Petroleum Marketing Practices Act Amendments of 1994
PL 103-371 (H.R.1520), enacted 10/19/1994

108 STAT. 3484 
PUBLIC LAW 103-371—OCT. 19, 1994 
Public Law 103-371 
103d Congress 
An Act 
Oct. 19, 1994 
[H.R. 1520] 
Petroleum 
Marketing 
Practices Act 
Amendments of 
1994. 
15 use 2801 
note. 
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 Marketiiig Practices 
Act Amendments of 1994". 
SEC. 2. CONVERSION TO COMPANY OPERATION. 
Section 1020b)(3)(A)(ii) of the Petroleum Marketing Practices 
Act (15 U.S.C. 2802(b)(3)(A)(ii)) is amended by inserting after ''pur-
pose of the following: "converting the leased marketing premises 
to operation by employees or agents of the franchisor for the benefit 
of the franchisor or otherwise". 
SEC. 3. UNDERLYING LEASES. 
Section 102(c)(4) of the Petroleum Marketing Practices Act 
(15 U.S.C. 2802(cX4)) is amended— 
(1) by striking lease, if and all that follows through "(B) 
of and inserting the following: "lease, i
f
— 
'^'' 
"(A) the fiianchisee was notified in writing, prior to 
the commencement of the term of the then existing fiian-
chise— 
"(i) of the duration of the underlying lease; and 
"(ii) of; and 
i (2) bv adding at the end the following new subparagraphs: 
(B) during the 90-day period after notification was 
given pursuant to section 104, the fi^nchisor offers to 
assign to the franchisee any option to extend the underl3dng 
lease or option to purchase the marketing premises that 
is held by the franchisor, except that the franchisor may 
condition the assignment upon receipt by the franchisor 
o
f
— 
"(i) an unconditional release executed by both the 
landowner and the franchisee releasing the franchisor 
from £iny and aJl liability accruing after the date of 
the assignment for— 
"(I) financial obligations under the option (or 
the resulting extended lease or purchase agree-
ment); 
"(II) environmental contamination to (or origi-
nating from) the marketing premises; or 
"(III) the operation or condition of the market-
ing premises; and 
PUBLIC LAW 103-371—OCT. 19, 1994 
108 STAT. 3485 
"(ii) an instrument executed by both the landowner 
and tiie franchisee that ensures the franchisor and 
the contractors of the franchisor reasonable access to 
the marketing premises for the purpose of testing for 
and remediating any environmental contamination 
that may be present at the premises; and 
"(C) in a situation in which the franchisee acquires 
possession of the leased marketing premises effective inmie-
diately after the loss of the right of the franchisor to 
grant possession (through an assignment pursuant to 
subparagraph (B) or by obtaining a new lease or purchasing 
the marketing premises from the landowner), the franchisor 
(if requested in writing by title franchisee not later than 
30 days after notification was riven pursuant to section 
104), during the 90-day period after notification was given 
pursuant to section 104— 
"(i) made a bona fide offer to sell, transfer, or 
assign to the fi-anchisee the interest of the franchisor 
in any improvements or equipment located on the 
premises; or 
"(ii) if applicable, offered the fiianchisee a right 
of first refiisal (for at least 45 days) of an offer, made 
by another person, to purchase the interest of the 
franchisor in tiie improvements and equipment". 
SEC. 4. WAIVER OF RIGHTS. 
Section 105 of the Peti*oleum Marketing Practices Act (15 U.S.C. 
2805) is amended by adding at the end the foUowiag new subsection: 
"(f)(1) No firanchisor shall require, as a condition of entering 
into or renewing the franchise relationship, a franchisee to release 
or waive— 
"(A) any right that the franchisee has under this titie 
or other Federal 
law; or 
"(B) any right that the franchisee may have under any 
valid and appUcable State law. 
"(2) No provision of any fi^nchise shall be valid or enforceable 
if the provision 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 fi^nclnsee has the principal place 
of 
business of the fiianchisee.". 
SEC. 6. FREEMFnON. 
Section 106 of the Petroleum Marketing Practices Act (15 U.S.C. 
2806) is amended— 
(1) in subsection (a)— 
(A) by inserting "(1)" aftier "(a)"; and 
(B) by addinfj at the end the following new paragraph: 
"(2) No State or political subdivision of a State may adopt, 
enforce, or continue in effect any provision of law (including a 
regulation) that requires a pajrment for the goodwill of a franchisee 
on the termination of a franchise or nonrenewal of a fiianchise 
relationship authorized by this titie."; and 
(2) in subsection (b)— 
(A) by inserting "(1)" after "(bf; and 
(B) by adding at the end the following new paragraph: 
"(2) Nothing in this titie shall prohibit any State 
fix)m 
specifymg 
the terms and conditions under which a^y franchise or franchise 
108 STAT. 3486 
PUBLIC LAW 103-371—OCT. 19, 1994 
relationship may be transferred to the designated successor of a 
franchisee upon the death of the franchisee.". 
SEC. 6. DEFINrnON OF FAILURE. 
Section 101(13) of the Petroleum Marketing Practices Act (15 
U.S.C. 2801(13)) is amended— 
(1) by striking "or" at the end of subparagraph (A); 
(2) by striking the period at the end of subparagraph (B) 
and inserting in lieu thereof *
*
; or"; and 
(3) by adding at the end the following new subparagraph: 
"(C) any failure based on a provision of the franchise 
which is illegal or imenforceabie under the law of any 
State (or submvision thereof).". 
Approved October 19, 1994. 
LEGISLATIVE HISTORY—H.R. 1520 (S. 338): 
HOUSE REPORTS: No. 103-737 (Comm. on Enerey and Ck)mmerce). 
SENATE REPORTS: No. 103-387 accompanying S. 338 (Ctomm. on Energy and 
Natural Resources). 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
Oct. 3, 4, considered and passed House. 
Oct. 5, considered and passed Senate.