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ALJ/RS1/tcg Date of Issuance 7/15/2009

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

PUBLIC UTILITIES COMMISSION

JULY 9, 2009

SAN FRANCISCO, CALIFORNIA

RULEMAKING 09-07-009

ORDER INSTITUTING RULEMAKING

Summary

By this order, the Commission initiates a proceeding to revise the requirements established by Decision (D.) 97-06-107 for registration of non-dominant interexchange carriers (NDIECs), including those that provide long distance, high-speed data services, operator services and prepaid debit card services.1 This Order Instituting Rulemaking (OIR) is initiated in response to issues raised in the State Controller's 2007 Audit Report.2 The questions we will consider are:

1) Should a performance bond be required as a condition of registration?

2) Should registration certificates be granted for a limited duration, and should registrants be required to prove good standing as a condition for renewal or transfer of registration certificates?

3) Should fingerprints, criminal background checks and/or other showings be required for registration applicants?

4) Should registration applicants be subject to expanded fiscal and civil responsibility checks?

5) Should the nominal $75 application fee be increased, and if so, by how much and why? Should we require a minimum annual user fee, and if so, how much should that annual fee be and why?

6) Should we rename the "registration Certificate of Public Convenience and Necessity" simply a "registration certificate" or "registration license," in keeping with the more limited regulation contemplated in Pub. Util. Code § 885 and § 1013?

1 The Commission's registration requirements do not apply to nonpublic utility providers of operator-assisted services specified in Public Utilities (Pub. Util.) Codes 741 and 741.1 or to prepaid debit card resellers that, pursuant to Pub. Util. Code 885(b), are not required to register.

2 John Chiang, California State Controller, "California Public Utilities Commission - Report of Review, Fines and Restitution Accounting and Collection," August 2007.

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