Bill Text: NY A03782 | 2013-2014 | General Assembly | Introduced

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Bill Title: Prohibits public utility company revenues from being paid to any officer or director contingent upon a change in control (merger, acquisition, etc.) of such public utility; requires severance pay to be fully deductible as a business expense for federal tax purposes.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced - Dead) 2014-01-08 - referred to corporations, authorities and commissions [A03782 Detail]

Download: New_York-2013-A03782-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3782
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 29, 2013
                                      ___________
       Introduced by M. of A. JACOBS, BRENNAN -- Multi-Sponsored by -- M. of A.
         COLTON,  DINOWITZ,  ENGLEBRIGHT,  GALEF, GOTTFRIED, HOOPER, WEINSTEIN,
         WEISENBERG -- read once and referred to the Committee on Corporations,
         Authorities and Commissions
       AN ACT to amend the public service law, in relation to the use of reven-
         ues by public utilities
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  The public service law is amended by adding a new section
    2  107-a to read as follows:
    3    S 107-A. USE OF REVENUES BY PUBLIC UTILITY  COMPANIES.  1.  NO  PUBLIC
    4  UTILITY COMPANY SHALL USE REVENUES RECEIVED FROM THE RENDITION OF PUBLIC
    5  SERVICE WITHIN THE STATE TO ENTER INTO OR AMEND, DIRECTLY OR INDIRECTLY,
    6  ANY  AGREEMENT  CONTAINING  PROVISIONS WHICH INCREASE, DIRECTLY OR INDI-
    7  RECTLY, THE CURRENT OR FUTURE COMPENSATION OF ANY OFFICER OR DIRECTOR OF
    8  SUCH PUBLIC UTILITY COMPANY, WHERE THE EFFECTUATION OF SUCH AGREEMENT IS
    9  CONTINGENT UPON A CHANGE IN CONTROL OF SUCH PUBLIC  UTILITY  COMPANY  OR
   10  UPON  THE  EXISTENCE  OF  ANY  TENDER OFFER OR REQUEST OR INVITATION FOR
   11  TENDERS OF ANY CLASS OR SERIES OF SHARES OF SUCH PUBLIC UTILITY COMPANY.
   12    2. FOR PURPOSES OF THIS SECTION, "CHANGE IN  CONTROL"  MEANS  (A)  ANY
   13  MERGER  OR  CONSOLIDATION  OF  A  PUBLIC  UTILITY COMPANY WITH ANY OTHER
   14  CORPORATE ENTITY; (B) ANY TRANSFER  OF  A  SUBSTANTIAL  PORTION  OF  THE
   15  ASSETS OF A PUBLIC UTILITY COMPANY WITHOUT THE APPROVAL OF A MAJORITY OF
   16  THE BOARD OF DIRECTORS OF SUCH UTILITY; (C) ACQUISITION BY ANY PERSON OR
   17  ENTITY OF MORE THAN TWENTY-FIVE PER CENTUM OF THE VOTING SECURITIES OF A
   18  PUBLIC UTILITY COMPANY; (D) APPOINTMENT OF A RECEIVER FOR A PUBLIC UTIL-
   19  ITY  COMPANY;  OR (E) A CHANGE IN THE COMPOSITION OF THE BOARD OF DIREC-
   20  TORS OF A PUBLIC UTILITY COMPANY WHICH  REMOVES  THE  CURRENT  DIRECTORS
   21  FROM A MAJORITY.
   22    3.  IN  NO  EVENT SHALL THE CONSENT AND APPROVAL OF THE PUBLIC SERVICE
   23  COMMISSION BE GRANTED FOR ANY AGREEMENT FOR  SEVERANCE  COMPENSATION  OF
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03135-01-3
       A. 3782                             2
    1  ANY  OFFICER  OR DIRECTOR OF A PUBLIC UTILITY COMPANY UNLESS ITS COST IS
    2  FULLY DEDUCTIBLE AS A BUSINESS EXPENSE FROM FEDERAL TAXATION.
    3    4. THE PROVISIONS OF THIS SECTION SHALL NOT PROHIBIT ROUTINE INCREASES
    4  IN COMPENSATION, OR OTHER ROUTINE COMPENSATION AGREEMENTS, UNDERTAKEN IN
    5  THE ORDINARY COURSE OF BUSINESS OF A PUBLIC UTILITY COMPANY.
    6    S 2.  This act shall take effect immediately.