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A9764Assembly2009-2010 SessionSame asS7168Same asS3766

Makes certain amendments concerning zone pricing of gasoline

Sponsor Fred ThieleAD-2+17 co-sponsorsAffects Economy
Status
In Assembly Committee
Economic Development
Impact
Pending
Passage
Pending

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In committee · Economic Development

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  1. Referred to economic development

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Sponsor's memo

BILL NUMBER:A9764

Title of bill

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

Purpose or general idea of bill

This legislation makes certain amend- ments concerning zone pricing of gasoline.

Summary of specific provisions

Section 1: adds a new definition of "additional costs" which is defined as all replacement and transporta- tion costs and taxes incurred.

Section 2: amends general business law section 399-ee (1)(g) to changed the definition of "relevant geographic market" to include the phrase "among retail outlets".

Section 3: amends section 399-ee(1)(m) of the general business law to adjust the definition of zone pricing to read "the establishment of arbitrary price differences based on the geographical location of the retail outlet within the relevant geographic market, without regard to the posted terminal prices and any additional costs where the effect is to injure competition."

Section 4: amends section 399-ee (2) to include producer, refiners and dealers within the prohibition of zone pricing.

Section 5: makes a technical change to the language in the legislative findings an intent section of the original bill.

Justification

Over the past several years, consumers have been subject to great fluctuations in motor fuel prices due to natural market condi- tions. However, fluctuations have also occurred as a result of artifi- cial manipulation of the market. Zone pricing, for example, is a market- ing technique used by petroleum companies under which gasoline is sold to retailers at differing wholesale prices based on the demographics of a certain geographic area. This practice results in higher charges with- in areas where demand is high and/or competition is low forcing affected retailers to pass this arbitrary price difference on to their consumers.

To address this issue, the New York State Legislature passed legislation enacting the "Consumer Protection and Fair and Equitable Motor Fuel Pricing Act of 2008" which prohibits the practice of zone pricing of gasoline based on the geographic location of the retail outlet (Chapter 579 of the Laws of 2008). However, this new law contains some loopholes which need to be closed to fulfill the original intent of this important measure. This legislation makes necessary corrections to Chapter 579 of the Laws of 2008 which will ensure that all parties in the supply chain of retail gasoline are covered by the law.

Prior legislative history

2009: A.234-A - Passed Assembly

Fiscal implications

None.

Effective date

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

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.