[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 539 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 539

 To amend the Petroleum Marketing Practices Act to require any change 
 proposed at the time of renewal of a franchise agreement for the sale 
of motor fuel to be fair and reasonable, to ensure fairness and balance 
        in the application of such Act, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                March 9 (legislative day, March 3), 1993

   Mr. Ford introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To amend the Petroleum Marketing Practices Act to require any change 
 proposed at the time of renewal of a franchise agreement for the sale 
of motor fuel to be fair and reasonable, to ensure fairness and balance 
        in the application of such Act, 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 ``Petroleum Marketing Reform Act of 
1993''.

SEC. 2. DEFINITION OF FRANCHISE.

    Section 101(1)(B) of the Petroleum Marketing Practices Act (15 
U.S.C. 2801(1)(B)) is amended--
            (1) in clause (ii), by striking ``and'' at the end;
            (2) by redesignating clause (iii) as clause (iv); and
            (3) by inserting after clause (ii) the following new 
        clause:
            ``(iii) any contract between the parties described in 
        clauses (i), (ii), (iii), and (iv) of subparagraph (A) that is 
        economically necessary to the operation of the franchise; 
        and''.

SEC. 3. GROUNDS FOR NONRENEWAL IN CERTAIN CASE.

    Section 102(b)(3)(A) of the Petroleum Marketing Practices Act (15 
U.S.C. 2802(b)(3)(A)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause:
                    ``(iii) the changes or additions are fair and 
                reasonable.''.

SEC. 4. NEGOTIATION OF UNDERLYING LEASE.

    Section 102(c) of the Petroleum Marketing Practices Act (15 U.S.C. 
2802(c)) is amended by striking paragraph (4) and inserting the 
following new paragraph:
            ``(4) loss of the right of the franchisor to grant 
        possession of the leased marketing premises through expiration 
        of an underlying lease, if--
                    ``(A) the franchisee was notified in writing, prior 
                to the commencement of the term of the then existing 
                franchise--
                            ``(i) of the duration of the underlying 
                        lease; and
                            ``(ii) of the fact that the underlying 
                        lease might expire and not be renewed during 
                        the term of the franchise (in the case of 
                        termination) or at the end of the term (in the 
                        case of nonrenewal); and
                    ``(B) in any case in which the franchisor has an 
                option to renew the underlying lease or purchase the 
                premises, the franchisor--
                            ``(i) provides, not later than 90 days 
                        before the date on which the option expires, 
                        the franchisee with the name, address, and 
                        telephone number of the owner or lessor of the 
                        premises; and
                            ``(ii) agrees not to use this paragraph as 
                        a ground for nonrenewal or termination during 
                        any term during which the franchisee is able to 
                        retain possession of the premises as a result 
                        of any agreement entered into with the owner or 
                        lessor of the premises;''.

                                 <all>