Home > 106th Congressional Bills > H.R. 547 (ih) To amend the Internal Revenue Code of 1986 to establish and provide a checkoff for a Breast and Prostate Cancer Research Fund, and for other purposes. [Introduced in House] ...H.R. 547 (ih) To amend the Internal Revenue Code of 1986 to establish and provide a checkoff for a Breast and Prostate Cancer Research Fund, and for other purposes. [Introduced in House] ...
106th CONGRESS
2d Session
H. R. 5479
To prohibit certain discriminatory pricing policies in wholesale motor
fuel sales, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 17, 2000
Mr. Thompson of California (for himself, Mrs. Capps, and Mr. Filner)
introduced the following bill; which was referred to the Committee on
Commerce
_______________________________________________________________________
A BILL
To prohibit certain discriminatory pricing policies in wholesale motor
fuel sales, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Wholesale Motor Fuel Fairness and
Competition Restoration Act''.
SEC. 2. FINDINGS.
The Congress finds that--
(1) both wholesale and retail motor fuel prices are the
result of a number of complex factors, including those related
to supply, refining, consumer demand, and oil company cost,
pricing, and marketing practices;
(2) certain cost, pricing, and marketing practices employed
by the oil companies are unfair and anticompetitive, and
contribute to the unjustified price of retail motor fuel
charged the American consumer;
(3) among the unfair and anticompetitive oil company
practices are price zoning, redlining, discriminatory wholesale
motor fuel pricing, and a complex system of cost allocation
that hides the factors on which wholesale costs are based;
(4) the oil companies' practice known as price zoning is
one by which prices for motor fuel are set solely because of
the retail station's geographic location unrelated to cost-of-
business factors;
(5) price zoning allows an oil company to artificially
increase or depress retail motor fuel prices in order to secure
an unfair market advantage against competitors;
(6) the oil companies engage in a practice known as
redlining, whereby a refiner refuses to sell motor fuel to
distributors or particular geographic markets;
(7) redlining allows an oil company to force concessions
from a distributor and affords the company the opportunity to
exert undue influence in a particular area or region;
(8) the oil companies engage in a practice of
discriminatory wholesale pricing of motor fuel based on the
relationship of the purchaser to the oil company and the degree
of competition they provide;
(9) discriminatory pricing allows oil companies to charge
different wholesale prices to company owned and operated retail
stations, franchisees, and independent retailers though all may
be situated in the same community and face the same competitive
and operating factors;
(10) the oil companies engage in a complex system of cost
allocations by which they employ rebates, incentives, credits,
and market enhancement allowances that hide the factors on
which wholesale prices are based or published;
(11) the complex system of cost allocation allows oil
companies to post a ``wholesale price'' that is far different
from the actual wholesale price that would be revealed if the
cost factors were publicly identified and appropriately
allocated; and
(12) it is appropriate for the Federal Government to
prohibit these unfair oil company cost, pricing, and marketing
practices, to restore fair and competitive practices to the
wholesale sale of motor fuel, and to allow American consumers
to assess for themselves the factors that contribute to the
price changes they pay at the retail pump.
SEC. 3. PRICE DISCRIMINATION PROHIBITION.
(a) Prohibition.--
(1) In general.--It shall be a violation of this Act for an
owner or operator of a terminal facility to sell motor fuel
from the terminal facility to a distributor or retailer at a
price in excess of the price it charges any other distributor
or retailer, including a distributor or retailer which it owns
or with which it is affiliated.
(2) Price determination.--For purposes of this subsection,
the price an owner or operator of a terminal facility charges a
distributor or retailer which it owns or with which it is
affiliated shall be the price determined pursuant to the
regulations issued under section 4(a).
(3) Exception.--A sale shall not be in violation of this
subsection if it is made pursuant to the terms of a franchise
or sales contract entered into before October 17, 2000.
(b) Civil Penalty.--The Federal Trade Commission may assess a civil
penalty, not to exceed $1,000,000, for each violation described in
subsection (a).
(c) Criminal Penalty.--Whoever knowingly violates subsection (a)
shall be fined under title 18, United States Code, or imprisoned not
more than 5 years.
(d) Effective Date.--This section shall take effect 6 months after
the date of the enactment of this Act.
SEC. 4. FULL DISCLOSURE.
(a) Requirement.--The Federal Trade Commission, in consultation
with the Secretary of Energy, shall issue regulations requiring full
disclosure by refiners and distributors of their wholesale motor fuel
pricing policies, including rebates, incentives, and market enhancement
allowances. Such regulations shall establish procedures for determining
the price an owner or operator of a terminal facility charges a
distributor or retailer which it owns or with which it is affiliated.
(b) Effective Date.--The regulations issued under subsection (a)
shall take effect 6 months after the date of the enactment of this Act.
(c) Public Dissemination.--The Federal Trade Commission shall
ensure that all information acquired pursuant to the regulations issued
under subsection (a) are made available to the public, except trade
secrets and commercial or financial information protected from
disclosure under subsection (b)(4) of section 552 of title 5, United
States Code (commonly referred to as the Freedom of Information Act).
Such information may be disseminated through the Energy Information
Administration.
SEC. 5. OWNERSHIP STUDY AND REPORT.
Not later than 18 months after the date of the enactment of this
Act, the Federal Trade Commission, in consultation with the Secretary
of Energy, shall transmit to the Congress a report containing the
results of a study of whether ownership or operation by a refiner of a
facility for the retail sale of motor fuel has anticompetitive effects
on the price of motor fuel. Such report shall include any
recommendations for legislative or administrative actions the Federal
Trade Commission, in consultation with the Secretary of Energy,
considers appropriate.
SEC. 6. DEFINITIONS.
For purposes of this Act, any term defined in section 101 of the
Petroleum Marketing Practices Act (15 U.S.C. 2801) shall have the
meaning given the term in that Act.
<all>
Pages: 1 Other Popular 106th Congressional Bills Documents:
|
| GovRecords.org presents information on various agencies of the United States Government. Even though all information is believed to be credible and accurate, no guarantees are made on the complete accuracy of our government records archive. Care should be taken to verify the information presented by responsible parties. Please see our reference page for congressional, presidential, and judicial branch contact information. GovRecords.org values visitor privacy. Please see the privacy page for more information. |
 |