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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 

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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