[Federal Register Volume 80, Number 232 (Thursday, December 3, 2015)]
[Notices]
[Pages 75677-75678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30606]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

[AU Docket No. 14-252, GN Docket No. 12-268, WT Docket No. 12-269; DA 
15-1365]


Wireless Telecommunications Bureau Clarifies Procedure for 
Disbursing Reverse Auction Incentive Payments

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This document clarifies procedure for reverse incentive 
auction payments for Auction 1001.

FOR FURTHER INFORMATION CONTACT: Wireless Telecommunications Bureau, 
Auctions and Spectrum Access Division: For general forward auction 
questions: Mary Margaret Jackson at (202) 418-3641.

SUPPLEMENTARY INFORMATION: This is a summary of the Clarification on 
Reverse Auction Payment Public Notice, AU Docket No. 14-252, GN Docket 
No. 12-268, WT Docket No. 12-269, DA 15-1365, released on November 25, 
2015. The complete text of the Clarification on Reverse Auction Payment 
Public Notice is available for public inspection and copying from 8:00 
a.m. to 4:30 p.m. ET Monday through Thursday or from 8:00 a.m. to 11:30 
a.m. ET on Fridays in the FCC Reference Information Center, 445 12th 
Street SW., Room CY-A257, Washington, DC 20554. The complete text is 
also available on the Commission's Web site at http://wireless.fcc.gov, 
or by using the search function on the ECFS Web page at http://www.fcc.gov/cgb/ecfs/. Alternative formats are available to persons 
with disabilities by sending an email to [email protected] or by calling 
the Consumer & Governmental Affairs Bureau at (202) 418-0530 (voice), 
(202) 418-0432 (TTY).
    1. The Wireless Telecommunications Bureau (Bureau) in response to a 
number of comments and inquiries clarified the circumstances under 
which the Commission will accept payment

[[Page 75678]]

instructions to make incentive payments to an entity other than a 
winning reverse auction bidder. The Commission has stated that 
incentive payments will be disbursed ``to the licensee that is the 
reverse auction applicant'' and that, in making such disbursements, it 
will ``follow winning reverse auction bidders' payment instructions as 
set forth on their respective standardized incentive payment forms to 
the extent permitted by law.'' The Bureau clarified that the winning 
reverse auction bidder need not be the owner of the account to which 
disbursement is made. Winning bidders may instruct that their payments 
be disbursed to a third party, such as a ``qualified intermediary,'' a 
``qualified trust,'' an escrow account, or an account jointly owned by 
parties to a channel sharing agreement (CSA) who are named as owners of 
that account. The flexibility to instruct that payments be disbursed to 
a third party will facilitate channel sharing and thereby promote 
voluntary broadcaster participation in the reverse auction.
    2. In addition, the Bureau clarified that incentive payments will 
be disbursed only to a single payee and into a single account. Any 
division of payments (e.g., among the parties to a CSA or to different 
accounts) will be the responsibility of the winning reverse auction 
bidder or the party to which the winning bidder's payment is disbursed, 
not the Commission. Disbursement will be made to a third party only if 
the winning bidder has so instructed on its incentive payment form. 
Finally, winning bidders and third parties to which winning bidders 
instruct that payments be disbursed will be required: (1) To agree to 
indemnify and to hold harmless the United States from any and all 
liability arising from the disbursement of incentive payments; (2) to 
acknowledge and agree that the payments are subject to offset pursuant 
to applicable law for debts (owed to the Commission or the United 
States) by either the winning bidder or the third party payee 
designated by the winning bidder; and (3) to acknowledge and agree that 
payments will not be made to (or for the benefit of) any winning bidder 
or other payee appearing on the U.S. Treasury's ``Do Not Pay'' portal.
    3. The Bureau is not providing guidance on how the federal tax laws 
may apply to incentive payments. Specific procedures for disbursing 
payments, including the forms for submitting instructions and the 
necessary financial information, will be set forth by future public 
notice.

Federal Communications Commission.
William Huber,
Associate Chief, Auctions and Spectrum Access Division, WTB.
[FR Doc. 2015-30606 Filed 12-2-15; 8:45 am]
BILLING CODE 6712-01-P