An Act To Protect Consumers by Strengthening the Laws Governing Prepaid Home Heating Oil Contracts

Emergency preamble. Whereas,  acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas,  several home heating oil retailers have abruptly closed their businesses; and

Whereas,  many customers of these retailers were owed heating oil and were left without a refund or the oil, and the current laws have been unable to sufficiently protect these customers; and

Whereas,  in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Sec. 1. 10 MRSA §1110, sub-§§1-A and 1-B  are enacted to read:

Sec. 2. 10 MRSA §1110, sub-§§6 to 9  are enacted to read:

Sec. 3. Appropriations and allocations. The following appropriations and allocations are made.

PROFESSIONAL AND FINANCIAL REGULATION, DEPARTMENT OF

Administrative Services - Professional and Financial Regulation 0094

Initiative: Allocates one-time funds to reconfigure the licensing system to accommodate the registration of fuel dealers who offer prepaid contracts to residents of the State.

OTHER SPECIAL REVENUE FUNDS	2011-12	2012-13
All Other	$12,000	$0
OTHER SPECIAL REVENUE FUNDS TOTAL	$12,000	$0

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

SUMMARY

This bill is reported out by the Joint Standing Committee on Labor, Commerce, Research and Economic Development pursuant to Resolve 2011, chapter 79. It requires a dealer who offers prepaid contracts for home heating oil, kerosene or liquefied petroleum gas to residents of this State to register the dealer’s intent to offer such contracts with the Commissioner of Professional and Financial Regulation by June 30th of each year and pay a fee of $100 to be used by the commissioner in administering the laws regarding such contracts. It requires such a dealer to file a report with the commissioner by October 31st of each year demonstrating compliance.

The bill requires that the annual report be made on a form provided by the commissioner and that the form conspicuously bear notice that a false statement made on the form is punishable as a Class D crime. The report must be signed by the dealer, or, if the dealer is a corporation, the report must be signed by either the president or an officer of the corporation and include a list of all of the members of the board of directors of the corporation. There is no fee for the annual report. The bill also requires the commissioner to refer to the Attorney General for prosecution any registered dealer who fails to provide the required report or who makes a false statement on the required report. The bill provides that a violation of any of the requirements of the Maine Revised Statutes, Title 10, section 1110 is a violation of the Maine Unfair Trade Practices Act. The bill includes an appropriations and allocations section.