A BILL TO BE ENTITLED
AN ACT to amend the motor fuel marketing act and to study the predatory pricing of motor fuels.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 75‑88 reads as rewritten:
"§ 75‑88.  Public disclosure; quantity of motor fuel available for sale. 
(a)	Any refiner or terminal supplier computing prevailing price under the provisions of G.S. 75‑81(4) shall be required to publicly disclose this price.
(b)	No entity that is selling motor fuel below cost shall limit the quantity of motor fuel sold or offered for sale from a motor fuel pump to any one customer to a quantity less than the entire supply that is owned or possessed by the seller and that the seller is authorized to sell at the place of sale or offering for sale unless preempted by a State or federal state of emergency.
(c)	Motor fuel purchased under this section shall be dispensed into a container approved by the fire prevention code, the State Building Code as authorized under G.S. 143‑139, or a containment vehicle approved by the Department of Transportation.
(d)	Each act violating this section shall constitute a separate offense, and is subject to a civil penalty. The civil penalty for each offense shall be not more than five thousand dollars ($5,000). Upon a proper showing by the Attorney General or the Commissioner of Agriculture, further violations may be temporarily or permanently enjoined. The clear proceeds of civil penalties provided for in this section shall be remitted to the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C‑457.2."
SECTION 2.  There is created the Legislative Study Committee on the Motor Fuels Marketing Act.  The purpose of the Committee is to review Article 3 of Chapter 75 of the General Statutes regarding predatory pricing of motor fuels.
SECTION 3.  The Committee shall consist of 10 members, five members appointed by the President Pro Tempore of the Senate and five members appointed by the Speaker of the House of Representatives. The President Pro Tempore shall designate one Senator as cochair, and the Speaker shall designate one Representative as cochair. Vacancies on the Committee shall be filled by the same appointing authority as made the initial appointment.
SECTION 4.  In conducting the study, the Committee shall consider the following:
(1)	Whether the current definition of "cost" under Article 3 does not provide an adequate standard for cases prosecuted under the Motor Fuels Marketing Act, whether the General Assembly should adopt an external benchmark for determining cost, and whether it would be constitutional for the General Assembly to adopt an external benchmark for determining cost.
(2)	Whether the current statutory standard that requires a showing of intent to injure competition is consistent with other state and federal statutes and case law regarding predatory pricing, whether the current standard is so difficult to prove as to chill the effective use of the current law, and whether it would be constitutional to remove the intent to injure competition requirement from the current law.
(3)	The economic effect that statutes such as the Motor Fuel Marketing Act and the changes proposed in the 2^nd Edition of House Bill 1203 have, if any, on the price of motor fuel to the consumer as well as whether they provide protections against predatory pricing between competitors.
(4)	The fire, public safety, and environmental issues raised by prohibiting a person who is selling motor fuel from limiting the amount of fuel that any one customer could purchase at one time.
(5)	Laws and measures regarding motor fuel pricing adopted by other states to protect small businesses and consumers from predatory pricing, including, but not limited to, price gouging, zone pricing, divorcement, and marketing agreements.
SECTION 5.  The Committee, while in the discharge of its official duties, may exercise all powers provided for under G.S. 120‑19 and G.S. 120‑19.1 through G.S. 120‑19.4. The Committee may meet at any time upon the joint call of the cochairs. The Committee may meet in the Legislative Building or the Legislative Office Building. The Committee may contract for professional, clerical, or consultant services as provided by G.S. 120‑32.02.
The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Committee in its work. The House of Representatives' and the Senate's Supervisors of Legislative Assistants shall assign clerical staff to the Committee, and the expenses relating to the clerical employees shall be borne by the Committee. Members of the Committee shall receive subsistence and travel expenses at the rates set forth in G.S. 120‑3.1.
SECTION 6.  The Committee shall report its findings and recommendations to the 2005 General Assembly upon its convening.  The Committee shall terminate the earlier of the filing a report or upon the convening of the 2005 General Assembly.
SECTION 7.  From funds appropriated to the General Assembly, the Legislative Services Commission shall allocate funds for the expenses of the Committee.
SECTION 8.  Section 1 of this act becomes effective October 1, 2004, and applies to sales of motor fuel and offers of sale of motor fuel on or after that date.  The remainder of this act is effective when it becomes law.