What's happening
This bill allows gas stations and distributors in New York to buy unbranded motor fuel from alternative suppliers, overriding restrictive franchise agreements.
Why it matters
Increases Competition and Potentially Lowers Prices. By allowing gas stations and distributors to buy unbranded fuel from alternative suppliers, the bill could increase market competition, which may help lower prices for consumers.
Empowers Local Businesses. The law overrides restrictive clauses in franchise and supply agreements that prevent dealers and distributors from seeking other sources, giving more autonomy to local station owners to choose their suppliers.
Encourages Fuel Supply Resilience. Enabling dealers to source from multiple suppliers could help buffer against supply disruptions and shortages, making local fuel markets more resilient.
Promotes Environmental Responsibility. Dealers can still take advantage of these provisions if they provide at least $1 million in environmental pollution insurance, incentivizing responsible management of fuel storage and environmental risks.
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Who cares
Headline styles
Let Gas Stations Pick Suppliers
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to economic development
- Referred to economic development
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3128
2019-2020 Regular Sessions
IN ASSEMBLY
January 28, 2019
Introduced by M. of A. PRETLOW -- read once and referred to the Committee on Economic Development
AN ACT to amend the general business law, in relation to authorizing gas stations to purchase motor fuel from alternative suppliers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 3 of section 199-j of the general business law, as added by chapter 578 of the laws of 2008, is amended to read as follows:
3. Franchise provisions. Any provision of a franchise with a refiner or a supply agreement with a distributor which prohibits a dealer, who either directly or through an affiliate owns a service station including the tanks and pumps or where a dealer provides environmental pollution insurance coverage for the tanks and pumps of not less than one million dollars in the aggregate and who dedicates a tank for sale of unbranded motor fuel, or any provision of a franchise with a refiner which prohibits a distributor from purchasing or selling unbranded motor fuel from a person or firm other than the refiner or limits the quantity of such unbranded motor fuel to be purchased from another person or firm or any provision of a franchise which directly or indirectly discourages a dealer or distributor from purchasing or selling such unbranded motor fuels from another person or firm, shall be null and void. For purposes of this subdivision and subdivisions four, five and six of this section the following terms shall have the following meanings:
(a) "refiner" means any person, firm or corporation who owns, leases, operates, controls or supervises a commercial entity producing gasoline or diesel motor fuel;
(b) "distributor" means any person other than a refiner or dealer who purchases motor fuel at a terminal facility and supplies motor fuel to service stations; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04673-01-9
A. 3128 2
(c) "unbranded motor fuel" means motor fuel which does not use a trademark, trade name, service mark, or other identifying symbol or name owned by a refiner.
§ 2. This act shall take effect on the sixtieth day after it shall have become a law and shall apply to any franchise agreements entered into on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.