787
Federal Aviation Administration, DOT
§ 158.85
the public agency in the period covered
by the audit and to the Administrator.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–4, 72 FR 28851, May 23,
2007]
§ 158.69 Recordkeeping and auditing:
Collecting carriers.
(a) Collecting carriers shall establish
and maintain for each public agency
for which they collect a PFC an ac-
counting record of PFC revenue col-
lected, remitted, refunded and com-
pensation retained under § 158.53(a) of
this part. The accounting record shall
identify the airport at which the pas-
sengers were enplaned.
(b) Each collecting carrier that col-
lects more than 50,000 PFC’s annually
shall provide for an audit at least an-
nually of its PFC account.
(1) The audit shall be performed by
an accredited independent public ac-
countant and may be of limited scope.
The accountant shall express an opin-
ion on the fairness and reasonableness
of the carrier’s procedures for col-
lecting, holding, and dispersing PFC
revenue. The opinion shall also address
whether the quarterly reports required
under § 158.65 fairly represent the net
transactions in the PFC account.
(2) For the purposes of an audit under
this section, collection is defined as
the point when agents or other inter-
mediaries remit PFC revenue to the
carrier.
(3) Upon request, a copy of the audit
shall be provided to each public agency
for which a PFC is collected.
§ 158.71 Federal oversight.
(a) The Administrator may periodi-
cally audit and/or review the use of
PFC revenue by a public agency. The
purpose of the audit or review is to en-
sure that the public agency is in com-
pliance with the requirements of this
part and 49 U.S.C. 40117.
(b) The Administrator may periodi-
cally audit and/or review the collection
and remittance by the collecting car-
riers of PFC revenue. The purpose of
the audit or review is to ensure col-
lecting carriers are in compliance with
the requirements of this part and 49
U.S.C. 40117.
(c) Public agencies and carriers shall
allow any authorized representative of
the Administrator, the Secretary of
Transportation, or the Comptroller
General of the U.S., access to any of its
books, documents, papers, and records
pertinent to PFC’s
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34543, May 30,
2000]
Subpart E—Termination
§ 158.81 General.
This subpart contains the procedures
for termination of PFCs or loss of Fed-
eral airport grant funds for violations
of this part or 49 U.S.C. 40117. This sub-
part does not address the cir-
cumstances under which the authority
to collect PFCs may be terminated for
violations of 49 U.S.C. 47523 through
47528.
[Doc. No. FAA–2006–23730, 72 FR 28851, May
23, 2007]
§ 158.83 Informal resolution.
The Administrator shall undertake
informal resolution with the public
agency or any other affected party if,
after review under § 158.71, the Admin-
istrator cannot determine that PFC
revenue is being used for the approved
projects in accordance with the terms
of the Administrator’s approval to im-
pose a PFC for those projects or with 49
U.S.C. 40117.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34543, May 30,
2000]
§ 158.85 Termination of authority to
impose PFC’s.
(a) The FAA begins proceedings to
terminate the public agency’s author-
ity to impose a PFC only if the Admin-
istrator determines that informal reso-
lution is not successful.
(b) The Administrator publishes a no-
tice of proposed termination in the
F
EDERAL
R
EGISTER
and supplies a copy
to the public agency. This notice will
state the scope of the proposed termi-
nation, the basis for the proposed ac-
tion and the date for filing written
comments or objections by all inter-
ested parties. This notice will also
identify any corrective actions the
public agency can take to avoid further
788
14 CFR Ch. I (1–1–24 Edition)
§ 158.87
proceedings. The due date for com-
ments and corrective action shall be no
less than 60 days after publication of
the notice.
(c) If corrective action has not been
taken as prescribed by the Adminis-
trator, the FAA holds a public hearing,
and notice is given to the public agen-
cy and published in the F
EDERAL
R
EG
-
ISTER
at least 30 days prior to the hear-
ing. The hearing will be in a form de-
termined by the Administrator to be
appropriate to the circumstances and
to the matters in dispute.
(d) The Administrator publishes the
final decision in the F
EDERAL
R
EG
-
ISTER
. Where appropriate, the Adminis-
trator may prescribe corrective action,
including any corrective action the
public agency may yet take. A copy of
the notice is also provided to the public
agency.
(e) Within 10 days of the date of pub-
lication of the notice of the Adminis-
trator’s decision, the public agency
shall—
(1) Advise the FAA in writing that it
will complete any corrective action
prescribed in the decision within 30
days; or
(2) Provide the FAA with a listing of
the air carriers and foreign air carriers
operating at the airport and all other
issuing carriers that have remitted
PFC revenue to the public agency in
the preceding 12 months.
(f) When the Administrator’s decision
does not provide for corrective action
or the public agency fails to complete
such action, the FAA provides a copy
of the F
EDERAL
R
EGISTER
notice to
each air carrier and foreign air carrier
identified in paragraph (e) of this sec-
tion. Such carriers are responsible for
terminating or modifying PFC collec-
tion no later than 30 days after the
date of notification by the FAA.
§ 158.87 Loss of Federal airport grant
funds.
(a) If the Administrator determines
that revenue derived from a PFC is ex-
cessive or is not being used as ap-
proved, the Administrator may reduce
the amount of funds otherwise payable
to the public agency under 49 U.S.C.
47114. Such a reduction may be made as
a corrective action under § 158.83 or
§ 158.85 of this part.
(b) The amount of the reduction
under paragraph (a) of this section
shall equal the excess collected, or the
amount not used in accordance with
this part.
(c) A reduction under paragraph (a)
of this section shall not constitute a
withholding of approval of a grant ap-
plication or the payment of funds
under an approved grant within the
meaning of 49 U.S.C. 47111(d).
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34543, May 30,
2000]
Subpart F—Reduction in Airport
Improvement Program Appor-
tionment
§ 158.91 General.
This subpart describes the required
reduction in funds apportioned to a
large or medium hub airport that im-
poses a PFC.
§ 158.93 Public agencies subject to re-
duction.
The funds apportioned under 49
U.S.C. 47114 to a public agency for a
specific primary commercial service
airport that it controls are reduced if—
(a) Such airport enplanes 0.25 percent
or more of the total annual
enplanements in the U.S., and
(b) The public agency imposes a PFC
at such airport.
[Doc. No. 26385, 56 FR 24278, May 29, 1991, as
amended by Amdt. 158–2, 65 FR 34543, May 30,
2000]
§ 158.95 Implementation of reduction.
(a) A reduction in apportioned funds
will not take effect until the first fis-
cal year following the year in which
the collection of the PFC is begun and
will be applied in each succeeding fis-
cal year in which the public agency im-
poses the PFC.
(b) The reduction in apportioned
funds is calculated at the beginning of
each fiscal year and shall be an amount
equal to—
(1) In the case of a fee of $3 or less, 50
percent of the projected revenues from
the fee in the fiscal year but not by
more than 50 percent of the amount
that otherwise would be apportioned
under this section; and