[Federal Register Volume 68, Number 15 (Thursday, January 23, 2003)]
[Rules and Regulations]
[Pages 3192-3193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1487]


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DEPARTMENT OF TRANSPORTATION

Transportation Security Administration

49 CFR Part 1510

[Docket No. TSA-2001-11120]
RIN 2110-AA01


Imposition and Collection of Passenger Civil Aviation Security 
Service Fees

AGENCY: Transportation Security Administration, DOT.

ACTION: Partial waiver of independent audit requirement of final rule.

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SUMMARY: Under specified conditions and until further notice, the 
Transportation Security Administration (TSA) will not enforce certain 
independent audit requirements related to the September 11th Security 
Fee collected by direct air carriers and foreign air carriers. This 
partial waiver is because the audit may not be necessary and may be 
overly burdensome.

DATES: Effective January 23, 2003.

FOR FURTHER INFORMATION CONTACT: For guidance on technical matters 
contact Randall Fiertz, Acting Director of Revenue, (202) 385-1209. For 
guidance on legal or other matters contact Steven Cohen, Office of 
Chief Counsel, (202) 493-1216.

SUPPLEMENTARY INFORMATION: In order to offset the costs of providing 
certain civil aviation security services, TSA imposed a uniform 
security service fee, the September 11th Security Fee (fee), on 
passenger enplanements for certain flights originating at airports in 
the United States. The interim final rule for the fee was published in 
the Federal Register on December 31, 2001, amended on March 28, 2002, 
and codified at 49 CFR part 1510. Section 1510.9 requires direct air 
carriers and

[[Page 3193]]

foreign air carriers to collect and remit the fee. Section 1510.15(b) 
requires carriers that collect the fee from more than 50,000 passengers 
annually to provide for an annual audit of their security service fee 
activities and accounts. Section 1510.15(c) requires that the audit be 
performed by an independent public certified accountant, that the 
auditor express an opinion on the fairness and reasonableness of the 
carrier's procedures for collecting, holding and remitting the fee, and 
that the audit address whether the quarterly reports required in Sec.  
1510.17 fairly represent the net transactions in the carrier's security 
service fee accounts.
    Since issuing the interim final rule, TSA has reviewed several 
comments in the public docket, Docket No. TSA-2001-11120, concerning 
the relative burdens and benefits of independent audits for this fee. 
In light of the high cost of independent audits; the economic condition 
of the aviation industry; the fact that TSA, in conjunction with other 
Federal agencies, is initiating its own reviews of fee payments by 
selected carriers; and TSA's confidence that the aviation industry has 
demonstrated a high level of compliance with 49 CFR part 1510 thus far, 
TSA has determined that it may not be necessary for the carriers to 
expend the resources necessary to provide for independent audits 
regarding the fee.
    By this document, TSA waives enforcement of the requirement in 49 
CFR 1510.15(b) that carriers provide for annual independent audits of 
their September 11th Security Fees. Notwithstanding this suspension of 
the audit requirement, carriers must still comply with the record 
keeping requirements of Sec.  1510.15(a) and fully cooperate with 
Federal oversight efforts conducted pursuant to Sec.  1510.19, which 
authorizes representatives of the Secretary of Transportation, the 
Under Secretary of Transportation for Security, the Inspector General 
of the Department of Transportation, or the Comptroller General of the 
United States to audit or review the carriers' books or records. TSA is 
not waiving or deferring enforcement of any other requirement set forth 
in 49 U.S.C. 44940, 49 CFR part 1510, or the audit requirement 
pertaining to the Aviation Security Infrastructure Fee imposed on 
carriers in 49 CFR part 1511.
    Upon conducting its own reviews of fee payments by carriers 
(including those conducted by or jointly with other Federal agencies), 
TSA will determine whether to eliminate the independent audit 
requirement or to rescind this waiver and reinstate the independent 
audit requirement. If TSA decides to eliminate the requirement, an 
amendment to 49 CFR part 1510 will be published in the Federal 
Register. If TSA decides to rescind the waiver a document will be 
published in the Federal Register at least 90 days in advance of its 
effectiveness.

    Issued in Washington, DC, on January 14, 2003.
James M. Loy,
Under Secretary of Transportation for Security.
[FR Doc. 03-1487 Filed 1-22-03; 8:45 am]
BILLING CODE 4910-62-P