As Introduced

12th General Assembly
Regular Session
2007-2008
S. B. No. 193


Senator Grendell 

Cosponsors: Senators Schuring, Cafaro, Cates, Goodman, Miller, D., Kearney, Smith, Padgett, Miller, R., Mason, Mumper 



A BILL
To amend section 1345.02 and to enact sections 1
3741.20 and 3741.21 of the Revised Code to make 2
charging a price for a grade of gasoline that does 3
not bear a reasonable relationship to the costs of 4
making the particular grade of gasoline available 5
to consumers an unfair or deceptive consumer sales 6
practice; to require refiners and wholesalers of 7
petroleum products to submit monthly reports to 8
the Director of Commerce regarding petroleum 9
products shipped into, used in, and exported from 10
this state; to require retail sellers of gasoline 11
to submit a written notice to the Director if the 12
retail seller increases the price of gasoline sold 13
at the pump by seven cents or more during a 14
calendar week; and to create the Gasoline 15
Practices Oversight Commission for the period 16
ending December 31, 2009.17


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That section 1345.02 be amended and sections 18
3741.20 and 3741.21 of the Revised Code be enacted to read as 19
follows:20

       Sec. 1345.02.  (A) No supplier shall commit an unfair or21
deceptive act or practice in connection with a consumer22
transaction. Such an unfair or deceptive act or practice by a23
supplier violates this section whether it occurs before, during,24
or after the transaction.25

       (B) Without limiting the scope of division (A) of this26
section, the act or practice of a supplier in representing any of27
the following is deceptive:28

       (1) That the subject of a consumer transaction has29
sponsorship, approval, performance characteristics, accessories,30
uses, or benefits that it does not have;31

       (2) That the subject of a consumer transaction is of a32
particular standard, quality, grade, style, prescription, or33
model, if it is not;34

       (3) That the subject of a consumer transaction is new, or35
unused, if it is not;36

       (4) That the subject of a consumer transaction is available 37
to the consumer for a reason that does not exist;38

       (5) That the subject of a consumer transaction has been39
supplied in accordance with a previous representation, if it has40
not, except that the act of a supplier in furnishing similar41
merchandise of equal or greater value as a good faith substitute42
does not violate this section;43

       (6) That the subject of a consumer transaction will be44
supplied in greater quantity than the supplier intends;45

       (7) That replacement or repair is needed, if it is not;46

       (8) That a specific price advantage exists, if it does not;47

       (9) That the supplier has a sponsorship, approval, or48
affiliation that the supplier does not have;49

       (10) That a consumer transaction involves or does not involve 50
a warranty, a disclaimer of warranties or other rights, remedies, 51
or obligations if the representation is false.52

       (C) In construing division (A) of this section, the court53
shall give due consideration and great weight to federal trade54
commission orders, trade regulation rules and guides, and the55
federal courts' interpretations of subsection 45 (a)(1) of the56
"Federal Trade Commission Act," 38 Stat. 717 (1914), 15 U.S.C.A.57
41, as amended.58

       (D) No supplier shall offer to a consumer or represent that a 59
consumer will receive a rebate, discount, or other benefit as an 60
inducement for entering into a consumer transaction in return for 61
giving the supplier the names of prospective consumers, or 62
otherwise helping the supplier to enter into other consumer 63
transactions, if earning the benefit is contingent upon an event 64
occurring after the consumer enters into the transaction.65

       (E)(1) No supplier, in connection with a consumer transaction66
involving natural gas service or public telecommunications service67
to a consumer in this state, shall request or submit, or cause to 68
be requested or submitted, a change in the consumer's provider of 69
natural gas service or public telecommunications service, without 70
first obtaining, or causing to be obtained, the verified consent 71
of the consumer. For the purpose of this division and with respect 72
to public telecommunications service only, the procedures 73
necessary for verifying the consent of a consumer shall be those 74
prescribed by rule by the public utilities commission for public75
telecommunications service under division (D) of section 4905.7276
of the Revised Code. Also, for the purpose of this division, the 77
act, omission, or failure of any officer, agent, or other 78
individual, acting for or employed by another person, while acting 79
within the scope of that authority or employment, is the act or 80
failure of that other person.81

       (2) Consistent with the exclusion, under 47 C.F.R.82
64.1100(a)(3), of commercial mobile radio service providers from 83
the verification requirements adopted in 47 C.F.R. 64.1100,84
64.1150, 64.1160, 64.1170, 64.1180, and 64.1190 by the federal85
communications commission, division (E)(1) of this section does86
not apply to a provider of commercial mobile radio service insofar 87
as such provider is engaged in the provision of commercial mobile 88
radio service. However, when that exclusion no longer is in89
effect, division (E)(1) of this section shall apply to such a90
provider.91

       (3) The attorney general may initiate criminal proceedings 92
for a prosecution under division (C) of section 1345.99 of the93
Revised Code by presenting evidence of criminal violations to the 94
prosecuting attorney of any county in which the offense may be 95
prosecuted. If the prosecuting attorney does not prosecute the 96
violations, or at the request of the prosecuting attorney, the 97
attorney general may proceed in the prosecution with all the 98
rights, privileges, and powers conferred by law on prosecuting 99
attorneys, including the power to appear before grand juries and 100
to interrogate witnesses before grand juries.101

       (F) Concerning a consumer transaction in connection with a 102
residential mortgage, and without limiting the scope of division 103
(A) or (B) of this section, the act of a supplier in doing either 104
of the following is deceptive:105

       (1) Knowingly failing to provide disclosures required under 106
state and federal law;107

       (2) Knowingly providing a disclosure that includes a material 108
misrepresentation.109

       (G) The owner of a gasoline service station violates division 110
(A) of this section if the station charges consumers a price for a 111
grade of gasoline that does not bear a reasonable relationship to 112
the costs necessary to make the particular grade of gasoline 113
available to consumers.114

       Sec. 3741.20. (A) Each refiner of petroleum products and each 115
wholesaler of petroleum products doing business in this state 116
shall prepare and submit to the director of commerce on a monthly 117
basis a report that specifies all of the following amounts that 118
are attributable to the activities of the refiner or wholesaler:119

       (1) The amount of unrefined and refined petroleum products 120
that the refiner or wholesaler had brought into this state during 121
the previous calendar month;122

       (2) The amount of the petroleum products described in 123
division (A)(1) of this section that were consumed in this state 124
during the previous calendar month;125

       (3) The amount of the petroleum products described in 126
division (A)(1) of this section that were exported from this state 127
during the previous calendar month.128

       (B) Each refiner and wholesaler shall submit the report 129
required under division (A) of this section to the director not 130
later than the tenth day of the month immediately following the 131
month covered in the report. The director shall post a copy of 132
each refiner and wholesaler's report on the web site maintained by 133
the department of commerce.134

       Sec. 3741.21.  As used in this section, "calendar week" means 135
the time period beginning at midnight on Sunday and ending at 136
midnight on the Sunday immediately following that initial Sunday.137

       If a retail seller of gasoline increases the price of 138
gasoline sold directly to consumers at a gasoline pump during a 139
calendar week, and the total amount of any increases occurring in 140
that week equals or will equal an increase of seven cents or more 141
in the price of gasoline sold as compared to the price of gasoline 142
sold on the previous Sunday of that calendar week, the retail 143
seller shall submit a written notice to the director of commerce 144
informing the director that the retail seller has or will increase 145
by seven cents or more the price of gasoline sold during that 146
calendar week. The retail seller shall include in the notice the 147
reason for that price increase. The retail seller shall submit the 148
notice at any time during the time period beginning twenty-four 149
hours prior to the time the price increase that results or will 150
result in an increase of seven cents or more in the price of 151
gasoline during that calendar week takes effect and ending 152
twenty-four hours after the time such a price increase takes 153
effect.154

       Section 2. That existing section 1345.02 of the Revised Code 155
is hereby repealed.156

       Section 3. (A) There is hereby created the Ohio Gasoline157
Practices Oversight Commission consisting of ten members. The158
President of the Senate and the Speaker of the House of159
Representatives each shall appoint three persons from their160
respective houses to serve as members of the Commission. Not more161
than two of the members from each house shall be of the same162
political party. The Governor, the Attorney General, the Auditor163
of State, and the Ohio Consumers' Counsel each shall appoint one164
person to serve as a member of the Commission. A vacancy shall be165
filled in the same manner as the original appointment.166

       The Commission shall elect from among its members a167
chairperson and a vice-chairperson and shall appoint a secretary168
who need not be a member of the Commission. Six members of the169
Commission constitute a quorum, and the affirmative vote of six170
members is necessary for any action that the Commission takes. A171
vacancy in the membership of the Commission does not impair the172
rights of a quorum to exercise all the rights and perform all the173
duties of the Commission.174

       (B) The Commission shall do all of the following:175

       (1) Examine and review the existing infrastructure that176
delivers and distributes petroleum products to and within this177
state;178

       (2) Examine the availability of petroleum products, current179
gasoline pricing practices, alternative fuels for motor vehicles,180
and government laws, rules, and regulations that affect the181
supply, delivery, and distribution of petroleum products generally182
and gasoline in particular to and within this state;183

       (3) Conduct hearings on the issues identified in divisions184
(B)(1) and (2) of this section and thereafter formulate and185
recommend a state gasoline policy to ensure both consumer186
confidence in this state's gasoline supply and delivery187
infrastructure and also to ensure a continuing and affordable188
supply of motor vehicle fuel within this state to the benefit of189
all Ohioans.190

       (C) In the discharge of its duties, the Commission has191
authority throughout the state to administer oaths, issue192
subpoenas compelling the attendance of witnesses and testimony,193
and cause the deposition of witnesses residing in the state. In194
case of disobedience on the part of any person to comply with a195
subpoena that the Commission issues, or on the refusal of any196
witness to testify to any matters regarding which the person may197
be lawfully interrogated, it is the duty of the county prosecutor198
in any county, on application of the Commission, to bring a199
proceeding for contempt.200

       (D) The Commission shall issue an interim report to the201
General Assembly not later than ninety days after the effective202
date of this act and thereafter shall issue updated quarterly203
reports. The Commission shall issue a final report during the204
final quarter of 2009. On December 31, 2009, the Commission shall205
cease to exist.206