Nullifies agreements 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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5631
SPONSOR: Pretlow TITLE OF BILL:
An act to amend the general business law, in relation to authorizing gas
stations to purchase motor fuel from alternative suppliers
PURPOSE:
To enable certain gas stations to purchase motor fuel from alternative
suppliers.
SUMMARY OF PROVISIONS:
Section 1 amends subdivision 3 of section 199-j of the General Business
Law regarding distributor supply agreements and franchise provisions.
Section 2 sets forth effective date.
JUSTIFICATION:
Gasoline prices are primarily driven by the law of supply and demand,
the provisions of which are difficult to alter. The recent escalation in
the price of gasoline, has caused a fiscal hardship for consumers, who
are forced to utilize funds which would otherwise be used for other
expenses. This bill would attempt to provide some relief by enabling
franchise owners to purchase motor fuel from alternative suppliers which
could lower the price of the gasoline they sell and, in turn, create an
overall more competitive marketplace for consumers.
LEGISLATIVE HISTORY:
2024 01/03/24 A3444 referred to Economic Development
2023 02/03/23 A3444 referred to Economic Development
2021-2022 A1826 referred to Economic Development
2019-2020 A3128 referred to economic development
2017-2018 referred to economic development
2015- 2016 A2586 referred to economic development A3620
2013-14 referred to economic development A7663 New bill, referred to
economic development
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
The sixtieth day after it shall have become law and shall apply to any
franchise agreements entered into on or after such date.
STATE OF NEW YORK
________________________________________________________________________
5631
2025-2026 Regular Sessions
IN ASSEMBLY
February 18, 2025
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee 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 Assem-bly, do enact as follows:
1 Section 1. Subdivision 3 of section 199-j of the general business law,
2 as added by chapter 578 of the laws of 2008, is amended to read as
3 follows:
4 3. Franchise provisions. Any provision of a franchise with a refiner
5 or a supply agreement with a distributor which prohibits a dealer, who
6 either directly or through an affiliate owns a service station including
7 the tanks and pumps or where a dealer provides environmental pollution
8 insurance coverage for the tanks and pumps of not less than one million
9 dollars in the aggregate and who dedicates a tank for sale of unbranded
10 motor fuel, or any provision of a franchise with a refiner which prohib-
11 its a distributor from purchasing or selling unbranded motor fuel from a
12 person or firm other than the refiner or limits the quantity of such
13 unbranded motor fuel to be purchased from another person or firm or any
14 provision of a franchise which directly or indirectly discourages a
15 dealer or distributor from purchasing or selling such unbranded motor
16 fuels from another person or firm, shall be null and void. For purposes
17 of this subdivision and subdivisions four, five and six of this section
18 the following terms shall have the following meanings:
19 (a) "refiner" means any person, firm or corporation who owns, leases,
20 operates, controls or supervises a commercial entity producing gasoline
21 or diesel motor fuel;
22 (b) "distributor" means any person other than a refiner or dealer who
23 purchases motor fuel at a terminal facility and supplies motor fuel to
24 service stations; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09251-01-5
A. 5631 2
1 (c) "unbranded motor fuel" means motor fuel which does not use a
2 trademark, trade name, service mark, or other identifying symbol or name
3 owned by a refiner.
4 § 2. This act shall take effect on the sixtieth day after it shall
5 have become a law and shall apply to any franchise agreements entered
6 into on or after such date.
