REPORT TITLE:
Gasoline Dealers


DESCRIPTION:
Repeals the law relating to restrictions on manufacturers or
jobbers in operating service stations, and lease rent controls.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2340
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO RESTRICTIONS ON MANUFACTURERS OR JOBBERS IN OPERATING
   SERVICE STATIONS, AND LEASE RENT CONTROLS.



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

 1      SECTION 1.  Section 486H-10.4, Hawaii Revised Statutes, is
 
 2 repealed.
 
 3      ["[§486H-10.4]  Restrictions on manufacturers or jobbers in
 
 4 operating service stations; lease rent controls; definitions.
 
 5 (a)  Beginning August 1, 1997, no manufacturer or jobber shall
 
 6 convert an existing dealer operated retail service station to a
 
 7 company operated retail service station; provided that nothing in
 
 8 this section shall limit a manufacturer or jobber from:
 
 9      (1)  Continuing to operate any company operated retail
 
10           service stations legally in existence on July 31, 1997;
 
11      (2)  Constructing and operating any new retail service
 
12           stations as company operated retail service stations
 
13           constructed after August 1, 1997, subject to subsection
 
14           (b); or
 
15      (3)  Operating a former dealer operated retail service
 
16           station for up to twenty-four months until a
 
17           replacement dealer can be found if the former dealer
 
18           vacates the service station, cancels the franchise, or
 
19           is properly terminated or not renewed.
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1      (b)  No new company operated retail service station shall be
 
 2 located within one-eighth mile of a dealer operated retail
 
 3 service station in an urban area, and within one-quarter mile in
 
 4 other areas.  For purposes of this subsection, "urban" means the
 
 5 first congressional district of the State, and "other areas"
 
 6 means the second congressional district of the State.
 
 7      (c)  All leases as part of a franchise as defined in section
 
 8 486H-1, existing on August 1, 1997, or entered into thereafter,
 
 9 shall be construed in conformity with the following:
 
10      (1)  Such renewal shall not be scheduled more frequently
 
11           than once every three years; and
 
12      (2)  Upon renewal, the lease rent payable shall not exceed
 
13           fifteen per cent of the gross sales, except for
 
14           gasoline, which shall not exceed fifteen per cent of
 
15           the gross profit of product, excluding all related
 
16           taxes by the dealer operated retail service station as
 
17           defined in section 486H-1 and 486H-10.4 plus, in the
 
18           case of a retail service station at a location where
 
19           the manufacturer or jobber is the lessee and not the
 
20           owner of the ground lease, a percentage increase equal
 
21           to any increase which the manufacturer or jobber is
 
22           required to pay the lessor under the ground lease for
 
23           the service station.  For the purposes of this
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1           subsection, "gross amount" means all monetary earnings
 
 2           of the dealer from a dealer operated retail service
 
 3           station after all applicable taxes, excluding income
 
 4           taxes, are paid.
 
 5 The provisions of this subsection shall not apply to any existing
 
 6 contracts that may be in conflict with its provisions.
 
 7      (d)  Nothing in this section shall prohibit a dealer from
 
 8 selling a retail service station in any manner.
 
 9      (e)  For the purposes of this section:
 
10      "Company operated retail service station" means a retail
 
11 service station owned and operated by a manufacturer or jobber
 
12 and where retail prices are set by that manufacturer or jobber.
 
13      "Dealer operated retail service station" means a retail
 
14 service station owned by a manufacturer or jobber and operated by
 
15 a qualified gasoline dealer under a franchise.
 
16      "Operate" means to engage in the business of selling motor
 
17 vehicle fuel at a retail service station through any employee,
 
18 commissioned agent, subsidiary company, or person managing a
 
19 retail service station under a contract and on a fee arrangement
 
20 with the manufacturer or jobber.
 
21      "Retail" means a sale of gasoline made to the general public
 
22 at prices that are displayed on the dispensing equipment."]
 
23      SECTION 2.  Statutory material to be repealed is bracketed.
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1      SECTION 3.  This Act shall take effect upon its approval.
 
 2 
 
 3                              INTRODUCED BY:______________________