[Federal Register Volume 72, Number 3 (Friday, January 5, 2007)]
[Proposed Rules]
[Pages 489-497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-9989]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 47, 61, 63, and 65

[Docket No. FAA-2006-26714; Notice No. 06-21]
RIN 2120-AI43


Drug Enforcement Assistance

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA is proposing changes to its airmen certification and 
aircraft registration requirements. Two years after the final rule 
becomes effective, paper pilot certificates may no longer be used to 
exercise piloting privileges. Five years after the final rule becomes 
effective, certain other paper airmen certificates, such as those of 
flight engineers and mechanics, may no longer be used to exercise the 
privileges authorized by those certificates. To exercise the privileges 
after those respective dates, the airmen would have to hold upgraded, 
counterfeit-resistant plastic certificates. Student pilots would not be 
affected. In addition, those who transfer ownership of U.S.-registered 
aircraft would have five days from the transaction to notify the FAA 
Aircraft Registry. Those who apply for aircraft registration would have 
to include their printed or typed name with their signature. These 
changes are responsive to concerns raised in the FAA Drug Enforcement 
Assistance Act. The purpose of the changes is to upgrade the quality of 
data and documents to assist Federal, State, and local agencies to 
enforce the Nation's drug laws.

DATES: Send your comments to reach us by March 6, 2007.

ADDRESSES: You may send comments, identified by Docket Number FAA-2006-
, using any of the following methods:
     DOT Docket Web site: Go to  http://dms.dot.gov and follow 
the instructions for sending your comments electronically.
     Government-wide rulemaking Web site: Go to http://www.regulations.gov and follow the instructions for sending your 
comments electronically.
     Mail: Docket Management Facility, U.S. Department of 
Transportation, 400 Seventh Street, SW., Nassif Building, Room PL-401, 
Washington, DC 20590-001. Note that mail delivery may be delayed due to 
security concerns.
     Fax: 1-202-493-2251.
     Hand Delivery: Room PL-401 on the plaza level of the 
Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.
    For more information on the rulemaking process, see the 
SUPPLEMENTARY INFORMATION section of this document.
    Privacy: We will post all comments we receive, without change, to 
http://dms.dot.gov, including any personal information you provide. For 
more information, see the Privacy Act discussion in the SUPPLEMENTARY 
INFORMATION section of this document.
    Docket: To read background documents or comments received, go to 
http://dms.dot.gov at any time or to Room PL-401 on the plaza level of 
the Nassif Building, 400 Seventh Street, SW., Washington, DC, between 9 
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: Mark D. Lash, Civil Aviation Registry, 
Mike Monroney Aeronautical Center, 6500 South MacArthur Boulevard, 
Oklahoma City, OK 73169, telephone (405) 954-4331.

SUPPLEMENTARY INFORMATION:

Comments Invited

    The FAA invites interested persons to participate in this 
rulemaking by submitting written comments, data, or views. We also 
invite comments relating to the economic, environmental, energy, or 
federalism impacts that might result from adopting the proposals in 
this document. The most helpful comments reference a specific portion 
of the proposal, explain the reason for any recommended change, and 
include supporting data. Please include the regulatory docket or 
amendment number on your comments, and if you mail or hand deliver your 
comments, send two copies. We will file all comments received, as well 
as a report summarizing each substantive public contact with FAA 
personnel on this rulemaking, in the public docket. The docket is 
available for public inspection before and after the comment closing 
date.
    Privacy Act: Using the search function of our docket Web site, 
anyone can find and read the comments received into any of our dockets, 
including the name of the individual sending the comment (or signing 
the comment on behalf of an association, business, labor union, etc.). 
You may review DOT's complete Privacy Act Statement in the Federal 
Register published on April 11, 2000 (65 FR 19477-78) or you may visit  
http://dms.dot.gov.
    Before acting on this proposal, we will consider all comments we 
receive on or before the closing date for comments. We will consider 
comments filed late if it is possible to do so without incurring 
expense or delay. We may change this proposal in light of the comments 
we receive.
    If you mail your comments and want the FAA to acknowledge receipt 
of the comments, you must include with your comments a preaddressed, 
stamped postcard on which the following statement is made: ``Comments 
to Docket No. FAA-2006-26714.'' We will date stamp the postcard and 
mail it to you.

[[Page 490]]

Proprietary or Confidential Business Information

    Do not file in the docket information that you consider to be 
proprietary or confidential business information. Send or deliver this 
information directly to the person identified in the FOR FURTHER 
INFORMATION CONTACT section of this document. You must mark the 
information that you consider proprietary or confidential. If you send 
the information on a disk or CD-ROM, mark the outside of the disk or 
CD-ROM and also identify electronically within the disk or CD-ROM the 
specific information that is proprietary or confidential.
    Under 14 CFR 11.35(b), when we are aware of proprietary information 
filed with a comment, we do not place it in the docket. We hold it in a 
separate file to which the public does not have access and place a note 
in the docket that we have received it. If we receive a request to 
examine or copy this information, we treat it as any other request 
under the Freedom of Information Act (5 U.S.C. 552). We process each 
request to examine or copy information marked as proprietary or 
confidential under the DOT procedures found in 49 CFR part 7.

Availability of Rulemaking Documents

    You can get an electronic copy of this NPRM using the Internet by:
    (1) Searching the Department of Transportation's electronic Docket 
Management System (DMS) Web page (http://dms.dot.gov/search);
    (2) Visiting the Office of Rulemaking's Web page at http://www.faa.gov/avr/arm/index.cfm; or
    (3) Accessing the Government Printing Office's Web page at http://www.gpoaccess.gov/fr/index.html.
    You can also get a copy by sending a request to the Federal 
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence 
Avenue SW., Washington, DC 20591, or by calling (202) 267-9680. Make 
sure to identify the docket number, notice number, or amendment number 
of this rulemaking.

Background

    On March 12, 1990, the FAA published a Notice of Proposed 
Rulemaking (NPRM) in the Federal Register (55 FR 9270). The NPRM 
proposed changes to certain requirements concerning registration of 
aircraft, certification of pilots, and penalties for registration and 
certification violations. The NPRM also announced non-rulemaking 
procedural changes. We intended the changes to correct deficiencies in 
our systems and procedures identified in the FAA Drug Enforcement 
Assistance Act of 1988 (Pub. L. 100-690) (hereafter, ``the Act''). The 
Act amended FAA's authorizing legislation (49 U.S.C. 40101 et seq.) 
to--
     Declare that it is FAA policy to assist law enforcement 
agencies in the enforcement of laws that regulate controlled 
substances, to the extent consistent with aviation safety;
     Modify the aircraft registration system to more 
effectively serve the needs of buyers and sellers of aircraft, drug 
enforcement officials, and other users of the system;
     Modify the pilot certification system to more effectively 
serve the needs of pilots and drug enforcement officials;
     Modify the system for processing major repair and 
alterations of fuel tanks and fuel systems on aircraft, to more 
effectively serve users of the system, including drug enforcement 
officials;
     Establish and collect the fees necessary to cover the 
costs of issuing aircraft registration certificates, issuing airman 
certificates for pilots, and processing forms for major repairs and 
alterations of fuel tanks and fuel systems of aircraft;
     Pursue civil actions and assess civil penalties for 
violations of the regulations governing registering aircraft and 
recording aircraft title documents; and
     Create criminal penalties for forgery of airman 
certificates, false marking of aircraft, and other aircraft 
registration violations and to make it unlawful for any person to 
knowingly and willingly operate an aircraft in violation of any 
requirement for display of navigation or anti-collision lights.
    The comment period closed on May 11, 1990. We received 373 
comments, very few of which expressed support for the proposed changes. 
For the most part, commenters believed that the proposed changes would 
impose burdens only on law-abiding citizens, while criminals would 
simply circumvent them. As a result, FAA decided to delay the 
rulemaking process to assess whether specific technological 
improvements to the FAA Civil Aviation Registry (the Registry) could 
meet the intent of the Act. We believe we have now fulfilled most 
requirements of the Act through changes to systems and procedures used 
by the Registry. For this reason, we have withdrawn the 1990 NPRM in 
its entirety. Readers interested in the specific actions we have taken 
to fulfill the requirements of the Act should refer to the notice 
withdrawing the 1990 NPRM (70 FR 72403, Dec. 5, 2005).
    To complete our obligations under the Act, we are proposing to 
address two deficiencies noted in the Act and not fully addressed 
through changes made to the Registry. The first issue concerns the 
proper identification of pilots. Law enforcement agencies must be able 
to establish the true identity of those who hold pilot certificates. 
The second issue concerns the timely reporting of aircraft sales or 
other transfers of ownership. Law enforcement agencies must be able to 
determine who is the owner of an aircraft, particularly when ownership 
of the aircraft has recently been transferred. Later in this preamble, 
we describe the specific changes we are proposing to address these 
issues.

Related Rulemaking Activities

    The FAA has two ongoing rulemaking activities that relate to airmen 
certificates and aircraft registration. This NPRM would bring closure 
to FAA actions related to the FAA Drug Enforcement Assistance Act. The 
second NPRM will address requirements of the Intelligence Reform and 
Terrorism Prevention Act of 2004 (Pub. L. 108-458). While both cover 
issues concerning airmen certificates and aircraft registration, they 
are each driven by different requirements and circumstances.
    During the process of preparing this NPRM for publication in late 
2004, Congress passed the Intelligence Reform and Terrorism Prevention 
Act of 2004. Section 4022 (Improved Pilot Licenses) of that Act 
requires pilots' certificates be resistant to tampering, alteration, 
and counterfeiting. The FAA began issuing plastic certificates in July 
2003 that are resistant to tampering, alteration, and counterfeiting. 
This NPRM would establish dates by which paper certificates may not be 
used to exercise the privileges authorized by the certificates. This 
will allow the FAA to also meet the first requirement of the 
Intelligence Reform Act and increase the security of airman 
certificates in a timely manner.
    The Intelligence Reform Act also requires the inclusion of a 
photograph on pilots' certificates. The FAA is currently working on an 
NPRM that would establish the regulations and procedures necessary to 
implement this requirement. We expect to publish the NPRM in the near 
future. We have already completed a prototype for inclusion of a 
photograph on an airmen's certificate.
    While this NPRM completes action by the FAA on the FAA Drug 
Enforcement Assistance Act, the FAA is continuing to evaluate other 
changes to improve data quality of the Registry, possibly

[[Page 491]]

including periodic registration of aircraft. In a post-9/11 
environment, there are important benefits that would result from a more 
up-to-date and accurate Registry.

Pilot Identification and Certification

    Under our authorizing legislation, the FAA must issue an ``airman 
certificate'' to an individual when we find that the individual is 
qualified for, and physically able to perform the duties related to, 
the position authorized by the certificate. See 49 U.S.C. 44703. 
Sometimes people think of a pilot certificate when the words ``airmen 
certificate'' are used, even though there are many other categories of 
airmen. In this preamble, we use the term ``airman certificate'' to 
refer generally to all those who hold airmen certificates, including 
pilots, flight crewmembers other than pilots (such as flight 
engineers), and airmen other than flight crewmembers (such as air 
traffic control tower operators and mechanics). When we use the term 
``pilot certificate'' in this preamble, we are referring only to 
pilots, not to student pilots, flight instructors, flight engineers, or 
ground instructors who are also regulated under part 61 of Title 14 of 
the Code of Federal Regulations (14 CFR part 61). The airman 
certificate must--
     Contain the name, address, and description of the 
individual to whom the certificate is issued;
     Contain any necessary terms, conditions, and limitations; 
and
     Specify the capacity in which the holder of the 
certificate may serve as an airman with respect to an aircraft.
    The current regulations and procedures for getting an airman 
certificate usually require that an applicant pass both a knowledge 
test and a flight or practical test. The applicant sends the 
application and supporting documents to an FAA designee, who in turn 
sends the application to an FAA Flight Standards District Office for 
review. Alternatively, the applicant may appear before an FAA inspector 
in the District Office. The District Office forwards the documents to 
the Registry where the documents are reviewed for compliance with the 
regulations. If the Registry accepts the documents, it issues the 
airman certificate and mails it to the applicant.
    The FAA Drug Enforcement Assistance Act amended section 44703 to 
direct the FAA to modify the system for issuing airman certificates to 
pilots to make the system more effective in serving the needs of pilots 
and officials responsible for enforcement of laws relating to the 
regulation of controlled substances. The Act identified a number of 
deficiencies and abuses that the modifications must address, including 
the use of counterfeit and stolen airman certificates by pilots and the 
submission of unidentifiable names of individuals on applications for 
registration of aircraft. The Act also amended section 44703 to require 
the FAA to prescribe regulations to address the abuses and 
deficiencies.
    In 2002, the FAA revised the pilot certificate requirements of part 
61 to require a person to carry photo identification when exercising 
the privileges of the pilot certificate and to present photo 
identification when requested by law enforcement officials. See 67 FR 
65858, October 28, 2002. These changes address security and law 
enforcement concerns regarding the identification of pilots. Also, in 
July 2003, the FAA discontinued issuing paper airman certificates and 
began issuing airman certificates that incorporate a number of security 
features. The new certificates are made of high-quality plastic card 
stock and include micro printing, a hologram, and an ultraviolet-
sensitive layer that contains certain words and phrases. These new 
certificates greatly reduce the ability to create counterfeit airman 
certificates.
    As far as airman certificates issued since July 2003 are concerned, 
these measures address the problem of counterfeit and stolen airman 
certificates. However, there is no requirement that a holder of a paper 
airman certificate get a new plastic certificate. So the outstanding 
paper certificates are all subject to a higher risk of counterfeiting 
for the foreseeable future. If there were a requirement for a holder of 
a paper certificate to periodically get a re-issued certificate, such 
as is the case with driver's licenses issued by most States, the 
problem of potential counterfeiting would gradually diminish over time. 
However, there is currently no reissuance requirement for most airman 
certificates.
    For this reason, the FAA is proposing that the holder of a paper 
pilot certificate may not exercise the privileges of the paper 
certificate after two years from the date of adoption of the final 
rule. After the two-year period, only an FAA-issued plastic pilot 
certificate may be used to exercise piloting privileges. The proposal 
would not revoke or otherwise cancel a paper certificate. It would 
simply require the pilot to have the plastic certificate to exercise 
the attendant privileges.
    We believe that two years is a reasonable time to allow for the 
replacement of pilot certificates by those who want to act as a pilot 
after the two-year period without interruption. (A person may apply for 
a plastic certificate after the two-year period, but he or she would 
not be able to exercise piloting privileges until he or she obtained 
the plastic certificate.) We are assuming that applications for the 
plastic replacement certificate would be evenly spread out through the 
two-year period. If all pilots waited until close to the end of the 
two-year period to apply for the replacement certificate, there would 
undoubtedly be delays in processing and receipt of the new certificate. 
The two-year period balances our ability to receive and process 
applications for replacement certificates, to maintain our existing 
range of services, and to reduce the risk of counterfeiting of paper 
certificates.
    To effect this change, we are proposing to add new 14 CFR 61.19(h), 
titled, ``Duration of pilot certificates.'' Readers should note that 
the NPRM would not require a holder of a paper pilot certificate to 
surrender the certificate when getting the new plastic certificate. The 
paper certificate would not authorize the holder to exercise piloting 
privileges, but those who wish to retain it may do so. The fee for 
replacing an existing paper certificate would be $2.00. This nominal 
fee would defray part of the Registry's cost of replacing the 
approximately 440,000 existing paper pilot certificates. At the same 
time, the $2.00 fee would not be an undue burden on individuals. The 
NPRM would not apply to student pilot certificates or flight instructor 
certificates. Under existing regulations, these certificates expire 24 
calendar months from the month in which they are issued or renewed. See 
14 CFR 61.19(b) and (d).
    We are also proposing that ground instructors, flight crewmembers 
other than pilots (regulated under 14 CFR part 63) and airmen other 
than flight crewmembers (regulated under 14 CFR part 65) who hold paper 
airmen certificates may not exercise the privileges of the paper 
certificates after five years from the effective date of the final 
rule. After the five-year period, only an FAA-issued plastic airmen 
certificate could be used to exercise these privileges. The proposal 
would not revoke or otherwise cancel a paper certificate. It would 
simply require the airman to have the plastic certificate to exercise 
the attendant privileges.
    Although the FAA Drug Enforcement Assistance Act only addressed 
pilot certificates, we are proposing a parallel change for these other 
airmen certificates under the FAA's general rulemaking authority. 
Ground instructors and part 63 and part 65

[[Page 492]]

airmen play an essential role in the functioning of the civil aviation 
system. We would be remiss if we did not also seek to address any 
potential problems associated with accurate identification of these 
airman certificate holders. A mechanic or flight engineer would have 
access to aircraft and have opportunities to participate in drug 
smuggling activities, such as concealment of drugs on the aircraft.
    To effect these changes, we are proposing to revise existing 14 CFR 
61.19(e) and add new 14 CFR 63.15(d) and 65.15(d). As is the case with 
pilot certificates, replacement of these certificates would cost the 
holder $2.00. To make the replacement process as quick and easy as 
possible, the Registry has recently set up a system that allows a 
certificate holder to request a replacement certificate using the 
Internet. Certificate holders may access this system by going to the 
following address: https://amsrvs.registry.faa.gov/amsrvs.

Aircraft Registration

    Under the FAA's authorizing legislation, a person may operate an 
aircraft in the United States only when the aircraft is registered 
under 49 U.S.C. 44103, with three exceptions. One exception allows 
operation of an aircraft for a reasonable period of time after transfer 
of ownership until the new owner completes the registration process. 
See 49 U.S.C. 44101(b)(3).
    The current regulations for aircraft registration (14 CFR part 47) 
require an aircraft seller to fill in the reverse side of the aircraft 
registration certificate with the name and address of the buyer and 
return it to the Registry in Oklahoma City. To operate the newly 
purchased U.S. civil aircraft, the buyer must complete an application 
for aircraft registration and send it with evidence of ownership, such 
as a bill of sale, to the Registry (Sec.  47.31(a)). Once the Registry 
examines the application and supporting documents for legibility and 
compliance with part 47, it issues an aircraft registration certificate 
to the new owner. It typically takes 30 to 40 days to issue an aircraft 
registration certificate if there are no complications. During this 
review period (or for up to 90 days), the buyer may operate the 
aircraft under temporary authority by retaining a duplicate copy of the 
registration application--the so-called ``pink slip.'' The buyer must 
carry the pink slip in the aircraft as evidence of temporary authority 
to operate the aircraft without a certificate of registration. The 
buyer can take advantage of this temporary operating authority only 
after sending the aircraft registration package to the Registry (Sec.  
47.31(b)). The current requirements, including the ability to operate 
an aircraft under temporary authority based on the pink slip, were 
established to provide a smooth transfer of ownership that would not 
unduly restrict operation of the aircraft during processing of an 
application for registration.
    The Act authorizes the FAA to modify the system for registering and 
recording conveyances to make the system more effective in serving the 
needs of buyers and sellers of aircraft and of officials responsible 
for enforcement of laws relating to the regulation of controlled 
substances. See 49 U.S.C. 44111. The Act identified a number of 
deficiencies and abuses that the modifications must address, including 
the practice of allowing temporary operation and navigation of aircraft 
without issuance of a certificate of registration and submission of 
unidentifiable names of individuals on applications for registration of 
aircraft. The Act also authorized the FAA to prescribe regulations to 
address the abuses and deficiencies.
    The FAA has taken a number of steps to address the period after 
sale or transfer of ownership and before application is made for 
registration. A document index is now available on-line at the Registry 
Web site (http://registry.faa.gov) or through an inquiry to the FAA Law 
Enforcement Assistance Program. The index, which is updated daily, 
tells whether the Registry has received documents related to a specific 
aircraft. The FAA Law Enforcement Assistance Program can retrieve all 
documents associated with an aircraft in a matter of minutes. If there 
is any question as to the ownership of an aircraft, the documents can 
be forwarded to the appropriate law enforcement organization.
    If law enforcement personnel are questioning the operator of an 
aircraft who is using a pink slip, they can check the document index to 
determine if documents have been received for that aircraft. If no 
documents are shown in the index, then there is increased likelihood 
the aircraft is being operated in an unauthorized manner. Also, the 
entire aircraft registry database is available on-line at the Registry 
Web site. When an aircraft is sold, the seller must notify the Registry 
of the sale, and the Registry identifies the aircraft as ``sale 
reported'' until it processes the buyer's registration application. The 
Registry updates this information daily. Anyone can check an aircraft's 
registration through the Registry Web site to see if the aircraft is 
identified as ``sale reported.'' The Registry contains over 25 million 
pages of aircraft information in digital format.
    Our current regulations at 14 CFR 47.31(a) require each applicant 
for aircraft registration to send the registration application to the 
Registry. Paragraph (b) of the same section allows the applicant to 
carry the pink slip in the aircraft as temporary authority to operate 
it after complying with paragraph (a). (Emphasis added.) To use the 
pink slip as temporary operating authority, the aircraft operator must 
have already sent the registration application to the Registry. It is 
not legal to operate the aircraft under a pink slip if the operator has 
not sent the registration application to the Registry.
    In spite of current regulatory requirements and the administrative 
actions we have taken, as outlined above, we still have a concern about 
the accuracy of ownership information contained in the Registry. Those 
who transfer ownership of U.S.-registered aircraft may not be notifying 
the Registry of the transfer in a timely fashion. The effectiveness of 
the Registry's document index and aircraft registry database depends on 
the accuracy and timeliness of the information they contain. If a law 
enforcement agency investigating an aircraft goes to the index or the 
database for ownership information, and the information does not 
reflect a recent transfer of ownership, the investigation may be 
stymied or delayed. For this reason, we are proposing an amendment to 
14 CFR 47.41(b) that would require the person selling, or otherwise 
transferring ownership of, a U.S.-registered aircraft to return the 
certificate of aircraft registration to the Registry within five days 
of sale or transfer.
    We believe that five days is a reasonable amount of time to 
complete the reverse side of the certificate and send it to the 
Registry. It achieves a balance between our need to have accurate, up-
to-date information in the Registry for the use of law enforcement 
agencies and our desire not to unduly burden individuals. We 
specifically request comments from the public, particularly owners of 
U.S.-registered aircraft, concerning whether this is a reasonable time 
frame.
    To address the problem of the submission of illegible names of 
individuals on applications for registration of aircraft, we are 
proposing to require each applicant to provide a printed or typed name 
with his or her signature. The Registry has already included this 
requirement in the instructions for completing the aircraft 
registration application. We are

[[Page 493]]

proposing to add it to our regulations to bolster our authority to 
reject applications that contain illegible names. To effect this 
change, we are modifying a previously undesignated portion of 14 CFR 
47.31 that appears between existing paragraphs (a) and (b). Currently, 
the FAA rejects an application if it is not completed or if the name 
and signature on the application are not the same throughout. Under 
this proposal, the currently undesignated provision would become new 14 
CFR 47.31(b) and would include the requirement for a printed or typed 
name under the signature. Existing paragraphs (b) and (c) would be 
redesignated as paragraphs (c) and (d).

Paperwork Reduction Act

    This proposal contains the following new information collection 
requirements. As required by the Paperwork Reduction Act of 1995 (44 
U.S.C. Sec.  3507(d)), the FAA has submitted the information 
requirements associated with this proposal to the Office of Management 
and Budget for its review.
    Title: Drug Enforcement Assistance.
    Summary: Two years after the final rule becomes effective, paper 
pilot certificates may no longer be used to exercise piloting 
privileges. Five years after the final rule becomes effective, certain 
other paper airmen certificates, such as those of flight engineers and 
mechanics, may no longer be used to exercise the privileges authorized 
by those certificates. To exercise the privileges after those 
respective dates, the airmen would have to hold upgraded, counterfeit-
resistant plastic certificates.
    Use: These changes are responsive to concerns raised in the FAA 
Drug Enforcement Assistance Act. The purpose of the changes is to 
upgrade the quality of data and documents to assist Federal, State, and 
local agencies to enforce the Nation's drug laws.
    Respondents (including number of): The FAA estimates that there are 
900,000 active airmen, of which 450,000 are pilots.
    Frequency: This is a one-time requirement.
    Annual Burden Estimate: Each airman having a paper certificate 
would need to provide the FAA, the Airmen Certification Branch at the 
Civil Aviation Registry, with the appropriate paperwork. This can be 
done either through the mail or electronically. The fee for this new 
replacement certificate is $2. The FAA assumes that it will take no 
more than five minutes for each airman to process the paperwork; the 
total cost to each airman would be about $3. Five-year costs range from 
$2.80 million ($2.42 million, discounted) to $4.43 million ($3.82 
million, discounted).
    The agency is soliciting comments to--
    (1) Evaluate whether the proposed information requirement is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the burden;
    (3) Enhance the quality, utility, and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology.
    Individuals and organizations may submit comments on the 
information collection requirement by March 6, 2007, and should direct 
them to the address listed in the ADDRESSES section of this document. 
Comments also should be submitted to the Office of Information and 
Regulatory Affairs, OMB, New Executive Building, Room 10202, 725 17th 
Street, NW., Washington, DC 20053, Attention: Desk Officer for FAA.
    According to the 1995 amendments to the Paperwork Reduction Act (5 
CFR 1320.8(b)(2)(vi)), an agency may not collect or sponsor the 
collection of information, nor may it impose an information collection 
requirement unless it displays a currently valid OMB control number. 
The OMB control number for this information collection will be 
published in the Federal Register, after the Office of Management and 
Budget approves it.

International Compatibility

    In keeping with U.S. obligations under the Convention on 
International Civil Aviation, FAA's policy is to comply with 
International Civil Aviation Organization (ICAO) Standards and 
Recommended Practices to the maximum extent practicable. The FAA 
determined that there are no ICAO Standards and Recommended Practices 
that correspond to these proposed regulations.

Economic Summary

    Changes to Federal regulations must undergo several economic 
analyses. First, Executive Order 12866 directs that each Federal agency 
shall propose or adopt a regulation only upon a reasoned determination 
that the benefits of the intended regulation justify its costs. Second, 
the Regulatory Flexibility Act of 1980 requires agencies to analyze the 
economic impact of regulatory changes on small entities. Third, the 
Trade Agreements Act (19 U.S.C. 2531-2533) prohibits agencies from 
setting standards that create unnecessary obstacles to the foreign 
commerce of the United States. In developing U.S. standards, this Trade 
Act requires agencies to consider international standards and, where 
appropriate, to be the basis of U.S. standards. Fourth, the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4) requires agencies to 
prepare a written assessment of the costs, benefits, and other effects 
of proposed or final rules that include a Federal mandate likely to 
result in the expenditure by State, local, or tribal governments, in 
the aggregate, or by the private sector, of $100 million or more 
annually (adjusted for inflation). The FAA currently uses an inflation-
adjusted value of $128.1 million in lieu of $100 million.
    In conducting these analyses, FAA has determined this rule: (1) Has 
benefits that justify its costs, is not a ``significant regulatory 
action'' as defined in section 3(f) of Executive Order 12866, but is 
``significant'' under DOT's Regulatory Policies and Procedures; (2) 
will not have a significant economic impact on a substantial number of 
small entities; (3) will not affect international trade; and does not 
impose an unfunded mandate on state, local, or tribal governments, or 
on the private sector. These analyses, available in the docket, are 
summarized below.

Total Costs and Benefits of This Rulemaking

    Total estimated costs, over five years, to replace paper 
certificates with plastic, range from a low of $3.73 million ($3.22 
million, discounted) to $5.91 million ($5.09 million, discounted). 
These are the estimated costs that the rule would impose on the 
government and the private sector by requiring replacement of paper 
certificates with plastic.
    Reliable data is not available upon which to quantify benefits. 
However, this proposed rule is mandated by statute; consequently, the 
American people, through their elected officials, have established that 
the benefits justify the costs.

Who Is Potentially Affected by This Rulemaking

Private Sector

    All airmen who currently have paper certificates that want to 
continue to be able to exercise those privileges.

[[Page 494]]

Government

    The Civil Aviation Registry would need to process an estimated 
545,900 to 863,900 certificates because of the rule.

Our Cost Assumptions and Sources of Information

     Discount rate--7%;
     Period of analysis--2006 through 2010;
     All monetary values are expressed in 2005 dollars;
     There are currently 900,135 paper certificates for 
airmen--of these, almost 450,000 are pilots, while the balance are 
other airmen; all but those that would normally be issued for 
replacement and additional ratings without the proposed rule and those 
that are currently held by certified flight instructors (CFI) would 
need to be replaced by the rule.
     By the start of 2006 the FAA estimates that the number of 
paper certificates would be reduced to 863,859 because pilots and 
airmen are currently being issued plastic certificates due to 
replacements and additional ratings.
     The FAA assumes that an equal number of certificates would 
be replaced each year. For pilots, approximately 208,700 would be 
replaced in each of the first two years, and for all other airmen, 
approximately 89,300 would be replaced each year;
     The FAA considered a low cost and high cost scenario.
     The time for an airman to fill out the Pilot Certificate 
Reissuance Form is five minutes. The FAA believes that the actual 
amount of time is probably less than this, but is using five minutes 
uniformly so as to be conservative and not underestimate costs;
     Airman's time is costed out at $37.76 per hour;
     An FG-10 time is costed out at $33.09 per hour; and
     An FG-6 time is costed out at $22.11 per hour.

Low Cost Scenario Assumptions

     Not all replacements can be attributed to the rule.
     The FAA assumes that approximately 56,200 airmen 
certificates would be replaced each year without the rule.
     In addition, the FAA assumes that approximately 48,000 
certificates would be issued annually for additional ratings on an 
existing certificate.
     65% of both the replacement and new certificates issued 
for additional ratings are for pilots.
     Without the rule, each year approximately 36,500 pilot 
certificates would be replaced and approximately 31,200 pilot 
certificates would be issued for additional ratings. Of the 
approximately 208,700 pilot certificates that must be replaced, 
approximately 67,800 would be replaced without the rule and therefore 
approximately 140,900 would have to be replaced because of the rule in 
each of the first two years.
     35% of both the replacement and new certificates issued 
for additional ratings are for other airmen.
     Without the rule, each year approximately 19,700 other 
airmen certificates would be replaced and approximately 16,800 other 
airmen certificates would be issued for additional ratings. Of the 
approximately 89,300 other airmen certificates that would be replaced 
each year, approximately 36,500 would be replaced without the rule and 
approximately 52,800 would have to be replaced because of the rule in 
each of the first five years.

High Cost Scenario Assumption

     Assumes that airmen would not replace or upgrade paper 
certificates without the rule.

Benefits of This Rulemaking

    Congress has determined that, at the present time, the smuggling of 
drugs into the United States by general aviation aircraft is a major 
contributing factor in the illegal drug crisis facing the nation. As a 
result of that determination, the Congress expanded the mission of the 
FAA to include assisting law enforcement agencies in the enforcement of 
laws regulating controlled substances, to the extent consistent with 
aviation safety.
    The Congress has stated in the Drug-Free America Policy of the Drug 
Enforcement Assistance Act of 1988 that the total cost of drug use to 
the economy is estimated to be over $100 billion annually. Were this 
rule to reduce society's economic cost of drug use by approximately 1/
85,000th for the high cost scenario or 1/134,000th for the low cost 
scenario over five years, that achievement would approximately equal 
the estimated cost to society of these regulatory changes. The FAA 
believes that such a reduction is achievable. Congress, which reflects 
the will of the American public, has determined that this proposed 
action is in the best interest of the nation.

Costs of This Rulemaking

    The FAA assumes that an equal number of paper airmen certificates 
will be replaced each year. The FAA projects that there will be about 
417,300 pilots who will still hold paper certificates at the start of 
2006, so the FAA assumes that about 208,700 would get their new plastic 
certificate in 2006 and in 2007. Excluding the CFI's, about 446,500 
other individuals with airman certificates would need to replace their 
certificates over a 5 year period, or about 89,300 a year.
    The FAA has considered two cost scenarios. The first low cost 
scenario assumes that, since some airmen have been replacing their 
paper certificates with the new plastic certificates either because 
they have requested replacement certificates or because they have 
received new certificates after attaining additional ratings, they 
would continue to do so without the rule. The cost that these pilots 
would incur to replace their certificates cannot be considered a cost 
of the proposed rule, since they would replace their certificates 
without the rule. The second high cost scenario assumes that no pilots 
or airmen would replace their paper certificates with plastic 
certificates unless the rule required them to do so.

Low Cost Scenario

    In this scenario, we assume that without the rule, approximately 
36,500 pilots and about 19,700 other airmen would replace their 
certificates annually. Further, some airmen acquire a new certificate 
because they earn additional ratings. We estimate that approximately 
31,200 pilots and about 16,800 other airmen would earn additional 
ratings annually and be issued a new plastic certificate to reflect 
these additional ratings. Since this would occur regardless of the 
proposed rule, the cost to replace these certificates would not be 
considered a cost of the rule.
    To summarize, approximately 67,800 pilots would acquire plastic 
certificates annually regardless of the proposed rule. In each of the 
first two years, approximately 140,900 pilots would have to replace 
their certificates because of the proposed rule (208,700 minus 68,000). 
In addition, approximately 36,500 other airmen would acquire plastic 
certificates annually regardless of the proposed rule. In each of the 
first five years, approximately 52,800 other airmen would have to 
replace their certificates because of the proposed rule (89,300 minus 
36,500). This scenario may underestimate costs because it assumes that 
replacements and upgrades that would occur regardless of the proposed 
rule would always replace paper certificates. However, once paper 
certificates become replaced with plastic, some of the later 
replacements/upgrades not related to the rule, would

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involve replacement/upgrades of plastic certificates.

High Cost Scenario

    In this scenario the FAA assumes that there would be no 
replacements or upgrades without the rule and that the cost of the 
proposed rule would be the cost to replace all paper certificates that 
exist as of the start of 2006 (which is when we assume the rule will 
take effect). Therefore, the FAA assumes that in each of the first two 
years, approximately 208,700 pilots would have to replace their paper 
certificates with plastic, and that these costs are attributed 
completely to the proposed rule. The FAA also assumes that in each of 
the first five years, approximately 89,300 other airmen would have to 
replace their paper certificates with plastic because of the proposed 
rule. This is an extremely conservative scenario, which overestimates 
cost.

Costs

    There are two sets of costs associated with replacing the current 
paper certificates, one for airmen and one for the Government.

Airmen Costs

    Each airman having a paper certificate would need to provide the 
FAA, the Airmen Certification Branch at the Civil Aviation Registry 
with the appropriate paperwork. This can be done either through the 
mail or electronically. The fee for this new replacement certificate is 
$2. The FAA assumes that it will take no more than five minutes for 
each airman to process the paperwork; the total cost to each airman 
would be about $3. Five-year costs range from $2.87 million ($2.47 
million, discounted) to $4.54 million ($3.90 million, discounted). The 
lower cost represents the low cost scenario; the higher cost represents 
the high cost scenario.

Government Costs

    There are several steps involved with the FAA processing a request 
for a duplicate airman certificate. These steps include different grade 
levels and/or contract costs and includes Legal Instruments Examiners 
as well as contractors who would preprocess and scan the images, index 
the image, review the certificate for accuracy, and print and mail the 
certificates. The total costs per new certificate sum to $3.59. 
However, airmen would pay $2 for the certificate and therefore the net 
cost to the government would be $1.59 per certificate; five-year costs 
range from $867,900 ($749,300, discounted) to $1.37 million ($1.18 
million discounted). The lower cost represents the low cost scenario; 
the higher cost represents the high cost scenario.
    Total costs, over five years, to replace the existing paper 
certificates range from $3.73 million ($3.22 million, discounted) to 
$5.91 million ($5.09 million, discounted). The lower cost represents 
the low cost scenario; the higher cost represents the high cost 
scenario.

Initial Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980 (RFA) 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 RFA requires agencies to 
solicit and consider flexible regulatory proposals and to explain the 
rationale for their actions. The RFA covers a wide-range of small 
entities, including small businesses, not-for-profit organizations and 
small governmental 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 agency determines that it will, the 
agency must prepare a regulatory flexibility analysis 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 RFA provides that 
the head of the agency may so certify and a regulatory flexibility 
analysis is not required. The certification must include a statement 
providing the factual basis for this determination, and the reasoning 
should be clear.
    This rule affects aircraft owners, through part 47, and pilots, 
through parts 61, 63, and 65.
    The change to part 47 would affect all aircraft owners. However, as 
stated above, they have always been required to send in the 
registration package upon purchase of a new aircraft; this proposal 
does not impose any new requirements on new aircraft owners. 
Accordingly, there are no additional costs for these owners.
    The changes to parts 61, 63, and 65 would impose an estimated $5 in 
compliance costs on pilots applying for certificate reissuances. This 
cost covers the costs for the postage, applicant's time, and the $2 
reissuance fee charged to pilots. However, pilots are not small 
entities and are not covered by the Regulatory Flexibility Act. The FAA 
recognizes that there are one-man businesses that provide aviation 
services; however, the cost of this proposed rule to them would be 
negligible and, therefore, not significant.
    Thus, the FAA certifies that this proposal would not have a 
significant economic impact on a substantial number of small entities.

International Trade Impact Assessment

    The Trade Agreement Act of 1979 prohibits Federal agencies from 
establishing any standards or engaging in related activities that 
create unnecessary obstacles to the foreign commerce of the United 
States. Legitimate domestic objectives, such as safety, are not 
considered unnecessary obstacles. The statute also requires 
consideration of international standards and, where appropriate, that 
they be the basis for U.S. standards. The FAA has assessed the 
potential effect of this NPRM and has determined that it would have 
only a domestic impact and therefore no affect on any trade-sensitive 
activity.

Unfunded Mandates Assessment

    The Unfunded Mandates Reform Act of 1995 (the Act) is intended, 
among other things, to curb the practice of imposing unfunded Federal 
mandates on State, local, and tribal governments. Title II of the Act 
requires each Federal agency to prepare a written statement assessing 
the effects of any Federal mandate in a proposed or final agency rule 
that may result in an expenditure of $100 million or more (adjusted 
annually for inflation) in any one year by State, local, and tribal 
governments, in the aggregate, or by the private sector; such a mandate 
is deemed to be a ``significant regulatory action.'' The FAA currently 
uses an inflation-adjusted value of $128.1 million in lieu of $100 
million.
    This proposed rule does not contain such a mandate. The 
requirements of Title II do not apply.

Executive Order 13132, Federalism

    The FAA has analyzed this NPRM under the principles and criteria of 
Executive Order 13132, Federalism. We determined that this action will 
not have a substantial direct effect on the States, or the relationship 
between the national Government and the States, or on the distribution 
of power and responsibilities among the various levels of government. 
Therefore, we determined that this NPRM does not have federalism 
implications.

[[Page 496]]

Plain English

    Executive Order 12866 (58 FR 51735, Oct. 4, 1993) requires each 
agency to write regulations that are simple and easy to understand. We 
invite your comments on how to make these regulations easier to 
understand, including answers to questions such as the following:
     Are the requirements in the regulations clearly stated?
     Do the regulations contain technical language or jargon 
that interferes with their clarity?
     Would the regulations be easier to understand if they were 
divided into more (but shorter) sections?
     Is the description in the preamble helpful in 
understanding the regulations?
    Please send your comments to the address specified in the ADDRESSES 
section.

Environmental Analysis

    FAA Order 1050.1E identifies FAA actions that are categorically 
excluded from preparation of an environmental assessment or 
environmental impact statement under the National Environmental Policy 
Act in the absence of extraordinary circumstances. The FAA has 
determined this proposed rulemaking action qualifies for the 
categorical exclusion identified in paragraph 312d and involves no 
extraordinary circumstances.

Regulations That Significantly Affect Energy Supply, Distribution, or 
Use

    The FAA has analyzed this NPRM under Executive Order 13211, Actions 
Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use (66 FR 28355, May 18, 2001). We have determined 
that it is not a ``significant energy action'' under the executive 
order because it is not a ``significant regulatory action'' under 
Executive Order 12866, and it is not likely to have a significant 
adverse effect on the supply, distribution, or use of energy.

List of Subjects

14 CFR Part 47

    Aircraft, Reporting and recordkeeping requirements.

14 CFR Part 61

    Aircraft, Airmen, Alcohol abuse, Drug abuse, Recreation and 
recreation areas, Reporting and recordkeeping requirements, Teachers.

14 CFR Part 63

    Aircraft, Airmen, Alcohol abuse, Drug abuse, Navigation (air), 
Reporting and recordkeeping requirements.

14 CFR Part 65

    Air traffic controllers, Aircraft, Airmen, Airports, Alcohol abuse, 
Drug abuse, Reporting and recordkeeping requirements.

The Proposed Amendments

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

PART 47--AIRCRAFT REGISTRATION

    1. The authority citation for part 47 continues to read as follows:

    Authority: 49 U.S.C. 106(g), 40113-40114, 44101-44108, 44110-
44111, 44703-44704, 44713, 45302, 46104, 46301; 4 U.S.T. 1830.

    2. Redesignate existing paragraphs (b) and (c) as (c) and (d) and 
the undesignated text following paragraph (a)(3) is designated as a new 
paragraph (b) and revised to read as follows:


Sec.  47.31  Application.

* * * * *
    (b) The FAA rejects an application when--
    (1) Any form is not completed;
    (2) The name and signature of the applicant are not the same 
throughout; or
    (3) The applicant does not provide a legibly printed or typed name 
with the signature in the signature block.
* * * * *
    3. Amend Sec.  47.41 by revising paragraph (b) to read as follows:


Sec.  47.41  Duration and return of Certificate.

* * * * *
    (b) The Certificate of Aircraft Registration, with the reverse side 
completed, must be returned to the FAA Aircraft Registry--
    (1) Within 5 days in the case of registration under the laws of a 
foreign country, by the person who was the owner of the aircraft before 
foreign registration;
    (2) Within 60 days after the death of the holder of the 
certificate, by the administrator or executor of his estate, or by his 
heir-at-law if no administrator or executor has been or is to be 
appointed; or
    (3) Within 5 days of the termination of the registration, by the 
holder of the Certificate of Aircraft Registration in all other cases 
mentioned in paragraph (a) of this section.

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

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

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

    5. Amend Sec.  61.19 by:
    A. Revising paragraph (e); and
    B. By adding new paragraph (h) to read as follows:


Sec.  61.19  Duration of pilot and instructor certificates.

* * * * *
    (e) Ground instructor certificate.
    (1) A ground instructor certificate issued under this part is 
issued without a specific expiration date.
    (2) The holder of a paper certificate issued under this part may 
not exercise the privileges of that certificate after [DATE 5 YEARS AND 
30 DAYS FROM DATE OF PUBLICATION IN THE FEDERAL REGISTER].
* * * * *
    (h) Duration of pilot certificates. The holder of a paper 
certificate issued under this part may not exercise the privileges of 
that certificate after [DATE 2 YEARS AND 30 DAYS FROM DATE OF 
PUBLICATION IN THE FEDERAL REGISTER].

PART 63--CERTIFICATION: FLIGHT CREWMEMBERS OTHER THAN PILOTS

    6. The authority citation for part 63 continues to read as follows:

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

    7. Amend Sec.  63.15 by adding new paragraph (d) to read as 
follows:


Sec.  63.15  Duration of certificates.

* * * * *
    (d) The holder of a paper certificate issued under this part may 
not exercise the privileges of that certificate after [DATE 5 YEARS AND 
30 DAYS FROM DATE OF PUBLICATION IN THE FEDERAL REGISTER].

PART 65--CERTIFICATION: AIRMEN OTHER THAN FLIGHT CREWMEMBERS

    8. The authority citation for part 65 continues to read as follows:

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

    9. Amend Sec.  65.15 by adding new paragraph (d) to read as 
follows:


Sec.  65.15  Duration of certificates.

* * * * *
    (d) The holder of a paper certificate issued under this part may 
not exercise the privileges of that certificate after [DATE 5 YEARS AND 
30 DAYS FROM

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DATE OF PUBLICATION IN THE FEDERAL REGISTER].

    Issued in Washington, DC, on December 27, 2006.
James Ballough,
Director, Flight Standards Service.
[FR Doc. 06-9989 Filed 1-4-07; 8:45 am]
BILLING CODE 4910-13-P