Establishes the minimum distance in which a refiner may operate a retail service station

Title of bill

An act to amend the general business law, in relation to establishing minimum distances in which a refiner may operate a retail service station; and providing for the repeal of such provisions upon expiration thereof

Purpose

To establish the minimum distance in which a refiner may operate a retail service station.

Summary of provisions

Section 1. Amends section 199-a of the general business law by adding a new subdivision 6 which adds the definition of "Refiner".

Section 2. Amends the general business law by adding a new section 199-o.

1. Distance limitations

(a) cities with a population greater than or equal to 1 million = 1 mile

(b) counties with a population greater than 900,000 not wholly contained within a city = 1.5 miles

(c) all other counties = 2 miles

2. Exceptions to distance limitations where:

a) divided highway

b) natural physical barrier

c) located on Indian tribe

3. Arbitration

4. The effect of this legislation may not he modified or disclaimed by contract or agreement and may not be contradicted by evidence of any prior usage or by a prior course of dealing or usage of trade.

Justification

The bill attempts to promote price competition, which will ultimately provide a balance in retail prices. Consolidation of major oil companies taken, together with direct operation of retail locations by major oil companies, has constricted competition. The bill strives to preserve a competitive marketplace in which independent dealers, franchisees and distributors are able to survive.

Legislative history

S.3941, 2007-2008; S.6636, 2005-06; S.4428-B, 2003-04.

Fiscal implications

None.

Effective date

This act shall take effect immediately and shall expire and be deemed repealed three years after such effective date; provided, however, that the Provisions of this act shall not apply to; (a) retail service stations operated by a refiner with company personnel employed by such refiner or employed by a parent company of such refiner where the refiner retains ownership of the motor fuel or with any person, firm or corporation managing a retail service station on a commission fee arrangement under contract with the refiner where the refiner retains ownership of the motor fuel on the effective date of this act; (b) any retail service stations for which a refiner has applied for a building permit prior to the effective date of this act and for which construction commences within 90 days after the effective date of this act; and (c) any retail service stations acquired by a refiner in a single transaction involving the purchase often or more retail service stations and which are operated by a refiner with company personnel, employed by such refiner within 90 days after the effective date of this act.