Bill Text: HI SB1428 | 2012 | Regular Session | Introduced
Bill Title: Gasoline Cap; Automatic Reinstatement; Reporting Requirements
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-12-01 - Carried over to 2012 Regular Session. [SB1428 Detail]
Download: Hawaii-2012-SB1428-Introduced.html
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THE SENATE |
S.B. NO. |
1428 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the petroleum industry.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 486H-13, Hawaii Revised Statutes, is amended to read as follows:
"§486H-13 Maximum pre-tax wholesale price for the sale of gasoline; civil actions. (a) Notwithstanding any law to the contrary, no manufacturer, wholesaler, or jobber may sell regular unleaded, mid-grade, or premium gasoline to a dealer retail station, an independent retail station, or to another jobber or wholesaler at a price above the maximum pre-tax wholesale prices established pursuant to subsection (b). The commission shall publish the maximum pre-tax wholesale prices by means that shall include the internet website for the State of Hawaii.
(b) On a weekly basis, the commission shall determine the maximum pre-tax wholesale price of regular unleaded, mid-grade, and premium gasoline as follows: the maximum pre-tax wholesale price of regular unleaded gasoline shall consist of the baseline price for regular unleaded gasoline, plus the marketing margin factor and the zone price adjustment, and for mid-grade and premium gasoline, the applicable mid-grade and premium adjustment factor, such that the maximum pre-tax wholesale gasoline prices reflect and correlate with competitive market conditions.
(c) The baseline price for regular unleaded gasoline referred to in subsection (b) shall be determined on a weekly basis and shall be equal to the average of the three lowest of the four weekly averages of the spot daily price for conventional regular unleaded gasoline or its equivalent standard:
(1) The weekly average of the spot daily price for conventional regular unleaded gasoline for Los Angeles;
(2) The weekly average of the spot daily price for conventional regular unleaded gasoline for New York Harbor;
(3) The weekly average of the spot daily price for conventional regular unleaded gasoline for the United States Gulf Coast; and
(4) The weekly average of the spot daily price for conventional regular unleaded gasoline for Singapore,
as reported and published by the Oil Price Information Service for the five business days of the preceding week; provided that if the preceding week contains a holiday or holidays, then the average of the remaining business days of the preceding week shall be used; and provided further that the commission, in its discretion, may determine a more appropriate baseline or a more appropriate price information reporting service or use multiple price information reporting services.
(d) The marketing margin factor referred to in subsection (b) shall be 14 cents per gallon or as otherwise determined by the commission and shall thereafter be subject to adjustment pursuant to section 486H-16(a).
(e) The mid-grade adjustment factor shall be 5 cents per gallon or as otherwise determined by the commission and shall thereafter be subject to adjustment pursuant to section 486H-16(a).
(f) The premium adjustment factor shall be 9 cents per gallon or as otherwise determined by the commission and shall thereafter be subject to adjustment pursuant to section 486H-16(a).
(g) For purposes of this chapter, the State shall be divided into the following zones:
(1) Zone 1 shall include the island of Oahu;
(2) Zone 2 shall include the island of Kauai;
(3) Zone 3 shall include the island of Maui, except the district of Hana;
(4) Zone 4 shall include the district of Hana on the island of Maui;
(5) Zone 5 shall include the island of Molokai;
(6) Zone 6 shall include the island of Lanai;
(7) Zone 7 shall include the districts of Puna, south Hilo, north Hilo, and Hamakua on the island of Hawaii; and
(8) Zone 8 shall include the districts of north Kohala, south Kohala, north Kona, south Kona, and Kau on the island of Hawaii.
(h) The commission shall establish zone price adjustments to the maximum pre-tax wholesale regular unleaded, mid-grade, and premium gasoline prices on a zone by zone basis.
(i) The zone price adjustments for zones 2 through 8, set forth in subsection (g), shall be divided as follows:
(1) Thirty per cent of the zone price adjustment shall be allocated to the shipper of the gasoline from zone to zone;
(2) Twenty per cent of the zone price adjustment shall be allocated to the terminal holding the gasoline in zones 2 through 8; and
(3) Fifty per cent of the zone price adjustments shall be allocated to the person or entity that delivers the gasoline to the retail station in zones 2 through 8.
(j) Every manufacturer, wholesaler, or jobber[,
upon the request of the commission,] shall furnish to the commission, at
weekly intervals and in the form [requested,] prescribed by the
commission, all documents, data, and information the commission may require
to make its determination on zone price adjustments[.]; provided that
the documents, data, and information shall also be submitted to the commission at
any time the commission so requests.
Any person who refuses or fails to comply with [a
request for information by the commission] this subsection shall be
subject to a fine of up to $50,000 per day. Each day a violation continues
shall constitute a separate offense.
(k) The maximum pre-tax wholesale gasoline
price imposed by this section shall take effect on September 1, 2005,
notwithstanding the lack of the adoption of rules pursuant to this section;
provided that notwithstanding any law to the contrary, the maximum pre-tax
wholesale price under this section shall be suspended indefinitely upon the effective
date of Act 78, Session Laws of Hawaii 2006, and shall not thereafter become
effective until and unless [the governor publishes a notice statewide in
accordance with section 1-28.5 that the reinstatement of the maximum pre-tax
wholesale price under this section is beneficial to the economic well-being,
health, and safety of the people of the State. The] the weekly average
of the spot daily price for conventional regular unleaded gasoline in Hawaii
for the five business days of the preceding week, as reported and published by
an oil price information reporting service selected by the commission, exceeds the
maximum pre-tax wholesale price published by the commission for four
consecutive weeks. The commission shall thereupon publish a statewide notice
in accordance with section 1-28.5 regarding the reinstatement of the maximum
pre-tax wholesale price, which shall become effective five days after
the publication of the notice by the [governor unless otherwise specified by
the governor,] commission and shall remain in effect for thirty
days, after which time it shall be automatically suspended. [Thereafter,
the governor may reinstate the maximum pre-tax wholesale price for thirty-day
periods on the same conditions as set forth above.] Upon a finding that
the maximum pre-tax wholesale price would impose a financial hardship upon a
distributor within a zone, the [governor, in the governor's discretion,]
commission may increase the maximum pre-tax wholesale price for the zone
in an amount determined necessary to eliminate the financial hardship on any
affected distributor who does not operate a refinery within the State. Any
increase in the maximum pre-tax wholesale price shall be included in the notice
published by the [governor.] commission.
[(l) The suspension of the maximum pre-tax
wholesale gasoline price shall suspend the commission's duty to calculate and
publish the maximum pre-tax wholesale gasoline price that would have been in
effect but for the suspension, but shall not suspend or affect:
(1) Any duty to register, timely provide
information, make a report, or file a statement under chapter 486J; or
(2) Any duty of the commission to enforce
chapter 486B.]
[(m)] (l) Any manufacturer,
wholesaler, or jobber who knowingly violates any requirement imposed or rule
adopted under this section, except for subsection (j), shall be subject to a
civil penalty, for each violation, equal to three times the amount of the
overcharge or $250,000, whichever is greater, and shall be liable for the costs
of the action and reasonable attorney's fees as determined by the court.
Within two years from the date the commission obtains actual knowledge of the
violation, the commission may institute a civil action in a court of competent
jurisdiction to collect the civil penalty, the costs, and attorney's fees. In
the case of ongoing violation, the two-year period shall start from the date of
the last violation. The commission may refer any such action to the attorney
general as it deems appropriate. As used in this subsection,
"overcharge" means the number of gallons of gasoline sold, times the
wholesale price at which the manufacturer or jobber sold regular unleaded,
mid-grade, or premium gasoline to a dealer retail station, an independent
retail station, or another jobber or wholesaler, less taxes assessed, less the
maximum pre-tax wholesale gasoline price established pursuant to subsection
(b).
[(n)] (m) The department of
business, economic development, and tourism shall have the power to determine
the extent to which a manufacturer, wholesaler, or jobber is complying with any
requirement imposed or rule adopted under this section, including the power to
compel a manufacturer, wholesaler, or jobber to submit documents, data, and
information necessary and appropriate for the department of business, economic
development, and tourism to determine compliance.
[(o)] (n) The commission shall
report to the governor and the legislature, in a timely manner, on any
significant aberrations, trends, or conditions that may adversely impact the
gasoline consumers in the State.
[(p)] (o) The commission may
adopt rules pursuant to chapter 91 as may be necessary to implement this
section and section 486H-16."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Gasoline Cap; Automatic Reinstatement; Reporting Requirements
Description:
Requires the statutory maximum pre-tax wholesale gasoline price (gas cap) to be automatically reinstated for one month after average weekly prices exceed the gas cap for a certain period of time. Requires zone price adjustment information to be reported regularly to PUC rather than upon request.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
