Assembly Bill A234

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

                                 234--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by M. of A. BRADLEY -- Multi-Sponsored by -- M. of A. THIELE
  -- read once and referred to the Committee  on  Economic  Development,
  Job  Creation,  Commerce  and  Industry  -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02870-02-9
              

A. 234--A                           2

  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.
  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.