Directs the public service commission to conduct an in-depth public interest analysis of proposed mergers by telephone corporations

20 Co-sponsors

• Eric Adams
• Joseph P. Addabbo Jr.
• Darrel J. Aubertine
• Neil D. Breslin
• Ruben Diaz
• Martin Malavé Dilan
• Shirley L. Huntley
• Craig M. Johnson
• Velmanette Montgomery
• George Onorato
• Suzi Oppenheimer
• Kevin S. Parker
• José Peralta
• Eric T. Schneiderman
• Daniel L. Squadron
• William T. Stachowski
• Toby Ann Stavisky
• Andrea Stewart-Cousins
• Antoine M. Thompson
• David J. Valesky

BILL NUMBER:S7263C

Title of bill

An act to amend the public service law, in relation to directing the public service commission to conduct an in-depth public interest analysis of proposed mergers by telephone corporations and other telecommunications services providers over which said commission has jurisdiction

Purpose or general idea of the bill

This bill which only applies to residential mergers of telephone companies having gross annual revenue over two hundred million dollars and would require the public service commission to conduct a closer scrutiny of proposed telecommunications industry mergers and/or transfers of control, and to enumerate the public interest factors analyzed during such scrutiny. The bill 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 rate payers directly or by reinvestment in instate infrastructure. This bill does not apply to business only transactions.

Summary of provisions

This law would amend section 99 and section 100 of the public service law.

Justification

The public interest requires that the Public Service Commission's (Commission) analysis of mergers and conclusions drawn there from arise from objective and verifiable empirical evidence, rather than from unsupported statements of policy or conclusory observations. Further, the public interest requires that the Commission's analysis be enumerated for public scrutiny in a transparent manner.

As other states such as New Jersey and California have previously legislated, it is additionally in the public interest to require a portion of the benefits of telecommunications mergers to be returned to the state's ratepayer's as refunds, reinvestment in the infrastructure providing E-911 services or other services, or to finance repairs, maintenance or new construction that might otherwise be unfunded. As noted in the Assembly Committee on Corporations, Authorities and Commission's Interim Report on Telephone Service Quality, and in numerous service quality proceedings at the Commission, additional investment in telecommunications company physical plant is vital to better service, and public safety.

Consequently, this legislation requires the Public Service Commission to conduct its analysis upon an enumerated list of public interest factors, which increases the participation of the public and other

stakeholder groups in such proceedings and enhances the transparency and accountability of the merger analysis process.

Legislative history

S.7263 (2007) - Energy and Telecommunications A.10043 (2007) - Passed Assembly S.6686 (2006) - Energy and Telecommunications A.9809 (2006) - Rules

Fiscal implications

None.

Effective date

This act shall take effect on the 120th day 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 90 days of such date.