Security Screening Services Commercialization Act — S-7.2 26
Charging principles 26 (1) The designated screening authority must observe the following principles when it establishes, revises or terminates charges: (a) that charges must not be set at levels that, based on reasonable and prudent projections, would generate revenues exceeding the designated screening authority’s current and future financial requirements related to security screening services made available or provided under section 18 at aerodromes designated by the regulations; (b) that charges must be established, revised or terminated in accordance with an explicit methodology — that includes any conditions affecting the charges — that the designated screening authority has established and published; (c) that, unless authorized by the Minister, charges imposed under paragraph 24 (1)(a) must be the same in respect of all passengers, except that the designated screening authority may impose different charges based on whether passengers are travelling from an aerodrome within Canada to an aerodrome within Canada, from an aerodrome within Canada to an aerodrome within the United States or from an aerodrome within Canada to an aerodrome outside of Canada, other than an aerodrome in the United States; (d) that charges may be used only to recover costs for security screening services made available or provided under section 18 at aerodromes designated by the regulations; (e) that charges must be structured in a way that does not differentiate between Canadian air carriers and foreign air carriers, among Canadian air carriers or among foreign air carriers; (f) that charges must be consistent with Canada’s international obligations in respect of aeronautics; (g) that charges should be structured in a way that prioritizes aviation security and the competitiveness of the air transportation system. Financial requirements (2) For the purposes of paragraph (1)(a), financial requirements include the following: (a) operations and maintenance costs; (b) management and administration costs; (c) debt servicing requirements and financial requirements arising out of contractual agreements relating to the borrowing of money; (d) capital costs and depreciation costs on capital assets; (e) financial requirements necessary for the designated screening authority to maintain an appropriate credit rating; (f) tax liability; (g) reasonable reserves for future expenditures and contingencies; (h) other costs determined in accordance with accounting principles recommended by the Chartered Professional Accountants of Canada or its successor or assign. Deduction (3) For the purposes of paragraph (1)(a), an amount equal to the aggregate of the following amounts is to be deducted from the designated screening authority’s financial requirements: (a) all grants and contributions received by the designated screening authority; (b) all transition period payments referred to in section 59 received by the designated screening authority; (c) all interest and investment income earned by the designated screening authority; (d) all profits earned by the designated screening authority, other than in respect of security screening services made available or provided under section 18 at aerodromes designated by the regulations. Methodology (4) The methodology referred to in paragraph (1)(b) must include (a) the amount of each charge; (b) the circumstances in which each charge applies; and (c) the formula or other method used to determine the amount of each charge.