senate Bill S7087A

2011-2012 Legislative Session

Relates to the advertising medium for motor fuel sales

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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
Jun 21, 2012 committed to rules
Jun 20, 2012 amended on third reading 7087a
May 02, 2012 advanced to third reading
May 01, 2012 2nd report cal.
Apr 30, 2012 1st report cal.616
Apr 27, 2012 referred to consumer protection

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S7087 - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §396-xx, Gen Bus L; amd §192, add §192-h, Ag & Mkts L

S7087 - Bill Texts

view summary

Relates to the advertising medium for motor fuel sales; requires appropriate signage visible from businesses for certain sales; makes provisions relating to advertising media letters, words, figures and numerals used in such signage.

view sponsor memo
BILL NUMBER:S7087

TITLE OF BILL:
An act to amend the general business law and the agriculture and markets
law, in relation to the advertising medium for motor fuel sales

PURPOSE OR GENERAL IDEA OF BILL:
This legislation would require any place of business offering for sale
or selling any motor fuel to the public to clearly and conspicuously
advertise the higher price when the same grade of motor fuel is sold at
different prices from a single place of business if the price deviation
exceeds seven percent for the same grade of motor fuel.

SUMMARY OF PROVISIONS:
Section One amends the general business law by defining advertising
medium, requiring that a street side advertising medium be displayed at
any place of business offering for sale or selling any motor fuel to the
public if the place of business sells the same grade of motor fuel for
different prices and the price deviation exceeds seven percent. This
section also establishes minimum readability requirements for the
letters and numerals required pursuant to this section. A first
violation of this section would be punishable by a $500 fine. Any subse-
quent violations would result in a one thousand dollar fine. A third
violation would additionally result in a shutdown of the establishment
for ten days, or until the establishment comes into compliance with this
provision, whichever is longer. Finally, a variance is provided for in
relation to the required advertising mediums for businesses in political
subdivisions that have laws or ordinances that are contrary to this
provision or for scenic or historic purposes.

Section Two amends the Agriculture and Markets law to require that signs
or labels that are currently required at the dispensing pump, also indi-
cate the difference in the amount per gallon for cash and credit custom-
ers.

Section Three amends the Agriculture and Markets law to make changes
that conform to Section One of this legislation.

Section Four is the effective date.

JUSTIFICATION:
Some places of business offering for sale or selling motor fuel have
been luring customers to their stations by deceptively advertising a
reduced price for motor fuel that is actually only available to those
customers who are able to pay with cash for their transaction. In other
instances, motorists have reported unclear and unreadable discount
disclosures. The words "cash" and "credit" are sometimes posted in a
font so small, that the words are nearly impossible to read. This bill
attempts to protect customers by setting advertising standards for any
gas station that opts to charge more than a seven percent differential
in price for the same grade of motor fuel by requiring, at minimum,

readable street side signs that clearly and conspicuously advertises the
higher of the prices offered.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None to the state.

EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become law; provided that the commissioner of agriculture and markets is
authorized to promulgate any rules or regulations necessary to implement
this act on or before its effective date.

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

                                  7087

                            I N  S E N A T E

                             April 27, 2012
                               ___________

Introduced  by  Sen.  ZELDIN -- 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 and the agriculture and markets
  law, in relation to the advertising medium for motor fuel sales

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

  Section 1. The general business law is amended by adding a new section
396-ff to read as follows:
  S 396-FF. ADVERTISING MEDIUM; MOTOR FUEL SALES. 1. THE TERM "ADVERTIS-
ING MEDIUM," AS USED IN THIS SECTION, SHALL MEAN A STREET SIGN, WHICH IS
AT  LEAST  SIX  FEET HIGH AND FOUR FEET WIDE AND AT LEAST EIGHT FEET OFF
THE GROUND.
  2. A. IN THE EVENT THAT THE SAME  GRADE  OF  MOTOR  FUEL  IS  SOLD  AT
DIFFERENT PRICES FROM ANY SINGLE PLACE OF BUSINESS, AND THE PRICES DEVI-
ATE  BY  MORE  THAN SEVEN PERCENT FOR THE SAME GRADE OF MOTOR FUEL, THEN
THE PLACE OF BUSINESS MUST HAVE AN ADVERTISING MEDIUM THAT COMPLIES WITH
THIS SECTION AND WHICH DISPLAYS THE HIGHER OF  THE  PRICES  OFFERED  FOR
THAT GRADE OF MOTOR FUEL.
  B.  THIS  SUBDIVISION SHALL NOT APPLY TO DISCOUNTS OR PRICE REDUCTIONS
NOT AVAILABLE TO THE GENERAL PUBLIC,  INCLUDING,  BUT  NOT  LIMITED  TO,
DISCOUNTS  OR  PRICE  REDUCTIONS  PROVIDED  PURSUANT TO AWARDS, REWARDS,
LOYALTY, OR PROMOTIONAL PROGRAMS.
  3. AN ADVERTISING MEDIUM REQUIRED PURSUANT TO  THIS  SECTION  MUST  BE
CLEARLY VISIBLE FROM EACH STREET OR HIGHWAY WHICH HAS AN ACCESS POINT TO
THE  PLACE OF BUSINESS.  ANY AND ALL INFORMATION REQUIRED TO BE INCLUDED
ON SUCH ADVERTISING MEDIUM PURSUANT TO THIS SECTION SHALL BE  POSTED  OR
MAINTAINED IN A CLEAR AND CONSPICUOUS MANNER.
  4.  ALL  LETTERS,  WORDS,  FIGURES,  OR NUMERALS WHICH ARE PART OF THE
ADVERTISING MEDIA REQUIRED BY SUBDIVISION TWO OF THIS SECTION SHALL HAVE
A HEAVY TYPE FACE OR STROKE, SHALL BE CLEARLY VISIBLE, AND OF A COLOR OR
TINT THAT WILL CONTRAST THE LETTERS, WORDS, FIGURES,  OR  NUMERALS  WITH
THE BACKGROUND OF THE ADVERTISING MEDIA.  ANY FONT USED PURSUANT TO THIS
SECTION  MUST  BE  AT  LEAST  SIX  INCHES  IN  HEIGHT. THE HEIGHT OF THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15526-03-2

S. 7087                             2

LETTERS, FIGURES, AND NUMERALS, EXCEPT THE LETTER "1" AND  NUMERAL  ONE,
SHALL NOT BE MORE THAN TWICE THE WIDTH.
  5.  A.  FAILURE  TO  COMPLY  WITH THE PROVISIONS OF THIS SECTION SHALL
SUBJECT A PERSON, FIRM OR CORPORATION OFFERING FOR SALE OR  SELLING  ANY
MOTOR  FUEL TO THE PUBLIC TO A CIVIL PENALTY OF FIVE HUNDRED DOLLARS FOR
A FIRST OFFENSE. SUBSEQUENT OFFENSE SHALL RESULT IN A FINE OF ONE  THOU-
SAND  DOLLARS.  UPON  A THIRD OFFENSE, NON-COMPLIANCE SHALL ADDITIONALLY
RESULT IN THE BUSINESS BEING SHUT DOWN FOR A PERIOD OF TEN DAYS OR UNTIL
THE BUSINESS COMES WITHIN COMPLIANCE, WHICHEVER IS LATER.
  B. THE PROVISIONS OF THIS SECTION MAY BE ENFORCED CONCURRENTLY BY  THE
DIRECTOR  OF  A MUNICIPAL CONSUMER AFFAIRS OFFICE, OR BY THE TOWN ATTOR-
NEY, CITY CORPORATION COUNSEL, OR OTHER LAWFUL  DESIGNEE  OF  A  MUNICI-
PALITY  OR LOCAL GOVERNMENT, AND ALL MONEYS COLLECTED UNDER THIS SECTION
SHALL BE RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT.
  6. A. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY  TO  ANY  PERSON,
FIRM  OR  CORPORATION OFFERING FOR SALE OR SELLING ANY MOTOR FUEL TO THE
PUBLIC OPERATING WITHIN  THE  POLITICAL  SUBDIVISION  THAT  HAS  ALREADY
ENACTED  AND  CONTINUES  IN EFFECT A LOCAL LAW, ORDINANCE, RULE OR REGU-
LATION IN SUBSTANTIAL CONFORMITY WITH THIS SECTION.  THE  PROVISIONS  OF
THIS SECTION SHALL NOT BE CONSTRUED TO LIMIT IN ANY WAY THE AUTHORITY OF
A  POLITICAL SUBDIVISION TO ENACT, IMPLEMENT AND CONTINUE TO ENFORCE ANY
AMENDMENTS THERETO  AFTER  THE  EFFECTIVE  DATE  OF  THIS  SECTION.  THE
PROVISIONS  OF THIS SECTION SHALL BE ENFORCED IN THE COUNTIES OUTSIDE OF
THE CITY OF NEW YORK BY THE COUNTY OR CITY DIRECTOR OF WEIGHTS AND MEAS-
URES, AS THE CASE MAY BE, AND IN THE CITY OF NEW YORK BY THE  DEPARTMENT
OF CONSUMER AFFAIRS.
  B.  ANY  POLITICAL SUBDIVISION MAY, BY ORDINANCE, MODIFY PROVISIONS OF
THIS SECTION FOR SPECIFIED GEOGRAPHIC AREAS FOR SCENIC OR HISTORIC PRES-
ERVATION PURPOSES UPON APPROVAL OF SUCH MODIFICATION BY THE COMMISSIONER
OF AGRICULTURE AND MARKETS.
  C. ANY POLITICAL SUBDIVISION MAY, BY ORDINANCE, LOCAL  LAW,  OR  LOCAL
REGULATION  CREATE  ALTERNATE  SIGNAGE SIZE AND FONT REQUIREMENTS IF THE
REQUIREMENTS CONTAINED IN THIS SECTION WOULD VIOLATE LOCAL ZONING RULES,
REGULATIONS, OR ORDINANCES.
  7. NOTHING IN THIS SECTION SHALL APPLY TO OR INTERFERE WITH  SIGNS  OR
PLACARDS  REQUIRED  TO BE POSTED PURSUANT TO SUBDIVISION FIVE OF SECTION
ONE HUNDRED NINETY-TWO OF THE AGRICULTURE AND MARKETS LAW.
  8. NOTHING IN THIS SECTION PROHIBITS ANY PERSON, FIRM  OR  CORPORATION
WHO  HAS  POSTED OR DISPLAYED A SIGN OR ADVERTISING MEDIUM IN COMPLIANCE
WITH THIS CHAPTER FROM DISPLAYING ADDITIONAL SIGNS OR ADVERTISING MEDIA,
SO LONG AS THE ADDITIONAL SIGNS OR ADVERTISING MEDIA ARE OF SMALLER SIZE
THAN THE MEDIA REQUIRED PURSUANT TO SUBDIVISION TWO OF THIS SECTION  AND
THE  ADDITIONAL  SIGNS  OR  MEDIA  DO NOT OBSTRUCT OR INTERFERE WITH THE
REQUIRED ADVERTISING MEDIUM, WHICH STATE EITHER:
  A. THE AMOUNT OF DISCOUNT IN CENTS OR DOLLARS PER GALLON, OR
  B. THE PRICE OF ONE OR MORE BRANDS OR GRADES OF  MOTOR  FUEL  SOLD  OR
OFFERED  FOR  SALE,  PROVIDED  THE CONDITIONS AND ANY LIMITATIONS OF THE
DISCOUNT OR PRICE OF THE BRAND OR GRADE OF MOTOR FUEL  ARE  INCLUDED  IN
THE  ADDITIONAL ADVERTISING MEDIA IN LETTERS NOT LESS THAN ONE-THIRD THE
SIZE OF THE NUMERALS INDICATING THE DISCOUNT OR PRICE.
  S 2. Subparagraph (iii) of paragraph a of subdivision 5 of section 192
of the agriculture and markets law, as amended by  chapter  101  of  the
laws of 1986, is amended and a new subparagraph (iv) is added to read as
follows:
  (iii)  where  a  multiple  product  dispensing  device  is  capable of
dispensing multiple products at multiple prices, then the selling  price

S. 7087                             3

per gallon [may] SHALL be posted thereon with numerals at least one-half
that height and one-half that width required by subparagraph (i) of this
paragraph,  although  numerals  representing  tenths  of  a  cent may be
displayed  at  no less than one-half those dimensions which disclose the
selling price per gallon of such motor fuel dispensed therefrom[.]; OR
  (IV) WHERE A DISCOUNT FOR CASH IS OFFERED, AT LEAST ONE SIGN OR  LABEL
SHALL BE CONSPICUOUSLY DISPLAYED ON THE DISPENSER INDICATING THE DIFFER-
ENCE  IN  AMOUNT PER GALLON IN NUMERALS NOT LESS THAN ONE-HALF INCH HIGH
AND LABELING THE DIFFERENCES IN LETTERS OF THE SAME SIZE  FOR  CASH  AND
CREDIT CUSTOMERS.
  S  3.  The  agriculture  and  markets  law  is amended by adding a new
section 192-h to read as follows:
  S 192-H. ADVERTISING MEDIUM; MOTOR FUEL SALES. 1. THE TERM  "ADVERTIS-
ING MEDIUM," AS USED IN THIS SECTION, SHALL MEAN A STREET SIGN, WHICH IS
AT  LEAST  SIX FEET HIGH AND FOUR FEET WIDE, AND AT LEAST EIGHT FEET OFF
THE GROUND.
  2. A. IN THE EVENT THAT THE SAME  GRADE  OF  MOTOR  FUEL  IS  SOLD  AT
DIFFERENT PRICES FROM ANY SINGLE PLACE OF BUSINESS, AND THE PRICES DEVI-
ATE  BY  MORE  THAN SEVEN PERCENT FOR THE SAME GRADE OF MOTOR FUEL, THEN
THE PLACE OF BUSINESS MUST HAVE AN ADVERTISING MEDIUM THAT COMPLIES WITH
THIS SECTION AND WHICH DISPLAYS THE HIGHER OF  THE  PRICES  OFFERED  FOR
THAT GRADE OF MOTOR FUEL.
  B.  THIS  SUBDIVISION SHALL NOT APPLY TO DISCOUNTS OR PRICE REDUCTIONS
NOT AVAILABLE TO THE GENERAL PUBLIC,  INCLUDING,  BUT  NOT  LIMITED  TO,
DISCOUNTS  OR  PRICE  REDUCTIONS  PROVIDED  PURSUANT TO AWARDS, REWARDS,
LOYALTY, OR PROMOTIONAL PROGRAMS.
  3. AN ADVERTISING MEDIUM REQUIRED PURSUANT TO  THIS  SECTION  MUST  BE
CLEARLY VISIBLE FROM EACH STREET OR HIGHWAY WHICH HAS AN ACCESS POINT TO
THE  PLACE  OF BUSINESS. ANY AND ALL INFORMATION REQUIRED TO BE INCLUDED
ON SUCH ADVERTISING MEDIUM PURSUANT TO THIS SECTION SHALL BE  POSTED  OR
MAINTAINED IN A CLEAR AND CONSPICUOUS MANNER.
  4.  ALL  LETTERS,  WORDS,  FIGURES,  OR NUMERALS WHICH ARE PART OF THE
ADVERTISING MEDIA REQUIRED BY SUBDIVISION TWO OF THIS SECTION SHALL HAVE
A HEAVY TYPE FACE OR STROKE, SHALL BE CLEARLY VISIBLE, AND OF A COLOR OR
TINT THAT WILL CONTRAST THE LETTERS, WORDS, FIGURES,  OR  NUMERALS  WITH
THE BACKGROUND OF THE ADVERTISING MEDIA.  ANY FONT USED PURSUANT TO THIS
SECTION  MUST  BE  AT  LEAST  SIX  INCHES  IN  HEIGHT. THE HEIGHT OF THE
LETTERS, FIGURES, AND NUMERALS, EXCEPT THE LETTER "L" AND  NUMERAL  ONE,
SHALL NOT BE MORE THAN TWICE THE WIDTH.
  5.  A.  FAILURE  TO  COMPLY  WITH THE PROVISIONS OF THIS SECTION SHALL
SUBJECT A PERSON, FIRM OR CORPORATION OFFERING FOR SALE OR  SELLING  ANY
MOTOR  FUEL TO THE PUBLIC TO A CIVIL PENALTY OF FIVE HUNDRED DOLLARS FOR
A FIRST OFFENSE. SUBSEQUENT OFFENSE SHALL RESULT IN A FINE OF ONE  THOU-
SAND  DOLLARS.  UPON  A THIRD OFFENSE, NON-COMPLIANCE SHALL ADDITIONALLY
RESULT IN THE BUSINESS BEING SHUT DOWN FOR A PERIOD OF TEN DAYS OR UNTIL
THE BUSINESS COMES WITHIN COMPLIANCE, WHICHEVER IS LATER.
  B. THE PROVISIONS OF THIS SECTION MAY BE ENFORCED CONCURRENTLY BY  THE
DIRECTOR  OF  A MUNICIPAL CONSUMER AFFAIRS OFFICE, OR BY THE TOWN ATTOR-
NEY, CITY CORPORATION COUNSEL, OR OTHER LAWFUL  DESIGNEE  OF  A  MUNICI-
PALITY  OR LOCAL GOVERNMENT, AND ALL MONEYS COLLECTED UNDER THIS SECTION
SHALL BE RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT.
  6. THE COMMISSIONER SHALL PROMULGATE RULES AND  REGULATIONS  NECESSARY
OR  APPROPRIATE  TO  CARRY OUT THE PROVISIONS OF THIS SECTION, AND SHALL
MAKE AVAILABLE ON THE DEPARTMENT'S WEBSITE A SUMMARY OF  THE  PROVISIONS
OF THIS SECTION AND ANY REGULATIONS PROMULGATED THEREUNDER.

S. 7087                             4

  7.  A.  THE  PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY PERSON,
FIRM OR CORPORATION OFFERING FOR SALE OR SELLING ANY MOTOR FUEL  TO  THE
PUBLIC OPERATING WITHIN A POLITICAL SUBDIVISION THAT HAS ALREADY ENACTED
AND  CONTINUES IN EFFECT A LOCAL LAW, ORDINANCE, RULES OR REGULATIONS IN
SUBSTANTIAL CONFORMITY WITH THIS SECTION. THE PROVISIONS OF THIS SECTION
SHALL  NOT BE CONSTRUED TO LIMIT IN ANY WAY THE AUTHORITY OF A POLITICAL
SUBDIVISION TO ENACT, IMPLEMENT AND CONTINUE TO ENFORCE  ANY  AMENDMENTS
THERETO AFTER THE EFFECTIVE DATE OF THIS SECTION. THE PROVISIONS OF THIS
SECTION  SHALL  BE  ENFORCED  IN THE COUNTIES OUTSIDE OF THE CITY OF NEW
YORK BY THE COUNTY OR CITY DIRECTOR OF WEIGHTS AND MEASURES, AS THE CASE
MAY BE, AND IN THE CITY OF  NEW  YORK  BY  THE  DEPARTMENT  OF  CONSUMER
AFFAIRS.
  B.  ANY  POLITICAL SUBDIVISION MAY, BY ORDINANCE, MODIFY PROVISIONS OF
THIS SECTION FOR SPECIFIED GEOGRAPHIC AREAS FOR SCENIC OR HISTORIC PRES-
ERVATION PURPOSES UPON APPROVAL OF SUCH EXEMPTION BY THE COMMISSIONER.
  C. ANY POLITICAL SUBDIVISION MAY, BY ORDINANCE, LOCAL  LAW,  OR  LOCAL
REGULATION  CREATE  ALTERNATE  SIGNAGE SIZE AND FONT REQUIREMENTS IF THE
REQUIREMENTS CONTAINED IN THIS SECTION WOULD VIOLATE LOCAL ZONING RULES,
REGULATIONS, OR ORDINANCES.
  8. NOTHING IN THIS SECTION SHALL APPLY TO OR INTERFERE WITH  SIGNS  OR
PLACARDS  REQUIRED  TO BE POSTED PURSUANT TO SUBDIVISION FIVE OF SECTION
ONE HUNDRED NINETY-TWO OF THIS ARTICLE.
  9. NOTHING IN THIS SECTION PROHIBITS ANY PERSON, FIRM  OR  CORPORATION
WHO  HAS  POSTED OR DISPLAYED A SIGN OR ADVERTISING MEDIUM IN COMPLIANCE
WITH THIS CHAPTER FROM DISPLAYING ADDITIONAL SIGNS OR ADVERTISING MEDIA,
SO LONG AS THE ADDITIONAL SIGNS OR ADVERTISING MEDIA ARE OF SMALLER SIZE
THAN THE MEDIA REQUIRED PURSUANT TO SUBDIVISION TWO OF THIS SECTION  AND
THE  ADDITIONAL  SIGNS  OR  MEDIA  DO NOT OBSTRUCT OR INTERFERE WITH THE
REQUIRED ADVERTISING MEDIUM, WHICH STATE EITHER:
  A. THE AMOUNT OF DISCOUNT IN CENTS OR DOLLARS PER GALLON, OR
  B. THE PRICE OF ONE OR MORE BRANDS OR GRADES OF  MOTOR  FUEL  SOLD  OR
OFFERED  FOR  SALE,  PROVIDED  THE CONDITIONS AND ANY LIMITATIONS OF THE
DISCOUNT OR PRICE OF THE BRAND OR GRADE OF MOTOR FUEL  ARE  INCLUDED  IN
THE  ADDITIONAL ADVERTISING MEDIA IN LETTERS NOT LESS THAN ONE-THIRD THE
SIZE OF THE NUMERALS INDICATING THE DISCOUNT OR PRICE.
  S 4. This act shall take effect on the thirtieth day  after  it  shall
have  become  a  law;  provided that the commissioner of agriculture and
markets is authorized to promulgate any rules and regulations  necessary
to implement this act on or before its effective date.

Co-Sponsors

S7087A (ACTIVE) - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Add §396-xx, Gen Bus L; amd §192, add §192-h, Ag & Mkts L

S7087A (ACTIVE) - Bill Texts

view summary

Relates to the advertising medium for motor fuel sales; requires appropriate signage visible from businesses for certain sales; makes provisions relating to advertising media letters, words, figures and numerals used in such signage.

view sponsor memo
BILL NUMBER:S7087A

TITLE OF BILL:
An act to amend the general business law and the agriculture and
markets law, in relation to the advertising medium for motor fuel
sales

PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to ensure that motorists are able to make
informed decisions with respect to motor fuel purchases.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would update New York law related to the posting of motor
fuel prices by motor fuel stations. The bill would require stations
offering fuel to the public at a differential price of seven percent
or greater, to post the higher of the prices offered on an advertising
medium. If the station offers motor fuel to the public at a
differential price of less than seven percent, then the station must
either post the higher of the prices available, or they must clearly
and conspicuously give notice of the fact that they are advertising
the reduced price.

The bill would provide that failure to comply shall subject any person
or firm to a civil penalty of up to five hundred dollars for a first
offense, up to one thousand dollars for a second offense, and up to
ten thousand dollars for a third or subsequent offense.

JUSTIFICATION:
With gas prices averaging over four dollars a gallon in many areas of
the State, motorists are feeling significant pain at the pump. To add
insult to injury, some motorists have reported being lured to a
particular gas station by the promise of reduced price fuel, only to
find that the price listed on the roadside sign only applies to cash
purchases. In some instances, motor fuel stations are advertising a
price that is one to two dollars less than the price that is actually
available to credit customers. Motorists depend on roadside signs to
determine which gas station to patronize, using such signs to quickly
comparison shop among competing stations so it is important that these
signs relay accurate information to consumers. Motorists have also
reported instances of unclear and unreadable discount disclosures. In
some instances, the words "cash" and "credit" are posted in a font so
small the words are nearly impossible to read unless the motorists are
directly under or beside the sign.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State.

EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after
which it shall have become a law.


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

                                 7087--A
    Cal. No. 616

                            I N  S E N A T E

                             April 27, 2012
                               ___________

Introduced  by  Sens. ZELDIN, DILAN, FUSCHILLO -- read twice and ordered
  printed, and when printed to be committed to the Committee on Consumer
  Protection -- reported favorably from said committee, ordered to first
  and second report, ordered to a third  reading,  amended  and  ordered
  reprinted, retaining its place in the order of third reading

AN ACT to amend the general business law and the agriculture and markets
  law, in relation to the advertising medium for motor fuel sales

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

  Section 1. The general business law is amended by adding a new section
396-xx to read as follows:
  S 396-XX. ADVERTISING MEDIUM; MOTOR FUEL SALES. 1. THE TERM "ADVERTIS-
ING MEDIUM," AS USED IN THIS SECTION, SHALL MEAN A STREET  SIGN  LOCATED
WITHIN  TEN  FEET  OF  THE  MAIN ENTRANCE OF THE PLACE OF BUSINESS OR AS
CLOSE AS PRACTICABLE.
  2. A.  IN THE EVENT THAT THE SAME GRADE  OF  MOTOR  FUEL  IS  SOLD  AT
DIFFERENT PRICES FROM ANY SINGLE PLACE OF BUSINESS, AND THE PRICES DEVI-
ATE  BY  MORE  THAN SEVEN PERCENT FOR THE SAME GRADE OF MOTOR FUEL, THEN
THE PLACE OF BUSINESS MUST HAVE AN ADVERTISING MEDIUM THAT: (I) COMPLIES
WITH THIS SECTION; (II) DISPLAYS AT  LEAST  THE  HIGHER  OF  THE  PRICES
OFFERED  FOR THAT GRADE OF MOTOR FUEL; AND (III) IS A STREET SIGN, WHICH
IS AT LEAST SIX FEET HIGH AND FOUR FEET WIDE AND AT LEAST EIGHT FEET OFF
THE GROUND.
  B. IN THE EVENT THAT THE SAME GRADE OF MOTOR FUEL IS SOLD AT DIFFERENT
PRICES FROM ANY SINGLE PLACE OF BUSINESS, AND THE PRICES DEVIATE BY LESS
THAN SEVEN PERCENT FOR THE SAME GRADE OF MOTOR FUEL  AND  THE  PLACE  OF
BUSINESS  SOLELY  DISPLAYS THE PRICE OFFERED FOR MOTOR FUEL TO CUSTOMERS
PAYING THE LOWER OF THE PRICES OFFERED, THEN THE PLACE OF BUSINESS MUST,
IN A CLEAR AND CONSPICUOUS  MANNER,  INCLUDE  A  NOTICE  EXPLAINING  THE
CONDITIONS  UNDER  WHICH  SUCH  FUEL  IS  SOLD  OR OFFERED FOR SALE AT A
DIFFERENT PRICE. THE CONDITIONS OF THE PRICE REDUCTION SHALL  BE  POSTED
USING  WORDS  WITH LETTERS NOT LESS THAN ONE-THIRD THE SIZE OF THE PRICE
NUMERALS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15526-13-2

S. 7087--A                          2

  C. PARAGRAPH B OF THIS SUBDIVISION SHALL NOT APPLY  IF  THE  PLACE  OF
BUSINESS DISPLAYS THE HIGHER OF THE PRICES OFFERED FOR MOTOR FUEL.
  D.  THE ADVERTISING MEDIUM SHALL, TO THE EXTENT PRACTICABLE, BE CLEAR-
LY  VISIBLE FROM EACH STREET OR HIGHWAY WHICH HAS A MOTOR VEHICLE ACCESS
POINT TO THE PLACE OF BUSINESS. WHEN THE PLACE OF BUSINESS  IS  SITUATED
AT  AN  INTERSECTION,  THE  ADVERTISING MEDIUM REQUIRED PURSUANT TO THIS
SECTION SHALL, TO THE EXTENT PRACTICABLE, BE CLEARLY VISIBLE  FROM  EACH
STREET  OF  THE INTERSECTION. ALL INFORMATION REQUIRED TO BE INCLUDED ON
SUCH ADVERTISING MEDIUM PURSUANT TO THIS  SECTION  SHALL  BE  POSTED  OR
MAINTAINED  IN A CLEAR AND CONSPICUOUS MANNER.  FOR THE PURPOSES OF THIS
SECTION, MOTOR FUEL DOES NOT INCLUDE PROPANE.
  E. THIS SUBDIVISION SHALL NOT APPLY TO DISCOUNTS OR  PRICE  REDUCTIONS
NOT  AVAILABLE  TO  THE  GENERAL  PUBLIC, INCLUDING, BUT NOT LIMITED TO,
DISCOUNTS OR PRICE REDUCTIONS PROVIDED PURSUANT TO AN  AWARDS,  REWARDS,
LOYALTY, OR PROMOTIONAL PROGRAM.
  3.  ALL  LETTERS,  WORDS,  FIGURES,  OR NUMERALS WHICH ARE PART OF THE
ADVERTISING MEDIA REQUIRED BY SUBDIVISION TWO OF THIS SECTION SHALL HAVE
A HEAVY TYPE FACE OR STROKE, SHALL BE CLEARLY VISIBLE, AND OF A COLOR OR
TINT THAT WILL CONTRAST THE LETTERS, WORDS, FIGURES,  OR  NUMERALS  WITH
THE  BACKGROUND  OF  THE  ADVERTISING  MEDIA. THE HEIGHT OF THE LETTERS,
FIGURES, AND NUMERALS, EXCEPT THE LETTER "L" AND NUMERAL ONE, SHALL  NOT
BE MORE THAN TWICE THE WIDTH.
  4.  A.  FAILURE  TO  COMPLY  WITH THE PROVISIONS OF THIS SECTION SHALL
SUBJECT A PERSON, FIRM OR CORPORATION OFFERING FOR SALE OR  SELLING  ANY
MOTOR  FUEL  TO  THE  PUBLIC  TO  A  CIVIL PENALTY OF UP TO FIVE HUNDRED
DOLLARS FOR A FIRST OFFENSE, UP TO ONE THOUSAND  DOLLARS  FOR  A  SECOND
OFFENSE,  AND  UP  TO  TEN  THOUSAND  DOLLARS  FOR A THIRD OR SUBSEQUENT
OFFENSE.
  B. THE PROVISIONS OF THIS SECTION MAY BE ENFORCED CONCURRENTLY BY  THE
DIRECTOR  OF  A MUNICIPAL CONSUMER AFFAIRS OFFICE, OR BY THE TOWN ATTOR-
NEY, CITY CORPORATION COUNSEL, OR OTHER LAWFUL  DESIGNEE  OF  A  MUNICI-
PALITY  OR LOCAL GOVERNMENT, AND ALL MONEYS COLLECTED UNDER THIS SECTION
SHALL BE RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT.
  5. A. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY  TO  ANY  PERSON,
FIRM  OR  CORPORATION OFFERING FOR SALE OR SELLING ANY MOTOR FUEL TO THE
PUBLIC OPERATING WITHIN A POLITICAL SUBDIVISION THAT HAS ALREADY ENACTED
AND CONTINUES IN EFFECT A LOCAL LAW, ORDINANCE, RULE  OR  REGULATION  IN
SUBSTANTIAL CONFORMITY WITH THIS SECTION. THE PROVISIONS OF THIS SECTION
SHALL  NOT BE CONSTRUED TO LIMIT IN ANY WAY THE AUTHORITY OF A POLITICAL
SUBDIVISION TO ENACT, IMPLEMENT AND CONTINUE TO ENFORCE LOCAL  LAWS  AND
REGULATIONS  GOVERNING THE SALE OF MOTOR FUELS THAT WERE IN EFFECT PRIOR
TO THE EFFECTIVE DATE OF  THIS  SECTION,  OR  TO  ENACT,  IMPLEMENT  AND
ENFORCE ANY AMENDMENTS THERETO AFTER THE EFFECTIVE DATE OF THIS SECTION.
THE PROVISIONS OF THIS SECTION SHALL BE ENFORCED IN THE COUNTIES OUTSIDE
THE CITY OF NEW YORK BY THE COUNTY OR CITY DIRECTOR OF WEIGHTS AND MEAS-
URES,  AS THE CASE MAY BE, AND IN THE CITY OF NEW YORK BY THE DEPARTMENT
OF CONSUMER AFFAIRS.
  B. ANY POLITICAL  SUBDIVISION  MAY,  BY  ORDINANCE,  EXEMPT  SPECIFIED
GEOGRAPHIC  AREAS  FOR  THE  PROVISIONS  OF  THIS  SECTION FOR SCENIC OR
HISTORIC PRESERVATION PURPOSES UPON APPROVAL OF SUCH  EXEMPTION  BY  THE
COMMISSIONER OF AGRICULTURE AND MARKETS.
  C.  ANY  PERSON,  FIRM OR CORPORATION OFFERING FOR SALE OR SELLING ANY
MOTOR FUEL TO THE PUBLIC OPERATING WITHIN A POLITICAL  SUBDIVISION  THAT
HAS  ENACTED A LOCAL ZONING ORDINANCE OR LOCAL LAW REGARDING ADVERTISING
MEDIUMS THAT PREVENT COMPLIANCE WITH THE REQUIREMENTS  OF  THIS  SECTION
MAY  APPLY  TO  THE  COMMISSIONER  OF  AGRICULTURE  AND  MARKETS  FOR AN

S. 7087--A                          3

EXEMPTION FROM THE REQUIREMENTS OF THIS SECTION OR A MODIFIED COMPLIANCE
SCHEME THAT ADDRESSES THE ISSUE PREVENTING COMPLIANCE WITH THE  REQUIRE-
MENTS  OF  THIS  SECTION.    THE COMMISSIONER OF AGRICULTURE AND MARKETS
SHALL,  FOLLOWING  AN  INVESTIGATION,  AT  HIS  OR  HER SOLE DISCRETION,
APPROVE OR DENY THE REQUEST FOR AN EXEMPTION OR MODIFICATION.
  6. NOTHING IN THIS SECTION SHALL APPLY TO SIGNS OR  PLACARDS  REQUIRED
TO  BE  POSTED PURSUANT TO SUBDIVISION FIVE OF SECTION ONE HUNDRED NINE-
TY-TWO OF THE AGRICULTURE AND MARKETS LAW.
  7. NOTHING IN THIS SECTION PROHIBITS ANY PERSON, FIRM  OR  CORPORATION
WHO  HAS  POSTED OR DISPLAYED A SIGN OR ADVERTISING MEDIUM IN COMPLIANCE
WITH THIS SECTION FROM DISPLAYING  ADDITIONAL  PRICING  SIGNS,  PROVIDED
THAT  SUCH  ADDITIONAL  PRICING SIGNS ARE OF SMALLER SIZE THAN THE MEDIA
REQUIRED PURSUANT TO SUBDIVISION TWO OF THIS SECTION AND THE  ADDITIONAL
PRICING SIGNS DO NOT OBSTRUCT OR INTERFERE WITH THE REQUIRED ADVERTISING
MEDIUM.
  S 2. Subparagraph (iii) of paragraph a of subdivision 5 of section 192
of  the  agriculture  and  markets law, as amended by chapter 101 of the
laws of 1986, is amended to read as follows:
  (iii) where  a  multiple  product  dispensing  device  is  capable  of
dispensing  multiple products at multiple prices, then the selling price
per gallon [may] SHALL be posted thereon with numerals at least one-half
that height and one-half that width required by subparagraph (i) of this
paragraph, although numerals  representing  tenths  of  a  cent  may  be
displayed  at  no less than one-half those dimensions which disclose the
selling price per gallon of such motor fuel dispensed therefrom.
  S 3. The agriculture and markets  law  is  amended  by  adding  a  new
section 192-h to read as follows:
  S  192-H. ADVERTISING MEDIUM; MOTOR FUEL SALES. 1. THE TERM "ADVERTIS-
ING MEDIUM," AS USED IN THIS SECTION, SHALL MEAN A STREET  SIGN  LOCATED
WITHIN  TEN  FEET  OF  THE  MAIN ENTRANCE OF THE PLACE OF BUSINESS OR AS
CLOSE AS PRACTICABLE.
  2. A.  IN THE EVENT THAT THE SAME GRADE  OF  MOTOR  FUEL  IS  SOLD  AT
DIFFERENT PRICES FROM ANY SINGLE PLACE OF BUSINESS, AND THE PRICES DEVI-
ATE  BY  MORE  THAN SEVEN PERCENT FOR THE SAME GRADE OF MOTOR FUEL, THEN
THE PLACE OF BUSINESS MUST HAVE AN ADVERTISING MEDIUM THAT: (I) COMPLIES
WITH THIS SECTION; (II) DISPLAYS AT  LEAST  THE  HIGHER  OF  THE  PRICES
OFFERED  FOR THAT GRADE OF MOTOR FUEL; AND (III) IS A STREET SIGN, WHICH
IS AT LEAST SIX FEET HIGH AND FOUR FEET WIDE AND AT LEAST EIGHT FEET OFF
THE GROUND.
  B. IN THE EVENT THAT THE SAME GRADE OF MOTOR FUEL IS SOLD AT DIFFERENT
PRICES FROM ANY SINGLE PLACE OF BUSINESS, AND THE PRICES DEVIATE BY LESS
THAN SEVEN PERCENT FOR THE SAME GRADE OF MOTOR FUEL  AND  THE  PLACE  OF
BUSINESS  SOLELY  DISPLAYS THE PRICE OFFERED FOR MOTOR FUEL TO CUSTOMERS
PAYING THE LOWER OF THE PRICES OFFERED, THEN THE PLACE OF BUSINESS MUST,
IN A CLEAR AND CONSPICUOUS  MANNER,  INCLUDE  A  NOTICE  EXPLAINING  THE
CONDITIONS  UNDER  WHICH  SUCH  FUEL  IS  SOLD  OR OFFERED FOR SALE AT A
DIFFERENT PRICE. THE CONDITIONS OF THE PRICE REDUCTION SHALL  BE  POSTED
USING  WORDS  WITH LETTERS NOT LESS THAN ONE-THIRD THE SIZE OF THE PRICE
NUMERALS.
  C. PARAGRAPH B OF THIS SUBDIVISION SHALL NOT APPLY  IF  THE  PLACE  OF
BUSINESS DISPLAYS THE HIGHER OF THE PRICES OFFERED FOR MOTOR FUEL.
  D.  THE ADVERTISING MEDIUM REQUIRED PURSUANT TO THIS SECTION SHALL, TO
THE  EXTENT  PRACTICABLE, BE CLEARLY VISIBLE FROM EACH STREET OR HIGHWAY
WHICH HAS A MOTOR VEHICLE ACCESS POINT TO THE PLACE  OF  BUSINESS.  WHEN
THE  PLACE  OF  BUSINESS IS SITUATED AT AN INTERSECTION, THE ADVERTISING
MEDIUM SHALL, TO THE EXTENT PRACTICABLE, BE CLEARLY  VISIBLE  FROM  EACH

S. 7087--A                          4

STREET OF THE INTERSECTION. FOR THE PURPOSES OF THIS SECTION, MOTOR FUEL
DOES NOT INCLUDE PROPANE.
  E.  THIS  SUBDIVISION SHALL NOT APPLY TO DISCOUNTS OR PRICE REDUCTIONS
NOT AVAILABLE TO THE GENERAL PUBLIC,  INCLUDING,  BUT  NOT  LIMITED  TO,
DISCOUNTS  OR  PRICE REDUCTIONS PROVIDED PURSUANT TO AN AWARDS, REWARDS,
LOYALTY, OR PROMOTIONAL PROGRAM.
  3. ALL LETTERS, WORDS, FIGURES, OR NUMERALS  WHICH  ARE  PART  OF  THE
ADVERTISING MEDIA REQUIRED BY SUBDIVISION TWO OF THIS SECTION SHALL HAVE
A HEAVY TYPE FACE OR STROKE, SHALL BE CLEARLY VISIBLE, AND OF A COLOR OR
TINT  THAT  WILL  CONTRAST THE LETTERS, WORDS, FIGURES, OR NUMERALS WITH
THE BACKGROUND OF THE ADVERTISING MEDIA.  THE  HEIGHT  OF  THE  LETTERS,
FIGURES,  AND NUMERALS, EXCEPT THE LETTER "L" AND NUMERAL ONE, SHALL NOT
BE MORE THAN TWICE THE WIDTH.
  4. A. FAILURE TO COMPLY WITH THE  PROVISIONS  OF  THIS  SECTION  SHALL
SUBJECT  A  PERSON, FIRM OR CORPORATION OFFERING FOR SALE OR SELLING ANY
MOTOR FUEL TO THE PUBLIC TO A  CIVIL  PENALTY  OF  UP  TO  FIVE  HUNDRED
DOLLARS  FOR  A  FIRST  OFFENSE, UP TO ONE THOUSAND DOLLARS FOR A SECOND
OFFENSE, AND UP TO TEN  THOUSAND  DOLLARS  FOR  A  THIRD  OR  SUBSEQUENT
OFFENSE.
  B.  THE PROVISIONS OF THIS SECTION MAY BE ENFORCED CONCURRENTLY BY THE
DIRECTOR OF A MUNICIPAL CONSUMER AFFAIRS OFFICE, OR BY THE  TOWN  ATTOR-
NEY,  CITY  CORPORATION  COUNSEL,  OR OTHER LAWFUL DESIGNEE OF A MUNICI-
PALITY OR LOCAL GOVERNMENT, AND ALL MONEYS COLLECTED UNDER THIS  SECTION
SHALL BE RETAINED BY SUCH MUNICIPALITY OR LOCAL GOVERNMENT.
  C.  ANY  PERSON,  FIRM OR CORPORATION OFFERING FOR SALE OR SELLING ANY
MOTOR FUEL TO THE PUBLIC OPERATING WITHIN A POLITICAL  SUBDIVISION  THAT
HAS  ENACTED A LOCAL ZONING ORDINANCE OR LOCAL LAW REGARDING ADVERTISING
MEDIUMS THAT PREVENT COMPLIANCE WITH THE REQUIREMENTS  OF  THIS  SECTION
MAY  APPLY TO THE COMMISSIONER FOR AN EXEMPTION FROM THE REQUIREMENTS OF
THIS SECTION OR A MODIFIED COMPLIANCE SCHEME THAT  ADDRESSES  THE  ISSUE
PREVENTING  COMPLIANCE  WITH  THE  REQUIREMENTS  OF  THIS SECTION.   THE
COMMISSIONER SHALL, FOLLOWING AN  INVESTIGATION,  AT  HIS  OR  HER  SOLE
DISCRETION,  APPROVE  OR  DENY THE REQUEST FOR AN EXEMPTION OR MODIFICA-
TION.
  5. THE COMMISSIONER SHALL PROMULGATE RULES AND  REGULATIONS  NECESSARY
OR  APPROPRIATE  TO  CARRY OUT THE PROVISIONS OF THIS SECTION, AND SHALL
MAKE AVAILABLE ON THE DEPARTMENT'S WEBSITE A SUMMARY OF  THE  PROVISIONS
OF THIS SECTION AND ANY REGULATIONS PROMULGATED THEREUNDER.
  6.  A.  THE  PROVISIONS OF THIS SECTION SHALL NOT APPLY TO ANY PERSON,
FIRM OR CORPORATION OFFERING FOR SALE OR SELLING ANY MOTOR FUEL  TO  THE
PUBLIC OPERATING WITHIN A POLITICAL SUBDIVISION THAT HAS ALREADY ENACTED
AND  CONTINUES  IN  EFFECT A LOCAL LAW, ORDINANCE, RULE OR REGULATION IN
SUBSTANTIAL CONFORMITY WITH THIS SECTION. THE PROVISIONS OF THIS SECTION
SHALL NOT BE CONSTRUED TO LIMIT IN ANY WAY THE AUTHORITY OF A  POLITICAL
SUBDIVISION  TO  ENACT, IMPLEMENT AND CONTINUE TO ENFORCE LOCAL LAWS AND
REGULATIONS GOVERNING THE SALE OF MOTOR FUELS THAT WERE IN EFFECT  PRIOR
TO  THE  EFFECTIVE  DATE  OF  THIS  SECTION,  OR TO ENACT, IMPLEMENT AND
ENFORCE ANY AMENDMENTS THERETO AFTER THE EFFECTIVE DATE OF THIS SECTION.
THE PROVISIONS OF THIS SECTION SHALL BE ENFORCED IN THE COUNTIES OUTSIDE
THE CITY OF NEW YORK BY THE COUNTY OR CITY DIRECTOR OF WEIGHTS AND MEAS-
URES, AS THE CASE MAY BE, AND IN THE CITY OF NEW YORK BY THE  DEPARTMENT
OF CONSUMER AFFAIRS.
  B.  ANY  POLITICAL  SUBDIVISION  MAY,  BY  ORDINANCE, EXEMPT SPECIFIED
GEOGRAPHIC AREAS FOR THE  PROVISIONS  OF  THIS  SECTION  FOR  SCENIC  OR
HISTORIC  PRESERVATION  PURPOSES  UPON APPROVAL OF SUCH EXEMPTION BY THE
COMMISSIONER.

S. 7087--A                          5

  7. NOTHING IN THIS SECTION SHALL APPLY TO SIGNS OR  PLACARDS  REQUIRED
TO  BE  POSTED PURSUANT TO SUBDIVISION FIVE OF SECTION ONE HUNDRED NINE-
TY-TWO OF THIS ARTICLE.
  8.  NOTHING  IN THIS SECTION PROHIBITS ANY PERSON, FIRM OR CORPORATION
WHO HAS POSTED OR DISPLAYED A SIGN OR ADVERTISING MEDIUM  IN  COMPLIANCE
WITH  THIS  SECTION  FROM  DISPLAYING ADDITIONAL PRICING SIGNS, PROVIDED
THAT SUCH ADDITIONAL PRICING SIGNS ARE OF SMALLER SIZE  THAN  THE  MEDIA
REQUIRED  PURSUANT TO SUBDIVISION TWO OF THIS SECTION AND THE ADDITIONAL
PRICING SIGNS DO NOT OBSTRUCT OR INTERFERE WITH THE REQUIRED ADVERTISING
MEDIUM.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided that the commissioner  of  agricul-
ture  and  markets is authorized to promulgate any rules and regulations
necessary to implement this act on or before its effective date.

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