STAND. COM. REP. NO. 3146

Honolulu, Hawaii

RE: H.B. No. 2435

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committee on Transportation and Energy, to which was referred H.B. No. 2435, H.D. 1, entitled:

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

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 Robert's Hawaii, Inc. and E Noa Corporation.

Your Committee finds that the Public Utilities Commission (PUC) regulates all chartered, franchised, certified, and registered public utility companies operating in the State, including motor vehicle carriers. The PUC imposes tariffs on motor vehicle carriers for rates, fares, and charges. Under the existing definition of "rates", the tariff is applied to non-transportation services and items like lunch, admission fare, and airfare that are often included in package deals offered by the motor vehicle carrier. Your Committee finds that this does not reflect the primary responsibility of the PUC. As such, the definition of "rates" should be amended to include only costs related to motor vehicle transportation.

Your Committee has amended this measure by making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

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

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

________________________________

LORRAINE R. INOUYE, Chair