NY State Senate Bill 2019-S4460

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to consumer protection
Mar 12, 2019	referred to consumer protection

2019-S4460 (ACTIVE) - Details

See Assembly Version of this Bill:: A5831
Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Amd §399-ee, Gen Bus L; amd §2, Chap 579 of 2008
Versions Introduced in Other Legislative Sessions:: 2015-2016: A3591
2017-2018: A3249
2021-2022: S5740
2023-2024: S2762

2019-S4460 (ACTIVE) - Summary

Makes certain amendments concerning zone pricing of gasoline.

2019-S4460 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4460

SPONSOR: COMRIE
 
TITLE OF BILL:  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 gaso-
line, in relation to making certain technical changes

 
PURPOSE:

To modify the law prohibiting the practice of zone pricing to insure
that all parties in the chain of supply are covered by the law.

 
SUMMARY OF PROVISIONS:

Section 1: adds a new definition of "additional costs" which is defined
as all replacement and transportation costs and taxes incurred.

Section 2: amends general business law section 399-ee(l) (g) to change
the definition of "relevant geographic market" to include the phrase
"among retail outlets".

Section 3: amends section 399-ee(1) (m) of the general business law to
adjust the definition of zone pricing to read "the establishment of
arbitrary price differences based on the geographical location of the
retail outlet within the relevant geographic market, without regard to
the posted terminal price and any additional" costs where the effect is
to injure competition."

Section 4: amends section 399-ee(2) so that no producer, refiner shall
engage in zone pricing with respect to any motor fuel or like grade or
quality, which is supplied to a dealer or wholesaler which operates such
outlets.

Section 5: makes a technical change to the language in the legislative
intent section of the original bill.

 
EXISTING LAW:

Chapter 579 of the Laws of 2008 prohibits the practice of zone pricing
of gasoline.

 
JUSTIFICATION:

Chapter 579 of the Laws of 2008 created a new section of the general
business law to prohibit the practice of zone pricing of gasoline which
is the use of arbitrary price differences based on the geographic
location of the retail outlet. This bill makes technical changes to the
law to insure that all parties in the supply chain of retail gasoline
are covered by the law.

 
LEGISLATIVE HISTORY:

2018:A03249(Brindisi)- Consumer Affairs and Protection
2017:A03249(Brindisi)- Consumer Affairs and Protection
2016:A03591(Brindisi)- Consumer Affairs and Protection
2015:A03591(Brindisi)- Consumer Affairs and Protection

 
FISCAL IMPLICATIONS:
None.

 
EFFECTIVE DATE:
Thirtieth day after it shall have become a law.

2019-S4460 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4460
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 12, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 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.
   §  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.
   §  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.
   §  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] 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08286-01-9

 S. 4460                             2
 
   § 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:
   § 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.
   § 6. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.

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Senate Bill S4460

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2019-S4460 (ACTIVE) - Details

2019-S4460 (ACTIVE) - Summary

2019-S4460 (ACTIVE) - Sponsor Memo

2019-S4460 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4460

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Sponsored By

Leroy Comrie

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

2019-S4460 (ACTIVE) - Details

2019-S4460 (ACTIVE) - Summary

2019-S4460 (ACTIVE) - Sponsor Memo

2019-S4460 (ACTIVE) - Bill Text download pdf

Comments