State of Illinois
91st General Assembly

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 1        AN ACT in relation to motor vehicle fuel sales.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 1. Short title. This Act  may  be  cited  as  the
 5    Motor Vehicle Fuel Sales Competition Improvement Act.

 6        Section  5.  Purpose.  The  purpose  of  this  Act  is to
 7    preserve  and  enhance  the   competitive   role   of   small
 8    independent  businesses  engaged in retail motor vehicle fuel
 9    sales.

10        Section 10. Definitions. In this Act:
11        "Affiliate" means any person who controls, is  controlled
12    by, or is under common control with any other person.
13        "Bank  for  cooperatives"  means a bank established under
14    Title III of the Farm Credit Act of 1971 (12 U.S.C. 2121  and
15    following).
16        "Control"  means  the direct or indirect ownership of, or
17    right to exercise a directing influence over, more  than  50%
18    of the beneficial interest in any other person.
19        "Dealer"  means  a  person who occupies, as a retailer, a
20    retail service station under a lease or rental agreement with
21    a refiner.
22        "Franchise" or "franchise agreement" means a  written  or
23    oral  agreement  between a refiner and a retailer under which
24    the retailer is granted the right:
25             (i)  to use a trademark, tradename, servicemark,  or
26        other identifying symbol or name owned by the refiner; or
27             (ii)  to   occupy   promises   owned,   leased,   or
28        controlled by the refiner, for the purpose of engaging in
29        the retail sale of motor vehicle fuel.
30        "Major  brand"  means  the primary tradename or trademark
                            -2-               LRB9113765DJsbA
 1    most commonly associated with and identified with  a  refiner
 2    of  motor  vehicle  fuel, used to identify a refiner's retail
 3    service station.
 4        "Motor  vehicle  fuel"  means  gasoline,   diesel   fuel,
 5    alcohol,  or  any  mixture  of these fuels, or any other fuel
 6    sold for use in automobiles and related vehicles.
 7        "Person" includes one or more individuals,  partnerships,
 8    associations,     corporations,     legal    representatives,
 9    joint-stock companies, trustees or receivers in bankruptcy or
10    reorganization, and common  law  trusts,  and  any  organized
11    group, whether or not incorporated.
12        "Producer"  means  any  person who is engaged directly or
13    indirectly in the production of crude oil.
14        "Refiner" means (i) any person, including  an  affiliate,
15    who  is  engaged  directly  or  indirectly in the refining of
16    motor vehicle fuel or (ii) any producer  who  contracts  with
17    another to refine petroleum products for purposes of the sale
18    of motor vehicle fuel by the producer.
19        "Refinery"  means a manufacturing facility at which motor
20    vehicle fuel is produced from crude oil.
21        "Retail service station"  means  an  establishment  where
22    service  may  be  obtained  for motor vehicles and that sells
23    oil, motor vehicle fuel, and other petroleum  products.   The
24    term does not include any facility that is:
25             (i)  owned and operated by a cooperative association
26        that is certified  by  a  bank  for  cooperatives  to  be
27        eligible  to  borrow money from that bank under Title III
28        of the Farm Credit  Act  of  1971  (12  U.S.C.  2121  and
29        following); and
30             (ii)  located  on premises owned and operated by the
31        cooperative  association,  at   which   the   cooperative
32        association  carries  on,  as  a  bona  fide  part of its
33        business, the sale  or  furnishing  of  farm  or  aquatic
34        supplies,  farm or aquatic business services, or the bulk
                            -3-               LRB9113765DJsbA
 1        distribution of motor vehicle fuel to farmers on farms.
 2        "Retailer" means:
 3             (i)  a wholesale purchaser; or
 4             (ii)  a person who operates a retail service station
 5        pursuant to a  franchise  agreement  with  a  refiner  or
 6        wholesale purchaser.
 7        "Secondary  brand"  means a tradename or trademark, other
 8    than a major brand,  used  to  identify  a  refiner's  retail
 9    service station.
10        "Supplier" means any person, partnership, corporation, or
11    other form of business enterprise that refines, manufactures,
12    compounds, or otherwise produces petroleum products and sells
13    or distributes them to retail service stations.
14        "Unbranded  service station" means an independent dealer,
15    heating oil distributor, motor vehicle  fuel  wholesaler,  or
16    peddler  marketing  gasoline  or  special fuels under its own
17    brand, tradename, or trademark other than that of  a  refiner
18    or any subsidiary of a refiner.
19        "Wholesale  purchaser"  means  any  person,  partnership,
20    corporation,  or  other  form  of  business  enterprise  that
21    purchases  petroleum products from a supplier and distributes
22    them to retail service stations or to individual or  business
23    consumers.

24        Section 15. Refiner's operation of retail service station
25    prohibited.
26        (a)  A  producer or refiner of petroleum products may not
27    commence either of the following:
28             (1) The direct or  indirect  operation  of  a  major
29        brand,  secondary  brand,  or  unbranded  retail  service
30        station  in  this State with employees of the producer or
31        refiner, a subsidiary company, or a  commissioned  agent,
32        or under a contract with any person, firm, or corporation
33        managing  such  a  station  on a fee arrangement with the
                            -4-               LRB9113765DJsbA
 1        producer or refiner.
 2             (2) The sale of  motor  vehicle  fuel  at  a  retail
 3        service station.
 4        (b)  Except  as provided in Section 20, beginning January
 5    1, 2002, a producer or refiner of petroleum products may  not
 6    operate  directly  or  indirectly  a  major  brand, secondary
 7    brand, or unbranded retail service station with employees  of
 8    the   producer   or  refiner,  a  subsidiary  company,  or  a
 9    commissioned agent, or under  a  contract  with  any  person,
10    firm,  or  corporation managing a retail service station on a
11    fee arrangement  with  the  producer  or  refiner.  A  retail
12    service station may be operated only by a dealer.

13        Section  20. Exception; refiner's ownership of assets. It
14    is not a violation of Section 15 for a refiner to own all  or
15    part  of  the assets of a retail service station, but only if
16    the refiner does not engage in the business of selling  motor
17    vehicle  fuel at the retail service station by the actions of
18    (i) any employee, (ii)  any  commissioned  agent,  (iii)  any
19    person acting on behalf of the refiner or under the refiner's
20    supervisors,  or (iv) any person operating the retail service
21    station pursuant to a contract with the refiner that provides
22    that the refiner has substantial or  effective  control  over
23    the  motor  vehicle  fuel  operations  of  the retail service
24    station.

25        Section   25.   Exception;   State's    allocation    and
26    distribution  of  motor  vehicle fuel. The provisions of this
27    Act shall not be construed as affecting any of the following:
28             (1)  Any  allocation  of  motor  vehicle   fuel   to
29        facilities operated by the State.
30             (2)  The  operation  of  any facility for storage or
31        distribution of motor vehicle fuel by the State.
32             (3)  The operation of any State-owned retail service
                            -5-               LRB9113765DJsbA
 1        station by a producer or refiner of petroleum products.

 2        Section 30. Exception; retail  service  station  operated
 3    for  training  or  other purposes. This Act does not apply to
 4    any retail service station operated by a producer or  refiner
 5    with  its  employees  that  is  used  as  a  training or test
 6    marketing center  or  for  advertising  or  public  relations
 7    purposes. A producer or refiner may not operate more than one
 8    such  retail service station in the State under this Section.
 9    A producer or refiner operating more  than  one  such  retail
10    service  station  on  January 1, 2002 may continue to operate
11    more than one such retail service station  until  January  1,
12    2003.

13        Section 35. Enforcement.
14        (a)  The Attorney General may commence a civil action for
15    appropriate  relief,  including  a  permanent  or   temporary
16    injunction,  if  the  Attorney  General has reason to believe
17    that any person has violated or is violating any provision of
18    this Act or any rule or regulation implementing this Act.
19        (b) If a person violates any provisions of this Act,  any
20    other   person  adversely  affected  by  that  violation  may
21    maintain a civil action against the violator for damages  and
22    appropriate   equitable   relief,   including  temporary  and
23    permanent injunctive relief. If  the  plaintiff  prevails  in
24    such  an  action,  the  plaintiff  is  entitled to reasonable
25    attorney's fees and expert witness fees to  be  paid  by  the
26    defendant,  except  that  in  any  case  in  which  the court
27    determines that only nominal damages are to be awarded to the
28    plaintiff, the court, in its discretion, may determine not to
29    order that such fees be paid by the defendant.
30        (c) An action may be brought under this Section,  without
31    regard  to the amount in controversy, in any judicial circuit
32    in which the plaintiff resides or is  doing  business  or  in
                            -6-               LRB9113765DJsbA
 1    which the defendant resides or is doing business.

 2        Section  40.  Effect  on other laws. No provision of this
 3    Act supersedes any other law of this State if compliance with
 4    the other State law can  be  accomplished  consistently  with
 5    this  Act.  In case of a conflict between a provision of this
 6    Act and any other law of this State, this Act controls.

 7        Section 99. Effective date. This Act takes effect January
 8    1, 2002.

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