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.

1014

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO MOTOR CARRIERS.

 

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

SECTION 1. The legislature finds that the purpose of the public utilities commission of the State is, in part, to regulate those business activities which, absent any regulation, would function as monopolies to the detriment of the public. Where monopolistic conditions might otherwise exist, it is in the public interest that government regulate aspects of business activity, such as entry into the market, rates, tariffs, stock offerings, and other matters.

The public utilities commission regulates most motor carriers, primarily tour buses and trucks. However, the legislature finds that this is not a naturally monopolistic industry, and that, absent current regulation, greater competition would exist in the State for motor carriers. It further finds that the public interest will be served if entrepreneurs have free entry into the motor carrier market. The public interest will also be served if rates and tariffs are not regulated, allowing such tariffs and rates, and other aspects of business activity such as customer service, to respond to market pressures. Thus, the legislature finds that free competition will serve the public interest because competitors will strive to provide the public with better service at cheaper rates.

The legislature finds that the department of transportation regulates safety for all motor carriers and that motor carrier safety should continue to be regulated by the department of transportation.

The purpose of this Act is to deregulate all currently state-regulated aspects of motor carriers, except for the regulation of motor carrier safety, which shall continue to be regulated by the department of transportation.

SECTION 2. Chapter 445, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

"§445- Fee to carry passengers. The annual fee for a license to carry passengers for hire or compensation in privately-operated passenger vehicles with a seating capacity of no more than seven passengers shall be equal to one-fourth of one per cent of the gross revenues from the carrier's business during the preceding calendar year or $20, whichever amount is greater. The annual fee for a license to carry passengers for hire for all other vehicles shall be $5 for each vehicle.

§445- Certificate; revocation of license. All passenger-carrying vehicles shall comply with the motor vehicle safety inspection requirements and compulsory insurance requirements for common carriers and shall be certified by the treasurer or director of finance prior to the issuance of a business license.

The chief executive officer and the police department of a county or their duly authorized subordinates may inspect a vehicle for good, serviceable, and safe conditions for the transportation of passengers. The officers or inspectors may temporarily suspend or revoke a license issued, when, upon examination of the vehicle, a vehicle is found to be unserviceable, dangerous, or unsafe for the transportation of passengers; provided that the treasurer of the county shall be given notice of the suspension or revocation.

The treasurer of the county shall require proof of liability insurance for the benefit of the privately-operated passenger carrier from all passenger-carrying vehicles for hire prior to the issuance and renewal of a business license."

SECTION 3. Section 46-16.5, Hawaii Revised Statutes, is amended to read as follows:

"§46-16.5 Public passenger vehicle regulation. (a) The legislature finds and declares the following:

(1) The orderly regulation of vehicular traffic on the streets and highways of Hawaii is essential to the welfare of the State and its people;

(2) Privately-operated public passenger vehicle service provides vital transportation links within the State. Public passenger vehicle service operated in the counties enables the State to provide the benefits of privately-operated, demand-responsive transportation services to its people and to persons who travel to the State for business or tourist purposes;

(3) The economic viability and stability of privately- operated public passenger vehicle service is consequently a matter of statewide importance[;]. The public utilities commission regulates certain classifications of common and contract motor vehicles that carry passengers. To avoid unnecessary duplication of regulatory activities, it is the policy of the State that these classifications of passenger carriers regulated by the public utilities commission shall not be regulated by the counties in the following aspects:

(A) Entry into the business of providing public passenger vehicle service within the jurisdiction of a county;

(B) The rated charge for the provision of public passenger vehicle service; and

(C) The fixed routes or points where the public passenger vehicle service may be rendered;

(4) The policy of the State is to promote safe and reliable privately-operated public passenger vehicle service to provide the benefits of that service. In furtherance of this policy, the legislature recognizes and affirms that the regulation of privately-operated public passenger vehicle service is an essential governmental function[;] in the following aspects:

(A) Public health;

(B) Safety; and

(C) Financial or insurance responsibility;

[(5) The policy of the State is to require that counties regulate privately-operated public passenger vehicle service and not subject a county or its officers to liability under the federal antitrust laws;]

[(6)] (5) The policy of the State is to further promote privately-operated public passenger vehicle service[,] including [but not limited to, the]:

(A) The picking up and discharge of passengers from various unrelated locations by taxicabs; and

(B) The hiring of public passenger vehicles with a seating capacity of up to seven passengers, including limousines for hire, which are not regulated by the public utilities commission; and

[(7)] (6) The policy of the State is to further promote privately-operated public passenger vehicle service by requiring jitney services [not] to be regulated by the counties [to be under the jurisdiction of the public utilities commission]. For the purposes of this paragraph, "jitney services" means public transportation services utilizing motor vehicles that have seating accommodations for six to twenty-five passengers, operate along specific routes during defined service hours, and levy a flat fare schedule.

(b) Any other law to the contrary notwithstanding, where not within the jurisdiction of the public utilities commission, every county may provide rules to protect the public health, safety, and welfare by licensing, controlling, and regulating, by ordinance or resolution, public passenger vehicle service operated within the jurisdiction of the county; provided that the counties shall promote the policies set forth in subsection (a).

(c) Every county is empowered to regulate:

[(1) Entry into the business of providing public passenger vehicle service within the jurisdiction of that county.

(2) The rates charged for the provision of public passenger vehicle service.]

(1) Public health;

(2) Safety requirements;

(3) Financial responsibility or insurance requirements; and

[(3)] (4) The establishment of stands to be employed by one or a limited number of providers of public passenger vehicle service."

SECTION 4. Section 92-28, Hawaii Revised Statutes, is amended to read as follows:

"§92-28 State service fees; increase or decrease of. [Any law to the contrary notwithstanding,] Notwithstanding any law to the contrary, the fees or other nontax revenues assessed or charged by any board, commission, or other governmental agency may be increased or decreased by the body in an amount not to exceed fifty per cent of the statutorily assessed fee or nontax revenue[, in order] to maintain a reasonable relation between the revenues derived from such fee or nontax revenue and the cost or value of services rendered, comparability among fees imposed by the State, or any other purpose [which] that it may deem necessary and reasonable; provided that:

(1) The authority to increase or decrease fees or nontax revenues shall be subject to the approval of the governor and extend only to the following: chapters 36, 92, 94, 142, 144, 145, 147, 150, 171, 188, 189, 231, 269, [271,] 321, 338, 373, 412, 414, 414D, 421, 425, 425D, 428, 431, 438, 439, 440, 442, 447, 448, 452, 453, 455, 456, 457, 458, 459, 460, 461, 463, 464, 466, 467, 469, 471, 482, 485, 501, 502, 505, 572, 574, and 846 (pt II);

(2) The authority to increase or decrease fees or nontax revenues established by the University of Hawaii under chapters 304, 305, 306, and 308 shall be subject to the approval of the board of regents; provided that the board's approval of any increase or decrease in tuition for regular credit courses shall be preceded by an open public meeting held during or prior to the semester preceding the semester to which the tuition applies;

(3) This section shall not apply to judicial fees as may be set by any chapter cited in this section;

(4) The authority to increase or decrease fees or nontax revenues pursuant to this section shall be exempt from the public notice and public hearing requirements of chapter 91; and

(5) Fees for copies of proposed and final rules and public notices of proposed rulemaking actions under chapter 91 shall not exceed 10 cents a page, as required by section 91-2.5."

SECTION 5. Section 239-2, Hawaii Revised Statutes, is amended to read as follows:

"§239-2 Definitions. As used in this chapter unless otherwise required by the context:

"Carrier" means a person who engages in transportation, and does not include a person such as freight forwarder or tour packager who provides transportation by contracting with others, except to the extent that [such] the person [oneself] engages in transportation[.]; provided that the term shall not apply to a person who engages in transportation by land.

"Contract carrier" means a person other than a public utility [or taxicab which,] that under contracts or agreements, engages in the transportation of persons or property for compensation[,] by [land,] water[,] or air.

"Gross income" means the gross income from public service company business as follows:

(1) Gross income from the production, conveyance, transmission, delivery, or furnishing of light, power, heat, cold, water, gas, or oil;

(2) Gross income from the transportation of passengers or freight[,] by air or water, or the conveyance or transmission of [telephone or telegraph] telecommunications messages other than mobile telecommunications services, or the furnishing of facilities for the transmission of intelligence by electricity[, by land or water or air]:

(A) Originating and terminating within this State;

(B) By means of vessels or aircraft having their home port in the State and operating between ports or airports in the State, with respect to the transportation so effected; or

(C) By means of plant or equipment located in the State, between points in the State; or

(3) Gross income from [the transportation of freight by motor carriers (other than as stated in paragraph (2)), or] the conveyance or transmission of messages or intelligence through wires or cables located or partly located in the State [(]other than as stated in paragraph (2) or (4)[)]; or

(4) With respect to a home service provider of mobile telecommunications services, "gross income" includes charges billed for mobile telecommunications services provided by a home service provider to a customer with a place of primary use in this State when the mobile telecommunications services originate and terminate within the same state; provided that all such charges for mobile telecommunications services that are billed by or for the home service provider are deemed to be provided by the home service provider at the customer's place of primary use, regardless of where the mobile telecommunications services originate, terminate, or pass through. Gross income shall not include:

(A) Any charges for or receipts from mobile telecommunications services provided to customers of the home service provider whose place of primary use is outside this State;

(B) Any receipts of a home service provider acting as a serving carrier providing mobile telecommunications services to another home service provider's customer; and

(C) Any receipts specifically from interstate or foreign mobile telecommunications services taxable under section 237-13(6)(E), as determined by the home service provider's books and records kept in the ordinary course of business.

For the purposes of this paragraph, "customer", "home service provider", "mobile telecommunications services", "place of primary use", and "serving carrier" have the same meaning as in section 239-22.

The words "gross income" and "gross income from public service company business" shall not be construed to include dividends (as defined by section 235-1) paid by one member of an affiliated public service company group to another member of the same group; or gross income from the sale or transfer of materials or supplies, interest on loans, or the provision of engineering, construction, maintenance, or managerial services by one member of an affiliated public service company group to another member of the same group. "Affiliated public service company group" means an affiliated group of domestic corporations within the meaning of chapter 235, all of the members of which are public service companies. "Member of an affiliated public service company group" means a corporation (including the parent corporation) [which] that is included within an affiliated public service company group.

[Where the transportation of passengers or property is furnished through arrangements between motor carriers, and the gross income is divided between the motor carriers, any tax imposed by this chapter shall apply to each motor carrier with respect to each motor carriers' respective portion of the proceeds.]

Where tourism related services are furnished through arrangements made by a travel agency or tour packager and the gross income is divided between the provider of the services on the one hand and the travel agency or tour packager on the other hand, any tax imposed by this chapter shall apply to each person with respect to each person's respective portion of the proceeds.

Accounts found to be worthless and actually charged off for income tax purposes, at corresponding periods, may be deducted from gross income as specified under this chapter so far as they reflect taxable sales, but shall be added to gross income when and if subsequently collected.

[As used in this paragraph "tourism related services" means motor carriers of passengers regulated by the public utilities commission.]

"Home port" means the place where vessels or aircraft have their tax situs or principal tax situs.

["Motor carrier" means a common carrier or contract carrier transporting persons or property for compensation on the public highways, other than a public utility or taxicab.]

The "net operating income" of a public utility subject to the tax rate imposed by section 239-5(a) is the operating revenues less the operating expenses and tax accruals, including in the computation of [such] these revenues and expenses, debits and credits arising from equipment rents and joint facility rents. In the event that, but for this [sentence,] paragraph, deductions could not be had for expenses of services because such services were rendered by the same person or persons constituting the public utility or could not be had for income taxes, because such taxes were levied against the person or persons constituting the public utility in the person's or their individual capacity and not as a separate entity, there nevertheless shall be allowed as deductions in computing the net operating income[(A) a]:

(1) A reasonable allowance for the value of personal services actually rendered[,]; and [(B) such]

(2) The proportion of the actual amount of income taxes, federal and state, as fairly represents the portion of the income so taxed [which] that was derived from the public utility business.

"Partner" means the same as in the Internal Revenue Code.

"Partnership" means the same as in the Internal Revenue Code.

"Ports", "airports", or "points in the State" shall be deemed to be such if they are loading, unloading, transshipment, assembly, transfer, or relay points.

["Public highways" has the meaning defined by section 264-1 including both state and county highways, but operation upon rails shall not be deemed transportation on the public highways.]

"Public service company" means a public utility[, motor carrier,] or contract carrier.

"Public utility" has the [meaning given that term] same meaning set forth in section 269-1."

SECTION 6. Section 239-5, Hawaii Revised Statutes, is amended to read as follows:

"§239-5 Public utilities, generally. (a) There shall be levied and assessed upon each public utility, except airlines, [motor carriers,] common carriers by water, and contract carriers taxed by section 239-6, a tax of such rate per cent of its gross income each year from its public utility business as shall be determined in the manner hereinafter provided. The tax imposed by this section is in lieu of all taxes other than those below set out, and is a means of taxing the personal property of the public utility, tangible and intangible, including going concern value. In addition to the tax imposed by this chapter there also are imposed income taxes, the specific taxes imposed by chapter 249, the fees prescribed by chapter 269, any tax specifically imposed by the terms of the public utility's franchise or under chapter 240, the use or consumption tax imposed by chapter 238, and employment taxes.

The rate of the tax upon the gross income of the public utility shall be four per cent; provided that if:

(1) A county provides by ordinance for a real property tax exemption for real property used by a public utility in its public utility business and owned by the public utility (or leased to it by a lease under which the public utility is required to pay the taxes upon the property), and

(2) The county has not denied the exemption to the public utility, but excluding a denial based upon a dispute as to the ownership, lease, or use of a specific parcel of real property,

then there shall be levied and assessed a tax in excess of the four per cent rate determined in the manner hereinafter provided upon the gross income allocable to such county. The revenues generated from the tax in excess of the four per cent rate hereinbefore established shall be paid by the public utility directly to such county based upon the proportion of gross income from its public utility business attributable to such county, based upon the allocation made in the public utility's filings with the State of Hawaii; provided that if the gross income from the public utility business attributable to such county is not so allocated in the public utility's State filings, then the gross income from the public utility business shall be equitably allocated to each county. The relative number of access lines in each county shall be deemed an acceptable basis of equitable allocation for telecommunication companies.

The rate of the tax in excess of the four per cent rate hereinbefore established upon the gross income from the public utility business shall be determined as follows:

If the ratio of the net income of the company to its gross income is fifteen per cent or less, the rate of tax in excess of the four per cent rate on gross income shall be 1.885 per cent; for all companies having net income in excess of fifteen per cent of the gross, the rate of the tax on gross income shall increase continuously in proportion to the increase in ratio of net income to gross, at such rate that for each increase of one per cent in the ratio of net income to gross, there shall be an increase of .2675 per cent in the rate of the tax.

The following formula may be used to determine the rate, in which formula the term "R" is the ratio of net income to gross income, and "X" is the required rate of the tax on gross income for the utility in question:

X = (26.75R-2.1275)%;

provided that in no case governed by the formula shall "X" be less than 1.885 per cent or more than 4.2 per cent.

However, if the gross income is apportioned under section 239-8(b) or (c), there shall be no adjustment of the rate of tax on the amount of gross income so apportioned to the State on account of the ratio of the net income to the gross income being in excess of fifteen per cent, and it shall be assumed in such case that the ratio is fifteen per cent or less.

[(b) Notwithstanding subsection (a), the rate of the tax upon the portion of the gross income of a carrier of passengers by land which consists in passenger fares for transportation between points on a scheduled route, shall be 5.35 per cent. However, if the carrier has other public utility gross income the fares nevertheless shall be included in applying subsection (a) in determining the rate of tax upon the other public utility gross income.]

[(c)] (b) Notwithstanding subsection (a), the rate of tax upon the portion of the gross income of:

(1) A public utility that consists of the receipts from the sale of its products or services to another public utility that resells such products or services shall be one-half of one per cent; or

(2) A public utility engaged in the business of selling telecommunication services to a person defined in section 237-13(6)(D) who resells such products or services, shall be as follows:

(A) In calendar year 2000, 5.5 per cent;

(B) In calendar year 2001, 5.0 per cent;

(C) In calendar year 2002, 4.5 per cent;

(D) In calendar year 2003, 4.0 per cent;

(E) In calendar year 2004, 3.5 per cent;

(F) In calendar year 2005, 3.0 per cent;

(G) In calendar year 2006, 2.5 per cent; and

(H) In calendar year 2007, and thereafter, 0.5 per cent;

provided that the resale of the products, services, or telecommunication services is subject to taxation under this section or subject to taxation at the highest rate under section 237-13(6); and provided further that the public utility's exemption from real property taxes imposed by chapter 246 shall be reduced by the proportion that its public utility gross income described herein bears to its total public utility gross income. Whenever the public utility has other public utility gross income, the gross income from the sale of its products or services to another public utility or a person subject to section 237-13(6)(D) shall be included in applying subsection (a) in determining the rate of tax upon the other public utility gross income. The department shall have the authority to implement the tax rate changes in paragraph (2) by prescribing tax forms and instructions that require tax reporting and payment by deduction, allocation, or any other method to determine tax liability with due regard to the tax rate changes."

SECTION 7. Section 239-6, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) There shall be levied and assessed upon each [motor carrier, each] common carrier by water, and upon each contract carrier [other than a motor carrier,] not providing transportation by land, a tax of four per cent of its gross income each year from the [motor carrier or] contract carrier business."

SECTION 8. Section 269-1, Hawaii Revised Statutes, is amended as follows:

1. By amending the definition of "enforcement officer" to read:

""Enforcement officer" means any person employed and authorized by the commission to investigate any matter on behalf of the commission. [The term also means a motor vehicle safety officer employed and assigned, pursuant to section 271-38, by the department of transportation to enforce sections 271-8, 271-12, 271-13, and 271-29 through assessment of civil penalties as provided in section 271-27(h), (i), and (j).]"

2. By amending the definition of "public utility" to read:

""Public utility" includes every person who may own, control, operate, or manage as owner, lessee, trustee, receiver, or otherwise, whether under a franchise, charter, license, articles of association, or otherwise, any plant or equipment, or any part thereof, directly or indirectly for public use, for the transportation of passengers or freight[, or] by air or water, the conveyance or transmission of telecommunications messages, or the furnishing of facilities for the transmission of intelligence by electricity [by land or water or air] within the State[,] or between points within the State[, or]; for the production, conveyance, transmission, delivery, or furnishing of light, power, heat, cold, water, gas, or oil[, or]; for the storage or warehousing of goods[, or]; or for the disposal of sewage; provided that the term:

(1) Shall include any person insofar as that person owns or operates a private sewer company or sewer facility;

(2) Shall include telecommunications [carrier] carriers or telecommunications common [carrier;] carriers;

(3) Shall not include any person insofar as that person owns or operates an aerial transportation enterprise;

(4) Shall not include persons owning or operating taxicabs, as defined in this section;

(5) Shall not include common carriers transporting [only freight on the public highways, unless operating within localities or along routes or between points that the public utilities commission finds to be inadequately serviced without regulation under this chapter;] passengers or freight by land;

(6) Shall not include persons engaged in the business of warehousing or storage unless the commission finds that regulation thereof is necessary in the public interest;

(7) Shall not include:

(A) The business of any carrier by water to the extent that the carrier enters into private contracts for towage, salvage, hauling, or carriage between points within the State and the carriage is not pursuant to either an established schedule or an undertaking to perform carriage services on behalf of the public generally; and

(B) The business of any carrier by water, substantially engaged in interstate or foreign commerce, transporting passengers on luxury cruises between points within the State or on luxury round-trip cruises returning to the point of departure;

(8) Shall not include any person who:

(A) Controls, operates, or manages plants or facilities for the production, transmission, or furnishing of power primarily or entirely from nonfossil fuel sources; and

(B) Provides, sells, or transmits all of that power, except such power as is used in its own internal operations, directly to a public utility for transmission to the public;

(9) Shall not include a telecommunications provider only to the extent determined by the commission pursuant to section 269-16.9; and

(10) Shall not include any person who controls, operates, or manages plants or facilities developed pursuant to chapter 167 for conveying, distributing, and transmitting water for irrigation and such other purposes that shall be held for public use and purpose.

(11) Shall not include any person who owns, controls, operates, or manages plants or facilities for the reclamation of wastewater; provided that:

(A) The services of the facility shall be provided pursuant to a service contract between the person and a state or county agency and at least ten per cent of the wastewater processed is used directly by the State or county which has entered into the service contract;

(B) The primary function of the facility shall be the processing of secondary treated wastewater that has been produced by a municipal wastewater treatment facility that is owned by a state or county agency;

(C) The facility shall not make sales of water to residential customers;

(D) The facility may distribute and sell recycled or reclaimed water to entities not covered by a state or county service contract; provided that, in the absence of regulatory oversight and direct competition, the distribution and sale of recycled or reclaimed water shall be voluntary and its pricing fair and reasonable. For purposes of this [[]subparagraph[]], "recycled water" and "reclaimed water" mean treated wastewater that by design is intended or used for a beneficial purpose; and

(E) The facility shall not be engaged, either directly or indirectly, in the processing of food wastes.

In the event the application of this chapter is ordered by the commission in any case provided in paragraphs [(5),] (6), (9), and (10), the business of any public utility that presents evidence of bona fide operation on the date of the commencement of the proceedings resulting in the order shall be presumed to be necessary to public convenience and necessity, but any certificate issued under this proviso shall nevertheless be subject to such terms and conditions as the commission may prescribe, as provided in sections 269-16.9 and 269-20."

SECTION 9. Section 269-20, Hawaii Revised Statutes, is amended to read as follows:

"§269-20 Certificates of public convenience and necessity for water carriers. (a) No person which holds itself out to the general public to engage in the transportation by water of passengers or property or any class or classes thereof for compensation, between points in the State of Hawaii, shall operate unless there is in force with respect to such carrier a certificate of public convenience and necessity issued by the commission authorizing such transportation; provided that this section shall not apply to any carrier by water to the extent that the carrier is excluded from the definition of a public utility under section [269-1(6).] 269-1(7).

(b) Applications for certificates shall be made in writing under oath to the commission in such form as it requires.

(c) A certificate shall be issued to any qualified applicant therefor, authorizing the whole or any part of the operations covered by the application, if it is found that the applicant is fit, willing, and able properly to perform the service proposed and to conform to the provisions of this chapter and the requirements[,] and rules [and regulations] of the commission thereunder, and that the proposed service, to the extent authorized by the certificate, is or will be required by the present or future public convenience and necessity; otherwise such application shall be denied. Any certificate issued shall specify the service to be rendered and the routes and ports [which] that the water carrier is to serve and there shall be attached to the exercise of the privileges granted by the certificate, at the time of issuance and from time to time thereafter, such reasonable conditions and limitations as the public convenience and necessity may require.

(d) The commission may at any time suspend, change, or revoke such certificate [in the manner provided in section 271-19]. Certificates and permits shall be effective from the date specified, and shall remain in effect until suspended, changed, or revoked as provided. Any certificate or permit, upon application of the holder thereof, in the discretion of the public utilities commission, may be suspended, changed, or revoked, in whole or in part. The commission, upon complaint or upon its own initiative, after notice and hearing, may suspend, change, or revoke any certificate or permit in whole or in part if the holder thereof is found to be in violation of any of the provisions of this chapter.

(e) Upon written request by a water carrier and for good cause shown, the public utilities commission may place an active certificate or permit on an inactive status. The certificate or permit may be placed on an inactive status for a period not exceeding twelve months. Prior to the termination of the approved inactive period, the certificate or permit must be reactivated or it shall be declared abandoned and the certificate or permit revoked. The certificate or permit may be reactivated at any time within the approved period by fulfilling the requirements for renewal, including the payment of the appropriate fees. No request for inactive status, the cumulative period of which is in excess of two years, shall be granted by the commission. Unless good cause is shown, no request to transfer a certificate or permit that is on inactive status shall be approved by the commission.

(f) No person whose certificate or permit is revoked shall be eligible to apply for a new certificate or permit until the expiration of two years.

(g) A certificate or permit shall be revoked upon the voluntary dissolution of the corporation or partnership in whose name the certificate or permit has been issued. Upon verification with the department of commerce and consumer affairs on the voluntary dissolution of a corporation or partnership, the commission shall issue an order with its findings and revoke the certificate or permit held by the registered certificate or permit holder."

SECTION 10. Section 269-33, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) There is established in the state treasury a public utilities commission special fund to be administered by the public utilities commission. The proceeds of the fund shall be used by the public utilities commission and the division of consumer advocacy of the department of commerce and consumer affairs for all expenses incurred in the administration of chapters 269, [271,] 271G, and 486J; provided that the expenditures of the public utilities commission shall be in accordance with legislative appropriations. On a quarterly basis, an amount not exceeding thirty per cent of the proceeds remaining in the fund after the deduction for central service expenses, pursuant to section 36-27, shall be allocated by the public utilities commission to the division of consumer advocacy and deposited in the compliance resolution fund established pursuant to section 26-9(o); provided that all moneys allocated by the public utilities commission from the fund to the division of consumer advocacy shall be in accordance with legislative appropriations.

(b) All moneys appropriated to, received, and collected by the public utilities commission that are not otherwise pledged, obligated, or required by law to be placed in any other special fund or expended for any other purpose shall be deposited into the public utilities commission special fund including[,] but not limited to[,] all moneys received and collected by the public utilities commission pursuant to sections 92-21, 269-28, 269-30, [271-27, 271-36,] 271G-19, and 607-5."

SECTION 11. Section 286-207, Hawaii Revised Statutes, is amended to read as follows:

"§286-207 Exemptions, certain vehicles. This part shall not apply to the following vehicles, if such vehicles are in compliance with safety ordinances and rules of the county in which they operate and other applicable state safety laws and rules:

(1) The type of passenger carrying vehicle known as a "sampan bus" within a radius of twenty miles from the city of Hilo, Hawaii;

(2) Station wagons for the carriage of property;

(3) Trucks, truck-trailers, trailers or other nonpassenger carrying equipment having a gross vehicle weight rating of 10,000 pounds or less;

(4) Taxicabs [as described in section 271-5(3)(B);] for hire having seating accommodations for seven or fewer passengers used in the movement of passengers on the public highways that may, as part of a continuous trip, pick up or discharge passengers from various unrelated locations; provided that they shall be regulated by the counties in accordance with section 46-16.5; and provided further that this subparagraph shall not apply to any exclusive rights granted by the department of transportation for taxicab services at facilities under the department's control;

(5) [Passenger carrying] Passenger-carrying vehicles with a seating capacity of nine or less used for the transportation of employees to and from the [jobsite;] job site;

(6) [Passenger carrying] Passenger-carrying vehicles used by employees solely for their own transportation to, from, and during work;

(7) [Passenger carrying] Passenger-carrying vehicles with a gross vehicle weight of 10,000 pounds or less used in car or van pools for the movement of passengers to and from work;

(8) A [passenger carrying] passenger-carrying vehicle used for the transportation, without compensation, of persons for private, recreational, or entertainment purposes;

(9) A [passenger carrying] passenger-carrying vehicle with a gross vehicle weight rating of 10,000 pounds or less used solely for the transportation, without compensation, of the vehicle owner, the vehicle owner's family, or guests;

(10) A [passenger carrying] passenger-carrying vehicle with a gross vehicle weight rating of 10,000 pounds or less used for the transportation, without compensation, of persons for the furtherance of their physical or mental rehabilitation or for social welfare activities."

SECTION 12. Section 486J-11, Hawaii Revised Statutes, is amended to read as follows:

"[[]§486J-11[]] Powers of the public utilities commission. The public utilities commission shall have the authority and power to take any action or make any determination under this chapter, including but not limited to actions or determinations that affect persons not regulated under chapters 269[, 271,] and 271G, as the commission deems necessary to carry out its responsibilities or otherwise effectuate chapter 269[, 271,] or 271G."

SECTION 13. Chapter 271, Hawaii Revised Statutes, is repealed.

SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 15. This Act shall take effect on January 1, 2004.

INTRODUCED BY:

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