REPORT TITLE:
Motor carriers


DESCRIPTION:
Deregulates all state-regulated aspects of motor carriers, except
the regulation of motor carrier safety.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
HOUSE OF REPRESENTATIVES                H.B. NO.566        
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO MOTOR CARRIERS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that the purpose of the
 
 2 public utilities commission of the State is, in part, to regulate
 
 3 those business activities which, absent any regulation, would
 
 4 function as monopolies to the detriment of the public.  Where
 
 5 monopolistic conditions might otherwise exist, it is in the
 
 6 public interest that government regulate aspects of business
 
 7 activity, such as entry into the market, rates, tariffs, stock
 
 8 offerings, and other matters.
 
 9      The public utilities commission regulates most motor
 
10 carriers, primarily tour buses and trucks.  However, the
 
11 legislature finds that this is not a naturally monopolistic
 
12 industry, and that, absent current regulation, greater
 
13 competition would exist in the State for motor carriers.  It
 
14 further finds that the public interest will be served if
 
15 entrepreneurs have free entry into the motor carrier market.  The
 
16 public interest will also be served if rates and tariffs are not
 
17 regulated, allowing such tariffs and rates, and other aspects of
 
18 business activity such as customer service, to respond to market
 

 
Page 2                                                     
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1 pressures.  Thus, the legislature finds that free competition
 
 2 will serve the public interest because competitors will strive to
 
 3 provide the public with better service at cheaper rates.
 
 4      The legislature finds that the department of transportation
 
 5 regulates safety for all motor carriers and that motor carrier
 
 6 safety should continue to be regulated by the department of
 
 7 transportation.
 
 8      The purpose of this Act is to deregulate all currently
 
 9 state-regulated aspects of motor carriers, except for the
 
10 regulation of motor carrier safety, which shall continue to be
 
11 regulated by the department of transportation.
 
12      SECTION 2.  Chapter 445, Hawaii Revised Statutes, is amended
 
13 by adding two new sections to be appropriately designated and to
 
14 read as follows:
 
15      "445-      Fee to carry passengers.  The annual fee for a
 
16 license to carry passengers for hire or compensation in
 
17 privately-operated passenger vehicles with a seating capacity of
 
18 no more than seven passengers shall be equal to one-fourth of one
 
19 per cent of the gross revenues from the carrier's business during
 
20 the preceding calendar year or $20, whichever is greater.  The
 
21 annual fee for a license to carry passengers for hire for all
 
22 other vehicles shall be $5 for each vehicle.
 

 
Page 3                                                     
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      445-      Certificate; revocation of license.  All
 
 2 passenger-carrying vehicles shall comply with the motor vehicle
 
 3 safety inspection requirements and compulsory insurance
 
 4 requirements for common carriers and shall be certified by the
 
 5 treasurer or director of finance prior to the issuance of a
 
 6 business license.
 
 7      The chief executive officer and the police department of the
 
 8 county or their duly authorized subordinates may inspect the
 
 9 vehicle for good, serviceable, and safe conditions for the
 
10 transportation of passengers.  The officers or inspectors may
 
11 temporarily suspend or revoke a license issued, when, upon
 
12 examination of the vehicle, the vehicle is found to be
 
13 unserviceable, dangerous, or unsafe for the transportation of
 
14 passengers; provided that the treasurer of the county shall be
 
15 given notice of the suspension or revocation.
 
16      The treasurer of the county shall require proof of liability
 
17 insurance for the benefit of the privately-operated passenger
 
18 carrier from all passenger-carrying vehicles for hire prior to
 
19 the issuance and renewal of a business license."
 
20      SECTION 3.  Section 46-16.5, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "46-16.5  Public passenger vehicle regulation.(a)  The
 
23 legislature finds and declares the following:
 

 
Page 4                                                     
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      (1)  The orderly regulation of vehicular traffic on the
 
 2           streets and highways of Hawaii is essential to the
 
 3           welfare of the State and its people;
 
 4      (2)  Privately-operated public passenger vehicle service
 
 5           provides vital transportation links within the State.
 
 6           Public passenger vehicle service operated in the
 
 7           counties enables the State to provide the benefits of
 
 8           privately-operated, demand-responsive transportation
 
 9           services to its people and to persons who travel to the
 
10           State for business or tourist purposes;
 
11      (3)  The economic viability and stability of privately-
 
12           operated public passenger vehicle service is
 
13           consequently a matter of statewide importance[;].  The
 
14           public utilities commission regulates certain
 
15           classifications of common and contract motor vehicles
 
16           of passengers.  To avoid unnecessary duplication of
 
17           regulatory activities, it is the policy of the State
 
18           that these classifications of passenger carriers
 
19           regulated by the public utilities commission shall not
 
20           be regulated by the counties in the following aspects:
 
21           (A)  Entry into the business of providing public
 
22                passenger vehicle service within the jurisdiction
 
23                of that county;
 

 
Page 5                                                     
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1           (B)  The rated charge for the provision of public
 
 2                passenger vehicle service; and
 
 3           (C)  The fixed routes or points where the public
 
 4                passenger vehicle service may be rendered;
 
 5      (4)  The policy of the State is to promote safe and reliable
 
 6           privately-operated public passenger vehicle service to
 
 7           provide the benefits of that service.  In furtherance
 
 8           of this policy, the legislature recognizes and affirms
 
 9           that the regulation of privately-operated public
 
10           passenger vehicle service is an essential governmental
 
11           function[;] in the following aspects:
 
12           (A)  Public health;
 
13           (B)  Safety; and
 
14           (C)  Financial or insurance responsibility;
 
15      [(5) The policy of the State is to require that counties
 
16           regulate privately-operated public passenger vehicle
 
17           service and not subject a county or its officers to
 
18           liability under the federal antitrust laws;]
 
19     [(6)] (5)  The policy of the State is to further promote
 
20           privately-operated public passenger vehicle service[,]
 
21           including [but not limited to, the]:
 
22           (A)  The picking up and discharge of passengers from
 
23                various unrelated locations by taxicabs; and
 

 
Page 6                                                     
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1           (B)  The hiring of public passenger vehicles with a
 
 2                seating capacity of up to seven passengers,
 
 3                including limousines for hire, which are not
 
 4                regulated by the public utilities commission;
 
 5           and
 
 6     [(7)] (6)  The policy of the State is to further promote
 
 7           privately-operated public passenger vehicle service by
 
 8           requiring jitney services [not] to be regulated by the
 
 9           counties [to be under the jurisdiction of the public
 
10           utilities commission].  For the purposes of this
 
11           paragraph, "jitney services" means public
 
12           transportation services utilizing motor vehicles that
 
13           have seating accommodations for six to twenty-five
 
14           passengers, operate along specific routes during
 
15           defined service hours, and levy a flat fare schedule.
 
16     (b)  Any other law to the contrary notwithstanding, where not
 
17 within the jurisdiction of the public utilities commission, every
 
18 county may provide rules to protect the public health, safety,
 
19 and welfare by licensing, controlling, and regulating, by
 
20 ordinance or resolution, public passenger vehicle service
 
21 operated within the jurisdiction of the county; provided that the
 
22 counties shall promote the policies set forth in subsection (a).
 

 
Page 7                                                     
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1     (c)  Every county is empowered to regulate:
 
 2     [(1)  Entry into the business of providing public passenger
 
 3           vehicle service within the jurisdiction of that county.
 
 4      (2)  The rates charged for the provision of public passenger
 
 5           vehicle service.]
 
 6      (1)  Public health;
 
 7      (2)  Safety requirements;
 
 8      (3)  Financial responsibility or insurance requirements; and
 
 9     [(3)] (4)  The establishment of stands to be employed by one
 
10           or a limited number of providers of public passenger
 
11           vehicle service."
 
12      SECTION 4.  Section 92-28, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "92-28  State service fees; increase or decrease of.  [Any
 
15 law to the contrary notwithstanding,] Notwithstanding any law to
 
16 the contrary, the fees or other nontax revenues assessed or
 
17 charged by any board, commission, or other governmental agency
 
18 may be increased or decreased by the body in an amount not to
 
19 exceed fifty per cent of the statutorily assessed fee or nontax
 
20 revenue[, in order] to maintain a reasonable relation between the
 
21 revenues derived from such fee or nontax revenue and the cost or
 
22 value of services rendered, comparability among fees imposed by
 
23 the State, or any other purpose [which] that it may deem
 
24 necessary and reasonable; provided that:
 
Page 8                                                     
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      (1)  The authority to increase or decrease fees or nontax
 
 2           revenues shall be subject to the approval of the
 
 3           governor and extend only to the following:  chapters
 
 4           36, 92, 94, 142, 144, 145, 147, 150, 171, 188, 189,
 
 5           231, 269, [271,] 321, 338, 373, 412, 415, 421, 425,
 
 6           431, 438, 439, 440, 442, 447, 448, 452, 453, 455, 456,
 
 7           457, 458, 459, 460, 461, 463, 464, 466, 467, 469, 471,
 
 8           482, 485, 501, 502, 505, 572, 574, and 846 (pt II);
 
 9      (2)  The authority to increase or decrease fees or nontax
 
10           revenues established by the University of Hawaii under
 
11           chapters 304, 305, 306, and 308 shall be subject to the
 
12           approval of the board of regents; provided that the
 
13           board's approval of any increase or decrease in tuition
 
14           for regular credit courses shall be preceded by an open
 
15           public meeting held during or prior to the semester
 
16           preceding the semester to which the tuition applies;
 
17      (3)  This section shall not apply to judicial fees as may be
 
18           set by any chapter cited in this section; and
 
19      (4)  The authority to increase or decrease fees or nontax
 
20           revenues pursuant to this section shall be exempt from
 
21           the public notice and public hearing requirements of
 
22           chapter 91."
 

 
Page 9                                                     
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      SECTION 5.  Section 239-2, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "239-2 Definitions.  As used in this chapter unless
 
 4 otherwise required by the context:
 
 5      "Carrier" means a person who engages in transportation, and
 
 6 does not include a person such as freight forwarder or tour
 
 7 packager who provides transportation by contracting with others,
 
 8 except to the extent that [such] the person [oneself] engages in
 
 9 transportation[.]; provided that the term shall not apply to a
 
10 person who engages in transportation by land.
 
11      "Contract carrier" means a person other than a public
 
12 utility [or taxicab which,] that under contracts or agreements,
 
13 engages in the transportation of persons or property for
 
14 compensation[,] by [land,] water[,] or air.
 
15      "Gross income" means the gross income from public service
 
16 company business as follows:
 
17      (A)  Gross income from the production, conveyance,
 
18           transmission, delivery, or furnishing of light, power,
 
19           heat, cold, water, gas, or oil;
 
20      (B)  Gross income from the transportation of passengers or
 
21           freight[, or] by air or water, the conveyance or
 
22           transmission of [telephone or telegraph]
 
23           telecommunications messages, or the furnishing of
 

 
Page 10                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1           facilities for the transmission of intelligence by
 
 2           electricity[, by land or water or air]:
 
 3           (i)  Originating and terminating within this State;
 
 4          (ii)  By means of vessels or aircraft having their home
 
 5                port in the State and operating between ports or
 
 6                airports in the State, with respect to the
 
 7                transportation so effected; or
 
 8         (iii)  By means of plant or equipment located in the
 
 9                State, between points in the State;
 
10           or
 
11      (C)  Gross income from [the transportation of freight by
 
12           motor carriers (other than as stated in subparagraph
 
13           (B)), or] the conveyance or transmission of messages or
 
14           intelligence through wires or cables located or partly
 
15           located in the State [(], other than as stated in
 
16           subparagraph (B)[)].
 
17           The words "gross income" and "gross income from public
 
18      service company business" shall not be construed to include
 
19      dividends (as defined by chapter 235) paid by one member of
 
20      an affiliated public service company group to another member
 
21      of the same group; or gross income from the sale or transfer
 
22      of materials or supplies, interest on loans, or the
 
23      provision of engineering, construction, maintenance, or
 

 
Page 11                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      managerial services by one member of an affiliated public
 
 2      service company group to another member of the same group.
 
 3      "Affiliated public service company group" means an
 
 4      affiliated group of domestic corporations within the meaning
 
 5      of chapter 235, all of the members of which are public
 
 6      service companies.  "Member of an affiliated public service
 
 7      company group" means a corporation (including the parent
 
 8      corporation) [which] that is included within an affiliated
 
 9      public service company group.
 
10           Where the transportation of passengers or property is
 
11      furnished through arrangements between motor carriers, and
 
12      the gross income is divided between the motor carriers, any
 
13      tax imposed by this chapter shall apply to each motor
 
14      carrier with respect to each motor carriers' respective
 
15      portion of the proceeds.
 
16           [Where tourism related services are furnished through
 
17      arrangements made by a travel agency or tour packager and
 
18      the gross income is divided between the provider of the
 
19      services on the one hand and the travel agency or tour
 
20      packager on the other hand, any tax imposed by this chapter
 
21      shall apply to each person with respect to each person's
 
22      respective portion of the proceeds.]
 

 
Page 12                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      Accounts found to be worthless and actually charged off for
 
 2      income tax purposes, at corresponding periods, may be
 
 3      deducted from gross income as specified under this chapter
 
 4      so far as they reflect taxable sales, but shall be added to
 
 5      gross income when and if subsequently collected.
 
 6      [As used in this paragraph "tourism related services" means
 
 7      motor carriers of passengers regulated by the public
 
 8      utilities commission.]
 
 9      ["Motor carrier" means a common carrier or contract carrier
 
10 transporting persons or property for compensation on the public
 
11 highways, other than a public utility or taxicab.]
 
12      The "net operating income" of a public utility subject to
 
13 the tax rate imposed by section 239-5(a) is the operating
 
14 revenues less the operating expenses and tax accruals, including
 
15 in the computation of [such] these revenues and expenses, debits
 
16 and credits arising from equipment rents and joint facility
 
17 rents.  In the event that, but for this [sentence,] paragraph,
 
18 deductions could not be had for expenses of services because such
 
19 services were rendered by the same person or persons constituting
 
20 the public utility or could not be had for income taxes, because
 
21 such taxes were levied against the person or persons constituting
 
22 the public utility in the person's or their individual capacity
 
23 and not as a separate entity, there nevertheless shall be allowed
 
24 as deductions in computing the net operating income [a]:
 
Page 13                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      (A)  A reasonable allowance for the value of personal
 
 2           services actually rendered[,]; and
 
 3      (B)  [such] The proportion of the actual amount of income
 
 4           taxes,  federal and state, as fairly represents the
 
 5           portion of the income so taxed [which] that was derived
 
 6           from the public utility business.
 
 7      "Partner" means the same as in the Internal Revenue Code.
 
 8      "Partnership" means the same as in the Internal Revenue
 
 9 Code.
 
10      "Ports", "airports", or "points in the State" shall be
 
11 deemed to be such if they are loading, unloading, transshipment,
 
12 assembly, transfer, or relay points.
 
13      ["Public highways" has the meaning defined by section 264-1
 
14 including both state and county highways, but operation upon
 
15 rails shall not be deemed transportation on the public highways.] 
 
16      "Public service company" means a public utility[, motor
 
17 carrier,] or contract carrier.
 
18      "Public utility" has the [meaning given that term] same
 
19 meaning set forth in section 269-1."
 
20      SECTION 6.  Section 239-5, Hawaii Revised Statutes, is
 
21 amended to read as follows:
 
22      "239-5 Public utilities, generally.(a)  There shall be
 
23 levied and assessed upon each public utility, except airlines,
 

 
Page 14                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1 [motor carriers,] common carriers by water, and contract carriers
 
 2 taxed by section 239-6, a tax of such rate per cent of its gross
 
 3 income each year from its public utility business as shall be
 
 4 determined in the manner hereinafter provided.  The tax imposed
 
 5 by this section is in lieu of all taxes other than those below
 
 6 set out, and is a means of taxing the real property (owned by the
 
 7 public utility or leased to it by a lease under which the public
 
 8 utility is required to pay the taxes upon the property), and the
 
 9 personal property of the public utility, tangible and intangible,
 
10 including going concern value.  In addition to the tax imposed by
 
11 this chapter there also are imposed income taxes, the specific
 
12 taxes imposed by chapter 249, the fees prescribed by chapter 269,
 
13 any tax specifically imposed by the terms of the public utility's
 
14 franchise or under chapter 240, the use or consumption tax
 
15 imposed by chapter 238, and employment taxes.
 
16      The rate of the tax upon the gross income of the public
 
17 utility shall be determined as follows:
 
18      (1)  If the ratio of the net income of the company to its
 
19           gross income is fifteen per cent or less, the rate of
 
20           the tax on gross income shall be 5.885 per cent; [for]
 
21           and
 
22      (2)  For all companies having net income in excess of
 
23           fifteen per cent of the gross, the rate of the tax on
 

 
Page 15                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1           gross income shall increase continuously in proportion
 
 2           to the increase in ratio of net income to gross, at
 
 3           such rate that for each increase of one per cent in the
 
 4           ratio of net income to gross, there shall be an
 
 5           increase of .2675 per cent in the rate of the tax.
 
 6      The following formula may be used to determine the rate, in
 
 7 which formula the term "R" is the ratio of net income to gross
 
 8 income, and "X" is the required rate of the tax on gross income
 
 9 for the utility in question:
 
10                        X=(1.8725+26.75R)%;
 
11 provided that in no case governed by the formula shall "X" be
 
12 less than 5.885 per cent or more than 8.2 per cent.
 
13      However, if the gross income is apportioned under section
 
14 239-8(b) or (c), there shall be no adjustment of the rate of tax
 
15 on the amount of gross income so apportioned to the State on
 
16 account of the ratio of the net income to the gross income being
 
17 in excess of fifteen per cent, and it shall be assumed in such
 
18 case that the ratio is fifteen per cent or less.
 
19      [(b)  Notwithstanding subsection (a), the rate of the tax
 
20 upon the portion of the gross income of a carrier of passengers
 
21 by land which consists in passenger fares for transportation
 
22 between points on a scheduled route, shall be 5.35 per cent.
 

 
Page 16                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1 However, if the carrier has other public utility gross income the
 
 2 fares nevertheless shall be included in applying subsection (a)
 
 3 in determining the rate of tax upon the other public utility
 
 4 gross income.
 
 5      (c)] (b)  Notwithstanding subsection (a), the rate of tax
 
 6 upon the portion of the gross income of a public utility [which]
 
 7 that consists of the receipts from the sale of its products or
 
 8 services to another public utility [which] that resells such
 
 9 products or services shall be one-half of one per cent[,];
 
10 provided that [the]:
 
11      (1)  The resale is subject to taxation under this section[,
 
12           and provided further that the]; and
 
13      (2)  The public utility's exemption from real property taxes
 
14           imposed by chapter 246 shall be reduced by the
 
15           proportion that its public utility gross income
 
16           described herein bears to its total public utility
 
17           gross income.
 
18 Whenever the public utility has other public utility gross
 
19 income, the gross income from the sale of its products or
 
20 services to another public utility shall be included in applying
 
21 subsection (a) in determining the rate of tax upon the other
 
22 public utility gross income."
 

 
Page 17                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      SECTION 7.  Section 239-6, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "239-6 Airlines, certain carriers.  There shall be levied
 
 4 and assessed upon each airline a tax of four per cent of its
 
 5 gross income each year from the airline business; provided that
 
 6 if an airline adopts a rate schedule for students in grade twelve
 
 7 or below travelling in school groups providing such students at
 
 8 reasonable hours a rate less than one-half of the regular adult
 
 9 fare, the tax shall be three per cent of its gross income each
 
10 year from the airline business.  There shall be levied and
 
11 assessed upon [each motor carrier,] each common carrier by
 
12 water[,] and upon each contract carrier [other than a motor
 
13 carrier,] not providing transportation by land, a tax of four per
 
14 cent of its gross income each year from the [motor carrier or]
 
15 contract carrier business.  The tax imposed by this section is a
 
16 means of taxing the personal property of the airline or other
 
17 carrier, tangible and intangible, including going concern value,
 
18 and is in lieu of the tax imposed by chapter 237 but is not in
 
19 lieu of any other tax."
 
20      SECTION 8.  Section 269-1, Hawaii Revised Statutes, is
 
21 amended as follows:
 
22      1.  By amending the definition of "enforcement officer" to
 
23 read:
 

 
Page 18                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      ""Enforcement officer" means any person employed and
 
 2 authorized by the commission to investigate any matter on behalf
 
 3 of the commission.  [The term also means a motor vehicle safety
 
 4 officer employed and assigned, pursuant to section 271-38, by the
 
 5 department of transportation to enforce sections 271-8, 271-12,
 
 6 271-13, and 271-29 through assessment of civil penalties as
 
 7 provided in section 271-27(h), (i), and (j).]"
 
 8      2.  By amending the definition of "public utility" to read:
 
 9      ""Public utility" includes every person who may own,
 
10 control, operate, or manage as owner, lessee, trustee, receiver,
 
11 or otherwise, whether under a franchise, charter, license,
 
12 articles of association, or otherwise, any plant or equipment, or
 
13 any part thereof, directly or indirectly for public use, for the
 
14 transportation of passengers or freight[, or] by air or water,
 
15 the conveyance or transmission of telecommunications messages, or
 
16 the furnishing of facilities for the transmission of intelligence
 
17 by electricity [by land or water or air] within the State[,] or
 
18 between points within the State[, or]; for the production,
 
19 conveyance, transmission, delivery, or furnishing of light,
 
20 power, heat, cold, water, gas, or oil[, or]; for the storage or
 
21 warehousing of goods[, or]; or for the disposal of sewage;
 
22 provided that the term:
 

 
Page 19                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      (1)  Shall include any person insofar as that person owns or
 
 2           operates a private sewer company or sewer facility;
 
 3      (2)  Shall include telecommunications [carrier] carriers or
 
 4           telecommunications common [carrier;] carriers;
 
 5      (3)  Shall not include any person insofar as that person
 
 6           owns or operates an aerial transportation enterprise;
 
 7      (4)  Shall not include persons owning or operating taxicabs,
 
 8           as defined in this section;
 
 9      (5)  Shall not include common carriers transporting [only
 
10           freight on the public highways, unless operating within
 
11           localities or along routes or between points that the
 
12           public utilities commission finds to be inadequately
 
13           serviced without regulation under this chapter;]
 
14           passengers or freight by land;
 
15      (6)  Shall not include persons engaged in the business of
 
16           warehousing or storage unless the commission finds that
 
17           regulation thereof is necessary in the public interest;
 
18      (7)  Shall not include:
 
19           (A)  The business of any carrier by water to the extent
 
20                that the carrier enters into private contracts for
 
21                towage, salvage, hauling, or carriage between
 
22                points within the State and the carriage is not
 
23                pursuant to either an established schedule or an
 

 
Page 20                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1                undertaking to perform carriage services on behalf
 
 2                of the public generally; and
 
 3           (B)  The business of any carrier by water,
 
 4                substantially engaged in interstate or foreign
 
 5                commerce, transporting passengers on luxury
 
 6                cruises between points within the State or on
 
 7                luxury round-trip cruises returning to the point
 
 8                of departure;
 
 9      (8)  Shall not include any person who:
 
10           (A)  Controls, operates, or manages plants or
 
11                facilities for the production, transmission, or
 
12                furnishing of power primarily or entirely from
 
13                nonfossil fuel sources; and
 
14           (B)  Provides, sells, or transmits all of that power,
 
15                except such power as is used in its own internal
 
16                operations, directly to a public utility for
 
17                transmission to the public;
 
18      (9)  Shall not include a telecommunications provider only to
 
19           the extent determined by the commission pursuant to
 
20           section 269-16.9; and
 
21     (10)  Shall not include any person who controls, operates, or
 
22           manages plants or facilities developed pursuant to
 
23           chapter 167 for conveying, distributing, and
 

 
Page 21                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1           transmitting water for irrigation and such other
 
 2           purposes that shall be held for public use and purpose.
 
 3     In the event the application of this chapter is ordered by
 
 4 the commission in any case provided in paragraphs [(5),] (6),
 
 5 (9), and (10), the business of any public utility that presents
 
 6 evidence of bona fide operation on the date of the commencement
 
 7 of the proceedings resulting in the order shall be presumed to be
 
 8 necessary to public convenience and necessity, but any
 
 9 certificate issued under this proviso shall nevertheless be
 
10 subject to such terms and conditions as the commission may
 
11 prescribe, as provided in sections 269-16.9 and 269-20."
 
12     SECTION 9.  Section 269-20, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "269-20  Certificates of public convenience and necessity
 
15 for water carriers.(a)  No person which holds itself out to the
 
16 general public to engage in the transportation by water of
 
17 passengers or property or any class or classes thereof for
 
18 compensation, between points in the State of Hawaii, shall
 
19 operate unless there is in force with respect to such carrier a
 
20 certificate of public convenience and necessity issued by the
 
21 commission authorizing such transportation; provided that this
 
22 section shall not apply to any carrier by water to the extent
 
23 that the carrier is excluded from the definition of a public
 
24 utility under section 269-1(6).
 
Page 22                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      (b)  Applications for certificates shall be made in writing
 
 2 under oath to the commission in such form as it requires.
 
 3      (c)  A certificate shall be issued to any qualified
 
 4 applicant therefor, authorizing the whole or any part of the
 
 5 operations covered by the application, if it is found that the
 
 6 applicant is fit, willing, and able properly to perform the
 
 7 service proposed and to conform to the provisions of this chapter
 
 8 and the requirements, rules and regulations of the commission
 
 9 thereunder, and that the proposed service, to the extent
 
10 authorized by the certificate, is or will be required by the
 
11 present or future public convenience and necessity; otherwise
 
12 such application shall be denied.  Any certificate issued shall
 
13 specify the service to be rendered and the routes and ports which
 
14 the water carrier is to serve and there shall be attached to the
 
15 exercise of the privileges granted by the certificate, at the
 
16 time of issuance and from time to time thereafter, such
 
17 reasonable conditions and limitations as the public convenience
 
18 and necessity may require.
 
19     (d)  The commission may at any time suspend, change, or
 
20 revoke such certificate [in the manner provided in section
 
21 271-19].  Certificates and permits shall be effective from the
 
22 date specified, and shall remain in effect until suspended,
 
23 changed, or revoked as provided.  Any certificate or permit, upon
 

 
Page 23                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1 application of the holder thereof, in the discretion of the
 
 2 public utilities commission, may be suspended, changed, or
 
 3 revoked, in whole or in part.  The commission may, upon complaint
 
 4 or upon its own initiative, after notice and hearing, may
 
 5 suspend, change, or revoke any certificate or permit in whole or
 
 6 in part if the holder thereof is found to be in violation of any
 
 7 of the provisions of this chapter.
 
 8     (e)  Upon written request by a water carrier and for good
 
 9 cause shown, the public utilities commission may place an active
 
10 certificate or permit on an inactive status.  The certificate or
 
11 permit may be placed on an inactive status for a period not
 
12 exceeding twelve months.  Prior to the termination of the
 
13 approved inactive period, the certificate or permit must be
 
14 reactivated or it shall be declared abandoned and the certificate
 
15 or permit revoked.  The certificate or permit may be reactivated
 
16 at any time within the approved period by fulfilling the
 
17 requirements for renewal, including the payment of the
 
18 appropriate fees.  No request for inactive status, the cumulative
 
19 period of which is in excess of two years, shall be granted by
 
20 the commission.  Unless good cause is shown, no request to
 
21 transfer a certificate or permit that is on inactive status shall
 
22 be approved by the commission.
 

 
Page 24                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1     (f)  No person whose certificate or permit is revoked shall
 
 2 be eligible to apply for a new certificate or permit until the
 
 3 expiration of two years.
 
 4     (g)  A certificate or permit shall be revoked upon the
 
 5 voluntary dissolution of the corporation or partnership in whose
 
 6 name the certificate or permit has been issued.  Upon
 
 7 verification with the department of commerce and consumer affairs
 
 8 on the voluntary dissolution of a corporation or partnership, the
 
 9 commission shall issue an order with its findings and revoke the
 
10 certificate or permit held by the registered certificate or
 
11 permit holder."
 
12     SECTION 10.  Section 269-33, Hawaii Revised Statutes, is
 
13 amended by amending subsections (a) and (b) to read as follows:
 
14     "(a)  There is established in the state treasury a public
 
15 utilities commission special fund to be administered by the
 
16 public utilities commission.  The proceeds of the fund shall be
 
17 used by the public utilities commission and the division of
 
18 consumer advocacy of the department of commerce and consumer
 
19 affairs for all expenses incurred in the administration of
 
20 chapters 269, [271,] 271G, and 486I; provided that [the]:
 
21     (1)   The expenditures of the public utilities commission
 
22           shall be in accordance with legislative appropriations.
 
23           On a quarterly basis, an amount not exceeding thirty
 

 
Page 25                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1           per cent of the proceeds remaining in the fund after
 
 2           the deduction for central service expenses, pursuant to
 
 3           section 36-27, shall be allocated by the public
 
 4           utilities commission to the division of consumer
 
 5           advocacy; [provided that all] and
 
 6     (2)   All moneys allocated by the public utilities commission
 
 7           from the fund to the division of consumer advocacy
 
 8           shall be in accordance with legislative appropriations.
 
 9     (b)  All moneys appropriated to, received, and collected by
 
10 the public utilities commission that are not otherwise pledged,
 
11 obligated, or required by law to be placed in any other special
 
12 fund or expended for any other purpose shall be deposited into
 
13 the public utilities commission special fund including[,] but not
 
14 limited to[,] all moneys received and collected by the public
 
15 utilities commission pursuant to sections 92-21, 269-28, 269-30,
 
16 [271-27, 271-36,] 271G-19, and 607-5."
 
17     SECTION 11.  Section 286-207, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19     "286-207  Exemptions, certain vehicles.  This part shall not
 
20 apply to the following vehicles, if such vehicles are in
 
21 compliance with safety ordinances and rules of the county in
 
22 which they operate and other applicable state safety laws and
 
23 rules:
 

 
Page 26                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      (1)  The type of passenger carrying vehicle known as a
 
 2           "sampan bus" within a radius of twenty miles from the
 
 3           city of Hilo, Hawaii;
 
 4      (2)  Station wagons for the carriage of property;
 
 5      (3)  Trucks, truck-trailers, trailers or other nonpassenger
 
 6           carrying equipment having a gross vehicle weight rating
 
 7           of 10,000 pounds or less;
 
 8      (4)  Taxicabs [as described in section 271-5(3)(B);] for
 
 9           hire having seating accommodations for eight or fewer
 
10           passengers used in the movement of passengers on the
 
11           public highways that may, as part of a continuous trip,
 
12           pick up or discharge passengers from various unrelated
 
13           locations; provided that they shall be regulated by the
 
14           counties in accordance with section 46-16.5(c); and
 
15           provided further that this subparagraph shall not apply
 
16           to any exclusive rights granted by the department of
 
17           transportation for taxicab services at facilities under
 
18           the department's control;
 
19      (5)  [Passenger carrying] Passenger-carrying vehicles with a
 
20           seating capacity of nine or less used for the
 
21           transportation of employees to and from the [jobsite;]
 
22           job site;
 

 
Page 27                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      (6)  [Passenger carrying] Passenger-carrying vehicles used
 
 2           by employees solely for their own transportation to,
 
 3           from, and during work;
 
 4      (7)  [Passenger carrying] Passenger-carrying vehicles with a
 
 5           gross vehicle weight of 10,000 pounds or less used in
 
 6           car or van pools for the movement of passengers to and
 
 7           from work;
 
 8      (8)  A [passenger carrying] passenger-carrying vehicle used
 
 9           for the transportation, without compensation, of
 
10           persons for private, recreational or entertainment
 
11           purposes;
 
12      (9)  A [passenger carrying] passenger-carrying vehicle with
 
13           a gross vehicle weight rating of 10,000 pounds or less
 
14           used solely for the transportation, without
 
15           compensation, of the vehicle owner, the vehicle owner's
 
16           family, or guests;
 
17     (10)  A [passenger carrying] passenger-carrying vehicle with
 
18           a gross vehicle weight rating of 10,000 pounds or less
 
19           used for the transportation, without compensation, of
 
20           persons for the furtherance of their physical or mental
 
21           rehabilitation or for social welfare activities."
 
22     SECTION 12.  Chapter 271, Hawaii Revised Statutes, is
 
23 repealed.
 

 
Page 28                                                    
 
                                     H.B. NO.           
 
                                                        
 
                                                        
 
 1      SECTION 13.  Statutory material to be repealed is bracketed.
 
 2 New statutory material is underscored.
 
 3      SECTION 14.  This Act shall take effect on January 1, 2000,
 
 4 and shall apply to taxable years beginning after December 31,
 
 5 1999.
 
 6 
 
 7                           INTRODUCED BY:  _______________________