(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:

Terms Used In Hawaii Revised Statutes 486H-10.4

  • Company retail 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. See Hawaii Revised Statutes 486H-1
  • Dealer retail station: means a retail service station owned by a manufacturer or jobber and operated by a qualified gasoline dealer other than a manufacturer or a jobber under a franchise. See Hawaii Revised Statutes 486H-1
  • Franchise: means :

    (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

    (2) Any agreement or related agreements described in 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. See Hawaii Revised Statutes 486H-1

  • 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. See Hawaii Revised Statutes 486H-1
  • 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. See Hawaii Revised Statutes 486H-1
  • Jobber: means every wholesaler of petroleum products. See Hawaii Revised Statutes 486H-1
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Manufacturer: means every producer or refiner of petroleum products on January 1, 1992, or any subsidiary of that producer or refiner. See Hawaii Revised Statutes 486H-1
  • 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. See Hawaii Revised Statutes 486H-1
  • Other areas: means the second congressional district of the State. See Hawaii Revised Statutes 486H-1
  • Retail: means a sale of gasoline made to the general public at prices that are displayed on the dispensing equipment. See Hawaii Revised Statutes 486H-1
  • retail station: means a place of business where motor vehicle fuel is sold and delivered into the tanks of motor vehicles and includes a company retail station, a dealer retail station, and an independent retail station. See Hawaii Revised Statutes 486H-1
  • Urban: means the first congressional district of the State. See Hawaii Revised Statutes 486H-1
(1) Continuing to operate any company retail station legally in existence on July 31, 1997;
(2) Constructing and operating any new retail service station as a company retail station 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 retail 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) All leases as part of a franchise as defined in § 486H-1, existing on August 1, 1997, 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 retail station as defined in § 486H-1 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 that the manufacturer or jobber is required to pay the lessor under the ground lease for the service station.

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 gasoline dealer from selling a retail service station in any manner.