House narrowly reauthorizes sales-below-cost fuel law after heated debate

The Utah House voted 41–31 on Feb. 29 to reauthorize the Motor Fuel Marketing Act, a sales-below-cost statute that prohibits fuel retailers from selling at prices intended to drive rivals from the market. Representative Ibsen, sponsor of the reconsideration, said he reopened the bill to allow additional members to speak before the House took a final vote.

Representative Eliason, who said he worked in the oil industry and as a CPA auditor, told the body he favors the reauthorization and submitted an executive summary comparing Minnesota and Wisconsin that he said shows consumer benefits after reimplementation of a sales-below-cost law. Eliason cited a study he distributed saying Minnesota consumers paid ‘‘over 2 cents a gallon’’ more after repeal in one period.

Opponents pressed enforcement questions and long-term effects. Representative Morley and others said many states do not have similar language and that there have been few or no convictions under the law in Utah in 20 years, arguing the law is unnecessary and may protect particular retailers over general market competition. Representative McKay proposed an amendment to shorten the reauthorization period that failed on the floor.

Sponsor Ibsen and other supporters argued the statute has helped keep Utah prices competitive and said enforcement and budget issues could be addressed without repealing the law.

After debate and a failed amendment, the House closed debate and passed HB325 41–31; the bill will be referred to the Senate for further consideration.