**GAO-02-484R**                      Mar 11, 2002                  

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## Highlights

GAO reviewed the Transportation Security Administration's new rule on an air carrier fee for airline security. GAO found that (1) the rule would impose a fee on domestic and foreign air carriers and foreign and intrastate air transportation and (2) DOT complied with applicable requirements in promulgating the rule.

##  Department of Transportation, Transportation Security Administration: Aviation Security Infrastructure Fees, GAO-02-484R, March 11, 2002

B-289994

March 11, 2002

The Honorable Ernest F. Hollings     Chairman     The Honorable John McCain     Ranking Minority Member     Committee on Commerce, Science, and Transportation     United States Senate

The Honorable Don Young     Chairman     The Honorable James L. Oberstar     Ranking Minority Member     Committee on Transportation and Infrastructure     House of Representatives

Subject:Department of Transportation, Transportation Security Administration: Aviation Security Infrastructure Fees

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department    of Transportation (DOT), Transportation Security Administration, entitled "Aviation Security Infrastructure Fees" (RIN: 2110-AA02). We received the rule on February 25, 2002. It was published in    the Federal Register as an interim final rule on February 20, 2002. 67 Fed. Reg. 7926.

The interim final rule announces a fee that will be imposed on air carriers and foreign air carriers engaged in air transportation, foreign air transportation, and intrastate air    transportation. The fee, described as the Aviation Security Infrastructure Fee, is in addition to the September 11th Security Fee imposed on passengers and will help defray the Transportation    Security Administration's costs of providing U.S. civil aviation security services.

Enclosed is our assessment of the DOT's compliance with the procedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Our review    indicates that the DOT complied with the applicable requirements.

If you have any questions about this report, please contact James W. Vickers, Assistant General Counsel, at (202) 512-8210. The official responsible for GAO evaluation work relating    to the subject matter of the rule is John Anderson, Managing Director, Physical Infrastructure. Mr. Anderson can be reached at (202) 512-2834.

signed

Kathleen E. Wannisky     Managing Associate General Counsel

Enclosure

cc: Jennifer Abdul-Wali       Senior Regulations Analyst       Department of Transportation

ENCLOSURE

ANALYSIS UNDER 5 U.S.C.  801(a)(1)(B)(i)-(iv) OF A MAJOR RULE     ISSUED BY THE     DEPARTMENT OF TRANSPORTATION,     TRANSPORTATION SECURITY ADMINISTRATION     ENTITLED     "AVIATION SECURITY INFRASTRUCTURE FEES"     (RIN: 2110-AA02)

(i) Cost-benefit analysis

DOT states that the rulemaking is made under an emergency situation within the meaning of section 6(a)(3)(D) of Executive Order 12866 and therefore no cost-benefit analysis was    prepared. DOT will prepare such an assessment in the future.

(ii) Agency actions relevant to the Regulatory Flexibility Act, 5 U.S.C.  603-605, 607, and 609

Since the interim final rule did not follow the issuance of a Notice of Proposed Rulemaking, the requirements of the Regulatory Flexibility Act are not applicable.

(iii) Agency actions relevant to sections 202-205 of the Unfunded Mandates Reform Act of 1995, 2 U.S.C.  1532-1535

Since the interim final rule did not follow the issuance of a Notice of Proposed Rulemaking, the requirements of the Unfunded Mandates Reform Act of 1995 are not applicable.

(iv) Other relevant information or requirements under acts and executive orders

Administrative Procedure Act, 5 U.S.C.  551 etseq.

Section 118 of the Aviation and Transportation Security Act, 49 U.S.C. 44940(d)(1), exempts the imposition of civil aviation security service fees from the rulemaking requirements    regarding notice and comment found at 5 U.S.C. 553. However, DOT is accepting comments on the interim final rule until March 18, 2002.

Paperwork Reduction Act, 44 U.S.C.  3501-3520

The interim final rule contains an information collection that is subject to review and approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act. DOT    has requested emergency temporary approval of the collection from OMB. The preamble to the interim final rule contains the required information, including the estimated annual burden. DOT    estimates that the one-time collection of information will have 195 respondents with a one-time cost of $3,900,218.40.

Statutory authorization for the rule

The interim final rule is promulgated under the authority contained in section 118 of the Aviation and Transportation Security Act, 49 U.S.C. 44940.

Executive Order No. 12866

The interim final rule was reviewed by OMB and found to be an "economically significant" regulatory action under the order.

Executive Order No. 13132 (Federalism)

DOT has determined that the interim final rule does not have sufficient federalism implications to warrant the preparation of a federalism assessment.

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