STAND. COM. REP. NO. 25-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1775
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B.
No. 1775 entitled: 

     "A BILL FOR AN ACT RELATING TO MOTOR CARRIERS,"

begs leave to report as follows:

     The purpose of this bill is to establish restrictions on the
Public Utilities Commission (PUC) for the issuance of a temporary
authority for a carrier to operate.

     Your Committee finds that the directions for the PUC to
issue a temporary operating authority lack specificity, and that
temporary authority has been granted in situations that exceed
the intent of the statute. Your Committee further finds that
carriers, who have been granted temporary authority, may assume
that a permanent authority will be forthcoming later. 

     This bill proposes procedures which must be followed by an
applicant for a temporary operating authority, with more specific
requirements, as used by the Interstate Commerce Commission.
This bill also points out that the granting of a temporary
authority does not imply that a permanent authority will be
approved thereafter.  The bill further proposes that any person
who engages in carrier service, prior to PUC approval, will be
denied any subsequent application for a period of two years,
deeming such action as an attempt to evade regulatory purposes.

     Testimony in support of this measure was received on behalf
of a motor carrier, among other reasons, that it protects current

 
 
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operators from unfair competition from easily-obtained temporary
authorities to operate.  Testimonies in opposition were received
from PUC and from a motor carrier.  PUC testified that the
proposed bill hampered expedient carrier aid in emergency
situations.  The motor carrier testified that the carrier
industry is already excessively regulated, and that it should be
deregulated, as in other states.

     As affirmed by the record of votes of the members of your
Committee on Transportation that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1775 and recommends that it pass Second Reading and be referred
to the Committee on Consumer Protection and Commerce.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation,



                                   ______________________________
                                   KENNETH T. HIRAKI, Chair