S 1518 General Bill, By Patterson and F. Gilbert
 A Bill to amend Section 39-5-350, Code of Laws of South Carolina, 1976,
 relating to merchandising unfair trade practices and exemptions, and Section
 39-3-150, relating to the provisions of law that sales at less than cost for
 the purpose of injuring competitors is a conspiracy to form a monopoly, so as
 to provide that any sale of motor fuel in the wholesale or retail market at a
 level below the actual cost of acquiring the product, including transportation
 and taxes, shall require documentation of the date, time, and specific
 business by actual location responsible for creating the need to sell below
 cost, and provide for related matters; and to amend the 1976 Code by adding
 Section 39-41-255 so as to require every service station to post in a
 conspicuous place the self-service pump price for each type of gasoline it has
 available and provide for related matters.

   04/28/92  Senate Introduced, read first time, placed on calendar
                     without reference SJ-26

INTRODUCED

April 28, 1992

S. 1518

S. Printed 4/28/92--S.

Read the first time April 28, 1992.

A BILL

TO AMEND SECTION 39-5-350, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MERCHANDISING UNFAIR TRADE PRACTICES AND EXEMPTIONS, AND SECTION 39-3-150, RELATING TO THE PROVISION OF LAW THAT SALES AT LESS THAN COST FOR THE PURPOSE OF INJURING COMPETITORS IS A CONSPIRACY TO FORM A MONOPOLY, SO AS TO PROVIDE THAT ANY SALE OF MOTOR FUEL IN THE WHOLESALE OR RETAIL MARKET AT A LEVEL BELOW THE ACTUAL COST OF ACQUIRING THE PRODUCT, INCLUDING TRANSPORTATION AND TAXES, SHALL REQUIRE DOCUMENTATION OF THE DATE, TIME, AND SPECIFIC BUSINESS BY ACTUAL LOCATION RESPONSIBLE FOR CREATING THE NEED TO SELL BELOW COST, AND PROVIDE FOR RELATED MATTERS; AND TO AMEND THE 1976 CODE BY ADDING SECTION 39-41-255 SO AS TO REQUIRE EVERY SERVICE STATION TO POST IN A CONSPICUOUS PLACE THE SELF-SERVICE PUMP PRICE FOR EACH TYPE OF GASOLINE IT HAS AVAILABLE AND PROVIDE FOR RELATED MATTERS.

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

SECTION 1. Section 39-5-350 of the 1976 Code is amended to read:

"Section 39-5-350. No part of this article shall be construed to apply to sales at wholesale to hotels, restaurants, colleges, bona fide licensed contractors, farmers buying for their plantations, including labor on their own farms, boardinghouses, religious institutions, or county, city, federal, or state institutions or departments or to cooperative purchases for redistribution among farmers. Retail sales of merchandise of like grade and quality at a price to meet existing competition at any time in any town or locality are also exempt from the provisions of this article. But if such competition is created by any person in violation of this article or when any two or more persons contend that they are meeting the competition of the other and all would be making retail sales in violation of this article, except for the above provisions allowing existing competition to be met, any retailer affected thereby may enjoin all in such category from continuing such practices in any court of competent jurisdiction in this State.

Any sale of motor fuel in the wholesale or retail market at a level below the actual cost of acquiring the product, including transportation and taxes, shall require documentation of the date, time, and specific business by actual location responsible for creating the need to sell below cost. Such records must be maintained for each wholesale or retail outlet at a designated location in South Carolina identified to the Administrator of the South Carolina Department of Consumer Affairs and the Attorney General. Such records are subject to inspection by and shall be made available upon request to the Administrator of the South Carolina Department of Consumer Affairs and the Attorney General or their designees. No such data is subject to submission to any state official for review purposes. The provisions of this paragraph are applicable to every retail and wholesale outlet in the State. The cost of motor fuel for the purposes of this paragraph includes only the cost of acquiring the product, taxes, and transportation costs to the point of wholesale or retail sale."

SECTION 2. Section 39-3-150 of the 1976 Code is amended to read:

"Section 39-3-150. If any person engaged in the manufacture, sale, or distribution of any commodity in general use in this State shall, with the intent or purpose of driving out competition or for the purpose of financially injuring competitors, sell at less than cost of manufacture or at less than the cost of such commodity bought in the open markets plus the freight and other charges to point of destination or give away such product for the purpose of driving out competition or financially injuring any competitor engaged in the manufacture, sale, or distribution of such commodity in this State, such person shall be guilty of a conspiracy to form or secure a trust or monopoly in restraint of trade and of unfair discrimination, which is prohibited and declared to be unlawful. Any person violating any of the provisions of this section and any officer, agent, or receiver of any firm, company, association, or corporation or any member thereof or any individual guilty of a violation of this section shall be liable for a penalty of not less than five hundred dollars nor more than five thousand dollars to be recovered at the suit of the State in the court of common pleas of any county. The Attorney General may allow one-half of the penalties provided in this section to anyone who may conduct the suit and the Attorney General shall be authorized to proceed as provided in this article to enforce the provisions hereof. Each sale so proven under the provisions of this section shall be considered a separate offense.

Any sale of motor fuel in the wholesale or retail market at a level below the actual cost of acquiring the product, including transportation and taxes, shall require documentation of the date, time, and specific business by actual location responsible for creating the need to sell below cost. Such records must be maintained for each wholesale or retail outlet at a designated location in South Carolina identified to the Administrator of the South Carolina Department of Consumer Affairs and the Attorney General. Such records are subject to inspection by and shall be made available upon request to the Administrator of the South Carolina Department of Consumer Affairs and the Attorney General or their designee. No such data is subject to submission to any state official for review purposes. The provisions of this paragraph are applicable to every retail and wholesale outlet in the State. The cost of motor fuel for the purposes of this paragraph includes only the cost of acquiring the product, taxes, and transportation costs to the point of wholesale or retail sale."

SECTION 3. Article 1, Chapter 41, Title 39 of the 1976 Code is amended by adding:

"Section 39-41-255. Every service station shall post in a conspicuous place the self-service pump price for each type of gasoline it has available; provided, that such posted price must include either the cash or the credit price but need not include both such prices. The manner in which the prices are posted must not conflict with any state or local laws or ordinances that regulate the size, use, or placement of billboards or signs."

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