Bill Text: NY A07011 | 2013-2014 | General Assembly | Introduced

---

Bill Title: Prohibits a producer or refiner from selling, transferring, or assigning interest in a retail outlet leased to a motor fuel dealer unless such producer or refiner makes certain offers to such dealer.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2014-05-15 - advanced to third reading cal.692 [A07011 Detail]

Download: New_York-2013-A07011-Introduced.html

---

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7011
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                    April 29, 2013
                                      ___________
       Introduced  by M. of A. THIELE, STEVENSON -- Multi-Sponsored by -- M. of
         A. MAGEE, SWEENEY -- read  once  and  referred  to  the  Committee  on
         Economic Development
       AN  ACT  to amend the general business law, in relation to prohibiting a
         producer or refiner from selling, transferring, or assigning  interest
         in  a  retail outlet leased to a dealer unless the producer or refiner
         makes certain offers of the producer's or refiner's interest  to  such
         dealer
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The general business law is amended by adding a new article
    2  24-D to read as follows:
    3                                 ARTICLE 24-D
    4                 SALE OR TRANSFER OF GASOLINE RETAIL OUTLETS
    5  SECTION 375. SALE OR TRANSFER OF GASOLINE RETAIL OUTLETS.
    6    S 375. SALE OR TRANSFER OF GASOLINE  RETAIL  OUTLETS.    (A)  FOR  THE
    7  PURPOSES OF THIS SECTION:
    8    (1)  "PRODUCER"  MEANS  A  PERSON WHO PURCHASES COMPONENT ELEMENTS AND
    9  COMBINES THEM TO PRODUCE GASOLINE PRODUCTS.
   10    (2) "BOOK VALUE" MEANS ACTUAL COST LESS ACTUAL DEPRECIATION TAKEN.
   11    (3) "DEALER" MEANS ANY PERSON, OTHER THAN A REFINER OR WHOLESALER, WHO
   12  IS ENGAGED IN THE BUSINESS OF SELLING MOTOR FUEL AT A RETAIL OUTLET.
   13    (4) "REFINER" MEANS ANY PERSON WHO PRODUCES AND  STORES  OR  EXCHANGES
   14  MOTOR  FUEL AT A TERMINAL FACILITY AND WHO SELLS OR TRANSFERS MOTOR FUEL
   15  THROUGH THE LOADING RACK AT SUCH  TERMINAL  FACILITY,  AND  INCLUDES  AN
   16  AFFILIATE OF SUCH REFINER WITH RESPECT TO SUCH AFFILIATE'S SALE OF MOTOR
   17  FUEL.
   18    (5) "RETAIL OUTLET" MEANS A FACILITY, INCLUDING LAND AND IMPROVEMENTS,
   19  WHERE MOTOR FUEL IS OFFERED FOR SALE AT RETAIL TO THE PUBLIC.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10070-01-3
       A. 7011                             2
    1    (B)(1)  EVERY  MARKETING AGREEMENT BETWEEN A REFINER OR PRODUCER AND A
    2  DEALER IS SUBJECT TO THE PROVISIONS OF  THIS  SECTION,  WHETHER  OR  NOT
    3  EXPRESSLY SET FORTH OR STATED IN SUCH AGREEMENT.
    4    (2)  THIS  SECTION  SHALL  NOT APPLY TO TRANSACTIONS OTHERWISE COVERED
    5  UNDER THE FEDERAL PETROLEUM MARKETING PRACTICES ACT.
    6    (C) IF A PRODUCER OR A REFINER OWNS A FEE SIMPLE INTEREST IN A  RETAIL
    7  OUTLET  LEASED TO A DEALER, THE PRODUCER OR REFINER MAY NOT SELL, TRANS-
    8  FER, OR ASSIGN TO ANOTHER PERSON THE PRODUCER'S OR REFINER'S INTEREST IN
    9  THE RETAIL OUTLET UNLESS THE PRODUCER OR REFINER:
   10    (1) MAKES A BONA FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE DEALER
   11  THE PRODUCER'S OR REFINER'S INTEREST IN THE RETAIL  OUTLET,  EXCEPT  FOR
   12  SIGNS  DISPLAYING  THE  INSIGNIA  OR  ANY OTHER TRADEMARK, SERVICE MARK,
   13  COPYRIGHT, OR PATENTED EQUIPMENT OF THE PRODUCER OR REFINER; OR
   14    (2) IF APPLICABLE, OFFERS A RIGHT OF FIRST REFUSAL TO  THE  DEALER  OF
   15  ANY BONA FIDE OFFER ACCEPTABLE TO THE PRODUCER OR REFINER MADE BY ANOTH-
   16  ER PERSON TO PURCHASE THE PRODUCER'S OR REFINER'S INTEREST IN THE RETAIL
   17  OUTLET.
   18    (D) IF A PRODUCER OR REFINER LEASES A RETAIL OUTLET FROM A THIRD PARTY
   19  AND SUBLEASES THE RETAIL OUTLET TO A DEALER, THE PRODUCER OR REFINER MAY
   20  NOT SELL, TRANSFER, OR ASSIGN TO ANOTHER PERSON THE PRODUCER'S OR REFIN-
   21  ER'S INTEREST IN THE THIRD PARTY LEASE UNLESS THE PRODUCER OR REFINER:
   22    (1)(I)  MAKES  A  BONA  FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE
   23  DEALER THE PRODUCER'S OR REFINER'S INTEREST IN THE  THIRD  PARTY  LEASE;
   24  AND
   25    (II) MAKES A BONA FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE DEAL-
   26  ER THE PRODUCER'S OR REFINER'S INTEREST IN ANY IMPROVEMENTS OR EQUIPMENT
   27  OWNED  BY  THE  PRODUCER  OR  REFINER  AND LOCATED AT THE RETAIL OUTLET,
   28  EXCEPT FOR SIGNS DISPLAYING THE INSIGNIA OR ANY OTHER TRADEMARK, SERVICE
   29  MARK, COPYRIGHT, OR PATENTED EQUIPMENT OF THE PRODUCER OR REFINER, AT  A
   30  PRICE  NOT  EXCEEDING  THE  GREATER OF THE FAIR MARKET VALUE OR THE BOOK
   31  VALUE OF THE IMPROVEMENTS AND EQUIPMENT; OR
   32    (2) IF APPLICABLE, OFFERS A RIGHT OF FIRST REFUSAL TO  THE  DEALER  OF
   33  ANY BONA FIDE OFFER ACCEPTABLE TO THE PRODUCER OR REFINER MADE BY ANOTH-
   34  ER  PERSON  TO ACQUIRE THE PRODUCER'S OR REFINER'S INTEREST IN THE THIRD
   35  PARTY LEASE AND THE IMPROVEMENTS AND EQUIPMENT  LOCATED  AT  THE  RETAIL
   36  OUTLET.
   37    S  2.  This act shall take effect immediately; provided, however, that
   38  nothing in this act shall be construed to affect any retail outlet where
   39  the title to such retail outlet  was  transferred  by  the  producer  or
   40  refiner,  or  a  contract  of  sale  or  lease of such retail outlet was
   41  entered into prior to the date this act shall have become a law.