Section 199-J. Dealer's right to deal with suppliers other than his distributor

1. Any provision of a franchise which requires a dealer  to
  purchase  or  sell products of the distributor other than motor fuel, or
  which prohibits a dealer from purchasing or  selling  such  products  of
  persons or firms other than the distributor, shall be null and void. Any
  person or firm who is a distributor, or an officer, agent or employee of
  a distributor, who shall threaten, harass, coerce or attempt to coerce a
  dealer for the purpose of compelling the dealer to purchase or sell such
  products  of  the  distributor  or to refrain from purchasing or selling
  such products of persons or firms other than the  distributor  shall  be
  guilty  of a violation and shall be subject to a fine in an amount up to
  five hundred dollars for each violation.
    2. (a) Any provision of a franchise  which  prohibits  a  dealer  from
  purchasing  or  selling  any of the alternative motor fuels set forth in
  paragraph (b) of this subdivision from a person or firm other  than  the
  distributor,  or  limits the quantity of such motor fuel to be purchased
  from such other person or firm, or any provision of  a  franchise  which
  directly  or  indirectly discourages a dealer from purchasing or selling
  such alternative motor fuels from such other person or  firm,  shall  be
  null  and  void as it pertains to that particular alternative motor fuel
  if the distributor does not supply or offer to supply to the dealer such
  alternative motor fuel. Nothing contained in  this  paragraph,  however,
  shall  grant  to  any  dealer  any  rights, authority or obligation with
  respect to the permissible uses of the  premises  or  facilities  owned,
  leased  or  controlled  by  a  distributor  pursuant to the terms of the
  franchise.
    (b) For the purposes of this  section,  the  term  "alternative  motor
  fuel"  shall  mean  any  of  the  following:  (i) a blend of eighty-five
  percent ethanol and fifteen percent gasoline; (ii) a blend of  at  least
  two  percent  methyl-ester,  commonly  referred  to as "bio-diesel", and
  diesel motor fuel; (iii) motor  fuel  comprised  primarily  of  methane,
  stored  in  either  a  gaseous  or liquid state and suitable for use and
  consumption in the engine of a motor vehicle, commonly  referred  to  as
  "compressed natural gas"; or (iv) hydrogen.
    (c)  Any  person or firm who is a distributor, or an officer, agent or
  employee of a distributor, who threatens, harasses, coerces or  attempts
  to  coerce a dealer for the purpose of compelling such dealer to refrain
  from purchasing or selling alternative motor fuel from a person or  firm
  other than the distributor shall be guilty of a violation and be subject
  to a fine in an amount up to one thousand dollars for each violation.
    3.  Franchise  provisions. Any provision of a franchise with a refiner
  which prohibits a dealer, who either directly or  through  an  affiliate
  owns a service station including the tanks and pumps and who dedicates a
  tank  for sale of unbranded motor fuel, or 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,  shall  be  null  and  void.  For purposes of this subdivision and
  subdivisions four, five and six of  this  section  the  following  terms
  shall have the following meanings:
    (a)  "refiner" means any person, firm or corporation who owns, leases,
  operates, controls or supervises a commercial entity producing  gasoline
  or diesel motor fuel;
    (b)  "distributor" means any person other than a refiner or dealer who
  purchases motor fuel at a terminal facility and supplies motor  fuel  to
  service stations; and

    (c)  "unbranded  motor  fuel"  means  motor  fuel which does not use a
  trademark, trade name, service mark, or other identifying symbol or name
  owned by a refiner.
    4.  Labeling of unbranded motor fuels. Under any circumstances where a
  dealer sells unbranded motor fuel, the dealer shall display a sign which
  will be visible to consumers before entering the  station  which  states
  that  unbranded fuel is available for sale. The dealer shall also post a
  sign disclosing that such supply is unbranded on  each  pump  dispensing
  this  fuel.  The  sign shall be at least eight inches by ten inches with
  letters not less than three inches in height. The sign shall be  legible
  to  the  consumer  from  any  point where a vehicle may be refueled. The
  dealer shall cover all logos, trademarks, or other identifying  insignia
  of  the refiner on each dispenser used to dispense the product from such
  tank or pump. The dealer shall not be required to deface  or  cover  any
  other logo, trademark, or insignia at his place of business.
    5.  Sale  of  unbranded  product.  A  dealer  who  is entitled to sell
  unbranded product shall have the right to mix in any storage tank  motor
  fuel  produced or supplied by two or more refiners, including his or her
  refiner, as long as such mixture is stored separately from the refiner's
  supply and is sold as unbranded.  A  dealer  who  is  entitled  to  sell
  unbranded  product shall have the right to mix motor fuel purchased from
  a source other than his or her refiner without regard  to  whether  said
  motor fuel was sold under or carries any brand, trademark, tradename, or
  other  similar  designation.  A  dealer  shall  retail such a mixture as
  "unbranded", "no brand", or other similar  designation  indicating  that
  the  motor  fuel  does not carry a brand, trademark, tradename, or other
  similar designation. A franchisee who markets such a  mixture  shall  be
  subject  to  the  posting  and labeling requirements of this article and
  article sixteen of the agriculture and markets  law.  Any  violation  of
  section one hundred ninety-two-b of the agriculture and markets law by a
  dealer  in regards to the marketing of unbranded fuel under this section
  shall not be deemed a violation of the refiner under subdivision six  of
  such section.
    6.  Sale  of refiner's product. A dealer who has sold motor fuel other
  than that of the refiner by dispensing such motor fuel  from  a  storage
  tank, underground or otherwise, or container or receptacle, shall follow
  the procedures set forth in this section before using such storage tank,
  container,  or  receptacle  for dispensing the branded motor fuel of the
  refiner. Before using such tank to  dispense  the  refiner's  fuel,  the
  dealer  shall first empty the tank. The dealer may then use such tank to
  dispense motor fuel represented to be the product of such refiner.  With
  respect  to  retail gasoline stations, the term "empty the tank" as used
  in this section  means  that  the  pump,  dispenser,  device,  or  other
  equipment  normally used to dispense or pump motor fuel from the storage
  tank into a motor vehicle has reduced the fluid  level  in  the  storage
  tank  to  the  point  where  any additional special equipment, such as a
  vacuum pump, would be necessary to draw out  the  remaining  residue  of
  motor  fuel  in  the tank. The refiner, or his or her employee or agent,
  shall have the right to inspect the tank to ensure that it is  empty  in
  accordance  with this section and that the labeling requirements of this
  section are met.