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FCC Record, Volume 19, No. 8, Pages 5879 to 6813, March 31 - April 13, 2004 Page: 6,590

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that all fees mailed five days in advance of the filing deadline will be accepted without penalty, even if
received one day late. The decision makes clear that, but for the extraordinary events of September 11,
2001, a waiver would not be granted.
9. Here, the Commission's Payment Detail Report verifies that Mellon Bank, the Commission's
lockbox bank, received McLeodUSA's FY 2002 regulatory fees on September 26, 2002, a day after the
deadline. Thus, McLeodUSA's fee payment was not timely submitted, and no extraordinary
circumstances existed which would justify a waiver of the late charge penalty. Accordingly, the 25
percent late charge penalty is due.
10. We also disagree with McLeodUSA that Section 9 runs afoul of the Origination Clause of the
Constitution, which requires that "[a]ll Bills for raising Revenue shall originate in the House of
Representatives; but the Senate may propose or concur with Amendments as on other Bills." Section 9 is
part of the Omnibus Budget Reconciliation Act of 1993, which was introduced in the House on May 25,
1993 (H.R. 2264). Section 9 itself was added in conference but also had its genesis in a "virtually
identical" provision in a predecessor bill, H.R. 1674, that the House, though not the Senate, passed in the
previous 102d Congress. See House Conf. Rep. No. 213, 103rd Cong., 1st Sess. 1188 ("...the fee
provisions contained in this section are virtually identical to those contained in H.R. 1674, which passed
the House in 1991. To the extent applicable, the appropriate provisions of the House Report (H.R.Rep
102-207) are incorporated herein by reference.") Further, the House was the first chamber to pass H.R.
2264 as reported out of Conference, including the Section 9 regulatory fee provisions. In any event,
section 9 is not a "bill for raising revenue" because it establishes fees to support a specific government
program and does not raise revenue to support government generally. See United States v. Munoz-Flores,
495 U.S. 385, 397-98 (1990); see also "Policies of the Chair," Congressional Record, vol. 137, Jan. 3,
1991, p. 66 (defining "non-revenue receipts" not subject to the Origination Clause). Finally, the
statement in the Kelley letter that MacLeod cites referred not to the constitutionality of Section 9 but to
ambiguity concerning implementation of the provisions of Section 9 in connection with the collection of
FY 1998 regulatory fees, which is not a matter in issue here.
11. ACCORDINGLY, IT IS ORDERED that the Application for Review filed by McLeodUSA
on April 23, 2003 IS DENIED.
12. IT IS FURTHER ORDERED that McLeodUSA IS DIRECTED to submit payment in the
amount of $92,064.78 and FORM FCC 159 within 30 days from the release of this Memorandum
Opinion and Order.
Marlene H. Dortch


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United States. Federal Communications Commission. FCC Record, Volume 19, No. 8, Pages 5879 to 6813, March 31 - April 13, 2004, book, April 2004; Washington D.C.. ( accessed January 23, 2018), University of North Texas Libraries, Digital Library,; crediting UNT Libraries Government Documents Department.