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.