§  27.1414   Relocation Payment Clearinghouse.

   A Relocation Payment Clearinghouse shall be selected and serve to
   administer the cost-related aspects of the transition in a fair,
   transparent manner, pursuant to Commission rules and oversight, to
   mitigate financial disputes among stakeholders, and to collect and
   distribute payments in a timely manner for the transition of the
   3700-4000 MHz band to the 3.7 GHz Service.

   (a) Selection process. (1) A search committee will select the
   Relocation Payment Clearinghouse. The search committee shall consist of
   member appointed by each of following nine entities: ACA Connects,
   Intelsat, SES, Eutelsat S.A., National Association Broadcasters,
   National Cable Television Association, CTIA, Competitive Carriers
   Association, and WISPA.

   (2) The search committee shall convene no later than June 22, 2020 and
   shall notify the Commission of the detailed selection criteria for the
   position of Relocation Payment Clearinghouse no later than June 1,
   2020. Such criteria must be consistent with the qualifications, roles,
   and duties of the Relocation Payment Clearinghouse specified in this
   subpart. The Wireless Telecommunications Bureau (Bureau) is directed,
   on delegated authority, to issue a Public Notice notifying the public
   that the search committee has published criteria, outlining submission
   requirements, and providing the closing dates for the selection of the
   Relocation Payment Clearinghouse and source (i.e., web page).

   (3) The search committee should proceed by consensus; however, if a
   vote on selection of a Relocation Payment Clearinghouse is required, it
   shall be by a majority.

   (4) In the event that the search committee fails to select a Relocation
   Payment Clearinghouse and to notify the Commission by July 31, 2020,
   the search committee will be dissolved without further action by the
   Commission. In the event that the search committee fails to select a
   Clearinghouse and to notify the Commission by July 31, 2020, two of the
   nine members of the search committee will be dropped therefrom by lot,
   and the remaining seven members of the search committee shall select a
   Clearinghouse by majority vote by August 14, 2020.

   (5) During the course of the Relocation Payment Clearinghouse's tenure,
   the Commission will take such measures as are necessary to ensure
   timely compliance, including, should it become necessary, issuing
   subsequent public notices to select new Relocation Payment
   Clearinghouses(s).

   (b) Selection criteria. (1) The Relocation Payment Clearinghouse must
   be a neutral, independent entity with no conflicts of interest
   (organizational or personal) on the part of the organization or its
   officers, directors, employees, contractors, or significant
   subcontractors.

   (i) Organizational conflicts of interest means that because of other
   activities or relationships with other entities, the Relocation Payment
   Clearinghouse, its contractors, or significant subcontractors are
   unable or potentially unable to render impartial services, assistance
   or advice; the Relocation Payment Clearinghouse's objectivity in
   performing its function is or might be otherwise impaired; or the
   Relocation Payment Clearinghouse might gain an unfair competitive
   advantage.

   (ii) Personal conflict of interest means a situation in which an
   employee, officer, or director of the Relocation Payment Clearinghouse,
   the Relocation Payment Clearinghouse's contractors or significant
   subcontractors has a financial interest, personal activity, or
   relationship that could impair that person's ability to act impartially
   and in the best interest of the transition when performing their
   assigned role, or is engaged in self-dealing.

   (2) The Relocation Payment Clearinghouse must be able to demonstrate
   that it has the requisite expertise to perform the duties required,
   which will include collecting and distributing relocation and
   accelerated relocation payments, auditing incoming and outgoing
   estimates, mitigating cost disputes among parties, and generally acting
   as clearinghouse.

   (3) The search committee should ensure that the Relocation Payment
   Clearinghouse meets relevant best practices and standards in its
   operation to ensure an effective and efficient transition. First, the
   Relocation Payment Clearinghouse should be required, in administering
   the transition, to:

   (i) Engage in strategic planning and adopt goals and metrics to
   evaluate its performance;

   (ii) Adopt internal controls for its operations;

   (iii) Utilize enterprise risk management practices; and

   (iv) Use best practices to protect against improper payments and to
   prevent fraud, waste and abuse in its handling of funds. The Relocation
   Payment Clearinghouse must be required to create written procedures for
   its operations, using the Government Accountability Office's Green Book
   to serve as a guide in satisfying such requirements.

   (4) The search committee must also ensure that the Relocation Payment
   Clearinghouse adopts robust privacy and data security best practices in
   its operations, given that it will receive and process information
   critical to ensuring a successful and expeditious transition.

   (i) When the prohibition in § 1.2105(c) of this chapter applies to
   competitive bidding for licenses in the 3.7 GHz service, the Relocation
   Payment Clearinghouse must make real time disclosures of the content
   and timing of and the parties to communications, if any, from or to
   applicants to participate in the competitive bidding, as defined by
   § 1.2105(c)(5)(i) of this chapter.

   (ii) The Relocation Payment Clearinghouse should also comply with, on
   an ongoing basis, all applicable laws and Federal Government guidance
   on privacy and information security requirements such as relevant
   provisions in the Federal Information Security Management Act, National
   Institute of Standards and Technology publications, and Office of
   Management and Budget guidance.

   (iii) The Relocation Payment Clearinghouse must hire a third-party firm
   to independently audit and verify, on an annual basis, the Relocation
   Payment Clearinghouse's compliance with privacy and information
   security requirements and to provide recommendations based on any audit
   findings; to correct any negative audit findings and adopt any
   additional practices suggested by the auditor; and to report the
   results to the Bureau.

   (c) Reports and information. (1) The Relocation Payment Clearinghouse
   must provide quarterly reports that detail the status of reimbursement
   funds available for clearing obligations, the relocation and
   accelerated relocation payments issued, the amounts collected from
   overlay licensees, and any certifications filed by incumbents. The
   reports must account for all funds spent to transition the 3.7 GHz
   Service Band, including the Relocation Payment Clearinghouse's own
   expenses, e.g., salaries and fees paid to law firms, accounting firms,
   and other consultants. The report shall include descriptions of any
   disputes and the manner in which they were resolved.

   (2) The Relocation Payment Clearinghouse shall provide to the Office of
   the Managing Director and the Wireless Telecommunications Bureau, by
   March 1 of each year, an audited statement of funds expended to date,
   including salaries and expenses of the Clearinghouse.

   (3) The Relocation Clearing House shall provide to the Wireless
   Telecommunications Bureau additional information upon request.