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S4460Senate2019-2020 SessionSame asA5831

Stop Unfair Gas Zone Pricing

Official title

“Makes certain amendments concerning zone pricing of gasoline”

Sponsor Leroy ComrieSD-14Affects Public Safety & Consumer Affairs
Status
In Senate Committee
Consumer Protection
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Consumer Protection

What's happening

This bill updates and expands the prohibition on zone pricing of gasoline, targeting artificial price differences based on retail outlet location.

Why it matters

  1. Broadens accountability. by shifting the prohibition from just wholesalers to also include producers and refiners, expanding the range of entities that must comply with anti-zone pricing rules.

  2. Clarifies and tightens definitions. of "zone pricing" and "relevant geographic market," making it easier to identify and challenge pricing strategies that create artificial differences between locations without legitimate cost justification.

  3. Aims to reduce consumer price inequities. by targeting practices that lead to higher gasoline prices in certain regions, potentially lowering costs for consumers who have been historically disadvantaged by geographic price manipulation.

  4. Strengthens enforcement potential. by specifying that “additional costs” (like transportation and replacement costs, as well as taxes) must be considered, closing loopholes that allowed companies to justify price differences not actually based on real expenses.

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Who cares

Headline styles

Stop Unfair Gas Zone Pricing

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Leroy Comrie

Senator · Senate District 14

Chair, Corporations, Authorities And Commissions

No co-sponsors yet.

History

  1. Referred to consumer protection
  2. Referred to consumer protection

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A5831Assembly

Ban Unfair Gasoline Pricing

In Assembly Committee · Consumer Affairs And Protection · Sponsor Nily Rozic

Impact 5 · Moderate0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

4460

2019-2020 Regular Sessions

IN SENATE

March 12, 2019

Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection

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

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph (a) of subdivision 1 of section 399-ee of the general business law is relettered paragraph (a-1) and a new paragraph (a) is added to read as follows:

(a) "Additional costs" means all replacement and transportation costs and taxes incurred.

§ 2. Paragraph (g) of subdivision 1 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:

(g) "Relevant geographic market" means the geographic area of effective competition among retail outlets.

§ 3. Paragraph (m) of subdivision 1 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:

(m) "Zone pricing" means the establishment of arbitrary price differences based on the geographical location of the retail outlet within the relevant geographic market, [based on] without regard to the posted terminal price [or] and any additional costs where the effect is to injure competition.

§ 4. Subdivision 2 of section 399-ee of the general business law, as added by chapter 579 of the laws of 2008, is amended to read as follows:

2. No [wholesaler] producer or refiner shall engage in zone pricing with respect to any motor fuel of like grade or quality, which is supplied to a dealer or wholesaler which operates retail outlets.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD08286-01-9

S. 4460 2

§ 5. Section 2 of chapter 579 of the laws of 2008 amending the general business law relating to zone pricing of gasoline is amended to read as follows:

§ 2. Legislative findings and intent. The legislature hereby finds and declares that for the past several years motor fuel prices have greatly fluctuated. In some cases, price fluctuations are caused by natural market conditions. In other cases, fluctuations result from artificial manipulation of the market. One such artificial pricing manipulation is zone pricing. Zone pricing is the setting of different wholesale prices for retail motor fuel [that operate in different geographic areas] based on geographic location. Zone pricing increases the price of retail motor fuel for certain consumers, leading to inequities among consumers and regions around the state. Therefore, the legislature hereby declares that while natural market occurrences may lead to price fluctuations, artificial changes in motor fuel prices unfairly harm many consumers around the state.

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

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

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 gaso- line, in relation to making certain technical changes

Purpose

To modify the law prohibiting the practice of zone pricing to insure that all parties in the chain of supply are covered by the law.

Summary of provisions

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

Section 2: amends general business law section 399-ee(l) (g) to change 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 price and any additional" costs where the effect is to injure competition."

Section 4: amends section 399-ee(2) so that no producer, refiner shall engage in zone pricing with respect to any motor fuel or like grade or quality, which is supplied to a dealer or wholesaler which operates such outlets.

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

Existing law

Chapter 579 of the Laws of 2008 prohibits the practice of zone pricing of gasoline.

Justification

Chapter 579 of the Laws of 2008 created a new section of the general business law to prohibit the practice of zone pricing of gasoline which is the use of arbitrary price differences based on the geographic location of the retail outlet. This bill makes technical changes to the law to insure that all parties in the supply chain of retail gasoline are covered by the law.

Legislative history

2018:A03249(Brindisi)- Consumer Affairs and Protection 2017:A03249(Brindisi)- Consumer Affairs and Protection 2016:A03591(Brindisi)- Consumer Affairs and Protection 2015:A03591(Brindisi)- Consumer Affairs and Protection

Fiscal implications

None.

Effective date

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.