Report Title:

Petroleum market oversight; service stations; divorcement.

 

Description:

Repeals the service station anti-encroachment laws.  (HB3407 HD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

3407

TWENTY-FOURTH LEGISLATURE, 2008

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO GASOLINE DEALERS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 486H-10.4, Hawaii Revised Statutes, is amended to read as follows:

     "§486H-10.4  [Restrictions on manufacturers or jobbers in operating service stations; lease rent controls; definitions.]  Lease rent controls.  [(a)  Beginning August 1, 1997, no manufacturer or jobber shall convert an existing dealer retail station to a company retail station; provided that nothing in this section shall limit a manufacturer or jobber from:

     (1)  Continuing to operate any company operated retail service stations legally in existence on July 31, 1997;

     (2)  Constructing and operating any new retail service stations as company retail stations constructed after August 1, 1997, subject to subsection (b); or

     (3)  Operating a former dealer retail station for up to twenty-four months until a replacement dealer can be found if the former dealer vacates the service station, cancels the franchise, or is properly terminated or not renewed.

     (b)  No new company retail station shall be located within one-eighth mile of a dealer retail station in an urban area, and within one-quarter mile in other areas.

     (c)(a)  All leases as part of a franchise as defined in section 486H-1, existing on August 1, 1997, or entered into thereafter, shall be construed in conformity with the following:

     (1)  [Such] The renewal shall not be scheduled more frequently than once every three years; and

     (2)  Upon renewal, the lease rent payable shall not exceed fifteen per cent of the gross sales, except for gasoline, which shall not exceed fifteen per cent of the gross profit of product, excluding all related taxes by the dealer [operated] retail [service] station as defined in section 486H-1 [and 486H-10.4 plus], and in the case of a retail [service] station at a location where the manufacturer or jobber is the lessee and not the owner of the ground lease, a percentage increase equal to any increase which the manufacturer or jobber is required to pay the lessor under the ground lease for the service station.  For the purposes of this subsection, "gross amount" means all monetary earnings of the dealer from a dealer [operated] retail [service] station after all applicable taxes, excluding income taxes, are paid.

The provisions of this subsection shall not apply to any existing contracts that may be in conflict with its provisions.

     [(d)] (b)  Nothing in this section shall prohibit a dealer from selling a retail service station in any manner."

     SECTION 2.  Section 486H-10.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§486H-10.5[]]  Violation; penalties.  Any person who violates section [486H-10] 486H-10.4 shall be assessed a civil penalty of $1,000 per day for each violation."

     SECTION 3.  Section 486H-11, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§486H-11[]]  Enforcement of prohibition.  [(a)  The attorney general shall commence a civil action to enforce section 486H-10, by seeking injunctive or any other appropriate relief.  The civil action shall be brought in the circuit court of the circuit where the alleged violation occurred, or where the defendant resides or is doing business.

     (b)]  Any person who is injured in another person's business or property by the violation of section [486H-10,] 486H-10.4 may bring a civil action for damages or injunctive relief, or both, against the person violating section [486H-10.] 486H-10.4.  If the plaintiff prevails, the plaintiff shall be awarded reasonable attorneys and expert witness fees[;], if applicable; provided that if a court awards only nominal damages to the plaintiff, those fees, in the court's discretion, need not be awarded to the plaintiff.  Any action brought under this subsection shall be brought in the circuit court of the circuit where the alleged violation occurred, or where the defendant resides or is doing business."

     SECTION 4.  Section 486H-1, Hawaii Revised Statutes, is amended by deleting the definitions of "other areas", "secondary brand", "self-serve basis", "unbranded", and "urban".

     [""Other areas" means the second congressional district of the State.

     "Secondary brand" means a trade name or trademark, other than a major brand, used to identify a manufacturer's retail service station.

     "Self-serve basis" means that the retail station allows customers to dispense gasoline into vehicles.

     "Unbranded" means an independent retail service station dealer, jobber, heating oil distributor, motor fuel wholesaler, or peddler marketing gasoline or special fuels under its own brand, trade name, or trademark, other than those of a manufacturer, or any subsidiary thereof.

     "Urban" means the first congressional district of the State."]

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

SECTION 7.  This Act shall take effect upon its approval.