Bill Text: HI SB1219 | 2025 | Regular Session | Introduced


Bill Title: Relating To Transportation.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2025-02-03 - The committee(s) on TCA has scheduled a public hearing on 02-06-25 3:00PM; Conference Room 224 & Videoconference. [SB1219 Detail]

Download: Hawaii-2025-SB1219-Introduced.html

THE SENATE

S.B. NO.

1219

THIRTY-THIRD LEGISLATURE, 2025

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to transportation.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


PART I

     SECTION 1.  Section 46-1.5, Hawaii Revised Statutes, is amended to read as follows:

     "§46-1.5  General powers and limitation of the counties.  Subject to general law, each county shall have the following powers and shall be subject to the following liabilities and limitations:

     (1)  Each county shall have the power to frame and adopt a charter for its own self-government that shall establish the county executive, administrative, and legislative structure and organization, including but not limited to the method of appointment or election of officials, their duties, responsibilities, and compensation, and the terms of their office;

     (2)  Each county shall have the power to provide for and regulate the marking and lighting of all buildings and other structures that may be obstructions or hazards to aerial navigation, so far as may be necessary or proper for the protection and safeguarding of life, health, and property;

     (3)  Each county shall have the power to enforce all claims on behalf of the county and approve all lawful claims against the county, but shall be prohibited from entering into, granting, or making in any manner any contract, authorization, allowance payment, or liability contrary to the provisions of any county charter or general law;

     (4)  Each county shall have the power to make contracts and to do all things necessary and proper to carry into execution all powers vested in the county or any county officer;

     (5)  Each county shall have the power to:

          (A)  Maintain channels, whether natural or artificial, including their exits to the ocean, in suitable condition to carry off storm waters;

          (B)  Remove from the channels, and from the shores and beaches, any debris that is likely to create an unsanitary condition or become a public nuisance; provided that, to the extent any of the foregoing work is a private responsibility, the responsibility may be enforced by the county in lieu of the work being done at public expense;

          (C)  Construct, acquire by gift, purchase, or by the exercise of eminent domain, reconstruct, improve, better, extend, and maintain projects or undertakings for the control of and protection against floods and flood waters, including the power to drain and rehabilitate lands already flooded;

          (D)  Enact zoning ordinances providing that lands deemed subject to seasonable, periodic, or occasional flooding shall not be used for residence or other purposes in a manner as to endanger the health or safety of the occupants thereof, as required by the Federal Flood Insurance Act of 1956 (chapter 1025, Public Law 1016); and

          (E)  Establish and charge user fees to create and maintain any stormwater management system or infrastructure; provided that no county shall charge against or collect user fees from the department of transportation in excess of $1,500,000 in the aggregate per year; provided further that no services shall be denied to the department of transportation by reason of nonpayment of the fees;

     (6)  Each county shall have the power to exercise the power of condemnation by eminent domain when it is in the public interest to do so;

     (7)  Each county shall have the power to exercise regulatory powers over business activity as are assigned to them by chapter 445 or other general law;

     (8)  Each county shall have the power to fix the fees and charges for all official services not otherwise provided for;

     (9)  Each county shall have the power to provide by ordinance assessments for the improvement or maintenance of districts within the county;

    (10)  Except as otherwise provided, no county shall have the power to give or loan credit to, or in aid of, any person or corporation, directly or indirectly, except for a public purpose;

    (11)  Where not within the jurisdiction of the [public utilities commission,] department of transportation, each county shall have the power to regulate by ordinance the operation of motor vehicle common carriers transporting passengers within the county and adopt and amend rules the county deems necessary for the public convenience and necessity;

    (12)  Each county shall have the power to enact and enforce ordinances necessary to prevent or summarily remove public nuisances and to compel the clearing or removal of any public nuisance, refuse, and uncultivated undergrowth from streets, sidewalks, public places, and unoccupied lots.  In connection with these powers, each county may impose and enforce liens upon the property for the cost to the county of removing and completing the necessary work where the property owners fail, after reasonable notice, to comply with the ordinances.  The authority provided by this paragraph shall not be self-executing, but shall become fully effective within a county only upon the enactment or adoption by the county of appropriate and particular laws, ordinances, or rules defining "public nuisances" with respect to each county's respective circumstances.  The counties shall provide the property owner with the opportunity to contest the summary action and to recover the owner's property;

    (13)  Each county shall have the power to enact ordinances deemed necessary to protect health, life, and property, and to preserve the order and security of the county and its inhabitants on any subject or matter not inconsistent with, or tending to defeat, the intent of any state statute where the statute does not disclose an express or implied intent that the statute shall be exclusive or uniform throughout the State;

    (14)  Each county shall have the power to:

          (A)  Make and enforce within the limits of the county all necessary ordinances covering all:

              (i)  Local police matters;

             (ii)  Matters of sanitation;

            (iii)  Matters of inspection of buildings;

             (iv)  Matters of condemnation of unsafe structures, plumbing, sewers, dairies, milk, fish, and morgues; and

              (v)  Matters of the collection and disposition of rubbish and garbage;

          (B)  Provide exemptions for homeless facilities and any other program for the homeless authorized by part XVII of chapter 346, for all matters under this paragraph;

          (C)  Appoint county physicians and sanitary and other inspectors as necessary to carry into effect ordinances made under this paragraph, who shall have the same power as given by law to agents of the department of health, subject only to limitations placed on them by the terms and conditions of their appointments; and

          (D)  Fix a penalty for the violation of any ordinance, which penalty may be a misdemeanor, petty misdemeanor, or violation as defined by general law;

    (15)  Each county shall have the power to provide public pounds; to regulate the impounding of stray animals and fowl, and their disposition; and to provide for the appointment, powers, duties, and fees of animal control officers;

    (16)  Each county shall have the power to purchase and otherwise acquire, lease, and hold real and personal property within the defined boundaries of the county and to dispose of the real and personal property as the interests of the inhabitants of the county may require, except that:

          (A)  Any property held for school purposes may not be disposed of without the consent of the superintendent of education;

          (B)  No property bordering the ocean shall be sold or otherwise disposed of; and

          (C)  All proceeds from the sale of park lands shall be expended only for the acquisition of property for park or recreational purposes;

    (17)  Each county shall have the power to provide by charter for the prosecution of all offenses and to prosecute for offenses against the laws of the State under the authority of the attorney general of the State;

    (18)  Each county shall have the power to make appropriations in amounts deemed appropriate from any moneys in the treasury, for the purpose of:

          (A)  Community promotion and public celebrations;

          (B)  The entertainment of distinguished persons as may from time to time visit the county;

          (C)  The entertainment of other distinguished persons, as well as, public officials when deemed to be in the best interest of the community; and

          (D)  The rendering of civic tribute to individuals who, by virtue of their accomplishments and community service, merit civic commendations, recognition, or remembrance;

    (19)  Each county shall have the power to:

          (A)  Construct, purchase, take on lease, lease, sublease, or in any other manner acquire, manage, maintain, or dispose of buildings for county purposes, sewers, sewer systems, pumping stations, waterworks, including reservoirs, wells, pipelines, and other conduits for distributing water to the public, lighting plants, and apparatus and appliances for lighting streets and public buildings, and manage, regulate, and control the same;

          (B)  Regulate and control the location and quality of all appliances necessary to the furnishing of water, heat, light, power, telephone, and telecommunications service to the county;

          (C)  Acquire, regulate, and control any and all appliances for the sprinkling and cleaning of the streets and the public ways, and for flushing the sewers; and

          (D)  Open, close, construct, or maintain county highways or charge toll on county highways; provided that all revenues received from a toll charge shall be used for the construction or maintenance of county highways;

    (20)  Each county shall have the power to regulate the renting, subletting, and rental conditions of property for places of abode by ordinance;

    (21)  Unless otherwise provided by law, each county shall have the power to establish by ordinance the order of succession of county officials in the event of a military or civil disaster;

    (22)  Each county shall have the power to sue and be sued in its corporate name;

    (23)  Each county shall have the power to:

          (A)  Establish and maintain waterworks and sewer works;

          (B)  Implement a sewer monitoring program that includes the inspection of sewer laterals that connect to county sewers, when those laterals are located on public or private property, after providing a property owner not less than ten calendar days' written notice, to detect leaks from laterals, infiltration, and inflow, any other law to the contrary notwithstanding;

          (C)  Compel an owner of private property upon which is located any sewer lateral that connects to a county sewer to inspect that lateral for leaks, infiltration, and inflow and to perform repairs as necessary;

          (D)  Collect rates for water supplied to consumers and for the use of sewers;

          (E)  Install water meters whenever deemed expedient; provided that owners of premises having vested water rights under existing laws appurtenant to the premises shall not be charged for the installation or use of the water meters on the premises;

          (F)  Take over from the State existing waterworks systems, including water rights, pipelines, and other appurtenances belonging thereto, and sewer systems, and to enlarge, develop, and improve the same; and

          (G)  For purposes of subparagraphs (B) and (C):

              (i)  "Infiltration" means groundwater, rainwater, and saltwater that enters the county sewer system through cracked, broken, or defective sewer laterals; and

             (ii)  "Inflow" means non-sewage entering the county sewer system via inappropriate or illegal connections;

     (24) (A)  Each county may impose civil fines, in addition to criminal penalties, for any violation of county ordinances or rules after reasonable notice and requests to correct or cease the violation have been made upon the violator.  Any administratively imposed civil fine shall not be collected until after an opportunity for a hearing under chapter 91.  Any appeal shall be filed within thirty days from the date of the final written decision.  These proceedings shall not be a prerequisite for any civil fine or injunctive relief ordered by the circuit court;

          (B)  Each county by ordinance may provide for the addition of any unpaid civil fines, ordered by any court of competent jurisdiction, to any taxes, fees, or charges, with the exception of fees or charges for water for residential use and sewer charges, collected by the county.  Each county by ordinance may also provide for the addition of any unpaid administratively imposed civil fines, which remain due after all judicial review rights under section 91-14 are exhausted, to any taxes, fees, or charges, with the exception of water for residential use and sewer charges, collected by the county.  The ordinance shall specify the administrative procedures for the addition of the unpaid civil fines to the eligible taxes, fees, or charges and may require hearings or other proceedings.  After addition of the unpaid civil fines to the taxes, fees, or charges, the unpaid civil fines shall not become a part of any taxes, fees, or charges.  The county by ordinance may condition the issuance or renewal of a license, approval, or permit for which a fee or charge is assessed, except for water for residential use and sewer charges, on payment of the unpaid civil fines.  Upon recordation of a notice of unpaid civil fines in the bureau of conveyances, the amount of the civil fines, including any increase in the amount of the fine which the county may assess, shall constitute a lien upon all real property or rights to real property belonging to any person liable for the unpaid civil fines.  The lien in favor of the county shall be subordinate to any lien in favor of any person recorded or registered prior to the recordation of the notice of unpaid civil fines and senior to any lien recorded or registered after the recordation of the notice.  The lien shall continue until the unpaid civil fines are paid in full or until a certificate of release or partial release of the lien, prepared by the county at the owner's expense, is recorded.  The notice of unpaid civil fines shall state the amount of the fine as of the date of the notice and maximum permissible daily increase of the fine.  The county shall not be required to include a social security number, state general excise taxpayer identification number, or federal employer identification number on the notice.  Recordation of the notice in the bureau of conveyances shall be deemed, at [such] the time, for all purposes and without any further action, to procure a lien on land registered in land court under chapter 501.  After the unpaid civil fines are added to the taxes, fees, or charges as specified by county ordinance, the unpaid civil fines shall be deemed immediately due, owing, and delinquent and may be collected in any lawful manner.  The procedure for collection of unpaid civil fines authorized in this paragraph shall be in addition to any other procedures for collection available to the State and county by law or rules of the courts;

          (C)  Each county may impose civil fines upon any person who places graffiti on any real or personal property owned, managed, or maintained by the county.  The fine may be up to $1,000 or may be equal to the actual cost of having the damaged property repaired or replaced.  The parent or guardian having custody of a minor who places graffiti on any real or personal property owned, managed, or maintained by the county shall be jointly and severally liable with the minor for any civil fines imposed hereunder.  Any [such] fine may be administratively imposed after an opportunity for a hearing under chapter 91, but such a proceeding shall not be a prerequisite for any civil fine ordered by any court.  As used in this subparagraph, "graffiti" means any unauthorized drawing, inscription, figure, or mark of any type intentionally created by paint, ink, chalk, dye, or similar substances;

          (D)  At the completion of an appeal in which the county's enforcement action is affirmed and upon correction of the violation if requested by the violator, the case shall be reviewed by the county agency that imposed the civil fines to determine the appropriateness of the amount of the civil fines that accrued while the appeal proceedings were pending.  In its review of the amount of the accrued fines, the county agency may consider:

              (i)  The nature and egregiousness of the violation;

             (ii)  The duration of the violation;

            (iii)  The number of recurring and other similar violations;

             (iv)  Any effort taken by the violator to correct the violation;

              (v)  The degree of involvement in causing or continuing the violation;

             (vi)  Reasons for any delay in the completion of the appeal; and

            (vii)  Other extenuating circumstances.

              The civil fine that is imposed by administrative order after this review is completed and the violation is corrected shall be subject to judicial review, notwithstanding any provisions for administrative review in county charters;

          (E)  After completion of a review of the amount of accrued civil fine by the county agency that imposed the fine, the amount of the civil fine determined appropriate, including both the initial civil fine and any accrued daily civil fine, shall immediately become due and collectible following reasonable notice to the violator.  If no review of the accrued civil fine is requested, the amount of the civil fine, not to exceed the total accrual of civil fine prior to correcting the violation, shall immediately become due and collectible following reasonable notice to the violator, at the completion of all appeal proceedings; and

          (F)  If no county agency exists to conduct appeal proceedings for a particular civil fine action taken by the county, then one shall be established by ordinance before the county shall impose the civil fine;

    (25)  Any law to the contrary notwithstanding, any county mayor, by executive order, may exempt donors, provider agencies, homeless facilities, and any other program for the homeless under part XVII of chapter 346 from real property taxes, water and sewer development fees, rates collected for water supplied to consumers and for use of sewers, and any other county taxes, charges, or fees; provided that any county may enact ordinances to regulate and grant the exemptions granted by this paragraph;

    (26)  Any county may establish a captive insurance company pursuant to article 19, chapter 431; and

    (27)  Each county shall have the power to enact and enforce ordinances regulating towing operations."

     SECTION 2.  Section 239-2, Hawaii Revised Statutes, is amended by amending the definition of "gross income" to read as follows:

     ""Gross income" means the gross income from public service company business as follows:

     (1)  Gross income from the production, conveyance, transmission, delivery, or furnishing of light, power, heat, cold, water, gas, or oil;

     (2)  Gross income from the transportation of passengers or freight, or the conveyance or transmission of telephone or telegraph messages other than mobile telecommunications services, or the furnishing of facilities for the transmission of intelligence by electricity, by land or water or air:

          (A)  Originating and terminating within [this] the State;

          (B)  By means of vessels or aircraft having their home port in the State and operating between ports or airports in the State, with respect to the transportation so effected; or

          (C)  By means of plant or equipment located in the State, between points in the State;

     (3)  Gross income from the transportation of freight by motor carriers (other than as stated in paragraph (2)), or the conveyance or transmission of messages or intelligence through wires or cables located or partly located in the State (other than as stated in paragraph (2) or (5));

     (4)  Gross income from the operation of a private sewer company or private sewer facility; or

     (5)  With respect to a home service provider of mobile telecommunications services, "gross income" includes charges billed for mobile telecommunications services provided by a home service provider to a customer with a place of primary use in [this] the State when the mobile telecommunications services originate and terminate within the same state; provided that all [such] the charges for mobile telecommunications services that are billed by or for the home service provider are deemed to be provided by the home service provider at the customer's place of primary use, regardless of where the mobile telecommunications services originate, terminate, or pass through.  "Gross income" shall not include:

          (A)  Any charges for or receipts from mobile telecommunications services provided to customers of the home service provider whose place of primary use is outside [this] the State;

          (B)  Any receipts of a home service provider acting as a serving carrier providing mobile telecommunications services to another home service provider's customer; and

          (C)  Any receipts specifically from interstate or foreign mobile telecommunications services taxable under section 237-13(6)(D), as determined by the home service provider's books and records kept in the ordinary course of business.

          For the purposes of this paragraph, "customer", "home service provider", "mobile telecommunications services", "place of primary use", and "serving carrier" have the same meaning as in section 239-22.

     The words "gross income" and "gross income from public service company business" shall not be construed to include dividends (as defined [by] in section 235-1) paid by one member of an affiliated public service company group to another member of the same group; or gross income from the sale or transfer of materials or supplies, interest on loans, or the provision of engineering, construction, maintenance, or managerial services by one member of an affiliated public service company group to another member of the same group.  "Affiliated public service company group" means an affiliated group of domestic corporations within the meaning of chapter 235, all of the members of which are public service companies.  "Member of an affiliated public service company group" means a corporation (including the parent corporation) that is included within an affiliated public service company group.

     Where the transportation of passengers or property is furnished through arrangements between motor carriers, and the gross income is divided between the motor carriers, any tax imposed by this chapter shall apply to each motor carrier with respect to each motor carrier's respective portion of the proceeds.

     Where tourism related services are furnished through arrangements made by a travel agency or tour packager and the gross income is divided between the provider of the services on the one hand and the travel agency or tour packager on the other hand, any tax imposed by this chapter shall apply to each person with respect to each person's respective portion of the proceeds.

     Accounts found to be worthless and actually charged off for income tax purposes, at corresponding periods, may be deducted from gross income as specified under this chapter so far as the accounts reflect taxable sales, but shall be added to gross income when and if subsequently collected.

     As used in this paragraph, "tourism related services" means motor carriers of passengers regulated by the [public utilities commission.] department of transportation."

     SECTION 3.  Section 269-33, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  There is established in the state treasury a public utilities commission special fund to be administered by the public utilities commission.  The proceeds of the fund shall be used by the public utilities commission and the division of consumer advocacy of the department of commerce and consumer affairs for all expenses incurred in the administration of chapters 269, [271, 271G,] 269E, and 486J, and for costs incurred by the department of commerce and consumer affairs to fulfill the department's limited oversight and administrative support functions; provided that the expenditures of the public utilities commission shall be in accordance with legislative appropriations.  On a quarterly basis, an amount not exceeding thirty per cent of the proceeds remaining in the fund after the deduction for central service expenses, pursuant to section 36‑27, shall be allocated by the public utilities commission to the division of consumer advocacy and deposited in the compliance resolution fund established pursuant to section 26‑9(o); provided that all moneys allocated by the public utilities commission from the fund to the division of consumer advocacy shall be in accordance with legislative appropriations.

     (b)  All moneys appropriated to, received, and collected by the public utilities commission that are not otherwise pledged, obligated, or required by law to be placed in any other special fund or expended for any other purpose shall be deposited into the public utilities commission special fund including, but not limited to, all moneys received and collected by the public utilities commission pursuant to sections 92-21, 243-3.5, 269‑28, 269-30, [271-27, 271-36, 271G-19,] 269E-6, 269E-14, and 607-5."

     SECTION 4.  Section 271-4, Hawaii Revised Statutes, is amended as follows:

      1.  By amending the definition of "document" to read:

     ""Document" includes any application, complaint, pleading, brief, answer, motion, memorandum, declaration, exhibit, certificate of service, and other papers filed by or with the [commission.] department."

      2.  By amending the definition of "motor vehicle" to read:

     ""Motor vehicle" means any vehicle, machine, tractor, trailer, or semitrailer propelled or drawn by mechanical power and used upon the highways in the transportation of passengers or property, or any combination thereof determined by the [commission,] department, but does not include any vehicle, locomotive, or car operated exclusively on a rail or rails or a trolley bus operated by electric power derived from a fixed overhead wire, furnishing local passenger transportation similar to street-railway service."

      3.  By repealing the definition of "commission".

     [""Commission" means the public utilities commission."]

     SECTION 5.  Section 271-5, Hawaii Revised Statutes, is amended to read as follows:

     "§271-5  Exemptions, generally.  Notwithstanding any other provisions of this chapter, its contents shall not apply to:

     (1)  Persons transporting their own property where the transportation is in furtherance of a primary business purpose or enterprise of that person, except where the transportation is undertaken by a motor carrier to evade the regulatory purposes of this chapter;

     (2)  Persons operating motor vehicles when engaged in the transportation of school children and teachers to and from school, and to and from school functions; provided that these persons may engage in providing transportation at special rates for groups of persons belonging to an eleemosynary or benevolent organization or association domiciled in this State where the organization or association sponsors or is conducting a nonregular excursion; provided that whenever the persons engage in the transportation of persons other than those exempted in this paragraph, that portion of their operation shall not be exempt from this chapter.  Nothing in this paragraph shall be construed to authorize any person to engage in the transportation of persons, other than the transportation of persons exempted by the terms of this paragraph, without a permit or certificate issued by the [commission] department authorizing [such] the transportation;

     (3)  Persons operating taxicabs or other motor vehicles utilized in performing a bona fide taxicab service.  "Taxicab" includes:

          (A)  Any motor vehicle used in the movement of passengers on the public highways under the following circumstances, namely the passenger hires the vehicle on call or at a fixed stand, with or without baggage for transportation, and controls the vehicle to the passenger's destination;

          (B)  Any motor vehicle for hire having seating accommodations for eight or fewer passengers used in the movement of passengers on the public highways that may, as part of a continuous trip, pick up or discharge passengers from various unrelated locations; provided that they shall be regulated by the counties in accordance with section 46-16.5(c); [and] provided further that this subparagraph shall not apply to any exclusive rights granted by the department [of transportation] for taxicab services at facilities under the department's control; and

          (C)  Any motor vehicle having seating accommodations for eight or fewer passengers used in the movement of passengers on the public highways between a terminal, i.e., a fixed stand, in the Honolulu district, as defined in section 4-1 and a terminal in a geographical district outside the limits of the Honolulu district, and vice versa, without picking up passengers other than at the terminals or fixed stands; provided that the passengers may be picked up by telephone call from their homes in the rural area or may be unloaded at any point between the fixed stands or may be delivered to their homes in the rural area;

     (4)  Persons operating motor vehicles in the transportation of persons pursuant to a franchise from the legislature and whose operations are presently regulated under chapter 269;

     (5)  Nonprofit agricultural cooperative associations to the extent that they engage in the transportation of their own property or the property of their members;

     (6)  Persons operating motor vehicles specially constructed for the towing of disabled or wrecked vehicles but not otherwise used in the transportation of property for compensation or hire;

     (7)  Persons operating motor vehicles in the transportation of mail, newspapers, periodicals, magazines, messages, documents, letters, or blueprints;

     (8)  Persons operating funeral cars or ambulances;

     (9)  Persons operating motor vehicles in the transportation of garbage or refuse;

    (10)  Persons operating the type of passenger carrying motor vehicles known as "sampan buses" within the radius of twenty miles from the city of Hilo, Hawaii;

    (11)  Persons transporting unprocessed pineapple to a cannery, seed corn to a processing facility, or returning any containers used in [such] the transportation to the fields;

    (12)  Sugar plantations transporting sugarcane, raw sugar, molasses, sugar by-products, and farming supplies for neighboring farmers pursuant to contracts administered by the United States Department of Agriculture;

    (13)  Persons engaged in the ranching or meat or feed business who transport cattle to slaughterhouses for hire where [such] the transportation is their sole transportation for hire and where their earnings from the transportation constitute less than fifty per cent of their gross income from their business and the transportation for hire;

    (14)  Persons transporting unprocessed raw milk to processing plants and returning any containers used in [such] the transportation to dairy farms for reloading;

    (15)  Persons transporting animal feeds to animal husbandry farmers and farming supplies directly to animal husbandry farmers and returning any containers used in [such] the transportation to these sources of such feeds and supplies for reloading;

    (16)  Persons engaged in transporting not more than fifteen passengers between their places of abode, or termini near [such] the places, and their places of employment in a single daily round trip where the driver is also on the driver's way to or from the driver's place of employment;

    (17)  Persons transporting passengers without charge in motor vehicles owned or operated by [such] the person, where such transportation is provided in conjunction with and in furtherance of a related primary business purpose or enterprise of that person, and [such] the transportation is provided only directly to and from the place of business of such person, except that this exemption shall not apply to persons making any contract, agreement, or arrangement to provide, procure, furnish, or arrange for transportation as a travel agent or broker or a person engaged in tour or sightseeing activities, nor shall this exemption apply where the transportation is undertaken by a person to evade the regulatory purposes of this chapter; and

    (18)  Persons conducting the type of county-regulated passenger carrying operation known as "jitney services".  For the purposes of this paragraph, "jitney services" means public transportation services utilizing motor vehicles that have seating accommodations for six to twenty-five passengers, operate along specific routes during defined service hours, and levy a flat fare schedule."

     SECTION 6.  Section 271-9, Hawaii Revised Statutes, is amended to read as follows:

     "§271-9  General duties and powers of the [commission.] department.  (a)  The general duties and powers of the [public utilities commission] department shall be:

     (1)  To regulate common carriers by motor vehicle, and to that end the [commission] department shall establish reasonable requirements with respect to continuous and adequate service, leasing of motor vehicles, uniform system of accounts, records, and reports, and preservation of records[.];

     (2)  To regulate contract carriers by motor vehicle, and to that end the [commission] department shall establish reasonable requirements with respect to leasing of motor vehicles, uniform system of accounts, records, and reports, and preservation of records[.];

     (3)  To administer, execute, and enforce this chapter, to make all necessary orders in connection therewith, and to prescribe rules, regulations, and procedures for the administration[.];

     (4)  For purposes of the administration of this chapter, to inquire into the management of the business of motor carriers, and into the management of the business of persons controlling, controlled by, or under common control with, motor carriers to the extent that the business of these persons is related to the management of the business of one or more motor carriers, and the [commission] department shall keep itself informed as to the manner and method in which the same are conducted, and may obtain from the carriers and persons such information as the [commission] department deems necessary to carry out the provisions of this chapter[.]; and

     (5)  To investigate any person acting in the capacity of or engaging in the business of a motor carrier within the State, without having a certificate of public convenience and necessity or other authority previously obtained under and in compliance with this chapter or the rules promulgated thereunder.

     (b)  The [commission] department may from time to time establish such just and reasonable classifications of groups of carriers included in the term "common carrier by motor vehicle" or "contract carrier by motor vehicle", as the special nature of the services performed by the carriers shall require, and such just and reasonable rules, regulations, and requirements, consistent with this chapter, to be observed by the carriers so classified or grouped, as the [commission] department deems necessary or desirable in the public interest.

     (c)  Upon complaint in writing to the [commission] department by any person or body politic, or upon its own initiative without complaint, the [commission] department may investigate whether any motor carrier has failed to comply with any provision of this chapter, or with any regulation, requirements, or order established or issued pursuant thereto.  If the [commission,] department, after notice and hearing as prescribed in section 271-31, finds upon any investigation that the motor carrier has failed to comply with any provision, regulation, requirements, or order, the [commission] department shall issue an appropriate order to compel the carrier to comply therewith.  Whenever the [commission] department is of the opinion that any complaint does not state reasonable grounds for investigation and action on its part, it may dismiss the complaint."

     SECTION 7.  Section 271-18, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  Whenever a transaction is proposed under subsection (b) or (c) of this section, the motor carrier or motor carriers, or person or persons, seeking approval thereof shall present an application to the [commission] department in [such] the form as the [commission] department may require and the [commission] department may thereupon act upon the application with or without first holding a public hearing; provided that if requested, it shall afford reasonable opportunity for interested parties to be heard.  If the [commission] department finds that subject to such terms and conditions as it shall find to be just and reasonable the proposed transaction will be consistent with the public interests, the [commission] department shall enter an order approving and authorizing the transaction, upon the terms and conditions, and with the modifications, so found to be just and reasonable.  In passing upon any transaction under subsection (b) or (c), the [commission] department shall give weight, among other considerations, to the effect of the proposed transaction upon [(1) adequate transportation service to the public, (2) other motor carriers, and (3) the employees of any transferring motor carrier.]:

     (1)  Adequate transportation service to the public;

     (2)  Other motor carriers; and

     (3)  The employees of any transferring motor carrier."

     SECTION 8.  Section 271-27, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (c) to read:

     "(c)  Any special agent, accountant, or examiner who knowingly and wilfully divulges any fact or information which may come to the special agent's, accountant's, or examiner's knowledge during the course of any examination or inspection made under authority of sections 271-9(a)(4), 271-23, and 271‑25, except as the special agent, accountant, or examiner may be directed by the [commission] department or by a court or judge thereof, shall be guilty of a misdemeanor."

     2.  By amending subsections (f) through (j) to read:

     "(f)  Any motor carrier or any officer, agent, employee, or representative thereof, who wilfully fails or refuses to make a report to the [commission] department as required by this chapter, or to make specific and full, true, and correct answer to any question within thirty days from the time it is lawfully required by the [commission,] department, or to keep accounts, records, and memoranda in the form and manner prescribed by the [commission,] department, or knowingly and wilfully falsifies, destroys, mutilates, or alters any report, account, record, or memorandum or knowingly and wilfully files with the [commission] department any false report, account, record, or memorandum, or knowingly and wilfully neglects or fails to make full, true, and correct entries in the accounts, records, or memoranda of all facts and transactions appertaining to the business of the carrier, or person required under this chapter to keep the same, or knowingly and wilfully keeps accounts, records, or memoranda contrary to the rules, regulations, or orders of the [commission] department with respect thereto, shall be deemed guilty of a misdemeanor.  As used in this subsection, the words "keep" and "kept" mean made, prepared, or compiled, as well as retained.

     (g)  Except when required by state law to take immediately before a district judge a person arrested for violation of this chapter, including any rule adopted pursuant to this chapter, any enforcement officer, other than a motor vehicle safety officer employed and assigned, pursuant to section 271-38, by the department [of transportation] to assess civil penalties, upon arresting a person for violation of this chapter, including any rule adopted pursuant to this chapter shall issue to the alleged violator a summons or citation printed in the form hereinafter described, warning the alleged violator to appear and answer to the charge against the alleged violator at a certain place within seven days after the arrest.

     (1)  The summons or citation shall be printed in a form comparable to that of other summonses and citations used for arresting offenders and shall include all necessary information.  The form and content shall be adopted or prescribed by the district courts.

     (2)  The original of a summons or citation shall be given to the alleged violator and any other copies distributed in the manner prescribed by the district courts; provided that the district courts may prescribe alternative methods of distribution for the original and any other copies.

     (3)  Summonses and citations shall be consecutively numbered and any other copies of each shall bear the same number.

     (4)  Any person who fails to appear at the place and within the time specified in the summons or citation shall be guilty of a misdemeanor.

     (5)  If any person fails to comply with a summons or citation or fails or refuses to deposit bail as required, the enforcement officer shall cause a complaint to be entered against the person and secure the issuance of a warrant for the person's arrest.

     (6)  When a complaint is made to any prosecuting officer of a violation of this chapter or any rule, the enforcement officer who issued the summons or citation shall subscribe to it under oath administered by another official whose name has been submitted to the prosecuting officer and who has been designated by the [commission] department to administer the same.

     (h)  Any motor carrier or lessor, or any officer, agent, employee, or representative thereof, who fails or refuses to comply with any provision of this chapter, or any rule, requirement, or order thereunder, and any person located in this State, or any officer, agent, employee, or representative of any [such] the person, who engages the services of any motor carrier or lessor, or any officer, agent, employee, or representative thereof, who fails or refuses to comply with any provision of this chapter, or any rule, requirement, or order, may be assessed a civil penalty for an amount determined by the [commission] department subject to this section payable to the State in a sum:

     (1)  Up to $1,000 for each offense;

     (2)  In the case of a continuing violation, not less than $50 and not more than $500 for each additional day during which the failure or refusal continues; and

     (3)  Up to $5,000 for each fourth or subsequent violation within one calendar year.

     (i)  Notwithstanding subsection (h), a motor carrier who fails to file, within the prescribed time, a financial report with the [commission] department pursuant to its rules may be assessed a civil penalty payable to the State up to the sum of one-sixteenth of one per cent of the gross revenues from the motor carrier's business during the preceding calendar year, if the failure is for not more than one month, with an additional one-sixteenth of one per cent for each additional month or fraction thereof during which the failure continues, but in no event shall the total civil penalty be less than the sum of $50.

     (j)  In addition to any other remedy available, the [commission] department or its enforcement officer, including a motor vehicle safety officer employed and assigned by the department [of transportation] pursuant to section 271-38, may issue citations to persons acting in the capacity of or engaging in the business of a motor carrier within this State, without having a certificate of public convenience and necessity or other authority previously obtained under and in compliance with this chapter and rules adopted, or to any shipper or consignee located in this State, or any officer, employee, agent, or representative thereof who engages the services of those persons.

     (1)  The citation may contain an order of abatement and an assessment of civil penalties as provided in subsection (h).  All penalties collected under this subsection shall be deposited in the treasury of the State.  Service of a citation issued under this subsection shall be made by personal service whenever possible or by certified mail, restricted delivery, sent to the last known business or residence address of the person cited.

     (2)  Any person served with a citation under this subsection may submit a written request to the [commission] department for a hearing within twenty days from the receipt of the citation, with respect to the violations alleged, the scope of the order of abatement, and the amount of civil penalties assessed.  If the person cited under this subsection notifies the [commission] department of the request for a hearing in time, the [commission] department shall afford the person an opportunity for a hearing under chapter 91.  The hearing shall be conducted by the [commission,] department, or the [commission] department may designate a hearings officer to hold the hearing.

     (3)  If the person cited under this subsection does not submit a written request to the [commission] department for a hearing in time, the citation shall be deemed a final order of the [commission.] department.  The [commission] department may apply to the appropriate court for a judgment to enforce the provisions of any final order issued by the [commission] department or designated hearings officer pursuant to this subsection, including the provisions for abatement and civil penalties imposed.  In any proceeding to enforce the final order, the [commission] department need only produce a certified copy of the final order and show that the notice was given and that a hearing was held or the time granted for requesting the hearing has run without a request.

     (4)  If any party is aggrieved by the decision of the [commission] department or the designated hearings officer, the party may appeal, subject to chapter 602, in the manner provided for civil appeals from the circuit courts; provided that the operation of an abatement order shall not be stayed on appeal unless specifically ordered by a court of competent jurisdiction after applying the stay criteria enumerated in section 91-14(c).  The sanctions and disposition authorized under this subsection shall be separate and in addition to all other remedies either civil or criminal provided by law.  The [commission] department may adopt any rules under chapter 91 that may be necessary to fully effectuate this subsection."

     SECTION 9.  Section 271-36, Hawaii Revised Statutes, is amended to read as follows:

     "§271-36  Fees and charges.  (a)  Every common carrier by motor vehicle and every contract carrier by motor vehicle shall pay to the [commission,] department, in April of each year, a fee equal to one-fourth of one per cent of the gross revenues from the carrier's business during the preceding calendar year, or the sum of $20, whichever is greater.  Gross revenues include all revenues received from services connected with or incidental to the transportation of persons or the transportation of property, as defined under section 271-4.

     (b)  Every common carrier by motor vehicle and every contract carrier by motor vehicle paying a fee under subsection (a) may impose a surcharge to recover the amount paid above one‑eighth of one per cent of gross income.  The surcharge imposed shall not be subject to the notice, hearing, and approval requirements of this chapter; provided that the surcharge may be imposed by the utility only after thirty days' notice to the [public utilities commission.] department.  Unless ordered by the [public utilities commission,] department, the surcharge shall be imposed only until the conclusion of the carrier's next rate case; provided that the surcharge shall be subject to refund with interest at the public utility's authorized rate of return on rate base if the utility collects more money from the surcharge than actually paid due to the increase in the fee to one-fourth of one per cent.

     (c)  The [commission] department shall establish fair and reasonable fees for the following applications:

     (1)  Applications for certificates and permits as provided by sections 271-12 and 271-13;

     (2)  Applications for extensions of certificates as provided by section 271-12(d);

     (3)  Applications for temporary certificates and permits as provided by section 271-16; and

     (4)  Applications for authority to convey property necessary or useful in the performance of duties to the public or to transfer certificates or permits or to purchase motor carrier stock, as provided in section 271-18.

The fees charged pursuant to this subsection shall be paid to the [commission] department at the time of submission of the application.

     (d)  The [commission] department may charge an amount it deems necessary and reasonable to defray the cost of supplying to the carriers and the public the application forms and other forms, schedules, tariffs, copies of rules, and other pamphlets and materials it provides by individual copy or in bulk.

     (e)  All of the fees and charges collected under this section shall be deposited with the director of finance to the credit of the [public utilities commission special fund established under section 269-33.] state highway fund established under section 248-9."

PART II

     SECTION 10.  Chapter 271G, Hawaii Revised Statutes, is amended by adding two new sections to be appropriately designated and to read as follows:

     "§271G-    Certificates of public convenience and necessity for water carriers.  (a)  No person which holds itself out to the general public to engage in the transportation by water of passengers or property or any class or classes thereof for compensation, between points in the State, shall operate, unless there is in force with respect to the carrier a certificate of public convenience and necessity issued by the department authorizing the transportation; provided that this section shall not apply to any carrier by water to the extent that the carrier is excluded from the definition of a public utility under section 269-1(2)(E) and (F).

     (b)  Applications for certificates shall be made in writing under oath to the department in the form as it requires.

     (c)  A certificate shall be issued to any qualified applicant therefor, authorizing the whole or any part of the operations covered by the application, if it is found that the applicant is fit, willing, and able properly to perform the service proposed and to conform to the provisions of this chapter and the requirements, rules, and regulations of the department thereunder, and that the proposed service, to the extent authorized by the certificate, is or will be required by the present or future public convenience and necessity; otherwise the application shall be denied.  Any certificate issued shall specify the service to be rendered and the routes and ports that the water carrier is to serve and there shall be attached to the exercise of the privileges granted by the certificate, at the time of issuance and from time to time thereafter, the reasonable conditions and limitations as the public convenience and necessity may require.

     (d)  The department may at any time suspend, change, or revoke the certificate in the manner provided in section 271-19.

     §271G-    Preferential water carrier service rates for agricultural activities.  The department may authorize preferential water carrier service rates by tariff for ratepayers that engage in agricultural activities.  The application process for obtaining preferential water carrier service rates by tariff may be established by the department."

     SECTION 11.  Section 269-1, Hawaii Revised Statutes, is amended by amending the definition of "public utility" to read:

     ""Public utility":

     (1)  Includes every person who may own, control, operate, or manage as owner, lessee, trustee, receiver, or otherwise, whether under a franchise, charter, license, articles of association, or otherwise, any plant or equipment, or any part thereof, directly or indirectly for public use for the transportation of passengers or freight; for the conveyance or transmission of telecommunications messages; for the furnishing of facilities for the transmission of intelligence by electricity within the State or between points within the State by land, water, or air; for the production, conveyance, transmission, delivery, or furnishing of light, power, heat, cold, water, gas, or oil; for the storage or warehousing of goods; or for the disposal of sewage; provided that the term shall include:

          (A)  An owner or operator of a private sewer company or sewer facility; and

          (B)  A telecommunications carrier or telecommunications common carrier; and

     (2)  Shall not include:

          (A)  An owner or operator of an aerial transportation enterprise;

          (B)  An owner or operator of a taxicab as defined in this section;

          (C)  Common carriers that transport only freight on the public highways, unless operating within localities, along routes, or between points that the public utilities commission finds to be inadequately serviced without regulation under this chapter;

          (D)  Persons engaged in the business of warehousing or storage unless the commission finds that regulation is necessary in the public interest;

          (E)  A carrier by water to the extent that the carrier enters into private contracts for towage, salvage, hauling, or carriage between points within the State; provided that the towing, salvage, hauling, or carriage is not pursuant to either an established schedule or an undertaking to perform carriage services on behalf of the public generally;

          (F)  A carrier by water, substantially engaged in interstate or foreign commerce, that transports passengers on luxury cruises between points within the State or on luxury round-trip cruises returning to the point of departure;

          (G)  Any user, owner, or operator of the Hawaii electric system as defined under section 269-141;

          (H)  A telecommunications provider only to the extent determined by the public utilities commission pursuant to section 269-16.9;

          (I)  Any person who controls, operates, or manages plants or facilities developed pursuant to chapter 167 for conveying, distributing, and transmitting water for irrigation and other purposes for public use and purpose;

          (J)  Any person who owns, controls, operates, or manages plants or facilities for the reclamation of wastewater; provided that:

              (i)  The services of the facility are provided pursuant to a service contract between the person and a state or county agency and at least ten per cent of the wastewater processed is used directly by the state or county agency that entered into the service contract;

             (ii)  The primary function of the facility is the processing of secondary treated wastewater that has been produced by a municipal wastewater treatment facility owned by a state or county agency;

            (iii)  The facility does not make sales of water to residential customers;

             (iv)  The facility may distribute and sell recycled or reclaimed water to entities not covered by a state or county service contract; provided that, in the absence of regulatory oversight and direct competition, the distribution and sale of recycled or reclaimed water shall be voluntary and its pricing fair and reasonable.  For purposes of this subparagraph, "recycled water" and "reclaimed water" means treated wastewater that by design is intended or used for a beneficial purpose; and

              (v)  The facility is not engaged, either directly or indirectly, in the processing of food wastes;

          (K)  Any person who owns, controls, operates, or manages any seawater air conditioning district cooling project; provided that at least fifty per cent of the energy required for the seawater air conditioning district cooling system is provided by a renewable energy resource, such as cold, deep seawater;

          (L)  Any person who owns, controls, operates, or manages plants or facilities primarily used to charge or discharge a vehicle battery that provides power for vehicle propulsion;

          (M)  Any person who:

              (i)  Owns, controls, operates, or manages a renewable energy system that is located on a customer's property; and

             (ii)  Provides, sells, or transmits the power generated from that renewable energy system to an electric utility or to the customer on whose property the renewable energy system is located; provided that, for purposes of this subparagraph, a customer's property shall include all contiguous property owned or leased by the customer without regard to interruptions in contiguity caused by easements, public thoroughfares, transportation rights-of-way, and utility rights-of-way; and

          (N)  Any person who owns, controls, operates, or manages a renewable energy system that is located on [such] the person's property and provides, sells, or transmits the power generated from that renewable energy system to an electric utility or to lessees or tenants on the person's property where the renewable energy system is located; provided that:

              (i)  An interconnection, as defined in section 269-141, is maintained with an electric public utility to preserve the lessees' or tenants' ability to be served by an electric utility;

             (ii)  [Such] The person does not use an electric public utility's transmission or distribution lines to provide, sell, or transmit electricity to lessees or tenants;

            (iii)  At the time that the lease agreement is signed, the rate charged to the lessee or tenant for the power generated by the renewable energy system shall be no greater than the effective rate charged per kilowatt hour from the applicable electric utility schedule filed with the public utilities commission;

             (iv)  The rate schedule or formula shall be established for the duration of the lease, and the lease agreement entered into by the lessee or tenant shall reflect [such] the rate schedule or formula;

              (v)  The lease agreement shall not abrogate any terms or conditions of applicable tariffs for termination of services for nonpayment of electric utility services or rules regarding health, safety, and welfare;

             (vi)  The lease agreement shall disclose:  (1) the rate schedule or formula for the duration of the lease agreement; (2) that, at the time that the lease agreement is signed, the rate charged to the lessee or tenant for the power generated by the renewable energy system shall be no greater than the effective rate charged per kilowatt hour from the applicable electric utility schedule filed with the public utilities commission; (3) that the lease agreement shall not abrogate any terms or conditions of applicable tariffs for termination of services for nonpayment of electric utility services or rules regarding health, safety, and welfare; and (4) whether the lease is contingent upon the purchase of electricity from the renewable energy system; provided further that any disputes concerning the requirements of this provision shall be resolved pursuant to the provisions of the lease agreement or chapter 521, if applicable; and

            (vii)  Nothing in this section shall be construed to permit wheeling.

     If the application of this chapter is ordered by the commission in any case provided in paragraph (2)(C), (D), (H), and (I), the business of any public utility that presents evidence of bona fide operation on the date of the commencement of the proceedings resulting in the order shall be presumed to be necessary to the public convenience and necessity, but any certificate issued under this proviso shall nevertheless be subject to terms and conditions as the public utilities commission may prescribe, as provided in [sections] section 269‑16.9 [and 269-20]."

     SECTION 12.  Section 271G-5, Hawaii Revised Statutes, is amended as follows:

     1.  By adding a new definition to be appropriately inserted and to read:

     ""Department" means the department of transportation."

     2.  By amending the definitions of "document" and "enforcement officer" to read:

     ""Document" includes any application, complaint, pleading, brief, answer, motion, memorandum, declaration, exhibit, certificate of service, and other papers filed by or with the [commission.] department.

     "Enforcement officer" means any person employed and authorized by the [commission] department to investigate any matter on behalf of the [commission.] department."

     3.  By repealing the definition of "commission".

     [""Commission" means the public utilities commission."]

     SECTION 13.  Section 271G-7, Hawaii Revised Statutes, is amended to read as follows:

     271G-7  General duties and powers of the [commission.] department.  The general duties and powers of the [public utilities commission] department shall be:

     (1)  To regulate water carriers, and to that end the [commission] department shall have and utilize [the investigative powers set forth in section 269-7 as well as] all of the duties and powers specifically enumerated in this chapter[, and water carriers shall be subject to the duties set forth in sections 269-8 and 269-9 as well as all of the duties specifically enumerated herein].

     (2)  To establish such just and reasonable classifications of water carriers as the special nature of the services performed by the carriers shall require, and such just and reasonable rules, regulations, and requirements, consistent with this chapter, to be observed by the carriers so classified or grouped, as the [commission] department deems necessary or desirable in the public interest.  [Such] The classifications, rules, regulations, and requirements shall be adopted and promulgated pursuant to the provisions of chapter 91 and shall have the force and effect of law.

     (3)  Upon complaint in writing to the [commission] department by any person or body politic, or upon its own initiative without complaint, the [commission] department may investigate whether any water carrier has failed to comply with any provision of this chapter, or with any rule or order adopted or issued hereunder.

     (4)  The [commission] department may investigate any person acting in the capacity of or engaging in the business of a water carrier within the State, without having a certificate of public convenience and necessity or other authority previously obtained under and in compliance with this chapter or the rules promulgated under this chapter."

     SECTION 14.  Section 286-271, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  This section shall not apply to:

     (1)  Any motor vehicle rental company as defined in section 431:9A-141 that periodically ships in quantities of ten vehicles or more;

     (2)  Licensed dealers who periodically ship in quantities of ten vehicles or more, or whose primary business is the auction of insurance salvage vehicles;

     (3)  Except for a lessee of a rental motor vehicle under paragraph (4), drivers of vehicles transported by any water carrier authorized by the [public utilities commission] department of transportation to transport vehicles interisland; provided that the driver presents identification, a current certificate of registration for the vehicle, and proof of motor vehicle insurance.  The interisland water carrier shall keep a record of transporting the vehicle by recording the vehicle identification number and retaining the information for three years after the date of travel; or

     (4)  A lessee of a rental motor vehicle; provided that:

          (A)  The rental motor vehicle is transported by any water carrier authorized by the [public utilities commission] department to transport vehicles interisland;

          (B)  The water carrier has a written agreement with the owner of the rental motor vehicle; and

          (C)  The water carrier records and retains the information required under subsections (d) and (f).

     For purposes of this subsection, "lessee" and "rental motor vehicle" have the same meanings as those terms are defined in section 437D-3."

     SECTION 15.  Section 269-20, Hawaii Revised Statutes, is repealed.

     ["§269-20  Certificates of public convenience and necessity for water carriers.  (a)  No person which holds itself out to the general public to engage in the transportation by water of passengers or property or any class or classes thereof for compensation, between points in the State of Hawaii, shall operate unless there is in force with respect to such carrier a certificate of public convenience and necessity issued by the commission authorizing such transportation; provided that this section shall not apply to any carrier by water to the extent that the carrier is excluded from the definition of a public utility under section 269-1(2)(E) and (F).

     (b)  Applications for certificates shall be made in writing under oath to the commission in such form as it requires.

     (c)  A certificate shall be issued to any qualified applicant therefor, authorizing the whole or any part of the operations covered by the application, if it is found that the applicant is fit, willing, and able properly to perform the service proposed and to conform to the provisions of this chapter and the requirements, rules and regulations of the commission thereunder, and that the proposed service, to the extent authorized by the certificate, is or will be required by the present or future public convenience and necessity; otherwise such application shall be denied.  Any certificate issued shall specify the service to be rendered and the routes and ports which the water carrier is to serve and there shall be attached to the exercise of the privileges granted by the certificate, at the time of issuance and from time to time thereafter, such reasonable conditions and limitations as the public convenience and necessity may require.

     (d)  The commission may at any time suspend, change or revoke such certificate in the manner provided in section 271‑19."]

     SECTION 16.  Section 269-26.6, Hawaii Revised Statutes, is repealed.

     ["[§269-26.6]  Preferential water carrier service rates for agricultural activities.  The public utilities commission may authorize preferential water carrier service rates by tariff for ratepayers that engage in agricultural activities.  The application process for obtaining preferential water carrier service rates by tariff may be established by the public utilities commission."]

PART III

     SECTION 17.  Sections 271-2, 271-8, 271-8.5, 271-9, 271-9.5 271-10, 271-11, 271-12, 271-13, 271-15, 271-16, 271-17, 271-19, 271-20, 271-21, 271-22, 271-23, 271-24, 271-25, 271-26, 271-26.5, 271-28, 271-29, 271-30, 271-31, 271-32, 271-33, 271-34, 271-35, 271G-3, 271G-7.5, 271G-8, 271G-9, 271G-10, 271G-12, 271G-13, 271G-14, 271G-15, 271G-16, 271G-17, 271G-17.5, 271G-18, 271G-19, 271G-20, 271G-21, 271G-22, 271G-23, 271G-23.5, 271G-24, and 271G-25, Hawaii Revised Statutes, are amended by substituting the term "department of transportation", "department", or similar term, wherever the term "public utilities commission", "commission", or similar term, appears, as the context requires.

     SECTION 18.  All rights, powers, functions, and duties of the public utilities commission are transferred to the department of transportation as it relates to the motor carrier law and water carrier act.

     All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act.

     No officer or employee of the State having tenure shall suffer any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act, and such officer or employee may be transferred or appointed to a civil service position without the necessity of examination; provided that the officer or employee possesses the minimum qualifications for the position to which transferred or appointed; and provided that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

     An officer or employee of the State who does not have tenure and who may be transferred or appointed to a civil service position as a consequence of this Act shall become a civil service employee without the loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefits or privileges and without the necessity of examination; provided that such officer or employee possesses the minimum qualifications for the position to which transferred or appointed.

     If an office or position held by an officer or employee having tenure is abolished, the officer or employee shall not thereby be separated from public employment, but shall remain in the employment of the State with the same pay and classification and shall be transferred to some other office or position for which the officer or employee is eligible under the personnel laws of the State as determined by the head of the department or the governor.

     SECTION 19.  All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the public utilities commission relating to the functions transferred to the department of transportation shall be transferred with the functions to which they relate.

     SECTION 20.  All rules, policies, procedures, guidelines, and other material adopted or developed by the public utilities commission to implement provisions of the Hawaii Revised Statutes that are made reenacted or applicable to the department of transportation by this Act shall remain in full force and effect until amended or repealed by the department of transportation pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the public utilities commission in those rules, policies, procedures, guidelines, and other material is amended to refer to the department of transportation, as appropriate.

     SECTION 21.  All deeds, leases, contracts, loans, agreements, permits, or other documents executed or entered into by or on behalf of the public utilities commission, pursuant to the provisions of the Hawaii Revised Statutes, that are reenacted or made applicable to the office of real estate operations by this Act shall remain in full force and effect. Upon effective date of this Act, every reference to the public utilities commission or the chairperson of the public utilities commission therein shall be construed as a reference of the department of transportation or the director of transportation, as appropriate.

     SECTION 22.  The public utilities commission shall transfer the total fund balance in the public utilities commission special fund collected pursuant to section 271-36, Hawaii Revised Statutes, as of September 15, 2025, and all encumbrances against that fund open and outstanding as of that date, to the state highway fund no later than one hundred eighty days after the effective date of this Act.

     SECTION 23.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the transfer of functions related to the motor carrier law and water carrier act to the department of transportation.

     The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

     SECTION 24.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 25.  This Act shall take effect on July 1, 2027; provided that section 23 shall take effect on July 1, 2025.

 

INTRODUCED BY:

_____________________________

 

 


 


 


 

Report Title:

PUC; DOT; Motor Carrier Law; Water Carrier Act; Transfer; Appropriations

 

Description:

Transfers the jurisdiction of the Motor Carrier Law from the Public Utilities Commission to the Department of Transportation.  Transfers the jurisdiction of the Water Carrier Act from the Public Utilities Commission to the Department of Transportation.  Makes conforming amendments.  Appropriates funds.  Effective 7/1/2027.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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