Isle law goes
to high court

A rent cap law will be debated
before the U.S. Supreme Court

The U.S. Supreme Court will hear arguments today on whether Hawaii went too far to keep gasoline affordable when it imposed rent caps on dealer-run stations.

State Attorney General Mark Bennett said the case has far-reaching implications of determining who has the authority to set economic policies for states, municipalities and the federal government.

Lower courts said the 1997 law, intended to protect independent dealers and promote competition, was unconstitutional.

But 30 states, the federal government, National Conference of State Legislatures, National League of Cities and National Governors Association have filed legal briefs in support of Hawaii.

The reason why so many states and municipalities have sided with Hawaii is not because they are concerned with rent cap litigation, Bennett said, but they are concerned with the fundamental democratic principal of what can be done to change laws that are believed to be unwise.

"If voters are unhappy with their legislators, the remedy is for them to elect new legislators," Bennett said in a telephone interview from Washington, D.C. "The remedy is not and should not be for the courts to second-guess legislatures as to whether or not the social or economic legislation they adopt is wise or unwise, efficient or inefficient."

Hawaii lawmakers passed the rent cap bill after concerns were raised that isle motorists were paying too much for gasoline. The law restricted what lease rents oil companies could charge for their dealer-owned stations and prohibited the company from taking over those stations.

Chevron USA filed a challenge to the law and won on grounds that the law was an unconstitutional taking of its property.

Hawaii argued that such economic regulations are not property takings and that judges should consider states' authority to determine policy.

Bennett said he will argue for 20 minutes before the high court and that the U.S. solicitor general will argue for 10 minutes.

"Whether (the law) is going to help Hawaii consumers or not is left to the Legislature, and the only way a law should be declared unconstitutional is if it's arbitrary or irrational," Bennett said. "That argument has neither been made in this case, nor has any court found that this law is arbitrary or irrational."

Hawaii has been trying for years to control island motorists' gas prices. It also passed a law imposing limits on gas prices, which begins in September.

Hawaii traditionally has had the highest gas prices in the nation.

Yesterday, the average price for a gallon of regular unleaded in Hawaii was $2.41, 51 cents higher than the national average, according to AAA.

California ($2.16), Nevada ($2.11) and New York ($2.03) were the only other states above $2, according to the auto club.

A state Attorney General report from the late 1990s showed Chevron Corp. made about 23 percent of its profits in Hawaii alone, which accounts for only 3 percent of its market.