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S06255 Summary:

BILL NOS06255
 
SAME ASSAME AS A04112
 
SPONSORTHOMAS
 
COSPNSRRITCHIE
 
MLTSPNSR
 
Amd §399-ee, Gen Bus L; amd §2, Chap 579 of 2008
 
Relates to zone pricing of gasoline.
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S06255 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6255
 
                               2021-2022 Regular Sessions
 
                    IN SENATE
 
                                     April 19, 2021
                                       ___________
 
        Introduced  by  Sen.  THOMAS -- 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    §  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    §  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    § 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:
    21    2.  No  wholesaler or dealer shall engage in zone pricing with respect
    22  to any motor fuel of like grade or quality, which is supplied to  dealer
    23  operated retail outlets.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05702-01-1

        S. 6255                             2
 
     1    §  5.  Subdivision  3 of section 399-ee of the general business law is
     2  amended by adding a new undesignated paragraph to read as follows:
     3    Notwithstanding  any  right  of  action  to  the  attorney  general as
     4  provided in this section, a wholesaler or dealer who has been injured by
     5  reason of a violation of this section may bring an action in his or  her
     6  own  name to enjoin such unlawful act, however, no damages of any nature
     7  shall be recoverable in such action.
     8    § 6. Section 2 of chapter 579 of the laws of 2008, amending the gener-
     9  al business law relating to zone pricing of gasoline, is amended to read
    10  as follows:
    11    § 2. Legislative findings and intent. The legislature hereby finds and
    12  declares that for the past several years motor fuel prices have  greatly
    13  fluctuated.  In  some  cases,  price  fluctuations are caused by natural
    14  market conditions. In other cases, fluctuations result  from  artificial
    15  manipulation  of the market. One such artificial pricing manipulation is
    16  zone pricing. Zone pricing is the setting of different wholesale  prices
    17  for retail motor fuel [that operate in different geographic areas] based
    18  on geographic location. Zone pricing increases the price of retail motor
    19  fuel  for  certain  consumers, leading to inequities among consumers and
    20  regions around the state.   Therefore, the legislature  hereby  declares
    21  that  while  natural  market occurrences may lead to price fluctuations,
    22  artificial changes in motor fuel prices  unfairly  harm  many  consumers
    23  around the state.
    24    §  7.  This  act shall take effect on the thirtieth day after it shall
    25  have become a law.
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