Registered Traveler Interoperability Pilot Fees, 67889-67892 [E6-19898]

Agencies

• DEPARTMENT OF HOMELAND SECURITY
• Transportation Security Administration

[Federal Register Volume 71, Number 226 (Friday, November 24, 2006)]
[Notices]
[Pages 67889-67892]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19898]


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DEPARTMENT OF HOMELAND SECURITY

Transportation Security Administration

RIN 1652-ZA12


Registered Traveler Interoperability Pilot Fees

AGENCY: Transportation Security Administration, DHS.

ACTION: Notice.

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SUMMARY: The Transportation Security Administration (TSA) announces the 
establishment of the Service Provider Key Personnel Fee and the 
Registered Traveler Interoperability Pilot Participant Fee for the 
Registered Traveler Interoperability Pilot (RTIP). These fees will be 
collected to fund selected activities of the RTIP, a trusted traveler 
program that may provide expedited security screening for passengers 
who voluntarily provide biometric and biographic information to TSA, or 
a TSA agent, and successfully complete a security threat assessment. 
TSA currently is testing a pilot of the Registered Traveler program at 
Orlando International Airport. In the near future, TSA will begin the 
RTIP to test interoperability and other features of the program at 
selected airports. The Department of Homeland Security Appropriations 
Act of 2006 directs TSA to impose fees for the Registered Traveler 
Program by notice.

DATES: This notice is effective November 24, 2006.

FOR FURTHER INFORMATION CONTACT: John I. Martinez, Director, Registered 
Traveler Program, Office of Transportation Threat Assessment and 
Credentialing (TTAC), TSA-19, Transportation Security Administration, 
601 South 12th Street, Arlington, VA 22202-4220; facsimile (571) 227-
1936 e-mail: Registered.Traveler@dhs.gov.

SUPPLEMENTARY INFORMATION:

Availability of Notice Document

    You can get an electronic copy using the Internet by--
    (1) Searching the Department of Transportation's electronic Docket 
Management System (DMS) Web page (https://dms.dot.gov/search);
    (2) Accessing the Government Printing Office's Web page at https://
www.gpoaccess.gov/fr/; or
    (3) Visiting TSA's Security Regulations Web page at https://
www.tsa.gov and accessing the link for ``Research Center'' at the top 
of the page.
    In addition, copies are available by writing or calling the 
individual in the FOR FURTHER INFORMATION CONTACT section.

I. Statutory Authority

    The Aviation and Transportation Security Act (ATSA), Pub. L. 107-
71, (115 Stat. 597, 613, Nov. 19, 2001), sec. 109(a)(3), authorizes the 
Transportation Security Administration (TSA) to ``establish 
requirements to implement trusted passenger programs and use available 
technologies to expedite security screening of passengers who 
participate in such programs, thereby allowing security screening 
personnel to focus on those passengers who should be subject to more 
extensive screening.'' Pursuant to that authority, TSA is conducting 
the next pilot of the Registered Traveler (RT) program at 10-20 
participating airports to further test

[[Page 67890]]

and evaluate this type of trusted traveler program. This pilot program, 
known as the Registered Traveler Interoperability Pilot follows the 
results of two sets of RT pilots initiated by TSA in 2004-2005.
    The Department of Homeland Security Appropriations Act of 2006 
(Appropriations Act) permits TSA to recover the full cost of TSA 
activities relating to Registered Traveler and authorizes TSA to 
establish and amend fees by notices in the Federal Register. The 
Appropriations Act provides:

    For fiscal year 2006 and thereafter, notwithstanding section 553 
of title 5, United States Code, the Secretary of Homeland Security 
shall impose a fee for any registered traveler program undertaken by 
the Department of Homeland Security by notice in the Federal 
Register, and may modify the fee from time to time by notice in the 
Federal Register: Provided, That such fees shall not exceed the 
aggregate costs associated with the program and shall be credited to 
the Transportation Security Administration registered traveler fee 
account, to be available until expended.\1\
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    \1\ Department of Homeland Security Appropriations Act, 2006, 
Pub. L. 109-90 (119 Stat. 2064, 2088, Oct. 18, 2005), See. 540.

This notice announces and establishes the fees to fund activities 
related to RTIP as authorized under the Appropriations Act. As 
discussed below, TSA intends to fully fund its RTIP-related activities 
through the fees it establishes pursuant to this authority.

II. Registered Traveler Program

    Under RTIP, travelers who are U.S. citizens, lawful permanent 
resident aliens, or nationals of the United States, may be eligible for 
expedited security screening for air travel if they voluntarily submit 
requested biometric and biographic information and successfully undergo 
a TSA-conducted security threat assessment in order to confirm that 
they do not pose a threat to transportation or national security.
    RTIP is a private sector program, supported and overseen by TSA, 
with distinct roles and responsibilities for each participating entity. 
TSA is responsible for setting program standards, conducting security 
threat assessments, physical screening of RT participants at TSA 
checkpoints, and certain forms of oversight. The private sector Service 
Providers are responsible for enrollment of RT participants, 
verification of participants' RT status using biometric identification 
verification technologies as they enter the screening checkpoint, and 
related services. Airport and aircraft operators that are Sponsoring 
Entities will oversee their Service Providers and ensure their Service 
Providers comply with the requirements of the RTIP.
    TSA began testing of an RT pilot in 2004-05 and currently is 
testing a pilot program at Orlando International Airport. TSA 
anticipates expanding this initial test phase of RT to the Register 
Traveler Interoperability Pilot which will include approximately 10--20 
airports and airlines. These airports and airlines will begin 
participating in the RTIP as Sponsoring Entities once they make the 
necessary business arrangements with Service Providers and obtain TSA 
approval for the proposed configuration for RTIP operations at that 
airport. This approach allows TSA to confirm the private sector's 
ability to provide interoperability of the biometric identification 
verification technologies among RTIP airports, evaluate possible means 
to expedite screening for RT participants, and re-affirm that RT 
continues to maintain TSA's high security standards. As authorized by 
TSA, RTIP is intended to strengthen customer service for eligible air 
travelers while maintaining security at the TSA screening checkpoint.
    Under the RTIP, Sponsoring Entities contract with Service Providers 
to perform enrollment and verification services. An RTIP Service 
Provider can be:
    (1) An Enrollment Provider (EP) that collects the biographic and 
biometric information from RT applicants, collects all fees from RT 
applicants, and issues RT cards to RT participants after TSA's security 
threat assessment has been completed;
    (2) A Verification Provider (VP) that confirms that the RT 
participant is an active participant in accordance with TSA-issued RT 
standards as the RT participant enters the screening checkpoint; or
    (3) A combined Enrollment and Verification Provider. ``Service 
Provider'' is used in this document as a term of collective reference 
to RT vendors of all three categories.
    Private sector Service Providers must meet qualification and 
participation criteria set by TSA in order to participate, including 
security requirements and oversight. As part of their security 
requirements, Service Providers are required to submit to a TSA-
conducted participation review to confirm that the companies are 
legitimate businesses that do not pose, and are not suspected of 
posing, a threat to transportation or national security. Service 
Providers' key personnel will also need to provide information in order 
for TSA to determine that they do not pose, and are not suspected of 
posing, a threat to transportation or national security. Oversight may 
include, but is not limited to, announced and unannounced inspections 
of the Service Provider by TSA or by the Sponsoring Entity, the 
collection of metrics, and reconciliation of records, and reviews of 
the Service Providers' information technology security systems and 
documentation. The Sponsoring Entity is responsible for ensuring that 
these Service Providers meet TSA-mandated standards. TSA enforces these 
standards through the Sponsoring Entity (airport or air carrier), which 
is subject to inspection and regulation by TSA.
    To enroll in the RTIP, applicants voluntarily provide RTIP 
Sponsoring Entities and Service Providers with biographic and biometric 
data needed for TSA to conduct the security threat assessment and 
determine eligibility.\2\ The security threat assessment includes 
checking each applicant's biographic data against terrorist-related and 
immigration databases. RT applicants who receive an ``approved'' 
security threat assessment result from TSA may become RT participants.
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    \2\ The Privacy Impact Assessment for RTIP is available on TSA's 
Web site at https://www.tsa.gov/assets/pdf/pia_tsa-rt_20060901.pdf.
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    Once a traveler qualifies as an approved RT participant, he or she 
will be able to take advantage of the benefits of the RTIP. RT 
participants may receive expedited passenger screening as well as other 
benefits. To obtain these benefits when traveling by air through 
participating RTIP airports, RT participants will verify their identity 
through biometric identity verification technologies at the screening 
checkpoint. This process also ensures that the individual is a 
currently ``approved'' RT participant. After the identity and current 
status of the RT participant are verified, the participant enters the 
checkpoint lane identified for registered travelers and undergoes the 
applicable TSA checkpoint screening. Depending on airport configuration 
and RT volume at particular airports, RT participants may be screened 
through a separate screening lane or may proceed to the front of lanes 
used by other travelers.
    Additional information on RTIP may be obtained by contacting the 
individual listed under FOR FURTHER INFORMATION CONTACT, above, or on 
the Web at https://www.tsa.gov/what_we_do/layers/rt/index.shtm.

II. Fees

    TSA has identified various RTIP-related activities that will be 
funded

[[Page 67891]]

through fees. These activities include the following: conducting threat 
assessments on Service Provider employees who collect, handle, or use 
RT applicant or participant data and on officers, principals, and 
program managers responsible for RTIP operations (collectively ``key 
personnel''); conducting security threat assessments on RT applicants; 
and conducting and managing TSA's responsibilities for the RTIP. By 
this notice, TSA is establishing its fees for conducting threat 
assessments of Service Providers' key personnel and the Registered 
Traveler Interoperability Pilot Participant Fee for the RTIP. This 
notice also describes the arrangement for negotiating how TSA may 
charge Sponsoring Entities for dedicated RT checkpoints should the cost 
of providing services and support is beyond what TSA is currently 
providing to the passengers.

A. Standards and Guidelines Used by TSA in Developing These Fees

    When setting fees for services, TSA looks, to the extent possible, 
to the cost accounting concepts and standards recommended by the 
Federal Accounting Standards Advisory Board (FASAB). The FASAB, 
established in 1990, recommends accounting standards for the Federal 
Government. The FASAB defines ''full cost'' to include ''direct and 
indirect costs that contribute to the output, regardless of funding 
sources.'' See Federal Accounting Standards Advisory Board, ``Statement 
of Financial Accounting Standards No. 4: Managerial Cost Accounting 
Concepts and Standards for the Federal Government 36'' (July 31, 1995). 
To obtain full cost, FASAB identifies various classifications of costs 
to be included, and recommends various methods of cost assignment. See 
id. at pages 36-42. Full costs include, but are not limited to, an 
appropriate share of:
    (1) Direct and indirect personnel costs, including salaries and 
fringe benefits, such as medical insurance and retirement;
    (2) Physical overhead, consulting, and other indirect costs, 
including material and supply costs, utilities, insurance, travel and 
rents or imputed rents on land, buildings, and equipment; and
    (3) Management and supervisory costs. Full costs are determined 
based upon the best available records of the agency.

B. Service Provider Key Personnel Fee

Why is TSA performing security threat assessments on Service Providers' 
key personnel?
    Service Providers' key personnel will be responsible for collecting 
or accessing private and sensitive information about RT applicants. 
They are also responsible for maintaining the security and integrity of 
the process and information technology systems that will collect 
information and verify documents submitted by RT applicants and that 
will permit RT travelers to use the RT lines or lanes. TSA will conduct 
security threat assessments on Service Providers' key employees to 
determine whether there are reasons to believe that a key employee 
should not be allowed to have access to private or sensitive 
information or systems.
Which Service Provider personnel will be required to undergo security 
threat assessments?
    Service Provider employees who collect, handle, or use RT applicant 
or participant data must undergo security threat assessments. 
Additionally, Service Provider officers, principals, and program 
managers who are responsible for RTIP operations must also undergo 
security threat assessments.
What is the fee for conducting a security threat assessment of a 
Service Provider's key personnel?
    As part of TSA's review of a prospective Service Provider and its 
key personnel to confirm that they do not pose a threat to 
transportation or national security, TSA will conduct security threat 
assessments on the Service Provider's key personnel. Service Provider 
key personnel will submit their information to the American Association 
of Airport Executives (AAAE), which is under agreement with TSA to 
collect and process biographic and biometric information from these 
personnel. TSA will transmit the information to the Federal Bureau of 
Investigation (FBI) for a criminal history records check (CHRC) and 
will perform a name-based check of terrorist-related and immigration 
databases.
    TSA will charge a total fee of $43.00 per person to conduct its 
threat assessment of key personnel. The fee is comprised of three 
components, discussed further below: (1) The amount that the American 
Association of Airport Executives (AAAE) charges to collect and forward 
biographic information and fingerprints (``Data Collection Fee''); (2) 
the amount that the FBI charges to conduct a CHRC (``FBI Fee''); and 
(3) the cost for TSA to conduct its security threat assessment. This 
threat assessment is valid for five years and must be renewed after 
five years.
    1. Data Collection Fee. TSA has an agreement with AAAE to collect, 
process, and forward biographic information and fee payments from 
Service Providers' key personnel. AAAE will also process and forward 
the key personnel's fingerprints. Under the agreement, AAAE will charge 
$15.00 per person for its services. Because AAAE does not collect 
fingerprints from individuals, this fee does not include a charge for 
fingerprint collection. Key employees will likely provide their 
fingerprints to an airport authority or other law enforcement agency. 
These organizations may charge a fee to collecting the fingerprints and 
the fee may vary depending on where the individual decides to submit 
their fingerprints.
    2. FBI Fee. As part of the security threat assessment, TSA submits 
fingerprints to the FBI to obtain any criminal history records that 
correspond to the fingerprints. The FBI is authorized to establish and 
collect fees to process fingerprint identification records. See 28 
U.S.C. 534 nt. Pursuant to Criminal Justice Information Services 
Information Letter 93-3 (October 8, 1993), this fee is currently set at 
$22. If the FBI increases or decreases its fee to complete the CHRC, 
the increase or decrease will apply to this fee on the date that the 
new FBI fee becomes effective.
    TSA will adjudicate the results of the CHRC based on the same list 
of disqualifying criminal offenses it uses for individuals seeking 
unescorted access to the security identification display area. This 
list is set forth in 49 CFR 1542.209(d).
    3. Security Threat Assessment Cost. For the TSA security threat 
assessment process, each key personnel's information will be checked 
against terrorist-related and immigration databases and other 
governmental information sources so that TSA can determine whether the 
key personnel poses a security threat. TSA will also continuously vet 
key personnel. If an individual who has successfully undergone a 
security threat assessment initially subsequently is found not to meet 
TSA's criteria, the individual will no longer be allowed to participate 
in the RTIP.
    TSA must implement and maintain the appropriate systems, resources, 
and personnel to ensure the following: that TSA is able to conduct 
security threat

[[Page 67892]]

assessments; that fingerprints and applicant information are 
appropriately linked; that TSA can receive and act on the results of 
security threat assessments; and that TSA can perpetually re-vet key 
personnel. TSA must have the necessary resources--including labor, 
equipment, database access, and overhead--to complete the security 
threat assessment process.
    Because the anticipated population size of key employees and 
officials is relatively small, TSA will be able to leverage existing 
infrastructure for conducting security threat assessments to minimize 
start-up costs. Using the current infrastructure, the cost of 
conducting a security threat assessment and adjudicating the results, 
including the CHRC, is $6.00 per person.
Will there be refunds if TSA denies individuals approval to conduct 
enrollment and verification operations (or are responsible for managing 
such persons)?
    TSA will not refund the Service Provider Key Personnel Fee to the 
Sponsoring Entities if TSA does not approve key personnel to conduct 
enrollment and verification operations (or are responsible for managing 
such persons).

C. Registered Traveler Interoperability Pilot Participant Fee

    As part of TSA's review of a prospective participant in the 
Registered Traveler Interoperability Pilot to confirm that he or she 
does not pose a threat to transportation or national security, TSA will 
conduct security threat assessments on the individuals. Applicants will 
submit their information through a Service Provider to AAAE, which is 
under agreement with TSA to collect and process biographic and 
biometric information and transmit the information to TSA. TSA will 
perform a name-based check of terrorist-related and immigration 
databases. The Service Provider will forward the Registered Traveler 
Interoperability Pilot Participant Fee to TSA through AAAE. The 
Registered Traveler Interoperability Pilot Participant Fee does not 
include any fees that a Service Provider or a Sponsoring Entity may 
charge for its services.
What is the Registered Traveler Interoperability Pilot Participant Fee?
    TSA will charge a total annual fee of $28 per person. If the 
Sponsoring Entity or its Service Provider decides to pass on this fee 
to RT applicants, the Enrollment Provider will collect this fee from 
the RT applicant. The annual fee represents TSA's cost in fulfilling 
its responsibilities related to the oversight and operation of the 
Registered Traveler Interoperability Pilot and to conducting security 
threat assessments on RT applicants. This annual is based on the total 
TSA costs divided by the anticipated number of RT participants.
    The costs for TSA to fulfill its oversight and operation 
responsibilities include direct and indirect personnel costs, physical 
overhead, administration, travel; and compliance verification. The 
costs for TSA to conduct security threat assessments includes TSA's 
implementation and maintenance of the appropriate systems, resources, 
and personnel to ensure the following: that TSA is able to perform a 
name-based check of terrorist-related and immigration databases; that 
applicant information is appropriately linked; that TSA can receive and 
act on the results of the security threat assessment; and that TSA can 
perpetually re-vet RT participants.
Will there be a refund if TSA denies an individual approval to 
participate in the Registered Traveler Interoperability Pilot?
    TSA will not refund the Registered Traveler Interoperability Pilot 
Participant Fee to individuals who are not approved for participation 
in the Registered Traveler Interoperability Pilot based upon the 
results of a security threat assessment.

D. Charge for Dedicated Checkpoint Stations

    Currently, TSA does not anticipate that there will be a separate 
screening lane that leads to a dedicated checkpoint station at any 
airport when the RTIP begins operation. If a Sponsoring Entity decides 
to create a separate screening lane for RT participants or institute a 
process that requires Transportation Security Officer (TSO) support 
beyond what TSA is currently providing for these passengers, TSA will 
negotiate the exact level of support and the fee necessary to match the 
costs of this support with the Sponsoring Entity. TSA will then charge 
the Sponsoring Entity the fee based upon the cost of providing services 
and support beyond what TSA is currently providing to the passengers. 
TSA plans to collect this fee from the Sponsoring Entity directly and 
does not plan to include this fee in the Registered Traveler 
Interoperability Pilot Participant Fee. The Sponsoring Entity and its 
Service Provider may decide, however, to pass on these costs to RT 
participants through their own fees.

    Issued in Arlington, Virginia, on November 17, 2006.
Kip Hawley,
Assistant Secretary.
[FR Doc. E6-19898 Filed 11-22-06; 8:45 am]
BILLING CODE 9110-05-P