40958 Federal Register / Vol. 82, No. 166 / Tuesday, August 29, 2017 / Rules and Regulations 

1See 47 U.S.C. 1426(a)–(b)(1). 

2See 47 U.S.C. 1428(b). 

3See 47 U.S.C. 1428(a); 47 U.S.C. 1442(f). 

Administrative Procedure Act, 5 U.S.C. 

553 (APA). The APA provides an 

exception to the notice and comment 

procedures when an agency finds there 

is good cause for dispensing with such 

procedures on the basis that they are 

impracticable, unnecessary or contrary 

to the public interest. We have 

determined that under 5 U.S.C. 

553(b)(3)(B) good cause exists for 

dispensing with the notice of proposed 

rulemaking and public comment 

procedures for this rule. Specifically, 

this rulemaking comports and is 

consistent with the statutory authority 

set forth in the Debt Collection 

Improvement Act of 1996, with no 

issues of policy discretion. Accordingly, 

we believe that opportunity for prior 

comment is unnecessary and contrary to 

the public interest, and we are issuing 

these revised regulations as a final rule 

that will apply to all future cases under 

this authority. 

IV. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is a not significant 

regulatory action and, therefore, was not 

subject to review under Section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

The Office of Management and Budget 

(OMB) has reviewed this final rule in 

accordance with the provisions of E.O. 

12866 and has determined that it does 

not meet the criteria for a significant 

regulatory action. As indicated above, 

the provisions contained in this final 

rulemaking set forth the inflation 

adjustments in compliance with the 

Debt Collection Improvement Act of 

1996 for specific applicable CMPs. The 

great majority of individuals, 

organizations and entities addressed 

through these regulations do not engage 

in such prohibited conduct, and as a 

result, we believe that any aggregate 

economic impact of these revised 

regulations will be minimal, affecting 

only those limited few who may engage 

in prohibited conduct in violation of the 

statute. As such, this final rule and the 

inflation adjustment contained therein 

should have no effect on Federal or state 

expenditures. 

V. Regulatory Flexibility Act 

The Administrator of General Services 

certifies that this final rule will not have 

a significant economic impact on a 

substantial number of small business 

entities. While some penalties may have 

an impact on small business entities, it 

is the nature of the violation and not the 

size of the entity that will result in an 

action by the agency, and the aggregate 

economic impact of this rulemaking on 

small business entities should be 

minimal, affecting only those few who 

have engaged in prohibited conduct in 

violation of statutory intent. 

VI. Paperwork Reduction Act 

This final rule imposes no new 

reporting or recordkeeping requirements 

necessitating clearance by OMB. 

List of Subject in 41 CFR Part 105–70 

Administrative hearing, Claims, 

Program fraud. 

Dated: July 18, 2017. 

Timothy Horne, 

Acting Administrator of General Services. 

Accordingly, 41 CFR part 105–70 is 

amended as set forth below: 

PART 105–70—IMPLEMENTATION OF 

THE PROGRAM FRAUD CIVIL 

REMEDIES ACT OF 1986 

■ 1. The authority citation for 41 CFR 

part 105–70 continues to read as 

follows: 

Authority: 40 U.S.C. 486(c); 31 U.S.C. 

3809. 

§ 105–70.003 [Amended] 

■ 2. Amend § 105–70.003 by— 

■ a. Removing from paragraph (a)(1)(iv) 

the amount ‘‘5,500’’ and adding 

‘‘10,781’’ in its place; and 

■ b. Removing from paragraph (b)(1)(ii) 

the amount ‘‘5,500’’ and adding 

‘‘10,781’’ in its place. 

[FR Doc. 2017–18274 Filed 8–28–17; 8:45 am] 

BILLING CODE 6820–81–P 

DEPARTMENT OF COMMERCE 

National Telecommunications and 

Information Administration 

47 CFR Chapter V 

[Docket No. 151209999–7323–02] 

RIN 0660–AA30 

Scope of NTIA’s Authority Regarding 

FirstNet Fees 

AGENCY: National Telecommunications 

and Information Administration, U.S. 

Department of Commerce. 

ACTION: Final rule. 

SUMMARY: Congress authorized the First 

Responder Network Authority 

(FirstNet), an independent authority 

within the National 

Telecommunications and Information 

Administration (NTIA), to assess and 

collect, among other funds, three 

specific types of fees. By law, NTIA 

must review and approve these fees on 

an annual basis. This final rule 

describes NTIA’s overarching scope, 

boundaries, and guidelines for its 

FirstNet fee review and approval 

process as mandated by the Middle 

Class Tax Relief and Job Creation Act of 

2012 (the Act). 

DATES: Effective on August 29, 2017. 

FOR FURTHER INFORMATION CONTACT: 

Patrick Sullivan; Office of Public Safety 

Communications; National 

Telecommunications and Information 

Administration; U.S. Department of 

Commerce; 1401 Constitution Avenue 

NW., Washington, DC 20230; 

psullivan@ntia.doc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Act established FirstNet as an 

independent authority within NTIA 

charged with ensuring the building, 

deployment, and operation of an 

interoperable nationwide public safety 

broadband network (Network).1 It also 

requires FirstNet to be self-sustainable.2

The Act authorizes FirstNet to, among 

other actions, assess and collect the 

following specific fees: (1) Network user 

fees, including user fees associated with 

state use of elements of the core 

network; (2) lease fees related to 

network capacity, pursuant to a covered 

leasing agreement; and (3) fees from 

entities seeking to access or use any 

equipment or infrastructure constructed 

or otherwise owned by FirstNet.3 It 

requires the total amount of these fees, 


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4See 47 U.S.C. 1428(b). 

5See 47 U.S.C. 1428(d). 

6See 47 U.S.C. 1428(c). 

7 47 U.S.C. 1428(b). 

8See 47 U.S.C. 1428(c) (‘‘NTIA shall review the 

fees assessed under this section on an annual basis, 

and such fees may only be assessed if approved by 

the NTIA.’’). 

9 47 U.S.C. 1428. 

10See 47 U.S.C. 1428(c). 

11 47 U.S.C. 1428(b). 

for each fiscal year, to be sufficient, but 

not to exceed, the amount necessary to 

recoup the total expenses of FirstNet as 

it carries out its duties under the Act.4

FirstNet must reinvest amounts received 

from the assessment of these fees for 

constructing, maintaining, operating, or 

improving the Network.5 Finally, as an 

element of NTIA’s oversight 

responsibilities for FirstNet, NTIA must 

review these fees on an annual basis, 

and such fees may only be assessed if 

approved by NTIA.6

This action: (1) Adopts the tenets of 

the proposed rule; (2) finds that 

Congress established a statutory 

framework for NTIA to use to determine 

the reasonableness of FirstNet’s 

proposed fees; (3) establishes the scope 

of NTIA’s fee review and approval 

process in fulfillment of the Act’s 

requirements that FirstNet be selfsustainable and invest back into the 

Network; (4) defines the fees subject to 

NTIA review; and (5) details NTIA’s fee 

review and approval methodology, 

timing, and process. 

NTIA published a proposed rule for 

this action on December 15, 2015 (80 FR 

77592). The preamble to the proposed 

rule gives more background and 

information on FirstNet’s and NTIA’s 

respective duties with regard to the 

Network and related fees and other 

income, and describes the scope and 

method of NTIA’s fee review and 

approval process, which are not 

repeated here. 

II. Response to Comments 

The comment period on the proposed 

rule ended on January 14, 2016. NTIA 

received eight comments: two from 

states, one from a local public safety 

organization, one from a 

telecommunications service provider, 

and four from trade associations. 

Comments on the proposed rule 

included several similar positions, 

inquiries both within and outside the 

scope of the rule, and recommendations 

stemming from the proposed rule and 

its preamble. NTIA has carefully 

considered each of the comments 

submitted. It has grouped and 

summarized the comments according to 

common themes and has responded 

accordingly. All written comments can 

be found at https://

www.regulations.gov/ 

document?D=NTIA-2016-0001-0001. 

A. Standard of NTIA Fee Review and 

Approval 

Comment 1: A majority of 

commenters agreed that NTIA’s fee 

review and approval should be scoped 

to determine whether the amount of 

FirstNet’s fees, in aggregate and in 

combination with any FirstNet non-feebased income, is sufficient to cover, but 

does not exceed the amount necessary 

for, FirstNet’s execution of its statutory 

duties. However, one commenter 

asserted that the Act is not explicit on 

NTIA’s standard of review and offers no 

guidance to NTIA that its fee review and 

approval process should further 

FirstNet’s self-sustainability 

requirements. Thus, the commenter 

asserted, NTIA’s fee review should 

include review and approval of each 

individual fee FirstNet proposes to 

assess and collect. 

Response: Congress did not direct 

NTIA to review each individual fee 

FirstNet proposes to assess and collect. 

The Act mandates that ‘‘[t]he total 

amount of the fees assessed for each 

fiscal year . . . shall be sufficient, and 

shall not exceed the amount necessary, 

to recoup the total expenses of [FirstNet] 

in carrying out its duties and 

responsibilities [under the Act] for the 

fiscal year involved,’’ 7 and that NTIA 

review these fees annually.8 Thus, NTIA 

interprets the fee review requirement to 

compel an annual review of the 

aggregate fees assessed by FirstNet and 

determine whether these fees in toto are 

appropriate to enable FirstNet to recoup 

its expenses and be self-sustaining. This 

interpretation corresponds to the Act’s 

goal of creating ‘‘permanent selffunding.’’ 9

B. Reasonableness of a Proposed Fee 

Comment 1: While several 

commenters contend Congress did not 

require NTIA to conduct a review of the 

reasonableness of fees proposed by 

FirstNet, others disagree. One 

commenter suggests that NTIA misreads 

the statute in not finding a statutory 

requirement for a reasonableness review 

of each fee given the Act’s goal of 

providing broadband service to first 

responders. Other commenters assert, as 

a matter of policy, that NTIA should 

seek state input or otherwise make 

determinations about the reasonableness 

of the fees FirstNet proposes to assess 

and collect. 

Response: Congress did not mandate 

that NTIA engage in a reasonableness 

review of each fee FirstNet proposes to 

assess and collect.10 To ensure that the 

fees that FirstNet assesses are reasonable 

and not excessive, as noted above, the 

Act mandates that ‘‘[t]he total amount of 

the fees assessed for each fiscal year 

. . . shall be sufficient, and shall not 

exceed the amount necessary, to recoup 

the total expenses of [FirstNet] in 

carrying out its duties and 

responsibilities [under the Act] for the 

fiscal year involved.’’ 11 This 

requirement therefore sets the 

boundaries of what constitutes 

reasonable fees for FirstNet to assess 

and collect. Thus, consistent with 

NTIA’s fee review and approval scope, 

NTIA will approve FirstNet’s fees as 

reasonable only if FirstNet’s fees, in 

aggregate and in combination with any 

FirstNet non-fee-based income, are 

sufficient to cover, but do not exceed 

the amount necessary for, FirstNet’s 

execution of its statutory duties for each 

fiscal year. 

Comment 2: One commenter claimed 

that NTIA should expand its fee review 

to control the activity of FirstNet’s 

Network partner and discourage any 

possible anticompetitive activity 

associated with access to spectrum 

licensed to FirstNet. 

Response: The Act does not require 

NTIA to regulate spectrum use; rather, 

the Act assigns decisions on the lawful 

use of FirstNet’s spectrum resources to 

FirstNet. Thus, NTIA’s fee review will 

assess whether the Act’s selfsustainability goals are being achieved— 

not how FirstNet uses its licensed 

spectrum. 

C. Focus of NTIA Fee Review 

Methodology 

Comment 1: Commenters generally 

agreed with NTIA’s method of 

reviewing FirstNet’s proposed fees. One 

party sought clarification on what total 

expenses and costs would be included 

in NTIA’s assessment of whether 

FirstNet’s fees and non-fee-based 

income meet but do not exceed its total 

expenses. 

Response: While such expenses and 

costs were outlined in the preamble of 

the proposed rule, NTIA agrees that 

defining the term ‘‘expenses’’ in the rule 

will provide clarity for FirstNet and 

other stakeholders. For this reason, 

NTIA has amended the rule to include 

a definition of ‘‘expenses’’ as the term 

is discussed in the proposed rule 


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12Further, because the proposed rule preamble, 

fee review methodology, proposed and final rule, 

and new definition of ‘‘expenses’’ all utilize the 

term ‘‘standard financial documentation,’’ NTIA has 

provided a definition of this term in the final rule 

consistent with the proposed rule preamble to 

provide further clarity to stakeholders. 

13This definition reflects the term’s use in the 

proposed rule preamble. 

14For example, Section L.3.3.3 of FirstNet’s 

Request for Proposals for the deployment of the 

Network (RFP) required a schedule for nationwide 

payments to FirstNet. Such payment from FirstNet’s 

Network partner, to be made annually, constitute 

fees identified in 47 U.S.C. 1428(a)(2). See FirstNet 

Nationwide Public Safety Broadband Network 

(NPSBN); Request for Proposals, Solicitation 

Number: D15PS00295E, Department of the Interior 

(Jan. 13, 2016). 

15See State Alternative Plan Program (SAPP) and 

the First Responder Network Authority Nationwide 

Public Safety Broadband Network, Notice and 

Request for Comments, Docket Number: 

160706588–6588–01 (81 FR 46907, Jul. 19, 2016). 

preamble.12 As stated in the final rule 

below, non-fee-based income received 

by FirstNet means, for purposes of this 

rule, FirstNet’s receipt of money from 

any source, transaction, entity, or any 

other means allowed under 47 U.S.C. 

1401 et seq., other than those receipts 

described in the definition of ‘‘fee.’’ 

Comment 2: Commenters generally 

agreed that NTIA should defer to 

FirstNet on any need for reserves, 

working capital, or similar fund 

categories. One commenter sought a 

definition of the term ‘‘necessary 

reserves’’ for purposes of NTIA’s fee 

review and approval process. 

Response: NTIA agrees that defining 

the scope of necessary reserve funds on 

which it will defer to FirstNet provides 

further clarity on NTIA’s fee review 

methodology. Accordingly, NTIA has 

included in the final rule a definition of 

‘‘necessary reserve funds.’’ 13 Necessary 

reserve funds means, for purposes of 

this rule, any amount of money 

identified by FirstNet in its standard 

financial documentation to meet 

expected and unexpected future 

expenses that may arise in the course of 

FirstNet executing its statutory powers, 

duties, and responsibilities under 47 

U.S.C. 1401 et seq., including but not 

limited to capital reserve funds, 

operating reserve funds, maintenance 

reserve funds, and improvement reserve 

funds. 

Comment 3: One commenter 

proposed that, if NTIA disapproves 

FirstNet’s fee proposal, it should clearly 

articulate the reasons for such rejection. 

Response: NTIA agrees that providing 

guidance on reasons for any disapproval 

of FirstNet’s proposed fees will assist 

FirstNet in providing revised fee 

proposals that may be approved. As 

with the proposed rule, the final rule 

requires written notification of NTIA’s 

determination on FirstNet’s proposed 

fees, and NTIA anticipates providing 

relevant details justifying its decision in 

that written communication. 

Comment 4: One commenter 

proposed that NTIA establish a timeline 

during which FirstNet must provide its 

proposed fees and NTIA must review 

and finalize a determination on 

FirstNet’s proposal. 

Response: NTIA agrees that providing 

a detailed timeline for NTIA’s fee 

review and approval process will offer 

certainty to potential users of the 

Network, FirstNet, and its Network 

partner. Accordingly, NTIA has revised 

its final rule to include such a timeline 

for NTIA’s fee review process. As stated 

in the final rule, NTIA will abide by the 

Fee Review Schedule as set out in 

§ 500.5(g)(1) through (5). 

Comment 5: One commenter 

proposed that NTIA should address the 

possibility that FirstNet’s fees may not 

be approved by the start of the new 

fiscal year. The commenter proposed 

that, should FirstNet’s fees not be 

approved by the first day of the fiscal 

year, FirstNet may operate under the 

prior year’s fees until fees for the next 

fiscal year are approved. 

Response: NTIA agrees that providing 

contingency procedures in the event 

that NTIA disapproves FirstNet’s 

proposed fees for a given fiscal year may 

provide continuation of funding sources 

for the Network while FirstNet revises 

its fees. Accordingly, NTIA adds a 

provision to its final rule stating that, 

should NTIA disapprove FirstNet’s 

proposed fees, fees approved by NTIA 

for the prior fiscal year may be assessed 

by FirstNet during the instant fiscal year 

until such time that NTIA approves 

FirstNet’s proposed fees for the instant 

fiscal year. 

D. Fees Subject to NTIA Review and 

FirstNet Reconsideration Upon NTIA 

Disapproval 

Comment 1: Commenters generally 

agreed that NTIA is authorized under 

the Act to only consider the three types 

of fees authorized under 47 U.S.C. 

1428(a). Two commenters sought further 

review on this when there is more 

clarity regarding the specific types of 

revenue FirstNet will collect, especially 

with regard to the specific fee structure 

established with FirstNet’s Network 

partner. 

Response: During FirstNet’s public 

procurement process, NTIA and 

stakeholders had sufficient clarity of 

FirstNet’s planned approach to evaluate 

and shape NTIA’s proposed fee review 

process.14 Accordingly, NTIA 

determines that its rule includes all 

provisions necessary to execute its 

statutory duties and does not at this 

time anticipate a need to revise its rule. 

E. Income Other Than Fees Is Not 

Subject to NTIA Fee Review 

Comment 1: Commenters sought 

clarity on whether NTIA would review 

any charges imposed or income 

collected by FirstNet or any other party 

beyond those specific fees authorized 

under 47 U.S.C. 1428(a). One 

commenter urged NTIA to review and 

approve fees charged by FirstNet’s 

Network partner. 

Response: As indicated in the 

proposed rule, income received by 

FirstNet other than from fees authorized 

under 47 U.S.C. 1428(a) is not directly 

subject to NTIA review under 47 U.S.C. 

1428(b) and (c). NTIA has included 

language further clarifying this 

determination in the final rule. 

However, NTIA will consider such 

non-fee-based income of FirstNet as part 

of its overall determination of whether 

the total of the fees defined in 47 U.S.C. 

1428(a), together with such additional 

income, will be sufficient to recoup 

FirstNet’s total expenses, but not exceed 

the amount necessary to carry out its 

statutory powers, duties, and 

responsibilities under the Act for the 

fiscal year involved. 

F. Comment Outside the Scope of Rule 

Comment 1: One commenter 

requested that NTIA, in developing 

requirements for the review of a state’s 

demonstration of the cost effectiveness 

of its state alternative plan to operate 

the RAN within that state pursuant to 47 

U.S.C. 1442(e)(3)(D)(ii), restrict its 

assessment to whether the applicant 

state has sufficient funds to maintain 

the state’s RAN. 

Response: NTIA has issued a Notice 

and Request for Comment on its duties 

with regard to 47 U.S.C. 1442(e)(3)(D) 

and invites parties to review that Notice 

and any further Notices in that 

proceeding.15

III. Changes From the Proposed Rule 

In response to comments, NTIA 

included definitions of the terms 

‘‘expenses,’’ ‘‘standard financial 

documentation,’’ and ‘‘necessary 

reserves.’’ NTIA clarifies that user fees 

associated with state use of elements of 

the core network, referenced in 47 

U.S.C. 1442(f), are user fees authorized 

by 47 U.S.C. 1428(a) and subject to 

NTIA review. NTIA affirms its fee 

review scope in the context of non-feebased income as that term is defined in 

the rule. NTIA also provides 


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contingency provisions in the event 

NTIA disapproves FirstNet proposed 

fees and sets a timeline during which 

FirstNet and NTIA will propose and 

review fees pursuant to 47 U.S.C. 1428. 

Finally, NTIA makes minor clarifying 

edits in conformance with the Act. 

IV. Classification 

The Director of Administration and 

Chief Financial Officer of the National 

Telecommunications and Information 

Administration, who is performing the 

non-exclusive duties of the Assistant 

Secretary for Communications and 

Information, has determined that this 

final rule is consistent with the Act and 

other applicable law. 

The need to implement these 

measures in a timely manner constitutes 

good cause under authority contained in 

5 U.S.C. 553(d)(3) to waive the 30-day 

waiting period and make the rule 

effective immediately upon publication 

in the Federal Register. It would be 

impractical to have to wait 30 days 

before the rule is effective because 

FirstNet requires the ability to assess 

and collect fees in order to ensure the 

deployment and operation of the 

Network, which will benefit first 

responders and the public at large. In 

addition, this final rule does not impose 

any requirements or obligations on 

members of the public. 

This final rule has been determined to 

be not significant for purposes of 

Executive Order 12866. 

It has been determined that the final 

rule is not major under 5 U.S.C. 801 et 

seq. 

The Chief Counsel for Regulations for 

the Department of Commerce certified at 

the proposed rule stage that this rule 

does not have a significant economic 

impact on a substantial number of small 

entities. NTIA did not receive any 

comments on the certification, and the 

underlying analysis for the certification 

has not changed since the publication of 

the proposed rule. 

Dated: August 23, 2017. 

Leonard Bechtel, 

Chief Financial Officer and Director of 

Administration, performing the non-exclusive 

duties of the Assistant Secretary for 

Communications and Information, National 

Telecommunications and Information 

Administration. 

List of Subjects in 47 CFR Part 500 

Broadband, Fees, First Responder 

Network Authority, National 

Telecommunications and Information 

Administration, Safety, 

Telecommunications. 

■ For the reasons set out in the 

preamble, the National 

Telecommunications and Information 

Administration adds 47 CFR chapter V 

to read as follows: 

47 CFR Chapter V—The First Responder 

Network Authority (Parts 500–599) 

Subchapter A—National 

Telecommunications and Information 

Administration Regulations (Parts 500–549) 

PART 500—REVIEW AND APPROVAL 

OF FEES PROPOSED BY THE FIRST 

RESPONDER NETWORK AUTHORITY 

(FIRSTNET) PARTS 501–549 

[RESERVED] 

Subchapter B—(Parts 550–599) [Reserved] 

Subchapter A—National 

Telecommunications and Information 

Administration Regulations (Parts 500– 

549) 

PART 500—REVIEW AND APPROVAL 

OF FEES PROPOSED BY THE FIRST 

RESPONDER NETWORK AUTHORITY 

(FIRSTNET) 

Sec. 

500.1 Purpose and scope. 

500.2 General definitions. 

500.3 NTIA duty to review FirstNet 

proposed fees. 

500.4 Scope of NTIA review of FirstNet 

proposed fees. 

500.5 Methodology of NTIA fee review and 

approval process. 

Authority: 47 U.S.C. 1401. 

§ 500.1 Purpose and scope. 

Sections 500.2 through 500.5 of this 

part implement 47 U.S.C. 1428(c) as 

codified pursuant to the Middle Class 

Tax Relief and Job Creation Act of 2012 

(Pub. L. 112–96, Title VI, 126 Stat. 256 

(codified at 47 U.S.C. 1401 et seq.)) 

(Act), which requires the National 

Telecommunications and Information 

Administration (NTIA) to annually 

review fees the First Responder Network 

Authority (FirstNet) proposes to assess 

pursuant to 47 U.S.C. 1428(a). 

§ 500.2 General definitions. 

Expenses means incursions of costs 

by FirstNet in the course of executing its 

statutory powers, duties, and 

responsibilities under 47 U.S.C. 1401 et 

seq., including but not limited to: 

(1) Salaries and Benefits; 

(2) Travel; 

(3) Services: Federal Sources; 

(4) Services: Non-Federal Sources; 

(5) Facilities Rental; 

(6) Supplies, Materials, and Printing; 

(7) Equipment; and 

(8) Other Expenses incurred for future 

contract award, necessary reserve funds, 

including for all other permitted 

purposes under the Act, or other 

authorized expenses as identified in 

FirstNet’s standard financial 

documentation. 

Fee means: 

(1) FirstNet’s receipt of money from: 

(i) Network User Fees, including User 

Fees Associated with State Use of 

Elements of the Core Network; 

(ii) Lease Fees Related To Network 

Capacity; or 

(iii) Lease Fees Related To Network 

Equipment And Infrastructure, as those 

terms are defined under 47 U.S.C. 

1428(a) and 47 U.S.C. 1442(f). 

(2) Income received by FirstNet other 

than from fees authorized under 47 

U.S.C. 1428(a) is not directly subject to 

NTIA review. However, NTIA will 

consider such non-fee-based income as 

part of its determination of whether 

such income, when combined in 

aggregate with the fees authorized under 

47 U.S.C. 1428(a), will be sufficient to 

recoup FirstNet’s total expenses, but not 

exceed the amount necessary to carry 

out its statutory powers, duties, and 

responsibilities under 47 U.S.C. 1401 et 

seq. for the fiscal year involved. 

FirstNet means the First Responder 

Network Authority. 

Fiscal Year means the 12-month 

accounting period for the federal 

government, which begins on October 1 

of a given year and ends on September 

30 of the subsequent year. 

Necessary reserve funds means any 

amount of money identified by FirstNet 

in its standard financial documentation 

to meet expected and unexpected future 

expenses that may arise in the course of 

FirstNet executing its statutory powers, 

duties, and responsibilities under 47 

U.S.C. 1401 et seq., including but not 

limited to capital reserve funds, 

operating reserve funds, maintenance 

reserve funds, and improvement reserve 

funds. 

Non-fee-based income received by 

FirstNet means FirstNet’s receipt of 

money from any source, transaction, 

entity, or any other means allowed 

under 47 U.S.C. 1401 et seq., other than 

those receipts described above in the 

definition of ‘‘fee.’’ 

NTIA means the National 

Telecommunications and Information 

Administration. 

NTIA’s fee review and approval 

process means the process by which 

NTIA executes its duties under 47 

U.S.C. 1428(c). 

Standard financial documentation 

means documents developed by 

FirstNet in its ordinary course of 

business that detail FirstNet’s current 

and projected financial condition, 

which may include but is not limited to: 

(1) FirstNet’s budget documents 

produced in the normal course of its 

business; 


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(2) FirstNet’s financial statements 

produced in the normal course of its 

business; 

(3) FirstNet’s annual financial audit 

documents, which detail FirstNet’s 

revenue categories and statutory 

authority for such categories; 

(4) FirstNet’s annual budget reports 

submitted as part of the President’s 

Budget; and 

(5) FirstNet’s annual report to 

Congress. 

§ 500.3 NTIA duty to review FirstNet 

proposed fees. 

As required under 47 U.S.C. 1428(c), 

NTIA shall exclusively review fees, 

which must be proposed by FirstNet in 

writing, through NTIA’s review and 

approval process conducted on an 

annual basis. 

§ 500.4 Scope of NTIA review of FirstNet 

proposed fees. 

NTIA shall approve FirstNet proposed 

fees only if such fees, when combined 

with any non-fee-based income 

projected to be received by FirstNet, are 

sufficient, but do not exceed the amount 

necessary, to recoup FirstNet’s projected 

total expenses in carrying out its 

powers, duties, and responsibilities 

under 47 U.S.C. 1401 et seq. for the 

fiscal year involved. 

§ 500.5 Methodology of NTIA fee review 

and approval process. 

(a) Fee review approach. To execute 

NTIA’s fee review and approval process, 

NTIA shall utilize FirstNet’s submission 

and FirstNet’s standard financial 

documentation. 

(b) Deference to FirstNet on necessary 

reserve funds. In executing NTIA’s fee 

review and approval process, NTIA 

shall defer to FirstNet with respect to its 

designated amount, use, and retention 

of necessary reserve funds. NTIA shall 

consider any such designated funds to 

be a part of FirstNet’s total expenses in 

carrying out its powers, duties, and 

responsibilities under 47 U.S.C. 1401 et 

seq. for the fiscal year involved. 

(c) Determination of fee review. (1) 

NTIA shall make one of the following 

determinations annually upon review of 

FirstNet’s proposed fees: 

(i) FirstNet’s proposed fees, in 

aggregate, when combined with any 

projected non-fee-based income to be 

received by FirstNet, meet but do not 

exceed FirstNet’s projected total 

expenses; 

(ii) FirstNet’s proposed fees, in 

aggregate, when combined with any 

projected non-fee-based income to be 

received by FirstNet, do not meet 

FirstNet’s projected total expenses; or 

(iii) FirstNet’s proposed fees, in 

aggregate, when combined with any 

projected non-fee-based income to be 

received by FirstNet, exceed FirstNet’s 

projected total expenses. 

(2) Upon making any of the 

determinations in paragraphs (c)(1)(i) 

through (iii) of this section, NTIA will 

communicate its determination in 

writing to the Chair of the FirstNet 

Board and the FirstNet Chief Executive 

Officer. 

(d) Outcome of determination of fee 

review. (1) Should NTIA make the 

determination listed in paragraph (c)(1) 

of this section, FirstNet may assess the 

proposed fees. 

(2) Should NTIA make one of the 

determinations listed in paragraph (c)(2) 

or (3) of this section, NTIA will 

disapprove FirstNet’s proposed fees, 

and FirstNet may not assess those 

proposed fees. 

(e) Revision of proposed fees. Upon a 

disapproval of FirstNet’s proposed fees 

as described in paragraph (d)(2) of this 

section, or upon FirstNet’s 

determination that it must revise NTIAapproved fees to ensure compliance 

with 47 U.S.C. 1428(b), FirstNet shall 

prepare a revised written submission to 

NTIA, which shall evaluate any 

proposed fees therein consistent with 

the requirements in §§ 500.1 through 

500.5. Should NTIA disapprove of 

FirstNet’s proposed fees pursuant to this 

section, fees approved by NTIA for the 

prior fiscal year may be assessed by 

FirstNet during the instant fiscal year 

until such time that NTIA approves 

FirstNet’s proposed fees for the instant 

fiscal year pursuant to paragraph (g) of 

this section. 

(f) Communication of NTIA fee 

approval or disapproval. Approval or 

disapproval of FirstNet-proposed fees 

shall be communicated in writing by the 

Assistant Secretary for Communications 

and Information and Administrator, 

National Telecommunications and 

Information Administration, U.S. 

Department of Commerce, to the Chair 

of the FirstNet Board and FirstNet Chief 

Executive Officer. 

(g) Process and timing of NTIA fee 

review. For each fiscal year, FirstNet 

and NTIA will abide by the following 

Fee Review Schedule: 

(1) Prior to assessing fees for a given 

fiscal year, FirstNet shall submit to 

NTIA its proposed fees for that given 

fiscal year and all standard financial 

documentation that will support its fee 

projections pursuant to this part. 

(2) No later than 15 days after FirstNet 

submits items under paragraph (g)(1) of 

this section, NTIA shall either notify 

FirstNet of its approval of the FirstNet 

proposed fees in accordance with 

paragraph (d) of this section or submit 

any questions or requests for 

clarifications to FirstNet regarding the 

submission listed in paragraph (g)(1). 

(3) No later than 15 days after FirstNet 

receives questions or requests for 

clarification from NTIA under 

paragraph (g)(2) of this section, FirstNet 

shall submit responses to NTIA. 

(4) No later than 15 days after 

receiving responses from FirstNet under 

paragraph (g)(3) of this section, NTIA 

shall approve or disapprove FirstNet’s 

proposed fees pursuant to paragraph (d) 

of this section. 

(5) Should NTIA disapprove 

FirstNet’s proposed fees, FirstNet and 

NTIA will abide by the following 

Revised Fee Review Schedule until such 

time as NTIA approves the revised fees: 

(i) 15 days after disapproval: FirstNet 

shall submit revised proposed fees to 

NTIA pursuant to paragraph (e) of this 

section. 

(ii) 15 days after revised fees 

submission to NTIA: NTIA shall submit 

any questions or requests for 

clarifications to FirstNet regarding the 

submission listed in paragraph (g)(5)(i) 

of this section. 

(iii) 15 days after NTIA submits 

questions to FirstNet: FirstNet shall 

submit responses to the questions listed 

in paragraph (g)(5)(ii) of this section. 

(iv) 15 days after NTIA receives 

responses from FirstNet to NTIA 

questions, NTIA shall approve or 

disapprove FirstNet’s revised proposed 

fees pursuant to paragraph (d) of this 

section. 

PARTS 501–549—[RESERVED] 

Subchapter B—(Parts 550–599) [Reserved] 

[FR Doc. 2017–18221 Filed 8–28–17; 8:45 am] 

BILLING CODE 3510–60–P 


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