§271-18  Transfer of certificates of publicconvenience and necessity, contract carrier permits, and carrier property. (a)  For the purpose of the administration and application of subsections (a)and (b), the terms "carrier" includes any motor carrier subject tothis chapter, or any carrier subject to the act of any other state or any actof the Congress of the United States under which interstate or foreign commerceby land, sea, or air, is regulated.

(b)  No motor carrier shall sell, lease,assign, mortgage, or otherwise dispose of, or encumber the whole or any part ofits property necessary or useful in the performance of transportation servicesfor the public or any certificate of public convenience and necessity orpermit; nor shall any motor carrier, by any means, directly or indirectly,merge or consolidate its property, certificates of public conve­nience andnecessity or permits, or any part thereof, with any other carrier, withoutfirst having secured from the public utilities commission an order authorizingit so to do.  Every such sale, lease, assignment, mortgage, disposition,encumbrance, merger, or consolidation, made other than in accordance with theorder of the commission authorizing the same is void.

(c)  No carrier or person in control of acarrier shall, either directly or indirectly, purchase or acquire, take orhold, any part of the capital stock of any motor carrier organized or existingunder or by virtue of the laws of this State without having been firstauthorized to do so by the commission.  Every assignment, transfer of any stockby or through any person to any person, or otherwise, in violation of any ofthe provisions of this section is void and of no effect, and no transfer shallbe made on the books of any motor carrier.  Nothing herein shall prevent theholding of stock heretofore lawfully acquired.

(d)  Whenever a transaction is proposed undersubsection (b) or (c) of this section, the motor carrier or motor carriers, orperson or persons, seeking approval thereof shall present an application to thecommission in such form as the commis­sion may require and the commission maythereupon act upon the application with or without first holding a publichearing; provided that if requested, it shall afford reasonable opportunity forinterested parties to be heard.  If the commission finds that subject to suchterms and conditions as it shall find to be just and reasonable the proposedtransaction will be consistent with the public interests, the commission shallenter an order approving and authorizing the transaction, upon the terms andconditions, and with the modifications, so found to be just and reasonable.  Inpassing upon any transaction under subsection (b) or (c), the commission shallgive weight, among other considerations, to the effect of the proposedtransaction upon (1) adequate transportation service to the public, (2) othermotor carriers, and (3) the employees of any transferring motor carrier.

(e)  Nothing in this section shall be construedto require a motor carrier to secure from the commission authority to leasemotor vehicle equipment from another motor carrier for the purpose of meetingthe requirements of transportation, to execute any conditional sales contractfor the purchase of motor vehicle equipment or any note and chattel mortgage onmotor vehicle equipment securing the payment of all or any part of the purchaseprice of motor vehicle equipment; nor shall this section prevent the sale,lease, encumbrance, or other disposition by any motor carrier of property whichis not necessary or useful in the performance of its duties to the public, andany disposition of property by a motor carrier shall be conclusively presumedto be property which is not necessary or useful in the performance of itsduties to the public as to any purchaser, lessee, or encumbrancer dealing withsuch property in good faith and for value.

(f)  Pending the determination of anapplication filed with the commission for approval of a consolidation or mergerof the properties of two or more motor carriers, or of a purchase, lease, orcontract to operate the properties of one or more motor carriers, thecommission may, in its discretion and without hearings or other pro­ceedings,grant temporary approval, for a period not exceeding one hundred twenty days orfor such additional period as the determination of an application may require,of the operation of the motor carrier properties sought to be acquired by thepersons proposing in the pending application to acquire the properties, if it shallappear that failure to grant this temporary approval may result in destructionof or injury to such motor carrier properties sought to be acquired, or tointerfere substantially with their future usefulness in the performance ofadequate and continuous service to the public. [L 1961, c 121, pt of §2; Supp,§106C-16; HRS §271-18]

 

Case Notes

 

  As this chapter contains no provisions regarding dormancy,and "public convenience and necessity" is not a prerequisite totransfer of certificates of public convenience and necessity pursuant tosubsection (d), the public utilities commission was not required to permitintervenor carriers to argue those issues in proceedings regarding carrier'stransfer applications.  93 H. 45, 995 P.2d 776.

  Where the public utilities commission acted within itsprerogatives in treating bankrupt carrier's application as a request to permitother carriers to continue bankrupt carrier's existing service, and in doing soconsidered the public interest factors required under §271-1 and this section,§271-12 and the new service doctrine were inapposite to the case.  93 H. 45,995 P.2d 776.