National Parks Air Tour Fees: Effective Verification and Enforcement Are Needed to Improve Compliance

GAO-06-468 May 11, 2006
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Summary

The Omnibus Budget Reconciliation Act of 1993 (the fees legislation) required the National Park Service to begin collecting fees from operators that conduct air tours over national park units that meet certain criteria. Currently, only Grand Canyon, Haleakala, and Hawaii Volcanoes National Parks meet the criteria to charge air tour fees. The Federal Aviation Administration (FAA), in cooperation with the Park Service, also regulates air tours over park units pursuant to the National Parks Overflights Act of 1987 and the National Parks Air Tour Management Act of 2000. GAO was asked to (1) assess the Park Service's collection of air tour fees and (2) identify what factors, if any, hinder the collection of air tour fees. GAO is also providing information on the possible expansion of air tour fees to additional park units.

Relying largely on voluntary compliance, the Park Service has collected some, but not all, fees from air tour operators at Grand Canyon, Haleakala, and Hawaii Volcanoes National Parks. After passage of the fees legislation, these three park units instituted air tour fees in 1994 by requesting operators to voluntarily report their air tours and pay appropriate fees monthly. Since then, the Park Service has collected about $19 million at the three park units (in inflation-adjusted 2005 dollars). However, voluntary compliance with the air tour fee requirement has been inconsistent, and several operators are not paying the required fees. For example, GAO found that 13 of the 21 operators conducting air tours over Grand Canyon underpaid their air tour fees for calendar years 2000 through 2003 by more than $1.5 million. The Park Service's ability to collect air tour fees is hindered by several factors. The Park Service cannot verify air tour activity over the three park units. Air tour operators are not required to record and report to either the Park Service or FAA their number of air tours over park units, except for Grand Canyon. Operators at Grand Canyon are required to report their air tours only to FAA. Consequently, the Park Service relies on operators to voluntarily report their air tours and pay the required fees. A GAO January 2006 report recommended that FAA take steps to require operators to report to both agencies their air tours over park units under the 2000 air tour act, including Haleakala and Hawaii Volcanoes. The Park Service cannot effectively enforce compliance due to the lack of air tour data. The Park Service has limited ability to enforce compliance because it does not have jurisdiction over airspace and lacks sufficient air tour data. Conversely, FAA is not required to assist with collecting, or enforcing the collection of, air tour fees. As a result, both Park Service and FAA officials told GAO, the agencies have little or no ability to take enforcement action against noncompliant operators. Different geographic applicability of two laws complicates efforts to collect air tour fees. The fees legislation and the 2000 air tour act have different geographic applicability, which has complicated the Park Service's collection efforts. Air tour fees are currently charged at only 3 of the 86 park units with air tours, based on the criteria established in the fees legislation. Expanding air tour fees to other park units could generate additional funding for the Park Service, but such an expansion would require a legislative change and should be balanced against potential impacts on air tour operators. Legislation could explicitly provide that the additional funding may be used to develop the air tour management plans required by the 2000 air tour act. Regarding the potential impacts on air tour operators, the 2000 air tour act directed FAA to prepare a report to Congress on this subject by October 2000. FAA has drafted the report but has not submitted it to Congress.



Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Implemented" or "Not implemented" based on our follow up work.

Director:
Team:
Phone:
Robin M. Nazzaro
Government Accountability Office: Natural Resources and Environment
(202) 512-6246


Matters for Congressional Consideration


Recommendation: To enhance the collection of air tour fees, Congress may wish to consider amending the fees legislation or the Air Tour Management Act to reconcile the geographic applicability of the two laws.

Status: In process

Comments: Section 607(f) of S. 1300, introduced in the 110th Congress, would grant the Secretary of the Interior broader fee authority regarding air tours over national park units. The pending legislation does not specifically address the geographic applicability question. Therefore, it is not clear if the pending legislation, if enacted, would address this matter for congressional consideration. The legislation simply states that the Secretary of the Interior would have authority to assess a fee "on commercial air tour operations over a national park." As of September 28, 2007, the legislation had not been enacted.

Recommendations for Executive Action


Recommendation: In order to improve compliance with air tour fee payments and to help understand the impacts of such fees on air tour operators' businesses, the Secretary of Transportation should direct the Administrator of FAA to establish a procedure for air tour operators at Grand Canyon National Park to report their air tour information simultaneously to the Park Service and FAA, or ensure that the air tour information is forwarded to the Park Service once it is reported to FAA by air tour operators.

Agency Affected: Department of Transportation

Status: In process

Comments: Although a formal process has not been established, the Federal Aviation Administration (FAA) has begun to share air tour information for the Grand Canyon National Park with the National Park Service. FAA has not formalized a process with the National Park Service because of pending legislation in the 110th Congress. The pending bills include S. 1076, section 607; S. 1300, section 710; H.R. 2881, section 501; and H.R. 1356, section 607. Each of the bills would require air tour operators to report their overflight activity to both the FAA and National Park Service. It is not clear, however, whether the pending legislation, if enacted, would only apply to those national park units covered by the National Parks Air Tour Management Act, or if it would also apply to the Grand Canyon National Park. As of September 28, 2007, the pending legislation, had not been enacted.

Recommendation: In order to improve compliance with air tour fee payments and to help understand the impacts of such fees on air tour operators' businesses, the Secretary of Transportation should direct the Administrator of FAA to report to Congress on the effects that air tour fees are likely to have on air tour operators as required by the Air Tour Management Act.

Agency Affected: Department of Transportation

Status: In process

Comments: The Federal Aviation Administration (FAA) created the report, but has not issued the report to Congress, as of September, 2007. According to FAA's audit liaison and National Park Service Officials, the National Park Service reviewed the report and provided comments to FAA. As of September, 2007, the report is been under review by the Office of Management and Budget.