S T A T E   O F   N E W   Y O R K
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    S. 2124                                                  A. 2290

                       2013-2014 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            January 11, 2013
                               ___________

IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Consumer
  Protection

IN ASSEMBLY -- Introduced by M.  of  A.  THIELE,  COOK,  GALEF,  JAFFEE,
  LUPARDO, LOSQUADRO, MAISEL, McKEVITT, RAIA, ROBERTS, SALADINO, ZEBROW-
  SKI -- Multi-Sponsored by -- M. of A. BRENNAN, CUSICK, DUPREY, GABRYS-
  ZAK, HOOPER, RA, RABBITT -- read once and referred to the Committee on
  Economic Development

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 zone pricing for retail motor fuel based on geographic location

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, 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.
  S 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 effec-
tive competition] WHICH IS SUPPLIED BY THE SAME TERMINAL FACILITY.
  S 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  [arbitrary]  ESTABLISHMENT  OF price
differences BASED ON THE GEOGRAPHICAL  LOCATION  OF  THE  RETAIL  OUTLET
within  the relevant geographic market, [based on] WITHOUT REGARD TO the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02886-02-3
              

S. 2124                             2                            A. 2290

posted terminal price [or] AND ANY ADDITIONAL COSTS where the effect  is
to injure competition.
  S  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 OR DEALER shall engage in zone pricing  with  respect
to  any motor fuel of like grade or quality, WHICH IS SUPPLIED TO DEALER
OPERATED RETAIL OUTLETS.
  S 5. Subdivision 3 of section 399-ee of the general  business  law  is
amended by adding a new undesignated paragraph to read as follows:
  NOTWITHSTANDING  ANY  RIGHT  OF  ACTION  TO  THE  ATTORNEY  GENERAL AS
PROVIDED IN THIS SECTION, A WHOLESALER OR DEALER WHO HAS BEEN INJURED BY
REASON OF A VIOLATION OF THIS SECTION MAY BRING AN ACTION IN HIS OR  HER
OWN  NAME TO ENJOIN SUCH UNLAWFUL ACT, HOWEVER, NO DAMAGES OF ANY NATURE
SHALL BE RECOVERABLE IN SUCH ACTION.
  S 6. Section 2 of chapter 579 of the laws of 2008, amending the gener-
al business law relating to zone pricing of gasoline, is amended to read
as follows:
  S 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.
  S  7.  This  act shall take effect on the thirtieth day after it shall
have become a law.