Sec. 4. 10 MRSA §§1676-A and 1676-B are enacted to read:

§1676-A.__Prohibition of sales of motor fuel at retail below cost

Retail motor fuel outlets operating in the State may not sell motor fuel at retail below cost.

§1676-B.__Remedies for selling motor fuel at retail below cost

Notwithstanding the provisions of section 1679, a retail motor fuel outlet in the State that sells motor fuel at retail below cost is subject this section.

1. Injunctive action.__The Attorney General, or a person adversely affected by the sale of motor fuel at retail below cost, may initiate action in Superior Court for an injunction against further violations of section 1676-A. In an action brought under this section, the court may award temporary, preliminary and permanent injunctive relief.__To the extent practicable, an action brought under this section must be advanced on the docket so as to provide the complainant prompt relief.__In an action brought under this section, irreparable harm and injury to the public interest is presumed if the complainant establishes that the defendant sold motor fuel at retail below cost in the State at any time within 20 days of the filing of the complaint.__Unless otherwise ordered by the court, an injunction issued under this section expires 180 days from the date of issuance.__In the event that the defendant sells motor fuel at retail below cost in violation of an injunction issued pursuant to this section, the defendant is subject to a penalty for civil contempt of not less than $5,000 per day for each retail outlet found to have sold motor fuel below cost in violation of the injunction.

2.__Damages.__A person adversely affected by the sale of motor fuel at retail below cost may seek monetary relief from a defendant determined to have violated section 1676-A. This relief may include:

A.__For each day and for each retail outlet in which the defendant sold motor fuel at retail below cost, statutory damages as determined by the Superior Court of no less than $500 and no more than $2,500; or

B.__Compensatory damages for lost gross profit from either reduction in sales or reductions in margins, or both, attributable to the defendant's violation of section 1676-A.

3.__Defenses.__In an action under this section, the complainant shall elect either statutory or compensatory damages no later than the time the case is submitted to Superior Court for verdict or judgment.__In an action for statutory or compensatory damages under this section, it is a defense to damage liability if the defendant proves that:

A.__The defendant did not know, and in the exercise of reasonable care could not have known, that the defendant made sales of motor fuel at retail below cost; or

B.__The defendant's prices, though below cost, were reduced to match the then-currently posted prices of the defendant's competitor.

4. Attorney's fees.__In an action under this section, a prevailing plaintiff is entitled to recover reasonable attorney's fees, expert witness fees and court costs from defendant.

5.__Limitations.__An action for damages under this section may not be instituted for a sale of motor fuel at retail occurring more than 6 months prior to the date of the filing of the complaint.

Sec. 5. 10 MRSA §1682, as enacted by PL 1991, c. 836, §3, is amended to read:

§1682. Rules

The Attorney General may adopt rules necessary to implement this chapter. Rules adopted pursuant to this chapter are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.__The Attorney General's rule-making authority includes making rules for the specification of rack price by alternative means if the Attorney General determines that an alternative method reflects the actual product costs likely to be incurred by retail motor fuel outlets more accurately than the methods established in section 1672, subsection 4-B.

SUMMARY

This bill prohibits the retail sales of motor fuel below cost. It establishes remedies for actions brought under the provisions of the bill. The bill provides for statutory and compensatory damages for a plaintiff bringing a successful action. The bill also defines "rack price" for motor fuels and authorizes the Attorney General to invoke rule-making authority to establish an alternative means of calculating the rack price.