Assembly Bill A5187

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 3496                                                  A. 5187
 
                        2019-2020 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                             February 7, 2019
                                ___________
 
 IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
   ed,  and  when  printed  to  be committed to the Committee on Consumer
   Protection
 
 IN ASSEMBLY -- Introduced by M. of A. THIELE, COOK, GALEF, JAFFEE, RAIA,
   SANTABARBARA, ZEBROWSKI, McDONOUGH, ROZIC, L. ROSENTHAL -- Multi-Spon-
   sored by -- M. of A. ABBATE, BLANKENBUSH,  CUSICK,  DenDEKKER,  ENGLE-
   BRIGHT,  PALUMBO,  RA  --  read  once and referred to the Committee on
   Economic Development
 
 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 zone pricing for retail motor fuel based on geographic location
 
   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.
   §  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] WHICH IS SUPPLIED BY THE SAME TERMINAL FACILITY.
   §  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  [arbitrary]  ESTABLISHMENT  OF  price
 differences  BASED  ON  THE  GEOGRAPHICAL  LOCATION OF THE RETAIL OUTLET
 within the relevant geographic market, [based on] WITHOUT REGARD TO  the

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

                                                            LBD03170-01-9

 S. 3496                             2                            A. 5187
 
 posted  terminal price [or] AND ANY ADDITIONAL COSTS where the effect is
 to injure competition.
   §  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:
   2. No wholesaler OR DEALER shall engage in zone pricing  with  respect
 to  any motor fuel of like grade or quality, WHICH IS SUPPLIED TO DEALER
 OPERATED RETAIL OUTLETS.
   § 5. Subdivision 3 of section 399-ee of the general  business  law  is
 amended by adding a new undesignated paragraph to read as follows:
   NOTWITHSTANDING  ANY  RIGHT  OF  ACTION  TO  THE  ATTORNEY  GENERAL AS
 PROVIDED IN THIS SECTION, A WHOLESALER OR DEALER WHO HAS BEEN INJURED BY
 REASON OF A VIOLATION OF THIS SECTION MAY BRING AN ACTION IN HIS OR  HER
 OWN  NAME TO ENJOIN SUCH UNLAWFUL ACT, HOWEVER, NO DAMAGES OF ANY NATURE
 SHALL BE RECOVERABLE IN SUCH ACTION.
   § 6. Section 2 of chapter 579 of the laws of 2008, amending the gener-
 al business law relating to zone pricing of gasoline, is amended to read
 as follows:
   § 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.
   §  7.  This  act shall take effect on the thirtieth day after it shall
 have become a law.