Motor Carriers

Specifies factors that the public utilities commission must
consider in whether to grant a certificate of public convenience
and necessity.  Makes unauthorized activity ground for denying
subsequent applications.  (SD2)

THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 271-12, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "271-12  Applications for certificates of public
 4 convenience and necessity.(a)  Except as otherwise provided in
 5 this section and in section 271-16, no person shall engage in the
 6 business of a common carrier by motor vehicle on any public
 7 highway in this State, unless there is in force with respect to
 8 [such] that carrier a certificate of public convenience and
 9 necessity issued by the public utilities commission authorizing
10 [such] that operation.
11      (b)  Applications for certificates shall be made in writing
12 to the commission, be verified under oath, and shall be in such
13 form and contain such information, and be accompanied by proof of
14 service upon interested parties as the commission [shall], by
15 [regulation,] rule, shall require.
16      (c)  Subject to section 271-15, a certificate shall be
17 issued to any qualified applicant therefor, authorizing the whole
18 or any part of the operations covered by the application if it is
19 found that the applicant is fit, willing, and able properly to

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 1 perform the service proposed and to conform to this chapter and
 2 the requirements[,] and rules[, and regulations] of the
 3 commission thereunder, and that the proposed service, to the
 4 extent to be authorized by the certificate, is or will be
 5 required by the present or future public convenience and
 6 necessity; otherwise the application shall be denied.
 7      (d)  Any certificate issued under this section covering the
 8 transportation of property shall be issued as an irregular route
 9 certificate and shall specify the island or islands or portion or
10 portions thereof within which service may be rendered.  Any
11 certificate covering the transportation of passengers shall
12 specify the service to be rendered and the routes over which, the
13 fixed termini, if any, between which, and the intermediate and
14 off-route points, if any, at which the motor carrier is
15 authorized to operate, and the certificate may include authority
16 to transport in the same vehicle with the passengers, baggage of
17 passengers, express, and also to transport baggage of passengers
18 in a separate vehicle.  There shall, at the time of issuance, and
19 from time to time thereafter, be attached to the exercise of the
20 privileges granted by the certificate such reasonable terms,
21 conditions, and limitations as the public convenience and
22 necessity may from time to time require, including [terms,]:
23      (1)  Terms, conditions, and limitations as to the extensions

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                                     S.B. NO.           S.D. 2

 1           of the service territory or route or routes of the
 2           carriers[,]; and [such]
 3      (2)  Such terms and conditions as are necessary to carry
 4           out, with respect to the operations of the carrier, the
 5           requirements established by the commission under
 6           sections 271-9(a)(1) and 271-9(a)(4)[,];
 7 provided that the terms, conditions, or limitations shall not
 8 restrict the right of the carrier to add to [his or its] the
 9 carrier's equipment and facilities in the service territory or
10 over the routes or between the termini as the development of
11 business and the demands of the public shall require.
12      (e)  Any common carrier by motor vehicle transporting
13 passengers under any [such] certificate of public convenience and
14 necessity may occasionally deviate from the route over which and
15 the fixed termini between which it is authorized to operate under
16 the certificate under such rules [and regulations] as the
17 commission may prescribe.
18      (f)  When determining whether the proposed service is or
19 will be required by the present or future public convenience and
20 necessity in a contested case, the commission shall in approving
21 a grant of a certificate of public convenience and necessity
22 consider, among other factors, and make findings of fact based
23 upon substantial evidence submitted on the record by the

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                                     S.B. NO.           S.D. 2

 1 applicant:
 2      (1)  The public interest in maintaining the health and
 3           stability of existing carriers;
 4      (2)  The adequacy of existing services;
 5      (3)  The proposed operation will be of beneficial value to
 6           the community; and
 7      (4)  The proposed operation is a necessity because of a lack
 8           of adequate existing facilities to presently serve the
 9           public, or insufficient facilities to meet anticipated
10           future demands for service.
11 Otherwise the application shall be denied.
12      (g)  If any person engages in motor carrier activity, either
13 on a trial or test basis or otherwise, with or without
14 compensation, but without prior written authority granted by the
15 commission to do so, the activity shall constitute prima facie
16 evidence of motor carrier activity undertaken to evade the
17 regulatory purposes of this chapter, and shall constitute grounds
18 for the commission to deny, for a period of two years, any
19 application for a certificate or permit made by the person
20 engaging in the activity."
21      SECTION 2.  Statutory material to be repealed is bracketed.
22 New statutory material is underscored.
23      SECTION 3.  This Act shall take effect upon its approval.