Bill Text: NJ A2438 | 2010-2011 | Regular Session | Introduced
Bill Title: Requires full and complete disclosure to the BPU by foreign corporations that own or control certain public utilities; prohibits majority ownership or control by foreign corporations of certain public utilities.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2010-03-04 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A2438 Detail]
Download: New_Jersey-2010-A2438-Introduced.html
Sponsored by:
Assemblywoman CHARLOTTE VANDERVALK
District 39 (Bergen)
Assemblyman SCOTT RUDDER
District 8 (Burlington)
SYNOPSIS
Requires full and complete disclosure to the BPU by foreign corporations that own or control certain public utilities; prohibits majority ownership or control by foreign corporations of certain public utilities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the ownership or control of certain public utilities and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Domestic corporation" means a corporation for profit organized under the laws of this State or another state for a purpose or purposes for which a corporation may be organized under N.J.S.14A:1-1 et seq.
"Essential services" means and includes electric generation service, electric related service, gas supply service, gas related service, water supply service and any other service deemed by the board to be relevant to the public interest.
"Foreign corporation" means a corporation for profit organized under the laws of a jurisdiction of a foreign nation for a purpose or purposes for which a corporation may be organized under N.J.S.14A:1-1 et seq.
"Subsidiary company" has the meaning provided for this term under 15 U.S.C. s. 79b.
2. a. Notwithstanding the provisions of any law, rule, regulation or order to the contrary, any foreign corporation or combination of foreign corporations which, either directly or through a subsidiary company or other business entity, owns or controls more than 50 percent of a public utility providing essential services to the residents and businesses of this State, shall, at the times and in the form required by the Board of Public Utilities, provide full and reasonable access to any of its books and records and other information of any kind of that corporation or combination of corporations, its subsidiary companies or other business entities, which pertain to the ownership or control by the corporation or combination of corporations, its subsidiaries or other business entities of such public utility.
b. Upon request by the board, any foreign corporation subject to subsection a. of this section shall provide, or cause to be provided, at the times and in the form and manner required by the board, a fully documented and supported analysis pertaining to the percentage of ownership or control of a public utility which provides essential services to the residents and businesses of this State.
3. Notwithstanding any
provision of law to the contrary, no foreign corporation or combination of foreign
corporations shall, either directly or through a subsidiary company or other
business entity, own or control more than 50 percent of any public utility
which provides essential services to the residents and businesses of this
State.
4. The board shall take appropriate action to require any foreign corporation or combination of foreign corporations to sell or otherwise divest ownership or control of a public utility held in violation of the provisions of section 3 of this act, in such form and manner that the board determines is necessary to transfer ownership or control of at least 51 percent of the public utility to a domestic corporation.
5. The provisions of this act shall be liberally construed in favor of full and complete disclosure to the board but the act shall not be construed to require premature or otherwise imprudent sale or divestment of ownership or control of a public utility that might jeopardize the provision of safe, adequate and proper services to the residents and businesses of this State.
6. a. Within 60 days after the effective date of this act, the board shall file an initial report with the Senate Commerce Committee, and the Assembly Telecommunications and Utilities Committee, or their successors, describing its findings with regard to foreign corporation ownership or control of public utilities providing essential services in this State. Each year thereafter, the board shall report on all sales or divestments of public utilities by foreign corporations and transfers to domestic corporations in compliance with this act.
b. Each report issued by the board after the initial report required under subsection a. of this section shall provide a description of the progress which the board has made since the previous report and since the enactment of this act in implementing the provisions of this act together with its recommendations, if any, to improve the implementation of this act to further protect the public interest.
7. The board may, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations to effectuate the purposes of this act.
8. This act shall take effect immediately.
STATEMENT
This bill is intended to
provide the Board of Public Utilities ("board") with greater
regulatory authority over foreign corporations and their subsidiaries or other
business entities that
own or control public utilities providing essential services to the residents
and businesses of this State.
The ownership or control by foreign corporations of public utilities providing essential services can have an adverse impact on the integrity of these utilities, and their ability to provide safe, adequate and proper service to residents and businesses of this State.
This bill requires full and complete disclosure to the board by the foreign corporation or combination of foreign corporations that own or control more than 50 percent of a public utility providing such vital services as electricity, gas and water to the residents and businesses of this State.
The bill further requires the board to take appropriate action to require any foreign corporation or combination of foreign corporations that own or control more than 50 percent of an essential public utility to sell or divest ownership of the public utility in such a way as to transfer ownership or control of at least 51 percent of the utility to a domestic corporation.
This bill also directs the board to report its initial findings to the Senate Commerce Committee, the Assembly Telecommunications and Utilities Committee or their successors, within 60 days after the effective date of the bill, and to thereafter issue reports on an annual basis. The reports are to include a description of the board's findings with respect to foreign ownership of essential public utilities, the progress made by the board in achieving compliance with the provisions of the bill and any recommendations to improve the implementation of the bill's provisions to further protect the public interest.
