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A01826 Summary:

BILL NOA01826
 
SAME ASNo Same As
 
SPONSORPretlow
 
COSPNSR
 
MLTSPNSR
 
Amd §199-j, Gen Bus L
 
Nullifies agreements which prohibits a dealer, who either directly or through an affiliate owns a service station including the tanks and pumps or where a dealer provides environmental pollution insurance coverage for the tanks and pumps of not less than one million dollars in the aggregate and who dedicates a tank for sale of unbranded motor fuel, or any provision of a franchise with a refiner which prohibits a distributor from purchasing or selling unbranded motor fuel from a person or firm other than the refiner or limits the quantity of such unbranded motor fuel to be purchased from another person or firm or any provision of a franchise which directly or indirectly discourages a dealer or distributor from purchasing or selling such unbranded motor fuels from another person or firm.
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A01826 Actions:

BILL NOA01826
 
01/11/2021referred to economic development
01/05/2022referred to economic development
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A01826 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1826
 
SPONSOR: Pretlow
  TITLE OF BILL: An act to amend the general business law, in relation to authorizing gas stations to purchase motor fuel from alternative suppliers   PURPOSE: To enable certain gas stations to purchase motor fuel from alternative suppliers.   SUMMARY OF PROVISIONS: Section 1 amends subdivision 3 of section 199-j of the General Business Law regarding distributor supply agreements and franchise provisions. Section 2 sets forth effective date.   JUSTIFICATION: Gasoline prices are primarily driven by the law of supply and demand, the provisions of which are difficult to alter. The recent escalation in the price of gasoline, has caused a fiscal hardship for consumers, who are forced to utilize funds which would otherwise be used for other expenses. This bill would attempt to provide some relief by enabling franchise owners to purchase motor fuel from alternative suppliers which could lower the price of the gasoline they sell and, in turn, create an overall more competitive marketplace for consumers.   LEGISLATIVE HISTORY: 2019-2020 A3128 referred to economic development 2017-2018 referred to economic development 2015- 2016 A2586 referred to economic development A3620 2013-14 referred to economic development A7663 New bill, referred to economic development   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: The sixtieth day after it shall have become law and shall apply to any franchise agreements entered into on or after such date.
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A01826 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1826
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 11, 2021
                                       ___________
 
        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Economic Development
 
        AN ACT to amend the general business law, in relation to authorizing gas
          stations to purchase motor fuel from alternative suppliers
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 3 of section 199-j of the general business law,
     2  as  added  by  chapter  578  of  the laws of 2008, is amended to read as
     3  follows:
     4    3. Franchise provisions. Any provision of a franchise with  a  refiner
     5  or  a  supply agreement with a distributor which prohibits a dealer, who
     6  either directly or through an affiliate owns a service station including
     7  the tanks and pumps or where a dealer provides  environmental  pollution
     8  insurance  coverage for the tanks and pumps of not less than one million
     9  dollars in the aggregate and who dedicates a tank for sale of  unbranded
    10  motor fuel, or any provision of a franchise with a refiner which prohib-
    11  its a distributor from purchasing or selling unbranded motor fuel from a
    12  person  or  firm  other  than the refiner or limits the quantity of such
    13  unbranded motor fuel to be purchased from another person or firm or  any
    14  provision  of  a  franchise  which  directly or indirectly discourages a
    15  dealer or distributor from purchasing or selling  such  unbranded  motor
    16  fuels  from another person or firm, shall be null and void. For purposes
    17  of this subdivision and subdivisions four, five and six of this  section
    18  the following terms shall have the following meanings:
    19    (a)  "refiner" means any person, firm or corporation who owns, leases,
    20  operates, controls or supervises a commercial entity producing  gasoline
    21  or diesel motor fuel;
    22    (b)  "distributor" means any person other than a refiner or dealer who
    23  purchases motor fuel at a terminal facility and supplies motor  fuel  to
    24  service stations; and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00243-01-1

        A. 1826                             2
 
     1    (c)  "unbranded  motor  fuel"  means  motor  fuel which does not use a
     2  trademark, trade name, service mark, or other identifying symbol or name
     3  owned by a refiner.
     4    §  2.  This  act  shall take effect on the sixtieth day after it shall
     5  have become a law and shall apply to any  franchise  agreements  entered
     6  into on or after such date.
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