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A00234 Summary:

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A00234 Floor Votes:

A00234 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         234--A
 
                               2009-2010 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 7, 2009
                                       ___________
 
        Introduced  by M. of A. BRADLEY -- Multi-Sponsored by -- M. of A. THIELE
          -- read once and referred to the Committee  on  Economic  Development,
          Job  Creation,  Commerce  and  Industry  -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee
 

        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 making certain technical changes
 
          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 among retail outlets.
    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 establishment of arbitrary price differ-
    15  ences based on the geographical location of the retail outlet within the
    16  relevant geographic market, [based on]  without  regard  to  the  posted
    17  terminal  price  [or]  and  any  additional costs where the effect is to
    18  injure competition.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

                                                                   LBD02870-02-9
        A. 234--A                           2
 
     1    § 4. Subdivision 2 of section 399-ee of the general business  law,  as
     2  added by chapter 579 of the laws of 2008, is amended to read as follows:
     3    2.  No  producer,  refiner, wholesaler, or dealer shall engage in zone
     4  pricing with respect to any motor fuel of like grade or  quality,  which
     5  is supplied to dealer operated retail outlets.
     6    § 5. Section 2 of chapter 579 of the laws of 2008 amending the general
     7  business  law relating to zone pricing of gasoline is amended to read as
     8  follows:
     9    § 2. Legislative findings and intent. The legislature hereby finds and
    10  declares that for the past several years motor fuel prices have  greatly

    11  fluctuated.  In  some  cases,  price  fluctuations are caused by natural
    12  market conditions. In other cases, fluctuations result  from  artificial
    13  manipulation  of the market. One such artificial pricing manipulation is
    14  zone pricing. Zone pricing is the setting of different wholesale  prices
    15  for retail motor fuel [that operate in different geographic areas] based
    16  on geographic location. Zone pricing increases the price of retail motor
    17  fuel  for  certain  consumers, leading to inequities among consumers and
    18  regions around the state.   Therefore, the legislature  hereby  declares
    19  that  while  natural  market occurrences may lead to price fluctuations,
    20  artificial changes in motor fuel prices  unfairly  harm  many  consumers
    21  around the state.
    22    §  6.  This  act shall take effect on the thirtieth day after it shall
    23  have become a law.