HB581 (2011) Detail

Regulating guaranteed price plans and prepaid contracts for petroleum.


HB 581 – AS INTRODUCED

2011 SESSION

11-0494

05/04

HOUSE BILL 581

AN ACT regulating guaranteed price plans and prepaid contracts for petroleum.

SPONSORS: Rep. Marshall Quandt, Rock 13; Rep. Weyler, Rock 8; Rep. Matt Quandt, Rock 13; Rep. Shuler, Rock 11; Rep. Serlin, Rock 16; Sen. Carson, Dist 14

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill clarifies requirements for futures contracts obtained by dealers to ensure adequate supply and solvency before offering prepaid contracts for heating oil, kerosene, or liquefied petroleum gas to consumers.

This bill is a request of the department of justice.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

11-0494

05/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT regulating guaranteed price plans and prepaid contracts for petroleum.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Requirements for Guaranteed Price Plans and Prepaid Contract for Petroleum; Futures Contracts Held By Dealers. RSA 339:79, IV(a) is repealed and reenacted to read as follows:

(a) A firm commitment in the form of one or more futures contracts obligating the dealer to take delivery of heating oil, kerosene, or liquefied petroleum gas in an amount and at a price certain, in a volume not less than 100 percent of the maximum number of gallons that the dealer is committed to deliver pursuant to all prepaid contracts entered into by the dealer. A futures contract shall include each of the following terms: the volume of heating oil, kerosene, or liquefied petroleum gas that the dealer shall purchase from its distributor; the date upon which the dealer shall take delivery of the product or products; and the amount the dealer is obligated to pay for the product or products. All futures contracts shall be in place within 7 days of the close of the period during which the dealer allows its customers to purchase the heating oil, kerosene, or liquefied petroleum gas using prepaid contracts. This requirement shall not be satisfied by an options contract or other contract or arrangement that enables the dealer to avoid the purchase of the heating oil, kerosene, or liquefied petroleum gas in the volume, at the price, and on the date contracted for. Any dealer who sells heating oil, kerosene, or liquefied petroleum gas in advance of the heating season and who secures its supply thereof using futures contracts pursuant to this paragraph shall, prior to entering into prepaid contracts with customers, establish an escrow account, naming the state of New Hampshire, office of the attorney general as sole beneficiary, at a financial institution within the state of New Hampshire identifying that institution as escrow agent. Once established and throughout the heating season, this escrow account shall hold funds equivalent to 75 percent of the price of the heating oil, kerosene, or liquefied petroleum gas to be purchased via the outstanding futures contracts for the upcoming heating season;

2 Effective Date. This act shall take effect January 1, 2012.

Links

HB581 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB581 Revision: 19507 Date: Jan. 28, 2011, midnight

Docket