ASSEMBLY, No. 176

STATE OF NEW JERSEY

212th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2006 SESSION

 


 

Sponsored by:

Assemblyman JON M. BRAMNICK

District 21 (Essex, Morris, Somerset and Union)

Assemblyman PETER J. BIONDI

District 16 (Morris and Somerset)

 

Co-Sponsored by:

Assemblymen Diegnan, Steele, Johnson and Pennacchio

 

 

 

 

SYNOPSIS

     Eliminates exception allowing supplier to discriminate in tank wagon price of branded motor fuel to meet competition.

 

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  


An Act concerning discrimination in the pricing of certain motor fuels and amending P.L.1953, c.413.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  Section 4 of P.L.1953, c.413 (C.56:6-22) is amended to read as follows:

     4.  It shall be unlawful and a violation of this act for any distributor, refiner, wholesaler or supplier, with intent to injure competitors or destroy or substantially lessen competition:

     (a)  To offer, directly or indirectly, a rebate, concession, allowance, discount or benefit, of any kind or nature whatsoever, in connection with the sale or distribution of motor fuel or other products marketed by the distributor, refiner, wholesaler or supplier except that this shall not apply to discounts uniformly applied for timely payments, quantity, or quality;  or

     (b)  To lease or make a contract on condition, promise, agreement or understanding, where the effect of such lease, contract on condition, promise, agreement or understanding may be to substantially lessen competition that the lessee or purchaser thereof shall not use or deal in goods, wares, merchandise,  supplies or other commodities of a competitor of such distributor, refiner,  wholesaler or supplier except that this shall not apply to tanks or pumps if  furnished by the distributor, refiner, wholesaler or supplier to be used in the  distribution of its motor fuel; or

     (c)  To discriminate, either directly or indirectly, in tank wagon price between different retail dealers purchasing the same grade, quality or quantity  of branded motor fuel[, except to meet competition].

     (d)  Any distributor, refiner, wholesaler or supplier who violates the provisions of this section shall be guilty of a misdemeanor.

(cf: P.L.1953, c.413, s.4)

 

     2.  This act shall take effect immediately.

 

 

STATEMENT

 

     The "Unfair Motor Fuels Practices Act" makes it unlawful for any distributor, refiner, wholesaler or supplier of motor fuel to discriminate, either directly or indirectly, in tank wagon price (the invoice cost of motor fuel to the retailer) between different retail dealers purchasing the same grade, quality or quantity of branded motor fuel, except to meet competition.


     This bill eliminates the exception that allows a distributor, refiner, wholesaler or supplier to discriminate in tank wagon price to meet competition.