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Senate Bill S4934

2009-2010 Legislative Session

Establishes no franchise agreements shall prohibit a gasoline dealer from offering a discount to a buyer based upon the method of payment by such buyer for such gasoline

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

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Bill Amendments

2009-S4934 - Details

Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Add §199-o, Gen Bus L

2009-S4934 - Summary

Establishes no future franchise agreement shall prohibit a gasoline dealer from offering a discount to a buyer based upon the method of payment by such buyer for such gasoline.

2009-S4934 - Sponsor Memo

2009-S4934 - Bill Text download pdf 

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

                                  4934

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sen.  STACHOWSKI  -- 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  the  right  of
  gasoline dealers to offer discounts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative  findings  and  declarations.  The  legislature
finds and declares that the distribution and sale of motor vehicle fuels
and  oils  affects the general economy of the state, the public interest
and the public welfare. The legislature further finds and declares  that
provisions  in  certain existing petroleum franchise agreements prohibit
gasoline dealers from offering a discount to  a  buyer  based  upon  the
method  of  payment  by such buyer for gasoline. The legislature further
finds  and  declares  that  such  provisions   constitute   unreasonable
restraints  on  competitive  pricing  and inhibit the fair and efficient
functioning of a free market  economy  within  the  petroleum  industry.
Therefore, it is provided that the provisions of any franchise agreement
that prohibit gasoline dealers from offering a discount to a buyer based
upon the method of payment by such buyer for gasoline are void and with-
out effect as contrary to public policy.
  S 2. The general business law is amended by adding a new section 199-o
to read as follows:
  S  199-O.  DEALERS'  RIGHT  TO  OFFER DISCOUNTS. NO EXISTING OR FUTURE
FRANCHISE AGREEMENT SHALL PROHIBIT A GASOLINE  DEALER  FROM  OFFERING  A
DISCOUNT  TO  A BUYER BASED UPON THE METHOD OF PAYMENT BY SUCH BUYER FOR
SUCH GASOLINE. ANY PROVISION IN  SUCH  FRANCHISE  AGREEMENT  PROHIBITING
SUCH  DEALER FROM OFFERING SUCH DISCOUNT SHALL BE VOID AND UNENFORCEABLE
AS CONTRARY TO PUBLIC POLICY.
  S 3. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08621-01-9

2009-S4934A (ACTIVE) - Details

Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Add §199-o, Gen Bus L

2009-S4934A (ACTIVE) - Summary

Establishes no future franchise agreement shall prohibit a gasoline dealer from offering a discount to a buyer based upon the method of payment by such buyer for such gasoline.

2009-S4934A (ACTIVE) - Sponsor Memo

2009-S4934A (ACTIVE) - Bill Text download pdf 

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

                                 4934--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sen.  STACHOWSKI  -- read twice and ordered printed, and
  when printed to be committed to the Committee on  Consumer  Protection
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the general business law, in relation to  the  right  of
  gasoline dealers to offer discounts

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative  findings  and  declarations.  The  legislature
finds and declares that the distribution and sale of motor vehicle fuels
and  oils  affects the general economy of the state, the public interest
and the public welfare. The legislature further finds and declares  that
provisions  in  certain existing petroleum franchise agreements prohibit
gasoline dealers from offering a discount to  a  buyer  based  upon  the
method  of  payment  by such buyer for gasoline. The legislature further
finds  and  declares  that  such  provisions   constitute   unreasonable
restraints  on  competitive  pricing  and inhibit the fair and efficient
functioning of a free market  economy  within  the  petroleum  industry.
Therefore, it is provided that the provisions of any franchise agreement
that prohibit gasoline dealers from offering a discount to a buyer based
upon the method of payment by such buyer for gasoline are void and with-
out effect as contrary to public policy.
  S 2. The general business law is amended by adding a new section 199-o
to read as follows:
  S 199-O. DEALERS' RIGHT TO OFFER DISCOUNTS. NO FUTURE FRANCHISE AGREE-
MENT  SHALL  PROHIBIT  A  GASOLINE  DEALER FROM OFFERING A DISCOUNT TO A
BUYER BASED UPON THE METHOD OF PAYMENT BY SUCH BUYER FOR SUCH  GASOLINE.
ANY  PROVISION  IN SUCH FRANCHISE AGREEMENT PROHIBITING SUCH DEALER FROM
OFFERING SUCH DISCOUNT SHALL BE VOID AND UNENFORCEABLE  AS  CONTRARY  TO
PUBLIC POLICY.
  S 3. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08621-03-9

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