STAND. COM. REP. NO.871
Honolulu, Hawaii
, 2001
RE: H.B. No. 815
H.D. 2
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 815, H.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO GASOLINE DEALERS,"
begs leave to report as follows:
The purpose of this bill is to:
(1) Create another exception to the gasoline retail divorcement law that prohibits a manufacturer or jobber of petroleum products (Company) from converting an existing dealer operated retail service station to a company operated retail service station. Under this new exception, a Company may operate a former dealer operated retail service station when the dealer is a contract dealer, agrees to the operation, and does not sell at retail more than 75,000 gallons of gasoline per month;
(2) Define a "contract dealer" as a dealer operated retail service station that surrenders its unexpired franchise agreement to the Company who owns, leases, or controls the retail service station in consideration for an agreement with the Company to operate the retail service station on mutually agreeable terms; and
(3) Reduce the time that a Company can operate a former dealer operated retail service station from 24 months to six months.
The Hawaii Automotive Repair & Gasoline Dealers Association and several individuals submitted testimony supporting the intent of the bill. Tesoro Hawaii Corporation and several individuals submitted comments on the bill. The Hawaii Coalition of Retail Gasoline Marketers, Aloha Petroleum, Ltd., and Western States Petroleum Association submitted testimony in opposition to the bill.
Your Committee recognizes the diversity of opinions expressed in the testimony submitted to your Committee and has amended this measure by changing the effective date to June 30, 2050 to ensure further analysis of this complex situation. Your Committee hopes that subsequent discussion will conclude with a definitive direction on whether to repeal the divorcement law and allow market forces to prevail, broaden its protective scope, or continue to add exceptions as circumstances dictate.
Your Committee has also amended this measure by making technical, nonsubstantive amendments for purposes of clarity, style, and consistency.
As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 815, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 815, H.D. 2.
Respectfully submitted on behalf of the members of the Committee on Consumer Protection and Commerce,
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____________________________ KENNETH T. HIRAKI, Chair |