19981016.docx

DECISION MEMORANDUM
TO:COMMISSIONER HANSEN
COMMISSIONER NELSON
COMMISSIONER SMITH
MYRNA WALTERS
TONYA CLARK
RITA SCOTT
STEPHANIE MILLER
JOE CUSICK
BEV BARKER
RON LAW
DAVE HATTAWAY
BARB BARROWS
DAVID SCOTT
FROM:DON HOWELL
DATE:OCTOBER 16, 1998
RE:STAFF RECOMMENDATION TO ISSUE SHOW CAUSE ORDERS FOR COMPANIES THAT HAVE FAILED TO PAY THEIR FIRST HALF REGULATORY FEE
On April 22, 1998, the Fiscal Division forwarded each utility a statement of its 1998 annual regulatory fee.  The first half fee was due and payable to the Commission on or before May 15, 1998.  On July 22, 1998, a follow-up letter was sent to companies that had not paid their first-half regulatory fee.  After additional follow-up was performed, there are approximately 65 Title 62 telephone companies which have not paid their regulatory fee.
Of the 65 companies, Staff has ascertained that approximately five companies are no longer in business.  In addition, Staff believes that approximately 20 additional companies may have  merged with other companies, been acquired by other companies, or are themselves no longer in business.  About 55 companies owe $25.00 each and 10 companies owe approximately $21,295 (totalling $22,670).  The highest amount is $17,000 and the second highest is $1,850.
Staff Recommendation
The Staff has two suggestions for collecting the regulatory fee.  First, for those companies that the Staff believes are still in existence and operating, send them a final demand letter indicating that the Commission will file complaints against those companies in court if they fail to pay their assessments (plus interest) by the end of this month. Idaho Code § 61-1005 provides that upon “failure, refusal or neglect of any public utility or railroad corporation to pay such fee the attorney general shall commence an action in the name of the state to collect the same.”  Second, for those companies that the Staff believes are merged, acquired or no longer in business, the Staff recommends that the Commission issue Notices to Show Cause why the Commission should not find that those companies have refused to pay their regulatory assessment.  In addition, the Notice to Show Cause could direct the companies to cease conducting business and that the Commission intends to order local exchange companies to prohibit access to the delinquent companies until the fee has been paid.  Price Lists could also be cancelled.  Ordering the companies to show cause may be a more efficient procedure than filing lawsuits against companies that owe $25.00 and may no longer operate in Idaho.  The Staff suggests that the Commission appoint a hearing officer to conduct the Show Cause hearings as is the case with motor carrier revocations. The Staff has forwarded a list of the delinquent carriers to major LECs to ascertain if the delinquent carriers are still operating in Idaho.
Commission Decision
1.  Does the Commission wish to issue Show Cause Notices to the delinquent companies directing them to show cause why the Commission should not find that the companies have refused to pay their annual fee and to order these companies to cease conducting business until such time as they have paid their regulatory fee.
2.  Does the Commission agree to appoint a hearing officer to conduct the Show Cause hearings?
3.  Does the Commission request that the Attorney General bring suit against those companies which failed to respond to either the Show Cause Orders or that fail to pay their regulatory assessments?

Don Howell
vld/M:regfees.dh