66-1401. Jurisdiction over holding companies; "affiliated interests" defined.
66-1401
66-1401. Jurisdiction over holding companies; "affiliatedinterests" defined.(1) The state corporation commission shall have jurisdiction overholders of the voting capital stock of all public utility companiesunder the jurisdiction of the commission to such extent as may benecessary to enable the commission to require the disclosure of theidentity in respective interests of every owner of any substantialinterest in such voting capital stocks. One percent or more is asubstantial interest, within the meaning of this subsection.
(2) Such commission shall have jurisdiction over affiliatedinterests having transactions, other than ownership of stock and receiptof dividends thereon, with utility corporations and other utilitycompanies under the jurisdiction of the commission, to the extent ofaccess to all accounts and records of such affiliated interests relatingto such transactions, including access to accounts and records of jointor general expenses, any portion of which may be applicable to suchtransactions; and to the extent of authority to require such reports tobe submitted by such affiliated interests, as the commission mayprescribe. For the purpose of this section only, "affiliated interests"include the following:
(a) Every corporation and person owning or holding directly orindirectly 10% or more of the voting capital stock of suchutility corporation.
(b) Every corporation and person in any chain of successiveownership of 10% or more of voting capital stock.
(c) Every corporation 10% or more of whose voting capitalstock is owned by any person or corporation owning 10% or moreof the voting capital stock of such utility corporation or by any personor corporation in any such chain of successive ownership of 10% or more of voting capital stock.
(d) Every person who is an officer or director of such utilitycorporation or of any corporation in any chain of successive ownershipof 10% or more of voting capital stock.
(e) Every corporation which has one or more officers or one or moredirectors in common with such utility corporation.
(f) Every corporation which the commission may determine as a matterof fact, after investigation and hearing, is actually exercising anysubstantial influence over the policies and actions of such utilitycorporation even though such influence is not based upon stockholding,stockholders, directors or officers to the extent specified in thissection.
(g) Every person or corporation who or which the commission maydetermine as a matter of fact, after investigation and hearing, isactually exercising such substantial influence over the policies andactions of such utility corporation in conjunction with one or moreother corporations or persons with which or whom such person or corporation is related byownership or blood relationship or by action in concert thattogether such person or corporation is affiliated withsuch utility corporation within themeaning of this section even though no one of them alone is soaffiliated, except that no such person or corporationshall be considered as affiliated within the meaning of this section ifsuch person or corporation is otherwise subject to the jurisdiction ofthe commission or such person or corporation shall not have hadtransactions or dealings other than the holding of stock and the receiptof dividends thereon with such utility corporation during the two-yearperiod next preceding. No foreign holding companyshall acquire the stock or control of a local operating unit or publicutility in its own name or through a trustee without first entering intoan agreement to keep the state corporation commission fully informed asto the transactions between the subsidiary or local operating unit andthe holding company, and to submit to the jurisdiction of the commissioninsofar as such transactions affect the rate or charge to be made by thesubsidiary or local operating unit.
(3) Hearings under subsection (2) shall be conducted in accordancewith the provisions of the Kansas administrative procedure act.
History: L. 1931, ch. 239, § 1;L. 1988, ch. 356, § 266; July 1, 1989.