The Omnibus Budget Reconciliation Act of 1993 (the fees legislation)  directed the Park Service to establish air tour fees by October 1, 1993. Congress directed FAA and the  Park Service to work together to regulate air tours over park units in the  National Parks Overflights Act of 1987 (Grand Canyon Act) and the  National Parks Air Tour Management Act of 2000 (Air Tour Management  Act). Largely through Voluntary Compliance, the Park Service Has Collected Some, but Not All, Air Tour Fees at Three Park Units

The Park Service, relying largely on voluntary compliance, has collected  some, but not all, air tour fees from air tour operators at Grand Canyon,  Haleakala, and Hawaii Volcanoes. However, voluntary compliance with the air tour fee requirement has been  inconsistent across the three park units, and several operators are not  paying the required fees. For example, we found that 13 of the 21 air tour  operators that conducted air tours over Grand Canyon from May 2000  through December 2003, underpaid their air tour fees by more than $1.5  million. The Park Service Cannot Verify Air Tour Activity Over the Three Park Units

The Park Service is unable to verify the number of air tours that operators  conduct over Grand Canyon, Haleakala, and Hawaii Volcanoes, thus  limiting the agency’s ability to ensure that operators are making all the  required payments. Except for Grand Canyon, current laws and regulations  do not require air tour operators to record and report their air tour activity  over national park units to either the Park Service or FAA. Consequently, the Park Service relies on air tour operators to voluntarily  report all their air tours and pay the required fees. The Park Service Cannot Effectively Enforce Compliance Due to the Lack of Air Tour Data

The Park Service—the agency charged with collecting air tour fees—has  limited ability to enforce compliance because it does not have jurisdiction  over airspace and lacks sufficient air tour data. Conversely, FAA—the  agency with authority over airspace and air tour operators—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 us the  agencies currently 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 Air Tour Management Act and/or their  respective implementing guidelines and regulations have different  geographic applicability, which complicates the Park Service’s efforts to  collect air tour fees. As a result, only one additional park  unit, Hawaii Volcanoes, has qualified to charge fees in the past 12 years. 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 any potential impacts on  air tour operators. Recommendations for Executive Action

In order to improve compliance with air tour fee payments and to help  understand the impacts of such fees on air tour operators’ businesses, we  recommend that the Secretary of Transportation direct the Administrator  of FAA to take the following two actions:  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. We then adjusted these  figures to express them in inflation-adjusted 2005 dollars. To identify what factors hinder the collection of air tour fees, and to  provide information on the possible expansion of air tour fees to additional  park units, we considered the results of our January 2006 report,  particularly the sections on the lack of data on air tour activity over park  units and the Park Service’s not funding its share of the cost of developing  air tour management plans.
Why GAO Did This Study

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.

What GAO Found

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.