[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2781 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2781

   To amend the Petroleum Marketing Practices Act to extend certain 
 protections to franchised refiners or distributors of lubricating oil.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 24, 2002

   Mr. Reid (for himself, Mr. Burns, and Mr. Ensign) 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 extend certain 
 protections to franchised refiners or distributors of lubricating oil.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PROTECTION OF FRANCHISED DISTRIBUTORS OF LUBRICATING OIL.

    (a) Definitions.--Section 101 of the Petroleum Marketing Practices 
Act (15 U.S.C. 2801) is amended--
            (1) in paragraph (1)(B)--
                    (A) in clause (ii)(II), by striking ``and'' at the 
                end;
                    (B) by redesignating clause (iii) as clause (iv); 
                and
                    (C) by inserting after clause (ii) the following:
                            ``(iii) any contract under which a refiner 
                        authorizes or permits a distributor to use, in 
                        connection with the sale, consignment, or 
                        distribution of lubricating oil, a trademark 
                        that is owned or controlled by the refiner; 
                        and'';
            (2) in paragraphs (2), (5), and (6), by inserting ``or 
        lubricating oil'' after ``motor fuel'' each place it appears;
            (3) by striking paragraphs (3) and (4) and inserting the 
        following:
            ``(3) Franchisee.--The term `franchisee' means--
                    ``(A) a retailer or distributor that is authorized 
                or permitted, under a franchise, to use a trademark in 
                connection with the sale, consignment, or distribution 
                of motor fuel; or
                    ``(B) a distributor that is authorized or 
                permitted, under a franchise, to use a trademark in 
                connection with the sale, consignment, or distribution 
                of lubricating oil.
            ``(4) Franchisor.--The term `franchisor' means--
                    ``(A) a refiner or distributor that authorizes or 
                permits, under a franchise, a retailer or distributor 
                to use a trademark in connection with the sale, 
                consignment, or distribution of motor fuel; or
                    ``(B) a refiner that authorizes or permits, under a 
                franchise, a distributor to use a trademark in 
                connection with the sale, consignment, or distribution 
                of motor fuel.''; and
            (4) by adding at the end the following:
            ``(20) Lubricating oil.--The term `lubricating oil' means 
        any grade of paraffinic or naphthenic lubricating oil stock 
        that is refined from crude oil or synthetic lubricants.''.
    (b) Protection of Franchised Distributors of Lubricating Oil.--
Section 102(b)(2) of the Petroleum Marketing Practices Act (15 U.S.C. 
2802(b)(2)) is amended by inserting after subparagraph (E) the 
following:
                    ``(F) Franchised distributors of lubricating oil.--
                In the case of a franchise between a refiner or a 
                distributor for the sale, distribution, or consignment 
                of trademarked lubricating oil, a determination made by 
                the franchisor in good faith and in the normal course 
                of business to withdraw from the marketing of the 
                lubricating oil in the relevant geographic market in 
                which the franchised lubricating oil is distributed, 
                if--
                            ``(i) the determination is made--
                                    ``(I) after the date on which the 
                                franchise is entered into or renewed; 
                                and
                                    ``(II) on the basis of a change in 
                                relevant facts or circumstances 
                                relating to the franchise that occurs 
                                after the date specified in subclause 
                                (I); and
                            ``(ii) the termination or nonrenewal is not 
                        for the purpose of converting any accounts 
                        subject to the franchise to the account of the 
                        franchisor.''.
                                 <all>