Bill Text: NY A05187 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to zone pricing of gasoline.

Spectrum: Slight Partisan Bill (Democrat 12-5)

Status: (Introduced) 2019-04-25 - advanced to third reading cal.193 [A05187 Detail]

Download: New_York-2019-A05187-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
            S. 3496                                                  A. 5187
                               2019-2020 Regular Sessions
                SENATE - ASSEMBLY
                                    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:
     1    Section 1. Paragraph (a) of subdivision 1 of  section  399-ee  of  the
     2  general  business  law is relettered paragraph (a-1) and a new paragraph
     3  (a) is added to read as follows:
     4    (a) "Additional costs" means all replacement and transportation  costs
     5  and taxes incurred.
     6    §  2.  Paragraph (g) of subdivision 1 of section 399-ee of the general
     7  business law, as added by chapter 579 of the laws of 2008, is amended to
     8  read as follows:
     9    (g) "Relevant geographic market" means the geographic area [of  effec-
    10  tive competition] which is supplied by the same terminal facility.
    11    §  3.  Paragraph (m) of subdivision 1 of section 399-ee of the general
    12  business law, as added by chapter 579 of the laws of 2008, is amended to
    13  read as follows:
    14    (m) "Zone  pricing"  means  the  [arbitrary]  establishment  of  price
    15  differences  based  on  the  geographical  location of the retail outlet
    16  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
     1  posted  terminal price [or] and any additional costs where the effect is
     2  to injure competition.
     3    §  4.  Subdivision 2 of section 399-ee of the general business law, as
     4  added by chapter 579 of the laws of 2008, is amended to read as follows:
     5    2. No wholesaler or dealer shall engage in zone pricing  with  respect
     6  to  any motor fuel of like grade or quality, which is supplied to dealer
     7  operated retail outlets.
     8    § 5. Subdivision 3 of section 399-ee of the general  business  law  is
     9  amended by adding a new undesignated paragraph to read as follows:
    10    Notwithstanding  any  right  of  action  to  the  attorney  general as
    11  provided in this section, a wholesaler or dealer who has been injured by
    12  reason of a violation of this section may bring an action in his or  her
    13  own  name to enjoin such unlawful act, however, no damages of any nature
    14  shall be recoverable in such action.
    15    § 6. Section 2 of chapter 579 of the laws of 2008, amending the gener-
    16  al business law relating to zone pricing of gasoline, is amended to read
    17  as follows:
    18    § 2. Legislative findings and intent. The legislature hereby finds and
    19  declares that for the past several years motor fuel prices have  greatly
    20  fluctuated.  In  some  cases,  price  fluctuations are caused by natural
    21  market conditions. In other cases, fluctuations result  from  artificial
    22  manipulation  of the market. One such artificial pricing manipulation is
    23  zone pricing. Zone pricing is the setting of different wholesale  prices
    24  for retail motor fuel [that operate in different geographic areas] based
    25  on geographic location. Zone pricing increases the price of retail motor
    26  fuel  for  certain  consumers, leading to inequities among consumers and
    27  regions around the state.   Therefore, the legislature  hereby  declares
    28  that  while  natural  market occurrences may lead to price fluctuations,
    29  artificial changes in motor fuel prices  unfairly  harm  many  consumers
    30  around the state.
    31    §  7.  This  act shall take effect on the thirtieth day after it shall
    32  have become a law.
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