S1047-2013 Actions

• Jan 9, 2013: REFERRED TO CONSUMER PROTECTION

S1047-2013 Memo

BILL NUMBER:S1047

TITLE OF BILL:
An act
to amend the general business law, in relation to zone pricing of
gasoline; and to amend chapter 579 of the laws of 2008 amending the
general business law relating to zone pricing of gasoline, in relation
to making certain technical changes

PURPOSE:
To make chapter amendment to the law prohibiting the practice of zone
pricing to insure that all parties in the chain of supply are covered
by the law.

SUMMARY OF PROVISIONS:
Section 1: adds a new definition of "additional costs" which is
defined as all replacement and transportation costs and taxes incurred,

Section 2: amends general business law section 399-ee(1) (g) to
change the definition of "relevant geographic market" to include the
phrase "among retail outlets".

Section 3: amends section 399-ee(1) (m) of the general business law to
adjust the definition of zone pricing to read "the establishment of
arbitrary price differences based on the geographical location of the
retail outlet within the relevant geographic market, without regard
to the posted terminal price and any additional" costs where the
effect is to injure competition."

Section 4: amends section 399-ee(2) so that no producer, refiner shall
engage in zone pricing with respect to any motor fuel or like grade
or quality, which is supplied to a dealer or wholesaler which
operates such outlets.

Section 5: makes a technical change to the language in the legislative
intent section of the original bill.

EXISTING LAW:
Chapter 579 of the Laws of 2008 prohibits the practice of zone pricing
of gasoline.

JUSTIFICATION:
Chapter 579 of the Laws of 2008 created a new section of the general
business law to prohibit the practice of zone pricing of gasoline
which is the use of arbitrary price differences based on the
geographic location of the retail outlet, This bill makes technical
changes to the law to insure that all parties in the supply chain of
retail gasoline are covered by the law.

LEGISLATIVE HISTORY:
S.7012 of 2009-2010; Referred to Consumer Protection
S.141  of 2011-2012; Referred to Consumer Protection

FISCAL IMPLICATIONS:
None.


EFFECTIVE DATE:
Thirtieth day after it shall have become a law.

S1047-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1047
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
 printed to be committed to the Committee on Consumer Protection
 

AN ACT to amend the general business law, in relation to zone pricing of
 gasoline; and to amend chapter 579 of the laws of  2008  amending  the
 general business law relating to zone pricing of gasoline, in relation
 to making certain technical changes
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Paragraph (a) of subdivision 1 of  section  399-ee  of  the
 general  business  law is relettered paragraph (a-1) and a new paragraph
 (a) is added to read as follows:

 (A) "ADDITIONAL COSTS" MEANS ALL REPLACEMENT AND TRANSPORTATION  COSTS
 AND TAXES INCURRED.
 

S  2.  Paragraph (g) of subdivision 1 of section 399-ee of the general
 business law, as added by chapter 579 of the laws of 2008, is amended to
 read as follows:

 (g) "Relevant geographic market" means the geographic area  of  effec
 tive competition AMONG RETAIL OUTLETS.
 

S  3.  Paragraph (m) of subdivision 1 of section 399-ee of the general
 business law, as added by chapter 579 of the laws of 2008, is amended to
 read as follows:

 (m) "Zone pricing" means the ESTABLISHMENT OF arbitrary price  differ
 ences BASED ON THE GEOGRAPHICAL LOCATION OF THE RETAIL OUTLET within the
 relevant  geographic  market,  [based  on]  WITHOUT REGARD TO the posted
 terminal price [or] AND ANY ADDITIONAL COSTS  where  the  effect  is  to
 injure competition.
 

S  4.  Subdivision 2 of section 399-ee of the general business law, as
 added by chapter 579 of the laws of 2008, is amended to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02065-01-3
 
       S. 1047                             2
 2. No [wholesaler] PRODUCER OR REFINER shall engage  in  zone  pricing
 with  respect  to  any  motor  fuel  of  like grade or quality, WHICH IS
 SUPPLIED TO A DEALER OR WHOLESALER WHICH OPERATES RETAIL OUTLETS.
 

S 5.

Section 2 of chapter 579 of the laws of 2008 amending the general
 business  law relating to zone pricing of gasoline is amended to read as
 follows:

 

S 2. Legislative findings and intent. The legislature hereby finds and
 declares that for the past several years motor fuel prices have  greatly
 fluctuated.  In  some  cases,  price  fluctuations are caused by natural
 market conditions. In other cases, fluctuations result  from  artificial
 manipulation  of the market. One such artificial pricing manipulation is
 zone pricing. Zone pricing is the setting of different wholesale  prices
 for retail motor fuel [that operate in different geographic areas] BASED
 ON GEOGRAPHIC LOCATION. Zone pricing increases the price of retail motor
 fuel  for  certain  consumers, leading to inequities among consumers and
 regions around the state.   Therefore, the legislature  hereby  declares
 that  while  natural  market occurrences may lead to price fluctuations,
 artificial changes in motor fuel prices  unfairly  harm  many  consumers
 around the state.
 

S  6.  This  act shall take effect on the thirtieth day after it shall
 have become a law.

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