I

103D CONGRESS

1ST SESSION H. R. 1520

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

A BILL

To amend the Petroleum Marketing Practices Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Petroleum Marketing

5 Practices Act Amendments of 1993’’.

6 SEC. 2. CONVERSION TO COMPANY OPERATION.

7 Section 102(b)(3)(A)(ii) of the Petroleum Marketing

8 Practices Act (15 U.S.C. 2802(b)(3)(A)(ii)) is amended

9 by inserting after ‘‘purpose of’’ the following: ‘‘converting

10 the leased marketing premises to operation by employees
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1 or agents of the franchisor for the franchisor’s own ac2 count or otherwise’’.

3 SEC. 3. PREEMPTION.

4 Section 106 of the Petroleum Marketing Practices

5 Act (15 U.S.C. 2806) is amended—

6 (1) by adding at the end of subsection (a) the

7 following: ‘‘Nothing in this title shall be deemed to

8 limit the ability of a State or any political subdivi9 sion thereof to regulate any specific provision of a

10 franchise. No State or any political subdivision

11 thereof may adopt, enforce or continue in effect any

12 provision of any law or regulation requiring any pay13 ment for a franchisee’s goodwill upon the occurrence

14 of a termination of a franchise or nonrenewal of a

15 franchise relationship authorized by this title.’’; and

16 (2) by adding at the end of subsection (b) the

17 following: ‘‘Nothing in this title shall be deemed to

18 prohibit any State from specifying the terms and

19 conditions under which any franchise or franchise

20 relationship may be transferred to a franchisee’s

21 designated successor upon the franchisee’s death.’’.

22 SEC. 4. UNDERLYING LEASES.

23 Section 102(c)(4) of the Petroleum Marketing Prac24 tices Act (15 U.S.C. 2802(c)(4)) is amended—
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1 (1) by redesignating subparagraphs (A) and

2 (B) as clauses (i) and (ii), respectively and setting

3 such clauses on an 8-em indention;

4 (2) by inserting ‘‘—’’ after ‘‘lease, if’’;

5 (3) by designating the text which follows ‘‘lease,

6 if—’’ as subparagraph (A) and setting such type on

7 a 6-em indention; and

8 (4) by adding at the end the following new sub9 paragraphs:

10 ‘‘(B) during the 90-day period after notifi11 cation was given pursuant to section 104 the

12 franchisor offers to assign to the franchisee any

13 options to extend the underlying lease or op14 tions to purchase the marketing premises which

15 may be held by the franchisor: Provided, That

16 the franchisor may condition any such assign17 ment upon receipt by the franchisor of—

18 ‘‘(i) an unconditional release executed

19 by both the landowner and the franchisee

20 releasing the franchisor from any and all

21 liability accruing after the date of the as22 signment for—

23 ‘‘(I) financial obligations under

24 any such option (or the resulting ex25 tended lease or purchase agreement);
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1 ‘‘(II) environmental contamina2 tion to (or originating from) the mar3 keting premises; or

4 ‘‘(III) the operation or condition

5 of the marketing premises; and

6 ‘‘(ii) an instrument executed by both

7 the landowner and the franchisee assuring

8 the franchisor and its contractors reason9 able access to the marketing premises for

10 the purpose of testing for and remediating

11 any environmental contamination that may

12 be present at such premises; and

13 ‘‘(C) in a situation in which the franchisee

14 acquires possession of such leased marketing

15 premises effective immediately after loss of the

16 franchisor’s right to grant possession (either

17 through an assignment pursuant to subpara18 graph (B) above or by obtaining a new lease or

19 purchasing the marketing premises from the

20 landowner), the franchisor (if requested in writ21 ing by the franchisee within 30 days after noti22 fication was given pursuant to section 104),

23 during the 90-day period after notification was

24 given pursuant to section 104, either—
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1 ‘‘(i) made a bona fide offer to sell,

2 transfer, or assign to the franchisee such

3 franchisor’s interest in any improvements

4 or equipment located on such premises; or

5 ‘‘(ii) if applicable, offered the

6 franchisee a right of first refusal of at

7 least 45 days duration of an offer, made by

8 another, to purchase such franchisor’s in9 terest in such improvements and equip10 ment.’’.

11 SEC. 5. WAIVER OF RIGHTS.

12 Section 105 of the Petroleum Marketing Practices

13 Act (15 U.S.A. 2805) is amended by adding at the end

14 the following new subsection:

15 ‘‘(f)(1) No franchisor shall require, as a condition of

16 entering into or renewing the franchise relationship, a

17 franchisee to release or waive—

18 ‘‘(A) any rights under this title or other Fed19 eral law; or

20 ‘‘(B) any rights the franchisee may have under

21 any valid and applicable State law.

22 ‘‘(2) No provision of any franchise shall be valid or

23 enforceable which specifies that the interpretation or en24 forcement of the franchise shall be governed by the law
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1 of any State other than the State in which the franchisee

2 has its principal place of business.’’.

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