Bill Text: HI HB372 | 2024 | Regular Session | Introduced
Bill Title: Relating To The Public Utilities Commission.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [HB372 Detail]
Download: Hawaii-2024-HB372-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
372 |
THIRTY-SECOND LEGISLATURE, 2023 |
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STATE OF HAWAII |
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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 271G-17.5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§271G-17.5[]] Issuance of securities[; execution of
leases]. A water common carrier
may, on securing the prior approval of the public utilities commission, and not
otherwise, 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) For the acquisition of property; [or]
(2) For the construction, completion, extension,
or improvement of or addition to its facilities or service; [or]
(3) For the discharge or lawful refunding of its obligations; or
(4) 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 in cases where the water carrier has kept its accounts for such expenditures in such 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.
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 leases of more than three years and leverage leases,]
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.
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
leases of more than three years and all leverage leases entered into by a water
carrier without an order of the commission authorizing the same then in effect
shall be void.]"
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2023.
INTRODUCED BY: |
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Report Title:
Public Utilities Commission; Common Water Carriers; Long-Term Leases; Leverage Leases
Description:
Removes requirement that common water carriers receive permission from the public utilities commission prior to executing a long-term lease of more than three years or a leverage lease.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.