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Assembly Bill A986

2011-2012 Legislative Session

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

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2011-A986 (ACTIVE) - Details

Law Section:
General Business Law
Laws Affected:
Add ยง199-o, Gen Bus L
Versions Introduced in 2009-2010 Legislative Session:
A4913

2011-A986 (ACTIVE) - Summary

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

2011-A986 (ACTIVE) - Bill Text download pdf 

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

                                   986

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by M. of A. PHEFFER -- read once and referred to the Commit-
  tee on Economic Development, Job Creation, Commerce and Industry

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.
                                                           LBD00929-01-1

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