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H0149.................................by ENVIRONMENT, ENERGY AND TECHNOLOGY RENEWABLE FUEL - Adds to existing law to provide for the "Idaho Renewable Fuel Consumer Choice and Retailer Right to Know Act of 2007"; to provide requirements for agreements or contracts between a motor fuel distributor or retailer; to provide that certain provisions of a franchise agreement or contract shall be null and void; and to provide penalties. 02/09 House intro - 1st rdg - to printing 02/12 Rpt prt - to Transp
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 149 BY ENVIRONMENT, ENERGY AND TECHNOLOGY COMMITTEE 1 AN ACT 2 RELATING TO RENEWABLE FUEL CONTRACTS; AMENDING CHAPTER 1, TITLE 29, IDAHO 3 CODE, BY THE ADDITION OF A NEW SECTION 29-116, IDAHO CODE, TO PROVIDE A 4 SHORT TITLE, TO DEFINE TERMS, TO PROVIDE REQUIREMENTS FOR AGREEMENTS OR 5 CONTRACTS BETWEEN A MOTOR FUEL DISTRIBUTOR OR RETAILER, TO PROVIDE THAT 6 CERTAIN PROVISIONS OF A FRANCHISE AGREEMENT OR CONTRACT SHALL BE NULL AND 7 VOID, TO PROVIDE EXCEPTIONS, TO PROVIDE PENALTIES AND TO PROVIDE DUTIES OF 8 PROSECUTING ATTORNEYS; DECLARING AN EMERGENCY AND PROVIDING APPLICATION. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Chapter 1, Title 29, Idaho Code, be, and the same is 11 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 12 ignated as Section 29-116, Idaho Code, and to read as follows: 13 29-116. IDAHO RENEWABLE FUEL CONSUMER CHOICE AND RETAILER RIGHT-TO-KNOW 14 ACT OF 2007 -- EXCLUSIVITY PROHIBITION. (1) This act shall be known and cited 15 as the "Idaho Renewable Fuel Consumer Choice and Retailer Right-to-Know Act." 16 (2) As used in this section: 17 (a) "Biofuel" means any renewable fuel offered for sale as a transporta- 18 tion fuel that is agriculturally derived and meets applicable ASTM stan- 19 dards as required in section 37-2506, Idaho Code, including, but not lim- 20 ited to, ethanol, ethanol-blended fuel, biodiesel and biodiesel blends. 21 (b) "Fuel distributor" or "distributor" means any business with a situs 22 in Idaho which distributes motor vehicle fuel including, but not limited 23 to, wholesalers, jobbers, distributors or terminal operators. 24 (c) "Retail fuel dealer" or "dealer" means any business with a situs in 25 Idaho that sells or offers for sale at the retail level motor vehicle 26 fuel. 27 (d) "Person" shall include, but not be limited to, corporations, limited 28 liability companies, partnerships and associations existing under or 29 authorized by the laws of either the United States, the laws of any of the 30 territories, the laws of Idaho or the laws of any foreign country. 31 (3) All franchise agreements, dealer agreements, supply contracts or any 32 other contract between a motor fuel distributor and motor fuel retailer must 33 be in full compliance with 15 U.S.C. section 26a and this section. 34 (4) Any provision of a franchise agreement or contract which prohibits a 35 dealer from purchasing or selling any of the biofuels set forth in subsection 36 (2)(a) of this section from a person or firm other than the distributor, or 37 limits the quantity of such biofuel to be purchased from such other person or 38 firm, which directly or indirectly discourages a dealer from purchasing or 39 selling biofuels from such other person or firm, shall be null and void as it 40 pertains to biofuels. 41 (5) The prohibitions in this section shall not apply to any distributor 42 who makes available sufficient supplies of biofuels to satisfy his customers' 43 needs for such products if the biofuels are made available on terms and condi- 2 1 tions which are at least equivalent to the terms and conditions on which such 2 distributor's conventional motor fuel products are made available. 3 (6) A person found guilty of violating this section shall be guilty of a 4 misdemeanor and shall have thirty (30) calendar days to comply with the provi- 5 sions of this section or shall be subject to a fine not in excess of five hun- 6 dred dollars ($500). If a person remains out of compliance after sixty (60) 7 calendar days, he shall be subject to revocation of the Idaho fuel 8 distributor's license. 9 (7) It shall be the duty of the prosecuting attorney in any county of the 10 state to render all assistance in his power to execute the provisions of this 11 section and to prosecute cases arising under this section. 12 SECTION 2. An emergency existing therefor, which emergency is hereby 13 declared to exist, this act shall be in full force and effect on and after its 14 passage and approval; and shall apply to all contracts or franchises entered 15 into on or after the effective date of this act.
STATEMENT OF PURPOSE RS 16784C2 The purpose of this legislation is to clarify applicability of federal law governing certain biofuel contracts between wholesalers and fuel retailers. It also extends these current contractual relationships to all bio-fuels. FISCAL NOTE No fiscal impact Contact Name: Sen McKenzie, Sen Gannon, Sen Lodge Rep Eskridge, Rep Stevenson Rep Wood (35) Phone:332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 149