Prohibits a producer or refiner from selling, transferring, or assigning interest in a retail outlet leased to a motor fuel dealer

BILL NUMBER:S7434

Title of bill

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

Purpose

Prohibits a producer or refiner from selling, transferring or assigning interest in a retail outlet leased to a motor fuel dealer.

Summary of provisions

Adds a new Article 24-D relating to the sale or transfer of gasoline outlets.

Justification

With the exception of transactions otherwise covered under the Federal Petroleum Marketing Practices Act, this bill provides that if a producer or refiner owns a fee simple interest in a retail outlet leased to a dealer, the producer or refiner may not sell, transfer or assign to another person the producer's or refiner's interest in the outlet unless the producer or refiner:

* Makes a bona fide effort to sell, transfer or assign to the dealer the producer's or refiner's interest in the retail outlet, except for signs displaying the insignia, trademark, etc. of the producer or refiner;

* Offer a right of first refusal to the dealer of any bona fide offer acceptable to the producer or refiner made by another person to purchase the producer's or refiner's interest in the retail outlet. If a producer or refiner leases a retail outlet from a third party and subleases the retail outlet to a dealer, the producer or refiner may not sell, transfer or assign to another person the producer's or refiner's interest in the third party lease unless the producer or refiner:

* Makes a bona fide effort to sell, transfer or assign to the dealer the producer's or refiner's interest in any improvements or equipment owned by the producer or the refiner at the retail outlet, except for signs displaying the insignia, trademark etc of the producer or refiner

* Offer a right of first refusal to the dealer of any bona fide offer acceptable to the producer or refiner made by another person to purchase the producer's or refiner's interest in the retail outlet at a price not exceeding the greater of the fair market value or the boot value of the improvements and equipment.

Legislative history

2011-12 A.4788, 2009-10 S.7410B/A.6036B; 2008 A.11848

Fiscal implications

None.

Effective date

This act shall take effect immediately; provided, however, that nothing in this act shall be construed to affect the provision of any existing marketing agreement entered into prior to the date this act shall have become law.