AGO 1996-109.

• Case Date: January 25, 1996
• Court: Alabama

Alabama Attorney General Opinions 1996. AGO 1996-109. 1996-109January 25, 1996Honorable Billy R. Weathington, Jr. Attorney, St. Clair County Commission Weathington & Associates, P.C. 819 Parkway Drive S.E. Leeds, AL 35094 Counties - Competitive Bid Law - Motor Fuel Marketing Act - Gasoline Discount off of retail price of gasoline sold to county under competitive bid per _ 41-16-50 does not violate Motor Fuel Marketing Act, __ 8-22-1, et seq., Code.Dear Mr. Weathington: This opinion is issued in response to your request for an opinion from the Attorney General. QUESTION Is a discount off of the pump price of gasoline pursuant to a bid to provide gasoline for county vehicles prohibited by the Motor Fuel Marketing Act? FACTS, LAW AND ANALYSIS The St. Clair County Commission recently issued an invitation for bids to supply gasoline for vehicles belonging to the Sheriff's Department. A vendor has raised the question of whether a percentage discount off of the pump price may be in violation of the provisions of the Motor Fuel Marketing Act, __ 8-22-1, et seq., Code of Alabama 1975. We begin with the requirement that any expenditure by the county for the purchase of supplies, which would include the purchase of gasoline, involving $7,500 or more must be under a contractual agreement entered into by competitive bidding. Section 41-16-50, Code of Alabama 1975, as last amended. It appears that the question arises because of the provisions of __ 8-22-3 and 8-22-6, Code, supra. In pertinent part, these sections provide: Section 8-22-3. "It is hereby declared that marketing of motor fuel in Alabama is affected with the public interest. It is hereby declared to be the legislative intent to encourage fair and honest competition, and to safeguard the public against creation of monopolies or unfair methods of competition, in transactions involving the sale of, or offer to sell, or inducement to sell motor fuel in the wholesale and retail trades in this state. It is further declared that the advertising, offering for sale, or sale of motor fuel below cost or at a cost lower than charged other persons on the same marketing...