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Below Cost Selling


215th Legislature (2012-2013)

 A-1567
Summary: Permits retail dealer of motor fuel to sell motor fuel at price below retail dealer’s net cost to meet competition.

Status: Waiting to be discussed by the Assembly Transportation and Public Works Committee
Sponsor: Assemblyman John Wisniewski (D-Middlesex)
Click here to view the bill text

214th Legislature (2010-2011) 

 A-2932
Summary: Permits retail dealer of motor fuel to sell motor fuel at price below retail dealer’s net cost to meet competition.

Status: Expired
Sponsor: Assemblyman John Wisniewski (D-Middlesex)
Cosponsor: Assemblywoman Caridad Rodriguez (D-Hudson)
Click here to view the bill text

LEGISLATIVE ACTION: On June 16, 2011, the bill was heard before the Assembly Transportation and Public Works Committee.  The Chairman of the Committee (who is also sponsor of the bill) Assemblyman Wisniewski, spoke out in favor of the bill as did a representative from Costco.  NJGCA Executive Director Sal Risalvato, along with Fuel Merchant’s Association (FMA) Executive Vice President Eric DeGesero and dozens of service station owners spoke out against the proposed measure.  Ultimately, the bill was not voted on after discussion, likely because no one else on the committee, Republican or Democrat, spoke in favor of the bill.  The bill expired at the end of the legislative session on January 10, 2012. 

Click here to read the testimony presented to the committee

CLICK HERE TO LISTEN TO SAL’S TESTIMONY TO THE COMMITTEE, PART 1

CLICK HERE TO LISTEN TO PART 2 OF SAL’S TESTIMONY AND THE TESTIMONY OF NJGCA MEMBER KASHMIR GILL

 

 A-3133
Summary: Permits use of rebates, allowances, concessions, or benefits for motor fuel purchases on credit, debit or rewards cards.

Status: Signed into law
Sponsor:
Assemblywoman Celeste Riley (D-Cumberland)
Assemblyman Craig Coughlin (D-Middlesex)
Assemblyman John Burzichelli (D-Gloucester)
Cosponsor:
Assemblyman Ralph Caputo (D-Essex)
Assemblyman Wayne DeAngelo (D-Mercer)
Assemblyman Angel Fuentes (D-Camden)
Click here to view the original bill text

LEGISLATIVE ACTION: When this bill was first introduced in July 2010, it was a significant threat to the state’s Below Cost Selling Law.  It would have allowed back door below cost selling by letting big businesses use giveaways to force gas retailers to sell below cost.  The bill was hear before the Assembly Regulatory Oversight and Gaming Committee on September 20, 2010.  NJGCA Executive Director Sal Risalvato testified in opposition to the bill, as did Eric DeGesero from FMA, while a representative of the supermarkets testified in favor.  Seeing the divide, the committee chose not to vote on the legislation in order to allow the two sides to come to an agreement. Click here to read the testimony presented to the committee.

 

CLICK HERE TO LISTEN TO AN AUDIO RECORDING OF THE TESTIMONY THAT SAL PRESENTED TO THE COMMITTEE

 

NJGCA and our allies the Fuel Merchants were finally able to successfully broker a compromise with the organization representing the grocery stores and Assemblywoman Riley who was the sponsor of the bill.  Unlike the original bill, the emphasis was shifted from the gasoline retailer to the supermarkets offering the promotion.  That means that the supermarket (or any other retail store) offering the reward must be the one to pay for the reward, not the gasoline retailer.  Following the compromise, the bill was heard before the Assembly Regulatory Oversight and Gaming Committee, where it was amended and passed 5-0.  Voting results below:
Assemblyman John Burzichelli (D-Gloucester) (Chair)—Yes
Assemblywoman Annette Quijano (D-Union) (Vice-Chair)—Yes
Assemblyman Ralph Caputo (D-Essex) —Yes
Assemblywoman Caroline Casagrande (R-Monmouth)Yes
Assemblyman Vince Polistina (R-Atlantic)Yes

Click here to read the testimony presented to the committee
Click here to read the bill, as amended