Bill Text: HI HB24 | 2023 | Regular Session | Amended
Bill Title: Relating To Water Common Carriers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-06-30 - Act 138, 06/29/2023 (Gov. Msg. No. 1241). [HB24 Detail]
Download: Hawaii-2023-HB24-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
24 |
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THIRTY-SECOND LEGISLATURE, 2023 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 2 |
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A BILL FOR AN ACT
RELATING TO WATER COMMON CARRIERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 271G-17.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§271G-17.5[]]
Issuance of securities[;
execution of leases]. (a)
A water common carrier may, on securing the prior approval of the public
utilities commission, and not otherwise[, issue]:
(1) Enter into vessel leases longer than
five years;
(2) Enter into leverage leases for
vessels; or
(3) Issue stocks and stock
certificates, bonds, notes, and other evidences of indebtedness, payable at
periods of more than twelve months after the date thereof, [and enter into long-term
leases of more than three years and leverage leases,] for the following
purposes and no other, namely:
[(1)] (A) For the acquisition of property; [or]
[(2)] (B) For the construction, completion,
extension, or improvement of or addition to its facilities or service; [or]
[(3)] (C) For the discharge or lawful refunding
of its obligations; or
[(4)] (D) For the reimbursement of moneys
actually expended from income or from any other moneys in its treasury not
secured by or obtained from the issue of its stocks or stock certificates, or
bonds, notes, or other evidences of indebtedness, for any of the aforesaid
purposes, except maintenance of service, replacements, and substitutions not
constituting capital [expenditure] expenditures in cases where the
water carrier has kept its accounts for [such] the expenditures
in [such] a manner as to enable the commission to ascertain the
amount of moneys so expended and the purposes for which the expenditures were
made, and the sources of the funds in its treasury applied to the expenditures.
(b) As used [herein,] in this section,
"property" and "facilities" mean property and facilities
used in all operations of a water carrier whether or not included in its
regulated operations or rate base. A
water carrier may not issue securities [nor], enter into [long-term]
vessel leases [of more than three] longer than five years [and]
or enter into leverage leases[,] for vessels, to acquire
property or to construct, complete, extend [or], improve,
or add to its facilities or service, if the commission determines that the
proposed purpose will have a material adverse effect on its operations. No carrier shall repurchase or reissue its
own common stock without prior commission approval.
(c) All stock and every stock certificate, and
every bond, note, or other evidence of indebtedness of a water carrier not
payable within twelve months, issued without an order of the commission authorizing
the same, then in effect, shall be void.
In addition, all [long-term] vessel leases [of more
than three] longer than five years and all leverage leases entered
into by a water carrier for vessels without an order of the commission
authorizing the same then in effect shall be void."
SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 3. This Act shall take effect on July 1, 3000.
Report Title:
Common Carriers; Water Carriers; Public Utilities Commission; Long Term Leases
Description:
Clarifies that a common water carrier may enter into vessel leases longer than five years or enter into leverage leases for vessels upon prior approval of the Public Utilities Commission. Effective 7/1/3000. (SD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
