HomeMy WebLinkAboutORD 1990-119 1988-1992COUNTY OF HAWAII, ; " STATE OF HAWAII
BILL NO. 31 z
(Draft 2)
ORDINANCE NO. 90 119
AN ORDINANCE AMENDING CHAPTER 18 OF THE HAWAII COUNTY CODE
1983, RELATING TO PUBLIC TRANSPORTATION
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The purpose of this bill is to amend the
provisions of Chapter 18, Hawaii County Code 1Q83, as amended,
to remove the present limit on the number of taxicabs allowed
to operate in the County of Hawaii and establish a procedure by
which interested persons can apply to the Transportation
Commission for permission to operate a taxicab.
The Council finds that the present arbitrary limitation of
one taxicab per 1,7.00 resident population nn the island is not
in the best interests of the citizens of the County, and in
fact may he a violation of federal antitrust laws.
The Council finds that the present system of awarding
taxicab certificates by random drawing is not in the best
interests of the taxicab industry or the public because it does
not allocate new licenses to growing areas with high demand for
taxi service, and can result in an oversupply of taxicabs in
one geographic area and a corresponding shortage in another.
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The Council also finds that Section 46-16.5 of the Hawaii
Revised Statutes, as amended, empowers the County to regulate
entry into the business of providing public passenger vehicle
service within the jurisdiction of the County, and affirms that
the regulation of privately-owned public passenger vehicle
service is an essential governmental function.
The Council finds that this bill will establish a mechanism
for interested persons to apply to the Transportation
Commission for permission to operate taxicabs, and if they can
demonstrate that the public convenience and necessity requires
the service they propose to offer, allows the Commission to
grant an applicant permission to operate a taxicab.
SECTION 2. Chapter 18, article 1, division 3, section
18-6, Hawaii County Code 1983, as amended, is amended to read
as follows:
"Section 18-6. Required; hearing; issuance.
(a) No carrier operating upon and using the public
highways of the county shall furnish any service without
first obtaining from the commission a certificate declaring
that public convenience and necessity require the operation
and service.
(b) Before issuing any certificate the commission
shall hold a public hearing to determine whether there is a
need for the operation and service. Any carrier who was in
operation on May 8, 1972, shall be presumed to be engaged
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in an operation that is necessary to public convenience and
necessity. Every certificate issued whether an original
issuance or a renewal, shall [expire eight years following
the date of the issuance of_ the certificate] be valid for
an indefinite term. [The commission may authorize the
administrator to accept an application for renewal of a
certificate made not more than six months prior to the date
of expiration and to renew certificates and transfer
ownership of certificates without the need for a hearing.]
(c) The commission, after hearing, may suspend,
alter, amend, or revoke any certificate issued, or may
issue a temporary certificate. Every carrier shall operate
and furnish service in strict conformity with the terms and
provisions of the carrier's certificate [of convenience and
necessity], except in cases of emergency defined by the
commission."
SECTION 3. Chapter 18, article 1, division 3,
section 18-9, Hawaii County Code 1983, as amended, is amended
to read as follows:
"Section 18-9. Rates, routes, safety standards, and
insurance set by commission.
(a) The commission by order shall fix, prescribe, and
establish routes, schedules, rates, standards of safety,
and insurance requirements as set forth in this section.
All these matters shall be determined as to each carrier
upon the hearing in connection with the original
application for certificate of convenience and necessity,
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and thereafter, after a hearing upon application,
complaint, or the commission's own motion, may be changed,
amended or altered.
(b) Any rate, fare, and charge made or charged by any
carrier or by two or more carriers jointly shall be just
and reasonable. Any schedule and route shall be
established in accordance with the public convenience and
necessity. Any standard of safety shall accord with best
practices for the safety of the public. No common carrier
shall operate and use the public highways until it has
filed a bond or policy of insurance or other contract in
writing with the commission under the same conditions as
are required for common carriers [until] under the control
of the public utilities commission[.], except that in the
case of taxicabs, the insurance requirement shall be as set
forth in article 2 of this chapter.
(c) P7o hearing shall be held regarding any matter
covered by this section except after published notice, that
is, notice by publication in a daily newspaper of general
circulation in the county [for two days (including
Sundays), the first such publication to be at least fifteen
days prior to the date of hearing so noticed, and the
second at least two days prior to the hearing] in
accordance with the requirements of Chapter 91, HRS."
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SECTION 4. Chapter 18, article 2, division 1,
sections 18-32 and 18-33, Hawaii County Code 1983, as amended,
are deleted in their entirety as follows:
"(Section 18-32. Calculation of number of taxicabs
permitted.
(a) The number of taxicabs authorized to be licensed
to operate in the county shall be limited on the basis of
one taxicab for each twelve hundred resident population.
(b) The resident population for the county shall be
estimated annually by the county department of research and
development as of July 1st.
(c) If the annual count of population permits an
increase in the number of taxicabs, the director of finance
shall award the additional taxicab certificates of public
convenience and necessity to any interested and qualified
adult applicant by public drawing. If the population count
is lower than the previous year, the maximum number of
taxicabs allowed will be adjusted but those already
licensed will be permitted to continue operating unless
cancelled or revoked.
(d) Any taxicab licensed to operate as of January 18,
1971, shall be permitted to continue operating in spite of
any limitation to the contrary.
(e) Nothing in this section shall be construed to
prevent the replacement or substitution of a licensed
taxicab by another vehicle or prevent the sale of a
taxicab.]
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[Section 18-33. Drawing for certificates of public
convenience.
(a) The director of finance shall publish a notice
not less than two times on two separate days in a newspaper
of general circulation within the county. The notice shall
inform the public of the number of taxicabs that will be
available, the date and time when applications for
certificates of public convenience and necessary are due to
be turned in to the director of finance, and the date and
time of the public drawing to determine the new grantee of
certificate of convenience.
(b) All persons shall be entitled to have their names
submitted for public drawing on an application form
prepared by the director of finance or a reasonable
facsimile thereof. Fach application shall be for only one
taxicab certificate. A person may apply for any number of
taxicab certificates up to the total number available for
drawing.
(c) The number of alternate names that the director
of finance may draw may be more than the number of taxicab
certificates available
name is drawn first sh
public convenience and
taxicab, provided that
the applicant is found
for issuance. The applicant whose
311 be awarded the certificate of
necessity and the right to operate a
person is qualified to do so. If
to be unqualified to be awarded the
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certificate, the director may award the certificate to
another applicant whose name was chosen at the drawing in
the order that the name was drawn.
(d) Any applicant whose name is drawn, to be awarded
a certificate of public convenience and necessity, must
qualify and operate the taxicab within sixty days after the
applicant's name was drawn. Failure to do so will result
in the forfeiture of the right to be awarded the
certificate.
(e) A taxicab certificate award according co drawing
procedures of this section shall not be transferred or
leased during the first year after the date of the
certificate. The commission may, after hearing, suspend,
revoke or modify a certificate that has been transferred or.
leased, to another person during this first year.]"
SECTION 5. Chapter 18, article 2, division 1, Eawaii
County Code 1983, as amended, is amended by adding a new
section 18-32 to read as follows:
"Section 18-32. Certificate of public convenience
and necessity. No person or company shall operate a
taxicab without first obtaining from the commission a
certificate declaring that the public convenience and
necessity require the operation and service, in accordance
with Section 18-5 of this chapter. The procedure for
obtaining a certificate to operate a taxicab is here
established.
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(a) An applicant for a certificate to operate a
taxicab shall submit an application to the director at
least forty-five (45) days before a scheduled meeting of
the commission. The application shall be accompanied by a
non-refundable filing fee of $10.00 and shall contain the
following information:
(1) The full name and address of applicant.
(A) If applicant is a partnership, the full
name and address of all partners.
(B) If applicant is a corporation or
association, the full name and address of all the officers
and directors thereof.
(2) A statement detailing any previous
experience in the taxicab business, if any, of the
applicant, the partners, or if the applicant is a
corporation or association, the officers and directors
thereof.
(3) A criminal abstract of the applicant. If
the applicant is a partnership, then a criminal abstract of
the partners. If the applicant is a corporation or
association, then a criminal abstract of the officers,
directors, and supervising employees thereof, incl~ding the
general manager, if any.
(4) The number of taxicabs the applicant desires
to operate.
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(5) The passenger capacity of each vehicle the
applicant intends to use as a taxicab according to the
manufacturer's rating, along with the type of vehicle to be
used and the name of the manufacturer.
(6) F?ritten assurance that each vehicle employed
under this certificate shall be kept clean and in good
mechanical and physical condition at all times.
(7) The insurance proposed to be carried, the
amount and name of provider.
8) Details of the service to be provided
including the geographic area of the island to be served
and the hours of the proposed service.
(9) Any written evidence available to support
the contention by the applicant that the public convenience
and necessity justify the issuance of this certificate.
The burden of proof of this is on the applicant.
(b) The director shall review each application for
completeness and accuracy. Upon a determination by the
director that the application is complete in compliance
with this section, a public hearing on the application will
be scheduled for the next meeting of the commission.
Notice of the hearing will be given to the applicant, any
other interested parties as determined by the director, and
to_the public by publication of the notice of hearing in a
newspaper as required by Chapter 91, HRS.
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(c) The applicant will appear at the hearing and
present an overview of intended operations, experience, and
financial responsibility. If the applicant does not
appear, the commission may defer action on the application
until the next commission meeting. The director will
resent any evidence or recommendations as the director ma
deem necessary to the commission. Any other interested
parties may also appear and testify or submit written
testimony either in favor of or against the issuance of the
certificate.
d) Any certificate which is in effect at Julv 1
1990 to operate a taxicab shall continue to be valid for an
indefinite term as if it had been issued in accordance with
these provisions."
SECTIODI 6. Chapter 18, article 2, division 1, Hawaii
County Code 1983, as amended, is amended by adding a new
section 18-33 to read as follows:
"Section 18-33. Hearing; factors considered
revocation.
(a) After a hearing held in accordance with
section 18-32, the commission will either grant or refuse
to grant a certificate based on consideration of the
following factors:
(1) The current status of the public
transportation system in the county, including but not
limited to that system's current and future ability to
provide for the timely and effective movement of people•
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2) The demonstrated need, as shown by the
applicant for a certificate, for additional taxicab service
in the county that is not, or cannot be, accomplished by
existing companies;
(3) The financial responsibility of the
applicant;
4) In consideration of the current status of
the county's public transportation system, the ratio of
ulation in the area to be served to the number of
taxicabs currently in operation
(5) Any prior experience by the applicant in the
taxicab industry, and the moral character of the applicant;
(6) The interests of the applicant in
establishing a local business to legitimately serve the
citizens of this county as well as visitors to the island;
and
(7) Any other factors which the commission
deem advisable or necessary.
(b) Upon approval by the commission of an
application, an applicant will be issued a certificate.
Each certificate will authorize the applicant to operate
one taxicab. The certificate may contain such other terms
or conditions as the commission deems appropriate. It will
be a condition of the certificate that the applicant has
thirty days to comply with the requirements of this chapter
regarding taxicabs and obtain a taxicab license for the
current year.
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(c) Certificates to operate taxicabs are transferable
with the prior approval of the commission. An application
must be submitted for approval to the commission by the
proposed new owners in accordance with the requirements of
section 18-32 in the same manner as an application for a
new taxicab. The commission shall hold a hearing on the
proposed change of owner in the same manner as for a new
application, except that if the service is to be provided
under the same terms and conditions as provided in the
original certificate, the service will be assumed to be
justified by public convenience and necessity. Upon the
approval of a transfer of ownership, the new certificate
holder will have thirty days to comply with the
requirements of this chapter regarding taxicabs and obtain
a taxicab license in the certificate holder's name for the
current year.
(d) A successful applicant for a certificate who
fails to obtain a taxicab license for the current year
within thirty days after the certificate is granted shall
be subject to revocation proceedings by the commission
under section 18-8 of this chapter.
(e) An applicant whose application for a certificate
is denied by the commission shall receive in writing a
statement detailing the reasons for denial of the
application. An appeal of the decision of the commission
may be made to the circuit court of the third circuit in
accordance with section 18-13 of this chapter."
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SECTION 7. Material to be deleted is bracketed, New
material is underscored. In printing this ordinance, the
brackets, bracketed material, and underscoring need not be
included.
SECTION 8. If any provision of this ordinance or the
application thereof to any person or circumstances is held
invalid, such invalidity shall not effect other provisions or
applications of the ordinance which can be given effect without
the invalid provision or application, and to this end, the
provisions of this ordinance are declared to be severable.
SECTION 9. This ordinance shall take effect upon its
approval.
Hilo, Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
September 5, 1990
September S, 1990
September 19, 1990
September 26, 1990
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