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From Small Business News May 2002
Legislature Gets an F from Small Business, Taxpayers and Investors.
SB 2179 CD1: Another Governor favored, anti-competitive rate regulation bill puts a cap on gasoline prices. Another sorry first in America for Hawaii. This bill will set wholesale and retail price controls on gasoline. The result will mean less competition in the marketplace as neighborhood gas stations will continue to close when owners cannot pay for the expenses incurred by their operations. During this debate to regulate gas prices, no one suggested cutting the states portion on the per-gallon tax on retail gasoline which at up to 58 per gallon is also the highest in the U.S.
From Small Business News June 2002
Linda Lingle, speaking at the BOMA (Business Owners and Managers Association) legislative panel last month, described Democrat efforts in passing anti-business legislation as back to the future since all major controversial bills have future start up dates: state regulation of health insurance, 2003; gasoline, 2004 and bottle bill tax, 2005.
Excerpts from SB2179 HD1:
Description:
Adds a new part to chapter 196, HRS, energy efficiency in state facilities; Requires DBEDT to establish quarterly, maximum wholesale gasoline price for Hawaii based on the average price of crude oil prices in four markets, prohibits oil companies from charging more than the maximum price to retailers, establishes civil penalties. (SB2179 HD1)
PART II. MAXIMUM WHOLESALE GASOLINE PRICES
SECTION 7. Chapter 486H, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"486H- Restrictions on the sale of gasoline to dealer operated retail service stations; civil actions. (a) Notwithstanding any law to the contrary, and except as provided in subsection (c), no manufacturer or jobber may sell, offer to sell, or agree to sell any gasoline to a dealer operated retail service station, the price of which is in excess of the maximum wholesale price of gasoline established by the department as provided in subsection (b).
(b) The department on a quarterly basis shall determine the maximum wholesale price of gasoline, which shall consist of the average price per barrel of West Texas Intermediate, Alaska North Slope, Saudi Arabian light, and North Sea Brent crude oil, multiplied by 0.035, and based on an octane rating of 87; provided that:
(1) When the octane rating is greater than 87, the maximum wholesale price for each gallon of gasoline sold shall be increased by two cents for each single point increase in octane rating above 87; and
(2) When the octane rating is less than 87, the maximum wholesale price for each gallon of gasoline sold shall be decreased by two cents for each single point decrease in octane rating below 87.
The department shall publish the maximum wholesale price of gasoline by means that shall include the department's internet website.
(c) A manufacturer or jobber may petition the department to readjust the maximum wholesale price of gasoline in the event of an abrupt change in crude oil prices in the world market. The department shall publish its findings and any change in the maximum wholesale price of gasoline by means that shall include the department's internet website.
(d) Any manufacturer or jobber who violates any requirement imposed or rule adopted under this section shall be liable to the State in an amount equal to the sum of:
(1) Three times the amount of actual damages sustained or $500,000, whichever is greater; and
(2) In the case of any successful action to enforce the foregoing liability, the costs of the action, together with reasonable attorney's fees as determined by the court.
An action brought under this section shall be considered a civil action and shall be brought in a court of competent jurisdiction without regard to the amount in controversy within two years from the date on which the liability occurred. The department may refer any such action to the attorney general as it deems appropriate.
(e) The department shall adopt rules pursuant to chapter 91 as may be necessary to implement this section without regard to the public hearing and notice provisions of that chapter."
SECTION 8. Section 486H-1, Hawaii Revised Statutes, is amended by adding five new definitions to be appropriately inserted and to read as follows:
""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.
"Department" means the department of business, economic development, and tourism.
"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."
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