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<p class="MsoNormal"><span lang="EN-US" style="font-size:11.0pt">Dear CCWG members,<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-size:11.0pt">Please find below input from ICANN Legal on two questions submitted by the Leadership Team as points of clarification regarding public comments on the proposed Final Report. The full text of the
relevant public comments are included in the attached templates for reference.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><i><span style="font-size:11.0pt;color:black;mso-fareast-language:EN-GB">Comment from the BC</span></i><i><span lang="EN-US" style="font-size:11.0pt;color:black;mso-fareast-language:EN-GB"> [Public Comment Question 2, Comment 5]</span></i><i><span style="font-size:11.0pt;color:black;mso-fareast-language:EN-GB">:
“The BC notes that the CCWG has already recognized that Bylaws must be amended to eliminate Request for Reconsideration and Independent Review Panel from the available remedies to challenge grants. These are amendments to Fundamental By-Laws and which should
require Empowered Community approval.”<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="color:black;mso-fareast-language:EN-GB"><o:p> </o:p></span></i></p>
<ul style="margin-top:0cm" type="disc">
<li class="MsoNormal" style="color:#4472C4;mso-list:l0 level1 lfo1"><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">Question for </span></i><i><span lang="EN-US" style="font-size:11.0pt;mso-fareast-language:EN-GB">ICANN Legal</span></i><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">:
It is the leadership team’s understanding that a carve out would be needed from existing
</span></i><i><span lang="EN-US" style="font-size:11.0pt;mso-fareast-language:EN-GB">A</span></i><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">ccountability
</span></i><i><span lang="EN-US" style="font-size:11.0pt;mso-fareast-language:EN-GB">M</span></i><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">echanisms as any Board decision could be challenged under the existing
</span></i><i><span lang="EN-US" style="font-size:11.0pt;mso-fareast-language:EN-GB">A</span></i><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">ccountability
</span></i><i><span lang="EN-US" style="font-size:11.0pt;mso-fareast-language:EN-GB">M</span></i><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">echanisms (including the approval of allocation of auction proceeds). Therefore, an exemption is needed
if Board decisions on auction proceeds are not challengeable under existing </span>
</i><i><span lang="EN-US" style="font-size:11.0pt;mso-fareast-language:EN-GB">A</span></i><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">ccountability
</span></i><i><span lang="EN-US" style="font-size:11.0pt;mso-fareast-language:EN-GB">M</span></i><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">echanisms. Can you confirm that this is correct?</span></i><i><span style="mso-fareast-language:EN-GB"><o:p></o:p></span></i></li></ul>
<p class="MsoNormal" style="margin-left:36.0pt"><i><span style="color:#4472C4;mso-fareast-language:EN-GB"><o:p> </o:p></span></i></p>
<ul style="margin-top:0cm" type="disc">
<li class="MsoNormal" style="color:#4472C4;mso-list:l0 level1 lfo1"><b><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">Legal Response: Yes, this is correct. This will require an amendment to the Fundamental Bylaws, as the BC note suggests, in
order to effectuate this carve out. The Fundamental Bylaws process requires Empowered Community approval. This does not mean that the Empowered Community must approve the CCWG Final Report, though we should be clear (as there is cross-over between the Decisional
Participants in the Empowered Community and the Chartering Organizations for the CCWG) that a Bylaws change is necessary and will be forthcoming. Of course, the Bylaws change will have to be appropriately drafted and will be subject to all appropriate processes.</span></i></b><i><span style="mso-fareast-language:EN-GB"><o:p></o:p></span></i></li></ul>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#212121;mso-fareast-language:EN-GB"> </span><span style="color:black;mso-fareast-language:EN-GB"><o:p></o:p></span></p>
<p class="MsoNormal"><i><span style="font-size:11.0pt;color:#212121;mso-fareast-language:EN-GB">Comment from the BC</span></i><i><span lang="EN-US" style="font-size:11.0pt;color:#212121;mso-fareast-language:EN-GB"> [Public Comment Question 1, Comment 5]</span></i><i><span style="font-size:11.0pt;color:#212121;mso-fareast-language:EN-GB">:
". . .The BC is also concerned that the final recommendation does not contain sufficient detail to ensure that the empowered community retains the ability to oversee ICANNs proposed budget and the disbursement of the auction proceeds. In particular, <b>the
Empowered Community should retain its ability to enforce accountability mechanisms related to items in the ICANN budget that are proposed to be allocated to grant making activity</b>. The Final Report should also clarify that any changes to the bylaws needed
to implement the report are not intended to strip the Empowered Community of its budgetary authority."<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="color:black;mso-fareast-language:EN-GB"><o:p> </o:p></span></i></p>
<ul style="margin-top:0cm" type="disc">
<li class="MsoNormal" style="color:#4472C4;mso-list:l1 level1 lfo2"><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">Question for
</span></i><i><span lang="EN-US" style="font-size:11.0pt;mso-fareast-language:EN-GB">ICANN Legal</span></i><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">: Regarding the text in bold, it is not clear to the leadership team that the Empowered Community
is relevant to the allocation of auction proceeds. As auction proceeds funds are kept and accounted for separately, does it even fall within the EC’s purview?<o:p></o:p></span></i></li></ul>
<p class="MsoNormal"><i><span style="font-size:11.0pt;color:#4472C4;mso-fareast-language:EN-GB"><o:p> </o:p></span></i></p>
<ul style="margin-top:0cm" type="disc">
<li class="MsoNormal" style="color:#4472C4;mso-list:l1 level1 lfo2"><b><i><span style="font-size:11.0pt;mso-fareast-language:EN-GB">Legal Response: The place where the Empowered Community's powers come in is only in relationship its specified powers in the
Bylaws. The Empowered Community powers includes rejection powers on the Five-year strategic plan, on the Five-year operating plan, on the annual operating plan and on the annual budget, which would include grant making activities as relevant. There are no
plans to change any of those Empowered Community powers other than in the broader scope of carving out individual application decisions from ICANN's Reconsideration or Independent Review processes. To the extent that there are items represented in ICANN's
budget or operating plans that relate to grant making activities, the Empowered Community powers would be applicable. If there are separate budgets or plans that are appropriate to maintain for ICANN's separate grant-making mechanism work, the details of
how that interacts with the Bylaws-mandated budgets and plans will need to be addressed during implementation.</span></i></b><i><span style="mso-fareast-language:EN-GB"><o:p></o:p></span></i></li></ul>
<p class="MsoNormal"><span lang="EN-US" style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-size:11.0pt">Kind regards,<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-size:11.0pt">Emily<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span lang="EN-US" style="font-size:10.0pt;font-family:"Arial",sans-serif;mso-fareast-language:EN-GB">Emily Barabas<b><o:p></o:p></b></span></p>
<p class="MsoNormal" style="text-autospace:none"><span lang="EN-US" style="font-size:10.0pt;font-family:"Arial",sans-serif;mso-fareast-language:EN-GB">Policy Manager, GNSO Policy Development Support<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-size:10.0pt;font-family:"Arial",sans-serif;mso-fareast-language:EN-GB">Internet Corporation for Assigned Names and Numbers (ICANN)<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span lang="EN-US" style="font-size:10.0pt;font-family:"Arial",sans-serif;mso-fareast-language:EN-GB">Phone: +31 (0)6 84507976<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span lang="EN-US" style="font-size:10.0pt;font-family:"Arial",sans-serif;mso-fareast-language:EN-GB"><a href="http://www.icann.org/"><span style="color:#0563C1;text-decoration:none">www.icann.org</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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