Act 329, Session Laws of Hawaii 1993


                                                     S.B. NO. 124


A Bill for an Act Relating to Motor Fuel.

Be It Enacted by the Legislature of the State of Hawaii:

	SECTION 1.  Chapter 486H, Hawaii Revised Statutes, is amended by
adding three new sections to be appropriately designated and to read as
follows:
	
	"§486H-    Prohibition of manufacturer or jobber from operating a
service station.  (a)  From July 31, 1993 to August 1, 1995, no
manufacturer or jobber shall operate a major brand, secondary brand, or
unbranded retail service station in Hawaii to sell its petroleum
products. (b)  For the purposes of this section, the term "to 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. (c) 
This section shall not apply to any individual locations operated by
any manufacturer or jobber on the effective date of this Act.
	
	§486H-    Enforcement of prohibition.  (a)  The attorney general
shall commence a civil action to enforce section 486H- , 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-  , may bring a civil action for damages
or injunctive relief, or both, against the person violating section
486H-  .  If the plaintiff prevails, the plaintiff shall be awarded
reasonable attorneys and expert witness fees; 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.
	
	§486H-   Preemption by federal law.  This chapter shall not be
applied in a manner that would render its application preempted by the
"Petroleum Marketing Practices Act", 15 U.S.C. Sec. 2801, et. seq., or
other applicable federal law."
	
	SECTION 2.  Section 486H-1, Hawaii Revised Statutes, is amended to
read as follows:
	
     "§486H-1  Definitions.  As used in this chapter:
     [(1)] "Franchise" means:
    [(A)] (1)  Any agreement or related agreements between a
               petroleum distributor and a gasoline dealer under
               which the gasoline dealer is granted the right to
               use a trademark, trade name, service mark, or
               other identifying symbol or name owned by the
               distributor in connection with the retail sale of
               petroleum products supplied by the petroleum
               distributor; or 
    [(B)]  (2) Any agreement or related agreements described in
               [subparagraph (A)] paragraph (1) and any agreement
               between a petroleum distributor and a gasoline
               dealer under which the gasoline dealer is granted
               the right to occupy the premises owned, leased, or
               controlled by the distributor, for the purpose of
               engaging in the retail sale of petroleum products
               supplied by the distributor. 
	"Gasoline" includes gasoline, benzol, benzine, naphtha, and any other
liquid prepared, advertised, offered for sale, sold for use as, or used
for, the generation of power for the propulsion of motor vehicles,
including any product obtained by blending together any one or more
petroleum products with or without other products, if the resultant
product is capable of the same use. [(2)] "Gasoline dealer" means any
person engaged in the retail sale of petroleum products in the United
States under a franchise agreement entered into with a petroleum
distributor. [(3)] "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 [which] that is not reasonable
and of material significance to the franchise relationship. [(4)]
"Inventory" means any product sold to a gasoline dealer for resale
purposes by a petroleum distributor. "Jobber" means every wholesaler of
petroleum products. "Major brand" means the primary trade name or
trademark most commonly associated and identified with a manufacturer's
retail service station. "Manufacturer" means every producer or refiner
of petroleum products on January 1, 1992, or any subsidiary of that
producer or refiner. "Motor vehicle fuel" means gasoline, diesel fuel,
alcohol, and any mixture of those fuels suitable for use in vehicles
registered under chapter 286. [(5)] "Petroleum distributor" means any
person engaged in the sale, consignment, or distribution of petroleum
products to retail outlets [which] that it owns, leases, or otherwise
controls. "Petroleum products" includes motor vehicle fuel, residual
oils number 4, 5, and 6, and all grades of jet (turbo) fuel. "Purchase"
means any acquisition of ownership. [(6)] "Retail" means the sale of a
product for purposes other than resale. "Retail service station" means
a place of business where motor vehicle fuel is sold and delivered into
the tanks of motor vehicles. "Sale" means any exchange, gift, or other
disposition. "Secondary brand" means a trade name or trademark, other
than a major brand, used to identify a manufacturer's retail service
station. "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."
	
	SECTION 3.  If a dealer vacates a location, before a replacement
dealer can be found, the facility may be company operated for up to one
hundred twenty days.  If a dealer cancels a lease prior to the
expiration of the lease, or chooses not to accept a franchise renewal
offer, and there is less than three years remaining for that lease, the
facility may be company operated until the termination of that lease.
	
	SECTION 4.  If any provision of this Act, or the application thereof
to any person or circumstance is held invalid, the invalidity does not
affect other provisions or applications of the Act which can be given
effect without the invalid provision or application, and to this end
the provisions of this Act are severable.
	
	SECTION 5.  Statutory material to be repealed is bracketed. New
statutory material is underscored.
	
	SECTION 6.  This Act shall take effect upon its approval.
	
	(Approved June 23, 1993.) 

	Appendix F	Table of Contents