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A07167 Summary:

A07167 Actions:

A07167 Floor Votes:

A07167 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7167--E
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                       May 3, 2013
                                       ___________
 
        Introduced by M. of A. PAULIN, BUCHWALD, JAFFEE, GALEF, STIRPE, BOYLAND,
          OTIS  --  Multi-Sponsored by -- M. of A. ABBATE, COOK, HOOPER, MARKEY,
          MILLMAN, SCHIMEL, SOLAGES, TITONE -- read once  and  referred  to  the
          Committee  on  Corporations,  Authorities and Commissions -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted

          to said committee -- again reported from said  committee  with  amend-
          ments,  ordered reprinted as amended and recommitted to said committee
          -- reported and referred to the Committee on Rules -- amended  on  the
          special  order of third reading, ordered reprinted as amended, retain-
          ing its place on the special order  of  third  reading  --  passed  by
          Assembly  and  delivered to the Senate, recalled from the Senate, vote
          reconsidered, bill amended, ordered reprinted, retaining its place  on
          the  special  order  of third reading -- ordered to a third reading --
          committed to the Committee on Corporations,  Authorities  and  Commis-
          sions  --  committee  discharged,  bill  amended, ordered reprinted as
          amended and recommitted to said committee
 
        AN ACT to amend the public service law, in relation to the  issuance  of

          stocks,  bonds  and  other  forms  of  indebtedness for the purpose of
          expanding broadband services
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Section 101 of the public service law, as amended by chap-
     2  ter 443 of the laws of 2000, is amended to read as follows:
     3    § 101.  Authority to issue stock, bonds and  other  forms  of  indebt-
     4  edness.    A  telegraph or telephone corporation may, when authorized by
     5  the commission, issue stock, bonds, notes or other evidences of  indebt-
     6  edness  payable  at  periods  of  more than twelve months after the date
     7  thereof, or a receiver of such a corporation, if duly authorized by law,
     8  may issue receiver's certificates, when necessary for the acquisition of
     9  property, the construction, completion, extension or improvement of  its

    10  facilities  or  the improvement or maintenance of its service within the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08868-11-4
        A. 7167--E                          2
 
     1  state, or for the discharge or lawful refunding of its  obligations,  or
     2  reimbursement  of  moneys  actually  expended  from  the income from any
     3  source, within five years next prior to the filing  of  the  application
     4  therefor,  or  for  any  of  such  purposes,  provided, however, that no
     5  authority shall be granted authorizing such issue for  reimbursement  of
     6  moneys  expended  from income for betterments or replacements unless the
     7  applicant shall have kept its accounts and vouchers of such expenditures

     8  in such manner as to enable the commission to ascertain  the  amount  of
     9  moneys  so  expended  and  the purposes for which such expenditures were
    10  made. Stock may be issued to stockholders as a stock  dividend  provided
    11  that  there  shall  have  been secured from the commission authority for
    12  such issuance and for a transfer of surplus  to  capital  in  an  amount
    13  equal to the par or stated value of the stock so authorized and that the
    14  applicant  has  certified  in  the  application for authority that a sum
    15  equal to the amount to be so transferred was expended for  the  purposes
    16  enumerated in this section. Stock may be issued to an employee or direc-
    17  tor  of  a  telegraph or telephone corporation under a stock option plan
    18  pursuant to which such corporation grants options to  its  employees  or
    19  directors  to  purchase  shares of stock, such options to be exercisable

    20  for a stated period of time to purchase shares of stock  at  the  market
    21  value  of the stock at the time of issuance of the option, provided that
    22  there shall have been secured from the  commission  authority  for  such
    23  issuance  and  that  the  applicant has certified in the application for
    24  authority that the proceeds from the exercise of the stock  options  are
    25  needed  for one of the purposes enumerated in this section. The issue of
    26  stocks, bonds or other evidences of indebtedness, within the meaning  of
    27  this section, shall include the sale by any such corporation of any such
    28  securities  previously  issued in compliance with the provisions of this
    29  section and  subsequently  reacquired  by  such  corporation,  provided,
    30  however,  for  good  cause  shown  the  commission  may  exempt from the
    31  restriction hereof stocks, bonds or other evidences of indebtedness. The

    32  application for authority shall state the amount of any such  issue  and
    33  the  purposes  to  which  it or its proceeds are to be applied and shall
    34  certify that the money, property or labor procured or to be procured  or
    35  paid  for  by  such  issue  or  its  proceeds  has been or is reasonably
    36  required for the purposes specified in the  application  for  authority,
    37  and that such purposes are in no part reasonably chargeable to operating
    38  expenses  or  to  income  except  in  the  case of bonds, notes or other
    39  evidences of indebtedness as  may  be  specifically  identified  in  the
    40  application for authority. For the proceeds from a federal loan, a tele-
    41  graph  or  telephone  corporation  shall  provide  notice  to the public
    42  service commission of receipt of such issue but shall not be required to

    43  file an application for authority.  For  the  purpose  of  enabling  the
    44  commission  to  determine whether it should authorize such issuance, the
    45  commission shall have the power to make such inquiry  or  investigation,
    46  hold  such hearings and examine such witnesses, books, papers, documents
    47  or contracts as it may determine of importance in enabling it to reach a
    48  determination.  [No] Except in instances where a telegraph or  telephone
    49  corporation  has  notified  the  commission  it is engaged in securing a
    50  federal loan for the expansion of broadband  services,  no  such  corpo-
    51  ration  shall,  without  the  consent  of the commission, apply any such
    52  issue or its proceeds to any purpose not specified  in  the  application
    53  for  authority.  Such telegraph corporation or telephone corporation may

    54  issue notes for proper corporate purposes and not in  violation  of  any
    55  provision of this chapter or of any other act, payable at periods of not
    56  more  than  twelve  months without the consent of the commission; but no
        A. 7167--E                          3
 
     1  such note shall, in  whole  or  in  part,  directly  or  indirectly,  be
     2  refunded  by any issue of stock or bonds, or by any evidences of indebt-
     3  edness running for more than twelve months, without the consent  of  the
     4  commission.  No  telegraph corporation or telephone corporation shall be
     5  required, however, to apply to the commission  for  authority  to  issue
     6  stocks,  bonds,  notes  or other evidence of indebtedness except for the
     7  acquisition of property,  the  construction,  completion,  extension  or
     8  improvement  of its facilities, or the improvement or maintenance of its

     9  service within the state, or the discharge or refunding of  obligations,
    10  or  reimbursement  of  moneys  actually  expended for such purposes. The
    11  commission shall have power to require every such  corporation  to  file
    12  with  the commission after the issuance of stocks, bonds, notes or other
    13  evidences of indebtedness issued with or without  the  approval  of  the
    14  commission  as provided in this section, a notice of such transaction in
    15  such form as the commission may prescribe. The commission shall have  no
    16  power  to authorize the capitalization of any franchise or right to be a
    17  corporation, nor to authorize the capitalization of any franchise or the
    18  right to own, operate or enjoy any franchise whatsoever in excess of the
    19  amount (exclusive of any tax or annual  charge)  actually  paid  to  the
    20  state  or any political subdivision thereof, as the consideration of the

    21  grant of such franchise or right, nor to authorize the issuance  of  any
    22  stocks  or other securities for any purposes other than those enumerated
    23  in this section. Nor shall the corporate stock of the corporation formed
    24  by the merger or consolidation of two or more other corporations  exceed
    25  the sum of the capital stock of the corporations so consolidated, at the
    26  par  value  thereof, or such sum and any additional sum actually paid in
    27  cash; nor shall any contract for consolidation or lease  be  capitalized
    28  in  the  stock  of  any  corporation whatever; nor shall any corporation
    29  hereafter issue any bonds against or as a lien  upon  any  contract  for
    30  consolidation  or  merger.  Notwithstanding  the foregoing provisions of
    31  this section, any application for approval under this section  shall  be
    32  deemed  granted by the commission forty-five days after such application

    33  is filed for approval, unless the commission, or  its  designee,  deter-
    34  mines  and  informs  the applicant in writing within such forty-five day
    35  period that the public interest requires the commission's review and its
    36  written order.
    37    § 2. This act shall take effect immediately.