A04788 Summary:

BILL NOA04788
 
SAME ASNo same as
 
SPONSORThiele (MS)
 
COSPNSRReilly, Stevenson
 
MLTSPNSRBurling, Calhoun, Magee, Sayward, Sweeney
 
Add Art 24-D S375, Gen Bus L
 
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.
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A04788 Actions:

BILL NOA04788
 
02/07/2011referred to economic development
01/04/2012referred to economic development
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A04788 Floor Votes:

There are no votes for this bill in this legislative session.
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A04788 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4788
 
                               2011-2012 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 7, 2011
                                       ___________
 
        Introduced  by  M. of A. THIELE, REILLY, STEVENSON -- Multi-Sponsored by
          -- M. of A. BURLING, CALHOUN, MAGEE, SAYWARD, 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    §  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.
                                                                   LBD04659-01-1

        A. 4788                             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    §  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.
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