Sec. 101.1109  Certifications, disclosures, records maintenance and 
          audits.

    (a) Short-form applications: certifications and disclosure. In 
addition to certifications and disclosures required in part 1, subpart 
Q, of this chapter, each applicant for an LMDS license which qualifies 
as a small business or a business with average gross revenues for the 
three preceding years of more than $40 million but not more than $75 
million shall append the following information as an exhibit to its FCC 
Form 175:
    (1) The identity of the applicant's affiliates and controlling 
principals; and
    (2) The applicant's gross revenues, computed in accordance with 
Sec. 101.1112.
    (b) Long-form applications: certifications and disclosure. In 
addition to the requirements in Sec. 1.2107 of this chapter, each 
applicant submitting a long-form application for an LMDS license and 
qualifying as a small business or a business with average gross revenues 
for the three preceding years of more than $40 million but not more than 
$75 million shall, in an exhibit to its long-form application:
    (1) Disclose separately and in the aggregate the gross revenues, 
computed in accordance with Sec. 101.1112, for each of the following: 
the applicant, the applicant's affiliates, the applicant's controlling 
principals, and, if a consortium of small businesses or businesses with 
average gross revenues for the three preceding years of more than $40 
million but not more than $75 million, the members of the joint venture;
    (2) List and summarize all agreements or other instruments (with 
appropriate references to specific provisions in the text of such 
agreements and instruments) that support the applicant's eligibility as 
a small business or a business with average gross

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revenues for the three preceding years of more than $40 million but not 
more than $75 million, including the establishment of de facto and de 
jure control; such agreements and instruments include, but are not 
limited to, articles of incorporation and bylaws, shareholder 
agreements, voting or other trust agreements, franchise agreements, and 
any other relevant agreements including letters of intent, oral or 
written; and
    (3) List and summarize any investor protection agreements, including 
rights of first refusal, supermajority clauses, options, veto rights, 
and rights to hire and fire employees and to appoint members to boards 
of directors or management committees.
    (c) Records maintenance. All winning bidders qualifying as small 
businesses or businesses with average gross revenues for the three 
preceding years of more than $40 million but not more than $75 million 
shall maintain at their principal place of business an updated file of 
ownership, revenue, and asset information, including any document 
necessary to establish eligibility as a small business or business with 
average gross revenues for the three preceding years of more than $40 
million but not more than $75 million. Licensees (and their successors-
in-interest) shall maintain such files for the term of the license. 
Applicants that do not obtain the license(s) for which they applied 
shall maintain such files until the grant of such license(s) is final, 
or one year from the date of the filing of their short-form application 
(FCC Form 175), whichever is earlier.
    (d) Audits. (1) Applicants and licensees claiming eligibility as a 
small business or business with average gross revenues for the three 
preceding years of more than $40 million but not more than $75 million 
shall be subject to audits by the Commission. Selection for audit may be 
random, on information, or on the basis of other factors.
    (2) Consent to such audits is part of the certification included in 
the short-form application (FCC Form 175). Such consent shall include 
consent to the audit of the applicant's or licensee's books, documents 
and other material (including accounting procedures and practices) 
regardless of form or type, sufficient to confirm that such applicant's 
or licensee's representations are, and remain, accurate. Such consent 
shall include inspection at all reasonable times of the facilities, or 
parts thereof, engaged in providing and transacting business, or keeping 
records regarding licensed LMDS service, and shall also include consent 
to the interview of principals, employees, customers and suppliers of 
the applicant or licensee.