Assembly Bill No. 139–Committee on
Commerce and Labor

 

CHAPTER..........

 

AN ACT relating to utilities; exempting certain public utilities from provisions governing stocks, security transactions, mergers, acquisitions, changes in control, and disposal or encumbrance of property; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

    Section 1. NRS 704.328 is hereby amended to read as follows:

    704.328  The provisions of NRS 704.322 to 704.326, inclusive,

shall not apply to any public utility engaged in [interstate] :

    1.  Interstate commerce if 25 percent or more of the operating

revenues of such public utility are derived from interstate

commerce.

    2.  The business of furnishing, for compensation, water or

services for the disposal of sewage, or both, to persons within this

state if the utility:

    (a) Serves 15 persons or less; and

    (b) Operates in a county whose population is 400,000 or more.

    Sec. 2.  NRS 704.329 is hereby amended to read as follows:

    704.329  1.  Except as otherwise provided in subsection 6, a

person shall not merge with, directly acquire, indirectly 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.

    2.  Any transaction that violates the provisions of this section is

void and unenforceable and is not valid for any purpose.

    3.  Before authorizing a proposed transaction pursuant to this

section, the Commission shall consider the effect of the proposed

transaction on the public interest and the customs in this state. The

Commission shall not authorize the proposed transaction unless the

Commission finds that the proposed transaction:

    (a) Will be in the public interest; and

    (b) Complies with the provisions of NRS 704.7561 to 704.7595,

inclusive, if the proposed transaction is subject to those provisions.

    4.  The Commission may base its authorization of the proposed

transaction upon such terms, conditions or modifications as the

Commission deems appropriate.

    5.  If the Commission does not issue a final order 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, and the proposed

transaction is not subject to the provisions of NRS 704.7561 to

704.7595, inclusive, the proposed transaction shall be deemed to be

authorized by the Commission.

    6.  The provisions of this section do not apply to:

    (a) The transfer of stock of a public utility doing business in this

state or to the transfer of the stock of an entity that holds 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.

    (b) Except as otherwise provided in this paragraph, a proposed

transaction involving a public utility doing business in this state

providing telecommunication services or an entity that holds a

controlling interest in such a public utility if, in the most recently

completed calendar year, not more than 10 percent of the gross

operating revenue of the public utility or the entity that holds a

controlling interest in the public utility was derived from intrastate

telecommunication services provided to retail customers in this state

by the public utility. Such a proposed transaction is not exempted

from the provisions of this section if:

        (1) Not later than 30 days after the date on which the person

undertaking the proposed transaction submits the notification

required by 15 U.S.C. § 18a, the regulatory operations staff of the

Commission or the Consumer’s Advocate requests an order from the

Commission requiring the person to file an application for

authorization of the proposed transaction;

        (2) The request alleges in sufficient detail that the proposed

transaction may materially affect retail customers of public utilities

in this state; and

        (3) The Commission issues an order requiring the person to

file an application for authorization of the proposed transaction.

    (c) A public utility engaged in the business of furnishing, for

compensation, water or services for the disposal of sewage, or

both, to persons within this state if the utility:

        (1) Serves 15 persons or less; and

        (2) Operates in a county whose population is 400,000 or

more.

    7.  As used in this section:

    (a) “Person” means:

        (1) A natural person;

        (2) Any form of business or social organization and any

other nongovernmental legal entity, including, without limitation, a

corporation, partnership, association, trust or unincorporated

organization;

        (3) A government or an agency or instrumentality of a

government, including, without limitation, this state or an agency or

instrumentality of this state; and

        (4) A political subdivision of this state or of any other

government or an agency or instrumentality of a political

subdivision of this state or of any other government.

    (b) “Transaction” means a merger, acquisition or change in

control described in subsection 1.

    Sec. 3.  NRS 704.668 is hereby amended to read as follows:

    704.668  1.  It is unlawful for any public utility which serves

3,000 or fewer persons and furnishes water or services for the

disposal of sewage, or both, to:

    (a) Sell, lease or otherwise dispose of; or

    (b) Encumber by mortgage, deed of trust, security agreement or

otherwise,

any or all of its real property or goods, including fixtures, or any

combination thereof which are necessary in the present or future

performance of its duties to the public regarding water or sewage

without first obtaining approval from the Commission which

authorizes the public utility to do so. This limitation applies to any

interest in real property, including, without limitation, easements

and water rights.

    2.  Any such action:

    (a) Which is not taken in accordance with the approval of the

Commission; or

    (b) Which is taken without obtaining the approval from the

Commission,

is void.

    3.  If the public utility is disposing of all of its real property and

goods, the Commission shall hold a public hearing on the matter

before determining whether to approve the disposal.

    4.  The Commission shall adopt regulations which set forth the

types and quantities of property and goods that are necessary in the

performance of the duties of the various classes of public utilities.

    5.  The provisions of this section are not intended to limit the

regulatory authority of the Commission granted in other sections of

this chapter.

    6.  The provisions of this section do not apply to a public

utility engaged in the business of furnishing, for compensation,

water or services for the disposal of sewage, or both, to persons

within this state if the utility:

    (a) Serves 15 persons or less; and

    (b) Operates in a county whose population is 400,000 or more.

 

    Sec. 4.  This act becomes effective upon passage and approval.

 

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