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HB1709 • 2026

RELATING TO WATER CARRIERS.

RELATING TO WATER CARRIERS.

Budget
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
MIYAKE, ILAGAN, KEOHOKAPU-LEE LOY, KILA, KUSCH, TAKENOUCHI
Last action
2026-02-10
Official status
The committee(s) on TRN recommend(s) that the measure be deferred.
Effective date
Not listed

Plain English Breakdown

The official summary and text do not provide specific details about updating laws or specifying the amount of funding appropriated.

Water Carrier Regulations Transfer

This bill moves the regulation of water carriers from the Public Utilities Commission (PUC) to the Department of Transportation and funds this change.

What This Bill Does

  • Moves the authority to regulate water carriers from the PUC to the Department of Transportation.

Who It Names or Affects

  • Water carriers operating within Hawaii
  • The Public Utilities Commission and the Department of Transportation

Terms To Know

Public Convenience and Necessity Certificate
A document issued by a government agency that allows water carriers to operate legally.
Department of Transportation
The state agency responsible for transportation-related matters, including roads, airports, and now potentially water carrier regulations.

Limits and Unknowns

  • It is not clear how the transfer will affect existing water carriers' operations.
  • The bill does not specify the amount of funding appropriated for this change.

Bill History

  1. 2026-02-10 H

    The committee(s) on TRN recommend(s) that the measure be deferred.

  2. 2026-02-06 H

    Bill scheduled to be heard by TRN on Tuesday, 02-10-26 9:30AM in House conference room 430 VIA VIDEOCONFERENCE.

  3. 2026-01-26 H

    Referred to TRN, CPC, FIN, referral sheet 1

  4. 2026-01-21 H

    Introduced and Pass First Reading.

  5. 2026-01-20 H

    Prefiled.

Official Summary Text

RELATING TO WATER CARRIERS.
PUC; DOT; Water Carrier Act; Transfer; Appropriation ($)
Transfers the jurisdiction of the Hawaii Water Carrier Act from the Public Utilities Commission to the Department of Transportation. Makes conforming amendments. Appropriates funds.

Current Bill Text

Read the full stored bill text
HB1709

HOUSE OF REPRESENTATIVES

H.B. NO.

1709

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to water carriers
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1
.
�
Chapter 271G, Hawaii Revised Statutes, is
amended by adding three new sections to be appropriately designated and to read
as follows:

����
"
�2
71G-
�
Certificates
of public convenience and necessity for water carriers.
�
(a)
�
No person which holds itself
out to the general public to engage in the transportation by water of
passengers or property or any class or classes thereof for compensation,
between points in the State, shall operate, unless there is in force with
respect to the water carrier a certificate of public convenience and necessity
issued by the department authorizing the transportation; provided that this
section shall not apply to any water carrier to the extent that the carrier is
excluded from the definition of a public utility under section 269-1(2)(E) and
(F).

����
(b)
�
Applications for certificates shall be made
in writing under oath to the department in the form as it requires.

����
(c)
�
A certificate shall be issued to any
qualified applicant therefor, authorizing the whole or any part of the
operations covered by the application, if it is found that the applicant is
fit, willing, and able properly to perform the service proposed and to conform
to the provisions of this chapter and the requirements, rules, and regulations
of the department, and that the proposed service, to the extent authorized by
the certificate, is or will be required by the present or future public
convenience and necessity; otherwise the application shall be denied.
�
Any certificate issued shall specify the
service to be rendered and the routes and ports that the water carrier is to
serve and there shall be attached to the exercise of the privileges granted by
the certificate, at the time of issuance and from time to time thereafter, the
reasonable conditions and limitations as the public convenience and necessity
may require.

����
(d)
�
The department may at any time suspend,
change, or revoke the certificate in the manner provided in section 271G‑15.

����
�271G-
�
Preferential water carrier service rates
for agricultural activities.
�
The
department may authorize
preferential water carrier service rates by tariff for ratepayers that engage
in agricultural activities.
�
The
application process for obtaining preferential water carrier service rates by
tariff may be established by the department.

����
�271G-
�
Liability of initial and delivering water
carrier for loss; limitation of liability; notice and filing of claim.
�
Any water carrier receiving property for transportation from a point in
Hawaii to a point in Hawaii shall issue a receipt or bill of lading therefor,
and shall be liable to the lawful holder thereof for any loss, damage, or
injury to the property caused by it or by any water carrier to which the
property may be delivered or over whose line or lines the property may pass
when transported on a bill of lading, and no contract, receipt, rule,
regulation, or other limitation of any character whatsoever shall exempt the water
carrier from the liability imposed; provided that if the loss, damage, or
injury occurs while the property is in the custody of the water carrier the
liability of the water carrier shall be determined by the bill of lading of the
water carrier and by and under the laws and regulations applicable to
transportation by water, and the liability of the initial or delivering carrier
shall be the same as that of the water carrier;
provided further that
nothing in this section shall deprive any holder of the receipt or bill of
lading of any remedy or right of action which the holder has under existing
law;
provided further that it shall be
unlawful for any such receiving or delivering water carrier to provide by rule,
contract, regulation, or otherwise a shorter period for the filing of claims
than four months, and for the institution of suits than two years, the period
for institution of suits to be computed from the day when notice in writing is
given by the water carrier to the claimant that the water carrier has
disallowed the claim or any part or parts thereof specified in the notice.
"

����
SECTION
2
.
�
Section 269-1, Hawaii Revised Statutes, is
amended by amending the definition of "public utility" to read as
follows:

����
"
"Public
utility":

����
(1)
�
Includes every person who may own,
control, operate, or manage as owner, lessee, trustee, receiver, or otherwise,
whether under a franchise, charter, license, articles of association, or
otherwise, any plant or equipment, or any part thereof, directly or indirectly
for public use for the transportation of passengers or freight; for the
conveyance or transmission of telecommunications messages; for the furnishing
of facilities for the transmission of intelligence by electricity within the
State or between points within the State by land, water, or air; for the
production, conveyance, transmission, delivery, or furnishing of light, power,
heat, cold, water, gas, or oil; for the storage or warehousing of goods; or for
the disposal of sewage; provided that the term shall include:

���������
(A)
�
An owner or operator of a private sewer
company or sewer facility; and

���������
(B)
�
A telecommunications carrier or
telecommunications common carrier; and

����
(2)
�
Shall not include:

���������
(A)
�
An owner or operator of an aerial
transportation enterprise;

���������
(B)
�
An owner or operator of a taxicab as
defined in this section;

���������
(C)
�
Common carriers that transport only
freight on the public highways, unless operating within localities, along
routes, or between points that the public utilities commission finds to be
inadequately serviced without regulation under this chapter;

���������
(D)
�
Persons engaged in the business of
warehousing or storage unless the commission finds that regulation is necessary
in the public interest;

���������
(E)
�
A carrier by water to the extent that
the carrier enters into private contracts for towage, salvage, hauling, or
carriage between points within the State; provided that the towing, salvage,
hauling, or carriage is not pursuant to either an established schedule or an
undertaking to perform carriage services on behalf of the public generally;

���������
(F)
�
A carrier by water, substantially
engaged in interstate or foreign commerce, that transports passengers on luxury
cruises between points within the State or on luxury round-trip cruises
returning to the point of departure;

���������
(G)
�
Any user, owner, or operator of the
Hawaii electric system as defined under section 269-141;

���������
(H)
�
A telecommunications provider only to
the extent determined by the public utilities commission pursuant to section
269-16.9;

���������
(I)
�
Any person who controls, operates, or
manages plants or facilities developed pursuant to chapter 167 for conveying,
distributing, and transmitting water for irrigation and other purposes for
public use and purpose;

���������
(J)
�
Any person who owns, controls,
operates, or manages plants or facilities for the reclamation of wastewater;
provided that:

�������������
(i)
�
The services of the facility are
provided pursuant to a service contract between the person and a state or
county agency and at least ten per cent of the wastewater processed is used
directly by the state or county agency that entered into the service contract;

������������
(ii)
�
The primary function of the facility is
the processing of secondary treated wastewater that has been produced by a
municipal wastewater treatment facility owned by a state or county agency;

�����������
(iii)
�
The facility does not make sales of
water to residential customers;

������������
(iv)
�
The facility may distribute and sell
recycled or reclaimed water to entities not covered by a state or county
service contract; provided that, in the absence of regulatory oversight and
direct competition, the distribution and sale of recycled or reclaimed water
shall be voluntary and its pricing fair and reasonable.
�
For purposes of this subparagraph,
"recycled water" and "reclaimed water" means treated
wastewater that by design is intended or used for a beneficial purpose; and

�������������
(v)
�
The facility is not engaged, either
directly or indirectly, in the processing of food wastes;

���������
(K)
�
Any person who owns, controls,
operates, or manages any seawater air conditioning district cooling project;
provided that at least fifty per cent of the energy required for the seawater
air conditioning district cooling system is provided by a renewable energy
resource, such as cold, deep seawater;

���������
(L)
�
Any person who owns, controls,
operates, or manages plants or facilities primarily used to charge or discharge
a vehicle battery that provides power for vehicle propulsion;

���������
(M)
�
Any person who:

�������������
(i)
�
Owns, controls, operates, or manages a
renewable energy system that is located on a customer's property; and

������������
(ii)
�
Provides, sells, or transmits the power
generated from that renewable energy system to an electric utility or to the
customer on whose property the renewable energy system is located; provided
that, for purposes of this subparagraph, a customer's property shall include
all contiguous property owned or leased by the customer without regard to
interruptions in contiguity caused by easements, public thoroughfares,
transportation rights-of-way, and utility rights-of-way; and

���������
(N)
�
Any person who owns, controls,
operates, or manages a renewable energy system that is located on the person's
property and provides, sells, or transmits the power generated from that
renewable energy system to an electric utility or to lessees or tenants on the
person's property where the renewable energy system is located; provided that:

�������������
(i)
�
An interconnection, as defined in
section 269-141, is maintained with an electric public utility to preserve the
lessees' or tenants' ability to be served by an electric utility;

������������
(ii)
�
The person does not use an electric
public utility's transmission or distribution lines to provide, sell, or
transmit electricity to lessees or tenants;

�����������
(iii)
�
At the time that the lease agreement is
signed, the rate charged to the lessee or tenant for the power generated by the
renewable energy system shall be no greater than the effective rate charged per
kilowatt hour from the applicable electric utility schedule filed with the
public utilities commission;

������������
(iv)
�
The rate schedule or formula shall be
established for the duration of the lease, and the lease agreement entered into
by the lessee or tenant shall reflect the rate schedule or formula;

�������������
(v)
�
The lease agreement shall not abrogate
any terms or conditions of applicable tariffs for termination of services for
nonpayment of electric utility services or rules regarding health, safety, and
welfare; and

������������
(vi)
�
The lease agreement shall
disclose:
�
(1) the rate schedule or
formula for the duration of the lease agreement; (2) that, at the time that the
lease agreement is signed, the rate charged to the lessee or tenant for the
power generated by the renewable energy system shall be no greater than the
effective rate charged per kilowatt hour from the applicable electric utility
schedule filed with the public utilities commission; (3) that the lease
agreement shall not abrogate any terms or conditions of applicable tariffs for
termination of services for nonpayment of electric utility services or rules
regarding health, safety, and welfare; and (4) whether the lease is contingent
upon the purchase of electricity from the renewable energy system; provided
further that any disputes concerning the requirements of this provision shall
be resolved pursuant to the provisions of the lease agreement or chapter 521,
if applicable.

����
If
the application of this chapter is ordered by the commission in any case
provided in paragraph (2)(C), (D), (H), and (I), the business of any public
utility that presents evidence of bona fide operation on the date of the
commencement of the proceedings resulting in the order shall be presumed to be
necessary to the public convenience and necessity, but any certificate issued
under this proviso shall nevertheless be subject to terms and conditions as the
public utilities commission may prescribe, as provided in [
sections
]
section

269‑16.9 [
and 269-20
]."

����
SECTION
3
.
�
Section 269-19.5, Hawaii Revised Statutes, is
amended by amending subsection (a) to read as follows:

����
"(a)
�

For purposes of this section "affiliated interests" with a
public utility includes the following:

����
(1)
�
Every
person owning or holding, directly or indirectly, ten per cent or more of the
voting securities of a public utility, and every person having ownership of ten
per cent or more of voting securities of a person owning ten per cent or more
of the voting securities of a public utility;

����
(2)
�
Every
corporation ten per cent or more of whose voting securities is owned by any
person owning ten per cent or more of the voting securities of a public
utility;

����
(3)
�
Every
person who is an officer or director of a public utility;

����
(4)
�
Every
corporation operating a public utility, or providing engineering, accounting,
legal, or similar service to public utilities [
or common carriers by water,
which
]
that
has three or more officers or three or more directors in
common with a public utility, and every other corporation which has directors
in common with a public utility where the number of common directors is more
than one-third of the total number of the utility's directors.
"

����
SECTION
4
.
�
Section 269-23, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�269-23
�
Liability of initial and
delivering common carrier for loss; limitation of liability; notice and filing
of claim.
�
Any common carrier
receiving property for transportation from a point in Hawaii to a point in
Hawaii shall issue a receipt or bill of lading therefor, and shall be liable to
the lawful holder thereof for any loss, damage, or injury to the property
caused by it or by any common carrier or transportation company to which the
property may be delivered or over whose line or lines the property may pass
when transported on a through bill of lading, and no contract, receipt, rule,
regulation, or other limitation of any character whatsoever shall exempt the
common carrier from the liability imposed; and any [
such
] common carrier
so receiving property for transportation or any common carrier or
transportation company delivering the property so received and transported
shall be liable to the lawful holder of the receipt or bill of lading or to any
party entitled to recover thereon, whether the receipt or bill of lading has
been issued or not, for the full actual loss, damage, or injury to [
such
]

the
property caused by it or by any common carrier or transportation
company to which the property may be delivered or over whose line or lines the
property may pass when transported on a through bill of lading, notwithstanding
any limitation of liability or limitation of the amount of recovery or
representation or agreement as to value in any receipt or bill of lading, or in
any contract, rule, regulation, or in any tariff filed with the public
utilities commission; and any [
such
] limitation, without respect to the
manner or form in which it is sought to be made is declared to be unlawful and
void[
; provided that if the loss, damage, or injury occurs while the
property is in the custody of a carrier by water the liability of the carrier
shall be determined by the bill of lading of the carrier by water and by and
under the laws and regulations applicable to transportation by water, and the
liability of the initial or delivering carrier shall be the same as that of the
carrier by water
]; provided that the provisions [
hereof
] respecting
liability for full actual loss, damage, or injury, notwithstanding any
limitation of liability or recovery or representation or agreement or release
as to value, and declaring any [
such
] limitation to be unlawful and
void, shall not apply, first, to baggage carried on passenger trains [
or
boats
], or trains [
or boats
] carrying passengers; second, to
property, except ordinary livestock, received for transportation concerning
which the carrier shall have been or shall be expressly authorized or required
by order of the commission to establish and maintain rates dependent upon the
value declared in writing by the shipper or agreed upon in writing as the
released value of the property, in which case the declaration or agreement
shall have no other effect than to limit liability and recovery to an amount
not exceeding the value so declared or released, and any tariff schedule which
may be filed with the commission pursuant to the order shall contain specific
reference thereto and may establish rates varying with the value [
so
]
declared and agreed upon; and the commission may make [
such
]
the

order in cases where rates dependent upon and varying with declared or agreed
values would, in its opinion, be just and reasonable under the circumstances
and conditions surrounding the transportation; provided further that nothing in
this section shall deprive any holder of the receipt or bill of lading of any
remedy or right of action which the holder has under the existing law
; provided further that it shall be unlawful for any [
such
]
receiving or delivering common carrier to provide by rule, contract,
regulation, or otherwise a shorter period for the filing of claims than four
months, and for the institution of suits than two years, [
such
]
the

period for institution of suits to be computed from the day when notice in
writing is given by the carrier to the claimant that the carrier has disallowed
the claim or any part or parts thereof specified in the notice
; [
and
]
provided further that the liability imposed by this section shall also apply in
the case of property reconsigned or diverted in accordance with the applicable
tariffs filed as provided by the commission."

����
SECTION
5
.
�
Section 269-33, Hawaii Revised Statutes, is
amended by amending subsections (a) and (b) to read as follows:

����
"(a)
�

There is established in the state treasury a public utilities commission
special fund to be administered by the public utilities commission.
�
The proceeds of the fund shall be used by the
public utilities commission and the division of consumer advocacy of the
department of commerce and consumer affairs for all expenses incurred in the
administration of chapters 269, 271, [
271G,
] 269E, and 486J, and for
costs incurred by the department of commerce and consumer affairs to fulfill
the department's limited oversight and administrative support functions;
provided that the expenditures of the public utilities commission shall be in accordance
with legislative appropriations.
�
On a
quarterly basis, an amount not exceeding thirty per cent of the proceeds
remaining in the fund after the deduction for central service expenses,
pursuant to section 36‑27, shall be allocated by the public utilities
commission to the division of consumer advocacy and deposited in the compliance
resolution fund established pursuant to section 26‑9(o); provided that
all moneys allocated by the public utilities commission from the fund to the
division of consumer advocacy shall be in accordance with legislative
appropriations.

����
(b)
�
All moneys appropriated to, received, and
collected by the public utilities commission that are not otherwise pledged,
obligated, or required by law to be placed in any other special fund or
expended for any other purpose shall be deposited into the public utilities
commission special fund including, but not limited to, all moneys received and
collected by the public utilities commission pursuant to sections 92-21,
243-3.5, 269‑28, 269-30, 271-27, 271-36, [
271G-19,
] 269E-6,
269E-14, and 607-5.
"

����
SECTION
6
.
�
Section 271G-3, Hawaii Revised Statutes, is
amended to read as follows:

����
"
�271G-3
�
Administration[
;
governing provisions of other acts
].
�

This chapter shall be administered by the [
public utilities
commission of the State
]
department
and the provisions of this
chapter [
and of chapter 269, not inconsistent with this chapter,
] shall
govern its administration[
; provided that sections 269-16 to 269-28 shall
not apply in any respect to the regulation of water carriers
]."

����
SECTION
7
.
�
Section
271G-5
,
Hawaii Revised Statutes, is amended as follows:

����
1.
��
By
adding a new definition to be appropriately inserted and to read:

����
"
"Department" means the
department of transportation.
"

����
2.
�

By amending the definitions of "document" and
"enforcement officer" to read:

����
""Document" includes any
application, complaint,
pleading, brief,

answer, motion, memorandum, declaration, exhibit, certificate of service, and
other papers filed by or with the [
commission.
]
department.

����
"Enforcement
officer" means any person employed and authorized by the [
commission
]

department
to investigate any matter on behalf of the [
commission
]

department.
"

����
3.
�

By repealing the definition of "commission".

����
["
"Commission" means the
public utilities commission.
"]

����
SECTION
8
.
�
Section 271G-7, Hawaii Revised Statutes, is
amended to read as follows:

����
"�
271G
-
7
�
General duties and powers of the [
commission.
]

department.
�
The general
duties and powers of the [
public utilities commission
]
department

shall be:

����
(1)
�
To
regulate water carriers, and to that end the [
commission
]
department

shall have and utilize [
the investigative powers set forth in section 269-7
as well as
] all of the duties and powers specifically enumerated in this
chapter[
, and water carriers shall be subject to the duties set forth in
sections 269-8 and 269-9 as well as all of the duties specifically enumerated
herein
].

����
(2)
�
To
establish [
such
] just and reasonable classifications of water carriers
as the special nature of the services performed by the carriers shall require,
and [
such
] just and reasonable rules, regulations, and requirements,
consistent with this chapter, to be observed by the carriers so classified or
grouped, as the [
commission
]
department
deems necessary or
desirable in the public interest.
�
[
Such
]

The
classifications, rules, regulations, and requirements shall be
adopted and promulgated pursuant to the provisions of chapter 91 and shall have
the force and effect of law.

����
(3)
�
Upon
complaint in writing to the [
commission
]
department
by any person
or body politic, or upon its own initiative without complaint, the [
commission
]

department
may investigate whether any water carrier has failed to
comply with any provision of this chapter, or with any rule or order adopted or
issued [
hereunder.
]
under this section.

����
(4)
�
The
[
commission
]
department
may investigate any person acting in the
capacity of or engaging in the business of a water carrier within the State,
without having a certificate of public convenience and necessity or other
authority previously obtained under and in compliance with this chapter or the
rules promulgated under this chapter."

����
SECTION
9
.
�
Section 286-271, Hawaii Revised Statutes, is
amended by amending subsection (e) to read as follows:

����
"(e)
�
This section shall not apply to:

����
(1)
�
Any motor vehicle rental company as defined in
section 431:9A-141 that periodically ships in quantities of ten vehicles or
more;

����
(2)
�
Licensed dealers who periodically ship in
quantities of ten vehicles or more, or whose primary business is the auction of
insurance salvage vehicles;

����
(3)
�
Except for a lessee of a rental motor vehicle
under paragraph (4), drivers of vehicles transported by any water carrier
authorized by the [
public utilities commission
]
department of
transportation
to transport vehicles interisland; provided that the driver
presents identification, a current certificate of registration for the vehicle,
and proof of motor vehicle insurance.
�

The interisland water carrier shall keep a record of transporting the
vehicle by recording the vehicle identification number and retaining the
information for three years after the date of travel; or

����
(4)
�
A lessee of a rental motor vehicle; provided
that:

���������
(A)
�
The rental motor vehicle is transported by any
water carrier authorized by the [
public utilities commission
]
department
of transportation
to transport vehicles interisland;

���������
(B)
�
The water carrier has a written agreement with
the owner of the rental motor vehicle; and

���������
(C)
�
The water carrier records and retains the
information required under subsections (d) and (f).

����
For
purposes of this subsection, "lessee" and "rental motor
vehicle" have the same meanings as [
those terms are
] defined in
section 437D-3.
"

����
SECTION
10
.
�
Section 269-20, Hawaii Revised Statutes, is
repealed.

����
["
�269-20
�
Certificates of
public convenience and necessity for water carriers.
�
(a)
�
No
person which holds itself out to the general public to engage in the
transportation by water of passengers or property or any class or classes
thereof for compensation, between points in the State of Hawaii, shall operate
unless there is in force with respect to such carrier a certificate of public
convenience and necessity issued by the commission authorizing such
transportation; provided that this section shall not apply to any carrier by
water to the extent that the carrier is excluded from the definition of a
public utility under section [269-1(2)(E) and (F)].

����
(b)
�

Applications for certificates shall be made in writing under oath to the
commission in such form as it requires.

����
(c)
�

A certificate shall be issued to any qualified applicant therefor,
authorizing the whole or any part of the operations covered by the application,
if it is found that the applicant is fit, willing, and able properly to perform
the service proposed and to conform to the provisions of this chapter and the
requirements, rules and regulations of the commission thereunder, and that the
proposed service, to the extent authorized by the certificate, is or will be
required by the present or future public convenience and necessity; otherwise
such application shall be denied.
�
Any
certificate issued shall specify the service to be rendered and the routes and
ports which the water carrier is to serve and there shall be attached to the
exercise of the privileges granted by the certificate, at the time of issuance
and from time to time thereafter, such reasonable conditions and limitations as
the public convenience and necessity may require.

����
(d)
�

The commission may at any time suspend, change or revoke such
certificate in the manner provided in section 271-19.
"]

����
SECTION
11
.
�
Section 269-26.6, Hawaii Revised Statutes, is
repealed.

����
["
[�269-26.6]
�

Preferential water carrier service rates for agricultural
activities.
�
The
public utilities commission may
authorize preferential water carrier service rates by tariff for ratepayers
that engage in agricultural activities.
�

The application process for obtaining preferential water carrier service
rates by tariff may be established by the public utilities commission.
"]

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SECTION 12.
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Sections 271G-7.5, 271G-8, 271G-9, 271G-10, 271G-12, 271G-13, 271G-14,
271G-15, 271G-16, 271G-17, 271G-17.5, 271G-18, 271G-19, 271G-20, 271G-21,
271G-22, 271G-23, 271G-23.5, 271G-24, and 271G-25, Hawaii Revised Statutes, are
amended by substituting the term "department of transportation",
"department", or similar term, wherever the term "public
utilities commission", "commission", or similar term, appears,
as the context requires.

����
SECTION 13.
�

All rights, powers, functions, and duties of the public utilities
commission are transferred to the department of transportation as it relates to
the Hawaii water carrier act.

����
All officers and employees whose functions
are transferred by this Act shall be transferred with their functions and shall
continue to perform their regular duties upon their transfer, subject to the
state personnel laws and this Act.

����
No officer or employee of the State having
tenure shall suffer any loss of salary, seniority, prior service credit,
vacation, sick leave, or other employee benefit or privilege as a consequence
of this Act, and such officer or employee may be transferred or appointed to a
civil service position without the necessity of examination; provided that the
officer or employee possesses the minimum qualifications for the position to
which transferred or appointed; and provided that subsequent changes in status may
be made pursuant to applicable civil service and compensation laws.

����
An officer or employee of the State who
does not have tenure and who may be transferred or appointed to a civil service
position as a consequence of this Act shall become a civil service employee
without the loss of salary, seniority, prior service credit, vacation, sick
leave, or other employee benefits or privileges and without the necessity of
examination; provided that such officer or employee possesses the minimum
qualifications for the position to which transferred or appointed.

����
If an office or position held by an officer
or employee having tenure is abolished, the officer or employee shall not
thereby be separated from public employment, but shall remain in the employment
of the State with the same pay and classification and shall be transferred to
some other office or position for which the officer or employee is eligible
under the personnel laws of the State as determined by the head of the
department or the governor.

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SECTION 14.
�

All appropriations, records, equipment, machines, files, supplies,
contracts, books, papers, documents, maps, and other personal property
heretofore made, used, acquired, or held by the public utilities commission
relating to the functions transferred to the department of transportation shall
be transferred with the functions to which they relate.

����
SECTION 15.
�

All rules, policies, procedures, guidelines, and other material adopted
or developed by the public utilities commission to implement provisions of the
Hawaii Revised Statutes that are made reenacted or applicable to the department
of transportation by this Act shall remain in full force and effect until
amended or repealed by the department of transportation pursuant to chapter 91,
Hawaii Revised Statutes. In the interim, every reference to the public
utilities commission in those rules, policies, procedures, guidelines, and
other material is amended to refer to the department of transportation, as
appropriate.

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SECTION 16.
�

All deeds, leases, contracts, loans, agreements, permits, or other
documents executed or entered into by or on behalf of the public utilities
commission, pursuant to the provisions of the Hawaii Revised Statutes, that are
reenacted or made applicable to the office of real estate operations by this
Act shall remain in full force and effect. Upon effective date of this Act,
every reference to the public utilities commission or the chairperson of the
public utilities commission therein shall be construed as a reference of the
department of transportation or the director of transportation, as appropriate.

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SECTION 17.
�

There is appropriated out of the general revenues of the State of Hawaii
the sum of $200,000 or so much thereof as may be necessary for fiscal year
2026-2027 for the transfer of functions related to the Hawaii water carrier act
to the department of transportation.

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The sum appropriated shall be expended by
the department of transportation for the purposes of this Act.

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SECTION 18.
�

Statutory material to be repealed is bracketed and stricken.
�
New statutory material is underscored.

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SECTION 19.
�

This Act shall take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

PUC; DOT; Water Carrier Act; Transfer; Appropriation

Description:

Transfers the jurisdiction of the Hawaii Water Carrier Act
from the Public Utilities Commission to the Department of Transportation.
�
Makes conforming amendments.
�
Appropriates funds.
�

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.