LRB-2509/1
RNK:jld:rs
2003 - 2004 LEGISLATURE
June 24, 2003 - Introduced by Representatives Johnsrud, Musser, Albers, Pettis
and Gronemus. Referred to Committee on Ways and Means.
AB415,1,3
1An Act to renumber and amend 100.30 (2) (cj); and
to create 100.30 (2) (cj)
22. of the statutes;
relating to: sales of motor vehicle fuel that are exempt from
3the requirements of the Unfair Sales Act.
Analysis by the Legislative Reference Bureau
Under current law, with certain exceptions, the state Unfair Sales Act or
"minimum markup" law requires a wholesaler of motor vehicle fuel or tobacco
products, or of fermented malt beverages, liquor, or wine, to sell those items for at
least a certain percentage above the cost of the items to the wholesaler or retailer.
For motor vehicle fuel sold at retail, the percentage varies depending on whether the
fuel is sold from a retail station. Current law requires a wholesaler or retailer to sell
any other type of merchandise for a price that is at least the wholesaler's or retailer's
cost.
Current law provides specific methods for determining the cost to the
wholesaler or the retailer. For merchandise other than motor vehicle fuel, the cost
is generally computed as the lesser of the invoice cost or replacement cost of the
merchandise, plus taxes and certain overhead costs, minus certain trade discounts
(computed cost). For motor vehicle fuel, the cost is the greater of the computed cost
or the average posted terminal price, which is an average price at which motor
vehicle fuel is offered on a specific date plus excise taxes and certain overhead costs.
Under current law, among those sales that are exempt from the requirements
of the Unfair Sales Act are sales where the price of merchandise is established in good
faith to meet an existing price of a competitor. Current law defines the "existing price
of a competitor" as a price being simultaneously offered to a buyer for merchandise
of like quality and quantity by a person who is a direct competitor of the seller. Under
this bill, the exemption applies with respect to the sale of motor vehicle fuel only if
the direct competitor is located in this state.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB415, s. 1
1Section
1. 100.30 (2) (cj) of the statutes is renumbered 100.30 (2) (cj) 1. and
2amended to read:
AB415,2,73
100.30
(2) (cj) 1.
"Existing
Except as provided under subd. 2., "existing price
4of a competitor" means a price being simultaneously offered to a buyer for
5merchandise of like quality and quantity by a person who is a direct competitor of
6the retailer, wholesaler, wholesaler of motor vehicle fuel or refiner and from whom
7the buyer can practicably purchase the merchandise.
AB415, s. 2
8Section
2. 100.30 (2) (cj) 2. of the statutes is created to read:
AB415,2,139
100.30
(2) (cj) 2. With respect to the retail sale of motor vehicle fuel, "existing
10price of a competitor" means a price being simultaneously offered to a buyer for motor
11vehicle fuel of like quality and quantity by a person located in this state who is a
12direct competitor of the retailer, wholesaler, wholesaler of motor vehicle fuel or
13refiner and from whom the buyer can practicably purchase the motor vehicle fuel.
