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

RELATING TO TELECOMMUNICATIONS; ENACTING A NEW SECTION OF THE NEW MEXICO TELECOMMUNICATIONS ACT CONCERNING THE ACQUISITION, CONSOLIDATION AND MERGER OF TELECOMMUNICATIONS COMPANIES.

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] ACQUISITIONS, CONSOLIDATIONS AND MERGERS--CONSENT OF COMMISSION.--

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

(1) any two or more telecommunications companies may consolidate or merge with each other so as to form a new concern;

(2) any person and a telecommunications company that provides local exchange service may consolidate or merge with each other so as to form a new concern;

(3) stock of a telecommunications company that provides local exchange service may be acquired by:

(a) any person who prior to the acquisition of any such stock or part thereof is a person subject to regulation or classified as a telecommunications company that provides local exchange service in any jurisdiction;

(b) any person who is or during the course of an acquisition subject to this section becomes subject to regulation or is classified as a telecommunications company that provides local exchange service in any jurisdiction based on reasons other than solely the acquisition described in this paragraph;

(c) any person associated, affiliated or acting in concert with any person subject to regulation or classified as a telecommunications company that provides local exchange service in any jurisdiction for the purposes of any acquisition subject to the provisions of this section;

(d) any person associated, affiliated or acting in concert with a person described in Subparagraph (a), (b) or (c) of this paragraph; or

(e) any person who, during the course of an acquisition subject to this section, merges or consolidates with a person described in Subparagraph (a), (b), (c) or (d) of this paragraph; and

(4) any telecommunications company that provides local exchange service may sell, lease, rent, purchase or acquire any telecommunications company plant or property constituting an operating unit or system or any substantial part thereof; provided, however, that this paragraph shall not be construed to require authorization for transactions in the ordinary course of business.

B. Any consolidation, merger, acquisition or transaction resulting in control or exercise of control or other transaction in contravention of this section without prior authorization of the commission shall be void and of no effect.

C. This section shall apply to all telecommunications companies that provide local exchange service and are regulated pursuant to the provisions of the New Mexico Telecommunications Act or the Rural Telecommunications Act of New Mexico."