Store Research

Assembly Bill 433 (Thurman 1981)

Chapter 90, Statutes of 1981 - AB 433

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Assembly Bill 433, as enacted in 1981, affected multiple Business and Professions Code sections, and repealed sections 31013.5 and 31013.6 of the Corporations Code.  (See Exhibit #1e)  Assembly Member John E. Thurman introduced this legislation regarding petroleum franchises on February 5, 1981 at the request of California Agents Alliance.  (See Exhibits #1a; #4, document AP-1; #6, page 1; and #12, document PE-1)

Assembly Bill 433 was assigned to the Assembly Committee on Finance, Insurance, and Commerce and the Senate Committee on Business and Professions where policy issues raised by the bill were considered.  (See Exhibits #3 and #6)  Three amendments were made to Assembly Bill 433.  (See Exhibits #1b through #1d and #2)  Subsequent to legislative approval, Governor Edmund G. Brown, Jr., signed the bill on June 25, 1981 and it was recorded by the Secretary of State on that day as Chapter 90 of the Statutes of 1981.  (See Exhibits #1e and #2)

The Senate Democratic Caucus’s Analysis, dated as the bill was last amended, summarized Assembly Bill 433 as follows


This bill redefines petroleum “franchises” in California statute to include petroleum consignees.  The definitions contained in the bill are nearly identical to those contained in the Federal Petroleum Marketing Practices Act.


In effect, AB 433 extends to petroleum consignees, the ability to bequeath the franchise to an heir, to sell the franchise and to purchase gasoline from sources other than his franchisor.  The existing statutory provisions which govern the conditions of bequest or sale of a franchise and the purchase of gasoline from alternative sources are not substantively changed.


AB 344 contains the following additional provisions:


  1. Requires a franchisor, when intending to withdraw from marketing fuel in a geographical area, to notify the Governor describing the schedule and conditions of the withdrawal


  1. Expands the definition of fuel to include diesel, gasohol and aviation fuel.


  1. Makes corresponding changes to the definition of petroleum franchise in the Corporations Code.

(See Exhibit #8, page 1)