Bill Text: NY S02973 | 2015-2016 | General Assembly | Introduced


Bill Title: Makes certain amendments concerning zone pricing of gasoline.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2016-01-06 - REFERRED TO CONSUMER PROTECTION [S02973 Detail]

Download: New_York-2015-S02973-Introduced.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2973
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   January 30, 2015
                                      ___________
       Introduced  by  Sen.  FUNKE  -- 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 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    S  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    S  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.
   19    S  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] PRODUCER OR REFINER shall engage  in  zone  pricing
   22  with  respect  to  any  motor  fuel  of  like grade or quality, WHICH IS
   23  SUPPLIED TO A DEALER OR WHOLESALER WHICH OPERATES RETAIL OUTLETS.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01228-01-5
       S. 2973                             2
    1    S 5. Section 2 of chapter 579 of the laws of 2008 amending the general
    2  business law relating to zone pricing of gasoline is amended to read  as
    3  follows:
    4    S 2. Legislative findings and intent. The legislature hereby finds and
    5  declares  that for the past several years motor fuel prices have greatly
    6  fluctuated. In some cases, price  fluctuations  are  caused  by  natural
    7  market  conditions.  In other cases, fluctuations result from artificial
    8  manipulation of the market. One such artificial pricing manipulation  is
    9  zone  pricing. Zone pricing is the setting of different wholesale prices
   10  for retail motor fuel [that operate in different geographic areas] BASED
   11  ON GEOGRAPHIC LOCATION. Zone pricing increases the price of retail motor
   12  fuel for certain consumers, leading to inequities  among  consumers  and
   13  regions  around  the state.   Therefore, the legislature hereby declares
   14  that while natural market occurrences may lead  to  price  fluctuations,
   15  artificial  changes  in  motor  fuel prices unfairly harm many consumers
   16  around the state.
   17    S 6. This act shall take effect on the thirtieth day  after  it  shall
   18  have become a law.
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