09
SB30/AP
Senate
Bill 30
By:
Senators Tolleson of the 20th, Hooks of the 14th, Cowsert of the 46th, Harp of
the 29th, Tarver of the 22nd and others
AS
PASSED
AN
ACT
To
amend Article 9 of Chapter 1 of Title 10 of the Official Code of Georgia
Annotated, relating to gasoline marketing practices, so as to provide that
suppliers of automotive gasoline shall offer to supply gasoline distributors
with gasoline that has not been blended with, but is suitable for blending with,
fuel alcohol; to preclude inhibiting gasoline distributors from being blenders;
to define certain terms; to change certain provisions relating to marketing
agreements subject to said article; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
9 of Chapter 1 of Title 10 of the Official Code of Georgia Annotated, relating
to gasoline marketing practices, is amended by revising Code Section 10-1-232,
relating to definitions, as follows:
"10-1-232.
As
used in this article, the term:
(1)
'Automotive gasoline' or 'gasoline' means octane rated fuels made from petroleum
products for use in the propulsion of motor vehicles.
(2)
'Automotive gasoline dealer' or 'gasoline dealer' means any person or firm
engaged primarily in the retail sale of automotive gasoline and related products
and services under a marketing agreement entered into with an automotive
gasoline distributor.
(3)
'Automotive gasoline distributor' or 'gasoline distributor' means any person or
firm engaged, whether as a jobber or supplier, in the sale, consignment, or
distribution of gasoline to automotive gasoline dealers pursuant to marketing
agreements.
(3.1)
'Blended fuel' means a mixture composed of automotive gasoline and another
liquid, other than a de minimus amount of a product such as carburetor detergent
or oxidation inhibitor, that can be used as a fuel in a motor
vehicle.
(3.2)
'Blender' means a person or firm which produces blended fuel outside a terminal
transfer system.
(3.3)
'Fuel alcohol' means alcohol or fuel grade ethanol.
(3.4)
'Gasohol' means a blended fuel composed of gasoline and fuel grade
ethanol.
(3.5)
'Jobber' means an automotive gasoline distributor which is not a
supplier.
(4)
'Marketing agreement' or 'agreement' means a written agreement, including a
franchise, and all related written agreements between an automotive gasoline
distributor and an automotive gasoline dealer under which such dealer is
supplied automotive gasoline for retail sale or an agreement between an
automotive gasoline distributor and an automotive gasoline dealer under which
the automotive gasoline dealer is granted the right to occupy premises owned,
leased, or controlled by the automotive gasoline distributor for the purpose of
engaging in the retail sale of gasoline of the automotive gasoline
distributor.
(4.1)
'Position holder' means a person or firm which holds the inventory position in
automotive gasoline in a terminal, as reflected on the records of the terminal
operator. A person or firm holds the inventory position in automotive gasoline
when that person or firm has a contract with the terminal operator for the use
of storage facilities and terminaling services for gasoline at the terminal.
The term includes a terminal operator which owns gasoline in the
terminal.
(4.2)
'Rack' means a mechanism for delivering automotive gasoline from a refinery, a
terminal, or a bulk plant into a transport truck, a railroad tank car, or
another means of transfer that is outside the terminal transfer
system.
(4.3)
'Refiner' means a person or firm which owns, operates, or controls a refinery,
wherever located.
(4.4)
'Refinery' means a facility used to process crude oil, unfinished oils, natural
gas liquids, or other hydrocarbons into automotive gasoline and from which
automotive gasoline may be removed by pipeline or vessel or at a rack. The term
does not include a facility that produces only blended fuel or
gasohol.
(4.5)
'Removal' means a physical transfer other than by evaporation, loss, or
destruction. A physical transfer to a transport truck or another means of
conveyance outside a terminal transfer system is complete upon delivery into the
means of conveyance.
(5)
'Retail sale of automotive gasoline' means the sale thereof for consumption, and
not for resale, at a retail outlet serving the motoring public.
(6)
'Supplier' means:
(A)
A position holder or a person or firm which receives automotive gasoline
pursuant to a two-party exchange; or
(B)
A refiner.
(7)
'Terminal' means an automotive gasoline storage and distribution facility that
has been assigned a terminal control number by the United States Internal
Revenue Service, is supplied by pipeline or marine vessel, and from which
automotive gasoline may be removed at a rack.
(8)
'Terminal operator' means a person or firm which owns, operates, or otherwise
controls a terminal.
(9)
'Terminal transfer system' means an automotive gasoline distribution system
consisting of refineries, pipelines, marine vessels, and terminals. The term
has the same meaning as 'bulk transfer/terminal system' under 26 C.F.R. Section
48.4081-1.
(10)
'Two-party exchange' means a transaction in which automotive gasoline is
transferred from one licensed supplier to another licensed supplier pursuant to
an exchange agreement under which the supplier that is the position holder
agrees to deliver automotive gasoline to the other supplier or the other
supplier's customer at the rack of the terminal at which the delivering supplier
is the position holder."
SECTION
2.
Said
article is further amended by adding a new Code section to read as
follows:
"10-1-234.1.
Regardless
of other products offered, any supplier which, pursuant to a marketing
agreement, supplies gasoline from a terminal in this state to a gasoline
distributor shall offer to supply such party with gasoline that has not been
blended with, but is suitable for blending with, fuel alcohol. No supplier
shall prevent or inhibit a gasoline distributor in this state from being a
blender or from qualifying for any federal or state tax credit due to blenders.
If a supplier supplies gasoline to a gasoline distributor pursuant to this Code
section which is then blended, the gasoline distributor shall indemnify and hold
harmless such supplier against any losses or damages arising out of claims,
costs, judgments, and expenses, including reasonable attorney's fees, or suits
relating to or arising out of such blending."
SECTION
3.
Said
article is further amended by revising Code Section 10-1-240, relating to
marketing agreements subject to said article, as follows:
"10-1-240.
This
article shall apply to all marketing agreements as defined in paragraph (4) of
Code Section 10-1-232 that are granted, renewed, or amended to extend the lease
period on or after July 1, 2009."
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.