senate Bill S5304A

Prohibits the ownership of electric corporations by any foreign based person, corporation or entity

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 03 / May / 2011
    • REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS
  • 10 / May / 2011
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Nov / 2011
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 04 / Nov / 2011
    • PRINT NUMBER 5304A
  • 04 / Jan / 2012
    • REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS
  • 06 / Jun / 2012
    • REPORTED AND COMMITTED TO FINANCE

Summary

Prohibits the ownership of electric corporations by any foreign based person, corporation or entity.

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Bill Details

See Assembly Version of this Bill:
A9573
Versions:
S5304
S5304A
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Public Service Law
Laws Affected:
Amd ยง68, Pub Serv L

Sponsor Memo

BILL NUMBER:S5304A

TITLE OF BILL:
An act
to amend the public service law, in relation to prohibiting the
ownership of an electric corporation by any foreign based person,
corporation or entity

PURPOSE:
This legislation will prohibit a foreign based person, corporation or
entity from owning an electric corporation.

SUMMARY OF PROVISIONS:
Section One - amends paragraph of section 68 of the public service law
to state the commission will not grant its permission or approval,
for the generation and distribution of electricity to residential
customers, to any electric corporation that is a foreign based
person, corporation or entity, or the majority of which is owned by
foreign based persons, corporations and/or entities. In the event
that an electric corporation, holding a franchise issued pursuant to
this article, becomes a foreign based person, corporation or entity,
or becomes majority owned by based persons, corporations and/or
entities, such franchise foreign based persons, corporations and/or
entities, such franchise shall immediately be revoked by the
commissioner.

Section One - defines a "foreign based person of corporation" as any
natural person who is not a citizen of the United States; or any
corporation or entity that is not headquartered in the United States,
is not chartered by the United States or by any state in the United
States, is not chartered by the United States or by any state in the
United States or has more than fifty percent of its ownership
interests owned or held by a person or persons who are not citizens
or the United States or a corporation and or entity that are not
headquartered in the United States or not chartered by the United
States or any state in the United States.

Section Two - this act shall take effect on the ninetieth day after
becoming law.

JUSTIFICATION:
New York's energy supply is not just a matter of convenience. It is
issue affecting emergency services and homeland security. We rely on
utilities for our most basic needs, like lighting and refrigeration,
to our must critical needs like medical care and public
safety. Two recent storms highlighted public safety concerns
associated with power outages and poor response times by certain
power companies. More specifically, the storms showed weaknesses by
one utility, New York State Electric and Gas (NYSEG), in its ability
to appropriately respond. In September 2008, Iberdrola S.A., an
energy company based in Spain, bought the parent company of two
Upstate New York utilities -- NYSEG and Rochester Gas & Electric.
Since then, NYSEG customers have noticed a progressive degradation in
quality and service from their utility provider. In the interest of
public safety, foreign corporations should not be allowed to control


utility companies in New York. This legislation is imperative because
it protects New Yorkers during times when they need it most. In crisis.

LEGISLATIVE HISTORY:
This is a new bill.

FISCAL IMPLICATIONS:
None to State.

EFFECTIVE DATE:
This law will take effect on the ninetieth day after becoming law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5304--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               May 3, 2011
                               ___________

Introduced  by  Sens.  BALL,  GIANARIS, LARKIN -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Veter-
  ans, Homeland Security and Military Affairs -- reported favorably from
  said  committee and committed to the Committee on Finance -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the public service law, in relation to  prohibiting  the
  ownership  of  an  electric  corporation  by any foreign based person,
  corporation or entity

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The opening paragraph of section 68 of the public service
law is designated subdivision 1 and a new subdivision 2 is added to read
as follows:
  2. (A) THE COMMISSION SHALL NOT GRANT ITS PERMISSION OR APPROVAL,  FOR
THE GENERATION AND DISTRIBUTION OF ELECTRICITY TO RESIDENTIAL CUSTOMERS,
TO  ANY ELECTRIC CORPORATION THAT IS A FOREIGN BASED PERSON, CORPORATION
OR ENTITY, OR THE MAJORITY OF WHICH IS OWNED BY FOREIGN  BASED  PERSONS,
CORPORATIONS AND/OR ENTITIES. IN THE EVENT THAT AN ELECTRIC CORPORATION,
HOLDING  A  FRANCHISE ISSUED PURSUANT TO THIS ARTICLE, BECOMES A FOREIGN
BASED PERSON, CORPORATION  OR  ENTITY,  OR  BECOMES  MAJORITY  OWNED  BY
FOREIGN  BASED  PERSONS,  CORPORATIONS  AND/OR  ENTITIES, SUCH FRANCHISE
SHALL IMMEDIATELY BE REVOKED BY THE COMMISSIONER.
  (B) FOR THE PURPOSES  OF  THIS  SUBDIVISION,  "FOREIGN  BASED  PERSON,
CORPORATION OR ENTITY" SHALL MEAN:
  (1) ANY NATURAL PERSON WHO IS NOT A CITIZEN OF THE UNITED STATES; OR
  (2) ANY CORPORATION OR ENTITY THAT:
  (I) IS NOT HEADQUARTERED IN THE UNITED STATES,
  (II)  IS  NOT  CHARTERED  BY  THE UNITED STATES OR BY ANY STATE IN THE
UNITED STATES, OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11296-02-1

S. 5304--A                          2

  (III) HAS MORE THAN FIFTY PERCENT OF ITS OWNERSHIP INTERESTS OWNED  OR
HELD BY:
  (A) A PERSON OR PERSONS WHO ARE NOT CITIZENS OF THE UNITED STATES, OR
  (B) CORPORATIONS AND/OR ENTITIES THAT ARE:
  (I) NOT HEADQUARTERED IN THE UNITED STATES, OR
  (II)  NOT  CHARTERED  BY  THE UNITED STATES OR ANY STATE IN THE UNITED
STATES.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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