Bill Text: NY A05331 | 2015-2016 | General Assembly | Introduced


Bill Title: 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.

Sponsorship: Slight Partisan Bill (Democrat 5-3)

Status: (Introduced - Dead) 2016-05-12 - advanced to third reading cal.597 [A05331 Detail]

Download: New_York-2015-A05331-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
           S. 3815                                                  A. 5331
                              2015-2016 Regular Sessions
                             S E N A T E - A S S E M B L Y
                                   February 18, 2015
                                      ___________
       IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
         ed,  and  when  printed  to  be committed to the Committee on Consumer
         Protection
       IN ASSEMBLY -- Introduced by M. of A. THIELE, RAIA -- Multi-Sponsored by
         -- M. of A. MAGEE, OAKS, RIVERA --  read  once  and  referred  to  the
         Committee on Economic Development
       AN  ACT  to amend the general business law, in relation to prohibiting a
         producer,  distributor  or  refiner  from  selling,  transferring,  or
         assigning  interest  in  a retail outlet leased to a dealer unless the
         producer, distributor or refiner makes certain offers of  the  produc-
         er's, distributor'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    S 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) "DISTRIBUTOR" MEANS ANY PERSON ENGAGED IN THE SALE, CONSIGNMENT OR
   14  DISTRIBUTION OF MOTOR FUELS TO DEALERS.
   15    (5) "REFINER" MEANS ANY PERSON WHO PRODUCES AND  STORES  OR  EXCHANGES
   16  MOTOR  FUEL AT A TERMINAL FACILITY AND WHO SELLS OR TRANSFERS MOTOR FUEL
   17  THROUGH THE LOADING RACK AT SUCH  TERMINAL  FACILITY,  AND  INCLUDES  AN
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08495-01-5
       S. 3815                             2                            A. 5331
    1  AFFILIATE OF SUCH REFINER WITH RESPECT TO SUCH AFFILIATE'S SALE OF MOTOR
    2  FUEL.
    3    (6) "RETAIL OUTLET" MEANS A FACILITY, INCLUDING LAND AND IMPROVEMENTS,
    4  WHERE MOTOR FUEL IS OFFERED FOR SALE AT RETAIL TO THE PUBLIC.
    5    (B)(1)  EVERY  MARKETING  AGREEMENT  BETWEEN  A  REFINER,  PRODUCER OR
    6  DISTRIBUTOR AND A DEALER IS SUBJECT TO THE PROVISIONS OF  THIS  SECTION,
    7  WHETHER OR NOT EXPRESSLY SET FORTH OR STATED IN SUCH AGREEMENT.
    8    (2)  THIS  SECTION  SHALL  NOT APPLY TO TRANSACTIONS OTHERWISE COVERED
    9  UNDER THE FEDERAL PETROLEUM MARKETING PRACTICES ACT.
   10    (C) IF A PRODUCER, REFINER OR DISTRIBUTOR OWNS A FEE  SIMPLE  INTEREST
   11  IN A RETAIL OUTLET LEASED TO A DEALER, THE PRODUCER, REFINER OR DISTRIB-
   12  UTOR MAY NOT SELL, TRANSFER, OR ASSIGN TO ANOTHER PERSON THE PRODUCER'S,
   13  REFINER'S  OR  DISTRIBUTOR'S  INTEREST  IN  THE RETAIL OUTLET UNLESS THE
   14  PRODUCER, REFINER OR DISTRIBUTOR:
   15    (1) MAKES A BONA FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE DEALER
   16  THE PRODUCER'S,  REFINER'S  OR  DISTRIBUTOR'S  INTEREST  IN  THE  RETAIL
   17  OUTLET, EXCEPT FOR SIGNS DISPLAYING THE INSIGNIA OR ANY OTHER TRADEMARK,
   18  SERVICE  MARK, COPYRIGHT, OR PATENTED EQUIPMENT OF THE PRODUCER, REFINER
   19  OR DISTRIBUTOR; OR
   20    (2) IF APPLICABLE, OFFERS A RIGHT OF FIRST REFUSAL TO  THE  DEALER  OF
   21  ANY  BONA  FIDE OFFER ACCEPTABLE TO THE PRODUCER, REFINER OR DISTRIBUTOR
   22  MADE BY ANOTHER PERSON TO PURCHASE THE PRODUCER'S, REFINER'S OR DISTRIB-
   23  UTOR'S INTEREST IN THE RETAIL OUTLET.
   24    (D) IF A PRODUCER, REFINER OR DISTRIBUTOR LEASES A RETAIL OUTLET  FROM
   25  A THIRD PARTY AND SUBLEASES THE RETAIL OUTLET TO A DEALER, THE PRODUCER,
   26  REFINER  OR  DISTRIBUTOR  MAY  NOT  SELL, TRANSFER, OR ASSIGN TO ANOTHER
   27  PERSON THE PRODUCER'S, REFINER'S OR DISTRIBUTOR'S INTEREST IN THE  THIRD
   28  PARTY LEASE UNLESS THE PRODUCER, REFINER OR DISTRIBUTOR:
   29    (1)(I)  MAKES  A  BONA  FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE
   30  DEALER THE PRODUCER'S, REFINER'S OR DISTRIBUTOR'S INTEREST IN THE  THIRD
   31  PARTY LEASE; AND
   32    (II) MAKES A BONA FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE DEAL-
   33  ER  THE  PRODUCER'S, REFINER'S OR DISTRIBUTOR'S INTEREST IN ANY IMPROVE-
   34  MENTS OR EQUIPMENT OWNED BY THE PRODUCER,  REFINER  OR  DISTRIBUTOR  AND
   35  LOCATED  AT  THE RETAIL OUTLET, EXCEPT FOR SIGNS DISPLAYING THE INSIGNIA
   36  OR ANY OTHER TRADEMARK, SERVICE MARK, COPYRIGHT, OR  PATENTED  EQUIPMENT
   37  OF  THE  PRODUCER,  REFINER OR DISTRIBUTOR, AT A PRICE NOT EXCEEDING THE
   38  GREATER OF THE FAIR MARKET VALUE OR THE BOOK VALUE OF  THE  IMPROVEMENTS
   39  AND EQUIPMENT; OR
   40    (2)  IF  APPLICABLE,  OFFERS A RIGHT OF FIRST REFUSAL TO THE DEALER OF
   41  ANY BONA FIDE OFFER ACCEPTABLE TO THE PRODUCER, REFINER  OR  DISTRIBUTOR
   42  MADE BY ANOTHER PERSON TO ACQUIRE THE PRODUCER'S, REFINER'S OR DISTRIBU-
   43  TOR'S  INTEREST IN THE THIRD PARTY LEASE AND THE IMPROVEMENTS AND EQUIP-
   44  MENT LOCATED AT THE RETAIL OUTLET.
   45    S 2. This act shall take effect immediately; provided,  however,  that
   46  nothing in this act shall be construed to affect any retail outlet where
   47  the title to such retail outlet was transferred by the producer, refiner
   48  or distributor, or a contract of sale or lease of such retail outlet was
   49  entered into prior to the date this act shall have become a law.
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