To regulate commerce and to protect petroleum product dealers from unfair practices, and for other purposes.

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Be it enacted by the Senate and House of Representa

2 tives of the United States of America in Congress assembled,

3 That this Act may be cited as the "Fair Marketing of

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SEC. 2. Competition, nondiscriminatory practices, and 7 equal access to supplies for all retailers and distributors are 8 essential to the fair and efficient functioning of a free market 9 economy. Gasoline and other petroleum products should be 10 produced, distributed, and marketed in the manner most 11 beneficial to the consumer. It is the policy of the Congress

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1 to assist consumers and marketers of petroleum products to

2 achieve these goals.

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DEFINITIONS

SEC. 3. As used in this Act, the term

(1) "commerce" means any trade, traffic, transportation, or exchange (A) between any State and any place outside of such State, or (B) which affects any trade, traffic, transportation, or exchange described in subparagraph (A) of this paragraph;

(2) "controlled" means having actual or legal power or influence over another person through any means other than a contractual relationship;

(3) "distributor" or "distributorship" means a person engaged in commerce in any State in the marketing of petroleum products through the sale, consignment, or distribution of such products to wholesale or retail outlets (whether or not such person owns, leases, or in any way controls such outlets) (A) under a petroleum products

franchise, or (B) independent of a petroleum products franchise if such distributor is also a refiner;

(4) "major market shareholder" means a refiner who is not an "independent refiner" or a "small refiner”, as those terms are defined in section 3 of the Emergency Petroleum Allocation Act of 1973 (15 U.S.C. 752);

(5) "petroleum products" means gasolines and die

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1 sel fuels for use in motor vehicles, distillates used as

heating fuel, and kerosene;

(6) "petroleum products franchise" means any

agreement or contract—

(A) which grants to a specified retailer or distributor the authority to use a trademark, trade

name, service mark, or other identifying symbol or name owned by a specified refiner or distributor who is also a party to such agreement or contract; or (B) which grants such a retailer or distributor the authority to occupy premises owned, leased, or

in any way controlled by a party to such agreement or contract,

for the purpose of engaging in the distribution or sale of petroleum products for purposes other than resale. The

term shall also apply to the relationship by which a refiner or a distributor supplies a retailer with petroleum

products, or by which a refiner supplies a distributor

with petroleum products under regulations promulgated 20 pursuant to the Emergency Petroleum Allocation Act

(15 U.S.C. 751 et seq.), if a petroleum products fran

chise, as defined in this paragraph, was in effect between

such retailer and such distributor (or such refiner), or

24 between such distributor and such refiner, at any time

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(7) "refiner" means a person engaged in commerce

in the refining of petroleum products;

(8) "retailer" or "retail establishment" means a person or place at which one is engaged in commerce in any State in the sale of any refined petroleum product for purposes other than resale (A) under a petroleum products franchise or, (B) independent of a petroleum products franchise; and

(9) "State" means any State of the United States, the District of Columbia, the Commonwealth of Puerto

Rico, the Virgin Islands, Guam, American Samoa, and the Canal Zone.

PROTECTION OF FRANCHISED DEALERS

SEC. 4. (a) A refiner or distributor shall not cancel, fail

to renew, or otherwise terminate a petroleum products fran16 chise unless he furnishes prior notification pursuant to this 17 paragraph to each distributor or retailer affected thereby, 18 except for good cause. Such notification shall be in writing 19 and shall be sent to such distributor or retailer by certified 20 mail not less than ninety days prior to the date on which such 21 petroleum products franchise will be canceled, not renewed, 22 or otherwise terminated. Such notification shall contain a 23 statement of intention to cancel, not renew, or to terminate 24 (together with the reasons therefor); the date on which such 25 action shall take effect; and a statement of the remedy or

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1 remedies available to such distributor or retailer under this

2 Act, including a summary of the applicable provisions of this 3 Act.

4 (b) A refiner or distributor shall not cancel, fail to 5 renew, or otherwise terminate a petroleum products fran6 chise unless the person whose franchise is terminated failed 7 to comply substantially with any reasonable requirement of 8 such petroleum products franchise or failed to act in good 9 faith in carrying out the terms of such petroleum products 10 franchise, or unless such refiner or distributor withdraws 11 entirely from the sale of refined petroleum products in com12 merce for sale other than resale in the United States.

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LIMITATION ON MARKETING ACTIVITIES

SEC. 5. (a) A person who is a major market share15 holder shall not, after the date of enactment of this Act, 16 commence the operation of any distributorship or retail 17 establishment the personnel of which are under the control 18 of such person or under the control of an entity controlled 19 by such person if, as a consequence of such commencement, 20 a fraction whose numerator is the number of distributorships 21 and retail establishments controlled by such person following 22 such commencement and whose denominator is the total num23 ber of such person's distributorships and retail establish24 ments would be larger than the largest fraction computed for