STAND. COM. REP. NO. 2654

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2306
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Commerce and Consumer Protection, to which
was referred S.B. No. 2306, S.D. 1, entitled: 

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

begs leave to report as follows:

     The purpose of this measure is to clarify the requirements
for the Public Utilities Commission (PUC) to issue a certificate
of convenience and necessity (certificate).

     Your Committee received testimony from the PUC and E Noa
Corporation.

     This measure requires an applicant for a certificate to
adduce substantial evidence to support a finding by the PUC that
the proposed service or operation will be of beneficial value to
the community and a necessity, and will not directly compete with
or unduly prejudice existing carriers.  In addition, the PUC must
find that existing operations cannot meet the proposed service
and that there is a lack of adequate existing facilities to serve
the public.

     This measure also provides for a denial for two years of any
application if the applicant engages in motor carrier activity
without prior written authority from the PUC.

     The intent of this measure is to enhance the degree of
authority and flexibility of the PUC to regulate motor carriers
by clarifying the required showings on the record that the

 
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applicant must produce to satisfy the PUC for issuing a
certificate.  Current law does not provide specific guidelines
for the PUC to follow.

     Your Committee has amended this measure by clarifying that
in a contested case hearing relating to the issuance of a
certificate, the PUC must consider:

     (1)  The public interest in maintaining the health and
          stability of existing carriers;

     (2)  The adequacy of existing services;

     (3)  The beneficial value to the community; and

     (4)  The necessity of the proposed service.

     Your Committee notes that the term "health" in paragraph (1)
refers to the financial health of the carrier.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 2306, S.D. 1, as amended herein, and
recommends that it pass Third Reading in the form attached hereto
as S.B. No. 2306, S.D. 2.

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



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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