An Act Regarding Prepaid Contracts for Heating Fuel (AFTER DEADLINE)
Maine Legislature, Session 122, LD 2101
Committee: Business, Research and Economic Development
Sponsors: CANAVAN, GAGNON, FINCH, FLETCHER, MARRACI-IE, NUTTING, SA VIELLO, SIMPSON, THOMPSON, MITCHELL
Amends: 10 MRSA §1110

Legislative Document 
No. 2101 
H.P.1493 
House of Representatives, April 6, 2006 
An Act Regarding Prepaid Contracts for Heating Fuel 
(AFTER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Business, Research and Economic Development suggested 
and ordered printed. 
Presented by Representative CANAVAN of Waterville. 
Cosponsored by Senator GAGNON of Kennebec and 
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MILLICENT M. MacFARLAND 
Clerk 
Representatives: FINCH of Fairfield, FLETCHER of Winslow, MARRACI-IE of Waterville, 
NUTTING of Oakland, SA VIELLO of Wilton, SIMPSON of Auburn, THOMPSON of China, 
Senator: MITCHELL of Kennebec. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 10 MRSA §1110 is enacted to read: 
§1110. Requirements for price protection and prepaid contracts 
1. 
Contract and solicitation requirements. A contract for the retail sale of home 
heating oil, kerosene or liquefied petroleum gas that offers a guaranteed price plan, 
including a prepaid contract and any other similar tenn, must be in writing and the tenns 
and conditions of the price plan must be disclosed. 
The disclosure of tenns and 
conditions must be in plain language, must immediately follow the language concerning 
the price or service that could be affected and must be printed in no less than 12-point 
boldface type of unifonn font. A solicitation for the retail sale of home heating oil, 
kerosene or liquefied petroleum gas that offers a guaranteed price plan that could become 
a contract upon a response from a consumer, including a prepaid contract and any other 
similar tenn, must be in writing and the tenns and conditions of that offer must be 
disclosed in plain language. 
2. 
Security for prepaid contracts required; options. 
A home heating oil, 
kerosene or liquefied petroleum gas dealer may not enter into a prepaid contract to 
provide home heating oil, kerosene or liquefied petroleum gas to a consumer unless that 
dealer has obtained and maintains in accordance with subsection 3 anyone of the 
following: 
A. 
Heating oil, kerosene or liquefied petroleum gas contracts or other similar 
commitments that allow the dealer to purchase, at a fixed price, heating oil, kerosene 
or liquefied petroleum gas in an amount not less than 75% of the maximum number 
of gallons that the dealer is committed to deliver pursuant to all prepaid contracts 
entered into by the dealer; 
B. A surety bond in an amount not less than 50% of the total amount of funds paid 
to the dealer by consumers pursuant to all prepaid heating oil, kerosene or liquefied 
petroleum gas contracts entered into by the dealer; or 
C. 
A letter of credit in an amount not less than 100% of the total amount of funds 
paid to the dealer by consumers pursuant to all prepaid heating oil, kerosene or 
liquefied petroleum gas contracts entered into by the dealer. 
3. 
Maintenance of security. 
A dealer shall maintain the amount of futures 
contracts, the amount of the surety bond or the letter of credit required by subsection 2 
for the period of time for which the prepaid home heating oil, kerosene or liquefied 
petroleum gas contracts are effective, except that the amount of the futures contracts or 
surety bond may be reduced during such period of time to reflect any amount of home 
heating oil, kerosene or liquefied petroleum gas already delivered to and paid for by the 
consumer. 
4. 
Disclosure; additional contract requirements. A prepaid home heating oil, 
kerosene or liquefied petroleum gas contract must indicate: 
A. The amount of funds paid by the consumer to the dealer under the contract; 
B. The maximum number of gallons of home heating oil, kerosene or liquefied 
petroleum gas committed by the dealer for delivery to the consumer pursuant to the 
contract; and 
C. 
That the performance of the prepaid contract is secured by one of the options set 
forth in subsection 2. 
5. 
Reimbursement provision required. A prepaid home heating oil, kerosene or 
liquefied petroleum gas contract must provide that the contract price of any undelivered 
home heating oil, kerosene or liquefied petroleum gas owed to the consumer under the 
contract at the end date of the contract must be reimbursed to the consumer not later than 
days after the end date of the contract unless the parties to the contract agree 
otherwise. 
SUMMARY 
This bill, which is based on legislation introduced in Vermont, establishes 
requirements for prepaid contracts for home heating oil, kerosene or liquefied petroleum 
gas. Under the bill, a home heating oil, kerosene or liquefied petroleum gas dealer is 
prohibited from entering into a prepaid contract to provide home heating oil, kerosene or 
liquefied petroleum gas to a consumer unless that dealer has obtained futures contracts, a 
surety bond or a letter of credit.