HB0553 94TH GENERAL ASSEMBLY

LRB094 06725 RXD 36824 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0553

Introduced 1/27/2005, by Rep. William B. Black

SYNOPSIS AS INTRODUCED:

New Act

Creates the Motor Fuel Fair Marketing Practices Act. Prohibits price gouging on the retail sale of motor fuel in response to the occurrence of a disaster. Provides that a violation of the federal Robinson-Patman Act with respect to the retail sale of motor fuel constitutes a violation of this Act. Prohibits the practice of selling motor fuel at retail prices that are below cost, where the effect is to injure or lessen competition. Provides for investigation and enforcement by the Attorney General. Provides for civil penalties for violations. Effective July 1, 2005.

A BILL FOR

AN ACT concerning business.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Motor Fuel Fair Marketing Practices Act.

Section 5. Policy. The legislature declares that there is a need for a neutral guideline on which to base fuel prices. Oil Price Information Services (OPIS) is a publication that is used as a benchmark by the world to buy and sell U.S. Gasoline and Diesel. OPIS has no stake in fuel transactions, is not funded by the oil industry initiatives, and strictly adheres to antitrust guidelines determined by independent legal counsel.

Section 10. Definitions.

(a) The definitions in the Motor Fuel Tax Law apply to this Act.

(b) "Below cost sale" means the selling of gasoline or No. 2 low sulfur clear diesel fuel at retail in the State of Illinois at a price that is below the regional Oil Price Information Service average on the previous day for unleaded regular gasoline or No. 2 low sulfur clear diesel fuel, plus all applicable taxes, and $0.04 per gallon transportation expense.

(c) "Disaster" has the meaning given in Section 4 of the Illinois Emergency Management Agency Act.

(d) "Motor fuel price gouging" means the sale of gasoline or No. 2 low sulfur clear diesel fuel at retail in the State of Illinois that is more than the applicable regional Oil Price Information Service average on the previous day for unleaded regular gasoline or No. 2 low sulfur clear diesel fuel, plus $0.25 per gallon, and $0.04 per gallon transportation expense.

(e) "Oil Price Information Service" (OPIS) means the daily publication containing oil price information that is a widely accepted independent fuel price benchmark for supply.

Section 15. Motor fuel price gouging.

(a) It is a violation of this Act to engage in motor fuel price gouging in response to the occurrence of a disaster. Each sale constitutes a separate violation.

(b) Motor fuel price gouging that occurs within the 7 days following the occurrence of a disaster is rebuttably presumed to have been in response to the occurrence of the disaster.

Section 20. Violation of Robinson-Patman Act. Violation of any provision of the federal Robinson-Patman Act (15 U.S.C. 13 et seq.) with respect to the retail sale of motor fuel in Illinois constitutes a violation of this Act.

Section 25. Sale below cost. It is a violation of this Act to sell motor fuel below cost, where the effect is to injure or lessen competition, except in response to the equally low prices of a competitor. Each sale constitutes a separate violation.

Section 30. Violations.

(a) If the Attorney General determines that a violation of this Section has occurred or is about to occur, he or she may bring an action in circuit court for appropriate injunctive relief and a civil penalty of up to $1,000 per actual violation. The court may award attorney's fees and costs to the prevailing party.

(b) Civil penalties collected by the Attorney General under this Act shall be deposited into the Attorney General's State Project and Court Order Distribution Fund.

(c) Any person who is harmed by a violation of this Section, or the Attorney General on behalf of such persons, may bring an action in circuit court to recover the damages sustained. Upon finding a violation of this Section, the court may award appropriate relief, including restitution, injunctive relief, court costs, and reasonable attorney's fees.

Section 35. Powers and duties. The Attorney General has the following powers and duties:

(1) to investigate complaints regarding violations of this Act;

(2) to seek injunctive relief as appropriate;

(3) to seek restitution for victims of motor fuel price gouging and other violations of this Act; and

(4) to institute an action to collect a civil penalty for a violation of this Act.

Section 40. Confidentiality.

(a) Information obtained by the Attorney General in the course of an investigation under this Act, including information from a person who responds to the investigation and designates the information as confidential, must be maintained as confidential until the investigation is completed by the Attorney General and a course of action is determined. The Attorney General may not make known in any manner information obtained in the course of the investigation to persons other that those specified in subsection (c) of this Section. Once the investigation is completed, if there is a settlement or if charges are filed, the information becomes public.

(b) This Section does not prohibit the use of confidential information to prepare statistics or other general data for publication, if the information is presented in a manner that prevents identification of particular persons or locations under investigation.

(c) For purposes of this Section, references to the Attorney General include other individuals designated in writing and acting on behalf of the Attorney General during the investigation. A person so designated shall preserve the confidentiality of information as provided for in subsection (a) of this Section.

(d) A person who is served with a request for information, a subpoena to give testimony orally or in writing, or to produce books, papers, correspondence, memoranda, agreements, or other documents or records under this Act may apply to the circuit court for protection against abuse or hardship.

Section 99. Effective date. This Act takes effect July 1, 2005.