STAND. COM. REP. NO. 1562

Honolulu, Hawaii

, 2001

RE: H.B. No. 815

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 815, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO GASOLINE DEALERS,"

begs leave to report as follows:

The purpose of this measure is to further limit the period during which a manufacturer or jobber may operate a former dealer-operated retail service station, pending the replacement of the station's dealer, and to allow a manufacturer or jobber to operate a dealer-operated retail service station if the current or new dealer agrees to and has a contractual interest in the operation, subject to certain requirements.

The Hawaii Automotive Repair and Gasoline Dealers Association and nine individuals testified in support of this measure. The Hawaii Coalition of Retail Gasoline Marketers, Tesoro Hawaii, and three individuals supported the measure with amendments. Opposing testimony was received from the Western States Petroleum Association and Aloha Petroleum.

This measure reduces the amount of time during which an oil manufacturer or jobber may operate a retail service station, pending the replacement of the station's dealer, from twenty-four months to six months. This measure also establishes an additional exception to the divorcement law by allowing a manufacturer or jobber to operate a former dealer-operated retail service station if the current or new dealer agrees to and has a contractual interest in the operation, subject to the requirement that the contract dealer does not sell at retail more than seventy-five thousand gallons of gasoline per month for every six-month period of operation.

Your Committee has amended this measure by replacing its contents with the language of S.B. No. 653, S.D. 1. As amended this measure:

(1) Retains the current twenty-four month period during which a manufacturer or jobber may operate a former dealer-operated retail service station, pending the replacement of the former dealer;

(2) Allows a manufacturer or jobber to operate a former dealer-operated retail service station when the current or new dealer agrees to and has a contractual interest in the operation, but without the gallonage requirement and without defining "contract dealer; and

(3) Takes effect on July 1, 2050.

Your Committee notes that this measure merely amends the divorcement law to provide an option to a dealer who chooses to no longer retain an ownership interest in a retail operation, and does not repeal the general prohibition against the operation or conversion of a dealer-operated service station by a manufacturer or jobber.

As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 815, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 815, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,

____________________________

RON MENOR, Chair