HAR Title 6, Chapter 65, PUC

DEPARTMENT OF BUDGET AND FINANCE

Repeal of State of Hawaii, Public Utilities Commission, Rules and Regulations Governing the

Construction and Filing of Tariffs and Tariff

Changes by Water Common Carriers of Property

and/or Passengers Between Points in the

State of Hawaii, General Order No. 4-A,

Repeal of State of Hawaii, Public Utilities Commission, Rules and Regulations Governing the

Uniform System of Accounts for Water

Carriers Transporting Passengers and/or

Property Between Points in the State of

Hawaii, General Order No. 5-A, and

Adoption of State of Hawaii,

Public Utilities Commission,

"Water Carriers,"

Chapter 6-65, Hawaii Administrative Rules

August 6, 1999

SUMMARY

1. State of Hawaii, Public Utilities Commission, Rules and Regulations Governing the Construction and Filing of Tariffs and Tariff Changes by Water Common Carriers of Property and/or Passengers Between Points in the State of Hawaii, General Order No. 4-A, is repealed.

2. State of Hawaii, Public Utilities Commission, Rules and Regulations Governing the Uniform System of Accounts for Water Carriers Transporting Passengers and/or Property Between Points in the State of Hawaii, General Order No. 5-A, is repealed.

3. Chapter 6-65, Hawaii Administrative Rules, entitled "Water Carriers," is adopted.

HAWAII ADMINISTRATIVE RULES

TITLE 6

DEPARTMENT OF BUDGET AND FINANCE

CHAPTER 65

WATER CARRIERS

Subchapter 1 General Provisions

'6-65-1 Purpose and scope of chapter 6-65

'6-65-2 Definitions

'6-65-3 Tariff filing requirements

'6-65-4 Tariff open to public inspection

'6-65-5 Tariff change - posting

'6-65-6 Power of attorney

''6-65-7 to 11 (Reserved)

Subchapter 2 Tariff Format and Contents, Supplement, Rates, Sailing Schedule, Transfer of Tariffs, Change in Water Carrier's Legal Name

'6-65-12 Tariff format - generally

'6-65-13 Tariff content

'6-65-14 Tariff page

'6-65-15 Supplement

'6-65-16 Joint routes and rates

'6-65-17 Class rates for property carriage

'6-65-18 Exceptions to class rates

'6-65-19 Lowest rate applicable

'6-65-20 Sailing schedules

'6-65-21 Use of "all points"

'6-65-22 Transfer of tariffs

'6-65-23 Change in water carrier tariff's legal name

''6-65-24 to 29 (Reserved)

Subchapter 3 Tariff Change or Revision, General Rate Increase, Temporary Rate Increase

'6-65-30 Tariff changes or revisions

'6-65-31 General rate increase - supporting documents and information

''6-65-32 to 37 (Reserved)

Subchapter 4 Tariff - Protest, Rejection, Suspension and Investigation

'6-65-38 Protest of water carrier tariff change

'6-65-39 Tariff - rejection

'6-65-40 Tariff - approval; suspension and

investigation

'6-65-41 Short notice tariff filing

''6-65-42 to 46 (Reserved)

Subchapter 5 Payment, Shipping Documents, Tickets

'6-65-47 Payment of rates and charges for property carriage

'6-65-48 Bills of lading and shipping documents

'6-65-49 Issuance of tickets to passengers for

transportation and shipping documents for

property accompanying passengers

''6-65-50 to 55 (Reserved)

Subchapter 6 Financial and Statistical Reporting

'6-65-56 Financial and statistical reports

'6-65-57 Books of accounts

'6-65-58 Accounting period

'6-65-59 Method of accounting

'6-65-60 Supporting documentation

'6-65-61 Records to be maintained within the State

'6-65-62 Preservation of records

'6-65-63 Allocation of common expenses

'6-65-64 Depreciation

''6-65-65 to 69 (Reserved)

'6-65-1

Appendix A - Power of Attorney

Historical note: This chapter is based substantially upon the Public Utilities Commission, State of Hawaii, General Order No. 4-A, Rules and Regulations Governing the Construction and Filing of Tariffs and Tariff Changes by Water Common Carriers of Property and/or Passengers. [Eff 4/22/76; R ]

Historical note: This chapter is also based substantially upon the Public Utilities Commission, State of Hawaii, General Order No. 5-A, Rules and Regulations Governing the Uniform System of Accounts for Water Carriers Transporting Passengers and/or Property. [Eff 4/22/76; R ]

SUBCHAPTER 1

GENERAL PROVISIONS

'6-65-1 Purpose and scope of chapter 6-65. This chapter governs the:

(1) Form and content of tariffs of water carriers of property and passengers, and the information and data to be submitted for the establishment of new or revised rates, fares, or charges; and

(2) Filing of financial and statistical information by water carriers of property and passengers. [Eff ] (Auth: HRS ''269-6, 271G-7) (Imp: HRS ''271G-2, 271G-7)

'6-65-2

'6-65-2 Definitions. As used in this chapter, unless the context clearly requires otherwise:

"Basic tariff" means the current tariff on file with the commission. A basic tariff may be added to from time to time through supplements.

"Certificate of public convenience and necessity" means a certificate to operate as a water carrier, issued by the commission pursuant to ''269-20 and 271G‑10, HRS.

"Commission" means the public utilities commission of the State.

"Commodity rate" means the specific rate applicable to a commodity, as described in a tariff.

"Consumer advocate" means the director of the department of commerce and consumer affairs of the State. The division of consumer advocacy provides administrative support to the director.

"General rate increase" means a partial or flat increase in the general level of the rates or charges for revenue purposes or to increase the rate of return. None of the following constitutes a general rate increase:

(1) Establishment of a fare, rate, or charge for a new service;

(2) Adjustment of or a change in a particular fare, rate, or charge for the purpose of eliminating inequities, preferences, or discrimination; or

(3) Increase in fares, rates, or charges resulting from a commission-approved automatic rate adjustment clause or cost recovery mechanism.

"HRS" means the Hawaii Revised Statutes.

"Issuing carrier or agent" means the water carrier or person authorized by the water carrier to issue and publish tariffs on behalf of the carrier.

"Joint routes and rates" mean routes and rates that result from two or more water carriers, or from a water carrier and motor carrier, providing transportation service over a route at a through rate.

'6-65-3

"Major accounts" mean those accounts as defined in the commission's Uniform System of Accounts for Water Common Carriers that represent large or general classes of financial statement items.

"Person" means the same as in '271G-5, HRS.

"Point of destination" means the precise location where property is delivered into the custody of the consignee or its agent.

"Point of origin" means the precise location where property is delivered into the custody of the water carrier by the consignor or its agent.

"Rate" means the same as in '271G-5, HRS.

"State" means the State of Hawaii.

"Supplement" means an addition or additions to the basic tariff.

"Symbol" means an identifying mark or letter to denote changes to a tariff.

"Tariff" means a schedule of rates, fares, charges, classifications, and sailings and the rules, regulations, and practices affecting any rate, fare, charge, classification, or sailing. It includes the schedules in a basic tariff and in supplements. As the context requires, "tariff" also means the specific rates, fares, or charges imposed in a schedule.

"Tariff change" or "tariff revision" means any change, revision, or addition to or deletion of a tariff.

"Through rate" means a single rate or combination of rates that determines the charge from a point of origin to a point of destination.

"Water carrier" or "common carrier by water" means the same as in '271G-5, HRS. [Eff ] (Auth: HRS ''269-6, 271G-7) (Imp: HRS ''269-6, 271G‑5, 271G-7)

'6-65-3 Tariff filing requirements. (a) A water carrier may not commence any service without first having a tariff for the service approved by and on file with the commission.

'6-65-3

(b) A tariff must be filed with the commission in the original and three copies.

(c) A water carrier may file the tariff either in person at the commission's office or by United States mail, postage prepaid, and addressed to the commission at its main office.

(d) A tariff may be filed by the water carrier or by its agent appointed as provided in '6-65-6.

[Eff ] (Auth: HRS ''269‑6, 271G-7, 271G‑17) (Imp: HRS ''269-6, 271G-7, 271G‑17)

'6-65-4 Tariff open to public inspection. A water carrier shall make all of its tariffs available for public inspection or examination at:

(1) Its principal place of business; and

(2) Each of its stations or offices. [Eff ] (Auth: HRS ''269‑6, 271G-7, 271G-17) (Imp: HRS ''269-6, 271G‑7, 271G-16, 271G-17)

'6-65-5 Tariff change - posting. No change may be made in any rate, fare, charge, classification, or sailing or in any rule, regulation, or practice affecting the rate, fare, charge, classification, or sailing, except upon forty-five days' notice of the proposed change filed with the commission and published and posted at the water carrier's principal place of business and at each of the carrier's stations and offices; provided that:

(1) A change in a fuel surcharge approved by the commission may be made after thirty days' notice of the proposed change filed and posted as provided above; and

(2) Any change or addition to a tariff, approved on short notice filing as provided in '6‑65‑41, may be made on less than forty‑five days' notice. [Eff ] (Auth:

'6-65-11

HRS ''269-6, 271G-7, 271G-17) (Imp: HRS ''269-6, 271G‑7, 271G-16, 271G-17)

'6-65-6 Power of attorney. (a) A water carrier may appoint an agent to file and publish a tariff or supplement in which the water carrier participates by executing a power of attorney in favor of the agent. The power of attorney must be in the form set forth in Appendix A. The agent must be an organization expressly authorized by the commission to publish and file tariffs on behalf of water carriers.

(b) A power granted an agent by a power of attorney may not be delegated by the agent to any other person. A water carrier may not grant powers of attorney to two or more agents which, if exercised, would result in conflicts in rates or other conditions.

(c) A water carrier may revoke a power of attorney upon forty-five days' written notice to the commission and the agent. Upon the revocation of a power of attorney, the water carrier may appoint a new agent, and the water carrier or its new agent shall file a revision to its tariffs reflecting the change in agency. Such a revision is subject to the notice provision provided in '6-65-5.

(d) When two or more water carriers join in a through rate filed by an agent, all such carriers joining in the through rate shall execute powers of attorney in favor of the agent for purposes of filing the through rate. [Eff ] (Auth: HRS ''269-6, 271G-7, 271G-17) (Imp: HRS ''269-6, 271G-7, 271G-16, 271G-17)

''6-65-7 to 11 (Reserved)

'6-65-12

SUBCHAPTER 2

TARIFF FORMAT AND CONTENTS, SUPPLEMENT, RATES,

SAILING SCHEDULE, TRANSFER OF TARIFFS,

CHANGE IN WATER CARRIER'S LEGAL NAME

'6-65-12 Tariff format - generally. (a) Each tariff and supplement must be typewritten on paper 8‑1/2 x 11 inches in size.

(b) Each page of a tariff or supplement must:

(1) Be in a form suitable for insertion into a looseleaf binder and contain margins at least 5/8 inches wide on the binding edge; and

(2) Be numbered. The title page may be page 1 or simply labeled "Title Page" with the next succeeding page numbered page 1.

(d) Each tariff and supplement filed with the commission must comply with subsections (a), (b), and (c). For access by the general public, including its customers, the water carrier may maintain its tariffs and supplements through an electronic website; provided that hard copies must be made available, upon request. [Eff ] (Auth: HRS ''269-6, 271G-7, 271G‑17) (Imp: HRS ''269-6, 271G-7, 271G-17)

'6-65-13 Tariff content. (a) A tariff must contain the following:

(1) Title page;

(2) Check sheet;

(3) Table of contents;

(4) Listing of water carriers participating in the tariff;

(5) Definitions of technical and other important terms used in the tariff;

'6-65-13

(6) Rules;

(7) Index of stations and points for passenger carriage;

(8) Index of commodities for property carriage, where rates are established for specific commodities;

(9) List of zones for property carriage, where zone rates apply;

(10) Table of fares or rates and charges;

(11) Explanation of abbreviations, symbols, and reference marks used in the tariff; and

(12) Sailing schedules.

Subsections (b) to (l) define each of the content matter listed in subsection (a), except item (5), which is self-explanatory.

(b) The title page must bear the name of the water carrier. The name must be the same as that appearing on the carrier's certificate of public convenience and necessity (or application for a certificate, if none has been issued). If a trade name is used, the name of the carrier or partners must precede the trade name.

Example: John Doe and William Doe

Doing Business as

ABC Water Carrier

If two or more water carriers join in a through rate, the names of all participating carriers must be shown. The title page must also contain:

(1) The name, title, and street address of the officer or agent issuing the tariff;

(2) A brief description of the tariff contents, including zones and points covered by the tariff; and

(3) A reference to the classification tariff, if a classification of articles is published in a separate tariff.

Examples:

"Governed, except as otherwise provided, by the (name of classification) of ABC Company, PUC No. xxx, as modified by supplement or successive issues."

'6-65-13

"For reference to governing classification and other governing publications, see Item xx, Page yy, as amended."

Example: Page Revision

Title 4th

1 3rd

2 Original.

If the tariff has less than five pages, including the title page, the check sheet may be omitted.

(d) The table of contents must list in alphabetical order the subject covered by the tariff. For each subject, reference must be made to the page on which the subject may be found. If the tariff has less than five pages, including the title page, and the title page or the interior arrangement plainly discloses the contents, the table of contents may be omitted.

(e) A listing of water carriers participating in the tariff is necessary where the tariff is filed by an agent representing a number of water carriers, except that if the number of participating water carriers is less than five, the participating water carriers may be listed on the title page.

(f) The rules must clearly define the applicability of the fares or rates and charges specified in the tariff and the scope, nature, and limitations of services covered by the tariff.

(g) The index of stations and points for passenger carriage must list in alphabetical order all stations and points from and to which the tariff applies, together with a reference to the page of the tariff where the corresponding fares are noted. No index is necessary if the tariff is less than five pages, including the title page, or if the fares are logically presented in a table or grouped in the same section of the tariff.

'6-65-13

(h) The index of commodities for property carriage must list in alphabetical order the commodities to which specific rates are specified in the tariff. For each commodity, reference must be made to the page of the tariff or to the item where the rate for the commodity is noted. No index is necessary if the tariff is less than five pages, including the title page, or if the rates to each destination are arranged by commodities, listed in alphabetical order.

(i) The list of zones for property carriage, where zone rates apply, must describe the boundaries of each zone and include a map for each zone.

(j) The table of fares or rates and charges must be expressed in cents or dollars and cents. In addition:

(1) For passenger carriage, the table must identify the points between which and the routes to which each fare applies;

(2) For property carriage, the table must express the rates and charges in terms of an explicit, definable measure commonly used and understood in the trade, such as per 100 pounds, per mile, per hour, per cubic foot, per ton, per container, etc.;

(3) For property carriage, if a rate or charge is based on distances from a point of origin to a point of destination, the table must show the mileage and indicate how the mileage was determined; and

(4) For property carriage, where rates are stated in terms of per package or per bundle, the table must state the specifications for the package or bundle.

(k) An explanation of all abbreviations, symbols, and reference marks used in the tariff must appear on each page of the tariff where the abbreviations, symbols, or reference marks are used, except that when abbreviations, symbols, and reference marks are used consistently throughout the tariff, a general explanation of the abbreviations, symbols, and

'6-65-13

reference marks may be placed in a separate section of the tariff.

(l) Sailing schedules must comply with the requirements of '6-65-21. [Eff ] (Auth: HRS ''269-6, 271G-7, 271G-17) (Imp: HRS ''269-6, 271G‑7, 271G-17)

'6-65-14 Tariff page. (a) Each tariff page must contain the following information:

(1) Name of the water carrier or agent issuing the tariff;

(2) Name and number of the tariff;

(3) Page number of the tariff. If the page is a revised page, the number of the revision must precede the page number (e.g., "4th revised page 25");

(4) Date of the issuance of the page or revised page and its contents; and

(5) Effective date of the page and its contents.

(b) The last page of the tariff must contain the notation, "The End." [Eff ] (Auth: HRS ''269-6, 271G-7, 271G-17) (Imp: HRS ''269-6, 271G‑7, 271G-16, 271G-17)

'6-65-15 Supplement. Each supplement to a basic tariff must be consecutively numbered, starting with "Supplement No. 1." The supplement must identify on the title page the basic tariff to which it is a supplement and briefly describe the nature of the supplement. In addition to meeting the requirement of '6-65-13, each page of the supplement must contain the following:

(1) The supplement number immediately below the name and number of the tariff to which it is a supplement; and

(2) The supplement number preceding the page number (or revised page number) in the upper right hand corner of the page.

'6-65-17

[Eff ] (Auth: HRS ''269‑6, 271G-7, 271G-17) (Imp: HRS ''269-6, 271G‑7, 271G-16, 271G-17)

'6-65-16 Joint routes and rates. Water carriers:

(1) May establish joint routes and through rates with one another and with motor carriers engaged in common carriage; and

(2) Shall establish reasonable rules governing these rates.

Interline revenues are to be divided by agreement between the participating carriers. All joint routes and through rates must comply with section 271G-25, HRS, and if a motor carrier is involved, with section 271-35, HRS. [Eff ] (Auth: HRS ''269‑6, 271G-7, 271G-17) (Imp: HRS ''269-6, 271G-7, 271G-16, 271G-25)

'6-65-17 Class rates for property carriage. (a) Water carriers of property may group articles into classes and establish class rates. The classification must clearly describe the commodities included in each class, the ratings assigned to the classes, and relevant rules. The rules must precede the classification of articles and be consecutively numbered and separately indexed.

(b) The classification of articles must be published either in the rate tariff or in a separate classification tariff. When published in a separate classification tariff, the classification tariff must:

(1) Make reference to the class rates in the rate tariff;

(2) Contain an alphabetical list of all articles listed, unless the number of articles is so small that the tariff plainly discloses its contents; and

'6-65-17

(3) Identify the water carriers participating in the classification tariff.

(c) A carrier participating in class rates or its agent shall not publish separate duplicative or conflicting class or commodity rates. [Eff ] (Auth: HRS ''269-6, 271G-7, 271G‑17) (Imp: HRS ''269-6, 271G-7, 271G-16, 271G‑17)

'6-65-18 Exceptions to class rates. (a) A rate for an article lower than the rates for classes of articles must be published as a commodity rate, or if the article is otherwise included in a class of articles for which a class rate has been established, as an exception to the class. Exceptions must be published as part of a tariff of class rates under the heading "Exceptions to Classification" or in a separate tariff. If a separate tariff of exceptions is published, specific reference to the exceptions must be made in all rate tariffs where the exceptions are applicable.

(b) If a tariff establishes a commodity rate, the class rate on the same article between the same points or zones via the same route does not apply unless the tariff that establishes the commodity rate explicitly allows either the commodity or the class rate to be used. The provisions of this subsection must be included in the classification tariff.

[Eff ] (Auth: HRS ''269-6, 271G-7) (Imp: HRS ''269-6, 271G-7, 271G-16, 271G-17)

'6-65-19 Lowest rate applicable. (a) If a water carrier of property has a tariff containing classification or commodity rates, the water carrier must observe and incorporate the following rule in its tariff:

'6-65-21

When a classification rate and a commodity rate are named between specific points, the lower of the rates is the lawful rate, unless some combination of classification rates or commodity rates or classification and commodity rates makes an even lower rate, in which case the lowest rate or combination of rates is the applicable rate.

(b) A water carrier of passengers must observe and incorporate the following rule in its tariff:

When a combination of fares makes a lower fare than the published through fare, the combination is the lawful fare and must be applied. [Eff ] (Auth: HRS ''269-6, 271G-7) (Imp: HRS ''269-6, 271G‑7, 271G-16)

'6-65-20 Sailing schedules. (a) The cargo sailing schedule, with departure and arrival dates and with time of departure and arrival, must be published in an appropriate section of each tariff. The publication does not alter the water carrier's duties with respect to the receipt and delivery of cargo as established by statutory or common law.

(b) The passenger sailing schedule with departure dates and times must be published in an appropriate section of each tariff. [Eff ] (Auth: HRS ''269-6, 271G-7, 271G-17) (Imp: HRS ''269‑6, 271G-7, 271G-16)

'6-65-21 Use of "all points." The term "all points" or similar terms may not be used in any tariff to indicate the points from or to which fares apply. [Eff ] (Auth: HRS ''269-6, 271G-7, 271G‑7) (Imp: HRS ''269-6, 271G-7, 271G-16)

'6-65-22

'6-65-22 Transfer of tariffs. (a) When a certificate of public convenience and necessity or other operating right is transferred, the transferee carrier may adopt the tariffs and other instruments issued by or on behalf of the transferor carrier, if permitted by the commission's order authorizing the transfer of the operating rights. The transferee carrier shall file three copies of the adoption notice with the commission.

(b) Upon filing of the adoption notice with the commission, the transferee carrier shall serve a copy of the adoption notice on each agent that publishes a tariff containing rates or other provisions in which the transferor carrier participated.

(c) Upon filing of the adoption notice, the transferee carrier shall supplement or reissue each tariff issued by the transferor carrier indicating that the tariff has been adopted by the transferee carrier. The tariff supplement or reissue must be consistent with the commission order authorizing the transfer.

(d) If the transferee carrier elects not to adopt the tariffs issued by the transferor carrier, the transferee carrier shall file a temporary adoption notice and new tariffs not later than ten days after the effective date of the commission order authorizing the transfer of the operating authority. The new tariffs are effective forty-five days after their filing, unless suspended by the commission for a longer period. [Eff ] (Auth: HRS ''269-6, 271G-7) (Imp: HRS ''269-6, 271G-7, 271G-14, 271G-17)