this section for any such person (1) during any calendar month beginning after July 1, 1973, to deliver to independent retail distributors of gasoline in this state a percentage of the total gallons of gasoline delivered by [him] such person to all retail distributors of gasoline in this state during that month which is lower than the percentage of the total gallons of gasoline delivered by [him] such person to all retail distributors of gasoline in this state during the period from July 1, 1971, to June 30, 1972, which was delivered by [him] such person to independent retail distributors of gasoline in this state during that period, or (2) to sell gasoline to independent retail distributors of gasoline in this state at a price during any such month which is greater than (A) the average price at which [he] such person sold gasoline to such distributors during the period from July 1, 1971, to June 30, 1972, increased by (B) a percentage equal to the percentage by which the average price for gasoline sold during that month to retail distributors of gasoline which are wholly owned by, or operated under a franchise granted by, that person exceeds the average price for gasoline sold to such distributors during the period from July 1, 1971, to June 30, 1972.

(c) 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 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 and refiner shall not discriminate in the price of such gasoline charged to retail sellers of gasoline in this state, except to offer discounts or rebates that may be determined by such producer or refiner from time to time. Such discounts or rebates shall be disclosed by the producer or refiner to the retail sellers and shall be offered by the producer or refiner to all of its retail sellers on equal terms and conditions. When offered, all such discounts or rebates and the time period they are offered shall be listed as a separate line item entry on each invoice.

[(c)] (d) A violation of the provisions of subsection (a) or (c) of this section constitutes an unfair trade practice within the provisions of chapter 735a.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2011

16a-23

Statement of Purpose:

To ban the wholesale pricing of gasoline based on a service station's geographic location.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]

Co-Sponsors:

REP. TONG, 147th Dist.; REP. FOX, 146th Dist.

SEN. DUFF, 25th Dist.

H.B. 5869