Bill Text: HI SB1427 | 2020 | Regular Session | Amended

Hawaii Senate Bill 1427 (Prior Session Legislation)

Bill Title: Relating To Transportation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2020-06-30 - The committee(s) on FIN recommend(s) that the measure be deferred. [SB1427 Detail]

Download: Hawaii-2020-SB1427-Amended.html

THE SENATE	S.B. NO.	1427
THIRTIETH LEGISLATURE, 2019		S.D. 1
STATE OF HAWAII		H.D. 1
		PROPOSED

A BILL FOR AN ACT

RELATING TO TRANSPORTATION.

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

SECTION 1. Chapter 271G, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§271G- Waivers. (a) Notwithstanding any provision of this chapter to the contrary, the commission, upon its own motion or upon the application of a water carrier or the consumer advocate and upon notice and hearing, may exempt the water carrier from any or all of the provisions of this chapter, upon a determination that the exemption is in the public interest. In determining whether an exemption is in the public interest, the commission shall consider whether the exemption will promote safe, adequate, economical, and efficient service among carriers; encourage the establishment and maintenance of reasonable rates and charges for transportation and related accessorial service without unjust discrimination, undue preference or advantage, or unfair or destructive competitive practices; and promote the development, coordination, and preservation of a sound transportation system by water.

(b) The commission may condition or limit any exemption as the commission deems necessary in the public interest. The commission may provide a trial period for any exemption and may terminate the exemption or continue it for a period and under any conditions and limitations as the commission deems appropriate.

(c) Upon the petition of a water carrier or the consumer advocate, or upon its own motion, the commission may rescind any exemption or waiver granted under this section if, after notice and hearing, it finds that:

(l) The conditions prompting the granting of the exemption or waiver no longer apply;

(2) The exemption or waiver is no longer in the public interest; or

(3) The water carrier has failed to comply with one or more of the conditions of the exemption or applicable statutory or regulatory requirements."

SECTION 2. Section 266-19, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is created in the treasury of the State the harbor special fund. All moneys received by the department of transportation from the rates, fees, fines, and administrative penalties pursuant to sections 266-17(a)(1), 266-25, 266-28, and 266-30 shall be paid into the harbor special fund. The harbor special fund and the second separate harbor special fund heretofore created shall be consolidated into the harbor special fund [~~at such time as~~] when there are no longer any revenue bonds payable from the second separate harbor special fund. The harbor reserve fund heretofore created is abolished.

All moneys derived pursuant to this chapter from harbor properties of the statewide system of harbors shall be paid into the harbor special fund and each fiscal year shall be appropriated, applied, or expended by the department of transportation for the statewide system of harbors for any purpose within the jurisdiction, powers, duties, and functions of the department of transportation related to the statewide system of harbors, including, without limitation[~~, the~~]:

(1) The following costs [~~of operation,~~], all or any of which in the judgment of the department of transportation are necessary to the performance of the department of transportation's duties or functions:

(A) Operation, maintenance, and repair of the statewide system of harbors and reserves therefor[,]; and [~~acquisitions (~~]

(B) Acquisitions, including acquisitions of real property and any interests therein[),]; constructions[,]; additions[,]; expansions[,]; improvements[,]; renewals[,]; replacements[,]; reconstruction[,]; engineering[,]; investigation[,]; and planning[,] for the statewide system of harbors[~~, all or any of which in the judgment of the department of transportation are necessary to the performance of its duties or functions.~~]; and

(2) Any loans, provided to water carriers engaged in the transportation of property, to address the impacts of the coronavirus disease 2019 pandemic and offset costs incurred by the water carriers as a result of providing transportation services to ports within the State."

SECTION 3. (a) For a period beginning on January 1, 2021, and ending on December 31, 2021, the department of transportation may use the harbor special fund to provide loans in an amount not to exceed $3,000,000 per month to water carriers to address the impacts of the coronavirus disease 2019 pandemic and offset costs incurred by the water carriers as a result of providing transportation services to ports within the State; provided that the aggregate amount of all loans provided pursuant to this section shall not exceed $20,000,000 in any twelve-month period; provided further that the department of transportation shall only provide loans to a water carrier that, between the effective date of this Act and December 30, 2020, has received a combined total of $10,000,000 in funding from one or more of the counties.

(b) The department of transportation shall require all loan recipients to repay to the department of transportation the entire amount of the loans plus a reasonable rate of interest; provided that the department of transportation may negotiate the terms of the loan repayment plan with the applicable loan recipient.

(c) The department of transportation may enter into a contract by direct negotiation with an applicable water carrier for the purposes of this Act.

(d) Notwithstanding any order by the public utilities commission, the department of transportation shall include in any contract entered into pursuant to subsection (c), provisions requiring that, between July 1, 2020, and December 31, 2021, the water carrier:

(1) Maintains the same number of port calls in effect as of January 1, 2020;

(2) Continues to transport less than container load shipments to or from the islands of Lanai and Molokai; and

(3) Negotiates in good faith with agriculture or livestock entities or businesses to set standards for the interisland shipment of livestock.

(e) No funds provided by the department of transportation to any water carrier pursuant to this Act shall be used for the following purposes:

(1) As payment in any form or nature to any parent company of the water carrier or affiliate of any parent company of the water carrier;

(2) As profits for the water carrier, any parent company of the water carrier, or any affiliate of any parent company of the water carrier;

(3) As repayment of any loan, bond, or other form of indebtedness of any parent company of the water carrier or affiliate of any parent company of the water carrier;

(4) As payment for any capital expenditure made by the parent company of the water carrier for assets held by the water carrier; or

(5) As payment for executive bonuses; any advertising or marketing except customer and employee communications; club or membership dues; charitable or political contributions; business travel; seminars, conferences, or conventions; entertainment expenses; or any other non-operating expenses.

(f) As used in this Act, "water carrier" shall mean any water carrier engaging in the transportation of property and holding a certificate of public convenience pursuant to chapter 271G, Hawaii Revised Statutes.

SECTION 4. Notwithstanding any law to the contrary, and to the extent applicable, any authority granted to the public utilities commission pursuant to chapters 269 and 271G, Hawaii Revised Statutes, to establish and revise the rates, fares, and charges charged by a water carrier engaging in the transportation of property is hereby transferred to the department of transportation; provided that:

(1) This section shall not affect the authority of the public utilities commission to render any decision regarding a water carrier that is pending as of the effective date of this Act;

(2) The department of transportation may base any ratemaking decisions on annual freight rate adjustment recommendations; and

(3) Any authority transferred to the department of transportation pursuant to this section shall revert back to the public utilities commission on December 31, 2021.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval; provided that section 2 shall be repealed on December 31, 2021, and section 266-19, Hawaii Revised Statutes, shall be reenacted in the form in which it read on the day prior to the effective date of this Act.

Report Title:

DOT; PUC; Loans; Water Carriers; Harbor Special Fund

Description:

Authorizes the Public Utilities Commission to exempt a water carrier from any or all the provisions of the Hawaii Water Carrier Act if the exemption is in the public interest. Authorizes the use of moneys in the Harbor Special Fund for loans provided to certain water carriers to address the impacts of the coronavirus 2019 disease pandemic and offset certain costs incurred by the water carriers. Authorizes the Department of Transportation to provide loans to water carriers who meet certain conditions. Temporarily transfers to the Department of Transportation the Public Utilities Commission's ratemaking authority for water carriers engaged in the transportation of property. (SB1427 HD1 PROPOSED)

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