AN ACT
ENTITLED, An Act to
prohibit certain contract restrictions on the sale of renewable motor fuels by
retailers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 37-2 be amended by adding thereto a NEW SECTION to read as follows:
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 37-2 be amended by adding thereto a NEW SECTION to read as follows:
Terms used in this Act mean:
(1) "Franchise-related document," a franchise agreement, branded jobber contract, branded
marketer agreement, and any other contract or directive of a franchisor relating to terms
or conditions of the sale of fuel by a franchisee or customer;
(2) "Renewable fuel," biodiesel, biodiesel blend, ethyl alcohol, ethanol blend, and E-85, all
as defined in
§
10-47B-3.
Section 2. That chapter 37-2 be amended by adding thereto a NEW SECTION to read as follows:
Section 2. That chapter 37-2 be amended by adding thereto a NEW SECTION to read as follows:
No franchise-related document entered into or renewed on or after the effective date of this Act
may contain any provision allowing a franchisor to restrict the franchisee or any affiliate of the
franchisee from:
(1) Installing on the marketing premises of the franchisee a renewable fuel pump or tank,
except that the franchisee's franchisor may restrict the installation of a tank on leased
marketing premises of the franchisor;
(2) Converting an existing tank or pump on the marketing premises of the franchisee for
renewable fuel use;
(3) Advertising the sale of any renewable fuel, including through the use of signage;
(4) Selling renewable fuel in any specified area on the marketing premises of the franchisee,
including any area in which a name or logo of a franchisor or any other entity appears;
(5) Purchasing renewable fuel from sources other than the franchisor if the franchisor does
not offer its own renewable fuel for sale by the franchisee;
(6) Listing renewable fuel availability or prices, including on service station signs, fuel
dispensers, or light poles; or
(7) Allowing for payment of renewable fuel with any form of payment available for any other
type of fuel.
Nothing in this section authorizes any activity that constitutes mislabeling, misbranding, willful
adulteration, or other trademark violations by the franchisee.
Section 3. That chapter 37-2 be amended by adding thereto a NEW SECTION to read as follows:
Section 3. That chapter 37-2 be amended by adding thereto a NEW SECTION to read as follows:
Nothing in this Act precludes a franchisor from requiring the franchisee to obtain reasonable
indemnification and insurance policies.
Section 4. That chapter 37-2 be amended by adding thereto a NEW SECTION to read as follows:
Section 4. That chapter 37-2 be amended by adding thereto a NEW SECTION to read as follows:
No franchise-related document that requires that three grades of gasoline be sold by the
applicable franchisee may prevent the franchisee from selling a renewable fuel in lieu of one, and
only one, grade of gasoline.
Section 5. That chapter 37-2 be amended by adding thereto a NEW SECTION to read as follows:
Section 5. That chapter 37-2 be amended by adding thereto a NEW SECTION to read as follows:
Any franchisor found guilty of violating the provisions of sections 2 or 4 of this Act is guilty of
a Class 1 misdemeanor.
An Act to prohibit certain contract restrictions on the sale of renewable motor fuels by retailers.
An Act to prohibit certain contract restrictions on the sale of renewable motor fuels by retailers.
|
I certify that the attached Act originated in the
HOUSE as
Bill
No.
1247
____________________________ Chief Clerk ____________________________ Speaker of the House
Attest:
____________________________ Chief Clerk
____________________________
Attest:
____________________________ Secretary of the Senate
House
Bill
No.
1247
File No. ____ Chapter No. ______ |
Received at this Executive Office this _____ day of _____________ ,
20____ at ____________ M.
By _________________________ for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________ Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State
Filed ____________ , 20___
____________________________ Secretary of State
By _________________________ |
