Bill Text: NJ S2856 | 2012-2013 | Regular Session | Amended

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Bill Title: Allows distributor, refiner, wholesaler, or supplier to discriminate in tank wagon price of branded motor fuel in certain circumstances.*

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-12-12 - Reported from Senate Committee with Amendments, 2nd Reading [S2856 Detail]

Download: New_Jersey-2012-S2856-Amended.html

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[First Reprint]

SENATE, No. 2856

STATE OF NEW JERSEY

215th LEGISLATURE

 

INTRODUCED JUNE 13, 2013

 

 

Sponsored by:

Senator  GERALD CARDINALE

District 39 (Bergen and Passaic)

Senator  PAUL A. SARLO

District 36 (Bergen and Passaic)

 

 

 

 

SYNOPSIS

     Allows distributor, refiner, wholesaler, or supplier to discriminate in tank wagon price of branded motor fuel in certain circumstances. 

 

CURRENT VERSION OF TEXT

     As reported by the Senate Commerce Committee on December 12, 2013, with amendments.

  

An Act concerning discrimination in the pricing of certain motor fuels and amending P.L.1953, c.413.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  Section 4 of P.L.1953, c.413 (C.56:6-22) is amended to read as follows:

     4.  It shall be unlawful and a violation of this act for any distributor, refiner, wholesaler or supplier, with intent to injure competitors or destroy or substantially lessen competition:

     (a) To offer, directly or indirectly, a rebate, concession, allowance, discount or benefit, of any kind or nature whatsoever, in connection with the sale or distribution of motor fuel or other products marketed by the distributor, refiner, wholesaler or supplier except that this shall not apply to discounts uniformly applied for timely payments, quantity, or quality;  or

     (b) To lease or make a contract on condition, promise, agreement or understanding, where the effect of such lease, contract on condition, promise, agreement or understanding may be to substantially lessen competition that the lessee or purchaser thereof shall not use or deal in goods, wares, merchandise,  supplies or other commodities of a competitor of such distributor, refiner,  wholesaler or supplier except that this shall not apply to tanks or pumps if  furnished by the distributor, refiner, wholesaler or supplier to be used in the  distribution of its motor fuel; or

     (c) To discriminate, either directly or indirectly, in tank wagon price between different retail dealers purchasing the same grade, quality or quantity of branded motor fuel [, except to meet competition] , except to ¹: (1)¹ reflect the actual cost of transportation to the retail dealer based on the geographic location of the retail dealer and the distance from the distribution center ¹; or (2) negotiate a contract for tank wagon price using a formula that is negotiated and agreed to between contract parties¹ .

     This subsection shall not apply to ¹consignment sales of motor fuels and¹ any distributor, refiner, wholesaler, and supplier, or an affiliate or subsidiary thereof, owning or leasing fewer than 75 properties throughout the nation .

     (d) Any distributor, refiner, wholesaler or supplier who violates the provisions of this section shall be guilty of a misdemeanor.

(cf: P.L.1953, c.413, s.4)

 

     ¹2. (New section)   Subsection (c) of section 4 of P.L.1953, c.413 (C.56:6-22) shall not apply to any contract existing before the effective date of this act.  On or after the effective date of this act, any contract for motor fuel negotiated and entered into between a distributor, refiner, wholesaler or supplier and a retail dealer shall be in compliance with subsection (c) of section 4 of P.L.1953, c.413 (C.56:6-22).¹

 

     ¹[2.] 3.¹  This act shall take effect immediately.