Fairness in Bargaining Act of 1989

Fairness in Bargaining Act of 1989 - Amends the Petroleum Marketing Practices Act to provide that, with respect to the sale, consignment, or distribution of motor fuel, the term "franchise" includes any contract between specified parties which is economically necessary to the operation of the franchise.

Provides that the termination or non-renewal of a franchise relationship, upon expiration of an underlying lease for marketing premises, is reasonable if specified conditions exist.

 
B37 2/3/89 [OC's]
HR 830 IH
101st CONGRESS
1st Session
 H. R. 830
To amend the Petroleum Marketing Practices Act.
IN THE HOUSE OF REPRESENTATIVES
February 2, 1989
Mr. WALGREN (for himself and Mr. TAUKE) introduced the following bill;
which was referred to the Committee on Energy and Commerce
A BILL
To amend the Petroleum Marketing Practices Act.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the Fairness in Bargaining Act of 1989.
SEC. 2. DEFINITION.
  Section 101(1)(B) of the Petroleum Marketing Practices Act (15
  U.S.C. 2801(1)(B)) is amended--
  (1) by striking out `(iii)' and inserting in lieu thereof `(iv)'; and
  (2) by inserting the following new clause after clause (ii):
  `(iii) any contract between the parties described in clauses (i) through
  (iv) of paragraph (1)(A) which is conomically necessary to the operation
  of the franchise;
SEC. 3. GROUNDS FOR NONRENEWAL IN CERTAIN CASE.
  Section 102(b)(3)(A) of the Petroleum Marketing Practices Act (15
  U.S.C. 2802(b)(3)(A)) is amended--
  (1) by striking out `and' at the end of clause (i);
  (2) by striking out the period at the end of clause (ii) and inserting in
  lieu thereof `; and'; and
  (3) by adding at the end the following:
  `(iii) such changes and additions are fair and reasonable.'.
SEC. 4. NEGOTIATION OF UNDERLYING LEASE.
  Section 102(c)(4) of the Petroleum Marketing Practices Act (15
  U.S.C. 2802(c)(4)) is amended by adding at the end:
`and if, in any case in which the franchisor has an option to renew such
underlying lease or purchase such premises, the franchisor provides, at least
90 days before the date on which such option expires, the franchisee with
the name, address, and phone number of the owner or lessor of the underlying
lease and agrees not to use this paragraph as a ground for nonrenewal or
termination during any term during which the franchisee is able to retain
possession of the premises as a result of any agreement entered into with
the owner or lessor of such premises;'.