Honolulu, Hawaii



RE:    H.B. No. 2435

       H.D. 1

       S.D. 2




Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii




     Your Committee on Commerce, Consumer Protection, and Health, to which was referred H.B. No. 2435, H.D. 1, S.D. 1, entitled:




begs leave to report as follows:


     The purpose and intent of this measure is to amend the definition of "rates" in Hawaii's Motor Carrier Law to clarify that, for packages that include other services, "rates" only refers to charges for the provision of transportation by motor vehicle of passengers.


     Your Committee received testimony in support of this measure from the Hawaii Transportation Association; Roberts Hawaii, Inc.; and The Maritime Group, LLC.


     Your Committee finds that the Public Utilities Commission (Commission) regulates all chartered, franchised, certified, and registered public utility companies operating in the State, including motor vehicle carriers.  Your Committee further finds that the Commission imposes tariffs on motor vehicle carriers for rates, fares, and charges.  However, under the existing definition of "rates" in the Motor Carrier Law, the tariff is applied to non-transportation services and items, such as airfare, meals, and attraction admission fare, that are often included in package deals offered by a motor vehicle carrier.  This measure therefore clarifies that the passenger tariffs rates filed are for transportation services only and exclude the provision of non-transportation items and ensures that the annual fee paid to the Commission based on a motor vehicle carrier's gross revenues excludes the amounts received for these non-transportation items.


     Your Committee has amended this measure by:


     (1)  Changing its effective date to upon approval; and


     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.


     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2435, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2435, H.D. 1, S.D. 2.


Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,