Report Title:
Gasoline Dealers
Description:
Repeals the law relating to restrictions on manufacturers or jobbers in operating service stations, and lease rent controls.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
187 |
|
TWENTY-THIRD LEGISLATURE, 2005 |
||
|
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 Section 486H-10.4, Hawaii Revised Statutes, is repealed.
["[§486H-10.4] Restrictions on manufacturers or jobbers in operating service stations; lease rent controls; definitions. (a) Beginning August 1, 2005, no manufacturer or jobber shall convert an existing dealer operated retail service station to a company operated retail service 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, 2005;
(2) Constructing and operating any new retail service stations as company operated retail service stations constructed after August 1, 2005, subject to subsection (b); or
(3) Operating a former dealer operated retail service 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 operated retail service station shall be located within one-eighth mile of a dealer operated retail service station in an urban area, and within one-quarter mile in other areas. For purposes of this subsection, "urban" means the first congressional district of the State, and "other areas" means the second congressional district of the State.
(c) All leases as part of a franchise as defined in section 486H-1, existing on August 1, 2005, or entered into thereafter, shall be construed in conformity with the following:
(1) Such 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, 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) Nothing in this section shall prohibit a dealer from selling a retail service station in any manner.
(e) For the purposes of this section:
"Company operated retail service station" means a retail service station owned and operated by a manufacturer or jobber and where retail prices are set by that manufacturer or jobber.
"Dealer operated retail service station" means a retail service station owned by a manufacturer or jobber and operated by a qualified gasoline dealer under a franchise.
"Operate" means to engage in the business of selling motor vehicle fuel at a retail service station through any employee, commissioned agent, subsidiary company, or person managing a retail service station under a contract and on a fee arrangement with the manufacturer or jobber.
"Retail" means a sale of gasoline made to the general public at prices that are displayed on the dispensing equipment."]
SECTION 2. Statutory material to be repealed is bracketed.
SECTION 3. This Act shall take effect upon its approval.
|
INTRODUCED BY: |
_____________________________ |
|
_____________________________ |
_____________________________ |
|
_____________________________ |
_____________________________ |
|
_____________________________ |
_____________________________ |
|
_____________________________ |
_____________________________ |
|
_____________________________ |