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

5 Co-sponsors

• Joseph P. Addabbo Jr.
• Tony Avella
• Leroy Comrie
• George Latimer
• Kevin S. Parker

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 create new 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.

Summary of specific provisions

*Section one of the bill:

o requires review and consent of the Public Service Commission to certain proposed mergers o applies higher scrutiny of mergers only to companies with gross annual revenues of $100 million or more; o establishes threshold public interest standards to be utilized by the public service commission during its review of the merger; o mandates consideration of reasonable alternatives or modifications to the proposed merger; o requires the creation of a specific program where services for low-income individuals are offered at reasonable rates; o clarifies that the applicants have the burden of proving by a preponderance of evidence their compliance with the required public interest threshold standards; o formulates the method for determining annual revenues of the applicants; o requires the commission to issue a finding of fact regarding their review and determinations; o requires a full evidentiary hearing; and, o clarifies that review and consent required by this section does not necessarily impact review or consent required by any other section law.

*Section two of the bill is a severability clause

*Section three of the bill is the effective date.

Justification

Over the last two decades, traditional telephone and cable corporations have begun to offer cable, broadband, and telephone services. Increasingly, policymakers are realizing there is a strong need for universal access to high speed broadband and are adopting measures to reach increased access. At the same time, this industry is experiencing a rapid trend of consolidation. In response to the consolidation of telephone and cable corporations, the laws governing the review and approval of these transactions should be modernized. This bill would create an enhanced review process to insure that the public interest is protected when an acquisition or merger is proposed that involves telephone, cable, or combination telephone and cable corporations.

The public interest standard developed in this bill would require Public Service Commission approval to be based on objective and verifiable empirical evidence, rather than from unsupported statements of policy or unsubstantiated observations. This public interest standard would require that customers receive verifiable benefits such as reinvestment and improvement of a corporation's offerings or the creation of a program offering services to low income customers at reduced rates. It would also require the Public Service. Commission to conduct its review with the participation of the public and other stakeholder groups in a transparent manner.

Prior legislative history

Senate: This is a New Bill

Assembly:

A.6248 of 2013-14; A.6450 of 2011-12 - In Corporations A.2208d 2009/2010 Passed Assembly, A.9809 (2006) A.10043 (2007-2008)

Fiscal implications

Some costs related to administrative work of the Department of Public Service.

Effective date

Immediately.