Transfer of certificates of public convenience and necessity, contract carrier permits, and carrier property
HRS §271-18
in effect271-18. Transfer of certificates of public convenience and necessity, contract carrier permits, and carrier property
(a) For the purpose of the administration and application of subsections (a) and (b), the terms "carrier" includes any motor carrier subject to this chapter, or any carrier subject to the act of any other state or any act of the Congress of the United States under which interstate or foreign commerce by land, sea, or air, is regulated.
(b) No motor carrier shall sell, lease,
assign, mortgage, or otherwise dispose of, or encumber the whole or any part of
its property necessary or useful in the performance of transportation services
for the public or any certificate of public convenience and necessity or
permit; nor shall any motor carrier, by any means, directly or indirectly,
merge or consolidate its property, certificates of public convenience and
necessity or permits, or any part thereof, with any other carrier, without
first having secured from the public utilities commission an order authorizing
it so to do. Every such sale, lease, assignment, mortgage, disposition,
encumbrance, merger, or consolidation, made other than in accordance with the
order of the commission authorizing the same is void.
(c) No carrier or person in control of a
carrier shall, either directly or indirectly, purchase or acquire, take or
hold, any part of the capital stock of any motor carrier organized or existing
under or by virtue of the laws of this State without having been first
authorized to do so by the commission. Every assignment, transfer of any stock
by or through any person to any person, or otherwise, in violation of any of
the provisions of this section is void and of no effect, and no transfer shall
be made on the books of any motor carrier. Nothing herein shall prevent the
holding of stock heretofore lawfully acquired.
(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 in such form as the commission may require and the commission 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 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 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 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.
(e) Nothing in this section shall be construed
to require a motor carrier to secure from the commission authority to lease
motor vehicle equipment from another motor carrier for the purpose of meeting
the requirements of transportation, to execute any conditional sales contract
for the purchase of motor vehicle equipment or any note and chattel mortgage on
motor vehicle equipment securing the payment of all or any part of the purchase
price of motor vehicle equipment; nor shall this section prevent the sale,
lease, encumbrance, or other disposition by any motor carrier of property which
is not necessary or useful in the performance of its duties to the public, and
any disposition of property by a motor carrier shall be conclusively presumed
to be property which is not necessary or useful in the performance of its
duties to the public as to any purchaser, lessee, or encumbrancer dealing with
such property in good faith and for value.
(f) Pending the determination of an
application filed with the commission for approval of a consolidation or merger
of the properties of two or more motor carriers, or of a purchase, lease, or
contract to operate the properties of one or more motor carriers, the
commission may, in its discretion and without hearings or other proceedings,
grant temporary approval, for a period not exceeding one hundred twenty days or
for such additional period as the determination of an application may require,
of the operation of the motor carrier properties sought to be acquired by the
persons proposing in the pending application to acquire the properties, if it
shall appear that failure to grant this temporary approval may result in
destruction of or injury to such motor carrier properties sought to be
acquired, or to interfere substantially with their future usefulness in the
performance of adequate and continuous service to the public.
[L 1961, c 121,
pt of §2; Supp, §106C-16; HRS §271-18]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol05_Ch0261-0319/HRS0271/HRS_0271-0018.htmFetched: 11/10/2026