STAND. COM. REP. NO. 26-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 1776
                                     




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. 1776 entitled: 

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

begs leave to report as follows:

     The purpose of this bill is to specify evidence which the
Public Utilities Commission (PUC) must consider before granting a
certificate of public convenience and necessity, and to assure
that carrier service does not begin prior to approval.

     Your Committee finds that applicants for certificates of
convenience and necessity have not been provided sufficient
guidelines by the PUC.  Your Committee further finds that
carriers may begin an activity prior to approval by the PUC,
anticipating that its reason for applying will be acceptable to
the PUC.

     This bill proposes specific requirements taken from Hawaii
case law which the applicant must follow, prior to action by the
PUC.  The bill also proposes that carriers, who begin operation
prior to approval, will be penalized by denying such applications
for a period of two years.

     Testimony in support of this measure was received on behalf
of a motor carrier.  Testimonies in opposition were heard from
the PUC and from a motor carrier.


 
 
 
                                 STAND. COM. REP. NO. 26-00
                                 Page 2

 
     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.
1776 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