1652-0001 SuppStmt(2) final

INFORMATION COLLECTION SUPPORTING STATEMENT

Imposition and Collection of Passenger Civil Aviation Security Service Fee

OMB Control Number 1652-0001

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statute and regulation mandating or authorizing the collection of information. (Annotate the CFR parts/sections affected).

To help defray the government’s costs of providing civil aviation security services, the Transportation Security Administration (TSA) is required to impose the September 11th Security Fee on passengers of air carriers and foreign air carriers (collectively referred to as “carriers”). See 49 U.S.C. 44940. This requirement is implemented under TSA regulations at 49 CFR part 1510. Consistent with the statutory authorization in 49 U.S.C. 44940(a), the regulations require that the fee be imposed on passengers with air transportation or intrastate air transportation departing from an airport within the United States. See 49 CFR 1510.5(a). Carriers are required to collect the fees from passengers and remit collections to TSA on a monthly basis. See 49 CFR 1510.9 and 49 CFR 1510.13.

This collection is necessary as a result of the requirements of 49 CFR part 1510 for carriers to submit quarterly reports to TSA and to retain the information for three fiscal years prior to the current fiscal year. This requirement includes retaining the source information for the quarterly reports remitted to TSA, and the calculations and allocations performed to remit reports to TSA – such as the amounts imposed on, collected from, and refunded to passengers. See 49 CFR 1510.17

Effective January 23, 2003, TSA suspended a requirement under 49 CFR 1510.15 for each air carrier that collects security service fees from more than 50,000 passengers to submit to TSA an annual independent audit, performed by an independent certified public accountant, of its security service fee activities and accounts. See 68 FR 3192 (Jan. 23, 2002). Should the auditing requirement be reinstated, the requirement would include information and documents reviewed and prepared for the independent audit, including (1) the accountant’s working papers, notes, worksheets, and other relevant documentation used in the audit and (2) if applicable, the specific information leading to the accountant’s opinion, including any determination that the accountant could not provide an audit opinion. Although TSA suspended the independent audit requirement, TSA conducts audits of the carriers and, therefore, requires carriers to retain and provide the same information as required for the quarterly reports and independent audits. See 49 CFR 1510.19.

OMB initially approved this information collection in 2001 and assigned it OMB control number 1652-0001. TSA has subsequently requested renewal and received approval of the Information Collection Request (ICR) through August 31, 2015. TSA is revising its ICR in conjunction with an Interim Final Rule (IFR) published in the Federal Register on June 20, 2014 (2014 IFR) to implement changes to the regulations required by amendments to 49 U.S.C. 44940. See 79 FR 35462.

2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection.

TSA collects the information related to the September 11th Security Fee to monitor air carrier compliance with the fee requirements, for auditing purposes, and to track performance measures.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden. [Effective 03/22/01, your response must SPECIFICALLY reference the Government Paperwork Elimination Act (GPEA), which addresses electronic filing and recordkeeping, and what you are doing to adhere to it. You must explain how you will provide a fully electronic reporting option by October 2003, or an explanation of why this is not practicable.]

Carriers have the latitude and flexibility to maintain the required information in a manner that best meets their particular needs, which includes electronic maintenance and submission of this information. Reports may be submitted electronically through the air carrier data reporting portal website - https://pfdps.tsa.dhs.gov/xml/tsa/. Alternatively, carriers may print and submit a written form (TSA-Form 2052, available at https://pfdps.tsa.dhs.gov/xml/tsa/). Thus, this collection is in compliance with the Government Paperwork Elimination Act. Electronic signatures are not applicable to this program. TSA estimates that carriers maintain approximately 75 to 80 percent of the records electronically.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purpose(s) described in Item 2 above.

This information is not collected elsewhere in any form, therefore it is not a duplicative collection.

5. If the collection of information has a significant impact on a substantial number of small businesses or other small entities (Item 5 of the Paperwork Reduction Act submission form), describe the methods used to minimize burden.

This information collection does not have an impact on small business or other small entities.

6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

The fee is established under 49 U.S.C. 44940 to help defray Federal government costs of providing aviation security through TSA programs. TSA uses the collected information to ensure that carriers are properly imposing and collecting the fee from each passenger and submitting the fee to TSA in a timely manner. The lack of this information could result in incomplete audit results and the inability to manage air carrier compliance. The loss of revenue from an inability to detect failure to comply would affect the amount of revenue intended to be collected to offset government costs, including the costs of providing civil aviation security by TSA.

7. Explain any special circumstances that require the collection to be conducted in a manner inconsistent with the general information collection guidelines in 5 CFR 1320.5(d)(2).

This collection is conducted consistent with 5 CFR 1320.5(d)(2).

8. Describe efforts to consult persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8(d) soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.

TSA published a Federal Register notice, with a 60-day comment period, soliciting comments on this collection of information request. See 79 FR 48755 (August 18, 2014). The agency received no comments. Additionally, TSA published a 30-day notice in the Federal Register. See 79 FR 64400 (Oct 29, 2014). This notice also did not garner any comments on the collection of information.

9. Explain any decision to provide any payment or gift to respondents, other than remuneration of contractors or grantees.

TSA does not provide payments or gifts to the respondents.

10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.

There are no assurances of confidentiality provided to the respondents for this information collection.

11. Provide additional justification for any questions of sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private.

TSA does not ask questions of a sensitive nature.

12. Provide estimates of hour burden of the collection of information.

TSA has estimated that 173 total respondent carriers will spend approximately 1 hour on quarterly reports, for a total of 692 hours per year. Should the audit requirement be reinstated, TSA estimates that 105 carriers, of the 173 total respondent carriers, collect fees from more than 50,000 passengers annually, and will be required to submit annual audits. These carriers will spend approximately 20 hours on audit preparation, for a total of 2,100 hours annually. The total annual hour burden for quarterly reports and annual audits is estimated at 2,792 hours. TSA estimates the total annual responses to be 797 (692 plus 105, should the annual audit requirement be reinstated).

Number of Air Carriers	Hours per Response	Yearly Response	Total Hours of Burden
173 (Reporting)	1 hour	4 (Quarterly)	692
105 (Audit)	20 hours	1	2,100

13. Provide an estimate of the total annual cost burden to respondents or recordkeepers resulting from the collection of information.

TSA estimates that the 173 air carriers will each incur an average cost of $363.96 annually to satisfy the quarterly reporting requirement. This estimate includes $291.00 in labor for preparation of each quarterly reports (4 reports * $72.75 per hour, each quarterly report is estimated to take 1 hour to prepare), $71.00 in annual records storage related costs, and $1.96 for postage to submit the report (4 stamps at 49 cents each). TSA estimates an aggregate annual cost of $62,965.08 ($363.96 cost * 173 air carriers) for all air carriers to prepare, store, and submit quarterly reports and a cost of $188,895.24 for the three-year extension period requested.

Should TSA reinstate the annual audit requirement, TSA estimates that 105 air carriers would be required to submit annual audits and would incur an average cost of $3,074.50 per audit. This estimate includes $3,000.00 in labor for preparation of each audit (20 hours per report * $150.00 per hour), $71.00 in annual records storage related costs, and $3.50 for postage to submit the report. TSA estimates an aggregate annual cost of $322,822.50 ($3074.50 cost * 105 air carries) for all air carriers to prepare, store, and summit the annual audit should the requirement be reinstated and $968,647.50 for the three-year extension period requested.

Per-Carrier Annual Reporting Requirement Cost

Reports	Cost Per Hour	Prep Time	Storage Cost	Postage	Formula	Total Costs
4	$72.75	1 hr.	$71	$.49	(4x$72.75x1)+$71+(4x$.49)	$363.96

Industry-wide Reporting Requirement Cost

Year	# of Air Carriers	Average Cost	Aggregate Cost
1	173	$363.96	$62,965.08
3	173	$62,965.08	$188,895.24

Per-Carrier Annual Audit Requirement Cost

Report	Cost Per Hour	Prep Time	Storage Cost	Postage	Formula	Total Costs
1	$150	20	$71	$3.5	(1x$150x20)+$71+(1x$3.50)	$3,074.50

Industry-wide Audit Requirement Cost

Year	# of Air Carriers	Average Cost	Aggregate Cost
1	105	$3,074.50	$322,822.50
3	105	$322,822.50	$968,647.50

14. Provide estimates of annualized cost to the Federal Government. Also, provide a description of the method used to estimate cost, and other expenses that would not have been incurred without this collection of information.

TSA hosts the air carrier data portal and has already incurred the development costs for creating the air carrier data portal. As such, the costs TSA would incur on an ongoing basis are limited to operations and maintenance of the system and renewing the authority to operate with the DHS Chief Information Security Officer (CISO). The estimated the cost to the Federal government of collecting this information through the data portal is $90,000 annually. Presently the air carrier data portal is hosted and maintained by a third party. TSA expects that the average annual cost of maintaining this system will remain approximately $90,000 annually for future fiscal years.

15. Explain the reasons for any program changes or adjustments reported in Items 13 or 14 of the OMB Form 83-I.

Information collection requirements associated with the security service fee requirements of 49 CFR part 1510 have been approved by OMB through August 31, 2015. TSA is seeking revision of this collection based on amendments to 49 U.S.C. 44940 which restructure the fee. See section 601, Title A of the Bipartisan Budget Act of 2013 (Pub.L. 113-67 (Dec. 26, 2013)) (Budget Act). Changes to the underlying statute require changes to TSA’s regulations at 49 CFR part 1510, which are being addressed through an IFR published on June 20, 2014 (Volume 79 FR 35462). The only difference between the current information collection requirements and those necessary as a result of the IFR is that the fee amounts reported will be based on one-way trips rather than enplanements. The remaining requirements of the currently approved information collection are unchanged. For example, air carriers are to continue submitting the quarterly reports to TSA, and to retain the information for three fiscal years prior to the current fiscal year. This requirement includes retaining the source information for the quarterly reports remitted to TSA, and the calculations and allocations performed to remit reports to TSA.

Although the changes to the fee structure required by the Budget Act are effective beginning July 21, 2014, the related changes to the associated information collection will be effective August 1, 2014. This is because security service fee reporting requirements occur on a quarterly basis.

TSA has adjusted the costs to industry to be consistent with the estimated number of air carriers subject to the regulation as indicated in the IFR. Previously, TSA estimated 196 respondents and based its cost estimates on that number. In the IFR, TSA estimates the regulation would affect 173 affected air carriers and has made adjustments to the calculations to be consistent with that estimate.

TSA hosts the air carrier data portal and has already incurred the development costs for creating the air carrier data portal. As such, the costs TSA would incur on an ongoing basis are limited to operations and maintenance of the system and renewing the authority to operate with the DHS CISO. The estimated annual cost to the Federal government of maintaining this system will be $90,000 for future periods.

16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

This information collection will not be published for statistical purposes.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

TSA is not seeking approval to not display the expiration date for OMB approval of this information collection.

18. Explain each exception to the certification statement identified in Item 19, “Certification for Paperwork Reduction Act Submissions,” of OMB Form 83-I.

TSA does not request an exception to the certification of this information collection.