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HOUSE OF REPRESENTATIVES |
H.B. NO. |
369 |
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THIRTY-SECOND LEGISLATURE, 2023 |
H.D. 1 |
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STATE OF HAWAII |
S.D. 1 |
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A BILL FOR AN ACT
RELATING TO THE PUBLIC UTILITIES COMMISSION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 269-19, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) [Except as
provided in subsection (b), no] No public utility shall sell, lease,
assign, mortgage, or otherwise dispose of or encumber the whole or any part of
its road, line, plant, system, or other property necessary or useful in the
performance of its duties to the public, or any franchise or permit, or any
right thereunder, nor by any means, directly or indirectly, merge or
consolidate with any other public utility without first having secured from the
public utilities commission an order authorizing it so to do[.],
unless:
(1) The sale, lease, assignment, mortgage, disposition, encumbrance, merger, or consolidation is done in accordance with subsection (b); or
(2) The public utility is disposing a fully depreciated asset or property with a
zero net book value that is no longer used or useful; provided that the
disposal:
(A) Is
made to an unaffiliated entity; and
(B) Results
in a zero or net reduction to the public utility's rate base; or
(3) The public
utility is donating a fully depreciated asset or property with zero net book
value to a charitable or nonprofit organization.
Every
[such] 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 the order of the commission shall be void."
SECTION 2. Section 271G-14, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:
"(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, [and every such] unless
the water carrier is either:
(1) Disposing
a fully depreciated asset or property with a zero net book value that is no
longer used or useful; 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
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 [is] shall be void."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on June 30, 3000.
Report Title:
PUC; Water Carrier; Exception; Authorization; Fully Depreciated Assets or Property; Zero Net Book Value
Description:
Exempts a public utility and water carrier from obtaining the required Public Utilities Commission authorization when: (1) disposing of a fully depreciated asset or property with a zero net book value that is no longer used or useful; provided that the disposal is made to an unaffiliated entity and results in a zero or net reduction to the public utility or 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. Effective 6/30/3000. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.