Bill Text: NY A02799 | 2011-2012 | 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 11-0)

Status: (Introduced - Dead) 2012-01-04 - referred to corporations, authorities and commissions [A02799 Detail]

Download: New_York-2011-A02799-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2799
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 20, 2011
                                      ___________
       Introduced by M. of A. JACOBS, BRENNAN -- Multi-Sponsored by -- M. of A.
         COLTON,  DINOWITZ,  ENGLEBRIGHT,  GALEF,  GOTTFRIED,  HOOPER, McENENY,
         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.
                                                                  LBD04286-01-1
       A. 2799                             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.