[Federal Register Volume 63, Number 192 (Monday, October 5, 1998)]
[Rules and Regulations]
[Pages 53532-53537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26602]



[[Page 53531]]

_______________________________________________________________________

Part III





Department of Transportation





_______________________________________________________________________



Federal Aviation Administration



_______________________________________________________________________



14 CFR Part 61 et al.



Licensing and Training of Pilots, Flight Instructors, and Ground 
Instructors Outside the United States; Final Rule

  Federal Register / Vol. 63, No. 192 / Monday, October 5, 1998 / Rules 
and Regulations  

[[Page 53532]]



DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 61, 67, 141, and 142

[Docket No. FAA-1998-4518; Amendment Nos. 61-105, 67-18, 141-11 & 142-
3]
RIN 2120-AG66


Licensing and Training of Pilots, Flight Instructors, and Ground 
Instructors Outside the United States

AGENCY: Federal Aviation Administration, DOT.

ACTION: Final rule; request for comments.

-----------------------------------------------------------------------

SUMMARY: This final rule removes language from the Federal Aviation 
Regulations that restricts the licensing of foreign persons outside of 
the United States and that restricts the operation of pilot schools and 
training centers that are located outside of the United States. The 
restrictive language was originally placed in the regulations because 
of administrative concerns that are no longer applicable. The 
restrictive language was identified during harmonization efforts 
currently underway between the Federal Aviation Administration (FAA) 
and the European Joint Aviation Authorities (JAA) as an obstruction to 
harmonization. Failure to harmonize FAA and JAA rules on licensing and 
training could be detrimental to FAA pilot schools and training centers 
that seek to train students from the JAA member states. As part of the 
FAA's commitment to reduce restrictions that are not safety driven and 
to further harmonize our regulations with our European neighbors, the 
FAA is removing this restrictive language.

DATES: This final rule is effective October 5, 1998. Comments must be 
submitted on or before November 4, 1998.

ADDRESSES: Comments on this final rule should be mailed or delivered, 
in duplicate to: U.S. Department of Transportation Dockets, Docket No. 
FAA-98-4518, 400 Seventh Street, SW, Room Plaza 401, Washington, DC 
20590. Comments may also be sent electronically to the following 
Internet address: [email protected]. Comments may be filed and/or 
examined in Room Plaza 401 between 10 a.m. and 5 p.m. weekdays except 
Federal holidays.

FOR FURTHER INFORMATION CONTACT:
Warren Robbins, Certification Branch (AFS-840), General Aviation and 
Commercial Division, Flight Standards Service, Federal Aviation 
Administration, 800 Independence Avenue, SW., Washington, DC 20591; 
telephone (202) 267-8196.

SUPPLEMENTARY INFORMATION: 

Comments Invited

    This final rule is being adopted without prior notice and prior 
public comment. The Regulatory Policies and Procedures of the 
Department of Transportation (DOT) (44 FR 1134; February 26, 1979), 
however, provide that, to the maximum extent possible, operating 
administrations for the DOT should provide an opportunity for public 
comment on regulations issued without prior notice. Accordingly, 
interested persons are invited to participate in this rulemaking by 
submitting such written data, views, or arguments, as they may desire. 
Comments relating to environmental, energy, federalism, or 
international trade impacts that might result from this amendment also 
are invited. Comments must include the regulatory docket or amendment 
number and must be submitted in triplicate to the address above. All 
comments received, as well as a report summarizing each substantive 
public contact with FAA personnel on this rulemaking, will be filed in 
the public docket. The docket is available for public inspection before 
and after the comment closing date.
    The FAA will consider all comments received on or before the 
closing date for comments. Late filed comments will be considered to 
the extent practicable. This final rule may be amended in light of the 
comments received.
    Commenters who want the FAA to acknowledge receipt of their 
comments submitted in response to this final rule must include a 
preaddressed, stamped postcard with those comments on which the 
following statement is made: ``Comments to Docket No. FAA-1998-4518.'' 
The postcard will be date-stamped by the FAA and mailed to the 
commenter.

Availability of Final Rule

    Any person may obtain a copy of this final rule by submitting a 
request to: FAA, Office of Rulemaking, Attention: ARM-1, 800 
Independence Avenue, SW., Washington, DC 20591; or by telephoning (202) 
267-9680. Individuals requesting a copy of this final rule should 
identify their request with the amendment number or docket number.
    An electronic copy of this final rule may be downloaded, by using a 
modem and suitable communications software, from: the FAA regulations 
section of the FedWorld electronic bulletin board service (telephone: 
(703) 321-3339); the Government Printing Office's electronic bulletin 
board service (telephone: (202) 512-1661); or the FAA's Aviation 
Rulemaking Advisory Committee Bulletin Board service (telephone: (202) 
267-5948.
    Internet users may reach the FAA's web page at http://www.faa.gov, 
or the Government Printing Office's web page at http://
www.access.gpo.gov/nara, for access to recently published rulemaking 
documents.

Small Entity Inquiries

    The Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA) requires the FAA to report inquiries from small entities 
concerning information on, and advice about, compliance with statutes 
and regulations within the FAA's jurisdiction, including interpretation 
and application of the law to specific sets of facts supplied by a 
small entity.
    If you are a small entity and have a question, contact your local 
FAA official. If you do not know how to contact your local FAA 
official, you may contact Charlene Brown, Program Analyst Staff, Office 
of Rulemaking, ARM-27, Federal Aviation Administration, 800 
Independence Avenue, SW, Washington, DC 20591, 1-888-551-1594. Internet 
users can find additional information on SBREFA in the ``Quick Jump'' 
section of the FAA's web page at http://www.faa.gov and may send 
electronic inquiries to the

[[Page 53533]]

following Internet address: [email protected].

Background

    Over the past several years, the FAA has been involved in 
harmonization efforts with the JAA and the European Civil Aviation 
Conference (ECAC). During this time, the JAA has been finalizing the 
Joint Aviation Regulations (JAR) on Flight Crew Licensing (FCL), which 
are scheduled to go into effect in July 1999. The development of the 
JAR FCL has led the FAA and JAA to compare and contrast one another's 
pilot licensing and training regulations to determine where 
harmonization would be appropriate. As a result of this harmonization 
effort, the FAA and JAA have identified certain restrictive language in 
the FAA regulations and the JAR FCL. The restrictive language, if not 
removed, provides an obstruction to the harmonization efforts underway 
between the FAA and the JAA.

FAA Restrictions

    The restrictive language in the FAA Regulations concerns the 
licensing and training of foreign pilots outside of the U.S. In 
particular, the FAA regulations do not allow pilot certificates or 
medical certificates to be issued outside of the U.S. to persons who 
are not U.S. citizens or resident aliens of the U.S. (14 CFR 61.2 and 
67.5, respectively). In addition, foreign students may not take the 
practical test for a pilot certificate outside of the U.S. (14 CFR 
61.2). There are a few exceptions to these requirements, but they 
generally apply only to support U.S. concerns (e.g., a certificate may 
be issued when the Administrator finds that the certificate is needed 
for the operation of a U.S.-registered aircraft).
    Also, the FAA regulations do not allow FAA-certificated pilot 
schools to have a base or other facility located outside the U.S. 
unless that base or facility is needed for the training of U.S. 
citizens (14 CFR 141.15). FAA-certificated training centers are allowed 
to be located outside of the U.S., but they are subject to special 
rules that limit what they can offer foreign students (14 CFR section 
142.19). For example, an FAA-certificated training center located 
outside of the U.S. may prepare and recommend foreign applicants, whom 
already hold FAA certificates, only for additional authorizations, 
endorsements, and ratings. An FAA-certificated training center located 
outside of the U.S. may prepare and recommend U.S. applicants, whether 
they already hold an FAA certificate or not, for pilot certificates, 
ratings, authorizations, and endorsements.
    The FAA placed the above restrictive language into the FAA 
regulations in 1982 in response to administrative concerns. 
Specifically, the FAA was concerned with staffing and budgetary 
resources for FAA activity outside of the U.S. Additionally, the FAA 
wanted to encourage foreign governments to develop aeronautical codes 
and administrative capabilities of their own that would permit them to 
conduct their own certification functions.
    Over the past decade and a half, the FAA has expanded its 
international activity and now has the staffing resources overseas to 
address certification and oversight concerns. In addition, in 1980 the 
U.S. Congress passed the International Air Transportation Competition 
Act of 1979, which directed the FAA to collect fees for airman and 
repair station certificates issued outside the U.S. Based on this 
Act,the FAA established fixed fees for the issuance of airman 
certificates to foreign nationals outside of the U.S. (14 CFR part 187, 
appendix A). This fee collection provision has enabled the FAA to 
overcome the budgetary concerns of issuing certificates to foreign 
airman outside of the U.S. Finally, foreign countries have developed 
their own aviation programs, including certification of airman.
    Therefore, after reviewing the purpose and intent of the 
restrictive language, the FAA has determined that the administrative 
concerns that justified placing the geographic limitations into the FAA 
regulations are no longer applicable.

JAA Restrictions

    The restrictive language in the JAR FCL provides, in pertinent 
part, that an applicant for a JAA certificate must receive training 
from a Flying Training Organization (FTO) or Type Rating Training 
Organization (TRTO) approved by a member state of the JAA. No such 
approval will be granted unless the FTO or TRTO principal place of 
business for training and registered office are located in that JAA 
member state, and the FTO or TRTO is owned directly or through majority 
ownership by a JAA member state or a national of a JAA member state or 
both. The JAR FCL does not allow for the crediting of training time 
received from an unapproved FTO or TRTO.
    The JAR FCL also does not allow for the conversion of a non-JAA 
State license to a JAA license unless an arrangement exits between the 
JAA and the non-JAA member state. At this time, there is not an 
arrangement between the FAA and the JAA for conversion of airman 
licenses. Such a conversion arrangement is one area that the FAA and 
JAA are discussing as part of the harmonization efforts. These 
harmonization efforts, however, have become more difficult as a result 
of the geographic restrictions in one another's regulations. The JAA 
has indicated that they may remove the JAR FCL restrictive language 
once the FAA removes the restrictive language in the FAA regulations.

Affect on U.S. Schools

    If the FAA does not remove the restrictive language in the FAA 
regulations discussed above, the JAA will not remove the restrictive 
language in the JAR FCL. Consequently, there could be a potentially 
detrimental affect on FAA-certificated pilot schools and training 
centers that seek to train students from the JAA member states or any 
person interested in obtaining a JAA license. FAA-certificated pilot 
schools and training centers would not meet the geographic or ownership 
requirements necessary to gain JAA approval as an FTO or TRTO. As a 
result, training received at FAA-certificated pilot schools or training 
centers could not be credited toward a JAA license.
    In addition, as discussed above, the JAR FCL provide that a license 
issued by a non-JAA State may be converted to a JAA license only if an 
arrangement exists between the JAA and the non-JAA State. At this time, 
there is not a conversion arrangement between the FAA and the JAA and 
if the JAR FCL restrictive language is not removed the harmonization 
efforts underway may not produce such a conversion arrangement. As a 
result, FAA pilot certificates could not converted to JAA licenses.
    Currently, FAA-certificated pilot schools and training centers 
provide a significant amount of training to individuals from JAA member 
states. If the JAR FCL goes into effect with the restrictive language 
in July 1999, significant economic hardship may be endured by many FAA-
certificated pilot schools and training centers, since students from 
JAA member states would no longer seek FAA certificates or training 
from them.
    Accordingly, the FAA is recommending to the JAA that they remove 
the restrictive language from the JAR FCL before it goes into effect. 
To support this, the FAA must show good faith by removing licensing and 
training restrictions in the FAA regulations that are not safety 
driven. The removal of the restrictive language is urgently needed as 
the implementation date of the JAR FCL is July 1999; the JAA FCL

[[Page 53534]]

Committee will meet in September 1998 to consider amendment of the 
language in the JAR FCL, which goes before the full JAA Committee for 
adoption in October 1998.

Section-by-section Analysis

Part 61  Certification: Pilots, Flight Instructors, and Ground 
Instructors

Section 61.2  Certification of Foreign Pilots, Flight Instructors, and 
Ground Instructors

    This section currently provides that an airman certificate may not 
be issued to a person who is not a citizen of the U.S. or a resident 
alien of the U.S. unless that person passes the appropriate practical 
test within the U.S. There are five exceptions to this restriction for 
specific needs; that is, the certificate must be needed for the 
operation of U.S.-registered aircraft. This section also provides that 
FAA-certificated training centers located outside the U.S. may prepare 
and recommend only U.S. citizens for airman certificates and may only 
issue certificates to U.S. citizens.
    This section was originally established in 1982 (47 FR 35690; 
August 16, 1982) in response to ``the continuous expansion in worldwide 
demand for FAA certification services'' and the ``undue burden [the 
demand was placing] on FAA budgetary and manpower resources.'' These 
administrative concerns, and the potential fear that ``[o]verly free 
exportation of U.S. certificates could deter the development of 
competent, indigenous certification programs,'' convinced the FAA to 
restrict the certification of foreign nationals outside of the U.S. The 
FAA found support for this decision in 49 U.S.C. section 44703(d), 
which gives the Administrator of the FAA the discretion to restrict or 
prohibit the issuance of airman certificates to aliens. In 1996, the 
FAA implemented the new regulations concerning the certification and 
operating rules for FAA-certificated training centers (61 FR 34508; 
July 2, 1996). As part of that rule, section 61.2 was amended to 
provide that FAA-certificated training centers located outside the U.S. 
may prepare and recommend only U.S. citizens for airman certificates 
and may issue certificates only to U.S. citizens. That amendment 
carried forward the policy of the FAA not to issue certificates to 
foreign nationals outside the U.S., and did not consider whether this 
policy was still appropriate.
    The FAA/JAA harmonization effort over the past several years has 
identified this section as one of the obstructions to the harmonization 
efforts.
    As noted in the general discussion above, the FAA has determined 
that the original concerns behind promulgating this section are no 
longer applicable. The FAA has put in place the appropriate resources 
to handle FAA certification services outside the United States, and the 
agency is no longer concerned about creating a disincentive for foreign 
airman certification programs. Accordingly, the FAA is removing this 
section in its entirety and will be reserving this section for future 
needs.

Part 67  Medical Standards and Certification

Section 67.5  Certification of Foreign Airmen

    This section provides that a person who is neither a citizen of the 
U.S., nor a resident alien of the U.S., may not be issued an FAA 
medical certificate outside the U.S. unless the Administrator finds 
that the certificate is needed for the operation of a U.S.-registered 
aircraft.
    This section was established at the same time as 14 CFR 61.2, 
discussed above, in 1982 (47 FR 35690). As stated above, that rule was 
adopted in response to administrative concerns and to encourage foreign 
governments in the development of competent, indigenous airman 
certification programs. As these concerns are no longer applicable, and 
to encourage harmonization with our European neighbors where possible, 
the FAA is removing airman licensing requirements that are not safety 
driven. As a result, the FAA is removing and reserving this section in 
its entirety.

Part 141  Pilot Schools

Section 141.15  Location of Facilities

    This section provides that FAA-certificated pilot schools or 
provisional pilot schools may not have a base or facility located 
outside of the U.S. unless the Administrator finds the location of that 
base or facility is needed for the training of students who are U.S. 
citizens.
    This section was established as part of an overall revision to the 
standards for the certification of FAA-certificated pilot schools in 
1974 (39 FR 20146; June 6, 1974). In the preamble to that rule, the FAA 
stated that the restriction on the location of FAA-certificated pilot 
schools outside the U.S. reflected a long-standing FAA policy that 
merely was being stated in the regulation. The FAA also stated that 
``the purpose of certificated pilot schools is to provide pilot 
training for citizens of the U.S.''
    As previously discussed, this long-standing FAA policy restricting 
the training and certification of foreign nationals outside of the U.S. 
was based mostly on administrative concerns that are no longer 
applicable. In addition, as FAA-certificated pilot schools have been, 
and currently are, providing training to a significant number of 
foreign nationals within the U.S., the purpose of FAA-certificated 
pilot schools has expanded to train both U.S. citizens and foreign 
nationals. For many FAA-certificated pilot schools the training of 
foreign students provides a major source of income.
    The JAA and the ECAC have determined that this section is not only 
a roadblock to harmonization efforts but has encouraged them to place 
similar geographic restrictions in the JAR FCL. As discussed earlier in 
the background section of this preamble, if the JAA maintains the 
restrictive language in the JAR FCL, foreign nationals of JAA member 
states will no longer seek training from FAA-certificated schools as 
that training would not longer be recognized by the JAA. Because the 
FAA has determined that this geographic limitation is no longer 
necessary and is an obstruction to harmonization as indicated by the 
JAA and the ECAC, the FAA is removing and reserving this section in its 
entirely.

Part 142  Training  Centers

Section 142.15 Facilities

    This section primarily addresses the physical characteristics of 
the facilities that a training center is required to provide. The last 
paragraph of this section (14 CFR 142.15(e)), however, provides that a 
training center certificate may be issued to an applicant having a 
business office or training center located outside of the U.S. This 
permissive language in unnecessary since without this provision, it 
would be clear that there are no geographic restrictions in part 142 
for FAA-certificated training centers. The FAA is removing it to avoid 
any possible confusion.

Section 142.17  Satellite Training Centers

    This section provides the requirements that must be met for a 
training center to conduct training at a satellite training center 
located in the U.S. This section was limited to satellite training 
centers located within the United States because the FAA provided 
special rules for training centers located outside the United States 
under 14 CFR section 142.19.
    As discussed below, the FAA is removing section 142.19 in its 
entirety.

[[Page 53535]]

As there will no longer be special rules for FAA-certificated training 
centers located outside of the United States, the FAA is removing the 
limitation in this section that references only satellite training 
centers located within the United States. FAA-certificated training 
centers, whether located within or outside of the United States, that 
want to operate satellite training centers must meet the requirements 
under this section.

Section 142.19  Foreign Training Centers: Special Rules

    This section currently provides that a training center located 
outside of the U.S. is subject to special rules that limit what 
training they can provide to foreign students. As already discussed 
above, an FAA-certificated training center located outside of the 
United States may only prepare and recommend foreign applicants, whom 
already hold FAA certificates, for additional authorizations, 
endorsements, and ratings. An FAA-certificated training center located 
outside of the U.S. may prepare and recommend U.S. applicants, whether 
they already hold an FAA certificate or not, for pilot certificates, 
ratings, authorizations, and endorsements.
    The FAA placed this restrictive language into this section for the 
same reason as that for section 61.2. As discussed above, section 61.2 
was established in response to administrative and potential ``over-
dominance'' concerns that are no longer applicable. Section 142.19 was 
identified as a possible obstruction to harmonization. For the same 
reason the FAA is removing section 61.2, the FAA is removing and 
reserving this section in its entirety.

Good Cause for Immediate Adoption

    Sections 553(b)(3)(B) and 553(d)(3) of the Administrative 
Procedures Act (APA) (5 U.S.C. 553(b)(3)(B) and 553(d)(3)) authorize 
agencies to dispense with certain notice procedures for rules when they 
find ``good cause'' to do so. Under section 553(b)(3)(B), the 
requirements of notice and opportunity for comment do not apply when 
the agency for good cause finds that those procedures are 
``impracticable, unnecessary, or contrary to the public interest.'' 
Section 553(d)(3) allows an agency, upon finding good cause, to make a 
rule effective immediately, thereby avoiding the 30-day delayed 
effective date requirement in section 553.
    The FAA finds that notice and public comment to this final rule are 
impracticable, unnecessary, and contrary to the public interest. The 
provisions in this final rule remove restrictive language affecting the 
licensing and training of foreign pilots outside of the U.S. The 
removal of the restrictive language will not adversely affect the 
licensing and training of U.S. pilots either within or outside of the 
U.S. In addition, as discussed above, the removal of the restrictive 
language will not have a safety impact, because the language was 
adopted to meet administrative concerns that are no longer applicable. 
As a result, the FAA has determined that notice and public comment are 
unnecessary because the FAA believes that the public will not be 
interested in this rulemaking.
    The FAA has determined that there is a need to remove the 
restrictive language immediately, to provide an inducement for the JAA 
to consider removing its restrictions on licensing and training. 
Without this reciprocal JAA action, there could be economic losses the 
FAA-certificated pilot schools and training centers that seek to 
continue to train foreign students from the JAA member states, both 
inside and outside of the U.S. As discussed earlier, the JAR FCL 
restrictive language will not allow an individual to convert an FAA 
pilot license, absent an arrangement between the JAA and the FAA, or to 
receive credit for flight training unless it is received from an JAA-
approved FTO or TRTO. Currently, there is no arrangement between the 
FAA and the JAA for conversion of certificates and FAA-certificated 
pilot schools and training centers do not meet the requirements for JAA 
approval.
    The JAA has indicated that they may remove the JAR FCL restrictive 
language if the FAA removes the restrictive language in the FAA 
regulations. As discussed earlier, the JAA will be making final 
decisions regarding any amendments to the language of the JAR FCL in 
the very near future. Therefore while notice and comment on this 
amendment are unnecessary, they are also impracticable.

Regulatory Evaluation

    Executive Order 12866, ``Regulatory Planning and Review,'' dated 
September 30, 1993, directs the Federal agencies to promulgate new 
regulations or modify existing regulations only if benefits to society 
for each regulatory change outweigh potential costs. The order also 
requires the preparation of an economic analysis of all ``significant 
regulatory actions'' except those responding to emergency situations or 
other narrowly defined exigencies.
    The FAA has determined that this final rule is not significant 
under Executive Order 12866 or the Regulatory Policies and Procedures 
of the Department of Transportation (DOT) (44 FR 11034; February 26, 
1979). The Regulatory Policies and Procedures of the DOT require, for 
non-significant rulemakings, the preparation of a regulatory evaluation 
that analyzes the economic consequences of the regulatory action. This 
section contains the full regulatory evaluation prepared by the FAA 
that provides information on the economic consequences of this 
regulatory action. In addition to the regulatory evaluation, this 
section also contains a regulatory flexibility determination required 
by the 1980 Regulatory Flexibility Act (5 U.S.C. 601 et seq.) and an 
international trade impact assessment. Accordingly, the FAA makes the 
following economic evaluation of this final rule.
    This final rule merely removes language from the Federal Aviation 
Regulations that restricts the licensing of foreign persons outside of 
the U.S. and that restricts the operation of FAA-certificated pilot 
schools and training centers that are located outside of the U.S. The 
restrictive language was originally placed in the regulations because 
of administrative concerns that are no longer applicable. The 
restrictive language was identified during harmonization efforts 
currently underway between the FAA and the JAA as an obstruction to 
harmonization and as potentially detrimental to FAA-certificated pilot 
schools and training centers that seek to train students from the JAA 
member states. As part of the FAA's commitment to reduce restrictions 
that are not safety driven and to further harmonize our regulations 
with our European neighbors, the FAA is removing the above restrictive 
language.

Cost-benefit Analysis

    This final rule does not change the training or certification 
requirements for obtaining FAA certificates, it only removes geographic 
limitations on where the training and certification of foreign 
nationals may be given. This final rule does not affect the training 
and certification of U.S. citizens either within or outside of the 
United States. As a result, this final rule does not, in economic 
terms, alter the process of training and certification for pilots, 
flight instructors, and ground instructors. Accordingly, the FAA has 
determined that there are no economic costs associated with this final 
rule.
    An expected benefit of the proposed rule is continuation of 
existing international trade with respect to the provision of pilot 
training by U.S

[[Page 53536]]

companies. As discussed in the background section of this preamble, the 
FAA is concerned about the JAR FCL language that would not allow for 
the crediting of training time received from unapproved FTOs or TRTOs, 
namely FAA-certificated pilot schools or training centers. FAA-
certificated pilot schools and training centers currently provide 
training to a significant number of individuals from JAA member states. 
If the JAR FCL goes into effect in July 1999, significant economic 
hardship may be endured by many FAA-certificated pilot schools and 
training centers as students from JAA member states would no longer 
seek training from them. Further, foreign students that come to the 
U.S. for flight training provide indirect benefits; they inject money 
above and beyond tuition costs into the U.S. economy. The FAA is 
recommending to the JAA that they remove the restrictive language from 
the JAR FCL. To support this, the FAA must show good faith by removing 
licensing and training restrictions in the FAA regulations that are not 
safety driven. Therefore, the FAA has determined that the failure to 
implement this final rule will result indirectly in economic losses to 
FAA-certificated pilot schools and training centers and the U.S. 
economy.

Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 establishes ``as a principle 
of regulatory issuance that agencies shall endeavor, consistent with 
the objective of the rule and of applicable statutes, to fit regulatory 
and informational requirements to the scale of the business, 
organizations, and governmental jurisdictions subject to regulation.'' 
To achieve that principle, the Act requires agencies to solicit and 
consider flexible regulatory proposals and to explain the rationale for 
their actions. The Act covers a wide range of small entities, including 
small businesses, not-for-profit organizations and small government 
jurisdictions.
    Agencies must perform a review to determine whether a proposed or 
final rule will have a significant economic impact on a substantial 
number of small entities. If the determination is that it will, the 
agency must prepare a regulatory flexibility analysis (RFA) as 
described in the Act.
    However, if an agency determines that a proposed or final rule is 
not expected to have a significant economic impact on a substantial 
number of small entities, section 605(b) of the 1980 Act provides that 
the head of the agency may so certify and an RFA is not required. The 
certification must include a statement providing the factual basis for 
this determination, and the reasoning should be clear.
    The FAA conducted the required review of this final rule and 
determined that it will not have a significant economic impact, 
positive or negative, on a substantial number of small entities. This 
final rule, while it does affect FAA-certificated pilot schools and 
training centers, does not impose any cost on them. This final rule 
merely removes geographic limitations on FAA-certificated pilot schools 
and training centers for the training and certification of foreign 
nationals outside of the United States. Accordingly, pursuant to the 
Regulatory Flexibility Act, 5 U.S.C. 605(b), the FAA certifies that 
this final rule will not have a significant impact on a substantial 
number of small entities. The FAA solicits comments from the public 
regarding this determination.

International Trade Impact Analysis

    The Office of Management and Budget (OMB) requires Federal agencies 
to determine whether any rule or regulation will have an impact on 
international trade. The FAA has determined that this final rule will 
affect the operations of businesses involved in the sale of aviation 
services, specifically, FAA-certificated pilot schools and training 
centers. It affects FAA-certificated pilot schools and training centers 
by removing restrictive language that placed geographic limitations on 
where they could be located and on what training and certification they 
could provide to foreign nationals outside of the U.S. The FAA has 
determined that this final rule promotes international trade. While the 
FAA believes that this final rule will promote international trade, the 
more tangible benefit of this final rule will be the enhancement of 
harmonization efforts currently underway between the FAA and the JAA.

Federalism Implications

    This final rule will not have a substantial direct effect on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 12612, it is determined that this final rule will not have 
sufficient federalism implications to warrant the preparation of a 
Federalism Assessment.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (Pub. L. 
104-13 (May 22, 1995)), there are no requirements for information 
collection associated with this final rule.

Unfunded Mandates Reform Act Assessment

    In accordance with the Unfunded Mandates Reform Act of 1995 Pub. L. 
104-4 (March 22, 1995)), there are no Federal mandates in this final 
rule that meet the required cost threshold.

List of Subjects

14 CFR Part 61

    Airmen, Certification, Flight instructors, Foreign airmen, Ground 
instructors, Pilots, Students, Training.

14 CFR Part 67

    Airmen, Certification, Foreign airmen, Medical certification.

14 CFR Part 141

    Airmen, Certification, Educational facilities, Flight instructors, 
Foreign students, Ground instructors, Pilots, Schools, Students, 
Training.

14 CFR Part 142

    Airmen, Certification, Educational facilities, Foreign students, 
Instructors, Pilots, Schools, Students, Training.

The Amendments

    In consideration of the foregoing the Federal Aviation 
Administration amends Chapter I of Title 14 Code of Federal Regulations 
as follows:

PART 61--CERTIFICATION: PILOTS, FLIGHT INSTRUCTORS, AND GROUND 
INSTRUCTORS

    1. The authority citation for part 61 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44703, 44709-44711, 
45102-45103, 45301-45302.


Sec. 61.2  [Removed]

    2. Remove Sec. 61.2.

PART 67--MEDICAL STANDARDS AND CERTIFICATION

    3. The authority citation for part 67 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44703, 44707, 44709-
44711, 45102-45103, 45301-45303.


Sec. 67.5.  [Removed]

    4. Remove Sec. 67.5

PART 141--PILOT SCHOOLS

    5. The authority citation for part 141 continues to read as 
follows:

    Authority: 49 U.S.C. 106(g), 40113, 44701-44703, 44707, 44709-
44711, 45102-45103, 45301-45302.

[[Page 53537]]

Sec. 141.15  [Removed]

    6. Remove Sec. 141.15

PART 142--TRAINING CENTERS

    7. The authority citation for part 142 continues to read as 
follows:

    Authority: 49 U.S.C. 106(g), 40113, 40119, 44101, 44701-44703, 
44705, 44707, 44709-44711, 45102-45103, 45301-45302.


Sec. 142.15  [Amended]

    8. In Sec. 142.15, remove paragraph (e).
    9. Section 142.17 is amended by revising paragraph (a) introductory 
text to read as follows:


Sec. 142.17  Satellite training centers.

    (a) The holder of a training center certificate may conduct 
training in accordance with an approved training program at a satellite 
training center if--
* * * * *


Sec. 142.19  [Removed]

    10. Remove Sec. 142.19.

    Issued in Washington, DC, on September 30, 1998.
Jane F. Garvey,
Administrator.
[FR Doc. 98-26602 Filed 10-2-98; 8:45 am]
BILLING CODE 4910-13-M