§ 70 — Transfer of franchises or stocks

§ 70. Transfer of franchises or stocks. 1. No gas corporation or\nelectric corporation shall transfer or lease its franchise, works or\nsystem or any part of such franchise, works or system to any other\nperson or corporation or contract for the operation of its works and\nsystem, without the written consent of the commission. Notwithstanding\nthe foregoing, any transfer or lease with an original cost of (a) less\nthan one hundred thousand dollars proposed by a gas or electric\ncorporation having annual gross revenues in excess of two hundred\nmillion dollars or (b) less than twenty-five thousand dollars proposed\nby a gas or electric corporation having annual gross revenues of less\nthan two hundred million dollars shall be effective without the\ncommission's written consent within ninety days after such corporation\nnotifies the commission that it plans to complete the transfer or lease\nand submits a description of the transfer or lease; provided, however,\nthat the commission may determine within such ninety days after such\nnotification and submission that the public interest requires its review\nand written consent.\n 2. The permission and approval of the commission, to the exercise of a\nfranchise under section sixty-eight of this article, or to the\nassignment, transfer or lease of a franchise under this section shall\nnot be construed to revive or validate any lapsed or invalid franchise\nor to enlarge or add to the powers and privileges contained in the grant\nof any franchise or to waive any forfeiture.\n 3. No gas corporation or electric corporation shall directly or\nindirectly acquire the stock or bonds of any other corporation\nincorporated for, or engaged in, the same or a similar business, in this\nstate or any other state, or proposing to operate or operating under a\nfranchise from the same or any other municipality, neither shall any\nstreet railroad corporation acquire the stock or bonds of any electric\ncorporation, unless authorized so to do by the commission.\n 4. Save where stock shall be transferred or held for the purpose of\ncollateral security only with the consent of the commission empowered by\nthis chapter to give such consent, no stock corporation of any\ndescription, domestic or foreign, company, including, but not limited\nto, a limited liability company, association, including a joint stock\nassociation, partnership, including a limited liability partnership, or\nperson, other than a gas corporation or electric corporation or street\nrailroad corporation, shall purchase or acquire, take or hold, more than\nten per centum of the voting capital stock issued by any gas corporation\nor electric corporation organized or existing under or by virtue of the\nlaws of this state, except that a corporation now lawfully holding a\nmajority of the voting capital stock of any gas corporation or electric\ncorporation may with the consent of the commission acquire and hold the\nremainder of the voting capital stock of such gas corporation or\nelectric corporation or any portion thereof. Provided, that with the\nconsent of such commission and upon and subject to such terms and\nconditions as such commission may fix and impose, any such stock\ncorporation, company, association, partnership or person may acquire,\ntake and hold more than ten per centum of the voting capital stock of\nany gas corporation or electric corporation, organized or existing under\nor by virtue of the laws of this state.\n 5. No consent shall be given by the commission to the acquisition of\nany stock in accordance with this section unless it shall have been\nshown that such acquisition is in the public interest. Nothing herein\ncontained shall be construed to prevent the holding of any stock\nheretofore lawfully acquired, nor to prevent, upon the surrender or\nexchange of such stock pursuant to a reorganization plan, the purchase,\nacquisition, taking or holding of a proportionate amount of stock of any\nnew corporation organized to take over, at foreclosure or other sale,\nthe property of any corporation whose stock has been thus surrendered or\nexchanged; but the proportion of the voting capital stock of the new\ncorporation held by a stock corporation, company, association,\npartnership or person and acquired by it by any such surrender or\nexchange of stock shall not without the consent of the commission exceed\nthe proportion of the voting capital stock held by it in the former\ncorporation.\n 6. Every contract, assignment, transfer or agreement for transfer of\nany stock by or through any person or corporation to any corporation,\ncompany, association, partnership or person in violation of any\nprovision of this chapter shall be void and of no effect, and no such\ntransfer or assignment shall be made upon the books of any such gas\ncorporation, or electric corporation, or shall be recognized as\neffective for any purpose.\n 7. No consent, permission or approval otherwise required under this\nsection shall be necessary for the sale of the franchise, works, system,\nstocks or bonds by a gas or electric corporation to a duly constituted\nauthority of the state.\n