senate Bill S2720

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

  • 23 / Jan / 2013
    • REFERRED TO CONSUMER PROTECTION

Summary

Makes certain technical amendments concerning zone pricing of gasoline.

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Bill Details

Versions:
S2720
Legislative Cycle:
2013-2014
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 Previous Legislative Cycles:
2011-2012: S3709
2009-2010: S3766, S7168

Sponsor Memo

BILL NUMBER:S2720

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 299-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) to include producer, refiners and
dealers within the prohibition of zone pricing.

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: 2010: A.9764/S.7168 - Held in Consumer Protection
2011: S.3709 03/02/11 - Referred to Consumer Protection
A.7010 04/08/11 - Referred to Economic Development 2012: S.3709
01/04/12 - Referred to Consumer Protection
A.7010 01/04/12 - Referred to Economic Development

FISCAL IMPLICATIONS: None.

LOCAL 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
________________________________________________________________________

                                  2720

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 23, 2013
                               ___________

Introduced  by  Sen.  ADAMS  -- 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:
  2. No PRODUCER, REFINER, 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.
                                                           LBD06042-01-3

S. 2720                             2

  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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