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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1520 Reported in House (RH)]

                                                 Union Calendar No. 407

103d CONGRESS

  2d Session

                               H. R. 1520

                          [Report No. 103-737]

_______________________________________________________________________

                                 A BILL

            To amend the Petroleum Marketing Practices Act.

_______________________________________________________________________

                           September 22, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed

                                                 Union Calendar No. 407
103d CONGRESS
  2d Session
                                H. R. 1520

                          [Report No. 103-737]

            To amend the Petroleum Marketing Practices Act.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 30, 1993

Mr. Wyden (for himself, Mr. Dingell, Mr. Sharp, Mr. Swift, Mr. Studds, 
   Mr. Lehman, Mr. Pallone, Mr. Kreider, Mr. Manton, Mr. Kasich, Mr. 
Rowland, Mr. Markey, Mr. Ackerman, Mrs. Collins of Illinois, Mr. Fields 
 of Texas, Mr. Gillmor, and Mr. Oxley) introduced the following bill; 
       which was referred to the Committee on Energy and Commerce

                           September 22, 1994

 Additional sponsors: Mr. Synar, Mr. Boucher, Ms. Margolies-Mezvinsky, 
  Mr. Coyne, Mr. Oberstar, Mrs. Morella, Mr. Cooper, Mr. Peterson of 
  Minnesota, Mr. Tauzin, Mr. Santorum, Mr. Gilchrest, Mr. Wynn, Mrs. 
       Bentley, Mr. Cardin, Mr. Hoyer, Mr. Mfume, and Ms. Norton

                           September 22, 1994

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
  [Omit the part struck through and insert the part printed in italic]

_______________________________________________________________________

                                 A BILL

 
            To amend the Petroleum Marketing Practices Act.

    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 Practices Act 
Amendments of 1993''.

SEC. 2. CONVERSION TO COMPANY OPERATION.

    Section 102(b)(3)(A)(ii) of the Petroleum Marketing Practices Act 
(15 U.S.C. 2802(b)(3)(A)(ii)) is amended by inserting after ``purpose 
of'' the following: ``converting the leased marketing premises to 
operation by employees or agents of the franchisor for the franchisor's 
own account or otherwise''.

SEC. 3. PREEMPTION.

    Section 106 of the Petroleum Marketing Practices Act (15 U.S.C. 
2806) is amended--
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        -S-t-a-t-e -o-r -a-n-y -p-o-l-i-t-i-c-a-l 
        -s-u-b-d-i-v-i-s-i-o-n -t-h-e-r-e-o-f -t-o -r-e-g-u-l-a-t-e 
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        -p-o-l-i-t-i-c-a-l -s-u-b-d-i-v-i-s-i-o-n -t-h-e-r-e-o-f -m-a-y 
        -a-d-o-p-t-, -e-n-f-o-r-c-e -o-r -c-o-n-t-i-n-u-e -i-n 
        -e-f-f-e-c-t -a-n-y -p-r-o-v-i-s-i-o-n -o-f -a-n-y -l-a-w -o-r 
        -r-e-g-u-l-a-t-i-o-n -r-e-q-u-i-r-i-n-g -a-n-y -p-a-y-m-e-n-t 
        -f-o-r -a -f-r-a-n-c-h-i-s-e-e-'-s -g-o-o-d-w-i-l-l -u-p-o-n 
        -t-h-e -o-c-c-u-r-r-e-n-c-e -o-f -a -t-e-r-m-i-n-a-t-i-o-n -o-f 
        -a -f-r-a-n-c-h-i-s-e -o-r -n-o-n-r-e-n-e-w-a-l -o-f -a 
        -f-r-a-n-c-h-i-s-e -r-e-l-a-t-i-o-n-s-h-i-p 
        -a-u-t-h-o-r-i-z-e-d -b-y -t-h-i-s -t-i-t-l-e-.-'-'-; -a-n-d
            (1) by amending subsection (a) to read as follows:
    ``(a) To the extent that any provision of this title applies to the 
termination (or the furnishing of notification with respect thereto) of 
any franchise, or to the nonrenewal (or the furnishing of notification 
with respect thereto) of any franchise relationship, no State or any 
political subdivision thereof may adopt, enforce, or continue in effect 
any provision of any law or regulation (including any remedy or penalty 
applicable to any violation thereof) with respect to termination (or 
the furnishing of notification with respect thereto) of any such 
franchise or to the nonrenewal (or the furnishing of notification with 
respect thereto) of any such franchise relationship unless such 
provision of such law or regulation is the same as the applicable 
provision of this title. Nothing in this title shall be deemed to limit 
the ability of a State or any political subdivision thereof to regulate 
any specific provision of a franchise. No State or any political 
subdivision thereof may adopt, enforce, or continue in effect any 
provision of any law or regulation requiring any payment for a 
franchisee's goodwill upon the occurrence of a termination of a 
franchise or nonrenewal of a franchise relationship authorized by this 
title.''; and
            (2) by adding at the end of subsection (b) the following: 
        ``Nothing in this title shall be deemed to prohibit any State 
        from specifying the terms and conditions under which any 
        franchise or franchise relationship may be transferred to a 
        franchisee's designated successor upon the franchisee's 
        death.''.

SEC. 4. UNDERLYING LEASES.

    Section 102(c)(4) of the Petroleum Marketing Practices Act (15 
U.S.C. 2802(c)(4)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively and setting such clauses on an 6-em 
        indention;
            (2) by inserting ``--'' after ``lease, if'';
            (3) by designating the text which follows ``lease, if--'' 
        as subparagraph (A) and setting such type on a 4-em indention; 
        and
            (4) by adding at the end the following new subparagraphs:
                    ``(B) during the 90-day period after notification 
                was given pursuant to section 104 the franchisor offers 
                to assign to the franchisee any options to extend the 
                underlying lease or options to purchase the marketing 
                premises which may be held by the franchisor: Provided, 
                That the franchisor may condition any such assignment 
                upon receipt by the franchisor of--
                            ``(i) an unconditional release executed by 
                        both the landowner and the franchisee releasing 
                        the franchisor from any and all liability 
                        accruing after the date of the assignment for--
                                    ``(I) financial obligations under 
                                any such option (or the resulting 
                                extended lease or purchase agreement);
                                    ``(II) environmental contamination 
                                to (or originating from) the marketing 
                                premises; or
                                    ``(III) the operation or condition 
                                of the marketing premises; and
                            ``(ii) an instrument executed by both the 
                        landowner and the franchisee assuring the 
                        franchisor and its contractors reasonable 
                        access to the marketing premises for the 
                        purpose of testing for and remediating any 
                        environmental contamination that may be present 
                        at such premises; and
                    ``(C) in a situation in which the franchisee 
                acquires possession of such leased marketing premises 
                effective immediately after loss of the franchisor's 
                right to grant possession (either through an assignment 
                pursuant to subparagraph (B) above or by obtaining a 
                new lease or purchasing the marketing premises from the 
                landowner), the franchisor (if requested in writing by 
                the franchisee within 30 days after notification was 
                given pursuant to section 104), during the 90-day 
                period after notification was given pursuant to section 
                104, either--
                            ``(i) made a bona fide offer to sell, 
                        transfer, or assign to the franchisee such 
                        franchisor's interest in any improvements or 
                        equipment located on such premises; or
                            ``(ii) if applicable, offered the 
                        franchisee a right of first refusal of at least 
                        45 days duration of an offer, made by another, 
                        to purchase such franchisor's interest in such 
                        improvements and equipment.''.

SEC. 5. WAIVER OF RIGHTS.

    Section 105 of the Petroleum Marketing Practices Act (15 U.S.A. 
2805) is amended by adding at the end the following new subsection:
    ``(f)(1) No franchisor shall require, as a condition of entering 
into or renewing the franchise relationship, a franchisee to release or 
waive--
            ``(A) any rights under this title or other Federal law; or
            ``(B) any rights the franchisee may have under any valid 
        and applicable State law.
    ``(2) No provision of any franchise shall be valid or enforceable 
which specifies that the interpretation or enforcement of the franchise 
shall be governed by the law of any State other than the State in which 
the franchisee has its principal place of business.''.
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