Report Title:

Transportation Carrier Commission; Creation

 

Description:

Establishes a transportation carrier commission to regulate water and motor carriers.  Removes such carriers from the jurisdiction of the public utilities commission.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1225

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO rEGULATION.

 

 

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

 


     SECTION 1.  The purpose of this Act is to address the regulation of water and motor carriers.  More specifically, this Act:

     (1)  Creates a transportation carrier commission to regulate water and motor carriers; and

     (2)  Removes these carriers from the jurisdiction of the public utilities commission.

     The legislature finds that the main objective of this Act is to enable the public utilities commission to place more focus on energy utility regulatory and renewable energy programs.

     SECTION 2.  The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

TRANSPORTATION CARRIER COMMISSION

     §   -1  Definitions.  For the purpose of this chapter:

     "Commission" means the transportation carrier commission.

     "Motor carrier" means a motor carrier subject to regulation under chapter 271.

     "Water carrier" means a water carrier subject to regulation under chapter 271G.

     §   -2  Transportation carrier commission; number; appointment of commissioners; qualifications; compensation; persons having interest in carriers.  (a)  There shall be a transportation carrier commission consisting of three members, to be called commissioners, who shall be appointed in the manner prescribed in section 26-34, except as otherwise provided in this section.  All members shall be appointed for terms of six years each, except that the terms of the members first appointed shall be for two, four, and six years, respectively, as designated by the governor at the time of appointment.  The governor shall designate a member to be chairperson of the commission.  Each member shall hold office until the member's successor is appointed and qualified.  Section 26-34 shall not apply insofar as it relates to the number of terms and consecutive number of years a member may serve on the commission; provided that no member shall serve more than twelve consecutive years.

     In appointing commissioners, the governor shall select persons who have had experience in accounting, business, engineering, government, finance, law, or other similar fields.  The commissioners shall devote full time to their duties as members of the commission and no commissioner shall hold any other public office or other employment during the commissioner's term of office.  No person owning any stock or bonds of any water or motor carrier or having any interest in or deriving any remuneration from any such carrier shall be appointed a commissioner.

     (b)  The chairperson of the commission shall be paid a salary set at eighty-seven per cent of the salary of the director of human resources development, and each of the other commissioners shall be paid a salary equal to ninety-five per cent of the chairperson's salary.  The commissioners shall be exempt from chapters 76 and 89 but shall be members of the state employees retirement system and shall be eligible to receive the benefits of any state or federal employee benefit program generally applicable to officers and employees of the State, including those under chapter 87A.

     (c)  The commission is placed within the department of budget and finance for administrative purposes.

     §   -3  Employment of assistants.  (a)  The chairperson of the transportation carrier commission may appoint and employ clerks, stenographers, agents, engineers, accountants, and other assistants for the commission as the chairperson finds necessary for the performance of the commission's functions and define their powers and duties.  The chairperson may appoint and, at pleasure, dismiss a chief administrator and hearings officers as may be necessary.  Notwithstanding section 103D-209, the chairperson shall appoint one or more attorneys independent of the attorney general who shall act as attorneys for the commission and define their powers and duties and fix their compensation.  Administrators, analysts, research assistants, economists, legal secretaries, legal assistants, and enforcement officers may be appointed with or without regard to chapter 76.  Other employees shall be appointed as may be needed by the chairperson in accordance with chapter 76.

     (b)  Notwithstanding section 91-13, the commission may consult with its staff appointed under authority of this section in any contested case or agency hearing concerning any issue of facts.  Neither the commission nor any of its staff, in a proceeding, shall consult with any other person or party, except upon notice and an opportunity for all parties to participate, except to the extent required for the disposition of ex parte matters authorized by law.

     §   -4  Annual report.  The transportation carrier commission shall prepare and present to the governor in January of each year, through the director of finance, a report regarding its actions during the preceding fiscal year.  This report shall include:

     (1)  Summary information and analytical, comparative, and trend data concerning major regulatory issues acted upon and pending before the commission;

     (2)  Environmental matters having a significant impact upon carriers;

     (3)  Actions of the federal government affecting the regulation of carriers in Hawaii;

     (4)  Long- and short-range plans and objectives of the commission; and

     (5)  The commission's recommendations regarding legislation and other matters requiring executive and legislative consideration.

Copies of the annual reports shall be furnished by the governor to the legislature.

     §   -5  Investigative powers.  (a)  The transportation carrier commission and each commissioner shall have power to examine:

     (1)  The condition of each water or motor carrier;

     (2)  How a carrier operates with respect to the safety or accommodation of the public;

     (3)  The safety, working hours, and wages of the carrier's employees;

     (4)  A carrier's fares and rates;

     (5)  The value of a carrier's physical property;

     (6)  A carrier's issuance of stocks and bonds and the disposition of proceeds;

     (7)  The amount and disposition of a carrier's income;

     (8)  All of a carrier's financial transactions;

     (9)  A carrier's business relations with other persons, companies, or corporations;

    (10)  A carrier's compliance with all applicable state and federal laws and with the provisions of its franchise, charter, and articles of association, if any;

    (11)  A carrier's classifications, rules, regulations, practices, and service; and

    (12)  All matters of every nature affecting the relations and transactions between a carrier and the public, persons, or corporations.

     (b)  The commission may investigate any person acting in the capacity of or engaging in the business of a water or motor carrier within the State, who does not have a certificate of public convenience and necessity or other authority previously obtained under and in compliance with this chapter or the rules adopted under this chapter.

     (c)  Any investigation may be made by the commission on its own motion, and shall be made when requested by a water or motor carrier to be investigated, or by any person upon a sworn written complaint to the commission, setting forth any prima facie cause of complaint.  A majority of the commission shall constitute a quorum.

     §   -6  Notice.  Whenever an investigation is undertaken by the transportation carrier commission, reasonable notice in writing of the investigation and of the subject or subjects to be investigated shall be given to the carrier or the person concerned, and when based upon complaints made to it as prescribed in section    -5, a copy of the complaint, and a notice in writing of the date and place fixed by the commission for beginning the investigation, shall be served upon the carrier or the person concerned, or other respondent and the complainant not less than two weeks before the date designated for the hearing.

     §   -7  Commission may institute proceedings to enforce chapter.  (a)  If the transportation carrier commission believes that:

     (1)  Any carrier or person is violating or neglecting to comply with any provision of this chapter, chapter 271, or chapter 271G or any rule, order, or other requirement of the commission, or of any provisions of its franchise, charter, or articles of association, if any;

     (2)  Changes, additions, extensions, or repairs are desirable in its plant or service to meet the reasonable convenience or necessity of the public or to insure greater safety or security;

     (3)  Any rates, fares, classifications, charges, or rules are unreasonable or unreasonably discriminatory; or

     (4)  A carrier is violating this chapter by commission or omission of an act,

the commission shall notify the carrier or person in writing and may institute any proceedings before it that may be necessary to require the carrier or person to correct any deficiency.  Upon notice, the commission may direct the director of commerce and consumer affairs to appear in any proceeding and carry out the purposes of this section.  The commission may examine any of the matters referred to in this section, notwithstanding that the matter may be within the jurisdiction of any court or other body; provided that this section shall not be construed in any manner to limit or otherwise affect the jurisdiction of any court or other body.

     (b)  In addition to any other remedy available, the commission or its enforcement officer may issue citations to any person acting in the capacity of or engaging in the business of a water or 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 rules as follows:

     (1)  The citation may contain an order of abatement and an assessment of civil penalties as provided in chapter 271 or 271G, as applicable.  All penalties collected under this subsection shall be deposited into the transportation carrier commission special fund.  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 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 timely notifies the commission of the request for a hearing, the commission shall afford an opportunity for a hearing under chapter 91.  The hearing shall be conducted by the commission or the commission 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 for a hearing within twenty days from the receipt of the citation, the citation shall be deemed a final order of the commission.  The commission may apply to the appropriate court for a judgment to enforce the provisions of any final order issued by the commission or designated hearings officer pursuant to this subsection, including the provisions for abatement and civil penalties imposed.  In any proceeding to enforce the provisions of the final order of the commission or designated hearings officer, the commission need only show that the notice was given, a hearing was held, or the time granted for requesting the hearing has run without such a request, and a certified copy of the final order of the commission or designated hearings officer;

     (4)  If any party is aggrieved by the decision of the commission or the designated hearings officer, the party may appeal to the intermediate appellate court, subject to chapter 602, in the manner provided for civil appeals from the circuit court; 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 in any other applicable law.

The commission may adopt rules in accordance with chapter 91 as may be necessary to fully effectuate this subsection.

     §   -8  Appeals.  An appeal from an order of the transportation carrier commission under this chapter shall lie, subject to chapter 602, in the manner provided for civil appeals from the circuit courts.  Only a person aggrieved in a contested case proceeding provided for in this chapter may appeal from the order if the order is final, or if preliminary, is of the nature defined by section 91-14(a).  The commission may elect to be a party to all matters from which an order of the commission is appealed, and the commission may file appropriate responsive briefs or pleadings in the appeal; provided that where there was no adverse party in the case below, or in cases where there is no adverse party to the appeal, the commission shall be a party to all matters in which an order of the commission is appealed and shall file the appropriate responsive briefs or pleadings in defending all such orders.  The appearance of the commission as a party in appellate proceedings in no way limits the participation of persons otherwise qualified to be parties on appeal.  The appeal shall not of itself stay the operation of the order appealed from, but the appellate court may stay the order after a hearing upon a motion therefor and may impose conditions it deems proper, including but not limited to requiring a bond, requiring that accounts be kept, or requiring that other measures be taken as ordered to secure restitution of the excess charges, if any, made during the pendency of the appeal, in case the order appealed from is sustained, reversed, or modified in whole or in part.

     §   -9  Alternative dispute resolution.  The commission may require the parties in any matter before the commission to participate in nonbinding arbitration, mediation, or other alternative dispute resolution process prior to the hearing.     §   -10  Relations with an affiliated interest; definition; contracts with affiliates filed and subject to commission action.  (a)  For purposes of this section, "affiliated interests" with a water or motor carrier includes the following:

     (1)  Every person owning or holding, directly or indirectly, ten per cent or more of the voting securities of a carrier, and every person having ownership of ten per cent or more of voting securities of a person owning ten per cent or more of the voting securities of a carrier;

     (2)  Every corporation, ten per cent or more of whose voting securities is owned by any person owning ten per cent or more of the voting securities of a carrier;

     (3)  Every person who is an officer or director of a carrier; and

     (4)  Every corporation operating a carrier or providing engineering, accounting, legal, or similar service to carriers, that has three or more officers or three or more directors in common with another carrier, and every other corporation that has directors in common with a carrier where the number of common directors is more than one-third of the total number of the carrier's directors.

     (b)  The purpose of this section is to encourage motor and water carriers to obtain their services, supplies, and equipment by relying, to the extent practicable, on competitive procurement practices; provided that when companies obtain their services, supplies, and equipment from affiliated interests, the contracts and agreements between the carrier and its affiliates shall be shown by clear and convincing evidence to be in furtherance of the interests of the public.

     (c)  No contract or agreement providing for the furnishing of management, supervisory, construction, engineering, accounting, legal, financial, or similar services, and no contract or agreement for the purchase, sale, lease, furnishing, or exchange of any real or personal property rights, including but not limited to real estate, improvements on land, equipment, leasehold interests, easements, rights-of-way, franchises, licenses, permits, trademarks, and copyrights, made or entered into after July 1, 2010, between a carrier and any affiliated interest shall be valid or effective unless and until the contract or agreement has been received by the commission.  It shall be the duty of every carrier to file with the commission a verified copy of any contract or agreement with an affiliate having a face value of at least $300,000, or a verified summary of any unwritten contract or agreement having a face value of at least $300,000, within forty-five days of the effective date of the contract or agreement.  Each contract or agreement between a carrier and an affiliate for capital expenditures other than for real property or an interest therein, shall be accompanied by price quotations provided by at least two nonaffiliated suppliers, providers, or purveyors, or if the price quotations cannot be obtained without substantial expense to the carrier, the carrier shall verify that fact by affidavit; provided that:

     (1)  All contracts or agreements effective at the time of a general rate proceeding that were discoverable and subject to review by the commission shall be valid and not subject to subsequent regulatory review and action by the commission; and

     (2)  Notwithstanding any other provision to the contrary, there shall be no transfer of real property, or interest in real property, between a carrier and an affiliate without prior approval of the commission, after hearing, wherein the carrier shall show that the transfer is in the best interest of the carrier and all of its customers.

     No affirmative action shall be required by the commission in regards to the filing of the contract or agreement; provided, however, that if the commission, in its discretion, determines that the terms and conditions of the contract or agreement are unreasonable or otherwise contrary to the public interest, the commission shall notify the carrier of its determination, whereupon the carrier shall have the option to alter, revise, amend, or terminate the contract or agreement, or assume the risk that future payments for performance of the contract or agreement may be deemed unreasonable and excluded by the commission for ratemaking purposes.

     (d)  In any proceeding, whether upon the commission's own motion or upon application or complaint, involving the rates or practices of any carrier, the commission may exclude from the accounts of the carrier any payment or compensation to an affiliated interest for any services rendered or property or service furnished, as described in this section, under existing contracts or agreements with the affiliated interest unless the carrier shall establish by clear and convincing evidence the reasonableness of the payment or compensation.

     (e)  The commission shall have continuing supervisory control over the terms and conditions of the contracts and agreements so far as necessary to protect and promote the public interest.  The commission shall have the same jurisdiction over modifications of or amendments to contracts or agreements as it has over original contracts or agreements.  The fact that the carrier may have entered into contracts or agreements without submittal of documents to the commission shall not preclude disallowance or disapproval of payments made pursuant thereto, for ratemaking purposes if, upon actual experience under the contracts or agreements, it appears that the payments provided for or made are or were unreasonable.  Every contract or agreement shall be expressly conditioned upon the reserved power of the commission to take appropriate ratemaking actions if, and as necessary, subsequent to submittal of the contract or agreement in order to protect and promote the public interest.

     (f)  Whenever the commission discovers that any carrier is giving effect to any contract or agreement without the contract or agreement having been received by the commission for review, as required by this section, the commission shall issue an order to the carrier to show cause why the carrier should not cease making any payments or otherwise giving any effect to the terms of the contract or agreement, and the carrier shall have the opportunity to show with clear and convincing evidence that the contract or agreement is in the best interest of the carrier and all of its customers.

     (g)  This section shall not apply to transactions with affiliated interests where the total consideration involved in a transaction is less than $300,000 for any calendar year; provided that:

     (1)  Multiple payments under any contract or agreement shall be added together for purposes of construing this provision; and

     (2)  This section shall apply to any contract or agreement structured specifically to avoid regulation under this section.

     §   -11  Penalty.  (a)  Any carrier violating, neglecting, or failing in any way to conform to or comply with this chapter, chapter 271, or chapter 271G, or any lawful order of the commission shall be subject to a civil penalty not to exceed $25,000 for each day the violation, neglect, or failure continues, to be assessed by the commission after a hearing in accordance with chapter 91.  The commission may order the carrier to cease carrying on its business while the violation, neglect, or failure continues.

     (b)  Notwithstanding subsection (a), any person acting in the capacity of or engaging in the business of a carrier in the State without having a certificate of public convenience and necessity or other authority previously obtained under and in compliance with this chapter, chapter 271 or 271G, or their implementing rules, may be subject to a civil penalty not to exceed $5,000 for each offense and, in the case of a continuing violation, $5,000 for each day that uncertificated activity continues.

     (c)  Upon written application filed within fifteen days after service of an order imposing a civil penalty pursuant to this section, the commission may remit or mitigate the penalty upon any terms that it deems proper.

     (d)  If any civil penalty imposed pursuant to this section is not paid within the period that the commission may direct, the attorney general shall institute a civil action for recovery in circuit court.

     §   -12  Perjury.  Any person who wilfully and knowingly makes under oath any false statement in connection with any investigation by or proceeding before the commission shall be guilty of perjury and, upon conviction, shall be subject to the penalty prescribed by law for the offense.

     §   -13  Transportation carrier commission special fund.  (a)  There is established within the state treasury a transportation carrier commission special fund to be administered by the transportation carrier commission.  The proceeds of the fund shall be used by the commission and the division of consumer advocacy of the department of commerce and consumer affairs for all expenses incurred in the administration of this chapter and chapters 271 and 271G; provided that the expenditures of the 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 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 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 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 transportation carrier commission special fund including but not limited to all moneys received and collected by the commission pursuant to sections 92-21, 269E-6, 269E-14, 271-27, 271-36, 271G-19, and 607-5.

     (c)  The commission shall submit a report to the legislature detailing all funds received and all moneys disbursed out of the fund prior to the convening of each regular session.

     (d)  All money in excess of $1,000,000 remaining on balance in the transportation carrier commission special fund on June 30 of each year shall lapse to the credit of the state general fund.

     §   -14  Consumer advocate.  The consumer advocate designated under chapter 269, part II, shall represent, protect, and advance the interests of all consumers, including small businesses, of carrier services.  The consumer advocate shall not receive any salary in addition to the salary received as director of commerce and consumer affairs for the purposes of this chapter.

     The responsibility of the consumer advocate for advocating the interests of the consumer of carrier services shall be separate and distinct from the responsibilities of the transportation carrier commission and those assistants employed by the commission.  The consumer advocate shall have full rights to participate as a party in interest in all proceedings before the commission.

     The consumer advocate shall have the same powers and duties over the transportation carrier commission and regulated carriers as the consumer advocate has over the public utilities commission and public utilities under chapter 269, part II, and any other applicable law."

     SECTION 3.  Chapter 271G, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§271G-__  Bills of lading, shipping documents.  The commission may prescribe for water carriers the form and content of all bills of lading, freight bills, receipts, or other shipping documents governing the movement of traffic by water carriers regulated under this chapter, and may prescribe the length of time the same shall be preserved."

     SECTION 4.  Section 26-8, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  The employees retirement system as constituted by chapter 88 is placed within the department of budget and finance for administrative purposes.  The functions, duties, and powers, subject to the administrative control of the director of finance, and the composition of the board of trustees of the employees retirement system shall be as heretofore provided by law.

     The public utilities commission [is] and the transportation carrier commission shall be placed within the department of budget and finance for administrative purposes only."

     SECTION 5.  Section 28-8.3, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (a) to read:

     "(a)  No department of the State other than the attorney general may employ or retain any attorney, by contract or otherwise, for the purpose of representing the State or the department in any litigation, rendering legal counsel to the department, or drafting legal documents for the department; provided that the foregoing provision shall not apply to the employment or retention of attorneys:

     (1)  By the public utilities commission, the transportation carrier commission, the labor and industrial relations appeals board, and the Hawaii labor relations board;

     (2)  By any court or judicial or legislative office of the State; provided that if the attorney general is requested to provide representation to a court or judicial office by the chief justice or the chief justice's designee, or to a legislative office by the speaker of the house of representatives and the president of the senate jointly, and the attorney general declines to provide such representation on the grounds of conflict of interest, the attorney general shall retain an attorney for the court, judicial, or legislative office, subject to approval by the court, judicial, or legislative office;

     (3)  By the legislative reference bureau;

     (4)  By any compilation commission that may be constituted from time to time;

     (5)  By the real estate commission for any action involving the real estate recovery fund;

     (6)  By the contractors license board for any action involving the contractors recovery fund;

     (7)  By the trustees for any action involving the travel agency recovery fund;

     (8)  By the office of Hawaiian affairs;

     (9)  By the department of commerce and consumer affairs for the enforcement of violations of chapters 480 and 485A;

    (10)  As grand jury counsel;

    (11)  By the Hawaiian home lands trust individual claims review panel;

    (12)  By the Hawaii health systems corporation, or its regional system boards, or any of their facilities;

    (13)  By the auditor;

    (14)  By the office of ombudsman;

    (15)  By the insurance division;

    (16)  By the University of Hawaii;

    (17)  By the Kahoolawe island reserve commission;

    (18)  By the division of consumer advocacy;

    (19)  By the office of elections;

    (20)  By the campaign spending commission;

    (21)  By the Hawaii tourism authority, as provided in section 201B-2.5; or

    (22)  By a department, in the event the attorney general, for reasons deemed by the attorney general good and sufficient, declines to employ or retain an attorney for a department; provided that the governor thereupon waives the provision of this section."

      2.  By amending subsection (c) to read:

     "(c)  Every attorney employed by any department on a full-time basis, except an attorney employed by the public utilities commission, the transportation carrier commission, the labor and industrial relations appeals board, the Hawaii labor relations board, the office of Hawaiian affairs, the Hawaii health systems corporation or its regional system boards, the department of commerce and consumer affairs in prosecution of consumer complaints, insurance division, the division of consumer advocacy, the University of Hawaii, the Hawaii tourism authority as provided in section 201B-2.5, the Hawaiian home lands trust individual claims review panel, or as grand jury counsel, shall be a deputy attorney general."

     SECTION 6.  Section 51-1, Hawaii Revised Statutes, is amended to read as follows:

     "§51-1  Grant of powers.  Every county of this State may acquire, condemn, purchase, lease, construct, extend, own, maintain, and operate mass transit systems, including[, without being] but not limited to[,] motor buses, street railroads, fixed rail facilities such as monorails or subways, whether surface, subsurface, or elevated, taxis, and other forms of transportation for hire for passengers and their personal baggage.

     Every county shall have power to provide mass transportation service, whether directly, jointly, or under contract with private parties, without the county or private parties being subject to the jurisdiction and control of the [public utilities] transportation carrier commission in any manner.

     The terms "mass transit" and "mass transportation" mean transportation by bus, or rail or other conveyance, either publicly or privately owned, which provides to the public general or special service (but not including school buses or charter or sightseeing service) on a regular and continuing basis."

     SECTION 7.  Section 92-21, Hawaii Revised Statutes, is amended to read as follows:

     "§92-21  Copies of records; other costs and fees.  Except as otherwise provided by law, a copy of any government record, including any map, plan, diagram, photograph, photostat, or geographic information system digital data file, which is open to the inspection of the public, shall be furnished to any person applying for the same by the public officer having charge or control thereof upon the payment of the reasonable cost of reproducing such copy.  Except as provided in section 91-2.5, the cost of reproducing any government record, except geographic information system digital data, shall not be less than 5 cents per page, sheet, or fraction thereof.  The cost of reproducing geographic information system digital data shall be in accordance with rules adopted by the agency having charge or control of that data.  Such reproduction cost shall include but shall not be limited to labor cost for search and actual time for reproducing, material cost, including electricity cost, equipment cost, including rental cost, cost for certification, and other related costs.  All fees shall be paid in by the public officer receiving or collecting the same to the state director of finance, the county director of finance, or to the agency or department by which the officer is employed, as government realizations; provided that fees collected by the public utilities commission and transportation carrier commission pursuant to this section shall be deposited in the public utilities commission special fund established under section 269-33[.] and transportation carrier commission special fund established under section    -13, as applicable."

     SECTION 8.  Section 239-5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There shall be levied and assessed upon each public utility[, except airlines, motor carriers, common carriers by water, and contract carriers taxed by section 239-6,] a tax of such rate per cent of its gross income each year from its public utility business as shall be determined in the manner hereinafter provided.  The tax imposed by this section is in lieu of all taxes other than those below set out, and is a means of taxing the personal property of the public utility, tangible and intangible, including going concern value.  In addition to the tax imposed by this chapter there also are imposed income taxes, the specific taxes imposed by chapter 249, the fees prescribed by chapter 269, any tax specifically imposed by the terms of the public utility's franchise or under chapter 240, the use or consumption tax imposed by chapter 238, and employment taxes.

     The rate of the tax upon the gross income of the public utility shall be four per cent; provided that if:

     (1)  A county provides by ordinance for a real property tax exemption for real property used by a public utility in its public utility business and owned by the public utility (or leased to it by a lease under which the public utility is required to pay the taxes upon the property), and

     (2)  The county has not denied the exemption to the public utility, but excluding a denial based upon a dispute as to the ownership, lease, or use of a specific parcel of real property,

then there shall be levied and assessed a tax in excess of the four per cent rate determined in the manner hereinafter provided upon the gross income allocable to such county.  The revenues generated from the tax in excess of the four per cent rate hereinbefore established shall be paid by the public utility directly to such county based upon the proportion of gross income from its public utility business attributable to such county, based upon the allocation made in the public utility's filings with the State of Hawaii; provided that if the gross income from the public utility business attributable to such county is not so allocated in the public utility's [State] state filings, then the gross income from the public utility business shall be equitably allocated to each county.  The relative number of access lines in each county shall be deemed an acceptable basis of equitable allocation for telecommunication companies.

     The rate of the tax in excess of the four per cent rate hereinbefore established upon the gross income from the public utility business shall be determined as follows:

     If the ratio of the net income of the company to its gross income is fifteen per cent or less, the rate of tax in excess of the four per cent rate on gross income shall be 1.885 per cent; for all companies having net income in excess of fifteen per cent of the gross, the rate of the tax on gross income shall increase continuously in proportion to the increase in ratio of net income to gross, at such rate that for each increase of one per cent in the ratio of net income to gross, there shall be an increase of .2675 per cent in the rate of the tax.

     The following formula may be used to determine the rate, in which formula the term "R" is the ratio of net income to gross income, and "X" is the required rate of the tax on gross income for the utility in question:

X = (26.75R-2.1275)%;

provided that in no case governed by the formula shall "X" be less than 1.885 per cent or more than 4.2 per cent.

     However, if the gross income is apportioned under section 239-8(b) or (c), there shall be no adjustment of the rate of tax on the amount of gross income so apportioned to the State on account of the ratio of the net income to the gross income being in excess of fifteen per cent, and it shall be assumed in such case that the ratio is fifteen per cent or less."

     SECTION 9.  Section 269-1, Hawaii Revised Statutes, is amended as follows:

     1.  By amending the definition of "enforcement officer" to read:

     ""Enforcement officer" means any person employed and authorized by the public utilities commission to investigate any matter on behalf of the commission.  [The term also means a motor vehicle safety officer employed and assigned, pursuant to section 271-38, by the department of transportation to enforce sections 271-8, 271-12, 271-13, 271-19, and 271-29 through assessment of civil penalties as provided in section 271-27(h), (i), and (j).]"

     2.  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, or] the conveyance or transmission of telecommunications messages, or the furnishing of facilities for the transmission of intelligence by electricity by land or water or air within the State, or between points within the State, or for the production, conveyance, transmission, delivery, or furnishing of light, power, heat, cold, water, gas, or oil, or for [the storage or warehousing of goods, or] the disposal of sewage; provided that the term shall include:

          (A)  Any person insofar as that person owns or operates a private sewer company or sewer facility; and

          (B)  Any telecommunications carrier or telecommunications common carrier;

     (2)  Shall not include:

         (A)  Any person insofar as that person owns or operates an aerial transportation enterprise;

          (B)  Persons owning or operating taxicabs, as defined in this section;

          (C)  [Common] Water or motor carriers [transporting only freight on the public highways, unless operating within localities or along routes or between points that the public utilities commission finds to be inadequately serviced without regulation under this chapter;] subject to chapter 271 or 271G;

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

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

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

          (G)] (E)  Any person who:

              (i)  Controls, operates, or manages plants or facilities for the production, transmission, or furnishing of power primarily or entirely from nonfossil fuel sources; and

             (ii)  Provides, sells, or transmits all of that power, except such power as is used in its own internal operations, directly to a public utility for transmission to the public;

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

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

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

              (i)  The services of the facility shall be 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 which has entered into the service contract;

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

            (iii)  The facility shall 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" mean treated wastewater that by design is intended or used for a beneficial purpose; and

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

       [(K)(I)  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.

     If the application of this chapter is ordered by the commission in any case provided in paragraphs [(2)(C),] (2)(D), [(2)(H), and (2)(I),] (2)(F), and (2)(G), 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 public convenience and necessity, but any certificate issued under this proviso shall nevertheless be subject to such terms and conditions as the commission may prescribe, as provided in sections 269-16.9 and 269-20."

     SECTION 10.  Section 269-19.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The purpose of this section is to encourage companies providing essential utility [and regulated transport] service to Hawaii consumers to obtain their services, supplies, and equipment by relying, to the extent practicable, on competitive procurement practices; provided that when companies obtain their services, supplies, and equipment from affiliated interests, the contracts and agreements between the regulated entity and its affiliates must be shown by clear and convincing evidence to be in furtherance of the interests of the public."

     SECTION 11.  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; 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, 269-28, 269-30, [271-27, 271-36, 271G-19,] 269E-6, 269E-14, and 607-5."

     SECTION 12.  Section 271-2, Hawaii Revised Statutes, is amended to read as follows:

     "§271-2  Administration; governing provisions of other acts.  This chapter shall be administered by the [public utilities] transportation carrier commission of the State, and the provisions of this chapter and of chapter [269,]      that are not inconsistent with this chapter[,] shall govern its administration[; provided that sections 269-4, 269-9, 269-11, 269-16 to 269-28 and 269-30 shall not, in any respect, apply to the regulation of motor carriers]."

     SECTION 13.  Section 271-4, Hawaii Revised Statutes, is amended by amending the definition of "commission" to read as follows:

    "(2)  "Commission" means the [public utilities] transportation carrier commission."

     SECTION 14.  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 authorizing such 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 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 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 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 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 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 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 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 15.  Section 271G-3, Hawaii Revised Statutes, is amended to read as follows:

     "§271G-3  Administration; governing provisions of other acts.  This chapter shall be administered by the [public utilities] transportation carrier commission of the State, and the provisions of this chapter and of chapter [269,]      that are not inconsistent with this chapter[,] shall govern its administration[; provided that sections 269-16 to 269-28 shall not apply in any respect to the regulation of water carriers]."

     SECTION 16.  Section 271G-5, Hawaii Revised Statutes, is amended by amending the definition of "commission" to read as follows:

    "(2)  "Commission" means the [public utilities] transportation carrier commission."

     SECTION 17.  Section 271G-6, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§271G-6[]]  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 water carrier to evade the regulatory purposes of this chapter;

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

     (3)  Persons engaged in the transportation over water of passengers or property for compensation, other than transportation referred to in section 271G-5(7) under continuing contracts with one person or a limited number of persons either (A) for the furnishing of transportation services through the assignment of vessels for a continuing period of time to the exclusive use of each person served, or (B) for the furnishing of transportation services designed to meet the distinct need of each individual customer;

     (4)  Persons transporting their own property or employees where the transportation is in furtherance of a business or enterprise of fishing or taking of fish for profit or gain as a means of livelihood;

     (5)  Persons engaged in business of transporting persons for sightseeing and other recreational activities[.];

     (6)  Persons engaged in private contracts for towing, salvaging, hauling, or carriage between points in the State and the contracted service is not pursuant to either an established schedule or undertaking to perform the service on behalf of the public generally; and

     (7)  Persons substantially engaged in transporting passengers on luxury cruises between points within the State or on luxury round-trip cruises returning to the point of departure."

     SECTION 18.  Section 271G-7, Hawaii Revised Statutes, is amended to read as follows:

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

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

     (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 deems necessary or desirable in the public interest.  Such 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 by any person or body politic, or upon its own initiative without complaint, the commission 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 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 19.  The following sections of the Hawaii Revised Statutes are amended by replacing the term "public utilities commission" wherever it occurs with "commission":  sections 271-8, 271-8.5, 271-9, 271-10, 271-11, 271-12, 271-13, 271-15, 271-16, 271-17, 271-18, 271-19, 271-21, 271-22, 271-23, 271-25, 271-26, 271-26.5, 271-29, 271-29, 271-30, 271-31, 271-32, 271-33, 271-34, 271-35, 271-36, 271-27, 271-38, 271G-8, 271G-9, 271G-10, 271G-12, 271G-13, 271G-14, 271G-15, 271G-17, 271G-17.5, 271G-18, 271G-20, 271G-22, 271G-23, 271G-24, and 271G-25.

     SECTION 20.  Section 14 of Act 58, Session Laws of Hawaii 2004, as amended by section 50 of Act 22, Session Laws of Hawaii 2005, and section 1 of Act 306, Session Laws of Hawaii 2006, is amended to read as follows:

     "SECTION 14.  This Act shall take effect upon its approval; provided that:

     (1)  The amendments made to sections 40-1, 40-4, and 40-6, Hawaii Revised Statutes, by part I of this Act shall not be repealed when those sections are reenacted on June 30, 2006, by section 1 of Act 137, Session Laws of Hawaii 2005;

     (2)  Part I shall be repealed on June 30, 2010, and sections [28-8.3,] 201B-2[,] and 201B-11, Hawaii Revised Statutes, shall be reenacted in the form in which they read on May 5, 2004, [and] sections 40-1, 40-4, and 40-6, Hawaii Revised Statutes, shall be reenacted in the form in which they read on June 30, 1986[;], and section 28-8.3 shall be reenacted in the form in which it read on June 29, 2010; and

     (3)  Section 9 shall take effect on July 1, 2004."

     SECTION 21.  Section 7 of Act 141, Session Laws of Hawaii 2004, as amended by section 51 of Act 22, Session Laws of Hawaii 2005, is amended to read as follows:

     "SECTION 7.  This Act shall take effect on July 1, 2004, and shall be repealed on June 30, 2009; provided that [sections] section 269-30 [and 269-33], Hawaii Revised Statutes, shall be reenacted in the form in which [they] it read on the day before the effective date of this Act[.] and section 269-33, Hawaii Revised Statutes, shall be reenacted in the form in which it read on June 29, 2009."

     SECTION 22.  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 23.  Section 269-23, Hawaii Revised Statutes, is repealed.

     ["§269-23  Liability of initial and delivering common carrier for loss; limitation of liability; notice and filing of claim.  Any common carrier receiving property for transportation from a point in Hawaii to a point in Hawaii shall issue a receipt or bill of lading therefor, and shall be liable to the lawful holder thereof for any loss, damage, or injury to the property caused by it or by any common carrier or transportation company to which the property may be delivered or over whose line or lines the property may pass when transported on a through bill of lading, and no contract, receipt, rule, regulation, or other limitation of any character whatsoever shall exempt the common carrier from the liability imposed; and any such common carrier so receiving property for transportation or any common carrier or transportation company delivering the property so received and transported shall be liable to the lawful holder of the receipt or bill of lading or to any party entitled to recover thereon, whether the receipt or bill of lading has been issued or not, for the full actual loss, damage, or injury to such property caused by it or by any common carrier or transportation company to which the property may be delivered or over whose line or lines the property may pass when transported on a through bill of lading, notwithstanding any limitation of liability or limitation of the amount of recovery or representation or agreement as to value in any receipt or bill of lading, or in any contract, rule, regulation, or in any tariff filed with the public utilities commission; and any such limitation, without respect to the manner or form in which it is sought to be made is declared to be unlawful and void; provided that if the loss, damage, or injury occurs while the property is in the custody of a carrier by water the liability of the carrier shall be determined by the bill of lading of the carrier by water and by and under the laws and regulations applicable to transportation by water, and the liability of the initial or delivering carrier shall be the same as that of the carrier by water; provided that the provisions hereof respecting liability for full actual loss, damage, or injury, notwithstanding any limitation of liability or recovery or representation or agreement or release as to value, and declaring any such limitation to be unlawful and void, shall not apply, first, to baggage carried on passenger trains or boats, or trains or boats carrying passengers; second, to property, except ordinary livestock, received for transportation concerning which the carrier shall have been or shall be expressly authorized or required by order of the commission to establish and maintain rates dependent upon the value declared in writing by the shipper or agreed upon in writing as the released value of the property, in which case the declaration or agreement shall have no other effect than to limit liability and recovery to an amount not exceeding the value so declared or released, and any tariff schedule which may be filed with the commission pursuant to the order shall contain specific reference thereto and may establish rates varying with the value so declared and agreed upon; and the commission may make such order in cases where rates dependent upon and varying with declared or agreed values would, in its opinion, be just and reasonable under the circumstances and conditions surrounding the transportation; provided further that nothing in this section shall deprive any holder of the receipt or bill of lading of any remedy or right of action which the holder has under the existing law; provided further that it shall be unlawful for any such receiving or delivering common carrier to provide by rule, contract, regulation, or otherwise a shorter period for the filing of claims than four months, and for the institution of suits than two years, such period for institution of suits to be computed from the day when notice in writing is given by the carrier to the claimant that the carrier has disallowed the claim or any part or parts thereof specified in the notice; and provided further that the liability imposed by this section shall also apply in the case of property reconsigned or diverted in accordance with the applicable tariffs filed as provided by the commission."]

     SECTION 24.  This Act shall not affect rights and privileges that matured or claims that accrued before July 1, 2010.

     SECTION 25.  (a)  The public utilities commission shall:

     (1)  Identify other sections within the Hawaii Revised Statutes to be amended to conform to the creation of the transportation carrier commission or to conform to this Act;

     (2)  Recommend amendments to this Act that are deemed necessary for efficiency and effectiveness in the regulation of water and motor carriers; and

     (3)  Identify the personnel, resources, and records relating to the regulation of water and motor carriers to be transferred to the transportation carrier commission on July 1, 2010.

     (b)  The public utilities commission shall submit to the legislature prior to the convening of the regular session of 2010 the information required under subsection (a) and proposed legislation to implement the transfer of appropriate personnel, resources, and records to the transportation carrier commission on July 1, 2010.

     SECTION 26.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 27.  This Act shall take effect on July 1, 2010; except that section 25 shall take effect upon its approval.

 

INTRODUCED BY:

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