Bill Text: NY S07434 | 2013-2014 | General Assembly | Introduced

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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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-05-14 - REFERRED TO CONSUMER PROTECTION [S07434 Detail]

Download: New_York-2013-S07434-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         7434
                                   I N  S E N A T E
                                     May 14, 2014
                                      ___________
       Introduced  by  Sen. LAVALLE -- 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  prohibiting  a
         producer  or refiner from selling, transferring, or assigning interest
         in a retail outlet leased to a dealer unless the producer  or  refiner
         makes  certain  offers of the producer'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)  "REFINER"  MEANS  ANY PERSON WHO PRODUCES AND STORES OR EXCHANGES
   14  MOTOR FUEL AT A TERMINAL FACILITY AND WHO SELLS OR TRANSFERS MOTOR  FUEL
   15  THROUGH  THE  LOADING  RACK  AT  SUCH TERMINAL FACILITY, AND INCLUDES AN
   16  AFFILIATE OF SUCH REFINER WITH RESPECT TO SUCH AFFILIATE'S SALE OF MOTOR
   17  FUEL.
   18    (5) "RETAIL OUTLET" MEANS A FACILITY, INCLUDING LAND AND IMPROVEMENTS,
   19  WHERE MOTOR FUEL IS OFFERED FOR SALE AT RETAIL TO THE PUBLIC.
   20    (B)(1) EVERY MARKETING AGREEMENT BETWEEN A REFINER OR PRODUCER  AND  A
   21  DEALER  IS  SUBJECT  TO  THE  PROVISIONS OF THIS SECTION, WHETHER OR NOT
   22  EXPRESSLY SET FORTH OR STATED IN SUCH AGREEMENT.
   23    (2) THIS SECTION SHALL NOT APPLY  TO  TRANSACTIONS  OTHERWISE  COVERED
   24  UNDER THE FEDERAL PETROLEUM MARKETING PRACTICES ACT.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD10070-01-3
       S. 7434                             2
    1    (C)  IF A PRODUCER OR A REFINER OWNS A FEE SIMPLE INTEREST IN A RETAIL
    2  OUTLET LEASED TO A DEALER, THE PRODUCER OR REFINER MAY NOT SELL,  TRANS-
    3  FER, OR ASSIGN TO ANOTHER PERSON THE PRODUCER'S OR REFINER'S INTEREST IN
    4  THE RETAIL OUTLET UNLESS THE PRODUCER OR REFINER:
    5    (1) MAKES A BONA FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE DEALER
    6  THE  PRODUCER'S  OR  REFINER'S INTEREST IN THE RETAIL OUTLET, EXCEPT FOR
    7  SIGNS DISPLAYING THE INSIGNIA OR  ANY  OTHER  TRADEMARK,  SERVICE  MARK,
    8  COPYRIGHT, OR PATENTED EQUIPMENT OF THE PRODUCER OR REFINER; OR
    9    (2)  IF  APPLICABLE,  OFFERS A RIGHT OF FIRST REFUSAL TO THE DEALER OF
   10  ANY BONA FIDE OFFER ACCEPTABLE TO THE PRODUCER OR REFINER MADE BY ANOTH-
   11  ER PERSON TO PURCHASE THE PRODUCER'S OR REFINER'S INTEREST IN THE RETAIL
   12  OUTLET.
   13    (D) IF A PRODUCER OR REFINER LEASES A RETAIL OUTLET FROM A THIRD PARTY
   14  AND SUBLEASES THE RETAIL OUTLET TO A DEALER, THE PRODUCER OR REFINER MAY
   15  NOT SELL, TRANSFER, OR ASSIGN TO ANOTHER PERSON THE PRODUCER'S OR REFIN-
   16  ER'S INTEREST IN THE THIRD PARTY LEASE UNLESS THE PRODUCER OR REFINER:
   17    (1)(I) MAKES A BONA FIDE OFFER TO SELL, TRANSFER,  OR  ASSIGN  TO  THE
   18  DEALER  THE  PRODUCER'S  OR REFINER'S INTEREST IN THE THIRD PARTY LEASE;
   19  AND
   20    (II) MAKES A BONA FIDE OFFER TO SELL, TRANSFER, OR ASSIGN TO THE DEAL-
   21  ER THE PRODUCER'S OR REFINER'S INTEREST IN ANY IMPROVEMENTS OR EQUIPMENT
   22  OWNED BY THE PRODUCER OR REFINER  AND  LOCATED  AT  THE  RETAIL  OUTLET,
   23  EXCEPT FOR SIGNS DISPLAYING THE INSIGNIA OR ANY OTHER TRADEMARK, SERVICE
   24  MARK,  COPYRIGHT, OR PATENTED EQUIPMENT OF THE PRODUCER OR REFINER, AT A
   25  PRICE NOT EXCEEDING THE GREATER OF THE FAIR MARKET  VALUE  OR  THE  BOOK
   26  VALUE OF THE IMPROVEMENTS AND EQUIPMENT; OR
   27    (2)  IF  APPLICABLE,  OFFERS A RIGHT OF FIRST REFUSAL TO THE DEALER OF
   28  ANY BONA FIDE OFFER ACCEPTABLE TO THE PRODUCER OR REFINER MADE BY ANOTH-
   29  ER PERSON TO ACQUIRE THE PRODUCER'S OR REFINER'S INTEREST IN  THE  THIRD
   30  PARTY  LEASE  AND  THE  IMPROVEMENTS AND EQUIPMENT LOCATED AT THE RETAIL
   31  OUTLET.
   32    S 2. This act shall take effect immediately; provided,  however,  that
   33  nothing in this act shall be construed to affect any retail outlet where
   34  the  title  to  such  retail  outlet  was transferred by the producer or
   35  refiner, or a contract of sale  or  lease  of  such  retail  outlet  was
   36  entered into prior to the date this act shall have become a law.