Introduced Version




HOUSE BILL No. 1924

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 8-1-2-83.

Synopsis: IURC jurisdiction over mergers. Provides that, except in the case of rural electric membership corporations and certain nonprofit corporations, the following transactions require approval by the Indiana utility regulatory commission (IURC) after a hearing: (1) The reorganization of a public utility. (2) A transaction in which a public utility acquires control of a public utility, an out-of-state utility company, or a holding company. (3) A transaction in which a person acquires control of a public utility or the holding company of a public utility. (4) A transaction in which a holding company that controls at least one public utility acquires control of an out-of-state utility company.

Effective: July 1, 2001.



Moses, Fry


    January 17, 2001, read first time and referred to Committee on Commerce, Economic Development and Technology.




Introduced

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.

HOUSE BILL No. 1924


    A BILL FOR AN ACT to amend the Indiana Code concerning utilities and transportation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 8-1-2-83; (01)IN1924.1.1. -->     SECTION 1. IC 8-1-2-83 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 83. (a) No This section does not apply to:
        (1) a corporation organized or operating under IC 8-1-13; or
        (2) A corporation organized under IC 23-17, some of the members of which are local district corporations (as defined in IC 8-1-13-23).
     (b) As used in this section, "control" means the power to direct the management and policies of a public utility, utility company, or holding company through:
        (1) the ownership of voting securities or stock;
        (2) the terms of a contract; or
        (3) other means.
The term does not include power from holding an official position or corporate office with the public utility, utility company, or holding company. Control is presumed to exist if a person, directly or indirectly, owns, controls, has the power to vote, or has the

power to vote proxies that constitute at least twenty percent (20%) of the total voting power of the public utility, utility company, or holding company.
    (c) As used in this section, unless otherwise indicated, "holding company" means a company that has control over one (1) or more:
        (1) public utilities; or
        (2) utility companies.
    (d) As used in this section, "person" means an individual, a firm, a corporation, a company, a partnership, a limited liability company, an association, a trustee, a lessee, or a receiver.
    (e) As used in this section, "reorganization" means a transaction that, regardless of the means by which it is accomplished, results in:
        (1) a change in the ownership of a majority of the voting capital stock of a public utility;
        (2) a change in the ownership or control of an entity that owns or controls a majority of the voting capital stock of a public utility;
        (3) the merger of two (2) public utilities; or
        (4) the acquisition by one (1) public utility of substantially all assets of another public utility.
    (f) As used in this section, "utility company" has the same meaning as the definition of public utility under section 1 of this chapter, except that a utility company owns, operates, manages, or controls a plant or equipment located outside Indiana.
     (g) A public utility, as defined in section 1 of this chapter, shall may not do any of the following without the approval of the commission after hearing:
        (1) Sell, assign, transfer, lease, or encumber its stock, franchise, works, or system to any other person, partnership, limited liability company, or corporation. or
         (2) Contract for the operation of any part of its works or system by any other person, partnership, limited liability company, or corporation.     without the approval of the commission after hearing. And no such
         (3) Contract for or effect a reorganization of the public utility.
        (4) Acquire control, directly or indirectly, of a public utility, utility company, or holding company.
    (h) A person may not acquire control, directly or indirectly, of a public utility or the holding company of a public utility without the approval of the commission after a hearing.
     (i) A holding company that controls at least one (1) public utility

may not acquire control of a utility company without the approval of the commission after a hearing.
     (j) A public utility, except temporarily or in case of emergency and for a period of not exceeding thirty (30) days, shall may not make any special contract at rates other than those prescribed in its schedule of rates theretofore filed with the commission, and in force, with any other utility for rendering any service to or procuring any service from such other utility; without the approval of the commission. It shall be lawful, however, for any utility to make a contract for service to or from another utility at rates previously filed with and approved by the commission and in force.
    (b) (k) The approval of the commission of the sale, assignment, transfer, lease, or encumbrance of a franchise or any part thereof under this section shall not revive or validate any lapsed or invalid franchise, or enlarge or add to the powers and privileges contained in the grant of any franchise or waive any forfeiture. No such public utility shall directly or indirectly purchase, acquire, or become the owner of any of the property, stock, or bonds of any other public utility authorized to engage or engaged in the same or a similar business, or operating or purporting to operate under a franchise from the same or any other municipality or under an indeterminate permit unless authorized so to do by the commission.
    (c) (l) Nothing contained in this section shall prevent the holding of stock lawfully acquired before May 1, 1913, or prohibit, upon the surrender or exchange of said stock pursuant to a reorganization plan, the purchase, acquisition, taking, or holding by the owner of a proportionate amount of the stock of any new corporation organized to take over at foreclosure or other sale, the property of the corporation whose stock has been thus surrendered or exchanged.
    (d) (m) Every contract by any public utility for the purchase, acquisition, assignment, or transfer to it of any of the stock of any other public utility by or through any person, partnership, limited liability company, or corporation without the approval of the commission shall be void and of no effect, and no such transfer or assignment of such stock upon the books of the corporation pursuant to any such contract shall be effective for any purpose.