S T A T E O F N E W Y O R K
________________________________________________________________________
6491--A
2011-2012 Regular Sessions
I N A S S E M B L Y
March 21, 2011
___________
Introduced by M. of A. CASTELLI -- read once and referred to the Commit-
tee on Economic Development -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
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.
LBD01276-02-1
A. 6491--A 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 immediately.