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COM/JB2/avs Date of Issuance 9/3/2010
Decision 10-09-017 September 2, 2010
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking on the
Commission's Own Motion to Revise the
Simplified Registration Process for
Non-dominant Interexchange Carriers
Established by Decision 97-06-107.
(Filed July 9, 2009)
DECISION ADDRESSING REVISIONS TO THE REQUIREMENTS ESTABLISHED BY DECISION 97-06-107 FOR REGISTRATION OF NON-DOMINANT INTEREXCHANGE CARRIERS
TABLE OF CONTENTS
7. Should Registration Applicants Be Subject to Expanded Fiscal and Civil Responsibility Checks? Should Fingerprints, Criminal Background Checks and/or Other Showings Be Required For Registration Applicants? 2929
Attachment A - Current Form of Application for Registration
Attachment B - Redlined Form of Application for Registration
Attachment C - Revised Form of Application for Registration
This decision (Decision) adopts revisions to the registration process for non-dominant interexchange carriers (NDIECs) established by Decision 97-06-107. The adopted revisions are in response to the State Controller's 2007 Audit Report that found that the Commission's registration process did not sufficiently scrutinize registration applicants, and the Commission's collection efforts were ineffective against companies that ceased to operate or filed for bankruptcy when fines were imposed.
· Renames the interexchange authority granted pursuant to Pub. Util. Code § 10131 through the simplified registration process established by D.97-06-107 a "registration license" (previously referred to as a "certificate of public convenience and necessity"). A "registration license holder," "registration licensee" or "registrant" is an entity that obtained or obtains interexchange authority pursuant to § 1013 through the simplified registration process established by D.97-06-107 that does not hold interexchange authority pursuant to § 1001;
· Requires all registrants to post a bond to facilitate the collection of fines, penalties, and restitution. The bond amount for existing registrants must be equal to or greater than 10% of intrastate revenues reported to the Commission during the preceding calendar year or $25,000, whichever is greater. The bond amount for new registrants that have not yet reported annual intrastate revenues to the Commission is $25,000;
· Requires registration license applicants to provide resumes of all key officers, directors, and owners of 10% or more of outstanding shares, listing all employment, from officers and directors of applicant, and to provide information on prior or current known investigations by governmental agencies, and any settlement agreements, voluntary payments, or any other type of monetary forfeitures;
· Requires applicants seeking to transfer registration licenses to verify compliance with Commission reporting, fee, and surcharge transmittals;
· Increases the application fee for new and transferred registration licenses from $75 to $250, and
· Establishes a minimum annual user fee of $100 for registrants, including those registrants reporting no intrastate revenues. As a result, registrants must pay an annual user fee based on the Commission-established rate in effect at that time (currently set at 0.18% of gross intrastate revenue) or $100, whichever is greater.
The Decision does not adopt the proposal to require renewal of registration licenses, and does not adopt the proposal to require fingerprinting of registration applicants' officers and directors.
The changes to the registration process adopted by the Decision should reduce the likelihood that enforcement actions against NDIECs will be necessary, and, when enforcement actions against a carrier are necessary, should improve the Commission's ability to collect fines, penalties, and bring about restitution.
1 All statutory references are to the Public Utilities Code unless otherwise indicated.