Bill Text: NJ A5523 | 2022-2023 | Regular Session | Introduced
Bill Title: Requires certain wholesale pricing of motor fuels be set using formula.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2023-06-05 - Introduced, Referred to Assembly Consumer Affairs Committee [A5523 Detail]
Download: New_Jersey-2022-A5523-Introduced.html
Sponsored by:
Assemblyman REGINALD W. ATKINS
District 20 (Union)
Assemblywoman BRITNEE N. TIMBERLAKE
District 34 (Essex and Passaic)
Assemblywoman ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
Requires certain wholesale pricing of motor fuels be set using formula.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning wholesale pricing of motor fuels and supplementing P.L.1953, c.413 (C.56:6-19 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. It is unlawful and a violation of the "Unfair Motor Fuels Practices Act," P.L.1953, c.413 (C.56:6-19 et seq.), for any distributor, refiner, wholesaler, or supplier to charge a tank wagon price to a retail dealer unless that price was set using a formula that was negotiated and agreed to between contract parties, and that price shall not be more than five cents per gallon above the listed price for that product at the distribution terminal at the time it was purchased.
b. This section shall not apply:
(1) if the retail dealer owns the property the station is located on or if the property is leased directly to the retail dealer by a third party who is not a distributor, refiner, wholesaler, or supplier;
(2) to consignment sales of motor fuels; or
(3) to any contract existing before the effective date of this act.
c. Any contract for motor fuel negotiated and entered into between a distributor, refiner, wholesaler, or supplier and a retail dealer on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), shall comply with this section.
d. A distributor, refiner, wholesaler, or supplier found in violation of this section shall be subject to a fine of $5,000 per delivery of motor fuel priced in violation of this section.
2. This act shall take effect immediately.
STATEMENT
This bill prohibits a distributor, refiner, wholesaler, or supplier from charging a tank wagon price to a retail dealer unless that price is set using a negotiated and agreed-upon formula. The negotiated price shall not be more than five cents per gallon above the listed price for that product at the distribution terminal at the time it was purchased.
"Tank wagon price" is defined under the "Unfair Motor Fuels Practices Act" as the invoice cost of motor fuel to the retailer.
The provisions of this bill do not apply if the retail dealer owns the property the station is located on or if the property is leased directly to the retail dealer by a third party who is not a distributor, refiner, wholesaler, or supplier. Additionally, this bill does not apply to consignment sales of motor fuels or contracts existing before its effective date. Contracts negotiated and entered into after the effective date must comply with the requirements of the bill.
An entity that prohibits a provision of the bill is subject to a fine of $5,000 per delivery of motor fuel priced in violation of the bill.
