Report Title:
Petroleum market oversight; service stations; divorcement.
Description:
Repeals the service station anti-encroachment laws.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
3407 |
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TWENTY-FOURTH LEGISLATURE, 2008 |
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STATE OF HAWAII |
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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 "good faith", "other areas", "secondary board", "self-service basis", "unbranded", and "urban".
[""Good faith" means the duty
of a gasoline dealer and a petroleum distributor to act in a fair and equitable
manner in the performance and in the demanding of performance of the terms and
provisions of the franchise. The petroleum distributor shall not impose on a
gasoline dealer by contract, rule, or regulation, whether written or oral, any
standard of conduct that is not reasonable and of material significance to the
franchise relationship.
"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.
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INTRODUCED BY: |
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