senate Bill S4170

Amended

Relates to 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

  • 22 / Mar / 2011
    • REFERRED TO CONSUMER PROTECTION
  • 01 / Jun / 2011
    • 1ST REPORT CAL.919
  • 02 / Jun / 2011
    • 2ND REPORT CAL.
  • 06 / Jun / 2011
    • ADVANCED TO THIRD READING
  • 24 / Jun / 2011
    • COMMITTED TO RULES
  • 04 / Jan / 2012
    • REFERRED TO CONSUMER PROTECTION
  • 10 / Jan / 2012
    • AMEND AND RECOMMIT TO CONSUMER PROTECTION
  • 10 / Jan / 2012
    • PRINT NUMBER 4170A
  • 14 / Jun / 2012
    • AMEND AND RECOMMIT TO CONSUMER PROTECTION
  • 14 / Jun / 2012
    • PRINT NUMBER 4170B

Summary

Relates to zone pricing of gasoline.

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Bill Details

Versions:
S4170
S4170A
S4170B
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 2011-2012 Legislative Cycle:
A7775B

Votes

7
0
7
Aye
0
Nay
2
aye with reservations
0
absent
1
excused
0
abstained
show Consumer Protection committee vote details

Sponsor 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.

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

                                  4170

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09988-01-1

S. 4170                             2

  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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