SENATE BILL 629

46th legislature - STATE OF NEW MEXICO - first session, 2003

INTRODUCED BY

Phil A. Griego







AN ACT

RELATING TO RURAL TELECOMMUNICATIONS; EXPANDING THE DEFINITION OF "INCUMBENT RURAL TELECOMMUNICATIONS CARRIER"; PROVIDING FOR RURAL ACCESS REFORM; CREATING THE RURAL ACCESS REFORM FUND; AMENDING, REPEALING AND ENACTING CERTAIN SECTIONS OF THE RURAL TELECOMMUNICATIONS ACT OF NEW MEXICO; DECLARING AN EMERGENCY.



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

Section 1. Section 63-9H-1 NMSA 1978 (being Laws 1999, Chapter 295, Section 1) is amended to read:

"63-9H-1. SHORT TITLE.--[This act] Chapter 63, Article 9H NMSA 1978 may be cited as the "Rural Telecommunications Act of New Mexico"."

Section 2. Section 63-9H-2 NMSA 1978 (being Laws 1999, Chapter 295, Section 2) is amended to read:

"63-9H-2. PURPOSE.--The legislature declares that it remains the policy of the state of New Mexico to maintain for rural customers availability of access to telecommunications services at affordable rates. Furthermore, it is the policy of this state for rural customers to have [comparable] access to long distance service at rates [as established by the commission, for comparable markets or market areas] comparable to those offered in urban areas and for intrastate long distance service to be at rates comparable to interstate long distance service rates. To the extent that it is consistent with maintaining availability of access to service at affordable rates for rural customers, it is further the policy of this state to encourage competition through access charge reform and reduce regulation in the telecommunications industry, thereby allowing access by the public to resulting rapid advances in telecommunications technology. It is the purpose of the Rural Telecommunications Act of New Mexico to permit a regulatory framework that will allow an orderly transition for rural telephone carriers from a regulated telecommunications industry to a competitive market environment consistent with the federal act. Further, the legislature finds that as part of such regulatory framework, it is necessary to provide disparate regulatory treatment between rural telephone carriers and non-rural telephone carriers in order to assist with accomplishing the goals established by the above declared policies. Disparate regulatory treatment is particularly necessary for those citizens who reside in rural New Mexico, because those rural areas constitute the bulk of the surface area within the boundaries of the state. Disparate regulatory treatment for rural telephone carriers requires relaxed regulation for rural telephone carriers with the objective of reducing the cost of regulation as well as the regulatory burden, permitting pricing flexibility and expediting required rate approvals, all in a manner consistent with both the purpose of an orderly transition from regulation to a competitive market environment and the federal act."

Section 3. Section 63-9H-3 NMSA 1978 (being Laws 1999, Chapter 295, Section 3) is amended to read:

"63-9H-3. DEFINITIONS.--As used in the Rural Telecommunications Act of New Mexico:

A. "affordable rates" means rates for basic service that promote universal service within a local exchange service area, giving consideration to the economic conditions and costs to provide service in the area in which service is provided;

B. "basic service" means service that is provided to a rural end-user customer that is consistent with the federal act;

C. "cable service" means the transmission to subscribers of video programming or other programming service and subscriber interaction, if any, that is required for the selection or use of the video programming or other programming service;

D. "commission" means the public regulation commission;

E. "eligible telecommunications carrier" means an eligible telecommunications carrier as defined in the federal act;

F. "federal act" means the federal Telecommunications Act of 1996;

G. "fund" means the [state rural universal service] rural access reform fund;

H. "incumbent local exchange carrier" means a person that:

(1) was designated as an eligible telecommunications carrier by the state corporation commission in Docket #97-93-TC by order dated October 23, 1997, or that provided local exchange service in this state on February 8, 1996; or

(2) became a successor or assignee of an incumbent local exchange carrier;

I. "incumbent rural telecommunications carrier" means [a] an incumbent local exchange carrier that [serves fewer than fifty thousand access lines within the state and] was designated as an eligible telecommunications carrier by the state corporation commission on or before November 1, 1997, including any successor in interest thereto and that:

(1) provides local exchange service to fewer than fifty thousand access lines;

(2) provides local exchange service to any local exchange carrier study area with fewer than one hundred thousand access lines; or

(3) has less than fifteen percent of its access lines in communities with a population of more than fifty thousand;

J. "interstate long distance service" means telecommunications service between local exchange areas that originates in one state and terminates in another state;

K. "interstate switched access charges" means the per-minute charges that incumbent rural telecommunications carriers charge to providers of interstate long distance service for originating and terminating telecommunications traffic on the local exchange network;

L. "intrastate long distance service" means telecommunications service between local exchange areas that originates and terminates within the state;

M. "intrastate switched access charges" means the per-minute charges that incumbent rural telecommunications carriers charge to providers of intrastate long distance service for originating and terminating traffic on the local exchange network;

[J.] N. "local exchange area" means a geographic area encompassing one or more local communities, as described in maps, tariffs or rate schedules filed with the commission, where local exchange rates apply;

[K.] O. "local exchange service" means the transmission of two-way interactive switched voice communications furnished by a telecommunications carrier within a local exchange area;

[L. "long distance service" means telecommunications service between local exchange areas that originate and terminate within the state;

M.] P. "private telecommunications service" means a system, including its construction, maintenance or operation for the provision of telecommunications service, or any portion of that service, by a person for the sole and exclusive use of that person and not for resale, directly or indirectly. For purposes of this definition, the person that may use the service includes any affiliates of the person if at least eighty percent of the assets or voting stock of the affiliates is owned by the person. If any other person uses the telecommunications service, whether for hire or not, the private telecommunications service is a public telecommunications service;

[N.] Q. "public telecommunications service" means the transmission of signs, signals, writings, images, sounds, messages, data or other information of any nature by wire, radio, lightwaves or other electromagnetic means originating and terminating in this state regardless of actual call routing. "Public telecommunications service" does not include the provision of terminal equipment used to originate or terminate the service; private telecommunications service; broadcast transmissions by radio, television and satellite broadcast stations regulated by the federal communications commission; radio common carrier services, including mobile telephone service and radio paging; or cable service; [and

O.] R. "telecommunications carrier" means a person that provides public telecommunications service; and

S. "study area" means a study area as defined in Part 36 of the rules of the federal communications commission and as referenced in Section 214(e)(5) of the federal act."

Section 4. Section 63-9H-4 NMSA 1978 (being Laws 1999, Chapter 295, Section 4) is amended to read:

"63-9H-4. REGULATION BY COMMISSION.--

A. Except as otherwise provided in the Rural Telecommunications Act of New Mexico or the federal act, each public telecommunications service is declared to be affected with the public interest and, as such, subject to the provisions of those acts, including the regulation thereof as provided in those acts.

B. The commission has exclusive jurisdiction to regulate incumbent rural telecommunications carriers only in the manner and to the extent authorized by the Rural Telecommunications Act of New Mexico, and Section 63-7-1.1 NMSA 1978 does not apply; provided, however, the commission's jurisdiction includes designation of eligible telecommunications carriers consistent with Section 214(e) of the federal act, the regulation of [wholesale rates, including access charges and] interconnection [agreements] consistent with [federal law] Sections 251 and 252 of the federal act, except as otherwise limited by the provisions of the Rural Telecommunications Act of New Mexico, and its enforcement and a determination of participation in low-income telephone service assistance programs pursuant to the Low Income Telephone Service Assistance Act."

Section 5. Section 63-9H-5 NMSA 1978 (being Laws 1999, Chapter 295, Section 5) is amended to read:

"63-9H-5. CERTIFICATE REQUIRED.--

A. No [rural] public telecommunications service shall be offered in this state by an incumbent rural telecommunications carrier except in accordance with the provisions of the Rural Telecommunications Act of New Mexico.

B. No [rural] public telecommunications service shall be offered within this state by an incumbent rural telecommunications carrier without the [telecommunications] carrier first having obtained from the commission a certificate declaring that the operation is in the present or future public convenience and necessity, unless the operation is otherwise authorized by the Rural Telecommunications Act of New Mexico.

C. The commission has full power and authority to determine matters of public convenience and necessity relating to the issuance of a certificate of public convenience and necessity to [a provider of rural public telecommunications service] an incumbent rural telecommunications carrier, but in keeping with the purposes of the Rural Telecommunications Act of New Mexico and the federal act, the commission shall not deny an applicant a certificate on the grounds of need if it is shown that the applicant possesses adequate financial resources and technical competency to provide the service.

D. For purposes of considering and acting upon applications for certificates pursuant to this section, the commission may adopt rules on a competitively neutral basis and consistent with the provisions of the Rural Telecommunications Act of New Mexico and the federal act, necessary to preserve and advance universal service, protect the public safety and welfare, ensure the continued quality of [rural] public telecommunications services and safeguard the rights of the consumers.

E. In determining whether to issue a certificate [to provide rural public telecommunications service] pursuant to this section, the commission shall consider the following:

(1) whether the applicant has sufficient financial resources to provide the proposed telecommunications service properly and continuously;

(2) whether the applicant has competent and experienced management and personnel to provide the proposed telecommunications service;

(3) whether the applicant is willing and able to conform to all applicable laws and the rules of the commission applicable generally to providers of telecommunications; and

(4) if any exemption, suspension or modification is available to any provider of the subject service in the subject area.

F. All certificates of public convenience and necessity shall:

(1) continue in force, notwithstanding the provisions of this section; and

(2) remain subject to all terms and conditions imposed by statute or commission order at the time of issuance or in connection with any subsequent amendment, notwithstanding the provisions of this section."

Section 6. A new section of the Rural Telecommunications Act of New Mexico, Section 63-9H-6.1 NMSA 1978, is enacted to read:

"63-9H-6.1. [NEW MATERIAL] RURAL ACCESS REFORM FUND.--

A. The "rural access reform fund" is created. Money deposited in the fund is not public money, and the administration of the fund is not subject to the provisions of law regulating public funds.

B. The legislature finds that all residents of the state benefit from the ability to communicate with customers through the use of telecommunications networks provided by incumbent rural telecommunications carriers. The purpose of the rural access reform fund is to enable residents of rural New Mexico to have equitable access to competitive long distance markets and pricing through intrastate access reform. Toward this goal, this section mandates incumbent rural telecommunications carriers to reduce intrastate switched access charges to providers of intrastate long distance service to rates that are comparable to the intrastate switched access rates charged in urban areas.

C. No later than August 1, 2003, the commission shall select a third-party administrator who shall administer the fund. The administrator shall collect, administer and disburse money from the fund consistent with the provisions and purpose of the Rural Telecommunications Act of New Mexico. The commission shall select an administrator that demonstrates competence and experience in fund management and telecommunications costing and pricing policies and principles. The administrator shall be reasonably compensated, and the compensation shall be paid directly from the fund. The administrator shall at all times be independent from the commission and, for the purposes of this section, neither the commission nor any member of its staff may be considered a third-party administrator. On or before September 30, 2004 and September 30 of each subsequent year, the administrator shall submit to the commission an accounting of all transactions within the fund. The accounting shall be audited by an independent accounting firm.

D. The fund shall be financed by a surcharge on all intrastate retail public telecommunications services and wireless services, paid by consumers and collected by the providers of the services to which the surcharge applies, as a percentage of the services charged to consumers.

E. The amount of the surcharge shall be sufficient to meet the financial requirements of the fund, including the expenses and compensation for the administrator and the expenses and compensation for the independent accounting firm performing the annual audit of the fund.

F. Beginning July 1, 2003, through the period ending December 31, 2003, the surcharge shall be assessed at the rate of three percent of monthly intrastate retail public telecommunications services and wireless services billings. On or before November 1, 2003, and on or before November 1 of each subsequent year, the administrator shall make a determination of the amount of the surcharge necessary to provide adequate monetary support to the fund for the upcoming year; provided, however, that the maximum monthly surcharge rate under the provisions of this section shall not exceed five percent. In making such a determination, the administrator shall consider any actual or projected surplus or shortfall in the fund for the current year. When determining the amount of the surcharge, the administrator shall exclude from revenue all amounts from surcharges, gross receipts taxes, excise taxes, franchise fees and similar charges. The administrator also shall exclude from revenue all amounts of revenue from services provided pursuant to a low-income telephone assistance plan billed to end-user customers by a telecommunications carrier or a wireless carrier. Commercial mobile radio services carriers and other wireless carriers shall determine their intrastate revenue for the subject reporting period by application of the "safe harbor" presumption of apportionment of interstate and intrastate revenues, as prescribed by the federal communications commission for purposes of computing contributions to the federal universal service fund.

G. The commission shall apply the surcharge on all intrastate retail public telecommunications services and wireless services provided by telecommunications carriers and wireless carriers. The commission shall implement the surcharge based solely on the administrator's determination of the funding requirements by January 1, 2004, and each year thereafter, effective January 1. All telecommunications carriers and wireless carriers shall collect the surcharge on a uniform basis directly from their retail end-user customers through imposition of an explicit, line item percentage charge on the customer's billing statement, commencing with the first billing period beginning after July 1, 2003. Customers who are enrolled in a low-income telephone assistance plan shall be exempted from the surcharge.

H. Beginning with September 15, 2003, each telecommunications carrier and each wireless carrier shall make payment to the administrator for the rural access reform fund representing the total monthly surcharges collected in accordance with this section. The payment shall be remitted within forty-five days after the end of each month."

Section 7. A new section of the Rural Telecommunications Act of New Mexico, Section 63-9H-6.2 NMSA 1978, is enacted to read:

"63-9H-6.2. [NEW MATERIAL] RURAL ACCESS REFORM.--

A. On November 1, 2003, all incumbent rural telecommunications carriers in New Mexico shall reduce intrastate switched access charges by adopting the New Mexico intrastate switched access charges that were in effect as of January 1, 2003 for incumbent local exchange carriers that are not incumbent rural telecommunications carriers.

B. Each incumbent rural telecommunications carrier undertaking intrastate switched access charge reductions pursuant to this section shall file revised access tariffs with the commission that shall become effective upon ten days' notice to the commission. In addition to the tariff filing, each incumbent rural telecommunications carrier shall submit an affidavit to the commission stating that the filing is in compliance with the Rural Telecommunications Act of New Mexico. The commission shall not require or hold a hearing of any kind for intrastate access tariffs filed under the provisions of this section.

C. Concurrent with the reduction in New Mexico intrastate switched access charges required by this section, each provider of intrastate long distance service in New Mexico shall pass on to end users in New Mexico the savings the long distance provider will realize as a result of the reduction in intrastate switched access charges.

D. Incumbent rural telecommunications carriers that reduce their intrastate switched access charges pursuant to this section shall receive distributions from the fund to offset the reduction in revenues that will result from the reduction in intrastate switched access charges in a revenue-neutral manner. The amount of the distribution from the fund to each incumbent rural telecommunications carrier shall be the difference between a calculation of the individual carrier's intrastate access revenues using access minutes from the current calendar year multiplied by the intrastate switched access charges as of January 1, 2003 and a recalculation of intrastate access revenues using the revised intrastate switched access charges multiplied by intrastate access minutes from the current calendar year.

E. In addition to the distributions received pursuant to Subsection D of this section, an incumbent rural telecommunications carrier that is subject to rate of return regulation by the federal communications commission may seek additional distributions from the fund if the carrier experiences a significant increase in the costs of providing intrastate switched access services. In order to qualify for additional distributions pursuant to this subsection, an incumbent rural telecommunications carrier shall apply to the commission for the additional distributions. Applications filed pursuant to this subsection shall be made no later than July 31 in any year and shall provide an explanation of the increase in costs and shall demonstrate that the revenues from the reduced intrastate switched access charges and intrastate long distance service revenues in combination with current distributions received from the fund are not sufficient to recover the carrier's intrastate revenue requirement for access and long distance service, including a reasonable rate of return. In considering applications filed pursuant to this section, the commission shall use the federal communications commission Part 32, 36 and 69 Rules in effect as of the date of the application to calculate the intrastate revenue requirement and shall use the same rate of return that is authorized by the federal communications commission for the purposes of setting interstate access rates for the national exchange carrier association as of the date of the application. The rate base and expenses used in the revenue requirement calculation shall be the same rate base and expenses used in the carrier's interstate cost study filed with the national exchange carrier association. The cost study submission shall be used by the commission as documentation of the increase in cost and verification of the costs to be recovered from the fund. The commission shall act on applications filed pursuant to this subsection within ninety days. Applications not approved or denied within ninety days of the date of the applications shall be deemed approved, and the administrator shall make the additional distributions from the fund. Any additional distributions from the fund shall not become effective before January 1 of the year following the application.

F. The distributions to each incumbent rural telecommunications carrier shall be calculated by the administrator on an annual basis and shall be paid to the incumbent rural telecommunications carrier in equal monthly payments by the end of each month, commencing the same month that intrastate switched access charges are reduced pursuant to this section.

G. No incumbent rural telecommunications carrier shall have any obligation to initiate, maintain or continue any reductions in intrastate switched access charges as required by this section unless the rural access reform fund is adequately funded and distributions from the fund are made in the manner described in this section.

H. Commencing August 1, 2003, all telecommunications carriers and wireless carriers shall report to the administrator on a monthly basis the total amount of revenue generated from the billing of intrastate retail service to end users in the prior month and any information that the administrator deems necessary to quantify or to reconcile contributions to the fund or distributions from the fund. The information shall be provided to the administrator on a confidential basis.

I. No later than December 1, 2006, all telecommunications carriers and wireless carriers, the commission staff and the attorney general shall make a report to the legislature. The report may be made separately or jointly. The report shall include a status report of the fund, recommendations for any changes to the structure, size or purposes of the fund and recommendations for any further reform in intrastate switched access charges."

Section 8. Section 63-9H-7 NMSA 1978 (being Laws 1999, Chapter 295, Section 7) is amended to read:

"63-9H-7. REGULATION OF RETAIL RATES OF INCUMBENT RURAL TELECOMMUNICATIONS CARRIER.--

A. Rates for retail rural public telecommunications services provided by an incumbent rural telecommunications carrier shall be subject to regulation by the commission only in the manner and to the extent authorized by this section.

B. An incumbent rural telecommunications carrier shall file tariffs for all retail public telecommunications services, other than residential local exchange service, which shall be effective after ten days' notice to the commission and publication in a local newspaper in the incumbent service area. An incumbent rural telecommunications carrier shall remain subject to complaint by an interested party subject to Section [10 of the Rural Telecommunications Act of New Mexico] 63-9H-10 NMSA 1978.

C. Rates for residential local exchange service may be increased by an incumbent rural telecommunications carrier only after sixty days' notice to all affected subscribers. The notice of increase shall include:

(1) the reasons for the rate increase;

(2) a description of the affected service;

(3) an explanation of the right of the subscriber to petition the commission for a public hearing on the rate increase;

(4) a list of local exchange areas that are affected by the proposed rate increase; and

(5) the dates, times and places for the public informational meetings required by this section.

D. An incumbent rural telecommunications carrier may increase its rates for residential local exchange service in the manner otherwise provided in this section as necessary to recover a reasonable allocation of costs incurred due to requirements imposed by any federal or state law or rule. An incumbent rural telecommunications carrier that proposes to increase its rates for residential local exchange service shall hold at least one public informational meeting in each public regulation commissioner's district as established by the Public Regulation Commission Apportionment Act in which there is a local exchange area affected by the rate change.

E. Residential local exchange service rates increased by [a] an incumbent rural telecommunications carrier pursuant to Subsection D of this section shall be reviewed by the commission only upon written protest signed by two and one-half percent of all affected subscribers or upon the commission staff's own motion for good cause. The protest shall specifically set forth the particular rate or charge as to which review is requested, the reasons for the requested review and the relief that the persons protesting desire. If a proper protest is presented to the commission within sixty days from the date notice of the rate change was sent to affected subscribers of an incumbent rural telecommunications carrier, the commission may accept and file the complaint and, upon proper notice, may suspend the rates at issue during the pendency of the proceedings and reinstate the rates previously in effect and shall hold and complete a hearing thereon within ninety days after filing to determine if the rates as proposed are fair, just and reasonable. The commission may, within sixty days after close of the hearing, enter an order adjusting the rates at issue, except that the commission shall not set any rate below the intrastate cost of providing the service, that will include cost and rate of return in accordance with Subsection E of Section [6 of the Rural Telecommunications Act of New Mexico] 63-9H-6.2 NMSA 1978. In the order, the commission may order a refund of amounts collected in excess of the rates and charges as approved at the hearing, which may be paid as a credit against billings for future services. If the complaint is denied, the commission shall enter an order denying the complaint within sixty days after the close of the hearing, and the rates shall be deemed approved. For purposes of this section, cost shall also include a reasonable amount of joint and common costs incurred by the incumbent rural telecommunications carrier in its operations and may include other accounting adjustments authorized by the commission.

F. [A] An incumbent rural telecommunications carrier that serves less than five percent of the state's aggregate, statewide subscriber lines may at any time elect to file an application with the commission requesting the commission to prescribe fair, just and reasonable rates for the carrier based on the carrier's revenue, expenses and investment in accordance with traditional rate-making principles.

G. Rates for local exchange, vertical and long distance service to retail end-user customers may be reduced to a level equal to, but not below, the intrastate cost, which shall include cost and rate of return pursuant to Subsection E of Section [6 of the Rural Telecommunications Act of New Mexico] 63-9H-6.2 NMSA 1978. If an incumbent rural telecommunications carrier loses its exemption pursuant to Section 251 of the federal act, the rate for a service, excluding basic service, must cover the cost of the service, including the imputed rate of wholesale service elements as may be required by the commission. The cost of long distance service must also include any interexchange access rates charged to another telecommunications carrier for the service.

H. An incumbent rural telecommunications carrier operating pursuant to this section shall have the ability to offer or discontinue offering special incentives, discounts, packaged offerings, temporary rate waivers or other promotions, or to offer individual contracts."

Section 9. Section 63-9H-9 NMSA 1978 (being Laws 1999, Chapter 295, Section 9) is amended to read:

"63-9H-9. REGULATION OF INDIVIDUAL CONTRACTS TO FACILITATE COMPETITION.--

A. In accordance with the provisions of this section, the commission shall regulate the rates, charges and service conditions for individual contracts of incumbent rural telecommunications carriers for rural public telecommunications services in a manner that authorizes the provision of all or any portion of a public telecommunications service under stated or negotiated terms to any person or entity that has acquired or is preparing to acquire, through construction, lease or any other form of acquisition, similar public telecommunications services from an alternate source.

B. At any time, the [provider of rural public telecommunications services] incumbent rural telecommunications carriers may file a verified application with the commission for authorization to provide a public telecommunications service on an individual contract basis. The application shall describe the telecommunications services to be offered, the party to be served and the parties offering the service, together with other information and in a form that the commission may prescribe. Such additional information shall be reasonably related to the determination of the existence of a competitive offer.

C. An application is deemed approved when filed unless the commission denies it. The commission shall approve or deny any such application within ten days after filing or a different period established by the commission, not to exceed sixty days, giving consideration to the requirements of any contract negotiations. If the commission has not acted on any application within the time period established, the application is deemed granted. The commission shall deny the application only upon a finding that the application fails to set forth prescribed information or that the subject or comparable services are not being offered to the customer by parties other than the applicant or that the contract fails to cover the costs of the service.

D. Within ten days after the conclusion of negotiations, the [provider of rural public telecommunications services] incumbent rural telecommunications carrier shall file with the commission the final contract or other evidence of the service to be provided, together with the charges and other conditions of the service, which shall be maintained by the commission on a confidential basis subject to an appropriate protective order."

Section 10. Section 63-9H-10 NMSA 1978 (being Laws 1999, Chapter 295, Section 10) is amended to read:

"63-9H-10. COMPLAINT ALLEGING VIOLATION BY [PROVIDER OF RURAL PUBLIC TELECOMMUNICATIONS SERVICES] AN INCUMBENT RURAL TELECOMMUNICATIONS CARRIER.--

A. Complaint may be made by any interested party setting forth any act or omission by [a provider of rural public telecommunications services] an incumbent rural telecommunications carrier alleged to be in violation of any provision of the Rural Telecommunications Act of New Mexico or any order or rule of the commission issued pursuant to that act.

B. Upon filing of the complaint, the commission shall set the time and place of hearing, and at least ten days' notice of the hearing shall be given to the party complained of. Service of notice of the hearing shall be made in any manner giving actual notice.

C. All matters upon which complaint may be founded may be joined in one hearing and a complaint is not defective for misjoinder or nonjoinder of parties or causes, either before the commission or on review by the courts. The persons the commission allows to intervene shall be joined and heard, along with the complainant and the party complained of.

D. The burden shall be on the party complaining to show a violation of a provision of the Rural Telecommunications Act of New Mexico or an order or rule of the commission issued pursuant to that act.

E. After conclusion of the hearing, the commission shall make and file an order containing its findings of fact and decision. A copy of the order shall be served upon the party complained of or his attorney.

F. Conduct of the hearings and rendering of decisions shall be governed by the rules of practice and procedure promulgated by the commission."

Section 11. Section 63-9H-12 NMSA 1978 (being Laws 1999, Chapter 295, Section 12) is amended to read:

"63-9H-12. APPEAL OF ORDERS OF THE COMMISSION.--Any [provider of rural public telecommunications services] incumbent rural telecommunications carrier and any other person in interest being aggrieved by a final order or determination of the commission under the Rural Telecommunications Act of New Mexico may file a notice of appeal in the supreme court asking for a review of the commission's final orders. A notice of appeal shall be filed within thirty days after the entry of the commission's final order. Every notice of appeal shall name the commission as appellee and shall identify the order from which the appeal is taken. Any person whose rights may be directly affected by the appeal may appear and become a party, or the supreme court may upon proper notice order any person to be joined as a party."

Section 12. TEMPORARY PROVISION.--If not transferred pursuant to another act of the first session of the forty-sixth legislature, the unexpended or unencumbered balance remaining in the state rural universal service fund shall be maintained by the public regulation commission as a special account. The commission shall recommend to the second session of the forty-sixth legislature a proper use of the balance that will further the purpose of the Rural Telecommunications Act of New Mexico.

Section 13. REPEAL.--Section 63-9H-6 NMSA 1978 (being Laws 1999, Chapter 295, Section 6) is repealed.

Section 14. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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