Illinois 2025-2026 Regular Session

Illinois House Bill HB3583 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3583 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED: New Act815 ILCS 505/HHHH new Creates the Motor Fuel Minimum Markup Act. Provides that it is unlawful for a retailer, wholesaler, or refiner to sell or offer to sell motor fuel at less than a specified cost with the intent or effect of inducing the purchase of other merchandise or diverting trade from a competitor. Sets forth notice requirements. Provides that a violation of the Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change. LRB104 12144 SPS 22243 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3583 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED: New Act815 ILCS 505/HHHH new New Act 815 ILCS 505/HHHH new Creates the Motor Fuel Minimum Markup Act. Provides that it is unlawful for a retailer, wholesaler, or refiner to sell or offer to sell motor fuel at less than a specified cost with the intent or effect of inducing the purchase of other merchandise or diverting trade from a competitor. Sets forth notice requirements. Provides that a violation of the Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change. LRB104 12144 SPS 22243 b LRB104 12144 SPS 22243 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3583 Introduced , by Rep. Kevin John Olickal SYNOPSIS AS INTRODUCED:
33 New Act815 ILCS 505/HHHH new New Act 815 ILCS 505/HHHH new
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66 Creates the Motor Fuel Minimum Markup Act. Provides that it is unlawful for a retailer, wholesaler, or refiner to sell or offer to sell motor fuel at less than a specified cost with the intent or effect of inducing the purchase of other merchandise or diverting trade from a competitor. Sets forth notice requirements. Provides that a violation of the Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.
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1212 1 AN ACT concerning business.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 1. Short title. This Act may be cited as the Motor
1616 5 Fuel Minimum Markup Act.
1717 6 Section 5. Definitions.
1818 7 As used in this Act:
1919 8 "Average posted terminal price" means the average posted
2020 9 rack price, as published by a petroleum price reporting
2121 10 service, at which motor fuel is offered for sale at the close
2222 11 of business on the determination date by all refiners and
2323 12 wholesalers of motor fuel at a terminal plus any excise, sales
2424 13 or use taxes imposed on the motor fuel or on its sale, any cost
2525 14 incurred for transportation and any other charges that are not
2626 15 otherwise included in the average posted rack price. In this
2727 16 paragraph, "average" means the arithmetic mean.
2828 17 "Cost to retailer" means:
2929 18 (1) In the case of the retail sale of motor fuel by a
3030 19 refiner at a retail station owned or operated either
3131 20 directly or indirectly by the refiner, the refiner's
3232 21 lowest selling price to other retailers or to wholesalers
3333 22 of motor fuel on the date of the refiner's retail sale,
3434 23 less all trade discounts except customary discounts for
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4242 Creates the Motor Fuel Minimum Markup Act. Provides that it is unlawful for a retailer, wholesaler, or refiner to sell or offer to sell motor fuel at less than a specified cost with the intent or effect of inducing the purchase of other merchandise or diverting trade from a competitor. Sets forth notice requirements. Provides that a violation of the Act constitutes a violation of the Consumer Fraud and Deceptive Business Practices Act. Amends the Consumer Fraud and Deceptive Business Practices Act to make a conforming change.
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7171 1 cash, plus any excise, sales or use taxes imposed on the
7272 2 motor fuel or on its sale and any cost incurred for
7373 3 transportation and any other charges not otherwise
7474 4 included in the invoice cost of the motor fuel, plus a
7575 5 markup of OPIS plus one cent to cover a proportionate part
7676 6 of the cost of doing business; or the average posted
7777 7 terminal price at the terminal located closest to the
7878 8 retail station plus a markup of OPIS plus one cent to cover
7979 9 a proportionate part of the cost of doing business,
8080 10 whichever is greater.
8181 11 (2) In the case of the retail sale of motor fuel by a
8282 12 wholesaler, who is not a refiner, at a retail station
8383 13 owned or operated either directly or indirectly by the
8484 14 wholesaler, the invoice cost of the motor fuel to the
8585 15 wholesaler at least 10 days before the date of sale, or the
8686 16 replacement cost of the motor fuel, whichever is lower,
8787 17 less all trade discounts except customary discounts for
8888 18 cash, plus any excise, sales or use taxes imposed on the
8989 19 motor fuel or on its sale, and any cost incurred for
9090 20 transportation and any other charges not otherwise
9191 21 included in the invoice cost or replacement cost of the
9292 22 motor fuel, plus a markup of OPIS plus one cent to cover a
9393 23 proportionate part of the cost of doing business; or the
9494 24 average posted terminal price at the terminal located
9595 25 closest to the retail station plus a markup of OPIS plus
9696 26 one cent to cover a proportionate part of the cost of doing
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107107 1 business, whichever is greater.
108108 2 (3) In the case of the retail sale of motor fuel by a
109109 3 person other than a refiner or a wholesaler at a retail
110110 4 station, the invoice cost of the motor fuel to the
111111 5 retailer at least 10 days before the date of sale, or the
112112 6 replacement cost of the motor fuel, whichever is lower,
113113 7 less all trade discounts except customary discounts for
114114 8 cash, plus any excise, sales or use taxes imposed on the
115115 9 motor fuel or on its sale and any cost incurred for
116116 10 transportation and any other charges not otherwise
117117 11 included in the invoice cost or the replacement cost of
118118 12 the motor fuel, plus a markup of OPIS plus one cent to
119119 13 cover a proportionate part of the cost of doing business;
120120 14 or the average posted terminal price at the terminal
121121 15 located closest to the retailer plus a markup of OPIS plus
122122 16 one cent price to cover a proportionate part of the cost of
123123 17 doing business, whichever is greater.
124124 18 (4) In the case of a retail sale of motor fuel by a
125125 19 refiner at a place other than a retail station, the
126126 20 refiner's lowest selling price to other retailers or to
127127 21 wholesalers of motor fuel on the date of the refiner's
128128 22 retail sale, less all trade discounts except customary
129129 23 discounts for cash, plus any excise, sales or use taxes
130130 24 imposed on the motor fuel or on its sale and any cost
131131 25 incurred for transportation and any other charges not
132132 26 otherwise included in the invoice cost of the motor fuel
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143143 1 to which shall be added a markup to cover a proportionate
144144 2 part of the cost of doing business, which markup, in the
145145 3 absence of proof of a lesser cost, shall be OPIS plus one
146146 4 cent of the cost to the retailer.
147147 5 (5) In the case of a retail sale of motor fuel by a
148148 6 person other than a refiner at a place other than a retail
149149 7 station, the invoice cost of the motor fuel to the
150150 8 retailer at least 10 days before the date of the sale, or
151151 9 the replacement cost of the motor fuel, whichever is
152152 10 lower, less all trade discounts except customary discounts
153153 11 for cash, plus any excise, sales or use taxes imposed on
154154 12 the motor fuel or on its sale and any cost incurred for
155155 13 transportation and any other charges not otherwise
156156 14 included in the invoice cost or the replacement cost of
157157 15 the motor fuel to which shall be added a markup to cover a
158158 16 proportionate part of the cost of doing business, which
159159 17 markup, in the absence of proof of a lesser cost, shall be
160160 18 OPIS plus one cent of the cost to the retailer.
161161 19 "Cost to retailer" and "cost to wholesaler" mean bona fide
162162 20 costs; and purchases made by retailers, wholesalers, and
163163 21 refiners at prices which cannot be justified by prevailing
164164 22 market conditions in this State shall not be used in
165165 23 determining cost to the retailer and cost to the wholesaler.
166166 24 Prices at which purchases of merchandise other than motor fuel
167167 25 are made by retailers or wholesalers cannot be justified by
168168 26 prevailing market conditions in this State when they are below
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179179 1 the lowest prices at which the manufacturer or producer of the
180180 2 merchandise sells to other retailers or wholesalers in this
181181 3 State. Prices at which sales of motor fuel are made by
182182 4 retailers, wholesalers, and refiners cannot be justified by
183183 5 prevailing market conditions in this state when they are below
184184 6 the applicable cost to retailers and cost to wholesalers.
185185 7 (1) With respect to the wholesale sale of motor fuel
186186 8 by a refiner, "cost to wholesaler" means the refiner's
187187 9 lowest selling price to other retailers or to wholesalers
188188 10 of motor fuel on the date of the refiner's wholesale sale,
189189 11 less all trade discounts except customary discounts for
190190 12 cash, plus any excise, sales or use taxes imposed on the
191191 13 motor fuel or on its sale and any cost incurred for
192192 14 transportation and any other charges not otherwise
193193 15 included in the invoice cost of the motor fuel, to which
194194 16 shall be added a markup to cover a proportionate part of
195195 17 the cost of doing business, which markup, in the absence
196196 18 of proof of a lesser cost, shall be 3% of the cost to the
197197 19 wholesaler as set forth in this subdivision.
198198 20 (2) With respect to the wholesale sale of motor fuel
199199 21 by a person other than a refiner, "cost to wholesaler"
200200 22 means the invoice cost of the motor fuel to the wholesaler
201201 23 at least 10 days before the date of the sale or the
202202 24 replacement cost of the motor fuel, whichever is lower,
203203 25 less all trade discounts except customary discounts for
204204 26 cash, plus any excise, sales or use taxes imposed on the
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215215 1 motor fuel or on its sale and any cost incurred for
216216 2 transportation and any other charges not otherwise
217217 3 included in the invoice cost or the replacement cost of
218218 4 the motor fuel to which shall be added a markup to cover a
219219 5 proportionate part of the cost of doing business, which
220220 6 markup, in the absence of proof of a lesser cost, shall be
221221 7 3%of the cost to the wholesaler as set forth in this
222222 8 subdivision.
223223 9 "Determination date" means the day preceding the day of
224224 10 the sale at retail of motor fuel. If a retailer sells motor
225225 11 fuel on a day other than the day on which the retailer last
226226 12 purchased any motor fuel and the sale of the motor fuel by the
227227 13 retailer occurs at least 10 days after its last purchase by the
228228 14 retailer, "determination date" means the following dates
229229 15 selected by the retailer:
230230 16 (1) the day preceding the day of the sale of motor
231231 17 vehicle fuel by the retailer; or
232232 18 (2) the day on which motor vehicle fuel was last
233233 19 purchased by the retailer.
234234 20 "Existing price of a competitor" means a price being
235235 21 simultaneously offered to a buyer for merchandise of like
236236 22 quality and quantity by a person who is a direct competitor of
237237 23 the retailer, wholesaler, or refiner and from whom the buyer
238238 24 can practicably purchase the merchandise.
239239 25 "Oil Price Information Service" or "OPIS" means the daily
240240 26 publication containing oil price information that is a widely
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251251 1 accepted independent fuel price benchmark for supply.
252252 2 "Petroleum price reporting service" means a wholesale
253253 3 petroleum product price reporting service that is recognized
254254 4 nationwide.
255255 5 "Refiner" means a manufacturer, producer or refiner of
256256 6 motor fuel.
257257 7 "Replacement cost" means the cost computed at which the
258258 8 merchandise sold could have been bought by the retailer or
259259 9 wholesaler at any time if bought in the same quantity as the
260260 10 retailer or wholesaler's last purchase of the merchandise.
261261 11 "Retailer" includes every person engaged in the business
262262 12 of making motor fuel sales at retail in this State, but, in the
263263 13 case of a person engaged in the business of selling motor fuel
264264 14 both at retail and at wholesale, the term shall be applied only
265265 15 to the retail portion of the business.
266266 16 "Sell" includes any advertising or offer to sell or any
267267 17 transfer of motor fuel where title is retained by the
268268 18 retailer, wholesaler, or refiner as security for the payment
269269 19 of the purchase price. In determining the selling price of
270270 20 merchandise by wholesalers, wholesalers of motor fuel,
271271 21 retailers and refiners under this Section, all fractions of a
272272 22 cent shall be carried to the next full cent.
273273 23 "Sell at retail" means any transfer for a valuable
274274 24 consideration, made in the ordinary course of trade or in the
275275 25 usual prosecution of the retailer's business, of title to
276276 26 tangible personal property to the purchaser for consumption or
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287287 1 use other than resale or further processing or manufacturing.
288288 2 "Sell at wholesale" include any transfer for a valuable
289289 3 consideration made in ordinary course of trade or the usual
290290 4 conduct of the wholesaler's business, of title to tangible
291291 5 personal property to the purchaser for purposes of resale or
292292 6 further processing or manufacturing.
293293 7 "Terminal" means a motor fuel storage and distribution
294294 8 facility that is supplied by a pipeline or marine vessel, from
295295 9 which facility motor fuel may be removed at a rack and from
296296 10 which facility at least 3 refiners or wholesalers of motor
297297 11 fuel sell motor fuel. For the purposes of this definition, if 2
298298 12 or more terminals are included in the same geographic area by a
299299 13 petroleum price reporting service, they shall be considered
300300 14 one terminal.
301301 15 "Wholesaler" includes:
302302 16 (1) a person who stores motor fuel and sells it
303303 17 through 5 or more retail outlets that the person owns or
304304 18 operates;
305305 19 (2) a person who acquires motor fuel from a refiner or
306306 20 as a sale at wholesale and stores it in a bulk storage
307307 21 facility other than a retail station for further sale and
308308 22 distribution;
309309 23 (3) a person engaged in the business of making sales
310310 24 at wholesale of motor fuel in this State; and
311311 25 (4) a person engaged in the business of selling diesel
312312 26 fuel if that person's sales of diesel fuel accounted for
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323323 1 at least 60% of that person's total sales of motor fuel in
324324 2 the previous year or, if that person did not engage in the
325325 3 business of selling diesel fuel in the previous year, if
326326 4 that person reasonably anticipates that sales of diesel
327327 5 fuel will account for at least 60% of that person's total
328328 6 sales of motor fuel in the current year.
329329 7 Section 10. Prohibition of loss leaders.
330330 8 (a) It is unlawful for a retailer, wholesaler, or refiner
331331 9 to sell or offer to sell motor fuel at less than the cost
332332 10 provided in subsection (c) with the intent or effect of
333333 11 inducing the purchase of other merchandise or diverting trade
334334 12 from a competitor.
335335 13 (b) A sale of motor fuel by a retailer, wholesaler, or
336336 14 refiner at less than the cost provided in subsection (c) shall
337337 15 be prima facie evidence of intent or effect to induce the
338338 16 purchase of other merchandise, or to unfairly divert trade
339339 17 from a competitor, or to otherwise injure a competitor.
340340 18 (c) For the purposes of this Section:
341341 19 (1) a retailer shall not sell motor fuel at a price
342342 20 greater than the cost to retailer, as specified in Section
343343 21 5; and
344344 22 (2) a wholesaler, or refiner shall not sell motor fuel
345345 23 at a price greater than the cost to wholesaler, as
346346 24 specified in Section 5.
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357357 1 Section 15. Notice requirements.
358358 2 (a) If a retailer, wholesaler, or refiner, acting in good
359359 3 faith, lowers the price of motor fuel below the applicable
360360 4 price specified in subsection (b) of Section 10 to meet an
361361 5 existing price of a competitor, the retailer, wholesaler, or
362362 6 refiner shall submit to the Attorney General notification of
363363 7 the lower price before the close of business on the day the
364364 8 price was lowered in the form and the manner required by the
365365 9 Attorney General.
366366 10 (b) A retailer, wholesaler, or refiner that fails to
367367 11 comply with subsection (a) creates a rebuttable presumption
368368 12 that the retailer, wholesaler, or refiner did not lower the
369369 13 price to meet the existing price of a competitor.
370370 14 (c) If a retailer, wholesaler, or refiner complies with
371371 15 subsection (a) they shall not be held liable for violating
372372 16 this Act.
373373 17 Section 20. Exceptions. This Act does not apply to sales
374374 18 at retail or sales at wholesale if motor fuel is sold by a
375375 19 person to a wholesaler, who may sell the motor fuel at either
376376 20 retail or wholesale.
377377 21 Section 25. Enforcement. A violation of this Act
378378 22 constitutes a violation of the Consumer Fraud and Deceptive
379379 23 Business Practices Act. All remedies, penalties, and authority
380380 24 granted to the Attorney General by that Act shall be available
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391391 1 to the Attorney General for the enforcement of this Act.
392392 2 Section 30. Rulemaking. The Attorney General may adopt
393393 3 rules to implement and administer this Act.
394394 4 Section 35. The Consumer Fraud and Deceptive Business
395395 5 Practices Act is amended by adding Section HHHH as follows:
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