Click here for Microsoft Word Version

This document was converted from
WordPerfect or Word to ASCII Text format.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
Word or WordPerfect version or Adobe Acrobat version (above).


                           1.   Before the
                Federal Communications Commission
                     Washington, D.C. 20554

In the Matter of                 )
R and G DISTRIBUTORS, INC.       )
OCN# 6841                        )    File No. EB-01-IH-0017q
                                )    NAL/Acct. No. 200132080048


   Adopted:  April 20, 2001             Released: April 24, 2001

By the Chief, Enforcement Bureau:

                        I.   INTRODUCTION

In this Notice of Apparent Liability for Forfeiture (``NAL''), we 
find that R and G  Distributors, Inc. (``R and G  Distributors'') 
has apparently violated 47 C.F.R.  52.15(f) by willfully failing 
to report its number utilization  and forecast data.  Based  upon 
our review  of  the facts  and  circumstances in  this  case,  we 
conclude that R  and G  Distributors is apparently  liable for  a 
forfeiture in the amount of $6,000.

                         II.       BACKGROUND

Section 251(e) of the Communications Act of 1934, as amended (the 
``Act''), grants  the Commission  plenary jurisdiction  over  the 
North American Numbering  Plan (``NANP'')  and related  telephone 
numbering issues  in  the  United  States.   The  Commission  has 
identified two primary goals  related to this statutory  mandate: 
to ensure that the  limited numbering resources  of the NANP  are 
used efficiently for the benefit of both consumers and the  NANP; 
and to  ensure that  all carriers  have the  numbering  resources 
necessary to compete  in the  rapidly growing  telecommunications 
marketplace.1 The Commission recently adopted administrative  and 
technical measures that  facilitate the  monitoring of  numbering 
resource usage within the NANP and promote more efficient use  of 
numbering resources,  including  new  mandatory  utilization  and 
forecast  data  reporting  requirements.2  Monitoring  individual 
carriers' use of  numbering resources  encourages efficiency  and 
forestalls premature  exhaustion of  numbering resources.   Thus, 
section 52.15(f) of the Commission's rules requires U.S. carriers 
receiving numbering resources from  the North American  Numbering 
Plan  Administrator  (``NANPA''),  a  Pooling  Administrator,  or 
another telecommunications  carrier,  to report  semiannually  on 
their actual and forecast number  usage.3   These data are to  be 
reported on  FCC  Form 502,  the  North American  Numbering  Plan 
Numbering Resource Utilization/Forecast (``NRUF'') Report.  

The staff of the  Common Carrier Bureau determined  that R and  G 
Distributors apparently did  not file the  mandatory NRUF  report 
due on September 15, 2000.  On January 29, 2001, the  Enforcement 
Bureau sent a  letter to  R and G  Distributors, which  explained 
that R and G Distributors might be subject to enforcement  action 
if  it  had  failed  to  comply  with  the  mandatory   reporting 
requirements  of  section  52.15(f).  In  addition,  our   letter 
cautioned R  and G  Distributors that  the NANPA  would  withhold 
numbering resources  as  a sanction  for  failure or  refusal  to 
comply with the mandatory reporting requirements.4 

 Our letter gave R and G Distributors the opportunity to  provide 
proof of filing of the NRUF report due on September 15, 2000, and 
reminded R and G Distributors that  its next NRUF report was  due 
on February 1, 2001.  R and G Distributors did not respond to our 

                       III.    DISCUSSION

Section 503(b)(1)(B)  of the  Act provides  that any  person  who 
willfully or  repeatedly fails  to  comply with  the Act  or  the 
Commission's rules shall be liable for a forfeiture penalty.6  We 
conclude that R and G Distributors failed to file the NRUF report 
due on  September  15,  2000.  Thus,  R  and  G  Distributors  is 
apparently liable  for forfeiture  for the  willful violation  of 
section 52.15  of the  Commission's  rules, which  requires  U.S. 
carriers to report  on their actual  and forecast number  usage.7  
The Commission has held that an act or omission is ``willful'' if 
the violator knew it was  taking the action in question,  whether 
or not there is any intent  to violate the rule.8 Based upon  the 
record before us, it appears that R and G Distributors'   failure 
to comply with the reporting requirements was willful.

In assessing a forfeiture, Section  503(b)(2)(D) of the Act9  and 
section 1.80(b)(4)10  of the  Commission's  rules require  us  to 
consider the  nature, circumstances,  extent and  gravity of  the 
violation, and,  with  respect to  the  violator, the  degree  of 
culpability, any history of prior  offenses, ability to pay,  and 
other such  matters as  justice  may require.   The  Commission's 
Forfeiture Guidelines  establish  a  base amount  of  $3,000  for 
failure to file required forms or information.11  The  Guidelines 
also provide that we may issue  a higher or lower forfeiture,  as 
permitted by statute.12   Based upon the  information before  us, 
and taking into  consideration the factors  expressed in  Section 
503(b)(2)(D) of the Act, we find that a forfeiture that is higher 
than the base amount is warranted in this case.  

The Commission  has  emphasized  that  consistent,  accurate  and 
complete reporting  of number  utilization and  forecast data  is 
critical  to   promoting   efficiency  and   avoiding   premature 
exhaustion of numbering  resources.13 The potential  harm to  the 
integrity  and   objectives   of   the   Commission's   numbering 
administration  and  optimization   strategies  caused  by   non-
compliance  with  the  section  52.15(f)  reporting  requirements 
increases as  a non-compliant  carrier's inventory  of  numbering 
resources increases.  We therefore find that it is appropriate to 
take into account the amount of R and G Distributors'  unreported 
numbering  resources  in   determining  the  forfeiture   amount.  
Numbering resources  are  assigned  either in  blocks  of  10,000 
numbers referred to as central office  codes or NXX codes, or  in 
blocks of 1,000 numbers.  R and G Distributors has been  assigned 
11 NXX codes.  Under these circumstances, we find that an  upward 
adjustment of  the base  forfeiture is  appropriate for  R and  G 
Distributors' failure to  file the required  NRUF report, and  we 
thus  impose  a  forfeiture  in  the  amount  of  $6,000,   which 
represents  double  the  base  forfeiture  for  failure  to  file 
required report.

Our January 29, 2001  letter reminded R  and G Distributors  that 
its next semiannual NRUF report was due on February 1, 2001.   It 
appears that R and G Distributors may not have filed this report.  
Failure to file the February NRUF report, as required by  section 
52.15(f),  would   constitute  a   separate  violation   of   the 
Commission's rules. We warn R and G Distributors that failure  to 
file the February report or  future reports could form the  basis 
for additional notices of apparent liability. Moreover, if R  and 
G  Distributors  fails   to  comply  with   the  NRUF   reporting 
requirements in the  future, the Common  Carrier Bureau may  deem 
that  its  numbering  resources   are  unused,  and  thus   begin 
reclamation of  those numbering  resources.14  In  addition,  the 
Commission may  consider proceedings  to revoke  the section  214 
authorizations and Title III licenses of carriers that persist in 
their non-compliance with section 52.15(f).

                      IV.  ORDERING CLAUSES

Accordingly, IT IS ORDERED THAT, pursuant to 47 U.S.C.   503(b), 
and 47  C.F.R.   1.80,  R and  G  Distributors, Inc.  is  hereby 
of six thousand dollars  ($6,000) for violating the  Commission's 
rules that require  U.S. carriers to  report actual and  forecast 
number usage.

IT IS FURTHER ORDERED THAT, pursuant to 47 C.F.R.  1.80,  within 
thirty days  of  this  NOTICE  OF APPARENT  LIABILITY,  R  and  G 
Distributors, Inc.  SHALL PAY  the full  amount of  the  proposed 
forfeiture or SHALL FILE a written statement seeking reduction or 
cancellation of the proposed forfeiture.

Payment of  the forfeiture  may be  made by  mailing a  check  or 
similar  instrument,  payable  to   the  order  of  the   Federal 
Communications Commission, to the Forfeiture Collection  Section, 
Finance  Branch,  Federal  Communications  Commission,  P.O.  Box 
73482, Chicago, Illinois 60673-7482.  The payment should note the 
NAL/Acct. No. referenced above.

The response, if any, must be mailed to Charles W. Kelley, Chief, 
Investigations and Hearings Division, Enforcement Bureau, Federal 
Communications Commission,  445 12th  Street, S.W,  Room  3-B443, 
Washington DC  20554  and MUST  INCLUDE  the file  number  listed 

The  Commission  will  not  consider  reducing  or  canceling   a 
forfeiture in response to a claim of inability to pay unless  the 
petitioner submits: (1) federal tax  returns for the most  recent 
three-year period; (2) financial statements prepared according to 
generally accepted accounting practices  (``GAAP''); or (3)  some 
other  reliable  and  objective  documentation  that   accurately 
reflects the petitioner's current financial status.  Any claim of 
inability to pay  must specifically  identify the  basis for  the 
claim by reference to the financial documentation submitted.

Requests for  payment  of  the  full amount  of  this  Notice  of 
Apparent Liability under an installment  plan should be sent  to: 
Chief, Revenue and Receivables Operations Group, 445 12th Street, 
S.W., Washington, D.C. 20554.  See 47 C.F.R.  1.1914.

Commission records  indicate  that  R and  G  Distributors,  Inc. 
apparently has not designated an agent for service of  Commission 
decisions, as required by 47  C.F.R.  1.47(h).  Accordingly,  IT 
IS FURTHER  ORDERED  that  a  copy of  this  Notice  of  Apparent 
Liability for Forfeiture  shall be  posted in the  Office of  the 
Secretary.15  In  addition,  a copy  will  be sent  by  Certified 
Mail/Return Receipt  Requested, to  R and  G Distributors,  Inc., 
1665 W. 68th Street, Suite 201, Hialeah, FL 33014 
and to  its  agent registered  with  the Secretary  of  State  of 
Florida, Eziquiel DeLa Torre, 8235 Menteith Terrace, Miami Lakes, 
FL  33016.  




                         David H. Solomon
                         Chief, Enforcement Bureau


1  Numbering Resource Optimization, Report and Order and Further 
Notice of Proposed Rulemaking  in CC Docket  No. 99-200, 15  FCC 
Rcd 7574  (2000)(``NRO  Order''); recon.  and  clarification  in 
part, Second Report  and Order, Order  on Reconsideration in  CC 
Docket 96-98 and CC Docket 99-200, and Second Further Notice  of 
Proposed Rulemaking in  CC Docket 99-200,  FCC 00-429 (Dec.  29, 

2  Id.   

3  The NRUF reports are  due on or before  February 1 and on  or 
before August  1 of  each year.   See 47  C.F.R.   52.15(f)(6).  
However, we note that the deadline for filing reports due August 
1, 2000 was extended to  September 15, 2000. Numbering  Resource 
Optimization, CC Docket No. 99-200, FCC 00-280 (Jul. 31, 2000).   

4  47 C.F.R.   52.25(g)(3)(iv).  See NRO Order,  15 FCC Rcd  at 

5  The Enforcement Bureau mailed the January 29, 2001 letter  to 
R  and  G  Distributors   by  certified  mail,  return   receipt 
requested.   The   return  receipt   reflects  that   R  and   G 
Distributors received the Bureau's letter on February 6, 2001. 

6  47 U.S.C.  503(b)(1)(B).   See also 47 C.F.R.   1.80(a)(2).  
Recently, the Commission  amended Section 1.80  of its rules  to 
make inflation adjustments in the maximum penalties that may  be 
imposed.  Accordingly,  for  a common  carrier,  the  forfeiture 
limit for  each  violation  is  now  $120,000,  with  a  maximum 
potential forfeiture of  $1,200,000 for  a continuing  violation 
involving a  single act  or failure  to act.   See Amendment  of 
Section 1.80(b)  of the  Commission's Rules,  15 FCC  Rcd  18221 

7 Carriers are required to  file NRUF reports by separate  legal 
entity for  each Operating  Company  Number (``OCN'').   See  47 
C.F.R.    52.15(f)(3)(ii).    Our  January   29,  2001   letter 
referenced one OCN for which R and G Distributors apparently had 
not filed an NRUF report due September 15, 2000.

8  Southern  California Broadcasting  Company,  6 FCC  Rcd  4387 

9  47 U.S.C.  503(b)(2)(D).

10  47 C.F.R.   1.80(b)(4).  

11   The Commission's Forfeiture Policy Statement and  Amendment 
of Section  1.80  of the  Rules  to Incorporate  the  Forfeiture 
Guidelines, 12 FCC Rcd 17087  (1997), recon. denied, 15 FCC  Rcd 
303 (1999)(``Forfeiture  Guidelines'')(codified at  47 C.F.R.   
1.80(b)(4) Note).   

12  Id. 

13 NRO Order at 7593.

14 See NRO Order at 7678-7683.  

15  See 47 C.F.R.  1.47(h).