[Federal Register: July 27, 2005 (Volume 70, Number 143)]
[Rules and Regulations]
[Page 43322-43323]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jy05-13]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 1
[WT Docket No. 05-211; FCC 05-123]
Implementation of the Commercial Spectrum Enhancement Act
AGENCY: Federal Communications Commission.
ACTION: Declaratory ruling.
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SUMMARY: In order to implement the auction revenue requirement in
Commercial Spectrum Enhancement Act (CSEA) for any auction of
frequencies subject to CSEA, the Commission interprets the meaning of
the term ``total cash proceeds'' as used in CSEA to mean winning bids
net of any applicable bidding credit discounts.
DATES: Effective August 26, 2005.
ADDRESSES: Federal Communications Commission, 445 Twelfth Street, SW.,
Washington, DC 20554. People with Disabilities: Contact the FCC to
request materials in accessible formats (Braille, large print,
electronics files, audio format, etc.) by e-mail at FCC504@fcc.gov or
call the Consumer & Governmental Affairs Bureau at 202-418-0531
(voice), 202-418-7365 (TTY).
FOR FURTHER INFORMATION CONTACT: Audrey Bashkin or Gary Michaels,
Auctions and Spectrum Access Division, Wireless Telecommunications
Bureau, (202) 418-0660.
SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's
Declaratory Ruling in WT Docket No. 05-211 adopted June 9, 2005, and
released June 14, 2005. The full text of this Commission decision is
available for inspection and copying during regular business hours at
the FCC's Reference Information Center, Portals II, 445 Twelfth Street,
SW., Room CY-A257, Washington, DC 20554. The complete text of this
decision may also be purchased from the Commission's duplicating
contractor, Best Copy and Printing, Inc., 445 12th Street, SW., Room
CY-B402, Washington, DC 20054, telephone 1-800-378-3160 or http://www.BCPIWEB.com.
The Declaratory Ruling is also available on the FCC's
Web site at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-123A1.doc or http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-05-123A1.pdf.
The Commission will send a copy of this Declaratory Ruling
in a report to be sent to Congress and the Government Accountability
Office pursuant to the Congressional Review Act, see 5 U.S.C.
801(a)(1)(A).
1. CSEA establishes a mechanism to use spectrum auction proceeds to
reimburse Federal agencies operating on ``eligible frequencies'' (the
216-220 MHz, 1432-1435 MHz, 1710-1755 MHz, and 2385-2390 MHz bands, and
certain other frequency bands) that may be reallocated from Federal to
non-Federal use, for the cost of relocating operations. CSEA requires
that the ``total cash proceeds'' from any auction of eligible
frequencies equal at least 110 percent of estimated relocation costs of
eligible Federal entities. CSEA prohibits the Commission from
concluding any auction of eligible frequencies that falls short of this
revenue requirement. CSEA requires the Commission, if it is unable to
conclude an auction for this reason, to cancel the auction, return any
deposits from participating bidders held in escrow, and absolve such
bidders from any obligation to bid in any subsequent reauction of the
spectrum.
2. In order to implement CSEA's revenue requirement, the Commission
must determine the meaning of the term ``total cash proceeds'' as used
in the statute. For the following reasons, the Commission interprets
``total cash proceeds'' for purposes of CSEA to mean winning bids net
of any applicable bidding credit discounts. Under the Commission's
competitive bidding rules, winning bids in an auction do not
necessarily translate into amounts actually owed by bidders. The
discrepancy between gross and net winning bid amounts arises from the
award of bidding credits--i.e., discounts on gross winning bids--to
eligible designated entities, new entrants into the broadcast
marketplace, and winning bidders that undertake to serve previously
underserved tribal lands. In this context, the plain language of the
statute appears to refer to an auction's net winning bids rather than
gross
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winning bids. The word ``cash'' is defined as ``money or its
equivalent;'' or ``ready money'' and ``proceeds'' is defined as ``the
money obtained from a commercial or fund-raising venture: yield.''
3. In addition to the language of the statute, the purpose
underlying the revenue requirement of CSEA supports a determination
that ``total cash proceeds'' is based on winning bids net of bidding
credits. Given that Congress's purpose was to provide a mechanism for
making sufficient funds available to relocating Federal agencies, it is
reasonable to assume that Congress did not intend the Commission, in
determining whether the ``total cash proceeds'' requirement has been
met, to count those portions of winning bids for which the bidder would
receive credit and not have to pay. Accordingly, the Commission does
not read CSEA to equate the amount of the gross winning bids with the
total cash proceeds of the auction.
Federal Communications Commission.
Marlene H. Dortch,
Secretary.
[FR Doc. 05-14841 Filed 7-26-05; 8:45 am]
BILLING CODE 6712-01-P