SENATE BILL No. 519

 

 

May 27, 2003, Introduced by Senators SCHAUER, PRUSI, CLARK-COLEMAN, BASHAM, JELINEK, CROPSEY, LELAND, BARCIA, GEORGE, McMANUS, STAMAS, GARCIA and THOMAS and referred to the Committee on Commerce and Labor.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to prevent certain unfair methods of competition and                       

                                                                                

    pricing practices in the distribution of motor fuel; to prescribe           

                                                                                

    powers and duties of certain state officers and agencies and the            

                                                                                

    courts; and to provide remedies, fines, and penalties for                   

                                                                                

    violations of this act.                                                     

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 1.  This act shall be known and may be cited as the                    

                                                                                

2   "petroleum marketing stabilization act".                                    

                                                                                

3       Sec. 2.  As used in this act:                                               

                                                                                

4       (a) "Affiliate" means a person who controls, is controlled                  

                                                                                

5   by, or is under common control with, any other person, other than           

                                                                                

6   by means of a franchise.  The term also includes a person in a              

                                                                                

7   business relationship with any other person related to the retail           

                                                                                

8   sale of motor fuel.                                                         

                                                                                

9       (b) "Average posted terminal price" means the average posted                

                                                                                


                                                                                

1   rack price, by grade of motor fuel, as published by a petroleum             

                                                                                

2   price reporting service, at which motor fuel is offered for sale            

                                                                                

3   at the close of business on the determination date by all                   

                                                                                

4   refiners, suppliers, and wholesalers of motor vehicle fuel at a             

                                                                                

5   terminal, plus any excise, sales, or use taxes imposed on the               

                                                                                

6   motor fuel or on its sale, any cost incurred for transportation,            

                                                                                

7   and any other fees or charges that are not otherwise included in            

                                                                                

8   the average posted rack price.  As used in this subdivision,                

                                                                                

9   "average" means the arithmetic mean.                                        

                                                                                

10      (c) "Basic cost" means the lesser of the invoice cost to a                  

                                                                                

11  retailer, or the lowest replacement cost to the retailer within 5           

                                                                                

12  days before the date of sale, in the quantity last purchased                

                                                                                

13  either within or before that 5-day period, less customary                   

                                                                                

14  discounts for cash, plus the full value of any freight costs, and           

                                                                                

15  taxes, if not already included in the invoice cost to the                   

                                                                                

16  retailer.                                                                   

                                                                                

17      (d) "Competition" includes a person who competes with another               

                                                                                

18  person for retail sales of motor fuel in the same market area.              

                                                                                

19      (e) "Cost of doing business component" means an amount                      

                                                                                

20  intended to cover a proportionate part of the cost of doing                 

                                                                                

21  business at a retail location or unattended location.                       

                                                                                

22      (f) "Customary discount for cash" includes an allowance made                

                                                                                

23  to a retailer when the retailer pays for motor fuel within a                

                                                                                

24  limited or specified time.                                                  

                                                                                

25      (g) "Determination date" means 1 of the following:                          

                                                                                

26                                                                               (i) If a retailer sells motor fuel on a day other than the                          

                                                                                

27  day on which the retailer last purchased any motor fuel and the             


                                                                                

1   sale of the motor fuel by the retailer occurs no later than 10              

                                                                                

2   days after its last purchase by the retailer, either the day                

                                                                                

3   preceding the day of the sale of motor fuel by the retailer or              

                                                                                

4   the day on which motor fuel was last purchased by the retailer,             

                                                                                

5   as selected by the retailer.                                                

                                                                                

6       (ii) If subparagraph (i) does not apply, the day preceding                   

                                                                                

7   the day of the sale at retail of motor fuel.                                

                                                                                

8       (h) "Existing price of a competitor" means a lawful price                   

                                                                                

9   that is simultaneously offered to a buyer for motor fuel of like            

                                                                                

10  quality and quantity by a person who is a competitor of the                 

                                                                                

11  retailer and from whom the buyer can practicably purchase the               

                                                                                

12  motor fuel.                                                                 

                                                                                

13      (i) "Invoice" means either of the following:                                

                                                                                

14                                                                               (i) A document issued by a refiner or supplier to a                                 

                                                                                

15  wholesaler or retailer evidencing a sale of motor fuel that                 

                                                                                

16  contains the invoice cost of the motor fuel.                                

                                                                                

17      (ii) A document issued by a wholesaler to a retailer                         

                                                                                

18  evidencing a sale of motor fuel that contains the invoice cost of           

                                                                                

19  the motor fuel from an invoice issued by a refiner or supplier.             

                                                                                

20      (j) "Invoice cost" means 1 of the following:                                

                                                                                

21                                                                               (i) For a sale of motor fuel from a refiner or supplier to a                        

                                                                                

22  wholesaler or retailer, either the sale price shown on the                  

                                                                                

23  invoice from the refiner or supplier to the wholesaler or                   

                                                                                

24  retailer, or the price generally available from the refiner or              

                                                                                

25  supplier to wholesalers and retailers who are not its affiliates            

                                                                                

26  from a terminal at which the refiner or supplier sells or offers            

                                                                                

27  to sell motor fuel to wholesalers and retailers who are not its             


                                                                                

1   affiliates, whichever is greater.                                           

                                                                                

2       (ii) For a sale of motor fuel by a wholesaler to a retailer,                 

                                                                                

3   either the sale price shown on the invoice from the wholesaler to           

                                                                                

4   the retailer, or the price the wholesaler paid the refiner or               

                                                                                

5   supplier for that motor fuel, whichever is greater.                         

                                                                                

6       (k) "Maximum cost of doing business component" means 3 times                

                                                                                

7   the cost of doing business component.                                       

                                                                                

8                                                                                (l) "Maximum selling price" or "maximum sales price" means                          

                                                                                

9   the retail sales price measured as the retailer cost, applying              

                                                                                

10  the maximum cost of doing business component.                               

                                                                                

11      (m) "Motor fuel" means that term as defined in section 4 of                 

                                                                                

12  the motor fuel tax act, 2000 PA 403, MCL 207.1004.                          

                                                                                

13      Sec. 3.  As used in this act:                                               

                                                                                

14      (a) "Person" means an individual, partnership, corporation,                 

                                                                                

15  association, limited liability company, governmental entity, or             

                                                                                

16  other legal entity.                                                         

                                                                                

17      (b) "Petroleum price reporting service" means a wholesale                   

                                                                                

18  petroleum product price reporting service that is recognized                

                                                                                

19  nationwide.                                                                 

                                                                                

20      (c) "Rack" means a mechanism for delivering motor fuel from a               

                                                                                

21  refinery, terminal, or marine vessel into a railroad tank car, a            

                                                                                

22  transport truck, a tank wagon, the fuel supply tank of a marine             

                                                                                

23  vessel, or other means of transfer outside of the bulk                      

                                                                                

24  transfer/terminal system.                                                   

                                                                                

25      (d) "Refiner" means that term as defined in section 5 of the                

                                                                                

26  motor fuel tax act, 2000 PA 403, MCL 207.1005.                              

                                                                                

27      (e) "Replacement cost" means the cost at which a retailer                   


                                                                                

1   could have purchased motor fuel on the determination date if                

                                                                                

2   purchased in the same quantity as the retailer's last purchase of           

                                                                                

3   motor fuel.                                                                 

                                                                                

4       (f) "Retail location" means a location where a retailer sells               

                                                                                

5   motor fuel and where the presence of an attendant at the time of            

                                                                                

6   a sale is required by law.                                                  

                                                                                

7       (g) "Retailer" means a person that meets all of the                         

                                                                                

8   following:                                                                  

                                                                                

9                                                                                (i) Maintains a storage facility for motor fuel.                                    

                                                                                

10      (ii) Sells motor fuel at a retail location that sells only to                

                                                                                

11  members, at any other retail location, or at an unattended                  

                                                                                

12  location.                                                                   

                                                                                

13      (iii) Sells motor fuel to the end user of the motor fuel.                    

                                                                                

14      (h) "Retailer cost" means 1 of the following:                               

                                                                                

15                                                                               (i) In a retail sale of motor fuel by a retailer at a retail                        

                                                                                

16  location, the lesser of the following:                                      

                                                                                

17      (A) The invoice cost of the motor fuel to the retailer on the               

                                                                                

18  determination date or the replacement cost of the motor fuel on             

                                                                                

19  the determination date, whichever is lower, less customary                  

                                                                                

20  discounts for cash, plus any excise, sales, or use taxes imposed            

                                                                                

21  on the motor fuel or on its sale and any cost incurred for                  

                                                                                

22  transportation and any other fees or charges not otherwise                  

                                                                                

23  included in the invoice cost or the replacement cost of the motor           

                                                                                

24  fuel, plus a cost of doing business component of 13.38 cents per            

                                                                                

25  gallon of motor fuel.                                                       

                                                                                

26      (B) The average posted terminal price on the determination                  

                                                                                

27  date at the terminal located closest to the retailer, plus a cost           


                                                                                

1   of doing business component of 13.38 cents per gallon of motor              

                                                                                

2   fuel.                                                                       

                                                                                

3       (ii) In a retail sale of motor fuel by a retailer at an                      

                                                                                

4   unattended location, the lesser of the following:                           

                                                                                

5       (A) The invoice cost of the motor fuel to the retailer on the               

                                                                                

6   determination date or the replacement cost of the motor fuel on             

                                                                                

7   the determination date, whichever is lower, less customary                  

                                                                                

8   discounts for cash, plus any excise, sales, or use taxes imposed            

                                                                                

9   on the motor fuel or on its sale and any cost incurred for                  

                                                                                

10  transportation and any other fees or charges not otherwise                  

                                                                                

11  included in the invoice cost or the replacement cost of the motor           

                                                                                

12  fuel, plus a cost of doing business component of 6.4 cents per              

                                                                                

13  gallon of motor fuel.                                                       

                                                                                

14      (B) The average posted terminal price on the determination                  

                                                                                

15  date at the terminal located closest to the retailer, plus a cost           

                                                                                

16  of doing business component of 6.4 cents per gallon of motor                

                                                                                

17  fuel.                                                                       

                                                                                

18      Sec. 4.  As used in this act:                                               

                                                                                

19      (a) "Sell", "sale", or "sold" means a transfer of property                  

                                                                                

20  for any consideration.  The term includes an advertising or offer           

                                                                                

21  to sell or any transfer of property where title is retained by              

                                                                                

22  the retailer as security for the payment of the purchase price.             

                                                                                

23  In determining a selling price of motor fuel by a retailer under            

                                                                                

24  this act, all fractions of a cent shall be carried to the next              

                                                                                

25  full cent.                                                                  

                                                                                

26      (b) "Sell at retail", "sale at retail", and "retail sale"                   

                                                                                

27  mean a transfer for a valuable consideration, made in the                   


                                                                                

1   ordinary course of trade or in the usual conduct of a retailer's            

                                                                                

2   business, of title to tangible personal property to a purchaser             

                                                                                

3   for consumption or use other than resale or further processing or           

                                                                                

4   manufacturing.                                                              

                                                                                

5       (c) "Supplier" means that term as defined in section 5 of the               

                                                                                

6   motor fuel tax act, 2000 PA 403, MCL 207.1005.                              

                                                                                

7       (d) "Terminal" means a motor fuel storage and distribution                  

                                                                                

8   facility that is supplied by a pipeline or marine vessel, from              

                                                                                

9   which motor fuel may be removed at a rack.  If 2 or more                    

                                                                                

10  terminals are included in the same geographic area by a petroleum           

                                                                                

11  price reporting service, they are considered 1 terminal for                 

                                                                                

12  purposes of this act.                                                       

                                                                                

13      (e) "Unattended location" means a location where a retailer                 

                                                                                

14  sells motor fuel and where the presence of an attendant at the              

                                                                                

15  time of a sale is not required by law.                                      

                                                                                

16      (f) "Wholesaler" means that term as defined in section 6 of                 

                                                                                

17  the motor fuel tax act, 2000 PA 403, MCL 207.1006.                          

                                                                                

18      Sec. 5.  (1) Except as provided in subsection (2), a                        

                                                                                

19  retailer engaged in commerce in this state shall not sell or                

                                                                                

20  offer to sell motor fuel below retailer cost at a retail location           

                                                                                

21  or unattended location.                                                     

                                                                                

22      (2) It is not a violation of subsection (1) to establish a                  

                                                                                

23  sale price for motor fuel in good faith to meet an equally low              

                                                                                

24  lawful price of a competitor that is subject to this act, located           

                                                                                

25  in the same market area, and selling the same or a similar                  

                                                                                

26  product of like grade and quality.                                          

                                                                                

27      Sec. 6.  A retailer engaged in commerce in this state shall                 


                                                                                

1   not sell or offer to sell motor fuel for a price above the                  

                                                                                

2   maximum sale price at a retail location or unattended location.             

                                                                                

3       Sec. 7.  A retailer shall not offer a rebate, offer to give                 

                                                                                

4   a rebate, or offer a concession of any kind in connection with a            

                                                                                

5   sale of motor fuel at a retail location or at an unattended                 

                                                                                

6   location if the resulting sale price is below retailer cost.                

                                                                                

7       Sec. 8.  A retailer or an affiliate of a retailer shall not                 

                                                                                

8   engage in an advertisement, offer for sale, or sale involving               

                                                                                

9   motor fuel and 1 or more other items at a combined price, or an             

                                                                                

10  advertisement, offer of sale, or sale involving the giving of a             

                                                                                

11  coupon, gift, or concession of any kind, if the combined selling            

                                                                                

12  price is below the retailer cost of the motor fuel and the basic            

                                                                                

13  cost of each article, product, commodity, gift, and concession              

                                                                                

14  included in the transaction.                                                

                                                                                

15      Sec. 9.  This act does not apply to a retail sale of motor                  

                                                                                

16  fuel that meets any of the following:                                       

                                                                                

17      (a) It is made in an isolated transaction that is not in the                

                                                                                

18  usual course of business.                                                   

                                                                                

19      (b) Motor fuel is advertised, offered for sale, or sold in a                

                                                                                

20  bona fide clearance sale for the purpose of discontinuing trade             

                                                                                

21  in that motor fuel, and both of the following are met:                      

                                                                                

22                                                                               (i) The advertising, offer to sell, or sale states the reason                       

                                                                                

23  for the sale and the quantity of the motor fuel available for               

                                                                                

24  sale.                                                                       

                                                                                

25      (ii) The motor fuel is kept separate from other motor fuel                   

                                                                                

26  stocks, and clearly and legibly marked with the reason for the              

                                                                                

27  sale.                                                                       


                                                                                

1       (c) Motor fuel is advertised, offered for sale, or sold as                  

                                                                                

2   imperfect or damaged, and both of the following are met:                    

                                                                                

3                                                                                (i) The advertising, offer of sale, or sale states the reason                       

                                                                                

4   for the sale and the quantity of motor fuel available for sale.             

                                                                                

5       (ii) The motor fuel is kept separate from other motor fuel                   

                                                                                

6   stocks and clearly and legibly marked with the reason for the               

                                                                                

7   sale.                                                                       

                                                                                

8       (d) Motor fuel is sold as part of the final liquidation of a                

                                                                                

9   business.                                                                   

                                                                                

10      (e) Motor fuel is advertised, offered for sale, or sold by a                

                                                                                

11  fiduciary under the order or direction of a court.                          

                                                                                

12      (f) Motor fuel is advertised, offered for sale, or sold                     

                                                                                

13  during a grand opening to introduce a new or remodeled retail               

                                                                                

14  location if the grand opening meets both of the following:                  

                                                                                

15                                                                               (i) Is held for 3 days or less.                                                     

                                                                                

16      (ii) Is held within 60 days after the new or remodeled retail                

                                                                                

17  location begins operations.                                                 

                                                                                

18      Sec. 10.  An express or implied agreement that violates this                

                                                                                

19  act is void and unenforceable.                                              

                                                                                

20      Sec. 11.  An action for violation of this act shall be                      

                                                                                

21  brought in a circuit court where venue is proper without regard             

                                                                                

22  to the amount in controversy.                                               

                                                                                

23      Sec. 12.  (1) If the attorney general or a prosecuting                      

                                                                                

24  attorney has reasonable cause to believe that a person has                  

                                                                                

25  information or is in possession, custody, or control of any                 

                                                                                

26  document or other tangible object relevant to an investigation              

                                                                                

27  for violation of this act, the attorney general or a prosecuting            


                                                                                

1   attorney, with the permission of, or at the request of, the                 

                                                                                

2   attorney general, may serve upon the person, before bringing any            

                                                                                

3   action in the circuit court, a written demand to appear and be              

                                                                                

4   examined under oath, and to produce the document or object for              

                                                                                

5   inspection and copying.  The demand shall include all of the                

                                                                                

6   following:                                                                  

                                                                                

7       (a) Be served upon the person in the manner required for                    

                                                                                

8   service of process in this state.                                           

                                                                                

9       (b) Describe the nature of the conduct constituting the                     

                                                                                

10  violation under investigation.                                              

                                                                                

11      (c) Describe the document or object with sufficient                         

                                                                                

12  definiteness to permit it to be fairly identified.                          

                                                                                

13      (d) If demanded, contain a copy of the written                              

                                                                                

14  interrogatories.                                                            

                                                                                

15      (e) Prescribe a reasonable time at which the person must                    

                                                                                

16  appear to testify, within which to answer the written                       

                                                                                

17  interrogatories, and within which the document or object must be            

                                                                                

18  produced, and advise the person that objections to or reasons for           

                                                                                

19  not complying with the demand may be filed with the attorney                

                                                                                

20  general or prosecuting attorney, with the permission of, or at              

                                                                                

21  the request of, the attorney general, on or before that time.               

                                                                                

22      (f) Specify a place for the taking of testimony or for                      

                                                                                

23  production within the county in which the person resides or                 

                                                                                

24  maintains a principal place of business in this state and                   

                                                                                

25  designate the person who shall be custodian of the document or              

                                                                                

26  object.                                                                     

                                                                                

27      (g) Contain a copy of subsection (2).                                       


                                                                                

1       (2) If a person objects to or otherwise fails to comply with                

                                                                                

2   the written demand served upon him or her under subsection (1),             

                                                                                

3   the attorney general or a prosecuting attorney, with the                    

                                                                                

4   permission of, or at the request of, the attorney general, may              

                                                                                

5   file in the circuit court in the county in which the person                 

                                                                                

6   resides or in which the person maintains a principal place of               

                                                                                

7   business within this state an action to enforce the demand.                 

                                                                                

8   Notice of hearing the action and a copy of all pleadings shall be           

                                                                                

9   served upon the person, who may appear in opposition.  If the               

                                                                                

10  court finds that the demand is proper, that there is reasonable             

                                                                                

11  cause to believe that there may have been or is presently                   

                                                                                

12  occurring a violation of this act, and that the information                 

                                                                                

13  sought or document or object demanded is relevant to the                    

                                                                                

14  investigation, the court shall order the person to comply with              

                                                                                

15  the demand, subject to modification the court may prescribe.                

                                                                                

16  Upon motion by the person and for good cause shown, the court may           

                                                                                

17  make any further order in the proceedings that justice requires             

                                                                                

18  to protect the person from unreasonable annoyance, embarrassment,           

                                                                                

19  oppression, burden, or expense.                                             

                                                                                

20      (3) Any procedure, testimony taken, or material produced                    

                                                                                

21  shall be kept confidential by the attorney general or a                     

                                                                                

22  prosecuting attorney before bringing an action against a person             

                                                                                

23  under this act for the violation under investigation, unless                

                                                                                

24  confidentiality is waived by the person being investigated and              

                                                                                

25  the person who has testified, answered interrogatories, or                  

                                                                                

26  produced material, or disclosure is authorized by the court.                

                                                                                

27      Sec. 13.  The attorney general or a prosecuting attorney,                   


                                                                                

1   with the permission of, or at the request of, the attorney                  

                                                                                

2   general, may bring an action for appropriate injunctive or other            

                                                                                

3   equitable relief and civil penalties in the name of the state for           

                                                                                

4   a violation of this act.  The court may assess for benefit of the           

                                                                                

5   state a civil penalty of not more than $2,500.00 for each                   

                                                                                

6   violation of this act, subject to a maximum of $10,000.00 per day           

                                                                                

7   if multiple sales violations occur during any 1 day.                        

                                                                                

8       Sec. 14.  Any person threatened with injury or injured                      

                                                                                

9   directly or indirectly in his or her business or property by a              

                                                                                

10  violation of this act may bring an action for appropriate                   

                                                                                

11  injunctive or other equitable relief, 3 times the amount of                 

                                                                                

12  actual damages sustained by reason of a violation of this act,              

                                                                                

13  interest on the damages from the date of the complaint, taxable             

                                                                                

14  costs, and actual attorney fees.  All of the following apply to             

                                                                                

15  an action under this section:                                               

                                                                                

16      (a) The court shall grant the equitable relief it determines                

                                                                                

17  is necessary to remedy the effects of any violation of this act,            

                                                                                

18  which may include a declaratory judgment, mandatory or                      

                                                                                

19  prohibitive injunctive relief, and interim equitable relief.                

                                                                                

20      (b) The court shall grant a temporary restraining order and                 

                                                                                

21  preliminary injunction if the plaintiff shows that all of the               

                                                                                

22  following are met:                                                          

                                                                                

23                                                                               (i) There is reasonable cause to believe that a violation of                        

                                                                                

24  the act has occurred.                                                       

                                                                                

25      (ii) There exist sufficiently serious questions going to the                 

                                                                                

26  merits to make those questions a fair ground for litigation.                

                                                                                

27      (iii) The court determines that, on balance, the hardships                   


                                                                                

1   imposed upon the defendant by the issuance of a temporary                   

                                                                                

2   restraining order or preliminary injunction will be less than the           

                                                                                

3   hardship that would be imposed upon the plaintiff in the absence            

                                                                                

4   of that relief.                                                             

                                                                                

5       (c) If the action seeks injunctive or other equitable relief,               

                                                                                

6   the court shall not require the plaintiff to provide a bond.                

                                                                                

7       (d) If the action seeks injunctive or other equitable relief,               

                                                                                

8   it is not a defense that the plaintiff's injury or threatened               

                                                                                

9   injury may be adequately remedied by an award of damages.                   

                                                                                

10      Sec. 15.  A person who knowingly prepares a false invoice or                

                                                                                

11  causes a false invoice to be prepared or knowingly submits false            

                                                                                

12  information in response to a demand issued under section 12 of              

                                                                                

13  this act is guilty of a misdemeanor punishable by imprisonment of           

                                                                                

14  not more than 6 months or a fine of not more than $500.00, or               

                                                                                

15  both.                                                                       

                                                                                

16      Sec. 16.  A final judgment or decree determining that a                     

                                                                                

17  person has violated this act in an action brought by the state              

                                                                                

18  under section 13, other than a consent judgment or decree entered           

                                                                                

19  before any testimony has been taken, is prima facie evidence                

                                                                                

20  against the person in any other action against the person under             

                                                                                

21  section 14 as to all matters with respect to which the judgment             

                                                                                

22  or decree would be an estoppel between the parties to the                   

                                                                                

23  action.                                                                     

                                                                                

24      Sec. 17.  (1) An action under section 13 or 14 is barred if                 

                                                                                

25  not commenced within 1 year after the claim for relief or cause             

                                                                                

26  of action accrues.                                                          

                                                                                

27      (2) An action to recover damages under section 14 is barred                 


                                                                                

1   if not commenced within 1 year after the claim for relief or                

                                                                                

2   cause of action accrues, or within 1 year after the conclusion of           

                                                                                

3   any timely action brought by the state under section 13 which is            

                                                                                

4   based in whole or in part on any matter complained of in the                

                                                                                

5   action for damages, whichever is later.                                     

                                                                                

6       Sec. 18.  The remedies provided in this act are cumulative                  

                                                                                

7   and in addition to any other remedy available under state law.              

                                                                                

8       Sec. 19.  If a witness has been or may be called to testify                 

                                                                                

9   or provide other information at any proceeding relating to or               

                                                                                

10  under this act, the circuit court for the county in which the               

                                                                                

11  proceeding is or may be held may issue, upon application of the             

                                                                                

12  attorney general or a prosecuting attorney, with the permission             

                                                                                

13  of, or at the request of, the attorney general, which asserts               

                                                                                

14  that in his or her judgment the testimony or other information              

                                                                                

15  may be necessary to the public interest and the witness has or is           

                                                                                

16  likely to refuse to testify, an order requiring the witness to              

                                                                                

17  give testimony or provide other information which the witness               

                                                                                

18  refuses to give or provide on the basis of the privilege against            

                                                                                

19  self-incrimination, if the court provides in its order that the             

                                                                                

20  witness shall not be prosecuted or subjected to any penalty or              

                                                                                

21  forfeiture for, or on account of, any transaction, occurrence,              

                                                                                

22  matter, or thing to which the witness testifies or provides other           

                                                                                

23  information or evidence, documentary or otherwise, and that the             

                                                                                

24  testimony, information, or evidence shall not be used against the           

                                                                                

25  witness, in any criminal investigation, proceeding, or trial,               

                                                                                

26  except a prosecution for perjury for giving a false statement or            

                                                                                

27  for otherwise failing to comply with the order.