Right of First Refusal
In 2008 it became clear that a dramatic change was about to occur in the gasoline retailer landscape. ExxonMobil, Shell, and other Big Oil Companies had decided they were leaving the retail market in New Jersey and around the Nation, but they were not willing to allow Franchisees who have built these businesses the opportunity to purchase their locations. NJGCA Executive Director Sal Risalvato stated, “these franchisees have spent hundreds of thousands on the business, and placed their blood, sweat, and tears into making these business what they are today. It is time to afford franchisees the right to purchase their stations.” To counteract this injustice NJGCA sprang into action and introduced the landmark “First Right of Refusal Law.” This legislation leveled the playing field, and allows franchisees the opportunity to purchase their businesses at a price equal to the highest bid of another potential purchaser. This legislation was simply a basic courtesy being placed into statute. Without this legislation Big Oil would have compromised the future of New Jersey’s Motor Fuel Market by selling off their locations en masse to mega-distributors. This was problematic not just because it was unfair for the franchisees but because there was a history of mega-distributors taking over and then acting in ways which force out the franchisee. It is NJGCA’s moral position that we must protect every franchisee regardless of the size of their franchisor.
213th Legislature (2008-2009)
S-2553
Summary: Concerns franchisors’ assignment of interest relating to franchisees engaged in the retail sale of motor fuel.
Status: Signed into law
Sponsors: Sen. Gerald Cardinale (R-Bergen) & Sen. Paul Sarlo (D-Bergen)
Click here to view the original bill text
NJGCA knew that in order for this law to be at all effective, it had to be enacted quickly. It was introduced on February 9, 2009 and was heard by the Senate Commerce Committee on February 26th. Executive Director Sal Risalvato testified there accompanied by dozens of motor fuel retailer franchisees.
Click here to listen to the audio recording of Sal’s testimony
The Committee amended the bill and then passed it by a 4-0 vote and it moved on to the full Senate for a vote.
Click here to read the bill, as amended
Voting results:
Senator Nia Gill (D-Essex) (Chair) –Yes
Senator Ray Lesniak (D-Union) (Vice-Chair) –Yes
Senator Gerald Cardinale (R-Bergen)–Yes
Senator Robert Singer (R-Ocean)–Yes
Senator Nick Scutari (D-Union)–Not Voting
On March 16, 2009 the bill was passed by a 30-3 vote in the Senate:
|
Name |
County |
District |
Party |
S-2553 |
| Jeff Van Drew | Cape May |
1 |
D |
NV |
| Jim Whelan | Atlantic |
2 |
D |
Yes |
| Steve Sweeney | Gloucester |
3 |
D |
Yes |
| Fred Madden | Gloucester |
4 |
D |
No |
| Dana Redd | Camden |
5 |
D |
Yes |
| Jim Beach | Camden |
6 |
D |
Yes |
| Diane Allen | Burlington |
7 |
R |
No |
| Phil Haines | Burlington |
8 |
R |
Yes |
| Christopher Connors | Ocean |
9 |
R |
Yes |
| Andrew Ciesla | Ocean |
10 |
R |
NV |
| Sean Kean | Monmouth |
11 |
R |
Yes |
| Jen Beck | Monmouth |
12 |
R |
Yes |
| Joe Kyrillos | Monmouth |
13 |
R |
Yes |
| Bill Baroni | Middlesex |
14 |
D |
Yes |
| Shirley Turner | Mercer |
15 |
D |
NV |
| Christopher “Kip” Bateman | Somerset |
16 |
R |
NV |
| Bob Smith | Middlesex |
17 |
D |
NV |
| Barbara Buono | Middlesex |
18 |
D |
Yes |
| Joe Vitale | Middlesex |
19 |
D |
Yes |
| Ray Lesniak | Union |
20 |
D |
No |
| Tom Kean | Union |
21 |
R |
Yes |
| Nick Scutari | Union |
22 |
D |
Yes |
| Marcia Karrow | Warren |
23 |
R |
Yes |
| Steve Oroho | Sussex |
24 |
R |
NV |
| Anthony R. Bucco | Morris |
25 |
R |
Yes |
| Joe Pennachio | Morris |
26 |
R |
Yes |
| Dick Codey | Essex |
27 |
D |
Yes |
| Ron Rice | Essex |
28 |
D |
Yes |
| Teresa Ruiz | Essex |
29 |
D |
Yes |
| Bob Singer | Ocean |
30 |
R |
Yes |
| Sandra Cunningham | Hudson |
31 |
D |
Yes |
| Nick Sacco | Hudson |
32 |
D |
Yes |
| Brian Stack | Hudson |
33 |
D |
Yes |
| Nia Gill | Essex |
34 |
D |
Yes |
| John Girgenti | Passaic |
35 |
D |
Yes |
| Paul Sarlo | Bergen |
36 |
D |
Yes |
| Loretta Weinberg | Bergen |
37 |
D |
Yes |
| Bob Gordon | Bergen |
38 |
D |
NV |
| Gerald Cardinale | Bergen |
39 |
R |
Yes |
| Kevin O’Toole | Essex |
40 |
R |
Yes |
A-3726
Summary: Concerns franchisors’ assignment of interest relating to franchisees engaged in the retail sale of motor fuel.
Status: Signed into law
Sponsors: Assemblyman Patrick Diegnan (D-Middlesex)
Assemblyman Jon Bramnick (R-Union)
Assemblyman Upendra Chivukula (D-Somerset)
Assemblyman Ruben Ramos (D-Hudson)
Cosponsors: Assemblyman Vincent Prieto (D-Hudson)
Assemblywoman Caridad Rodriguez (D-Hudson)
Assemblywoman Valerie Vainieri Huttle (D-Bergen)
Assemblyman Gordon Johnson (D-Bergen)
Assemblyman Joe Vas (D-Middlesex)
Assemblyman John Burzichelli (D-Gloucester)
On March 12, 2009 the First Right of Refusal bill was heard before the Assembly Transportation Committee. In addition to Executive Director Sal Risalvato, testimony was also heard from NJGCA members and franchisees Ebbie Ashabe and Ed Kashouty. The bill was amended and passed the Committee by a vote of 8-1-3 and sent to the Assembly Appropriations Committee.
Click here to view the original bill text
Click here to read the bill, as amended
Click here to listen to the audio testimony of Executive Director Sal Risalvato
Click here to read the written testimony presented to the committee by Sal Risalvato
Click here to read the testimony presented to the committee by Ebbie Ashabe
Click here to read the testimony presented to the committee by Ed Kashouty
Voting Results:
Assemblyman John Wisniewski (D-Middlesex) (Chair) –Yes
Assemblywoman Linda Stender (D-Union) (Vice-Chair) –Yes
Assemblyman Vincent Prieto (D-Hudson)–Yes
Assemblywoman Caridad Rodriguez (D-Hudson)–Yes
Assemblyman L. Harvey Smith (D-Hudson) –Yes
Assemblywoman Connie Wagner (D-Bergen)–Yes
Assemblyman Scott Rumana (R-Passaic)–Yes
Assemblyman Brian Rumpf (R-Ocean)–Yes
Assemblyman Scott Rudder (R-Burlington)–No
Assemblyman Tom Giblin (D-Montclair)–Abstain
Assemblyman Matt Milam (D-Cumberland)–Abstain
Assemblyman John Amodeo (R-Atlantic)–Abstain
On May 18, 2009 the bill was heard before the Assembly Appropriations Committee. Sal Risalvato again testified and the bill was amended and passed the committee by an 8-0-3 vote and was sent to the full Assembly for a floor vote.
Click here to read the bill, as amended
Click here to read Sal’s written testimony
Voting results:
Senator Nellie Pou (D-Passaic) (Chair) –Yes
Assemblywoman Valerie Vainieri Huttle (D-Bergen) (Vice-Chair) –Yes
Assemblyman Peter Barnes (D-Middlesex)–Yes
Assemblyman Herb Conaway (D-Burlington) –Yes
Assemblyman Lou Greenwald (D-Camden)–Yes
Assemblyman Ruben Ramos (D-Hudson) –Yes
Assemblywoman Linda Stender (D-Union) –Yes
Assemblyman John Wisniewski (D-Middlesex)–Yes
Senator Dawn Marie Addiego (R-Burlington)–Abstain
Senator Michael Doherty (R-Warren)–Abstain
Assemblyman Rick Merkt (R-Morris) –Abstain
Senator Sam Thompson (R-Middlesex)–Not Voting
On May 21, 2009 the Assembly voted on the First Right of Refusal bill. It passed 71-3-3. Voting results below:
Click here to read the Handouts NJGCA left for Legislature members
|
Name |
County |
District |
Party |
FRoR |
| Nelson Albano | Cumberland |
1 |
D |
Yes |
| Matt Milam | Cumberland |
1 |
D |
Yes |
| John Amodeo | Atlantic |
2 |
R |
Yes |
| Vince Polistina | Atlantic |
2 |
R |
Yes |
| John Burzichelli | Gloucester |
3 |
D |
Yes |
| Celeste Riley | Cumberland |
3 |
D |
Yes |
| Sandra Love | Camden |
4 |
D |
NV |
| Paul Moriarity | Gloucester |
4 |
D |
Yes |
| Joe Roberts | Camden |
5 |
D |
Yes |
| Nilsa Cruz-Perez | Camden |
5 |
D |
Yes |
| Lou Greenwald | Camden |
6 |
D |
Yes |
| Pamela Lampitt | Camden |
6 |
D |
Yes |
| Herb Conaway | Burlington |
7 |
D |
Yes |
| Jack Conners | Camden |
7 |
D |
Yes |
| Scott Rudder | Burlington |
8 |
R |
Abs |
| Dawn Marie Addiego | Burlington |
8 |
R |
Abs |
| Daniel Van Pelt | Ocean |
9 |
R |
Yes |
| Brian Rumpf | Ocean |
9 |
R |
Yes |
| Jim Holzapfel | Ocean |
10 |
R |
Yes |
| David Wolfe | Ocean |
10 |
R |
Yes |
| Mary Pat Angelini | Monmouth |
11 |
R |
Yes |
| Dave Rible | Monmouth |
11 |
R |
Yes |
| Caroline Casagrande | Monmouth |
12 |
R |
Yes |
| Declan O’Scanlon | Monmouth |
12 |
R |
Yes |
| Sam Thompson | Middlesex |
13 |
R |
Yes |
| Amy Handlin | Monmouth |
13 |
R |
Yes |
| Wayne DeAngelo | Mercer |
14 |
D |
Yes |
| Linda Greenstein | Mercer |
14 |
D |
Yes |
| Reed Gusciora | Mercer |
15 |
D |
Yes |
| Bonnie Watson Coleman | Mercer |
15 |
D |
Yes |
| Peter Biondi | Somerset |
16 |
R |
Yes |
| Denise Coyle | Somerset |
16 |
R |
Yes |
| Upendra Chivukula | Somerset |
17 |
D |
Yes |
| Joe Egan | Middlesex |
17 |
D |
NV |
| Patrick Diegnan | Middlesex |
18 |
D |
Yes |
| Peter Barnes | Middlesex |
18 |
D |
Yes |
| John Wisniewski | Middlesex |
19 |
D |
Yes |
| Joe Vas | Middlesex |
19 |
D |
NV |
| Joe Cryan | Union |
20 |
D |
Yes |
| Annette Quijano | Union |
20 |
D |
Yes |
| Jon Bramnick | Union |
21 |
R |
Yes |
| Nancy Munoz | Union |
21 |
R |
Yes |
| Linda Stender | Union |
22 |
D |
Yes |
| Jerry Green | Union |
22 |
D |
Yes |
| Mike Doherty | Warren |
23 |
R |
Abs |
| John DiMaio | Warren |
23 |
R |
Yes |
| Gary Chiusano | Sussex |
24 |
R |
Yes |
| Alison Littell McHose | Sussex |
24 |
R |
Yes |
| Michael Patrick Carroll | Morris |
25 |
R |
No |
| Rick Merkt | Morris |
25 |
R |
No |
| Alex DeCroce | Morris |
26 |
R |
Yes |
| Jay Webber | Morris |
26 |
R |
No |
| John McKeon | Essex |
27 |
D |
Yes |
| Mila Jasey | Essex |
27 |
D |
Yes |
| Ralph Caputo | Essex |
28 |
D |
Yes |
| Cleopatra Tucker | Essex |
28 |
D |
Yes |
| L. Grace Spencer | Essex |
29 |
D |
Yes |
| Albert Couthino | Essex |
29 |
D |
Yes |
| Ronald Dancer | Ocean |
30 |
R |
Yes |
| Joe Malone | Burlington |
30 |
R |
Yes |
| L. Harvey Smith | Hudson |
31 |
D |
Yes |
| Anthony Chiappone | Hudson |
31 |
D |
Yes |
| Vincent Prieto | Hudson |
32 |
D |
Yes |
| Joan Quigley | Hudson |
32 |
D |
Yes |
| Ruben Ramos | Hudson |
33 |
D |
Yes |
| Caridad Rodriguez | Hudson |
33 |
D |
Yes |
| Sheila Oliver | Essex |
34 |
D |
Yes |
| Tom Giblin | Essex |
34 |
D |
Yes |
| Nellie Pou | Passaic |
35 |
D |
Yes |
| Elease Evans | Passaic |
35 |
D |
Yes |
| Gary Schaer | Passaic |
36 |
D |
Yes |
| Frederick Scalera | Essex |
36 |
D |
Yes |
| Valerie Vaineri Huttle | Bergen |
37 |
D |
Yes |
| Gordon Johnson | Bergen |
37 |
D |
Yes |
| Connie Wagner | Bergen |
38 |
D |
Yes |
| Joan Voss | Bergen |
38 |
D |
Yes |
| Charlotte Vandervalk | Bergen |
39 |
R |
Yes |
| John Rooney | Bergen |
39 |
R |
Yes |
| Scott Rumana | Passaic |
40 |
R |
Yes |
| David Russo | Bergen |
40 |
R |
Yes |
Because the bill passed by the Assembly had been amended since it had passed the Senate, the Senate to vote again on the updated bill. They did so hours after it passed the Assembly by a 37-0 vote. Results below:
|
Name |
County |
District |
Party |
FRoR |
| Jeff Van Drew | Cape May |
1 |
D |
Yes |
| Jim Whelan | Atlantic |
2 |
D |
Yes |
| Steve Sweeney | Gloucester |
3 |
D |
Yes |
| Fred Madden | Gloucester |
4 |
D |
Yes |
| Dana Redd | Camden |
5 |
D |
Yes |
| Jim Beach | Camden |
6 |
D |
NV |
| Diane Allen | Burlington |
7 |
R |
Yes |
| Phil Haines | Burlington |
8 |
R |
Yes |
| Christopher Connors | Ocean |
9 |
R |
Yes |
| Andrew Ciesla | Ocean |
10 |
R |
Yes |
| Sean Kean | Monmouth |
11 |
R |
Yes |
| Jen Beck | Monmouth |
12 |
R |
Yes |
| Joe Kyrillos | Monmouth |
13 |
R |
Yes |
| Bill Baroni | Middlesex |
14 |
D |
Yes |
| Shirley Turner | Mercer |
15 |
D |
Yes |
| Christopher “Kip” Bateman | Somerset |
16 |
R |
Yes |
| Bob Smith | Middlesex |
17 |
D |
Yes |
| Barbara Buono | Middlesex |
18 |
D |
Yes |
| Joe Vitale | Middlesex |
19 |
D |
Yes |
| Ray Lesniak | Union |
20 |
D |
Yes |
| Tom Kean | Union |
21 |
R |
Yes |
| Nick Scutari | Union |
22 |
D |
Yes |
| Marcia Karrow | Warren |
23 |
R |
Yes |
| Steve Oroho | Sussex |
24 |
R |
Yes |
| Anthony R. Bucco | Morris |
25 |
R |
Yes |
| Joe Pennachio | Morris |
26 |
R |
Yes |
| Dick Codey | Essex |
27 |
D |
Yes |
| Ron Rice | Essex |
28 |
D |
Yes |
| Teresa Ruiz | Essex |
29 |
D |
Yes |
| Bob Singer | Ocean |
30 |
R |
Yes |
| Sandra Cunningham | Hudson |
31 |
D |
Yes |
| Nick Sacco | Hudson |
32 |
D |
Yes |
| Brian Stack | Hudson |
33 |
D |
Yes |
| Nia Gill | Essex |
34 |
D |
NV |
| John Girgenti | Passaic |
35 |
D |
NV |
| Paul Sarlo | Bergen |
36 |
D |
Yes |
| Loretta Weinberg | Bergen |
37 |
D |
Yes |
| Bob Gordon | Bergen |
38 |
D |
Yes |
| Gerald Cardinale | Bergen |
39 |
R |
Yes |
| Kevin O’Toole | Essex |
40 |
R |
Yes |
Finally, and with not a day to spare, Governor Jon Corzine signed the First Right of Refusal bill into law, saving hundreds of small businessman from losing the rights to the business they had spent years building up.