45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO TELECOMMUNICATIONS; REQUIRING PUBLIC REGULATION COMMISSION APPROVAL OF CERTAIN TELECOMMUNICATION ENTITY CHANGE OF CONTROL ACTIONS; ENACTING A NEW SECTION OF THE NEW MEXICO TELECOMMUNICATIONS ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the New Mexico Telecommunications Act is enacted to read:

"[NEW MATERIAL] PRIOR APPROVAL OF COMMISSION REQUIRED OF CERTAIN CHANGE OF CONTROL TRANSACTIONS--DEFINITIONS--PROCEDURES FOR OBTAINING APPROVAL.--

A. As used in this section:

(1) "change of control transaction" means an action taken by an eligible telecommunications carrier that has the effect of allowing or facilitating an acquisition, consolidation, merger or other transaction that would alter the manner in which a plant or property by which public telecommunications service is provided or, any substantial part thereof, was controlled, held or owned;

(2) "control" means direct or indirect ownership of twenty percent or more of the voting securities of an entity; and

(3) "eligible telecommunications carrier" means a telecommunications company with one hundred thousand or more lines in New Mexico that has been designated by the commission as eligible to receive universal service support in accordance with 47 USCA Section 254, or a person that controls, or is controlled, by an eligible telecommunications carrier.

B. With the prior express authorization of the commission, but not otherwise:

(1) two or more eligible telecommunications carriers may acquire, consolidate or merge with each other;

(2) a person and an eligible telecommunications carrier may consolidate or merge with each other;

(3) stock of an eligible telecommunications carrier may be acquired by a person who will own twenty percent or more of the voting securities of the eligible telecommunications carrier; and

(4) an eligible telecommunications carrier may sell, lease, rent, purchase or acquire a telecommunications company's plant or property constituting part or all of an operating unit or system, but this paragraph does not require commission authorization for transactions in the ordinary course of business.

C. A change of control transaction undertaken without the prior express approval of the commission is void.

D. A telecommunications entity seeking approval of the commission as required by this section shall file written petition with the commission containing a concise statement of the proposed change of control transaction, the reasons for it and other information that may reasonably be required by the commission. The commission promptly shall investigate the statements in the petition and may require a hearing on the application, in which case adequate notice of the hearing shall be prescribed by the commission. After considering the allegations of the petition, the benefits and fairness of the proposed transaction to the ratepayers and other matters deemed relevant by the commission, it shall approve or disapprove the application. The commission shall not approve a change in control that will result in diminished service quality to the customers of the eligible telecommunications carrier. The provisions of this subsection do not diminish the commission's authority to approve a change in circumstances affecting certificates of public convenience and necessity.

E. The commission shall render its decision to approve or disapprove a proposed change of control within forty-five days of the date the petition is filed pursuant to Subsection D of this section. If a decision is not rendered within the stated time, the petition shall be deemed granted, unless before the forty-fifth day the commission extends the time an additional seventy-five days after finding that good cause exists for an extension."