71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 885
Senate Bill 300
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Public Utility Commission)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Requires approval by Public Utility Commission of certain
acquisitions of interest in telecommunications utility that
provides basic telephone service and that has 50,000 or more
access lines.
A BILL FOR AN ACT
Relating to acquisitions of interests in telecommunications
utilities.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 3 of this 2001 Act are added to
and made a part of ORS chapter 759. + }
SECTION 2. { + (1) The Legislative Assembly finds and declares
that:
(a) The protection of the citizens of this state who receive
basic telephone service from telecommunications utilities is a
matter of fundamental statewide concern.
(b) ORS 759.380 requires that the Public Utility Commission
approve the acquisition of a telecommunications utility's stocks,
bonds and certain other property used for utility purposes, but
only when the acquisition is made by another telecommunications
utility. Current law does not require the commission's approval
of an acquisition of these properties by persons other than
telecommunications utilities.
(c) The acquisition by any person of any substantial influence
over the policies and actions of an Oregon telecommunications
utility that provides basic telephone service could result in
harm to the customers of the utility, including but not limited
to the degradation of telecommunications utility service, higher
telecommunications rates, weakened financial structure and
diminution of telecommunications utility assets.
(2) By reason of the findings made in this section, it is the
policy of the State of Oregon to regulate acquisitions of
interests in telecommunications utilities that provide basic
telephone services in the manner provided by section 3 of this
2001 Act and that have 50,000 or more access lines. The
regulation shall be for the purpose of preventing unnecessary and
unwarranted harm to the customers of the telecommunications
utilities. + }
SECTION 3. { + (1) Except as provided in subsection (2) of
this section, a person may not directly or indirectly acquire any
interest in a telecommunications utility that provides basic
telephone service and that has 50,000 or more access lines if:
(a) The person making the acquisition is an affiliated interest
with the telecommunications utility under ORS 759.010 (1), (2) or
(3); or
(b) The person making the acquisition would be an affiliated
interest with the telecommunications utility under ORS 759.010
(1), (2) or (3) after the acquisition.
(2) A person may make an acquisition prohibited in subsection
(1) of this section if the Public Utility Commission approves the
acquisition by an order of the commission. A person who seeks to
make an acquisition prohibited in subsection (1) of this section
must make written application to the commission for approval of
the acquisition. The applicant must attach to the application
copies of all written agreements and other documents relating to
the proposed acquisition. In addition, the application must
contain detailed information on the following:
(a) The applicant's identity and financial ability;
(b) The background of the key personnel associated with the
applicant;
(c) The sources and amounts of funds or other consideration to
be used in the acquisition;
(d) The applicant's compliance with federal law in carrying out
the acquisition;
(e) Whether the applicant or any of the key personnel
associated with the applicant has ever violated any state or
federal statutes regulating the activities of telecommunications
utilities;
(f) The applicant's experience in operating telecommunications
utilities providing basic telephone service;
(g) The applicant's plan for operating the telecommunications
utility;
(h) How the acquisition will serve the telecommunications
utility's customers in the public interest; and
(i) Such other information as the commission may require by
rule.
(3) The commission promptly shall examine and investigate each
application made under this section and shall issue an order
approving or denying the application within one year after the
application is received by the commission.
(4) The applicant has the burden of showing that approval of
the application will serve the telecommunications utility's
customers in the public interest. If the commission determines
that the applicant has met that burden, the commission shall
issue an order approving the application. The commission may
condition approval of the application upon the applicant's
satisfactory performance or adherence to specific
requirements. + }
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