Assembly Bill No. 581

Assembly Bill No. 581-Committee on Government Affairs

CHAPTER

604

AN ACT relating to public utilities; prohibiting certain transactions relating to public utilities without the prior authorization of the public service commission of Nevada; providing a penalty; and providing other matters properly relating thereto.

[Approved July 16, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 704 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Except as otherwise provided in subsection 4, no person may merge with, acquire through a subsidiary or affiliate, or otherwise directly or indirectly obtain control of a public utility doing business in this state or an entity that holds a controlling interest in such a public utility without first submitting to the commission an application for authorization of the proposed transaction and obtaining authorization from the commission pursuant to subsection 2. Any merger, acquisition or change in control in violation of this section is not valid for any purpose.
2. Before authorizing the merger, acquisition or change in control of a public utility doing business in this state, the commission shall consider the effect of the proposed transaction. If the commission finds that the proposed merger, acquisition or change in control is in the public interest, the commission shall authorize the proposed transaction.
3. If the commission does not issue a final determination regarding the proposed transaction within 180 days after the date on which an application or amended application for authorization of the proposed transaction was filed with the commission, the transaction shall be deemed approved.
4. The provisions of this section do not apply to the transfer of stock of a public utility doing business in this state or to the transfer of the stock of an entity holding a controlling interest in such a public utility, if a transfer of not more than 25 percent of the common stock of such a public utility or entity is proposed.
Sec. 2. NRS 704.410 is hereby amended to read as follows:
704.4101. Any public utility subject to the provisions of NRS 704.005 to 704.751, inclusive, to which a certificate of public convenience and necessity has been issued pursuant to NRS 704.005 to 704.751, inclusive, and section 1 of this act, may transfer the certificate to any person qualified under NRS 704.005 to 704.751, inclusive, and section 1 of this act, but the transfer is not valid for any purpose until a joint application to make the transfer has been made to the commission by the transferor and the transferee, and the commission has authorized the substitution of the transferee for the transferor.
2. The commission may direct that a hearing be had in the matter of the transfer. If the commission determines that a hearing should be held, the hearing must be noticed and conducted in the same manner as other contested hearings before the commission.
3. The commission has the sole discretion to direct that a hearing be held if the application seeks to transfer the certificate from a person or partners to a corporation when the officers of the corporation will be substantially the same person or partners.
4. The commission may dispense with a hearing if, upon the expiration of the time fixed in the notice thereof, no protest to the proposed transfer has been filed by or on behalf of any interested person.
5. In determining whether the transfer of a certificate of public convenience and necessity to an applicant transferee should be authorized, the commission must take into consideration:
(a) The utility service performed by the transferor and the proposed utility service of the transferee;
(b) Other authorized utility services in the territory for which the transfer is sought; and
(c) Whether the transferee is fit, willing and able to perform the services of a public utility and whether the proposed operation will be consistent with the legislative policies set forth in NRS 704.005 to 704.751, inclusive [.] and section 1 of this act.
6. The commission may make such amendments, restrictions or modifications in a certificate upon transferring it as the public interest requires.
7. No transfer is valid beyond the life of the certificate transferred.
[8. No transfer of stock of a public utility subject to the jurisdiction of the commission is valid without prior approval of the commission if the effect of the transfer would be to change corporate control of the public utility or if a transfer of 15 percent or more of the common stock of the public utility is proposed.]
Sec. 3. NRS 704.640 is hereby amended to read as follows:
704.640Any person who:
1. Operates any public utility to which NRS 704.005 to 704.751, inclusive, and section 1 of this act, applies without first obtaining a certificate of public convenience and necessity or in violation of its terms;
2. Fails to make any return or report required by NRS 704.005 to 704.751, inclusive, and section 1 of this act, or by the commission pursuant to NRS 704.005 to 704.751, inclusive [;] , and section 1 of this act;
3. Violates, or procures, aids or abets the violating of any provision of NRS 704.005 to 704.751, inclusive [;] , and section 1 of this act;
4. Fails to obey any order, decision or regulation of the commission;
5. Procures, aids or abets any person in his failure to obey the order, decision or regulation; or
6. Advertises, solicits, proffers bids or otherwise holds himself out to perform as a public utility in violation of any of the provisions of NRS 704.005 to 704.751, inclusive, and section 1 of this act,
shall be fined not more than $500.
Sec. 4. This act becomes effective upon passage and approval.
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