H 3962 General Bill, By M. McLeod
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 39-41-55 so as to enact the "Fair Wholesale Pricing of Motor Fuel Act" by
 limiting certain sales by a motor fuel refiner or supplier, defining terms,
 and providing for injunctive relief and treble damages.

   04/30/91  House  Introduced and read first time HJ-11
   04/30/91  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-11

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-41-55 SO AS TO ENACT THE "FAIR WHOLESALE PRICING OF MOTOR FUEL ACT" BY LIMITING CERTAIN SALES BY A MOTOR FUEL REFINER OR SUPPLIER, DEFINING TERMS, AND PROVIDING FOR INJUNCTIVE RELIEF AND TREBLE DAMAGES.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. The General Assembly finds that:

(1) The distribution of motor fuel vitally affects the general welfare of this State.

(2) The continued viability of independent retailers and distributors is essential to the preservation of a fair and competitive motor fuel market.

(3) Unfair wholesale pricing policies threaten the viability of independent retailers and distributors as competitors essential to a healthy motor fuel market.

SECTION 2. This act may be cited as the "Fair Wholesale Pricing of Motor Fuel Act".

SECTION 3. The 1976 Code is amended by adding:

"Section 39-41-55. (A) As used in this section:

(1) `Refiner-Supplier' means a person engaged in the refining of petroleum products or in supplying petroleum products to distributors. It does not include a distributor.

(2) `Distributor' means a person other than a refiner-supplier who purchases motor fuel for sale, consignment, or distribution to another.

(3) `Retailer' means a person other than a refiner-supplier who purchases motor fuel for sale to the general public for ultimate consumption.

(4) `Operated by a refiner-supplier' includes an outlet run by employees or affiliates, a subsidiary company, or a commissioned agent on behalf of the refiner-supplier.

(B) No refiner-supplier may sell or offer to sell any grade of motor fuel to a retailer or distributor for a wholesale price that is greater than or equal to the lowest price that the refiner-supplier sells or offers to sell the grade of motor fuel:

(1) through a retail outlet operated by the refiner-supplier in this State less reasonable cost of doing business at a retail outlet;

(2) to a commercial account less the reasonable costs of the functions required to sell the motor fuel to the commercial account.

(C) In an action under this section the court shall grant temporary or permanent injunctive relief to a person upon showing that the wholesale price to the retailer or distributor is not in compliance with the requirements of this section.

(D) A person may maintain an action for treble the amount of damages shown to have been incurred by a violation of this section."

SECTION 4. This act takes effect upon approval by the Governor.