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Texas, Oklahoma and Nevada make changes to lure business amid Delaware’s ‘Dexit’ concern – WTOP News

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Texas, Oklahoma and Nevada make changes to lure business amid Delaware’s ‘Dexit’ concern – WTOP News


CLAYMONT, Del. (AP) — Lawmakers in Texas, Oklahoma and Nevada have recently approved changes aimed at helping their states dip…

CLAYMONT, Del. (AP) — Lawmakers in Texas, Oklahoma and Nevada have recently approved changes aimed at helping their states dip into the lucrative side of corporate litigation that Delaware, with a specialized court and business-friendly laws, has dominated as the world’s incorporation capital.

Concerned that these changes may lure corporations away from Delaware, thereby causing the small state to lose millions in corporate franchise taxes, Delaware officials have responded with their own changes to solidify their status in the business world.

In Texas, which opened a business court last year, there was bipartisan support for legislation diminishing shareholder powers and giving businesses more legal protections against shareholder lawsuits. Nevada lawmakers approved a corporation-friendly update to its business laws, also with bipartisan support, and separately moved toward asking voters to consider changing the state constitution to create a dedicated business court with appointed judges.

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Billionaire Elon Musk had advocated both states as better options for incorporation after a Delaware judge struck down his shareholder-approved $56 billion compensation package from Tesla. Musk’s businesses have also changed where they’re incorporated: Tesla and SpaceX relocated to Texas, while Neuralink moved to Nevada.

Oklahoma also took action to get in the mix, as the Republican-led Legislature sanctioned the creation of business courts in its two most populous counties, a move the governor said would help Oklahoma become the most business-friendly state.

“This is an area in which states, in many ways, are behaving like businesses,” said Robert Ahdieh, dean of the Texas A&M University School of Law. “Delaware is selling something. Texas is selling something that they hold out to be better. So it is very much a comparative exercise.”

Concerns about a ‘Dexit’

Since 2024, several billion-dollar companies including TripAdvisor and DropBox have relocated to Nevada. More than a dozen others, including the AMC theater chain and video game developer Roblox Corporation, have announced plans to incorporate there this year. Latin American e-commerce giant MercadoLibre filed a request for shareholders to approve a Texas relocation in April, citing Delaware’s “less predictable” decision-making process — a common thought among exiting companies.

Amid concerns about more companies reincorporating elsewhere in a so-called “Dexit,” Delaware passed its own legislation to help protect its status as the corporate capital, limiting shareholders’ access to records and increasing protections for leadership. Opposition dubbed it “the Billionaire’s Bill.”

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“Ultimately, I think the damage is done because businesses successfully undermined shareholder rights in Delaware,” said Corey Frayer, director of investor protection at Consumer Federation of America, who argues that the Delaware bill was a rash acquiescence to “Dexit” concerns.

However, some business law experts, like Ahdieh, say the average shareholder is focused on increasing their returns and does not care about shareholder power or where the company is incorporated.

Delaware Gov. Matt Meyer has vowed to win back companies that leave, arguing his state’s experience “beats going to Vegas and rolling the dice.”

Less predictability

Companies flock to Delaware for its well-respected Court of Chancery, a sophisticated and separate forum focusing on equity, corporate and business law. This incorporation machine generates $2.2 billion annually, about one-third of the state’s operating budget.

There is comfort in working in the familiarity of Delaware law, said Ahdieh, but that predictability has come into question in the last decade as corporate leaders grew unhappy over losing precedent-setting court decisions governing corporate conflicts of interest.

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Widener University Commonwealth law school professor Christian Johnson acknowledged a shift in Delaware but said reincorporating elsewhere might be “a bit of an overreaction.” Although a few big-name companies have moved, there are still more than 2 million legal entities incorporated in Delaware, including two-thirds of the Fortune 500.

Statutes in Texas and Nevada may appear more flexible, but they have not been extensively tested, and their courts are not as experienced working with the larger entities that favor Delaware, Johnson said.

Protections in Texas

In May, Texas Gov. Greg Abbott signed legislation providing greater securities for corporate officers and adding restrictions to shareholder records requests. The bill also allows corporations to require an ownership threshold, no more than 3% in outstanding shares, before a shareholder can initiate a derivative lawsuit, typically on behalf of the company and against its own board or directors.

Restrictions on who can initiate such lawsuits are not uncommon, but Texas’ implementation imposes a “far higher barrier than the norm,” Ahdieh said.

Consumer advocates worry the changes endanger shareholder and investor protections by giving owners and directors more protection against lawsuits that could hold them accountable if they violate their fiduciary duty.

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For businesses, the changes mean potentially saving millions of dollars in shareholder lawsuit settlements and legal fees by mitigating the likelihood of those costly cases reaching court. For the states, attracting the companies means millions in business activity and revenue from regulatory filing and court case fees and taxes.

New courts

Eyeing a piece of that, Oklahoma is on pace to establish its recently approved business courts in 2026.

“I’m trying to take down Delaware,” said Oklahoma Gov. Kevin Stitt, a Republican. “We want to be the most business-friendly state.”

Nevada wants to compete, too. It has run business dockets in Washoe and Clark counties since 2001, and it’s in the state’s interest to expand operations considering its fast-growing economy and population, said Benjamin Edwards, a University of Nevada, Las Vegas law professor who studies business and securities law.

But he said it could take decades to build up a court comparable to Delaware, which has a valuable reputation for handling cases relatively quickly.

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Nevada’s proposed business court wouldn’t take effect until 2028 at the earliest and would require amending the state constitution, which would need approval by the 2027 legislature and voter approval in 2028 to allow for the appointment of judges.

___

Associated Press reporter Marc Levy in Harrisburg, Pennsylvania, contributed to this report.

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© 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

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Nevada nonprofit, BCP challenging PUCN over NV Energy’s daily demand charge

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Nevada nonprofit, BCP challenging PUCN over NV Energy’s daily demand charge


LAS VEGAS (KTNV) — A Nevada nonprofit organization and the Attorney General’s Bureau of Consumer Protection are challenging the Public Utilities Commission of Nevada in court after the organization approved new NV Energy policies.

Vote Solar is a nonprofit advocacy group that focuses on state policies affecting solar and clean energy solutions.

WATCH | Darcy Spears breaks down challenge against PUCN

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Nevada nonprofit, BCP challenging PUCN over NV Energy’s daily demand charge

According to their petition for judicial review, they are questioning the PUCN’s decision to approve two separate policies:

  • A new daily demand charge for residential and small business customers in Southern Nevada
  • A new 15-minute net metering policy for rooftop solar customers in Northern Nevada

In the petition, Vote Solar officials claim the PUCN’s final decisions are:

  • In violation of constitutional or statutory provisions
  • In excess of the statutory authority of the Commission
  • Made upon unlawful procedure
  • Affected by other error of law
  • Clearly erroneous in view of the reliable, probative and substantial evidence on the record
  • Arbitrary or capricious or characterized by abuse of discretion

“The PUCN’s decision is a major step backward for Nevada’s clean energy future,” said Chauntille Roberts, Regional Director at Vote Solar. “Nevada deserves energy policies that protect consumers, expand access to solar, and move our state forward—not backward.”

The Attorney General Office’s Bureau of Consumer Protection has filed a separate petition for judicial review.

“The demand charge rate structure (if permitted to be implemented), the 15-minute NEM netting methodology, and the approved affiliate charges result in rates that are unjust, unreasonable, and unlawful in contravention of NRS 704.040, and undermine the Commission’s fundamental duty under NRS 704.001 to provide utility ratepayers with just and reasonable rates,” the filing states in part.

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The filing also states commissioners approved $2.7 million worth of affiliate charges that ratepayers would cover.

“The Commission’s decision concerning affiliate charges is belied by the record as the evidence in this docket demonstrates that NPC failed to provide any evidence, let alone substantial evidence, sufficient to support the recovery of an aggregate of $2.7 million,” the filing states. “Not only is the $2.7 million in affiliate charges unsupported by actual charges, it is also unreasonable and an unsupported monetary number, resulting in the Commission’s decision being arbitrary and capricious.”

No future court hearings have been scheduled for that case, as of Friday morning.

Channel 13 has reached out to NV Energy and the PUCN to see if they would like to comment on the petition.

NV Energy sent the following statement to us.

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“NV Energy believes the changes that were approved and reaffirmed by the Public Utilities Commission of Nevada are consistent with state law, and we will be following this filing closely.

The demand charge more accurately captures the cost of energy delivery. It also helps to fix inequities between rooftop solar and non-rooftop solar customers. Because of the current billing structure, rooftop solar customers pay less than non-rooftop solar customers for the cost of service, shifting costs to non-rooftop solar customers.

Between 2018 and 2024, the total cost shift born by non-rooftop solar customers in Southern Nevada is $424 million. The total subsidy in Southern Nevada in 2025 is expected to grow by an additional $80 million, based on expected growth for the rest of the year.

The recently approved demand charge helps fix the inequities caused by the current system, and helps ensure that customer bills more accurately reflect the cost it takes to provide them with service.”

NV Energy Spokesperson

As of the time this article was published, we have not heard back from the PUCN.

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In September, the PUCN approved the new rate model, which has sparked controversy among many Southern Nevadans who claim this will make their energy bills continue to go up.

“It’s painful. I just wanted to express concern as a private citizen that corporate America is going to do what it’s going to do to maintain profits and dividends,” Las Vegas local Joel Tauber told us in October.

“Why can a monopoly, a utility monopoly, dictate how I live in my residence,” retiree Jody Rodarmal told us in September. “If you believe there’s not going to be any increase, then why go to a new style of billing?”

SEPTEMBER 2025: NV Energy’s new billing structure sparks concern among Las Vegas residents

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NV Energy’s new billing structure sparks concern among Las Vegas residents

How would the daily demand charge work?

According to NV Energy, the daily demand charge will be calculated by taking the highest amount of energy used in a 15-minute period each day and multiplying it by the current kilowatt-per-hour rate.

That charge will then be added to your bill. For the average customer, NV Energy estimates this will amount to roughly $20 per month.

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WATCH: Ryan Ketcham explains NV Energy’s new daily demand charge

NV Energy is adding a ‘daily demand charge’ to power bills. What does that mean for consumers?

In past statements to Channel 13, NV Energy officials have stressed the rate increase requests are intended to recoup the costs of projects it undertakes to shore up the power grid.

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However, there have been questions about that over the last year after scandals involving overcharging customers and trying to pass on the costs of things like luxury hotels, travel, and liquor to ratepayers, including a $1.2 million tab at Red Rock Resort.

According to NV Energy, Nevada customers already pay a lower average rate than the rest of the country. Through June 2025, the company says its rates were 22% lower than the U.S. average and 60% lower than in California.

Do you have a concern or question about something happening in the valley? Email Darcy.Spears@ktnv.com.





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DOJ sues Nevada for allegedly withholding voter registration information

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DOJ sues Nevada for allegedly withholding voter registration information


The Department of Justice filed a federal lawsuit against Nevada on Friday, alleging that the state failed to provide statewide voter registration lists when requested, according to a news release.

Colorado, Hawaii, and Massachusetts were also sued, bringing the total to 18 states now facing lawsuits from the Justice Department. The department’s Civil Rights Division filed the complaints.

Francisco Aguilar, Nevada secretary of state, was charged with violating the Civil Rights Act after he responded on Aug. 21 to a letter from U.S. Attorney General Pam Bondi, saying there was no basis for her request for certain voter information, asserting privacy concerns, according to the lawsuit.

According to the complaint, Aguilar provided a link to the state’s computerized voter registration list. However, the version shared contained incomplete fields, including registrants’ full names, dates of birth, addresses, driver’s license numbers, and the last four digits of their Social Security numbers.

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Aguilar’s Aug. 21 letter said his office would follow up, but the attorney general never received the list containing all the requested fields, the lawsuit said.

According to the news release, Congress assigns the attorney general primary responsibility for enforcing the National Voter Registration Act and the Help America Vote Act, both enacted to ensure that states maintain accurate and effective voter registration systems.

The attorney general also has authority under the Civil Rights Act of 1960 to request, review, and analyze statewide voter registration lists, according to the release.

“States have the statutory duty to preserve and protect their constituents from vote dilution,” Assistant Attorney General Harmeet K. Dhillon said in the release. “At this Department of Justice, we will not permit states to jeopardize the integrity and effectiveness of elections by refusing to abide by our federal elections laws. If states will not fulfill their duty to protect the integrity of the ballot, we will.”

Contact Akiya Dillon at adillon@reviewjournal.com.

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Police: Deadly crash closes all lanes at I-15, Charleston

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Police: Deadly crash closes all lanes at I-15, Charleston


LAS VEGAS (FOX5) — A deadly crash has closed all lanes at I-15 and Charleston Boulevard, police say.

Nevada State Police posted on social media after 7 p.m. about the crash. Police say drivers in the area should use other routes.

Police have not immediately shared details about the victim or if other people are involved. It’s not yet confirmed if impairment is suspected.

This is a developing story. Check back later for details.

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