senate Bill S141

Makes certain amendments concerning zone pricing of gasoline

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO CONSUMER PROTECTION
  • 04 / Jan / 2012
    • REFERRED TO CONSUMER PROTECTION

Summary

Makes certain amendments concerning zone pricing of gasoline.

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Bill Details

Versions:
S141
Legislative Cycle:
2011-2012
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Amd §399-ee, Gen Bus L; amd §2, Chap 579 of 2008
Versions Introduced in 2009-2010 Legislative Cycle:
S7012

Sponsor 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.

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

                                   141

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01276-01-1

S. 141                              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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