Bill Text: NY S05740 | 2021-2022 | General Assembly | Introduced

---

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

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO CONSUMER PROTECTION [S05740 Detail]

Download: New_York-2021-S05740-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________

                                          5740

                               2021-2022 Regular Sessions

                    IN SENATE

                                     March 17, 2021
                                       ___________

        Introduced  by  Sen.  COMRIE -- 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    §  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.
    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] 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.
                                                                   LBD03354-01-1
        S. 5740                             2

     1    § 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    § 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    § 6. This act shall take effect on the thirtieth day  after  it  shall
    18  have become a law.