FOR IMMEDIATE RELEASE
Media Contact: Terrie Prosper, 415.703.1366,
PUC RECEIVES CONTROLLER’S REVIEW OF
FINES AND RESTITUTION COLLECTION EFFORTS
SAN FRANCISCO, August 21, 2007 - The California Public Utilities Commission (PUC) today welcomed a report by the State Controller’s Office of the PUC’s procedures for collecting fines and restitutions imposed on regulated companies.
The review found that, in many cases, it was inherently difficult for the PUC to collect fines and restitutions because the companies that were fined for engaging in fraudulent or inappropriate practices were either no longer operating or had filed for bankruptcy. In addition, when a company refuses to pay a fine, the PUC has to obtain a court judgment, which can be a lengthy process and further compromises the PUC’s ability to collect.
The review offered input on ways the PUC can improve collection efficiency, such as more stringent background checks and the posting of a performance bond by telecommunication companies applying for an operating permit. In response, the PUC will strengthen background checks and initiate a proceeding to consider requirements for a performance bond to ensure payment of fines and restitution to customers.
The review also encouraged the PUC to sponsor legislation to preclude transportation companies from re-registering or transferring title of company-owned vehicles carrying unpaid PUC-imposed fines with the Department of Motor Vehicles and to allow the PUC to pursue collection action without a Superior Court judgment if the PUC’s order to impose fines or restitution is not appealed within a specified timeframe. The PUC will explore such legislation during the 2007-2008 fiscal year.
In addition, the PUC agrees with the State Controller’s Office recommendation to formally adopt its draft operating procedures for fines and collections, which the PUC is currently implementing on a test basis. The draft operating procedures assign collection responsibilities to the various PUC divisions. The draft operating procedures also include accounting controls to ensure that all fines imposed and collected are accurately reflected in the formal accounting records.
“We welcomed the review of our practices and processes and I thank the Controller’s Office for their efforts in preparing the report issued today,” said PUC Executive Director Paul Clanon. “We were working on improvements prior to the review and had already implemented a number of changes to our tracking system. The suggestions from the Controller’s Office will provide further tools for enhancement of our collection efforts.”
For more information on the PUC, please visit www.cpuc.ca.gov.
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California Public Utilities Commission 08/21/07