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

RELATING TO TELECOMMUNICATIONS; ENACTING NEW SECTIONS OF THE NEW MEXICO TELECOMMUNICATIONS ACT CONCERNING GRANTS OF ACCESS TO TELECOMMUNICATIONS COMPANIES AND TERMINATION OF RURAL EXTENSION FUNDS.

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] GRANTS OF ACCESS.--

A. A telecommunications company shall

obtain all rights of way, permits, easements, licenses and other grants necessary for the company to access land from local, state, federal and tribal agencies and all private easements required for the installation of facilities.

B. A telecommunications company is not required to report as a held-order for telecommunications services a request that requires the obtaining of rights of way, permits, easements, licenses or other necessary grants, but the order shall still be recorded as a request for telecommunications services.

C. A telecommunications company shall maintain a list of all requests for telecommunications services that have not been filled because of the failure to obtain rights of way, permits, easements, licenses and other necessary grants. The list shall be filed with the commission as part of any annual reporting requirement pursuant to any alternative form of regulation plan or, if there is no plan, then the list shall be filed annually.

D. By July 31, 2005, the public regulation commission shall review the compliance of a telecommunications company required to perform pursuant to the final order of the public regulation commission in Utility Case Number 3215, et al, entered into on March 8, 2001 to determine if the telecommunications company is in substantial compliance with that agreement. If substantial compliance, as determined by the public regulation commission, can be shown, then Subsections B and C of this section shall continue in effect. If substantial compliance is not shown, then the public regulation commission shall determine a course of action that shall be followed beginning on March 8, 2006. A final order on the review shall be issued by the public regulation commission no later than December 15, 2005.

E. A telecommunications company's obligation to furnish service is dependent upon its ability to secure and retain without unreasonable expense for access; provided that the telecommunications company can show that it has negotiated in good faith and offered compensation for rights of way, permits, easements, licenses and other grants necessary for the company to access land from local, state, federal and tribal agencies or allotments and all private easements required for the installation of facilities. A telecommunications company may refuse to furnish service having a limited demand or involving a large capital expenditure if the service is deemed to be not in the public interest or would place an undue burden on the general body of customers.

F. The commission shall not impose penalties on or take adverse action against a telecommunications company for a delay in installing telecommunications facilities or providing telecommunications service if the telecommunications company demonstrates to the commission that:

(1) the sole reason for the delay is the telecommunications company's inability to obtain rights of way, permits, easements, licenses or other grants from a government or tribal agency for access necessary to the installation of the facilities or the provision of the service;

(2) the telecommunications company has made good faith efforts to obtain the necessary rights of way, permits, easements, licenses or other grants for access; and

(3) the telecommunications company has entered into good faith negotiations with any Indian nation, tribe or pueblo having jurisdiction over land or any owner of an Indian allotment on which rights of way, permits, easements, licenses or other grants are necessary for the telecommunications company to access the land and that the telecommunications company has paid consideration for the rights of way, permits, easements, licenses or other grants in conformance with federal law."

Section 2. A new section of the New Mexico Telecommunications Act is enacted to read:

"[NEW MATERIAL] TERMINATION OF RURAL EXTENSION FUNDS.--

A. As used in this section, "rural extension fund" means a fund reserved, set aside or in any other manner accrued by a telecommunications company pursuant to an order, rule, tariff or other requirement of the commission for the purpose of supporting or subsidizing the extension of lines or facilities by the telecommunications company to serve customers in rural or other low-density service areas.

B. After June 30, 2003, the commission shall not require a telecommunications company to establish or maintain a rural extension fund. The obligation of a telecommunications company to reserve, set aside or in any other manner accrue additional money to an existing rural extension fund shall terminate on July 1, 2003.

C. A telecommunications company with an accrued, unspent balance in a rural extension fund as of July 1, 2003 shall apply the balance in accordance with the requirements of that fund until the balance is expended; provided, however, that the telecommunications company may offset and credit against the balance all contributions by the telecommunications company to telecommunications projects in rural areas; and provided further that the expenditures from a rural extension fund shall not be reported as a credit against investment required pursuant to any alternative form of regulation plan. The telecommunications company shall only invest in projects that the commission agrees will benefit rural areas of the state that are in need of telecommunications facilities or services. No residential or commercial real estate developer shall benefit directly from telecommunications projects funded pursuant to this section."