IB
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 fol-
lowing 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. PETER-
SON 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 Representa-
tives 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 ac-
count or otherwise’’.
SEC. 3. PREEMPTION.
Section 106 of the Petroleum Marketing Practices
Act (15 U.S.C. 2806) is amended—
(1) by adding at the end of subsection (a) the
following: ‘‘Nothing in this title shall be deemed to
limit the ability of a State or any political subdivi-
sion 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 pay-
ment 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
(1) by amending subsection (a) to read as
follows:
‘‘(a) To the extent that any provision of this title ap-
plies 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 sub-
division thereof may adopt, enforce, or continue in effect
any provision of any law or regulation (including any rem-
edy or penalty applicable to any violation thereof) with re-
spect 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 provi-
sion 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, en-
force, or continue in effect any provision of any law or regu-
lation 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 Prac-
tices 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 sub-
paragraphs:
‘‘(B) during the 90-day period after notifi-
cation was given pursuant to section 104 the
franchisor offers to assign to the franchisee any
options to extend the underlying lease or op-
tions to purchase the marketing premises which
may be held by the franchisor: Provided, That
the franchisor may condition any such assign-
ment 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 as-
signment for—
‘‘(I) financial obligations under
any such option (or the resulting ex-
tended lease or purchase agreement);
‘‘(II) environmental contamina-
tion to (or originating from) the mar-
keting 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 reason-
able 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
‘‘(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 Fed-
eral 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 en-
forcement 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.’’.