Transfer of certificates of public convenience and necessity, and carrier property
HRS §271G-14
in effect271G-14. Transfer of certificates of public convenience and necessity, and carrier property
(a) For the purpose of the administration and application of subsections (a) and (b), the term "carrier" includes any water 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 water 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; nor
shall any water carrier, by any means, directly or indirectly, merge or
consolidate its property, certificates of public convenience and necessity, or
any part thereof, with any other carrier, without first having secured from the
public utilities commission an order authorizing it so to do, unless the water
carrier is either:
(1) Disposing a fully depreciated asset or property
with a zero net book value; provided that the disposal:
(A) Is made to an unaffiliated entity; and
(B) Results in a zero or net reduction to the
water carrier's rate base; or
(2) Donating a fully
depreciated asset or property with zero net book value to a charitable or
nonprofit organization.
Every sale, lease, assignment, mortgage,
disposition, encumbrance, merger, or consolidation that requires authorization
from the public utilities commission under this subsection and is made other
than in accordance with an order of the commission authorizing the same shall
be void.
(c) No water carrier shall purchase or
acquire, take or hold, any part of the capital stock of any other water carrier
organized or existing under or by virtue of the laws of the State, without
having been first authorized to do so by the commission. Every assignment or
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 water 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 water carrier or water 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 interest, 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.
(e) Pending the determination of an
application filed with the commission for approval of a consolidation or merger
of the properties of two or more water carriers, or of a purchase, lease,
charter, or contract to operate the properties of one or more water 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 water 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 water 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 1974, c 94, pt of §1; am L 1980, c 202, §3; am L 2023, c 178, §2]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol05_Ch0261-0319/HRS0271G/HRS_0271G-0014.htmFetched: 11/10/2026