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Wednesday,

February 20, 2002

Part IV

Department of Transportation Transportation Security Administration

49 CFR Part 1511

Aviation Security Infrastructure Fees and Assumption of Civil Aviation Security Functions and Responsibilities; Interim Final Rule and Notice

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7926 Federal Register / Vol. 67, No. 34 / Wednesday, February 20, 2002/ Rules and Regulations

DEPARTMENT OF TRANSPORTATION

Transportation Security Administration

49 CFR Part 1511

[Docket No. TSA–2002–11334]

RIN 2110–AA02

Aviation Security Infrastructure FeesAGENCY: Transportation SecurityAdministration, DOT.ACTION: Interim final rule.

SUMMARY: The Transportation SecurityAdministration (TSA) announces a feethat will be imposed on air carriers andforeign air carriers engaged in airtransportation, foreign airtransportation, and intrastate airtransportation effective February 18,2002. For purposes of this rule, the feeis described as the Aviation SecurityInfrastructure Fee. The Aviation

Security Infrastructure Fee is imposedpursuant to the provisions of theAviation and Transportation SecurityAct and is in addition to the September11th Security Fee imposed onpassengers pursuant to an interim finalrule published in the Federal Registeron December 31, 2001. The AviationSecurity Infrastructure Fee is necessaryto help defray TSA’s costs of providingU.S. civil aviation security services. Inorder to assist TSA in determining thestatutory cap for these fees, each aircarrier and foreign air carrier who paidfor passenger and property screening incalendar year 2000 must completeAppendix A to this part and submit itto TSA by May 18, 2002. The AviationSecurity Infrastructure Fee imposed oneach air carrier and foreign air carrierwill be based on the information thecarrier provides in Appendix A. The feeimposed on each air carrier and foreignair carrier for the period running fromFebruary 18 through April 30, 2002,must be remitted to TSA by May 31,2002. Thereafter, payment must beremitted to TSA by the last calendar dayof each month.DATES: This interim final rule iseffective on February 18, 2002.

Although the imposition of the AviationSecurity Infrastructure Fee is statutorilyexempted from the rulemaking noticeand comment procedures set forth in theAdministrative Procedure Act, 5 U.S.C.553, comments received on or beforeMarch 18, 2002 will be reviewed andconsidered.

ADDRESSES: Submit written, signedcomments to TSA Docket No. 2002–11334 , the Docket Clerk, U.S. DOTDockets, Room PL–401, 400 SeventhStreet, SW., Washington, DC 20590–

0001. All comments received will beavailable for examination at the aboveaddress between 9 a.m. and 5 p.m., e.t.,Monday through Friday, except Federalholidays. Those desiring notification of receipt of comments must include a self-addressed, stamped envelope orpostcard on which the followingstatement is made: ‘‘Comments to

Docket No. TSA–2002–11334.’’ The postcard will be date stamped and mailed tothe sender. Comments also may be sentelectronically to the DocketsManagement System (DMS) at: http:// dms.dot.gov at any time. Those whowish to file comments electronicallyshould follow the instructions on theDMS web site.

Public Meeting: TSA is consideringthe possibility of holding a publicmeeting on this matter and, if so, willissue a separate document in theFederal Register to inform the public asto the exact date and location of such ameeting.

FOR FURTHER INFORMATION CONTACT: Forguidance involving technical matters:Randall Fiertz, Deputy Director, Costand Performance Management, FederalAviation Administration, c/oDepartment of Transportation (DOT),Office of the Secretary, Office of theAssistant Secretary for Budget andPrograms, 400 Seventh St., SW., Room10101, Washington, DC 20590;telephone (202) 366–9192. For othermatters: Rita M. Maristch, Departmentof Transportation, Office of the General

Counsel, Office of Environmental, CivilRights and General Law, 400 SeventhSt., SW., Room 10102, Washington, DC20590; telephone (202) 366–9161. Officehours are from 9:00 a.m. to 5:30 p.m.,e.t. Monday through Friday, exceptFederal holidays.

SUPPLEMENTARY INFORMATION:

Availability of the Interim Final Ruleand Comments Received

An electronic copy of this documentmay be downloaded using a modem andsuitable communications software fromthe Government Printing Office’s

Electronic Bulletin Boards Service at(202) 512–1661. Internet users mayreach the Federal Register’s home pageat: http://www.nara.gov/fedreg and theGovernment Printing Office’s databaseat: http://www.access.gpo.gov.

Internet users can access thisdocument and all comments received byTSA through DOT’s docket managementsystem web site, http://dms.dot.gov. It isavailable 24 hours each day, 365 dayseach year. Please follow the instructionsonline for more information and help.

Small Entity Inquiries

The Small Business RegulatoryEnforcement Fairness Act (SBREFA) of 1996 requires TSA to comply with smallentity requests for information andadvice about compliance with statutesand regulations within TSA’sjurisdiction. However, because TSA wasjust established on November 19, 2001,pursuant to Aviation and TransportationSecurity Act, Pub. L. 107–71, it does notyet have the infrastructure or personnelto provide such information andguidance. Until such time that it does,the Office of the Secretary of Transportation will handle all SBREFAinquiries. Accordingly, any small entitythat has a question regarding thisdocument may contact the individualslisted under the caption FOR FURTHER

INFORMATION CONTACT.

Background

The September 11 Terrorist Attacks and

the Aviation and TransportationSecurity Act

The September 11, 2001 terroristattacks and the potential for futureattacks led Congress to enact theAviation and Transportation SecurityAct, Pub. L. 107–71 (ATSA), November19, 2001, which established TSA as anadministration within DOT. TSA isheaded by the Under Secretary of Transportation for Security (UnderSecretary).

Section 118 of ATSA added § 44940to Title 49, U.S.C. Section 44940requires that within 60 days of ATSA’s

enactment, or as soon as possiblethereafter, (1) TSA impose securityservice fees on passengers of air carriersand foreign air carriers in airtransportation, foreign airtransportation, and intrastate airtransportation (air transportation) whoare enplaning aircraft on flightsoriginating at airports in the UnitedStates; and (2) to the extent thepassenger fees are insufficient to coverTSA’s costs of providing civil aviationsecurity services, TSA may imposeadditional fees on air carriers andforeign air carriers in air transportation.

The fees are to help pay the costs of providing U.S. civil aviation securityservices, which are described in§ 44940(a)(1) as:

(1) The salary, benefits, overtime,retirement and other costs of screeningpersonnel, their supervisors andmanagers, and Federal law enforcementpersonnel deployed at airport securityscreening locations;

(2) The costs of training suchpersonnel and the acquisition,operation, and maintenance of equipment used by these personnel;




7927Federal Register / Vol. 67, No. 34 / Wednesday, February 20, 2002/ Rules and Regulations

(3) The costs of performing background investigations of personnel;

(4) The costs of the Federal airmarshals program;

(5) The costs of performing civilaviation security research anddevelopment under Title 49, U.S.C.;

(6) The costs of Federal SecurityDirectors; and

(7) The costs of deploying Federal lawenforcement personnel.According to § 44940(a)(1), the Under

Secretary must determine the amount of the costs of providing these civilaviation security services. Hisdetermination is conclusive and notsubject to judicial review.

Section 44940(c) provides that thesecurity service fee imposed onpassengers may not exceed $2.50 perenplanement or $5.00 per one-way trip.On December 31, 2001, TSA publishedan interim final rule ‘‘Imposition andCollection of Passenger Civil AviationSecurity Service Fees’’ (September 11th

Security Fees) in the Federal Register.66 FR 67698. This IFR imposed aSeptember 11th Security Fee in theamount of $2.50 on certain passengersenplaning aircraft in air transportation.Passengers may not be charged for morethan two enplanements per one-way tripor more than four enplanements perround trip. Pursuant to 49 CFR 1510,direct air carriers and foreign air carrierswere required to begin collecting theSeptember 11th Security Fee onFebruary 1, 2002.

The September 11th Security Fee isset at the maximum amount permitted

by ATSA because the costs of providingcivil aviation security services, asdetermined by the Under Secretary, aregreater than the amount that would berecovered by the collection of fees atthat level. Based on collections

beginning on February 1, 2002, theSeptember 11th Security Fees collectedat the statutory maximum would yieldless than $1 billion in fiscal year 2002.The yield would be slightly more infuture fiscal years, but will still beinsufficient to cover TSA’s costs inproviding security services identified in49 U.S.C. 44940.

Section 44940(a)(2)(A) expresslystates that if revenues from theSeptember 11th Security Fee areexpected to fall short of the amountrequired to cover civil aviation securityservice costs, TSA may impose a fee onair carriers and foreign air carriers in airtransportation to cover that shortfall.Pursuant to the terms of ATSA, theamount of that fee collected each fiscalyear by TSA may not exceed theaggregate amount air carriers andforeign air carriers paid for screeningpassengers and property in calendar

year 2000, as determined by the UnderSecretary. For fiscal years 2002 through2004, the fee imposed on each air carrierand foreign air carrier is limited to theamount that carrier paid for screeningpassengers and property in calendaryear 2000, as determined by the UnderSecretary. In addition, the fee collectedin fiscal year 2002 may not exceed the

amount each carrier paid for screeningpassengers and property for the periodof time in calendar year 2000proportionate to the period of time infiscal year 2002 during which the feesare collected. Beginning in fiscal year2005, the Under Secretary maydetermine the per-carrier limitation onthe basis of market share or any otherappropriate measurement, rather thanon the carrier’s actual screening costs incalendar year 2000.

ATSA requires that the air carrier feeis to be imposed through publication of a notice in the Federal Register.

However, the statute exempts theimposition of these fees from theprocedural rulemaking requirements of 5 U.S.C. 553 and the user feerequirements of 31 U.S.C. 9701.

Section 44940(e)(4) permits the UnderSecretary to require an air carrier orforeign air carrier to provide anyinformation necessary to verify that theamount of the fee imposed on the carrieris correct and that the fees are remittedin accordance with law and regulation.According to § 44940(e)(5), the aircarrier fee is not considered to be partof the amount paid for taxable

transportation under 26 U.S.C. 4261. Inaddition, § 44940(e)(6) prohibits an aircarrier and foreign air carrier fromretaining any portion of the fee to coverthe carrier’s costs of remitting the fee.

The Interim Final Rule

Effective February 18, 2001, theUnder Secretary is imposing a fee on aircarriers and foreign air carriers engagedin air transportation to pay for the costsof providing U.S. civil aviation securityservice. For purposes of this rule, the feewill be described as the AviationSecurity Infrastructure Fee. Theapplicability of this part is currentlylimited to air carriers and foreign aircarriers operating passenger aircraft inair transportation. In accordance with49 U.S.C. 44901(f), TSA is currentlyconsidering the screening systemnecessary to ensure the security of cargothat is transported by all-cargo aircraftin air transportation.

Section 1511.3 provides definitionsfor various terms used in this part. If aterm is not specifically defined in thissection, the definitions provided in 49U.S.C. 40102 apply. TSA anticipates

issuing additional general definitions,which will provide further guidance.

According to § 1511.5 of this part,TSA may not collect Aviation SecurityInfrastructure Fees in an amount thatwould exceed the aggregate amount aircarriers and foreign air carriers paid forscreening passengers and property incalendar year 2000, as determined by

the Under Secretary. For fiscal years2002 through 2004, this limitation isconstrained by a ‘‘per-carrier’’limitation. More specifically, TSA maynot collect Aviation SecurityInfrastructure Fees from an air carrier orforeign air carrier in an amount thatexceeds the amount that carrier paid forscreening passengers and property incalendar year 2000, as determined bythe Under Secretary. For fiscal years2005 and beyond, the Under Secretarywill redetermine the ‘‘per-carrier’’limitation and such redeterminationsmay be based on the carrier’s respective

market share or any other appropriatemeasure in lieu of its actual screeningcosts in calendar year 2000. Because the‘‘per-carrier’’ limit through fiscal year2004 must be based on each carrier’sscreening costs in 2000, air carriers andforeign air carriers that were notengaged in air transportation as definedin this part in calendar year 2000 willnot be subject to the imposition of theAviation Security Infrastructure Feeuntil 2005.

Accordingly, TSA must determine theaggregate amount carriers paid forpassenger and property screening incalendar year 2000 and the amount each

individual carrier paid for screeningduring that same year. Therefore, all aircarriers and foreign air carriers engagedin air transportation in 2000 must fullycomplete the form set forth in AppendixA to this part, ‘‘Calendar Year 2000Costs for Passenger and PropertyScreening’’ and submit the form to TSApursuant to the instructions providedtherein by May 18, 2002. In the case of a merger, acquisition, corporaterestructuring, reorganization, or namechange involving an air carrier orforeign air carrier that paid for thescreening of passengers and property

transported by passenger aircraft in theUnited States during calendar year2000, the successor entity must includethose costs on Appendix A of this partand submit those costs together with itsown costs to TSA on one form by May18, 2002. Any other air carrier or foreignair carrier that is no longer providing airtransportation, but was doing so incalendar year 2000, must also completethe form set forth in Appendix A andsubmit the form to TSA by May 18,2002. Broad applicability of thisrequirement is necessary because the





aggregate amount paid by air carriersand foreign air carriers for screeningpassengers and property in calendaryear 2000 will serve as the ‘‘overalllimit’’ on the collection of AviationSecurity Infrastructure Fees. This isparticularly relevant to fiscal years 2005and beyond since the ‘‘per-carrier’’limitation will no longer be tied to an

individual carrier’s screening costs in2000, and the costs of providing civilaviation security services will greatlyexceed the revenues from fees collectedpursuant to this part and part 1510.Information submitted in Appendix Awill be used to assist the UnderSecretary in determining the amount of Aviation Security Infrastructure Fee to

be imposed on each carrier.We specifically invite comments with

respect to Appendix A. Other thancomments placed in the public docket,information submitted pursuant to 49U.S.C. 44940(a)(2)(B) or this part,

including that contained in AppendixA, will be deemed Sensitive SecurityInformation and subject to the non-disclosure requirements of 49 U.S.C.40119(b). In addition, confidential

business information provided inAppendix A will be protected frompublic disclosure, as appropriate, under5 U.S.C. 552, 18 U.S.C. 1905, and 14CFR 302.12. Requests for confidentialityfor purposes of confidential businessinformation must be filed with theOffice of the General Counsel (C–10),Department of Transportation, at theaddress indicated in Appendix A.

Section 1511.7 of the interim final

rule mandates that by May 31, 2002,each air carrier and foreign air carrierengaged in air transportation remit toTSA 3.273 percent of the total amountthe carrier has indicated in Appendix Aof this part, or an amount as otherwisedetermined by the Under Secretary.Payment in this amount will representthe Aviation Security Infrastructure Feedue for the period running fromFebruary 18 through February 28, 2002.Also by May 31, 2002, these air carriersand foreign air carriers must remit16.666 percent of the total amount thecarrier has indicated in Appendix A, or

an amount as otherwise determined bythe Under Secretary. Payment in thisamount will represent the AviationSecurity Infrastructure Fee due for theperiod running March 1 through April30, 2002. By the last calendar day of each month following May 2002through September 2004, each aircarrier and foreign air carrier must remitto TSA 8.333 percent of the totalamount the carrier has indicated inAppendix A, or an amount as otherwisedetermined by the Under Secretary. Bythe last calendar day of each month

following September 2004, each aircarrier and foreign air carrier must remitto TSA 8.333 percent of the totalamount as determined by the UnderSecretary.

Aviation Security Infrastructure Feesare payable to the ‘‘TransportationSecurity Administration’’ in U.S.currency and must be drawn on a U.S.

bank. A monthly payment totaling$1,000 or more must be remitted byelectronic funds transfer. Although TSAstrongly encourages that payment lessthan $1,000 also be remitted byelectronic funds transfer, such paymentmay be remitted by check, money order,wire transfer or draft. Carriers will beresponsible for paying any bankprocessing charges on fees remittedpursuant to this part when such chargesare assessed on the U.S. government.Specific instructions concerningremittance will be provided directly toair carriers and foreign air carriers and

will be posted on the DOT web site atwww.dot.gov in the near future.

Section 1511.9 of this interim finalrule requires an air carrier or foreign aircarrier to retain any and all documents,records, or information related to theamount of the Aviation SecurityInfrastructure Fees imposed on thatcarrier, including all informationapplicable to the costs submitted inAppendix A, and information that isreasonably necessary to complete anaudit. No later than July 1, 2002, eachair carrier and foreign air carrier mustsubmit to TSA an audit performed by an

independent certified public accountantof the information the carrier providedpursuant to this part. The accountantmust express an opinion as to thefairness and reasonableness of the aircarrier’s or foreign air carrier’sprocedures for accounting for andremitting the fees. The accountant’sworking papers with respect to the auditmust be included with this submission.Specific instructions concerning thesubmission of the audit and workingpapers will be provided directly to theair carriers and foreign air carriers andwill be posted on the DOT web site atwww.dot.gov in the near future.

This rule requires air carriers andforeign air carriers to allow certainauthorized Federal representatives toreview and audit any of the carrier’s

books and records and to provide otherinformation necessary to verify thatsubmissions pursuant to 49 U.S.C.44940(a)(2)(B) and this part, includingthat contained in Appendix A, are trueand correct and that the aviationsecurity infrastructure fees wereremitted consistent with law andregulation.

The rule’s enforcement provisionstates that in addition to any otherremedies allowed by law, falsification

by any party, directly or indirectly, of information provided by an air carrier orforeign air carrier pursuant to this part,including information submitted inAppendix A, may be prosecutedcriminally resulting in a fine and/or

imprisonment under 18 U.S.C 1001. Anair carrier’s or foreign air carrier’sfailure to comply with the requirements49 U.S.C. 44940 or the provisions of thispart may result in a claim due theUnited States by the carrier, which shall

be collectable pursuant to FederalClaims Collection Act andimplementing DOT regulations at 49CFR part 89.

Good Cause for Immediate Adoption

Section 44940(d)(1) of title 49, U.S.C.,explicitly exempts the imposition of thecivil aviation security service feesauthorized in § 44940 from theprocedural rulemaking notice andcomment procedures set forth in 5U.S.C. 553. In addition, it would beimpractical and contrary to the publicinterest to provide for notice and anopportunity for comment before issuingthis rule. Immediate action is expresslycontemplated by ATSA and necessary to

begin collecting the security service feesprovided for by the statute. However,TSA will consider all commentsreceived on or before the closing datefor comment, including commentsreceived before the issuance of this rule.We will also consider comments filed

late to the extent practicable. We mayamend this rule in light of thecomments we receive.

Paperwork Reduction Act

TSA has determined that this interimfinal rule will impose new collection of information burdens within themeaning of the Paperwork ReductionAct of 1995 (Pub. L. 104–13, 44 U.S.C.chapter 35) (PRA). TSA is required tosubmit this proposed collection of information to the Office of Management and Budget (OMB) forreview and approval and, accordingly,

seeks public comments. Pursuant to 5CFR 1320.13, Emergency processing,TSA has asked OMB for temporaryemergency approval for this collection.Interested parties are invited to sendcomments regarding any aspect of theinformation collection requirements,including: (1) Whether the collection of information is necessary for TSA’sperformance of its statutory duties,including whether the information haspractical utility; (2) the accuracy of theestimated burden provided to OMB; (3)ways to enhance the quality, utility, and





clarity of the collection of information,and (4) ways to minimize the collection

burden without reducing the quality of the information collected. For furtherinformation or to comment you maycontact: The Office of Information andRegulatory Affairs, Office of Management and Budget, 725–17thStreet, NW., Washington, DC 20503,

Attention Desk Officer for theTransportation Security Administration.You may also contact Rita Maristch atthe address listed under FOR FURTHER

INFORMATION CONTACT or Steven Cohen,Office of the General Counsel (C–10), at(202) 366–4684.

Summary: The TSA has submitted arequest for emergency processing of apublic information collection to OMBfor review and clearance of the reportingand recordkeeping requirementsassociated with this interim final rule inaccordance with PRA. The InformationCollection Request (ICR) abstracted

below has been forwarded to OMB forreview and comment. The ICR describesthe nature of the information collectionsand their expected burden.

Type of Request: New.Abstract: For purposes of collecting

information necessary to establish theAviation Security Infrastructure Fee,which will help pay for the costs of providing civil aviation securityservices as described in 49 U.S.C. 44940that are not otherwise covered by thecollection of the September 11thSecurity Fee (66 FR 67698, December31, 2001), air carriers and foreign aircarriers will be required to provide

information regarding their costs forscreening passengers and property incalendar year 2000 and provide for anindependent audit of this information toestablish and administer this fee.

Form Number: An application for acontrol number for the form has beensubmitted to OMB.

Affected Public: The informationcollection requirement applies to aircarriers or foreign air carriers providingair transportation, foreign airtransportation, and intrastate airtransportation.

Number of Respondents: This

information request will apply toapproximately 195 air carriers andforeign air carriers.

Frequency: This is a one-timecollection.

Estimated Annual Burden: Using theabove estimate of 195 carriers who willhave to respond, with an estimate of 40hours of preparation to collect andprovide information regarding securitycosts for screening passengers andproperty in calendar year 2000, at anassumed rate of $50 an hour, theestimated cost of collecting and

preparing the information necessary for195 respondents is $390,000. Inaddition, the cost of preparing andsubmitting 195 independent audits of this information, with an estimate of 120 hours of time to conduct each audit,at an assumed rate of $150 per hour, is$3,510,000. Adding in a postage cost of $218.40 (195 responses at a cost of $1.12

to mail each one), we estimate that itwill cost $3,900,218.40 for the affectedair carriers and foreign air carriers toprepare, audit, and submit theinformation necessary to satisfy theinformation collection requirement.

Economic Analyses

This rulemaking has been reviewedunder the provisions of § 6(a)(3)(D) of Executive Order 12866, RegulatoryPlanning and Review, as well as underDOT’s regulatory policies andprocedures because it may imposesignificant costs on air carriers and

foreign air carriers. An assessment inaccordance with the Executive Orderwill be conducted in the future. Noadditional regulatory analysis orevaluation accompanies this rule. TSAhas not assessed whether this rule willhave a significant economic impact ona substantial number of small entities asdefined in the Regulatory Flexibility Actof 1980. When no notice of proposedrulemaking has first been published, theRegulatory Flexibility Act does notapply.

Executive Order 13132, Federalism

The TSA has analyzed this rule underthe principles and criteria of ExecutiveOrder 13132, Federalism. Wedetermined that this action will nothave a substantial direct effect on theStates, or the relationship between thenational Government and the States, oron the distribution of power andresponsibilities among the variouslevels of government. Therefore, wehave determined that this final rule doesnot have federalism implications.

Unfunded Mandates Reform Act

The Unfunded Mandates Reform Act

of 1995 (the Act), enacted as Pub. L.104–4 on March 22, 1995, is intended,among other things, to curb the practiceof imposing unfunded Federal mandateson State, local, and tribal governments.Title II of the Act requires each Federalagency to prepare a written statementassessing the effects of any Federalmandate in a proposed or final agencyrule that may result in a $100 million ormore expenditure (adjusted annually forinflation) in any one year by State, local,and tribal governments, in the aggregate,or by the private sector.

The requirements of Title II of theUnfunded Mandates Reform Act of 1995do not apply when rulemaking actionsare taken without the issuance of anotice of proposed rulemaking.Accordingly, the TSA has not prepareda statement under the Act.

Environmental Review

TSA has reviewed this action forpurposes of the National EnvironmentalPolicy Act of 1969 (42 U.S.C. 4321–4347) and has determined that thisaction will not have a significant effecton the human environment.

Energy Impact

The energy impact of this rule has been assessed in accordance with theEnergy Policy and Conservation Act(EPCA) Pub. L. 94–163, as amended. (42U.S.C. 6362). It has been determinedthat this rule is not a major regulatoryaction under the provisions of the

EPCA.List of Subjects in 49 CFR Part 1511

Accounting, Auditing, Air carriers,Air transportation, Enforcement, Federaloversight, Fees, Foreign air carriers,Recordkeeping and reportingrequirements, Security measures.

Issued in Washington, DC, on February 14,2002.

John W. Magaw,

Under Secretary of Transportation for Security.

For the reasons set forth in thepreamble, the Transportation Security

Administration adds a new part 1511 inTitle 49 in Chapter XII, Subchapter A,of the Code of Federal Regulations toread as follows:

PART 1511 —AVIATION SECURITYINFRASTRUCTURE FEE

Sec.1511.1 Applicability and purpose.1511.3 Definitions.1511.5 Imposition of Aviation Security

Infrastructure Fees.1511.7 Remittance of Aviation Security

Infrastructure Fees.1511.9 Accounting and auditing

requirements.1511.11 Federal oversight.1511.13 Enforcement.

Appendix A to Part 1511—Aviation SecurityInfrastructure Fee.

Authority: 49 U.S.C. 44901 and 44940.

§ 1511.1 Applicability and purpose.

(a) This part prescribes the impositionof a fee on air carriers and foreign aircarriers in air transportation to pay forthe costs of providing U.S. civil aviationsecurity services as described in 49U.S.C. 44940.





(b) For purposes of this part, the feewill be described as the ‘‘AviationSecurity Infrastructure Fee.’’

§ 1511.3 Definitions.

The following definitions apply forpurposes of this part. For otherdefinitions that may be applicable tothis part refer to 49 U.S.C. 40102.

Air transportation means the carriage by passenger aircraft of persons orproperty for compensation or hire inintrastate air transportation, interstateair transportation, or foreign airtransportation.

Aircraft means a device that is usedor intended to be used for flight in theair.

Fiscal year means the fiscal year forthe Federal government, which beginseach year October 1 and ends onSeptember 30. The fiscal year isdesignated by the calendar year inwhich it ends, e.g., fiscal year 2002 is

the year beginning October 1, 2001, andending September 30, 2002.Foreign air transportation means air

transportation between a place in theUnited States and any place outside of the United States.

Interstate air transportation means airtransportation within the United States.

Intrastate air transportation means airtransportation wholly within the sameState of the United States.

Passenger aircraft means an aircraftthat is used to transport passengers inair transportation.

Property means mail, cargo, carry-onand checked baggage, and any other

articles transported by passenger aircraftoperated by an air carrier or foreign aircarrier in air transportation, butexcluding property transported underthe ‘‘Known Shipper Program.’’

Under Secretary means the UnderSecretary of Transportation for Securityor the Under Secretary’s designee.

§ 1511.5 Imposition of Aviation SecurityInfrastructure Fees.

(a) Effective February 18, 2002, anAviation Security Infrastructure Fee will

be imposed on air carriers and foreignair carriers engaged in air

transportation.(b) The amount of the AviationSecurity Infrastructure Fee for eachfiscal year will not exceed, in theaggregate, the amounts paid in calendaryear 2000 by air carriers and foreign aircarriers for the screening of passengersand property transported by passengeraircraft in the United States, asdetermined by the Under Secretary.

(c) For fiscal years 2002, 2003 and2004, the amount of the AviationSecurity Infrastructure Fee imposed oneach air carrier and foreign air carrier

will not exceed the amount each suchcarrier paid for the screening of passengers and property transported bypassenger aircraft in the United Statesduring calendar year 2000, asdetermined by the Under Secretary.

(d) Each air carrier and foreign aircarrier that paid for the screening of passengers and property in calendar

year 2000 must fully complete the formset forth in Appendix A to this parttitled, ‘‘Calendar Year 2000 Costs Paidfor Passenger and Property Screening,’’and submit the completed form to theTransportation Security Administration

by May 18, 2002.(e) In the case of a merger, acquisition,

corporate restructuring, reorganization,or name change involving an air carrieror foreign air carrier that paid for thescreening of passengers and propertytransported by passenger aircraft in theUnited States during calendar year2000, the successor entity must include

those screening costs in Appendix A of this part and submit those costs togetherwith its own costs on one form inaccordance with paragraph (d) of thissection. Any other air carrier or foreignair carrier that paid for the screening of passengers and property transported bypassenger aircraft in the United Statesduring calendar year 2000 but is nolonger providing air transportation mustalso complete the form set forth inAppendix A and submit the form inaccordance with paragraph (d) of thissection.

(f) The Under Secretary has

determined that the informationsubmitted pursuant to this part and 49U.S.C. 44940(a)(2)(B) is SensitiveSecurity Information and is subject tothe non-disclosure requirements of 49U.S.C. 40119(b).

(g) The amount of the AviationSecurity Infrastructure Fee imposed oneach air carrier and foreign air carrierwill be redetermined for fiscal years2005 and beyond, and suchredeterminations may be based on thecarrier’s respective market share or anyother appropriate measure in lieu of themeasure provided in paragraph (c) of

this section.§ 1511.7 Remittance of Aviation SecurityInfrastructure Fees.

(a) No later than May 31, 2002, eachair carrier and foreign air carrierengaged in air transportation must remitto TSA.

(1) 3.273 percent of the total amountthe carrier has indicated in Appendix Aof this part, or an amount as otherwisedetermined by the Under Secretary,which will represent the AviationSecurity Infrastructure Fee due for the

period running from February 18through February 28, 2002; and,

(2) 16.666 percent of the total amountthe carrier has indicated in Appendix Aof this part, or an amount as otherwisedetermined by the Under Secretary,which will represent the AviationSecurity Infrastructure Fee due forperiod running from March 1 through

April 30, 2002.(b) Each air carrier and foreign air

carrier engaged in air transportationmust remit to TSA 8.333 percent of thetotal amount the carrier has indicated inAppendix A of this part, or an amountas otherwise determined by the UnderSecretary, by the last calendar day of each month following May 2002 up toand including September 2004.

(a) Each air carrier and foreign aircarrier engaged in air transportationmust remit to TSA 8.333 percent of thetotal amount as determined by theUnder Secretary pursuant to section

1511.5(g) of this part by the lastcalendar day of each month followingSeptember 2004.

(b) Aviation Security InfrastructureFees must be payable to the‘‘Transportation SecurityAdministration’’ in U.S. currency anddrawn on a U.S. bank.

(1) Aviation Security InfrastructureFees of $1,000 or more must be remitted

by electronic funds transfer.(2) Aviation Security Infrastructure

Fees under $1,000 may be remitted byelectronic funds transfer, check, moneyorder, wire transfer, or draft.

(a) Air carriers and foreign air carriers

are responsible for paying any bankprocessing charges on Aviation SecurityInfrastructure Fees remitted under thispart when such charges are assessed onthe U.S. government.

§ 1511.9 Accounting and auditingrequirements.

(a) Each air carrier and foreign aircarrier must submit an audit performed

by an independent certified publicaccountant of the information providedpursuant to this part to theTransportation Security Administration

by July 1, 2002. The cost of the audit

will be borne by the carrier. Theaccountant must express an opinion asto the fairness and reasonableness of theair carrier’s and foreign air carrier’sprocedures used for accounting andremitting the fees. The accountant’sworking papers with respect to the auditmust accompany this submission.

(b) Each air carrier and foreign aircarrier must maintain and retain anyand all documents, records, orinformation related to the amount of theAviation Security Infrastructure Feesimposed on the carrier pursuant to this





part, including all informationapplicable to the costs submitted inAppendix A, and information that isreasonably necessary to complete anaudit.

§ 1511.11 Federal oversight.

(a) Upon request, air carriers andforeign air carriers must allow any

authorized representative of theSecretary of Transportation, the UnderSecretary of Transportation for Security,the Inspector General of the Departmentof Transportation, or the ComptrollerGeneral of the United States to audit orreview any of the books and records andprovide any other information necessaryto verify that:

(1) The information submittedpursuant to 49 U.S.C. 44940(a)(2)(B) andthis part, including that provided inAppendix A, is true and correct; or

(2) The Aviation SecurityInfrastructure Fees were remitted

consistent with this part.§ 1511.13 Enforcement.

(a) In addition to any other remediesallowed by law, willful falsification byany party, directly or indirectly, of information provided by an air carrier orforeign air carrier pursuant to this part,including information submitted inAppendix A as required by section1511.5 of this part, may be prosecutedcriminally resulting in a fine and/orimprisonment under 18 U.S.C 1001.

(b) An air carrier’s or foreign aircarrier’s failure to comply with therequirements of 49 U.S.C. 44940 or theprovisions of this part may result in aclaim due the United States by thecarrier, which claim shall be collectablepursuant to 31 U.S.C. Chapter 37 andthe Department of Transportation’simplementing regulations at 49 CFR part89.

Appendix A to Part 1511—AviationSecurity Infrastructure Fee

Instructions

General guidance

When filling out this form, the respondingair carrier or foreign air carrier shall includeall costs incurred in calendar year 2000 bythat air carrier for the screening of passengersand property. Costs are those attributed to thescreening of passengers and property in theUnited States for both flights within theUnited States and flights from the UnitedStates to foreign destinations. Reported costsmust be consistent with the air carrier’sfinancial accounting information reported inaccordance with generally acceptedaccounting principles.

Where actual costs of screening passengersand property cannot be directly identifiedthrough an air carrier’s accounting system,the air carrier shall use an appropriatealternate cost assignment methodology.Documentation that explains and supportsthe assignment methodology used, theapplicable pool and the allocation basis must

be made available upon request. For costsrelated to capitalized property, please reportthe associated depreciation expense incurredduring calendar year 2000. Capitalizationpolicy must also be made available uponrequest.

To the extent necessary, the reporting aircarrier may aggregate those specific costs thathave been incurred but cannot be stated inthe detailed cost categories requested by thisform. However, all of the costs identified bythis form must be included in the totalcalculations. In addition, explanationsregarding costs that have been aggregatedneed to be provided. Costs reported inAppendix A do not need to include costs thatmay have been incurred for a position higherthan those of the air carrier’s director of

security (or equivalent). Costs incurred forhigher positions, such as those of the aircarrier’s chief executive officer, do not needto be included.

When including cost information onacquired and/or merged air carriers, thesuccessor air carrier must specify the namesof all of such entities whose calendar year

2000 passenger and property screening costsare included in that air carrier’s submissionas Appendix A.

The costs listed below are to be in USdollars, rounded to the nearest dollar. Placea zero in the appropriate box to indicate costcategories in which the air carrier did notincur costs for passenger and propertyscreening in calendar year 2000.

Supporting NotesExamples of cost types that appear in the

supporting notes below are for illustrativepurposes only and are not intended to setforth all relevant costs that must be reported

by air carriers and foreign air carriers. Insubmitting information to TSA, air carriersand foreign air carriers must submit all of their relevant costs, regardless of whetherthose costs have been specifically illustratedin the notes.

Submission of Data

This form will be available electronicallyfrom the Department of Transportation’swebsite at www.dot.gov. Air carriers areasked to return the completed form by

certified mail to: Chief Financial Officer,Transportation Security Administration,Department of Transportation, 400 SeventhStreet SW, Washington, DC 20590. Pleasealso submit the same information inMicrosoft Word either on a computer disk or

by e-mail to [email protected].

Confidentiality of Data

Consistent with 49 CFR § 1511.5(f),information submitted in Appendix A isdeemed to be Sensitive Security Informationand will be so protected from publicdisclosure under 49 U.S.C. 40119(b). Inaddition, confidential business informationand economic information provided inAppendix A will be protected from public

disclosure, as appropriate, under 5 U.S.C.§ 552 (the Freedom of Information Act), 14CFR § 302.12, and 18 U.S.C. § 1905. Requestsfor confidentiality must be filed with theOffice of the General Counsel, Department of Transportation (C–10), 400 Seventh Street,SW, Room 10102, Washington, DC 20590

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Supporting Notes

a. These are costs that the air carrierincurred directly. Includes costs incurred forair carrier personnel salaries and benefits,equipment owned, leased or rented directly

by that air carrier and any other costs directlyincurred.

b. These are costs that the air carrierincurred through contracts with securityfirms. Includes personnel, equipment and

other costs incurred through contracts withthird party security companies.

c. These are costs that the air carrierincurred through other means. Includes costsincurred through air carrier securityconsortiums.

1. Salary, benefits, overtime, retirementand other costs of checkpoint screeningpersonnel.

2. Salary, benefits, overtime, retirementand other costs of exit lane monitors.

3. Salary, benefits, overtime, retirementand other costs of cargo screeners.

4. Salary, benefits, overtime, retirementand other costs of checked baggage screeners.

5. Salary, benefits, overtime, retirementand other costs of all baggage runners who

move property such as baggage to and fromscreening areas.6. Salary, benefits, overtime, retirement

and other costs of all supervisory personnel,including Checkpoint Screening Supervisors.

7. All associated expensed non-labor costsincluding computers, communicationsequipment, time management systems,supplies, parking, identification badging,furniture, fixtures, and travel.

8. All costs of performing required background investigations on all screeningpersonnel and supervisors. Screeningpersonnel and supervisors includescheckpoint screening personnel, exit lanemonitors, cargo screeners, checked baggagescreeners, baggage runners, and theirsupervisors.

9. All costs incurred for the training andtesting of all screening personnel andsupervisors, including initial, recurrent andremedial training. Includes any computer-

based training and the development of training programs for the screening of persons and property as well as any travel,room and board, and all other such expensesrelated to training.

10. The costs of implementing andmaintaining training records for all screeningpersonnel and supervisors.

11. The costs of completing evaluations forall screening personnel and supervisors.

12. All costs for drug and alcohol testingas well as any associated counseling and/ortreatment for all screening personnel and

supervisors.13. All costs of renting, purchasing,

maintaining, and/or cleaning of uniforms and

any related equipment such as flashlightsand batons for all screening personnel andsupervisors.

14. All costs incurred by air carriers for theuse of canines and their handlers used for thescreening of persons and property.

15. All costs associated with obtainingsecurity clearances for personnel relating tothe screening of persons and property.

16. All costs associated with the purchase,

installation, and testing of all screeningequipment. In instances where theequipment is capitalized, provide thedepreciation expense in lieu of costsassociated with purchase, installation, andfinal acceptance testing. This includes suchequipment as Metal Detection Devices, HandWands, X-ray screening machines,Explosives Trace Detection Devices,Explosives Detection Systems, or any othersuch similar technologies. Includes any costsincurred or depreciation costs recognized incalendar year 2000 for the modification and/or construction of any facility needed toaccommodate screening, includingarchitecture and engineering. Also includesthe costs of any refurbishment and/or

modernization of the equipment.17. Costs of operating, maintaining, and

calibrating installed screening equipment.This includes such equipment as MetalDetection Devices, Hand Wands, X-rayscreening machines, Explosives TraceDetection Devices, Explosives DetectionSystems, or any other such similartechnologies. Includes such costs as testobjects and X-ray radiation surveys,electricity costs and maintenance contractcosts incurred for the operations of suchequipment.

18. Costs of maintaining integrity of sterileareas. Includes costs of opening sterile areas,emergency evacuations of sterile areas, andre-screenings not included elsewhere.

19. The cost of purchase or rent,installation, testing, and maintenance of checkpoint signs, barriers, lane markers, andexit lane doors.

20. Any additional costs for specialscreening such as for disabled passengers,VIP passengers, classified and/or high valueitems.

21. All security company contract costs forthe screening of persons and property thatcannot be detailed into any other costcategory.

22. All direct costs for the real estateutilized for the screening of persons andproperty. Includes space at airports for theperformance of these functions, as well assuch space used for break rooms, private

screening rooms, storages space, trainingrooms, and office space. Also includesappropriate space for the oversight of the

screening functions outside of airports suchas in headquarters or regional offices.

23. All costs for utilities used for screening.Includes electricity, heating/ventilation/cooling, and telecommunications costs notelsewhere specified.

24. All costs incurred for the GroundSecurity Coordinator’s oversight of thescreening functions. Includes personnelsalaries, benefits, retirement, training, andnon-labor costs.

25. All air carrier head office, regional, orairport specific costs associated with theadministration and oversight of screening notelsewhere specified. Includes personnelsalaries, benefits, retirement, training, andnon-labor costs.

26. All costs associated with theadministration and oversight of screeningcontracts. Includes personnel, benefits,retirement, training, and non-labor costs.

27. All costs not elsewhere specified for background audit checks for all screeners andsupervisors.

28. All legal support costs incurred duringcalendar year 2000 relating to aviation

security screening. Includes legal assistancefor the implementation and execution of security screening contracts.

29. All costs for accounting and financialservices incurred for the support of thescreening functions.

30. Includes all labor and non-labor costsfor such items as human resourceadministration, clerical assistance,information technology, and other supportfunctions related to screening.

31. All insurance costs relating toscreening. Includes worker’s compensationand general liability insurance.

32. All costs incurred by the air carriers forlaw enforcement personnel costs that werereimbursed by the air carriers for services

performed in connection with the screeningof persons and property.

33. All costs associated with therecruitment of screening personnel andsupervisors. Includes signing bonuses, travel,and other recruitment expenses.

34. Any costs incurred for fees charged byother organizations for the management of contracts for the screening of persons andproperty.

35. Any costs incurred not elsewherespecified during calendar year 2000 for thescreening of passengers and property. Thesecosts should be itemized on a separate sheet.Includes any fines or monetary penaltiesincurred for screening as well as any profit/

bonuses paid to contractors for screeningservices not included elsewhere on the form.

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[FR Doc. 02–4148 Filed 2–15–02; 2:25 pm]

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