Bill S141-2011

Makes certain amendments concerning zone pricing of gasoline

Makes certain amendments concerning zone pricing of gasoline.

Details

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  • Jan 4, 2012: REFERRED TO CONSUMER PROTECTION
  • Jan 5, 2011: REFERRED TO CONSUMER PROTECTION

Memo

BILL NUMBER:S141

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

FISCAL IMPLICATIONS: None.

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


Text

STATE OF NEW YORK ________________________________________________________________________ 141 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
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:
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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