FMM_2_12_6CivilPenaltyFees_061410.pdf

TSA Financial Management Manual June 14, 2010

Part 2 – Chapter 12, Section 6 1 File 5000.10

FEES - CIVIL PENALTIES

1. PURPOSE

This section provides guidance for the processing of civil penalty payments. This guidance is intended for TSA personnel handling civil penalty payments pursuant to TSA’s statutory authority.

2. REFERENCES

• Aviation and Transportation Security Act (ATSA), Public Law 107-71 (Nov. 19, 2001)

• Title 49 Code of Federal Regulations Part 1503, Investigative and Enforcement Procedures

3. DEFINITIONS

• Dunning Letter

– This is a formal written notification of a debt or delinquent account receivable that demands immediate payment.

Federal Security Director (FSD)

– The individual responsible for providing day-to-day operational direction for security at the airport.

Legal Integrated Knowledge System (LInKs)

– A TSA database used by the Office of Chief Counsel (OCC), which interfaces with the PARIS database. When a civil penalty case is recommended in PARIS, a legal matter is created in LInKs from the original PARIS entry. When a case is closed in LInKs, the disposition migrates back to PARIS.

Notice of Violation (NOV)

– A streamlined enforcement action designed for violations by individuals who present dangerous items and substances at the security checkpoint or in checked baggage.

Performance and Results Information System (PARIS)

– An Office of Security Operations database.

Enforcement Sanction Guidance Policy – Contains a table of typical security violations that provides agency enforcement personnel with guidance in determining appropriate sanctions for civil penalty enforcement actions, and promotes consistency in the enforcement of TSA regulations. The Sanctions Guidance is available on TSA’s public website (type “sanctions” into the search box).

http://www.tsa.gov/assets/pdf/Aviation_and_Transportation_Security_Act_ATSA_Public_Law_107_1771.pdf� http://www.access.gpo.gov/nara/cfr/waisidx_03/49cfrv8_03.html#1500� http://www.tsa.gov/research/guidance/documents.shtm�

TSA Financial Management Manual June 14, 2010

Part 2 – Chapter 12, Section 6 2

4. RESPONSIBILITIES

A. Office of Chief Counsel: Headquarters Civil Enforcement Counsel

(1) Develops and issues enforcement policy and guidance.

(2) Handles civil penalty cases involving violations outside the United States.

B. Office of Chief Counsel: Field Counsel

(1) Located with the FSD at the nation’s major airports, handles the majority of non-NOV civil enforcement matters.

(2) Advises and assists during the course of an investigation

C. Federal Security Director (FSD)

Approves civil penalty recommendations by the Transportation Security Inspector.

D. United States Coast Guard Finance Center (FINCEN)

(1) Receives payments through the Accounts Receivable Lockbox.

(2) Provides a civil penalty payments spreadsheet to OCC on a weekly basis.

(3) Works with OCC to match payments to the appropriate payor/respondent in cases where the party paying civil penalty fails to include the TSA case number on the payment document.

5. PROCEDURES

A. Violation Notices

(1) NOVs are used for prohibited item violations at the security checkpoint or in checked baggage and for which the proposed civil penalty is under $5,000.

Notices of Proposed Civil Penalty (NPCPs) are used in all other civil penalty cases.

(2) NOV cases are assigned in LinKS to the Administrative Processing Office (APO). Non-NOV cases are assigned in LinKS to TSA counsel. In NOV cases, the APO issues a Notice of Violation to the respondent. In non-NOV cases, TSA counsel issues a Notice of Proposed Civil Penalty to the respondent.

(3) Both the NOV and the NPCP give the respondent five options, which must be exercised within 30 days of the respondent’s receipt of the Notice:

(a) Pay a 50% reduced fine within 30 days;

TSA Financial Management Manual June 14, 2010

Part 2 – Chapter 12, Section 6 3

(b) Request an informal conference with a TSA attorney to contest the alleged violation in the NOV and/or present mitigating evidence, which may result in a settlement of the original amount;

(c) Submit evidence indicating an inability to pay the civil penalty;

(d) Request a hearing before an administrative law judge; or

(e) Submit other evidence for consideration.

B. Collection Activity

(1) If a respondent does not respond to the NOV/NPCP, or if the respondent does respond but the parties do not reach a settlement, the APO or TSA counsel issues a Final NOV or a Final NPCP offering the respondent three options, which must be exercised within 15 days of the respondent’s receipt of the Final Notice:

(a) Pay the penalty in full;

(b) Reach a settlement with TSA; or

(c) Request a formal hearing before an administrative law judge.

(2) If the respondent does not respond to the Final Notice within 15 days of receipt, the Final Notice by its terms automatically converts to an Order Assessing a Civil Penalty in the amount proposed in the Final Notice.

(3) If the respondent and TSA reach a settlement, TSA issues a separate Order Assessing a Civil Penalty in the agreed-upon amount.

(4) FINCEN will provide a civil penalty payments spreadsheet to OCC on a weekly basis.

(5) The APO and TSA counsel monitor the weekly FINCEN spreadsheets to track civil penalty payments.

(6) If the penalty remains unpaid after the time for payment specified in the Final Notice or Order Assessing a Civil Penalty, the APO or TSA counsel refers the matter to FINCEN for collection.

(7) FINCEN treats the unpaid penalty as a past due receivable and issues one dunning letter. If the entire penalty amount remains unpaid, FINCEN refers the delinquent debt to the U.S. Department of the Treasury.