1.1 	A bill for an act
1.2 	relating to commerce; regulating motor fuel franchises; providing an exemption 
1.3 	from certain regulation;amending Minnesota Statutes 2004, section 80C.01, 
1.4 	subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 80C.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 80C.01, subdivision 4, is amended to read:
1.7 		Subd. 4.Franchise. (a) "Franchise" means (1) a contract or agreement, either 
1.8 	express or implied, whether oral or written, for a definite or indefinite period, between 
1.9 	two or more persons:
1.10 	(i) by which a franchisee is granted the right to engage in the business of offering or 
1.11 	distributing goods or services using the franchisor's trade name, trademark, service mark, 
1.12 	logotype, advertising, or other commercial symbol or related characteristics;
1.13 	(ii) in which the franchisor and franchisee have a community of interest in the 
1.14 	marketing of goods or services at wholesale, retail, by lease, agreement, or otherwise; and
1.15 	(iii) for which the franchisee pays, directly or indirectly, a franchise fee; or
1.16 	(2) a contract, lease, or other agreement, either express or implied, whether oral or 
1.17 	written, for a definite or indefinite period, between two or more persons, whereby the 
1.18 	franchisee is authorized, permitted, or granted the right to market motor vehicle fuel at 
1.19 	retail under the franchisor's trade name, trademark, service mark, logotype, or other 
1.20 	commercial symbol or related characteristics owned or controlled by the franchisor; or
1.21 	(3) the sale or lease of any products, equipment, chattels, supplies, or services to the 
1.22 	purchaser, other than the sale of sales demonstration equipment, materials or samples for a 
1.23 	total price of $500 or less to any one person, for the purpose of enabling the purchaser 
1.24 	to start a business and in which the seller:
2.1 	(i) represents that the seller, lessor, or an affiliate thereof will provide locations or 
2.2 	assist the purchaser in finding locations for the use or operation of vending machines, 
2.3 	racks, display cases, or similar devices, or currency operated amusement machines or 
2.4 	devices, on premises neither owned or leased by the purchaser or seller; or
2.5 	(ii) represents that the seller will purchase any or all products made, produced, 
2.6 	fabricated, grown, bred, or modified by the purchaser using, in whole or in part, the 
2.7 	supplies, services, or chattels sold to the purchaser; or
2.8 	(iii) guarantees that the purchaser will derive income from the business which 
2.9 	exceeds the price paid to the seller; or
2.10 	(4) an oral or written contract or agreement, either expressed or implied, for a 
2.11 	definite or indefinite period, between two or more persons, under which a manufacturer, 
2.12 	selling security systems through dealers or distributors in this state, requires regular 
2.13 	payments from the distributor or dealer as royalties or residuals for products purchased 
2.14 	and paid for by the dealer or distributor.
2.15 	(b) "Franchise" does not include any business which is operated under a lease or 
2.16 	license on the premises of the lessor or licensor as long as such business is incidental to 
2.17 	the business conducted by the lessor or licensor on such premises, including, without 
2.18 	limitation, leased departments, licensed departments, and concessions.
2.19 	(c) "Franchise" does not include any contract, lease or other agreement whereby the 
2.20 	franchisee is required to pay less than $100 on an annual basis, except those franchises 
2.21 	identified in paragraph (a), clause (2).
2.22 	(d) "Franchise" does not include a contract, lease or other agreement between a new 
2.23 	motor vehicle manufacturer, distributor, or factory branch and a franchisee whereby the 
2.24 	franchisee is granted the right to market automobiles, motorcycles, trucks, truck-tractors, 
2.25 	or self-propelled motor homes or campers if the foregoing are designed primarily for the 
2.26 	transportation of persons or property on public highways.
2.27 	(e) "Franchise" does not include a contract, lease, or other agreement or arrangement 
2.28 	between two or more air carriers, or between one or more air carriers and one or more 
2.29 	foreign air carriers. The terms "air carrier" and "foreign air carrier" shall have the 
2.30 	meanings assigned to them by the Federal Aviation Act, United States Code Appendix, 
2.31 	title 49, sections 1301(3) and 1301(22), respectively.
2.32 	(f) "Franchise" does not include the marketing of motor vehicle fuel in circumstances 
2.33 	where all the following are present:
2.34 	(1) the franchisor or an affiliate of the franchisor is not a refiner of motor vehicle 
2.35 	fuel, diesel fuel, or gasoline;
3.1 	(2) the franchisor's tradename, trademark, service mark, logotype, or other 
3.2 	commercial symbol or related characteristics is not used to identify the marketing 
3.3 	premises generally, unless otherwise agreed to, but only the gasoline dispensers, canopy, 
3.4 	and gasoline price signage;
3.5 	(3) the franchisor does not impose any requirements, unless otherwise agreed to or 
3.6 	franchise fee on nonmotor vehicle fuel products or sales; and
3.7 	(4) the facility is not leased from the franchisor or affiliate of the franchisor. 
3.8 	Nothing in this paragraph is intended to interfere with the motor fuel marketing agreement 
3.9 	as agreed to by the franchisor and franchisee.
3.10 	(f)(g)  For purposes of this chapter, a person who sells motor vehicle fuel at wholesale 
3.11 	who does not own or control, or is not an affiliate of a person who owns or controls, the 
3.12 	trademark, trade name, service mark, logotype, or other commercial symbol or related 
3.13 	characteristics under which the motor vehicle fuel is sold at retail, is not a franchisor or a 
3.14 	franchisee, and is not considered to be part of a franchise relationship.

3.15 	Sec. 2. [80C.144] EXEMPT MOTOR FUEL FRANCHISES; ALTERNATIVE 
3.16 	COMPLIANCE.
3.17 	A motor fuel franchise exempt from regulation under this chapter pursuant to section 
3.18 	80C.01, subdivision 4, paragraph (f), is subject to regulation under chapter 80F.