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H 3508

An Act to study gasoline-focused sales-below-cost

194th Legislature (2025-2026) Introduced by Kim Ferguson and 3 co-sponsors

Creates a special commission to study and possibly repeal Massachusetts' gasoline sales-below-cost laws, using econometric analysis, hearings, and a 12-month policy report.

Accompanied a study order, see H5323
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Bill Summary · H 3508

Summary: H.3508 – An Act to study gasoline-focused sales-below-cost

Overview

H.3508 proposes creating a special commission to study the feasibility of eliminating gasoline-focused sales-below-cost (SBC) laws for all gasoline station fuel sales in Massachusetts. The bill directs the commission to evaluate economic impacts and make policy recommendations, including whether to retain, modify, or repeal SBC laws.

Purpose and Intent

  • Establish a dedicated body to determine whether SBC laws should be repealed or reformed, and to assess the associated economic and consumer effects.
  • Use quantitative analysis to understand how SBC laws influence gasoline prices, wholesale costs, and market structure (number of selling outlets).
  • Consider policy options and potential consumer savings, informed by comparisons to states without SBC laws.

Key Provisions

Section 1 – Establishment and Scope

  • Creates a special commission to study the feasibility of eliminating SBC laws for all gasoline fuel sales in the Commonwealth.
  • Requires the commission to quantify effects of SBC laws using econometric analysis, specifically a fixed-effects model with longitudinal/state panel data.
  • Analyses to cover:
    • Weighted average price of unleaded gasoline
    • Wholesale gasoline prices
    • Number of retail gasoline sellers
  • Requires examination of states without SBC laws to gauge potential applicability in Massachusetts.
  • Commission to determine the economic feasibility of repealing SBC laws and consider market concentration, wholesale prices, and retail prices.
  • Recommendations may include retaining the law, adjusting the gasoline price floor, or repealing it entirely. Input from statisticians/econometricians is required.

Section 2 – Commission Composition and Hearings

  • Members shall include:
    • House and Senate chairs of the Joint Committee on Economic Development and Emerging Technologies (co-chairs)
    • Speaker of the House or designee
    • President of the Senate or designee
    • House Minority Leader or designee
    • Senate Minority Leader or designee
    • Four experts with knowledge in economics of industrial organization, consumer welfare, and statistics (appointed by the chairs in consultation with the Federal Reserve Bank of Boston)
  • The commission must conduct at least four public hearings.

Section 3 – Reporting

  • The commission must submit its report and findings, including recommendations, to:
    • House and Senate Ways and Means committees
    • Joint Committee on Economic Development and Emerging Technologies
    • Clerks of the House and Senate
  • Deadline: 12 months after passage.

Timeline and Procedural Status

  • Introduced: February 27, 2025
  • Referred to: Committee on Telecommunications, Utilities and Energy (2/27/2025)
  • Senate concurrence noted (2/27/2025)
  • Hearing updates:
    • Hearing rescheduled to October 16, 2025, with updated end time for the virtual option (original 1:00–1:55 PM; extended to new end time; current schedule shows 1:00 PM–5:00 PM for the day)
  • Related legislation: HD 1314 (the form of this bill in a prior session) is listed as a related matter; this bill is identified as House Docket No. 1314.

Who Is Affected

  • Gasoline retailers and wholesalers operating in Massachusetts
  • Consumers in the Commonwealth (potential price and market effects)
  • Policymakers and state agencies evaluating energy/consumer welfare policy
  • Economists and statisticians involved in the study

Potential Impacts

  • If SBC laws are repealed or modified, possible changes to price floors, competitive dynamics, and consumer prices for gasoline.
  • The study’s findings could inform future regulatory or legislative actions regarding gasoline sales below cost.

Additional Notes

  • This is a study/commission bill, not an immediate policy change.
  • The commission’s recommendations are advisory to the General Court and would require further legislative action.

Compiled from official sources — confirm details with the bill’s official record.

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