20120208Stipulation and Motion.pdf

McDevitt & Miller LLP
Lawyers
[phone]
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RECEIVED
420 W. Bannock Street
P.O. Box 2564-8370i012 FEB -8 AM 10= 33
Boise, Idaho 83702 'D, liU('\ 0'.1,...',1 if;
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UTILITIES COtiiiMISSION
Chas. F. McDevitt
Dean J. (Joe) Miler
Februar 8, 2012
Vïa Hand Delivery
Jean Jewell Secreta
Idaho Public Utities Cotnssion
472 W. Washigton St.
Boise, Idaho 83720
Re: TFW- T -09-01
Dear Ms. Jewell:
Enclosed for fig in the above matter, please fid an orial and seven (J) copies ofTraefone
Wireless, Inc.'s Stipultion and Motion.
Kidly retu. a fie staped copy to me.
Very Truy Yours,
McDevitt & Mier IL
WWLDean J. Mier
DJM/hh
Encl.
Dean J. Miller (ISB No. 1968)
Chas. F. McDevitt (ISB No. 835)
McDEVITT & MILLER LLP
420 West Banock Street
P.O. Box 2564-83701
Boise, il 83702
Tel: [phone]
Fax: [phone]
joe($cdevitt-miller.com
chas§mcdevitt-miler.com
Mitchell F. Brecher
Debra McGuie Mercer
GREENBERG TRAURG, LLP
2101 L Street, NW, Suite 1000
Washington, D.C. 20037
Tel: [phone]
Fax: [phone]
brecherm§gtlaw.com
mercerdm§gtaw.com
Attorns for TracFone Wireless, Inc.
"j OR\G\NAL
RECEIVED
20\1 FEB -8 AM \0= 33
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF TRACFONE WIRELESS, INC. FOR
DESIGNATION AS AN ELIGIBLE
TELECOMMUNICATIONS CARER.
) CASE NO. TFW-T-09-01
)
) STIPULATION AND MOTION
)
)
)
)
)
)
)
)
COME NOW TracFrone Wireless Inc., ("TracFone" or "Company") and the Staf of the
Idaho Public Utilities Commission ("Staff'), by and though their respective counsel of record,
and stipulate and agree as follows, to wit:
STIPULA nON AN MOTION-l
1. On September 13, 2011, the Commssion issued Order No. 32358, Final Order on
Reconsideration ("Order"). The Order reafed the Commission's previous
determination in Order No. 32301 that TracFone is responsible for payment of fees
requied by the Idaho Telephone Assistace Program Act ("ITSAP"). With respect to
payment of fees requied by the Idao Emergency Communcations Act ("IECA), the
Order provided that TracFone could either "remit the applicable fees, or seek an offcial
ruling from the IECC (Idaho Emergency Communcations Commission), or another
trbunal with relevant jurisdiction, as to whether the fees applied . . ." (Order at pg. 11-12;
emphasis added).
2. On October 28, 2011, TracFone fied a Notice of Appeal alleging that the Commission
erred by denying TracFone's Application for Designation as an Eligible
Telecommuncations Carer ("ETC") due to non-payment of fees required by ITSAP,
Idaho Code § 56-901, et seq., and the IECA, Idaho Code § 31-4801, et seq. Subsequent
to the filing of TracFone's appeal, Staff and TracFone (hereinafer collectively referred to
as "the Paries") engaged in negotiations to determine whether the Paries could reach a
reasonable compromise that would comport with the Commssion's Order. Pursuant to
these negotiations, the Paries agreed to enter into this Stipulation.
3. TracFone hereby agrees that it will remit, to the ITSAP Administrator, ITSAP fees
retroactive to Januar 1, 2011, calculated in accordance with Idaho Code § 56-904.
TracFone will continue to do so each month thereafer, uness the ITSAP Adminstrator
authorizes a less frequent remittance schedule pursuat to Idaho Code § 56-904(3).
Payment of such fees, including past due amounts, shall be remitted by TracFone to the
ITSAP Admstrator withi foureen (14) days of a final Commssion Order approving
ths Stipulation and conditionally designating TracFone as an ETC.
STIPLATION AND MOTION-2
4. With respect to the applicabilty of fees required by the IECC, TracFone agrees to fie a
Declaratory Judgment Action in State Distrct Cour requesting a determination as to
whether TracFone should be required to pay an "emergency communcations fee"
pursuat to Idaho Code § 31-4804. Withn th (30) days following the filing of said
action, the Commission will enter an Order designating TracFone as an ETC pursuat to
47 U.S.C. § 214(e)(2), for the limted purose of providing Lifeline service to quaified
low-income Idaho consumers. TracFone will file and prosecute in the Distrct Cour of
the Four Judicial Distrct a Complaint for a Declaratory Judgment to determine the
applicability of the IECC fees to its prepaid wireless service in Idaho. TracFone has
attched a draf of its suit for a Declaratory Judgment to this Stipulation. The Complaint
shall name the State of Idaho and the IECC as respondents and the Complaint shall also be
served upon the Association of Idaho Cities and the Idaho Association of Counties.
TracFone agrees to paricipate in such proceeding in good faith. Notwithstanding
TracFone's commitment to fie a Complaint for Declaratory Ruling described in ths
paragraph, nothg herein shall preclude either Pary from seeking resolution of issues
regarding fees administered by IECC by other means, including, but not limited to, pursuit
of legislation.
5. The Paries hereby agree that TracFone's Application for designation as an ETC in Idaho
complies with all of the relevant criteria and requiements for designation as an ETC
under Section 214(e) of the federal Communcations Act of 1934, as amended. 47 U.S.C.
§ 214(e).
6. The Paries hereby agree that the foregoing agreements by TracFone comply with the
spirt and intent of Commission Order No. 32358, and constitute substatial compliance
therewith. The Paries fuher agree that, subject to ths Stipulation, designation of
STIPULATION AN MOTION-3
TracFone as an ETC pursuat to 47 U.S.C. § 214(e)(2) for the limted purose of
providing Lifeline servce to low-income Idaho households will serve the public interest.
7. Once designated as an ETC, TracFone shall have the same entitlement to receive support
from the ITSAP fud as do other ETCs who provide Lifeline service in Idaho. TracFone
herein acknowledges that designation as an ETC in Idaho is subject to anua review.
8. In the event that the Distrct Cour determes that TracFone is subject to IECC fees,
TracFone agrees to reimburse the IECC, or other agencies as the Cour deems appropriate,
any past dues fees dating from Jan 1, 2011. If TracFone does not reimburse the IECC and
elects to seek judicial review of an adverse ruing by the Distrct Cour that the Company
owes IECC fees, TracFone agrees that the Commission may revoke TracFone's
designation as an ETC, pending the outcome of the subsequent judicial review.
9. The Paries agree to work in a cooperative maner, and with the Deparment of Health and
Welfare, to establish Lifeline customer enrollment processes which neither favor nor
disfavor any provider of Lifeline service and which make it reasonably practicable for
Idaho consumers to enroll in the Lifeline program of their choice, including TracFone's
SafeLink Wirelesstß program
10. Accordingly, the Paries request that the Commssion enter its Order approvig ths
Stipulation and designating TracFone as an Eligible Telecommuncations Carer in Idaho.
11. Upon entr of an Order designating TracFone as an ETC in Idaho, TracFone agrees to
promptly file with the Supreme Cour of Idaho a Stipulation of Dismissal of its appeal,
Docket No. 39331-2011, with each par to bear its own costs.
STIPULATION AND MOTION-4
MOTION
TracFone and Stafrespectfilly request that the Commission enter its Order consistent
with the foregoing.
DATED this -1 day of Febru 2012.DATED ths ~ay of Febru 2012.
McDEVITT & MILLER LLP IDAHO PUBLIC UTILITIES COMMISSION
~,Dean J. iller (ISB No. 1968)
TracFone Wireless Inc.
..~v0~~
D:' Price (ISB No. 6864)
Donald L. Howell (ISB No. 3366)
Attorneys for Idaho Public Utilties Commission
STIPULATION AND MOTION-5
CERTIFICATE OF SERVICE
I hereby certify that on the ~ day of Febru, 2012, I caused to be served, via the
methodes) indicated below, tre and correct copies of the foregoing document, upon:
Jean Jewell, Secreta
Idaho Public Utilties Commission
472 West Washigton Street
P.O. Box 83720
Boise,ID 83720-0074
jjewell§puc.state.id. us
Hand Delivered
U.S. Mail
Fax
Fed.. Express
Email
Neil Price, Esq.
Idaho Public Utilties Commssion
472 West Washington Street
P.O. Box 83720
Boise,ID 83720-0074
Neil.Priceæluc.idaho. gov
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
Molly O'Lear, Esq.
Richardson & O'Lear, PLLC
P.O. Box 7218
Boise, il 83707
moll~richardsonandolear.com
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
Cyntha A. Melilo, Esq.
8385 W. Emerald Street
Boise, Idaho 83704
camCBcamlawidao.com
Hand Delivered
U.S. Mail
Fax
Fed. Express
Email
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BY:~ ti~
McDEVITT & MILLER LLP
STIPULATION AND MOTION-6
Dean J. Miller (ISB No. 1968)
Chas. F. McDevitt (ISB No. 835)
McDEVITT & MILLER LLP
420 West Banock Street
P.O. Box 2564-83701
Boise, ID 83702
Tel: [phone]
Fax: [phone]
joe($cdevitt-miller.com
chas($cdevitt-miller.com
Attorneys for TracFone Wireless, Inc.
IN THE DISTRICT COURT OF THE Føé~THJuDICIAL
OF THE STATE OF IDAHO, IN ANÓFOR THE COUNTY
¡t" 'd.,
TRACFONE WILESS, INC
Plaintiff,Case No.
VS.
TH STATE OF IDAHO AND THE
EMERGENCY COMMl~~IIONS
COMMISSION ;/"'. "~.~~:::
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êÕMlLAINTØfR DECLARTORY
.rÖMKNT ,,";,./ ....:...._'".,..;~...'.../"..-
¡¡'"Defendants
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Parties
1. TracFone is a'Delaware Corporation authorized to conduct business in the state of
Idaho. TracFone is a telecommuncations carier engaged in the business of reselling
commercial mobile radio service (CMRS) in the State ofIdaho.
2. The State ofIdaho administrates and enforces the law of the State ofIdaho.
COMPLAIT FOR DECLARTORY JUGMENT- 1
3. The Idaho Emergency Communcations Commssion (IECC) is a governental body
created by the Idaho Emergency Communcations Act, Idao Code §38-4801 et seq.
The duties and responsibilities of the IECC are described in Idaho Code §38-4816.
D.
Jurisdiction and Venue
Code §10-1201 et seq..::~~;::::...".....-
Act, Idaho4. The Cour has jurisdiction pursuant to the Idao
5. Venue is proper in Ada County, Idaho.
"......,;.:.:.........,
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F~çtual Backgrouiia:'dú~::~.
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6. Idaho Code § 31-4804 authorizei~¡;~.l~.tion of an ¿m~~CY Communications",::':. " '//"_~::';::'::'::'::'~:::::",., '.' ";::~~::?f'
Fee from purchasers of access linesiy tei~M~~ providers for the purose of0::. ..;::;.;:.;. ":'):.;:;;'"
financing the ~t~~pperation, ~ancement~d governance of a consolidated
........ - .' .. "..:~ :-. . .. .. ..::;:~:~_:::~:;.
emergency '~~~catioii (911 or E911t~yštem. Section 31-4804(2) provides that
':2'~?.:::..;;:.:;:~~:;;:d;:¡;?:di;'is'd;t.(.......".:; ",;';;.;;.d.~' ;:"".
~7;,,,:"~f~~oiiitiW~ be impose upon and collecte frm
,;'''chasers Of'~~~Jin~s_l:gervice address or place of primar use within the
.:d. ,', .. -, ':".~;: :;',:::_:d;.,."\,:', ~,:,;~:~. :_!Ç:~:",::_::"
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co~:~r 911 servi¿~lea o~ a monthy basis by all telecommuncations providers.
Section:~t~24(3).~er provides that telecommuncations providers shall remit the
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administrator for the 911 service area based upon the area from which the fee was
collected. The issue presented in this case is whether TracFone is responsible for
remitting the Emergency Communcations Fee.
COMPLAINT FOR DECLARTORY JUGMENT- 2
7. TracFone offers wireless telecommuncations service thoughout the nation, including
Idaho, though the vehicle of prepaid aiime cards that are available for purchase
through varous thrd par retal outlets (e.g. Wal-Mar, Target, Best Buy, etc.).
Consumers may also purchase pre-paid airtime online though TracFone's internet
website (ww.tracfone.com). TracFone's prepaid wieless s~roce is offered on a:,:~;.~:',,_.~.-'
~ ,', "j~'"
"pay-as-you-go" basis, not on a monthy basis. TracFç'#~ifers no post-paid or biled
.'; ',~;"-,:.
7/:.'d.~ - - .... '.
('ETC") pursuant to Section 2l1Çe)(2) of the Co.cations Act of 1934, as(.jf;'-C- ",'.,/
amended (47 U.S.C. § 214(e)(2))?~l~on as an ~fe;'~løws telecommuncations
carers to offer discounted telecoinc~fl~;~t6quaified low-income,:,,-,/:,~., - /",:-:.::;;::?:.:..-
consumers anClt~¿f~êá'¡\i~;ftimbursemáÍ1 from the tJniversal Service Fund for the':',';' -::.:.::J/,-;.'"
Lifeline be~erit~;miYide1,~~ose cons~;: On March 1,2010, TracFone filed an
~'~!?ati~~~r:ø:~Igiltl~$:~ ETC with the IPUC, docketed as Case No./_;: .....-,...,__:.::::.:(,'-..,..__dd.'
,liw - T -09-0 1..'(~~få~9 PU8'~eding").1.¡/,. "../. ..,..,....',.
9. I~ií~ç:~urse of the ìRJc Prõ'ceeding, an issue arose as to whether TracFone is legally
i;-:';:.;;...
responsiot~'~,colle5tiid remit the Emergency Communcations Fee to the varous
'-,-'J.r '-,"/,1"--'
counties in w~îìit operates and whether TracFone's voluntar agreement to remit the
The Application may be viewed at:
htt://ww.puc.idaho.gov/internet/cases/tele/TFW /TFWT090 1/20 1 0030 IF1RST%20AMN
DED%20APPLICATION.PDF.
COMPAINT FOR DECLARTORY JUGMENT- 3
Emergency Communcations Fee should be a precondition to granting ETC
designation.
10. On May 21, 2011, the IECC, acting though its Chaian, submitted a letter to the
IPUC contending that TracFone was responsible for remittance of the Emergency
Communcations Fee and urged the IPUC to deny TracFone',~.E:rC Application.,:::~;"'_ ."'d
("IECC Letter"i Although TracFone had been in cont~~th IECC prior to that.:_,._.~.:::;~:;~" .
time, never before had the IECC or any represen1:#V~,of th~~, expressed the.. "OJ - '/?;:,;.~.,','., .-c. ._..~-;'_ '/_t:'
opinon that the 911 fee was applicable to pr~ird, ~~n-biled, no~~~~tplY services't ,'r.:' ,:,~: '--~t,
'-~:':,
like that provided by TracFone.~.""'f::;",', -.:,-..),;::.~d'_-.'./ ..
11. Through varous pleadings, briefs and wrtten tes~y in the IPUC Proceeding,, . "';-::f',
TracFone asserted that it did not~*~~ei Obligati~~!~i~~t the Emergency
Communications Fee because, amori8.o~~ttî~.~,n.ot provide service on a
monthly basis,.#igi~fl.;.required bÝ'ÌØaho Codi§31-4804.
,/,;:¿:I::'~'~~~f-:~.__ ~~r;:_~~: ':'-'~,
12. On Septemb~rltjifl911, tMÇommssion ~bd its final Reconsideration Order No.'_'.' .,",.'t.. "', .?~;:::~~:::_::_:_?:-:::~:-: ',,; ,/ ~':'
, "./". .....'.':'~~..;....;. ,. '. ., ",. . .
32?~l,~'~~lracr~:~ Appiicãti~jt The IPUC's denial of TracFone's ETC
'....
..ti'pplication w~., in ~~...,Q' its conclusion that TracFone's refusal to remit the
';~~~cy comm1tioni~~e is contrar to the pubic interest.",: ::- '-:;~~~:~';: :::~::
':".
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2
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:~~;j/The ,,:IECC letter may be viewed at:
htt://ww.puc.idaho.gov/intemet/cases/tele/TFW/TFWT090 l/public%20comments/20 I 0052
4COMMENT%20(lECC).PDF.
3 The Order may be viewed at:
htt://ww.puc.idaho.gov/intemet/cases/tele/TFW /TFWT090 l/ordnotc/20 11 0919RECONSI
DERATION ORDER NO 32358.PDF.
COMPLAIT FOR DECLARTORY JUGMENT- 4
13. In its final Reconsideration Order No. 32358, the IPUC placed heavy reliance on the
IECC Letter, but stated: "If TracFone disputes the IECC's clear statement regardig
the applicabilty of the IECA fee then it is free to challenge that fiding before the
IECC or other appropriate legal venue" (emphasis added). IPUC Order No. 32358,
at 84. The IPUC fuher concluded: "Absent the Company,,~:'~sent to remit the
,.;....:.....:.'
applicable fees, or seek an offcial ruing from the IEcqf~,~ll0ther trbun with
::~.~:.
relevant jurisdiction, as to whether the fees applie,çi:'$e desi~~p of TracF one as an.c:;::c:~:,""-'_.":": d. _;.
ETC in Idaho would not be in the public int#~~."Id. at 11-12.;';~::"~:'~:~;--:"
.'
14. In accordance with the IPUC's ReconsièÌ~r~tfQ~prderlTr¡;cFone files ~~.tomplaint,-. ~.. ~:-,' " .. ~
for Declaratory Judgment in ths cour, a trbunal WiÎ,Jelevant jursdiction, seeking a
. :'--':.:
declaration regarding whether Tr~F~l~required totitfllh Emergency/.,,', "-:'.':.."f/:":..'/',/.'.. '_~"..-'.-,,/..'--'-f:,';;;),'
monthly basis.:;':.'""\:'::,t -~
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lSiDe issue for det¿tiati~ii"~.tlPon which a declaration is sought is whether.,.. . .;.,.; :;?i.:.". . . ,"d'
T;J6¡~~ is legaiiy6~~gatedto remit the Emergency Communcations Fee under'::-:::d.'-.:,~:)'
Idaho C~~¡~l~i-48~t' Pursuat to Idaho Code §10-1202, TracFone is a person whose
of rights thereunder. TracFone respectfly requests that the Cour enter its
4 Here, the Commssion was impliedly acknowledging that it is not a cour with the judicial
power to interpret or constre statutes that are not withn the scope of its jursdiction under the
Public Utilty Law, but that it would give deference to another state agency, in the absence of
a judicial deterination.
COMPLAINT FOR DECLARTORY JUGMENT- 5
declaration to the effect that it is not legally obligated to remit the Emergency
Communcations Fee.
v.
Justiciable Controversy
16. For the reasons set fort above, there is an actu andjusticiaW~controversy between,"'/,:"f"'/..'..',
TracFone and the Defendants..f:~;~:~-~.
. -'. . .....¡' ....~ -
WHEREFORE, TracFone respectfully requests tl~t~ coJi;~rs its Order:
,.'.....,..'.'. '.:", ....-..;..;'.c"f;.",':,~:,,':-;::::'.;-,...
1.Declarng and determing that InkFone''is not legallÝ;.risible to remit')) ,"'/
. ~",..".;)X"the Emergency Communcations F~,.',;y
,';~':: :.-: ".',
ø
2.Granting such fuer relieliS!~ropriate in the circumstances.
. ",'. ;~:~ ::.-;
',-:-/.;--:-:"::;'.'.,:~: ~:¿::~~'
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LLP
Dean J. Miler
Attorneys for TracFone Wireless, Inc.,
COMPLAIN FOR DECLARTORY JUGMENT- 6