Creates standards by which the public service commission reviews and approves a merger or acquisition between telephone corporations, cable corporations and combination telephone and cable corporations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10061
SPONSOR: Paulin (MS)
 
TITLE OF BILL: An act to amend the public service law, in relation to
creating standards by which the public service commission reviews and
approves a merger or acquisition between telephone corporations, cable
corporations, and combination telephone and cable corporations
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would require closer scrutiny of proposed telecommunications
industry transfers of control, and declares that except where the public
interest requires a contrary result, a portion of the benefits of such
mergers should be returned to the state's ratepayers.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill amends the public service law by adding a new
Article 12 entitled "Provisions relating to telephone corporations,
cable corporations, and combination telephone and cable corporations."
Section 250 of the article contains definitions. Section 251 provides
that no telephone corporation, cable corporation, or combination tele-
phone and cable corporation that has gross annual revenues exceeding one
million dollars shall assign, transfer control of, or merge its stock,
franchise or system ,or any part of such system, to any other person or
corporation without the written consent of the commission. The commis-
sion shall not give such consent unless it has been shown by the parties
that such assignment, transfer of control, merger, or contract is in the
public interest. This section also sets standards that must be satisfied
before the commission may give its consent. Furthermore, the commission
shall issue a report detailing how it reached its decision within thirty
days. Consent shall only be provided by the commission after a full
evidentiary hearing.
Section 2 provides the severability clause. Section 3 provides the
effective date.
 
JUSTIFICATION:
The public interest requires that the Public Service Commission's analy-
sis of mergers and conclusions arise from objective and verifiable
empirical evidence, rather than from unsupported statements of policy or
observations. It is additionally in the public interest to require a
portion of the benefits of telecommunications mergers to be returned to
the state's ratepayers as refunds. reinvestment in the infrastructure
providing E-911 services, or to finance repairs, maintenance or new
construction that might otherwise be unfunded. Finally, requiring the
Public Service Commission to conduct its analysis upon an enumerated
list of public interest factors increases the participation of the
public and other stakeholder groups in such proceedings, which enhances
the transparency and accountability of the merger analysis process.
 
PRIOR LEGISLATIVE HISTORY:
2017:A.3801- Referred to ways and means.
2015-2016: A.1223-D-Ordered to third reading in both years.
2013-2014: A.6248- Referred to corporations.
2011-2012: A.6450- Referred to corporations.
2009-2010: A.2208-D - Referred to ways and means in 2009 and passed
Assembly in 2010.
Same as S.7263-C of 2010- Ordered to a third reading.
 
FISCAL IMPACT:
None
 
EFFECTIVE DATE:
This act shall take effect immediately after it shall have become law,
and any rule or regulation necessary for the timely implementation of
this act on its effective date shall be promulgated within 99 days of
such date.