Bill S7434-2013

Prohibits a producer or refiner from selling, transferring, or assigning interest in a retail outlet leased to a motor fuel dealer

Prohibits a producer or refiner from selling, transferring, or assigning interest in a retail outlet leased to a motor fuel dealer unless such producer or refiner makes certain offers to such dealer.

Details

Actions

  • May 14, 2014: REFERRED TO CONSUMER PROTECTION

Memo

BILL NUMBER:S7434

TITLE OF BILL: An act to amend the general business law, in relation to prohibiting a producer or refiner from selling, transferring, or assigning interest in a retail outlet leased to a dealer unless the producer or refiner makes certain offers of the producer's or refiner's interest to such dealer

PURPOSE: Prohibits a producer or refiner from selling, transferring or assigning interest in a retail outlet leased to a motor fuel dealer.

SUMMARY OF PROVISIONS: Adds a new Article 24-D relating to the sale or transfer of gasoline outlets.

JUSTIFICATION: With the exception of transactions otherwise covered under the Federal Petroleum Marketing Practices Act, this bill provides that if a producer or refiner owns a fee simple interest in a retail outlet leased to a dealer, the producer or refiner may not sell, transfer or assign to another person the producer's or refiner's interest in the outlet unless the producer or refiner:

* Makes a bona fide effort to sell, transfer or assign to the dealer the producer's or refiner's interest in the retail outlet, except for signs displaying the insignia, trademark, etc. of the producer or refiner;

* Offer a right of first refusal to the dealer of any bona fide offer acceptable to the producer or refiner made by another person to purchase the producer's or refiner's interest in the retail outlet. If a producer or refiner leases a retail outlet from a third party and subleases the retail outlet to a dealer, the producer or refiner may not sell, transfer or assign to another person the producer's or refiner's interest in the third party lease unless the producer or refiner:

* Makes a bona fide effort to sell, transfer or assign to the dealer the producer's or refiner's interest in any improvements or equipment owned by the producer or the refiner at the retail outlet, except for signs displaying the insignia, trademark etc of the producer or refiner

* Offer a right of first refusal to the dealer of any bona fide offer acceptable to the producer or refiner made by another person to purchase the producer's or refiner's interest in the retail outlet at a price not exceeding the greater of the fair market value or the boot value of the improvements and equipment.

LEGISLATIVE HISTORY: 2011-12 A.4788, 2009-10 S.7410B/A.6036B; 2008 A.11848

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately; provided, however, that nothing in this act shall be construed to affect the provision of any existing marketing agreement entered into prior to the date this act shall have become law.


Text

STATE OF NEW YORK ________________________________________________________________________ 7434 IN SENATE May 14, 2014 ___________
Introduced by Sen. LAVALLE -- 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 prohibiting a producer or refiner from selling, transferring, or assigning interest in a retail outlet leased to a dealer unless the producer or refiner makes certain offers of the producer's or refiner's interest to such dealer THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The general business law is amended by adding a new article 24-D to read as follows: ARTICLE 24-D SALE OR TRANSFER OF GASOLINE RETAIL OUTLETS SECTION 375. SALE OR TRANSFER OF GASOLINE RETAIL OUTLETS. S 375. SALE OR TRANSFER OF GASOLINE RETAIL OUTLETS. (A) FOR THE PURPOSES OF THIS SECTION: (1) "PRODUCER" MEANS A PERSON WHO PURCHASES COMPONENT ELEMENTS AND COMBINES THEM TO PRODUCE GASOLINE PRODUCTS. (2) "BOOK VALUE" MEANS ACTUAL COST LESS ACTUAL DEPRECIATION TAKEN. (3) "DEALER" MEANS ANY PERSON, OTHER THAN A REFINER OR WHOLESALER, WHO IS ENGAGED IN THE BUSINESS OF SELLING MOTOR FUEL AT A RETAIL OUTLET. (4) "REFINER" MEANS ANY PERSON WHO PRODUCES AND STORES OR EXCHANGES MOTOR FUEL AT A TERMINAL FACILITY AND WHO SELLS OR TRANSFERS MOTOR FUEL THROUGH THE LOADING RACK AT SUCH TERMINAL FACILITY, AND INCLUDES AN AFFILIATE OF SUCH REFINER WITH RESPECT TO SUCH AFFILIATE'S SALE OF MOTOR FUEL. (5) "RETAIL OUTLET" MEANS A FACILITY, INCLUDING LAND AND IMPROVEMENTS, WHERE MOTOR FUEL IS OFFERED FOR SALE AT RETAIL TO THE PUBLIC. (B)(1) EVERY MARKETING AGREEMENT BETWEEN A REFINER OR PRODUCER AND A DEALER IS SUBJECT TO THE PROVISIONS OF THIS SECTION, WHETHER OR NOT EXPRESSLY SET FORTH OR STATED IN SUCH AGREEMENT. (2) THIS SECTION SHALL NOT APPLY TO TRANSACTIONS OTHERWISE COVERED UNDER THE FEDERAL PETROLEUM MARKETING PRACTICES ACT.
(C) IF A PRODUCER OR A REFINER OWNS A FEE SIMPLE INTEREST IN A RETAIL OUTLET LEASED TO A DEALER, THE PRODUCER OR REFINER MAY NOT SELL, TRANS- FER, OR ASSIGN TO ANOTHER PERSON THE PRODUCER'S OR REFINER'S INTEREST IN THE RETAIL OUTLET UNLESS THE PRODUCER OR REFINER: (1) MAKES A BONA FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE DEALER THE PRODUCER'S OR REFINER'S INTEREST IN THE RETAIL OUTLET, EXCEPT FOR SIGNS DISPLAYING THE INSIGNIA OR ANY OTHER TRADEMARK, SERVICE MARK, COPYRIGHT, OR PATENTED EQUIPMENT OF THE PRODUCER OR REFINER; OR (2) IF APPLICABLE, OFFERS A RIGHT OF FIRST REFUSAL TO THE DEALER OF ANY BONA FIDE OFFER ACCEPTABLE TO THE PRODUCER OR REFINER MADE BY ANOTH- ER PERSON TO PURCHASE THE PRODUCER'S OR REFINER'S INTEREST IN THE RETAIL OUTLET. (D) IF A PRODUCER OR REFINER LEASES A RETAIL OUTLET FROM A THIRD PARTY AND SUBLEASES THE RETAIL OUTLET TO A DEALER, THE PRODUCER OR REFINER MAY NOT SELL, TRANSFER, OR ASSIGN TO ANOTHER PERSON THE PRODUCER'S OR REFIN- ER'S INTEREST IN THE THIRD PARTY LEASE UNLESS THE PRODUCER OR REFINER: (1)(I) MAKES A BONA FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE DEALER THE PRODUCER'S OR REFINER'S INTEREST IN THE THIRD PARTY LEASE; AND (II) MAKES A BONA FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE DEAL- ER THE PRODUCER'S OR REFINER'S INTEREST IN ANY IMPROVEMENTS OR EQUIPMENT OWNED BY THE PRODUCER OR REFINER AND LOCATED AT THE RETAIL OUTLET, EXCEPT FOR SIGNS DISPLAYING THE INSIGNIA OR ANY OTHER TRADEMARK, SERVICE MARK, COPYRIGHT, OR PATENTED EQUIPMENT OF THE PRODUCER OR REFINER, AT A PRICE NOT EXCEEDING THE GREATER OF THE FAIR MARKET VALUE OR THE BOOK VALUE OF THE IMPROVEMENTS AND EQUIPMENT; OR (2) IF APPLICABLE, OFFERS A RIGHT OF FIRST REFUSAL TO THE DEALER OF ANY BONA FIDE OFFER ACCEPTABLE TO THE PRODUCER OR REFINER MADE BY ANOTH- ER PERSON TO ACQUIRE THE PRODUCER'S OR REFINER'S INTEREST IN THE THIRD PARTY LEASE AND THE IMPROVEMENTS AND EQUIPMENT LOCATED AT THE RETAIL OUTLET. S 2. This act shall take effect immediately; provided, however, that nothing in this act shall be construed to affect any retail outlet where the title to such retail outlet was transferred by the producer or refiner, or a contract of sale or lease of such retail outlet was entered into prior to the date this act shall have become a law.

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