The passage of HB372 is poised to impact the regulatory framework governing how water common carriers operate in Hawaii. By removing the need for PUC approval on long-term lease agreements, the bill effectively grants carriers greater autonomy in their financial dealings. Such a change could enhance operational efficiencies and potentially reduce bureaucratic delays that hinder timely decisions regarding facility improvements or expansions. On the flip side, there are concerns that reducing regulatory oversight might lead to less accountability for water carriers, impacting service reliability or financial integrity.
Summary
House Bill 372 amends the Hawaii Revised Statutes, specifically the section relating to the issuance of securities by water common carriers. The primary purpose of this bill is to eliminate the requirement for these carriers to obtain prior approval from the Public Utilities Commission (PUC) for executing long-term leases that exceed three years or for engaging in leverage leases. This change is intended to streamline processes for water carriers, potentially facilitating their financial maneuvers and operational flexibility.
Contention
Opposition to this bill may arise primarily from regulatory advocates and public interest groups who argue that the removal of mandatory approval could pose risks to environmental and public welfare standards. Critics assert that oversight mechanisms are critical to ensure that water carriers do not engage in financially harmful practices that could adversely affect their ability to provide reliable services to the community. Therefore, the debate surrounding HB372 centers on balancing operational flexibility for water carriers against the necessity of regulatory safeguards.