This bill has been amended

Bill S4170-2011

Relates to zone pricing of gasoline

Relates to zone pricing of gasoline.

Details

Actions

  • Jan 4, 2012: REFERRED TO CONSUMER PROTECTION
  • Jun 24, 2011: COMMITTED TO RULES
  • Jun 6, 2011: ADVANCED TO THIRD READING
  • Jun 2, 2011: 2ND REPORT CAL.
  • Jun 1, 2011: 1ST REPORT CAL.919
  • Mar 22, 2011: REFERRED TO CONSUMER PROTECTION

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Consumer Protection - Jun 1, 2011
Ayes (7): Zeldin, Ball, Fuschillo, Little, Marcellino, Hassell-Thompson, Huntley
Ayes W/R (2): O'Mara, Squadron
Excused (1): Adams

Memo

BILL NUMBER:S4170

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 zone pricing for retail motor fuel based on geographic location

PURPOSE: To amend the current law, chapter 579 of the laws of 2008 to put an end to unfair zone pricing based on geographical location.

SUMMARY OF PROVISIONS: Section 1. Paragraph (a) of subdivision 1 of section 399-ee of the general business law defines "Additional cost" to mean all replacement and transportation costs and taxes incurred,

Section 2. (g) of subdivision 1 of section 399-ee of the general business law defines "Relevant geographic market" to mean the geographic area (of effective competition) which is supplied by the same terminal facility.

Section 3. Paragraph (m) of subdivision 1 of section 399-ee of the general business law defines "Zone Pricing" to mean the establishment of arbitrary price differences based on geographical location of the retail outlet within the relevant geographic market, (based on) without regard to the posted terminal prices (or) any additional costs where the effect is to injure competition.

Section 4. Subdivision 2 of section 399-ee of the general business law states that no wholesaler or dealer shall engage in zone pricing with respect to any motor fuel of like grade or quality which is supplied to dealer operated retail outlets.

Section 5. Subdivision 3 of section 399-ee of the general business law is amended to allow a wholesaler or dealer who has been injured by reason of a violation of this section to bring an action in his or her name to enjoin such unlawful act, however no damages of any nature shall be recoverable in such action.

Section 6. States that although natural market occurrences may lead to price fluctuations, artificial changes in motor fuel prices unfairly harms many consumers around the state.

Section 7. Establishes the effective date.

JUSTIFICATION: Over the past several years motor fuel prices have greatly fluctuated and in some cases unfairly so based on geographical location. Natural market occurrences may lead to price fluctuations; however zone pricing is an inequitable and harmful act that is devastating to consumers across all of New York State. New York state residents are struggling and this is an unnecessary burden during difficult economic times.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4170 2011-2012 Regular Sessions IN SENATE March 22, 2011 ___________
Introduced by Sen. ALESI -- 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 zone pricing for retail motor fuel based on geographic location 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] WHICH IS SUPPLIED BY THE SAME TERMINAL FACILITY. 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] 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, OR DEALER shall engage in zone pricing with respect to any motor fuel of like grade or quality, WHICH IS SUPPLIED TO DEALER OPERATED RETAIL OUTLETS.
S 5. Subdivision 3 of section 399-ee of the general business law, is amended by adding a new undesignated paragraph to read as follows: NOTWITHSTANDING ANY RIGHT OF ACTION TO THE ATTORNEY GENERAL AS PROVIDED IN THIS SECTION, A WHOLESALER OR DEALER WHO HAS BEEN INJURED BY REASON OF A VIOLATION OF THIS SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAWFUL ACT, HOWEVER, NO DAMAGES OF ANY NATURE SHALL BE RECOVERABLE IN SUCH ACTION. S 6. Section 2 of chapter 579 of the laws of 2008, amending the gener- al 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 7. This act shall take effect immediately.

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