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

1 Co-sponsor

• Terrence P. Murphy

BILL NUMBER:S3815

Title of bill

An act to amend the general business law, in relation to prohibiting a producer, distributor or refiner from selling, transferring, or assigning interest in a retail outlet leased to a dealer unless the producer, distributor or refiner makes certain offers of the producer's, distributor's or refiner's interest to such dealer

Purpose

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

Summary of provisions

The General Business Law is amended by adding 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, distributor or refiner owns a fee simple interest in a retail outlet leased to a dealer, the producer, distributor or refiner may not sell, transfer or assign to another person the producer's, distributor's or refiner's interest in the retail outlet unless the producer or refiner: (1) makes a bona fide effort to sell, transfer or assign to the dealer the producer's, distributor's or refiner's interest in the retail outlet, except for signs displaying the insignia, trademark, etc. of the producer, distributor or refiner; (2)if applicable, offer a right of first refusal to the dealer of any bona fide offer acceptable to the producer, distributor or refiner made by another person to purchase the producer's, distributor's or refiner's interest in the retail outlet.

If a producer, distributor or refiner leases a retail outlet from a third party and subleases the retail outlet to a dealer, the producer, distributor or refiner may not sell, transfer or assign to another person the producer's, distributor's or refiner's interest in the third party lease unless the producer, distributor or refiner:

(1) makes a bona fide effort to sell, transfer or assign to the dealer the producer's, distributor's or refiner's interest in the third party lease; (2) makes a bona fide effort to sell, transfer or assign to the dealer the producer's, distributor's or refiner's interest in any improvements or equipment owned by the producer, distributor or the refiner at the retail outlet, except for signs displaying the insignia, trademark, etc. of the producer, distributor or refiner, at a price not exceeding the greater of fair market value or the book value of the improvements and equipment; or (3) if applicable, offer a right of first refusal to the dealer of any bona fide offer acceptable to the producer, distributor or refiner made by another person to acquire the producer's, refiner's or distributor's interest in the

third party lease and the improvements and equipment located at the retail outlet.

Legislative history

2013-14: A.7011/S.7434 2011-12: A.4788 2009-10: A.6036-B/5.7410-B 2008: A.11848

Fiscal implications

None.

Effective date

This act shall take effect immediately after it shall have become law; 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 a law.