THE SENATE
S.R. NO.
125
THIRTIETH LEGISLATURE, 2020
S.D. 1
STATE OF HAWAII
PROPOSED
SENATE RESOLUTION
WHEREAS, the covid-19 pandemic is causing a significant decrease in interisland cargo volumes that has put financial stress on all forms of interisland transportation of goods and property.
WHEREAS, for counties with populations of less than five hundred thousand people, interisland cargo transportation is a life-line for the residents and business in those counties and an interisland tug and barge service is essential to the States economic recovery from the covid-19 pandemic's deleterious state-wide economic effects.
WHEREAS, it is in the State's best interests for the State of Hawaii to provide financial assistance to any interisland water carrier of property holding a Certificate of Public Convenience and Necessity pursuant to Hawaii Revised Statutes Chapter 271G that has suffered significant financial harm due to the economic effects of the covid-19 pandemic.
WHEREAS, it is in the public interest for State to provide subsidies to cargo carriers to offset the costs incurred by the cargo carriers as a result of providing cargo carrier services to ports serving counties within the State having a population of less than five hundred thousand, and to address impacts of the Covid-19 pandemic and to ensure the continued operations of an interisland tug and barge service to advance the State's economic recovery from the covid-19 pandemic's state-wide economic effects.
WHEREAS any funds the legislature appropriates as financial assistance to any interisland water carrier of property holding a Certificate of Public Convenience and Necessity that has suffered significant financial harm due to the economic effects of the covid-19 pandemic are to be used by the water carrier for operating expenses, not for payments to any parent company or other affiliates of the same parent company, executive bonuses, profits for the water carrier to which assistance is being provided, or profits for any affiliated business of the water carrier, and it must be required that certain operations continue for ports serving counties within the State having a population of less than five hundred thousand people; now, therefore,
BE IT RESOLVED by the Senate of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2020, that this body hereby requests the Department of Transportation and respective counties to, on or before September 30, 2020, to address the impacts of the coronavirus disease 2019 pandemic and to offset costs incurred by any water carrier as a result of providing water carrier service to ports within the State, by providing a combined total of at least $10,000,000 in funding directly to a water carrier for the purposes of providing that water carrier with financial assistance to support different routes and lines of services within the State; provided that such funds shall not be used for the following purposes:
(1) As payment in any form or nature to any parent company of the water carrier or affiliate of any parent company of the water carrier, except for tug assist, lease, or charter payments to an affiliate company of the water carrier receiving such funds, provided further, however, that the rates for any such tug assist, lease, or charter must be at or below market rates;
(2) As profits for the water carrier, any parent company of the water carrier, or any affiliate of any parent company of the water carrier;
(3) As repayment of any loan, bond, or other form of indebtedness of any parent company the water carrier or affiliate of any parent company of the water carrier;
(4) As payment for any capital expenditure made by the parent company of the water carrier for assets held by the water carrier; or
(5) As payment for executive bonuses; any advertising or marketing except customer and employee communications; club or membership dues; charitable or political contributions; non-essential business travel; seminars, conferences, or conventions; entertainment expenses; or any other non-operating expenses; and
BE IT FURTHER RESOLVED that on or before August 1, 2020, the public utilities commission, in collaboration with the department of commerce and consumer affairs' division of consumer advocacy and any water carriers operating in the state, is requested to convene a working group to recommend mid-term and long-term solutions to balance the need for continuous water carrier service throughout the state with the need for water carriers to maintain financial sustainability. The working group shall consist of:
(1) The Senate President or a designee of the Senate President;
(2) The House Speaker or a designee of the House Speaker;
(3) The Mayor of each county or a designee of the Mayor of each county.
(4) A designee from the public utilities commission;
(5) A designee from the department of commerce and consumer affairs division of consumer advocacy;
(6) A designee from each water carrier operating in the state;
(7) A designee from the department of transportation; and
(8) A designee from the department of agriculture.
; and
BE IT FURTHER RESOLVED that task force is requested to submit a final report of its findings and recommendations, including any proposed legislation, to the legislature and the governor no later than twenty days before the convening of the regular session of 2022; and
BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Director of Transportation, and the mayor of each county.
Report Title:
DOT; PUC; Loans; Water Carriers; Task Force