Regulatory Fees Due August 19; FCC "Red Light" Rules to Apply to Delinquencies

This is a reminder that regulatory fees for the 2004 fiscal year (which began Oct. 1, 2003) are due from all FCC licensees and permittees as well as cable operators by Aug. 19, 2004. After that date, a 25 percent late payment penalty will be imposed on all fees due. Please refer to our advisory of July 7, 2004, for details. The FCC has vowed to aggressively collect regulatory fees and late payment penalty fees beginning Aug. 20, 2004.

Also, on Oct. 1, 2004, new FCC “red light” rules implementing the Debt Collection Improvement Act (“DCIA”) go into effect. Under these rules, the Commission will withhold action on any pending applications until all delinquent non-tax debts are paid. Subject to certain exceptions, such as taxes, this includes debts owed to other branches of the federal government as well as the FCC. Any delinquencies that cannot be resolved within 30 days will result in dismissal of those applications. The DCIA also provides for use of private collection agencies, reporting of debts to consumer credit bureaus and possible referral to the Department of Justice to litigate claims of $2,500 or more.

Please contact us if you desire any assistance in determining or filing regulatory fee payments, or if you have any questions about the Debt Collection Improvement Act.