Bill Text: NY S00855 | 2013-2014 | General Assembly | Introduced


Bill Title: Relates to zone pricing of gasoline.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-01-08 - REFERRED TO CONSUMER PROTECTION [S00855 Detail]

Download: New_York-2013-S00855-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                          855
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                      (PREFILED)
                                    January 9, 2013
                                      ___________
       Introduced  by  Sen.  PARKER -- 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 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    S  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    S  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
   17  posted  terminal price [or] AND ANY ADDITIONAL COSTS where the effect is
   18  to injure competition.
   19    S 4. Subdivision 2 of section 399-ee of the general business  law,  as
   20  added by chapter 579 of the laws of 2008, is amended to read as follows:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02886-01-3
       S. 855                              2
    1    2.  No wholesaler, OR DEALER shall engage in zone pricing with respect
    2  to any motor fuel of like grade or quality, WHICH IS SUPPLIED TO  DEALER
    3  OPERATED RETAIL OUTLETS.
    4    S  5.  Subdivision 3 of section 399-ee of the general business law, is
    5  amended by adding a new undesignated paragraph to read as follows:
    6    NOTWITHSTANDING ANY  RIGHT  OF  ACTION  TO  THE  ATTORNEY  GENERAL  AS
    7  PROVIDED IN THIS SECTION, A WHOLESALER OR DEALER WHO HAS BEEN INJURED BY
    8  REASON  OF A VIOLATION OF THIS SECTION MAY BRING AN ACTION IN HIS OR HER
    9  OWN NAME TO ENJOIN SUCH UNLAWFUL ACT, HOWEVER, NO DAMAGES OF ANY  NATURE
   10  SHALL BE RECOVERABLE IN SUCH ACTION.
   11    S 6. Section 2 of chapter 579 of the laws of 2008, amending the gener-
   12  al business law relating to zone pricing of gasoline, is amended to read
   13  as follows:
   14    S 2. Legislative findings and intent. The legislature hereby finds and
   15  declares  that for the past several years motor fuel prices have greatly
   16  fluctuated. In some cases, price  fluctuations  are  caused  by  natural
   17  market  conditions.  In other cases, fluctuations result from artificial
   18  manipulation of the market. One such artificial pricing manipulation  is
   19  zone  pricing. Zone pricing is the setting of different wholesale prices
   20  for retail motor fuel [that operate in different geographic areas] BASED
   21  ON GEOGRAPHIC LOCATION. Zone pricing increases the price of retail motor
   22  fuel for certain consumers, leading to inequities  among  consumers  and
   23  regions  around  the state.   Therefore, the legislature hereby declares
   24  that while natural market occurrences may lead  to  price  fluctuations,
   25  artificial  changes  in  motor  fuel prices unfairly harm many consumers
   26  around the state.
   27    S 7. This act shall take effect immediately.
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