senate Bill S2442

2011-2012 Legislative Session

Provides that no retailer shall engage in zone pricing with respect to any motor fuel of like grade or quality

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to consumer protection
Jan 21, 2011 referred to consumer protection

Co-Sponsors

S2442 - Bill Details

Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Amd ยง399-ee, Gen Bus L
Versions Introduced in 2009-2010 Legislative Session:
S7122

S2442 - Bill Texts

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Provides that no retailer shall engage in zone pricing with respect to any motor fuel of like grade or quality.

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BILL NUMBER:S2442

TITLE OF BILL:
An act
to amend the general business law, in relation to providing that no
retailer shall engage in zone pricing with respect to any motor fuel of
like grade or quality

PURPOSE:
To prohibit the use of zone pricing as a marketing device for
gasoline.

SUMMARY OF PROVISIONS:
Section 1: Subdivision 2 of section 399-ee of
the general business law, as added by chapter 579 of the laws of 2008
is amended. Section 2: adds "retailer" to those entities who cannot
engage in zone pricing

EXISTING LAW:
Chapter 579 of the laws of 2008.

JUSTIFICATION:
Zone pricing is a marketing technique currently used by
petroleum companies. The company determines geographical price zones
based on the demographics of a certain area. For example, if one area
typically is more affluent than another, the tank wagon price, in
other words, the price per gallon determined by the wholesaler, at
which gasoline is offered for sale to the retailers may be slightly
higher in that area, than an area where the clientele is primarily a
working class neighborhood. Because the petroleum companies increase
the amount charged to the service station dealers for the gasoline in
those designated zones, this cost is then passed on to the consumers.
Thus, the result of zone pricing is higher prices at the pump for
individuals who are assumed to be able to pay more. This legislation
would prohibit this discriminatory pricing policy.

This simple change merely adds retailer to those entities who are not
permitted to engage in zone pricing with respect to any motor fuel of
like grade or quality. This language should have been included in the
initial legislation, so this is merely a small adjustment.

LEGISLATIVE HISTORY:
2009-2010: S.7122 - Consumer Protection

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

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

                                  2442

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 21, 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 providing  that
  no  retailer  shall  engage  in zone pricing with respect to any motor
  fuel of like grade or quality

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

  Section  1.  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 RETAILER shall engage in zone pricing with respect
to any motor fuel of like grade or quality.
  S 2. This act shall take effect immediately.







 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08247-01-1

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