REPORT TITLE:
Public Utilities


DESCRIPTION:
Deregulates state-regulated aspects of motor carriers, except
regulation of motor carrier safety. (HB376 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        376
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT
RELATING TO PUBLIC UTILITIES.



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
 
19 pressures.  Thus, the legislature finds that free competition
 

 
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 1 will serve the public interest because competitors will strive to
 
 2 provide the public with better service at cheaper rates.
 
 3      The legislature finds that the department of transportation
 
 4 regulates safety for all motor carriers and that motor carrier
 
 5 safety should continue to be regulated by the department of
 
 6 transportation.
 
 7      The purpose of this Act is to deregulate all currently
 
 8 state-regulated aspects of motor carriers, except for the
 
 9 regulation of motor carrier safety, which shall continue to be
 
10 regulated by the department of transportation.
 
11      SECTION 2.  Section 46-16.5, Hawaii Revised Statutes, is
 
12 amended by amending subsection (a) to read as follows:
 
13      "(a)  The legislature finds and declares the following:
 
14      (1)  The orderly regulation of vehicular traffic on the
 
15           streets and highways of Hawaii is essential to the
 
16           welfare of the State and its people;
 
17      (2)  Privately-operated public passenger vehicle service
 
18           provides vital transportation links within the State.
 
19           Public passenger vehicle service operated in the
 
20           counties enables the State to provide the benefits of
 
21           privately-operated, demand-responsive transportation
 
22           services to its people and to persons who travel to the
 
23           State for business or tourist purposes;
 

 
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 1      (3)  The economic viability and stability of privately-
 
 2           operated public passenger vehicle service is
 
 3           consequently a matter of statewide importance;
 
 4      (4)  The policy of the State is to promote safe and reliable
 
 5           privately-operated public passenger vehicle service to
 
 6           provide the benefits of that service.  In furtherance
 
 7           of this policy, the legislature recognizes and affirms
 
 8           that the regulation of privately-operated public
 
 9           passenger vehicle service is an essential governmental
 
10           function;
 
11      (5)  The policy of the State is to require that counties
 
12           regulate privately-operated public passenger vehicle
 
13           service and not subject a county or its officers to
 
14           liability under the federal antitrust laws;
 
15      (6)  The policy of the State is to further promote
 
16           privately-operated public passenger vehicle service,
 
17           including but not limited to[,] the picking up and
 
18           discharge of passengers from various unrelated
 
19           locations by taxicabs; and
 
20      (7)  The policy of the State is to further promote
 
21           privately-operated public passenger vehicle service by
 
22           requiring jitney services [not] to be regulated by the
 

 
 
 
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 1           counties [to be under the jurisdiction of the public
 
 2           utilities commission].  For the purposes of this
 
 3           paragraph, "jitney services" means public
 
 4           transportation services utilizing motor vehicles that
 
 5           have seating accommodations for six to twenty-five
 
 6           passengers, operate along specific routes during
 
 7           defined service hours, and levy a flat fare schedule."
 
 8      SECTION 3.  Section 92-28, Hawaii Revised Statutes, is
 
 9 amended to read as follows:
 
10      "§92-28  State service fees; increase or decrease of.  [Any
 
11 law to the contrary notwithstanding,] Notwithstanding any law to
 
12 the contrary, the fees or other nontax revenues assessed or
 
13 charged by any board, commission, or other governmental agency
 
14 may be increased or decreased by the body in an amount not to
 
15 exceed fifty per cent of the statutorily assessed fee or nontax
 
16 revenue[, in order] to maintain a reasonable relation between the
 
17 revenues derived from such fee or nontax revenue and the cost or
 
18 value of services rendered, comparability among fees imposed by
 
19 the State, or any other purpose [which] that it may deem
 
20 necessary and reasonable; provided that:
 
21      (1)  The authority to increase or decrease fees or nontax
 
22           revenues shall be subject to the approval of the
 

 
 
 
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 1           governor and extend only to the following:  chapters
 
 2           36, 92, 94, 142, 144, 145, 147, 150, 171, 188, 189,
 
 3           231, 269, [271,] 321, 338, 373, 412, 415, 421, 425,
 
 4           431, 438, 439, 440, 442, 447, 448, 452, 453, 455, 456,
 
 5           457, 458, 459, 460, 461, 463, 464, 466, 467, 469, 471,
 
 6           482, 485, 501, 502, 505, 572, 574, and 846 (pt II);
 
 7      (2)  The authority to increase or decrease fees or nontax
 
 8           revenues established by the University of Hawaii under
 
 9           chapters 304, 305, 306, and 308 shall be subject to the
 
10           approval of the board of regents; provided that the
 
11           board's approval of any increase or decrease in tuition
 
12           for regular credit courses shall be preceded by an open
 
13           public meeting held during or prior to the semester
 
14           preceding the semester to which the tuition applies;
 
15      (3)  This section shall not apply to judicial fees as may be
 
16           set by any chapter cited in this section; and
 
17      (4)  The authority to increase or decrease fees or nontax
 
18           revenues pursuant to this section shall be exempt from
 
19           the public notice and public hearing requirements of
 
20           chapter 91."
 
21      SECTION 4.  Section 239-2, Hawaii Revised Statutes, is
 
22 amended to read as follows:
 

 
 
 
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 1      "§239-2 Definitions.  As used in this chapter unless
 
 2 otherwise required by the context:
 
 3      "Carrier" means a person who engages in transportation, and
 
 4 does not include a person such as freight forwarder or tour
 
 5 packager who provides transportation by contracting with others,
 
 6 except to the extent that [such] the person [oneself] engages in
 
 7 transportation[.]; provided that the term shall not apply to a
 
 8 person who engages in transportation by land.
 
 9      "Contract carrier" means a person other than a public
 
10 utility [or taxicab which,] that under contracts or agreements,
 
11 engages in the transportation of persons or property for
 
12 compensation[,] by [land,] water[,] or air.
 
13      "Gross income" means the gross income from public service
 
14 company business as follows:
 
15      (A)  Gross income from the production, conveyance,
 
16           transmission, delivery, or furnishing of light, power,
 
17           heat, cold, water, gas, or oil;
 
18      (B)  Gross income from the transportation of passengers or
 
19           freight[, or] by air or water, the conveyance or
 
20           transmission of [telephone or telegraph]
 
21           telecommunications messages, or the furnishing of
 
22           facilities for the transmission of intelligence by
 
23           electricity[, by land or water or air]:
 

 
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 1           (i)  Originating and terminating within this State;
 
 2          (ii)  By means of vessels or aircraft having their home
 
 3                port in the State and operating between ports or
 
 4                airports in the State, with respect to the
 
 5                transportation so effected; or
 
 6         (iii)  By means of plant or equipment located in the
 
 7                State, between points in the State;
 
 8           or
 
 9      (C)  Gross income from [the transportation of freight by
 
10           motor carriers (other than as stated in subparagraph
 
11           (B)), or] the conveyance or transmission of messages or
 
12           intelligence through wires or cables located or partly
 
13           located in the State [(], other than as stated in
 
14           subparagraph (B)[)].
 
15           The words "gross income" and "gross income from public
 
16      service company business" shall not be construed to include
 
17      dividends (as defined by chapter 235) paid by one member of
 
18      an affiliated public service company group to another member
 
19      of the same group; or gross income from the sale or transfer
 
20      of materials or supplies, interest on loans, or the
 
21      provision of engineering, construction, maintenance, or
 
22      managerial services by one member of an affiliated public
 

 
 
 
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 1      service company group to another member of the same group.
 
 2      "Affiliated public service company group" means an
 
 3      affiliated group of domestic corporations within the meaning
 
 4      of chapter 235, all of the members of which are public
 
 5      service companies.  "Member of an affiliated public service
 
 6      company group" means a corporation (including the parent
 
 7      corporation) [which] that is included within an affiliated
 
 8      public service company group.
 
 9           Where the transportation of passengers or property is
 
10      furnished through arrangements between motor carriers, and
 
11      the gross income is divided between the motor carriers, any
 
12      tax imposed by this chapter shall apply to each motor
 
13      carrier with respect to each motor [carriers'] carrier's
 
14      respective portion of the proceeds.
 
15           [Where tourism related services are furnished through
 
16      arrangements made by a travel agency or tour packager and
 
17      the gross income is divided between the provider of the
 
18      services on the one hand and the travel agency or tour
 
19      packager on the other hand, any tax imposed by this chapter
 
20      shall apply to each person with respect to each person's
 
21      respective portion of the proceeds.]
 

 
 
 
 
 
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 1           Accounts found to be worthless and actually charged off
 
 2      for 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"
 
 7      means 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
 

 
 
 
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 1 and not as a separate entity, there nevertheless shall be allowed
 
 2 as deductions in computing the net operating income [a]:
 
 3      (A)  A reasonable allowance for the value of personal
 
 4           services actually rendered[,]; and
 
 5      (B)  [such] The proportion of the actual amount of income
 
 6           taxes,  federal and state, as fairly represents the
 
 7           portion of the income so taxed [which] that was derived
 
 8           from the public utility business.
 
 9      "Partner" means the same as in the Internal Revenue Code.
 
10      "Partnership" means the same as in the Internal Revenue
 
11 Code.
 
12      "Ports", "airports", or "points in the State" shall be
 
13 deemed to be such if they are loading, unloading, transshipment,
 
14 assembly, transfer, or relay points.
 
15      ["Public highways" has the meaning defined by section 264-1
 
16 including both state and county highways, but operation upon
 
17 rails shall not be deemed transportation on the public highways.] 
 
18      "Public service company" means a public utility[, motor
 
19 carrier,] or contract carrier.
 
20      "Public utility" has the [meaning given that term] same
 
21 meaning set forth in section 269-1."
 

 
 
 
 
 
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 1      SECTION 5.  Section 239-5, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§239-5 Public utilities, generally.(a)  There shall be
 
 4 levied and assessed upon each public utility, except airlines,
 
 5 [motor carriers,] common carriers by water, and contract carriers
 
 6 taxed by section 239-6, a tax of such rate per cent of its gross
 
 7 income each year from its public utility business as shall be
 
 8 determined in the manner hereinafter provided.  The tax imposed
 
 9 by this section is in lieu of all taxes other than those below
 
10 set out, and is a means of taxing the real property (owned by the
 
11 public utility or leased to it by a lease under which the public
 
12 utility is required to pay the taxes upon the property), and the
 
13 personal property of the public utility, tangible and intangible,
 
14 including going concern value.  In addition to the tax imposed by
 
15 this chapter, there also are imposed income taxes, the specific
 
16 taxes imposed by chapter 249, the fees prescribed by chapter 269,
 
17 any tax specifically imposed by the terms of the public utility's
 
18 franchise or under chapter 240, the use or consumption tax
 
19 imposed by chapter 238, and employment taxes.
 
20      The rate of the tax upon the gross income of the public
 
21 utility shall be determined as follows:
 

 
 
 
 
 
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 1      (1)  If the ratio of the net income of the company to its
 
 2           gross income is fifteen per cent or less, the rate of
 
 3           the tax on gross income shall be 5.885 per cent; [for]
 
 4           and
 
 5      (2)  For all companies having net income in excess of
 
 6           fifteen per cent of the gross, the rate of the tax on
 
 7           gross income shall increase continuously in proportion
 
 8           to the increase in ratio of net income to gross, at
 
 9           such rate that for each increase of one per cent in the
 
10           ratio of net income to gross, there shall be an
 
11           increase of .2675 per cent in the rate of the tax.
 
12      The following formula may be used to determine the rate, in
 
13 which formula the term "R" is the ratio of net income to gross
 
14 income, and "X" is the required rate of the tax on gross income
 
15 for the utility in question:
 
16                        X=(1.8725+26.75R)%;
 
17 provided that in no case governed by the formula shall "X" be
 
18 less than 5.885 per cent or more than 8.2 per cent.
 
19      However, if the gross income is apportioned under section
 
20 239-8(b) or (c), there shall be no adjustment of the rate of tax
 
21 on the amount of gross income so apportioned to the State on
 
22 account of the ratio of the net income to the gross income being
 

 
 
 
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 1 in excess of fifteen per cent, and it shall be assumed in such
 
 2 case that the ratio is fifteen per cent or less.
 
 3      [(b)  Notwithstanding subsection (a), the rate of the tax
 
 4 upon the portion of the gross income of a carrier of passengers
 
 5 by land which consists in passenger fares for transportation
 
 6 between points on a scheduled route, shall be 5.35 per cent.
 
 7 However, if the carrier has other public utility gross income the
 
 8 fares nevertheless shall be included in applying subsection (a)
 
 9 in determining the rate of tax upon the other public utility
 
10 gross income.
 
11      (c)] (b)  Notwithstanding subsection (a), the rate of tax
 
12 upon the portion of the gross income of a public utility [which]
 
13 that consists of the receipts from the sale of its products or
 
14 services to another public utility [which] that resells such
 
15 products or services shall be one-half of one per cent[,];
 
16 provided that [the]:
 
17      (1)  The resale is subject to taxation under this section[,
 
18           and provided further that the]; and
 
19      (2)  The public utility's exemption from real property taxes
 
20           imposed by chapter 246 shall be reduced by the
 
21           proportion that its public utility gross income
 
22           described herein bears to its total public utility
 
23           gross income.
 

 
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 1 Whenever the public utility has other public utility gross
 
 2 income, the gross income from the sale of its products or
 
 3 services to another public utility shall be included in applying
 
 4 subsection (a) in determining the rate of tax upon the other
 
 5 public utility gross income."
 
 6      SECTION 6.  Section 239-6, Hawaii Revised Statutes, is
 
 7 amended to read as follows:
 
 8      "§239-6 Airlines, certain carriers.  There shall be levied
 
 9 and assessed upon each airline a tax of four per cent of its
 
10 gross income each year from the airline business; provided that
 
11 if an airline adopts a rate schedule for students in grade twelve
 
12 or below travelling in school groups providing such students at
 
13 reasonable hours a rate less than one-half of the regular adult
 
14 fare, the tax shall be three per cent of its gross income each
 
15 year from the airline business.  There shall be levied and
 
16 assessed upon [each motor carrier,] each common carrier by
 
17 water[,] and upon each contract carrier [other than a motor
 
18 carrier,] not providing transportation by land, a tax of four per
 
19 cent of its gross income each year from the [motor carrier or]
 
20 contract carrier business.  The tax imposed by this section is a
 
21 means of taxing the personal property of the airline or other
 
22 carrier, tangible and intangible, including going concern value,
 

 
 
 
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 1 and is in lieu of the tax imposed by chapter 237 but is not in
 
 2 lieu of any other tax."
 
 3      SECTION 7.  Section 269-1, Hawaii Revised Statutes, is
 
 4 amended as follows:
 
 5      1.  By amending the definition of "enforcement officer" to
 
 6 read:
 
 7      ""Enforcement officer" means any person employed and
 
 8 authorized by the commission to investigate any matter on behalf
 
 9 of the commission.  [The term also means a motor vehicle safety
 
10 officer employed and assigned, pursuant to section 271-38, by the
 
11 department of transportation to enforce sections 271-8, 271-12,
 
12 271-13, and 271-29 through assessment of civil penalties as
 
13 provided in section 271-27(h), (i), and (j).]"
 
14      2.  By amending the definition of "public utility" to read:
 
15      ""Public utility" includes every person who may own,
 
16 control, operate, or manage as owner, lessee, trustee, receiver,
 
17 or otherwise, whether under a franchise, charter, license,
 
18 articles of association, or otherwise, any plant or equipment, or
 
19 any part thereof, directly or indirectly for public use, for the
 
20 transportation of passengers or freight[, or] by air or water,
 
21 the conveyance or transmission of telecommunications messages, or
 
22 the furnishing of facilities for the transmission of intelligence
 

 
 
 
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 1 by electricity [by land or water or air] within the State[,] or
 
 2 between points within the State[, or]; for the production,
 
 3 conveyance, transmission, delivery, or furnishing of light,
 
 4 power, heat, cold, water, gas, or oil[, or]; for the storage or
 
 5 warehousing of goods[, or]; or for the disposal of sewage;
 
 6 provided that the term:
 
 7      (1)  Shall include any person insofar as that person owns or
 
 8           operates a private sewer company or sewer facility;
 
 9      (2)  Shall include telecommunications [carrier] carriers or
 
10           telecommunications common [carrier;] carriers;
 
11      (3)  Shall not include any person insofar as that person
 
12           owns or operates an aerial transportation enterprise;
 
13      (4)  Shall not include persons owning or operating taxicabs,
 
14           as defined in this section;
 
15      (5)  Shall not include common carriers transporting [only
 
16           freight on the public highways, unless operating within
 
17           localities or along routes or between points that the
 
18           public utilities commission finds to be inadequately
 
19           serviced without regulation under this chapter;]
 
20           passengers or freight by land;
 
21      (6)  Shall not include persons engaged in the business of
 
22           warehousing or storage unless the commission finds that
 
23           regulation thereof is necessary in the public interest;
 

 
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 1      (7)  Shall not include:
 
 2           (A)  The business of any carrier by water to the extent
 
 3                that the carrier enters into private contracts for
 
 4                towage, salvage, hauling, or carriage between
 
 5                points within the State and the carriage is not
 
 6                pursuant to either an established schedule or an
 
 7                undertaking to perform carriage services on behalf
 
 8                of the public generally; and
 
 9           (B)  The business of any carrier by water,
 
10                substantially engaged in interstate or foreign
 
11                commerce, transporting passengers on luxury
 
12                cruises between points within the State or on
 
13                luxury round-trip cruises returning to the point
 
14                of departure;
 
15      (8)  Shall not include any person who:
 
16           (A)  Controls, operates, or manages plants or
 
17                facilities for the production, transmission, or
 
18                furnishing of power primarily or entirely from
 
19                nonfossil fuel sources; and
 
20           (B)  Provides, sells, or transmits all of that power,
 
21                except such power as is used in its own internal
 
22                operations, directly to a public utility for
 
23                transmission to the public;
 

 
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 1      (9)  Shall not include a telecommunications provider only to
 
 2           the extent determined by the commission pursuant to
 
 3           section 269-16.9; and
 
 4     (10)  Shall not include any person who controls, operates, or
 
 5           manages plants or facilities developed pursuant to
 
 6           chapter 167 for conveying, distributing, and
 
 7           transmitting water for irrigation and such other
 
 8           purposes that shall be held for public use and purpose.
 
 9     In the event the application of this chapter is ordered by
 
10 the commission in any case provided in paragraphs [(5),] (6),
 
11 (9), and (10), the business of any public utility that presents
 
12 evidence of bona fide operation on the date of the commencement
 
13 of the proceedings resulting in the order shall be presumed to be
 
14 necessary to public convenience and necessity, but any
 
15 certificate issued under this proviso shall nevertheless be
 
16 subject to such terms and conditions as the commission may
 
17 prescribe, as provided in sections 269-16.9 and 269-20."
 
18     SECTION 8.  Section 269-20, Hawaii Revised Statutes, is
 
19 amended to read as follows:
 
20      "§269-20  Certificates of public convenience and necessity
 
21 for water carriers.(a)  No person which holds itself out to the
 
22 general public to engage in the transportation by water of
 

 
 
 
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 1 passengers or property or any class or classes thereof for
 
 2 compensation, between points in the State of Hawaii, shall
 
 3 operate unless there is in force with respect to such carrier a
 
 4 certificate of public convenience and necessity issued by the
 
 5 commission authorizing such transportation; provided that this
 
 6 section shall not apply to any carrier by water to the extent
 
 7 that the carrier is excluded from the definition of a public
 
 8 utility under section 269-1(6).
 
 9      (b)  Applications for certificates shall be made in writing
 
10 under oath to the commission in such form as it requires.
 
11      (c)  A certificate shall be issued to any qualified
 
12 applicant therefor, authorizing the whole or any part of the
 
13 operations covered by the application, if it is found that the
 
14 applicant is fit, willing, and able properly to perform the
 
15 service proposed and to conform to the provisions of this chapter
 
16 and the requirements, rules, and regulations of the commission
 
17 thereunder, and that the proposed service, to the extent
 
18 authorized by the certificate, is or will be required by the
 
19 present or future public convenience and necessity; otherwise
 
20 such application shall be denied.  Any certificate issued shall
 
21 specify the service to be rendered and the routes and ports which
 
22 the water carrier is to serve and there shall be attached to the
 

 
 
 
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 1 exercise of the privileges granted by the certificate, at the
 
 2 time of issuance and from time to time thereafter, such
 
 3 reasonable conditions and limitations as the public convenience
 
 4 and necessity may require.
 
 5     (d)  The commission may at any time suspend, change, or
 
 6 revoke such certificate [in the manner provided in section
 
 7 271-19].  Certificates and permits shall be effective from the
 
 8 date specified, and shall remain in effect until suspended,
 
 9 changed, or revoked, as provided.  Any certificate or permit,
 
10 upon application of the holder thereof, in the discretion of the
 
11 commission, may be suspended, changed, or revoked, in whole or in
 
12 part.  The commission may, upon complaint or upon its own
 
13 initiative, after notice and hearing, may suspend, change, or
 
14 revoke any certificate or permit in whole or in part if the
 
15 holder thereof is found to be in violation of any of the
 
16 provisions of this chapter.
 
17     (e)  Upon written request by a water carrier and for good
 
18 cause shown, the commission may place an active certificate or
 
19 permit on an inactive status.  The certificate or permit may be
 
20 placed on an inactive status for a period not exceeding twelve
 
21 months.  Prior to the termination of the approved inactive
 
22 period, the certificate or permit shall be reactivated or it
 

 
 
 
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 1 shall be declared abandoned and the certificate or permit
 
 2 revoked.  The certificate or permit may be reactivated at any
 
 3 time within the approved period by fulfilling the requirements
 
 4 for renewal, including the payment of the appropriate fees.  No
 
 5 request for inactive status, the cumulative period of which is in
 
 6 excess of two years, shall be granted by the commission.  Unless
 
 7 good cause is shown, no request to transfer a certificate or
 
 8 permit that is on inactive status shall be approved by the
 
 9 commission.
 
10     (f)  No person whose certificate or permit is revoked shall
 
11 be eligible to apply for a new certificate or permit until the
 
12 expiration of two years.
 
13     (g)  A certificate or permit shall be revoked upon the
 
14 voluntary dissolution of the corporation or partnership in whose
 
15 name the certificate or permit has been issued.  Upon
 
16 verification with the department of commerce and consumer affairs
 
17 on the voluntary dissolution of a corporation or partnership, the
 
18 commission shall issue an order with its findings and revoke the
 
19 certificate or permit held by the registered certificate or
 
20 permit holder."
 
21     SECTION 9.  Section 269-33, Hawaii Revised Statutes, is
 
22 amended by amending subsections (a) and (b) to read as follows:
 

 
 
 
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 1     "(a)  There is established in the state treasury a public
 
 2 utilities commission special fund to be administered by the
 
 3 public utilities commission.  The proceeds of the fund shall be
 
 4 used by the public utilities commission and the division of
 
 5 consumer advocacy of the department of commerce and consumer
 
 6 affairs for all expenses incurred in the administration of
 
 7 chapters 269, [271,] 271G, and 486I; provided that [the]:
 
 8     (1)   The expenditures of the public utilities commission
 
 9           shall be in accordance with legislative appropriations.
 
10           On a quarterly basis, an amount not exceeding thirty
 
11           per cent of the proceeds remaining in the fund after
 
12           the deduction for central service expenses, pursuant to
 
13           section 36-27, shall be allocated by the public
 
14           utilities commission to the division of consumer
 
15           advocacy; [provided that all] and
 
16     (2)   All moneys allocated by the public utilities commission
 
17           from the fund to the division of consumer advocacy
 
18           shall be in accordance with legislative appropriations.
 
19     (b)  All moneys appropriated to, received, and collected by
 
20 the public utilities commission that are not otherwise pledged,
 
21 obligated, or required by law to be placed in any other special
 
22 fund or expended for any other purpose shall be deposited into
 

 
 
 
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 1 the public utilities commission special fund including[,] but not
 
 2 limited to[,] all moneys received and collected by the public
 
 3 utilities commission pursuant to sections 92-21, 269-28, 269-30,
 
 4 [271-27, 271-36,] 271G-19, and 607-5."
 
 5     SECTION 10.  Section 286-207, Hawaii Revised Statutes, is
 
 6 amended to read as follows:
 
 7     "§286-207  Exemptions, certain vehicles.  This part shall not
 
 8 apply to the following vehicles, if such vehicles are in
 
 9 compliance with safety ordinances and rules of the county in
 
10 which they operate and other applicable state safety laws and
 
11 rules:
 
12      (1)  The type of [passenger carrying] passenger-carrying
 
13           vehicle known as a "sampan bus" within a radius of
 
14           twenty miles from the city of Hilo, Hawaii;
 
15      (2)  Station wagons for the carriage of property;
 
16      (3)  Trucks, truck-trailers, trailers or other nonpassenger
 
17           carrying equipment having a gross vehicle weight rating
 
18           of 10,000 pounds or less;
 
19      (4)  Taxicabs [as described in section 271-5(3)(B);] for
 
20           hire having seating accommodations for eight or fewer
 
21           passengers used in the movement of passengers on the
 
22           public highways that may, as part of a continuous trip,
 

 
 
 
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 1           pick up or discharge passengers from various unrelated
 
 2           locations; provided that they shall be regulated by the
 
 3           counties in accordance with section 46-16.5(c); and
 
 4           provided further that this subparagraph shall not apply
 
 5           to any exclusive rights granted by the department of
 
 6           transportation for taxicab services at facilities under
 
 7           the department's control;
 
 8      (5)  [Passenger carrying] Passenger-carrying vehicles with a
 
 9           seating capacity of nine or less used for the
 
10           transportation of employees to and from the [jobsite;]
 
11           job site;
 
12      (6)  [Passenger carrying] Passenger-carrying vehicles used
 
13           by employees solely for their own transportation to,
 
14           from, and during work;
 
15      (7)  [Passenger carrying] Passenger-carrying vehicles with a
 
16           gross vehicle weight of 10,000 pounds or less used in
 
17           car or van pools for the movement of passengers to and
 
18           from work;
 
19      (8)  A [passenger carrying] passenger-carrying vehicle used
 
20           for the transportation, without compensation, of
 
21           persons for private, recreational or entertainment
 
22           purposes;
 

 
 
 
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 1      (9)  A [passenger carrying] passenger-carrying vehicle with
 
 2           a gross vehicle weight rating of 10,000 pounds or less
 
 3           used solely for the transportation, without
 
 4           compensation, of the vehicle owner, the vehicle owner's
 
 5           family, or guests; and
 
 6     (10)  A [passenger carrying] passenger-carrying vehicle with
 
 7           a gross vehicle weight rating of 10,000 pounds or less
 
 8           used for the transportation, without compensation, of
 
 9           persons for the furtherance of their physical or mental
 
10           rehabilitation or for social welfare activities."
 
11      SECTION 11.  Section 486J-11, Hawaii Revised Statutes, is
 
12 amended to read as follows:
 
13      "[[]§486J-11[]]  Powers of the public utilities commission.
 
14 The public utilities commission shall have the authority and
 
15 power to take any action or make any determination under this
 
16 chapter, including but not limited to actions or determinations
 
17 that affect persons not regulated under chapters 269[, 271,] and
 
18 271G, as the commission deems necessary to carry out its
 
19 responsibilities or otherwise effectuate chapter 269[, 271,] or
 
20 271G."
 
21      SECTION 12.  Chapter 271, Hawaii Revised Statutes, is
 
22 repealed.
 

 
 
 
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 1      SECTION 13.  Notwithstanding any other provision to the
 
 2 contrary, all rules adopted by the public utilities commission
 
 3 with regard to chapter 271, Hawaii Revised Statutes, shall be
 
 4 repealed and have no legal effect.
 
 5      SECTION 14.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 15.  This Act shall take effect on January 1, 2000,
 
 8 and shall apply to taxable years beginning after December 31,
 
 9 1999.