NY State Senate Bill 2013-S7434

Senate Bill S7434

2013-2014 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 14, 2014	referred to consumer protection

2013-S7434 (ACTIVE) - Details

See Assembly Version of this Bill:: A7011
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add Art 24-D §375, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A6036
2011-2012: A4788
2015-2016: S3815, A5331

2013-S7434 (ACTIVE) - Summary

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.

2013-S7434 (ACTIVE) - Sponsor 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.

2013-S7434 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7434

                            I N  S E N A T E

                              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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10070-01-3

S. 7434                             2

  (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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