Chap. 266.—An ACT to define utility assets, utility securities and public utilities;
to regulate the acquisition and disposition of such utility assets and utility
securities by such public utilities; to prescribe the powers and duties of the State
Corporation Commission with reference thereto; and to prescribe penalties for
violations of the provisions of this act. [S B 238]

Approved March 27, 1940

1. Beit enacted by the General Assembly of Virginia as follows:

Section 1. Definitions.—In this act the following terms shall have
the following meanings:

(a) ‘‘Company”’ means a corporation, a partnership, an associa-
tion, a joint-stock company, a business trust or an organized group of
persons, whether incorporated or not; or any receiver, trustee or other
liquidating agent of any of the foregoing in his capacity as such;

(b) ‘‘Public utility’ means any company which owns or operates
facilities within the Commonwealth of Virginia for the generation,
transmission or distribution of electric energy for sale or for the pro-
duction, transmission or distribution, otherwise than in enclosed
portable containers, of natural or manufactured gas for sale for heat,
light or power.

(c) “Utility assets’? means the facilities in place of any public
utility or municipality for the production, transmission or distribution
of electric energy or natural or manufactured gas.

(d) ‘Utility security’’ means any note, draft, debenture, bond,
share of stock, certificate, collateral trust certificate, pre-organization
certificate or subscription, transferable share, investment contract,
receiver’s or trustee’s certificate or any other instrument or interest
commonly known as a security which is issued or assumed or guaran-
teed by any public utility or any company which would be a public
utility if the facilities owned or operated by it were within the Com-
monwealth of Virginia, or any company substantially engaged in the
ownership of any of the aforesaid securities or in supplying manage-
ment or advice to any of the aforesaid companies; or any certificate
of deposit for, voting trust certificate for, certificate of interest or
participation in, temporary or interim certificate for, receipt for,
guaranty of, assumption of liability on, or warrant or right to sub-
scribe to or purchase or acquire, any of the aforesaid securities.

(e) ‘‘Acquire” or ‘acquisition’ includes any purchase or other
acquisition, whether by payment, exchange, gift, conveyance, lease,
license, merger, consolidation or otherwise.

(f) “Dispose of” or “disposition” includes any sale or other dis-
position, whether by payment, exchange, gift, conveyance, lease,
license, merger, consolidation or otherwise.

(g) ‘‘Commission’”’ means the Virginia State Corporation Com-
mission.

Section 2. Acquisition or Disposition of Utility Assets or Utility
Sécurities.—It shall be unlawful for any public utility, directly or in-
directly, to acquire or dispose of any utility assets situated within
the Commonwealth of Virginia or any utility securities of any other
company unless such acquisition or disposition shall have been au-
thorized by the commission. If and when so authorized by the com-
mission, any public utility may acquire or dispose of any such utility
assets or utility securities; but no such authorization by the com-
mission shall confer upon any county or municipality authority, other
than that otherwise conferred by law, to acquire or to dispose of any
utility assets or utility securities.

Section 3. Violations.—Any company violating any provision of
section two of this act shall upon conviction be fined not more than
one thousand dollars.

Section 4. Procedure.—Application for authority under section
two of this act shall be by petition to the commission. The petition
may be joint or several. It shall be signed and verified by the presi-
dent or any vice-president and the secretary or any assistant secretary
of the respective petitioner. The petition shall clearly summarize
the object in view, the proposed procedure and the terms and condi-
tions thereof. Upon the filing of the petition, if the commission shall
deem a hearing necessary, the commission shall assign the matter for
prompt hearing. If and when the commission, with or without hear-
ing, shall be satisfied that adequate service to the public at just and
reasonable rates will not be impaired or jeopardized by granting the
prayer of the petition, the commission shall make such order in the
premises as it may deem proper and the circumstances require, and
thereupon it shall be lawful to do the things provided for in such
order, subject, however, to the exception contained in section two
of this act as to counties and municipalities.

Section 5. Separability—If any provision of this act or the
application of such provision to any company or circumstances shall
be held invalid, the remainder of this act and the application of such
provision to companies or circumstances other than those as to which
it is held invalid shall not be affected thereby.

Section 6. Short Title—This act may be cited as the Utility
Transfers Act.