Bill Text: CA AB2258 | 2011-2012 | Regular Session | Amended

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Bill Title: Retail fuel sales: price discounts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2012-07-03 - From committee without further action pursuant to Joint Rule 62(a). [AB2258 Detail]

Download: California-2011-AB2258-Amended.html

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BILL NUMBER: AB 2258	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Assembly Member  Ammiano  
Wieckowski 

                        FEBRUARY 24, 2012

   An act to  amend   add  Section 
12313 of   17044.1 to  the Business and
Professions Code, relating to  uniform weights and measures
  unfair trade practices  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2258, as amended,  Ammiano   Wieckowski
 .  Weights and measures.   Retail fuel
sales: price discounts   .  
   The Unfair Practices Act prohibits certain unfair trade practices.
Under the act, it is unlawful for any person engaged in business to
sell or use any article or product as a loss leader. Existing law
defines "loss leader" as any article or product sold at less than
cost where the purpose is to induce, promote, or encourage the
purchase of other merchandise, where the effect is a tendency or
capacity to mislead or deceive purchasers or prospective purchasers,
or where the effect is to divert trade from or otherwise injure
competitors.  
   This bill, for purposes of determining whether an article or
product is a loss leader, would provide that a person or related
person, as defined, selling automotive fuel at the retail level does
not sell below cost if a fuel price discount, concession, or
reduction is provided in connection with the purchase of other
articles or products and the total price of the fuel and the other
articles or products equals or exceeds the total cost of the fuel and
the other articles or products. The bill would define various terms
for these purposes.  
   Existing law requires that contracts made within this state for
work to be done or for anything to be sold or delivered by weight or
measure be construed according to the common standards, or according
to the weights and measures of the metric system authorized by
Congress, as the contract provides. Existing law provides that the
definitions of basic units of weight and measure, and the tables of
weight and measure and weights and measures equivalents, as published
by the National Bureau of Standards are recognized and shall govern
weighing and measuring equipment and transactions in this state.
 
   This bill would make a technical, nonsubstantive change to the
latter provision by instead referring to the National Institute of
Standards and Technology, the successor to the National Bureau of
Standards. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 17044.1 is added to the 
 Business and Professions Code   , to read:  
   17044.1.  (a) For purposes of Sections 17030, 17043, and 17044, a
person or related person does not sell below cost if all of the
following apply:
   (1) The person or related person sells fuel.
   (2) The person or related person gives, extends, or offers a fuel
price discount, price concession, or price reduction.
   (3) The basis of the fuel price discount, price concession, or
price reduction is the purchase or purchases of another article or
product, or other articles or products, in the same transaction or in
separate transactions, from the person or related person.
   (4) The total price of the fuel and the other article or product,
or the other articles or products, equals or exceeds the total cost.
   (b) For purposes of this section, the following terms have the
following meanings:
   (1) "Fuel" means all grades of automotive fuel, including diesel,
plant-based, or other alternative fuels, sold to consumers at the
retail level.
   (2) "Related person" means a person, as defined in Section 17021,
that directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, the
person specified.
   (3) "Total cost" means the aggregate cost of the fuel and the
other article or product or other articles or products. The separate
costs of fuel and the other article or product or other articles or
products shall be determined as set forth in Sections 17026, 17027,
and 17029. Cost shall be measured over a commercially reasonable
period of time. Cost shall not include the fuel price discount, price
concession, or price reduction.
   (4) "Total price" means the price of the fuel, taking into account
the fuel price discount, price concession, or price reduction, plus
the price of the other article or product or prices of the other
articles or products. Price shall be measured over a commercially
reasonable period of time.  
  SECTION 1.    Section 12313 of the Business and
Professions Code is amended to read:
   12313.  The definitions of basic units of weight and measure, and
the tables of weight and measure and weights and measures
equivalents, as published by the National Institute of Standards and
Technology are recognized and shall govern weighing and measuring
equipment and transactions in this state.