REGULATIONS; AUDITS AND ACCOUNTABILITY.

SEC. 805. REGULATIONS; AUDITS AND ACCOUNTABILITY. (a) In General.— Section 47107 is amended by adding at the end the following: “(m) Audit Certification.— “(1) In general.— The Secretary of Transportation, acting through the Administrator of the Federal Aviation Administration, shall promulgate regulations that require a recipient of a project grant (or any other recipient of Federal financial assistance that is provided for an airport) to include as part of an annual audit conducted under sections 7501 through 7505 of title 31, a review and opinion of the review concerning the funding activities with respect to an airport that is the subject of the project grant (or other Federal financial 110 STAT. 3272assistance) and the sponsors, owners, or operators(or other recipients) involved. “(2) Content of review.— A review conducted under paragraph (1) shall provide reasonable assurances that funds paid or transferred to sponsors are paid or transferred in a manner consistent with the applicable requirements of this chapter and any other applicable provision of law (including regulations promulgated by the Secretary or the Administrator). “(3) Requirements for audit report.— The report submitted to the Secretary under this subsection shall include a specific determination and opinion regarding the appropriateness of the disposition of airport funds paid or transferred to a sponsor. “(n) Recovery of Illegally Diverted Funds.— “(1) In general.— Not later than 180 days after the issuance of an audit or any other report that identifies an illegal diversion of airport revenues (as determined under subsections (b) and (1) and section 47133), the Secretary, acting through the Administrator, shall— “(A) review the audit or report; “(B) perform appropriate factfinding; and “(C) conduct a hearing and render a final determination concerning whether the illegal diversion of airport revenues asserted in the audit or report occurred. “(2) Notification.— Upon making such a finding, the Secretary, acting through the Administrator, shall provide written notification to the sponsor and the airport of— “(A) the finding; and “(B) the obligations of the sponsor to reimburse the airport involved under this paragraph. “(3) Administrative action.— The Secretary may withhold any amount from funds that would otherwise be made available to the sponsor, including funds that would otherwise be made available to a State, municipality, or political subdivision thereof (including any multimodal transportation agency or transit authority of which the sponsor is a member entity) as part of an apportionment or grant made available pursuant to this title, if the sponsor— “(A) receives notification that the sponsor is required to reimburse an airport; and “(B) has had an opportunity to reimburse the airport, but has failed to do so. “(4) Civil action.— If a sponsor fails to pay an amount specified under paragraph (3) during the 180-day period beginning on the date of notification and the Secretary is unable to withhold a sufficient amount under paragraph (3), the Secretary, acting through the Administrator, may initiate a civil action under which the sponsor shall be liable for civil penalty in an amount equal to the illegal diversion in question plus interest (as determined under subsection (o)). “(5) Disposition of penalties.— “(A) Amounts withheld.— The Secretary or the Administrator shall transfer any amounts withheld under paragraph (3) to the Airport and Airway Trust Fund. “(B) Civil penalties.— With respect to any amount collected by a court in a civil action under paragraph (4), the court shall cause to be transferred to the Airport and 110 STAT. 3273Airway Trust Fund any amount collected as a civil penalty under paragraph (4). “(6) Reimbursement.— The Secretary, acting through the Administrator, shall, as soon as practicable after any amount is collected from a sponsor under paragraph (4), cause to be transferred from the Airport and Airway Trust Fund to an airport affected by a diversion that is the subject of a civil action under paragraph (4), reimbursement in an amount equal to the amount that has been collected from the sponsor under paragraph (4) (including any amount of interest calculated under subsection (o)). “(7) Statute of limitations.— No person may bring an action for the recovery of funds illegally diverted in violation of this section (as determined under subsections (b) and (1)) or section 47133 after the date that is 6 years after the date on which the diversion occurred. “(o) Interest.— “(1) In general.— Except as provided in paragraph (2), the Secretary, acting through the Administrator, shall charge a minimum annual rate of interest on the amount of any illegal diversion of revenues referred to in subsection (n) in an amount equal to the average investment interest rate for tax and loan accounts of the Department of the Treasury (as determined by the Secretary of the Treasury) for the applicable calendar year, rounded to the nearest whole percentage point. “(2) Adjustment of interest rates.— It, with respect to a calendar quarter, the average investment interest rate for tax and loan accounts of the Department of the Treasury exceeds the average investment interest rate for the immediately preceding calendar quarter, rounded to the nearest whole percentage point, the Secretary of the Treasury may adjust the interest rate charged under this subsection in a manner that reflects that change. “(3) Accural.— Interest assessed under subsection (n) shall accrue from the date of the actual illegal diversion of revenues referred to in subsection (n). “(4) Determination of applicable rate.— The applicable rate of interest charged under paragraph (1) shall— “(A) be the rate in effect on the date on which interest begins to accrue under paragraph (3); and “(B) remain at a rate fixed under subparagraph (A) during the duration of the indebtedness. “(p) Payment by Airport to Sponsor.— If, in the course of an audit or other review conducted under this section, the Secretary or the Administrator determines that an airport owes a sponsor funds as a result of activities conducted by the sponsor or expenditures by the sponsor for the benefit of the airport, interest on that amount shall be determined in the same manner as provided in paragraphs (1) through (4) of subsection (o), except that the amount of any interest assessed under this subsection shall be determined from the date on which the Secretary or the Administrator makes that determination.”. (b) Revision of Policies and Procedures; Deadlines.— (1) In general.— Not later than 90 days after the date of the enactment of this Act, the Secretary, acting through the Administrator, shall revise the policies and procedures established under section 47107(1) of title 49, United States 110 STAT. 3274Code, to take into account the amendments made to that section by this title. (2) Statute of limitations.— Section 47107(1) is amended by adding at the end the following: “(5) Statute of limitations.— In addition to the statute of limitations specified in subsection (n)(7), with respect to project grants made under this chapter— “(A) any request by a sponsor to any airport for additional payments for services conducted off of the airport or for reimbursement for capital contributions or operating expenses shall be filed not later than 6 years after the date on which the expense is incurred; and “(B) any amount of airport funds that are used to make a payment or reimbursement as described in subparagraph (A) after the date specified in that subparagraph shall be considered to be an illegal diversion of airport revenues that is subject to subsection (n).”.