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[council] Update on status Names Council budget and Names Council sanctions procedure for non-payment


Hello All,

As you know we are currently operating under the 
Rules of Procedure for the DNSO Names Council, v7
(http://www.dnso.org/dnso/notes/20020418.NCprocedures-v7.0.html)

The status of payment is available at:
http://www.dnso.org/dnso/notes/20020905.ICANN-DNSO-finances-recap.html

We have received $59,461.30 out of a total 2002 budget of $99,957.10.
We will need to consider the impact of the new ICANN structure and budget to
review our planned expenditure to the end of the current budget period, and
evaluate our financial exposure to non-payment of funds.

>From status of payment, the following constituencies are not up to date with
payments:
cctld
NCDNHC
ISP

Under those rules of procedure, the following sanctions process applies to
non-payment of DNSO constituency dues.

************************************************************
>From section 12 of rules of procedure **********************

>From the date that invoices are mailed/e-mailed to representatives of
Constituencies, if payment is not received by the DNSO or its agent by:

** 30 days, the Constituency is sent a reminder letter and another invoice

** 60 days, the Constituency is sent a delinquency notice and the
delinquency notice is posted on the DNSO Website 

** 90 days, the Constituency is sent a "show cause notice" (in which they
are asked to show cause as to why their voting rights in the Names Council
should not be suspended) and they are charged a 5% late payment fee to cover
the cost to the DNSO of the cost of money. The 5% penalty is added to that
Constituency's dues for the next (not the current) DNSO budget year and used
only for the Names Council's "Reserve Fund."

** 120 days, the Constituency is sent a "final notice to pay" and charged an
additional 5% late payment fee, which is also due as a added payment for
their next year's DNSO dues and also used for the "Reserve Fund"

** 180 days, the voting rights, but not the right to participate, of that
Constituency's representatives to the Names Council are suspended until such
time as the DNSO or its agent receives all past due amounts including any
late payment fees.

These procedures are designed to conform with the ICANN Bylaws and provide
progressively greater pressure on Constituencies that fail to pay their DNSO
dues in a timely way. They are also designed to ensure that Constituencies
that pay promptly do not subsidise those who pay late by imposing late
payment fees on late payers. 

End of section 12 rules of procedure ***********************
************************************************************

The current status against this procedure is as follows:

ISPCPC:
Show-cause notice on July 18, 2002
Final notice August 20, 2002
Loss of voting rights, October 20, 2002
ISPCPC amount owed $13.994 for 2002
A 5% late fee of $699.70 was levied on 18 July, 2002.
An additional 5% late payment fee of $ 699.70 for the final notice, August
20.


NCDNHC:
Show cause notice on July 18, 2002
Final notice August 20, 2002
Loss of voting rights, October 20, 2002
NCDNHC amount owed $13.774 fore 2002
A 5% late fee of $699.20 was levied on 18 July, 2002.
An additional 5% late payment fee of $ 699.20 (final notice)


ccTLDs:
Show cause notice July 18, 2002
Final notice August 20, 2002
Loss of voting rights, October 20, 2002
ccTLD amount owed  $11,994.
A 5% late fee of $599.70 levied on 18 July, 2002
An additional 5% late payment fee of $ 524.75


Conclusion
**********

Until payment is received for all past due amounts, including any late
payment fees, the ccTLDs, NCDNHC, and ISPCPC will lose voting rights as of
20 October 2002.  This will have an impact on the Names Council meeting on
28 Oct 2002.

Note that the lack of voting rights does not stop the participation of all
constituencies in names council meetings.  I hope the non-voting
constituencies will continue to participate actively in names council
activities until (or if) the new GNSO and CNSO are formed.

What I propose is that for any resolution that is voted on after 20 October
2002, we note:
(1) for, against, and abstentions for voting members which will decide names
council resolutions in accordance with our rules of procedure and ICANN
bylaws
(2) for, against, and abstentions for non-voting members - this information
will be made publicly available in the minutes of the names council

Regards,
Bruce Tonkin



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