§  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 NTIA-approved 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.

   

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