Act 238, Session Laws of Hawaii 1995


                                                     S.B. NO. 487


A Bill for an Act Relating to Gasoline Dealers.

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

	SECTSECTION 1.  Chapter 486H, Hawaii Revised Statutes, is amended by
adding a new section to be appropriately designated and to read as
follows:
	
	"§486H-   Violation; penalties.  Any person who violates section
486H-10 shall be assessed a civil penalty of $1,000 per day for each
violation."
	
	SECTION 2.  Section 486H-10, Hawaii Revised Statutes, is amended to
read as follows:
	
	"[[]§486H-10[]]  Prohibition of manufacturer or jobber from operating
a service station.  (a)  From July 31, 1993, to August 1, [1995,] 1997,
no manufacturer or jobber shall operate a major brand, secondary brand,
or unbranded retail service station in Hawaii to sell its petroleum
products[.]; provided that for each dealer operated retail service
station owned by a manufacturer or jobber opened on or after July 31,
1995, that manufacturer or jobber may open one company operated retail
service station, up to a maximum of two company owned retail service
stations. For purposes of this subsection: "Company operated retail
service station" means a retail service station owned and operated by a
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. (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.  Nor shall anything contained in this
section prohibit a manufacturer or jobber from acquiring or
constructing replacement retail service stations to replace any
company- operated retail service stations in existence on July 30,
1993, that have subsequently closed due to the expiration or
termination of the retail service station's ground lease; provided
that:      

     (1)  The manufacturer or jobber shall negotiate in good
          faith to renew the ground lease of the retail service
          stations; and
     (2)  The replacement retail service stations shall be
          located within a one-mile radius of the retail service
          stations that they replace.
	As used in this subsection, "good faith" means an honest and sincere
intention to renew the ground lease of retail service stations."
	
	SECTION 3.  Act 329, Session Laws of Hawaii 1993, is amended by
amending section 3 to read as follows:
	
	"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] one hundred eighty 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.  The attorney general shall provide a legal opinion twenty
days prior to the convening of the regular session of 1996 on whether
permanent divorcement would constitute a "taking" in violation of the
Fifth Amendment of the United States and Hawaii constitutions and any
other legal ramifications which may arise from permanent divorcement
legislation.
	
	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. New
statutory material is underscored.
	
	SECTION 7.  This Act shall take effect upon its approval.
	
	(Approved June 29, 1995.) 	

	Appendix G	Table of Contents