Re-Registration and Renewal of Aircraft Registration, 41968-41983 [2010-17572]
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41968
Federal Register / Vol. 75, No. 138 / Tuesday, July 20, 2010 / Rules and Regulations
Subpart B [Reserved]
Subpart C [Reserved]
Signed in Washington, DC on July 14,
2010.
Jonathan W. Coppess,
Executive Vice President, Commodity Credit
Corporation.
[FR Doc. 2010–17636 Filed 7–19–10; 8:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Parts 13, 47, and 91
[Docket No. FAA–2008–0188; Amendment
Nos. 13–34, 47–29, 91–318]
RIN 2120–AI89
Re-Registration and Renewal of
Aircraft Registration
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AGENCY: Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
SUMMARY: This final rule amends the
FAA’s regulations concerning aircraft
registration. Over a 3-year period, this
rule will terminate the registration of all
aircraft registered before October 1,
2010, and will require the re-registration
of each aircraft to retain U.S. civil
aircraft status. These amendments also
establish a system for a 3-year recurrent
expiration and renewal of registration
for all aircraft issued registration
certificates on or after October 1, 2010.
This final rule amends the FAA’s
regulations to provide standards for the
timely cancellation of registration
numbers (N-numbers) for unregistered
aircraft. This final rule makes other
minor changes to establish consistency
and ensure the regulations conform to
statute or current Registry practices.
These amendments will improve the
accuracy of the Civil Aviation Registry
database and will ensure that aircraft
owners provide information to maintain
accurate registration records. These
amendments respond to the concerns of
law enforcement and other government
agencies to provide more accurate, upto-date aircraft registration information.
DATES: These amendments become
effective October 1, 2010.
FOR FURTHER INFORMATION CONTACT: For
technical questions concerning this final
rule contact John Bent, Civil Aviation
Registry, AFS–700, FAA Mike
Monroney Aeronautical Center, 6500
South MacArthur Boulevard, Oklahoma
City, OK 73169; Telephone (405) 954–
4331; e-mail john.g.bent@faa.gov. For
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legal questions concerning this final
rule contact Robert Hawks, Office of
Chief Counsel, (AGC–240); Federal
Aviation Administration, 800
Independence Avenue, SW.,
Washington, DC 20591; Telephone:
(202) 267–7143; e-mail
rob.hawks@faa.gov.
SUPPLEMENTARY INFORMATION:
Authority for This Rulemaking
The FAA’s authority to issue rules
regarding aviation safety is found in
Title 49 of the United States Code.
Subtitle I, Section 106 describes the
authority of the FAA Administrator.
Subtitle VII, Aviation Programs,
describes in more detail the scope of the
agency’s authority.
This rulemaking is promulgated
under the authority described in
Subtitle VII, Part A, Subpart III, Chapter
441, Section 44111. Under that section,
the FAA is charged with prescribing
regulations considered necessary to
carry out this part. In that section,
Congress mandated the Administrator
modify the system for registering and
recording aircraft necessary to make the
system more effective in serving the
needs of its users. The modifications
described in this amendment include
measures to ensure positive, verifiable,
and timely identification of the true
owners of aircraft operated in the
national airspace system. Thus, these
changes are within the scope of the
FAA’s statutory authority and are a
necessary and reasonable exercise of
that authority.
Table of Contents
I. Executive Summary of the Final Rule
II. Background
III. Summary of Comments
IV. Discussion of Final Rule
A. Aircraft Re-Registration and Periodic
Renewal of Registration
B. Reminder Notice, Extended Filing
Timeframes, and Online Access
C. Triennial Aircraft Registration Report
No Longer Required
D. Time Limits for Aircraft in Sale
Reported and Registration Pending
Status
E. Conforming Amendments
V. Miscellaneous Comments
A. Re-Registration and Renewal
B. Risks and Disruption
C. Fees, User Fees, New Taxes
D. Alternatives Suggested by Commenters
VI. Regulatory Notices and Analyses
A. Paperwork Reduction Act
B. International Compatibility
C. Regulatory Evaluation, Regulatory
Flexibility Determination, International
Trade Impact Assessment, and Unfunded
Mandates Assessment
D. Executive Order 13132, Federalism
E. Environmental Analysis
F. Regulations that Significantly Affect
Energy Supply, Distribution, or Use
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G. Availability of Rulemaking Documents
H. Small Business Regulatory Enforcement
Fairness Act
I. Executive Summary
The FAA estimates that
approximately one-third of the 357,000
registered aircraft records it maintains
are inaccurate and that many aircraft
associated with those records are likely
ineligible for United States registration.
The inaccuracies result from failures in
the voluntary compliance based system.
Although aircraft owners are required to
report the sale of an aircraft, death of an
owner, scrapping or destruction of an
aircraft, and changes in mailing address;
many have not. Without owner initiated
action, there has been no means to
correct those records. The FAA has been
asked by government and law
enforcement agencies to provide more
accurate and up-to-date aircraft
registration information. This rule is
intended to support the needs of our
system users.
The changes made by this Final Rule
provide the FAA Aircraft Registry the
tools to improve the currency and
accuracy of the Civil Aircraft Registry
database and maintain the improvement
into the future. Re-registration of all
U.S. civil aircraft over a three year
period will redraw the Civil Aircraft
Register with current data derived from
recent contact with aircraft owners.
Additionally, the FAA is enabled to
cancel the registrations of those aircraft
that are not re-registered. These
amendments will also ensure that
aircraft owners refresh that data by
providing information on the status of
their aircraft at least once every three
years when registration is renewed. The
expected reduction in registration data
error provided by this rule and the
corresponding cost of implementation is
shown in the table below with estimates
for alternate renewal intervals that were
considered.
This rule also eliminates the present
Triennial Aircraft Registration Report
Program, provides clear time limits and
standards for canceling aircraft with
registrations that have ended and for
which no new registration application
has been made or completed. It also
makes several administrative changes to
conform the regulation to statute and
current registration practices.
An NPRM was published in the
Federal Register on February 28, 2008
(73 FR 10701), requesting input on these
goals and the proposed procedures to
achieve them. Significant comments
addressed concern that the proposed fee
for registration renewal, which occurs
every third year, would be increased
and used as a device to raise revenue:
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that the recurrent nature of renewal
would create excessive opportunities for
administrative failure that would
interfere with revenue flights; and that
the rule would cause significant new
costs for owners, operators and
financiers that work with multiple
aircraft that had not been accounted for
41969
in estimates of the cost of the proposed
rule. This final rule is responsive to
these and other comments as addressed
in the discussion that follows.
SUMMARY OF COSTS AND BENEFITS IN MILLIONS OF 2007 DOLLARS
[Over 20 years]
Cost
Re-registration and 3-Year Renewal (Triennial Eliminated) ..........................
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Re-registration lowers the error rate
from 36.5% to 5.7% for an improvement
of 31%.
Renewal every third year maintains
this improvement.
II. Background
The Aircraft Registration Branch (the
‘‘Registry’’) is responsible for
developing, maintaining, and
administering national programs for the
registration of United States civil
aircraft. First among these
responsibilities is maintaining the
registration database. The database
identifies each registered aircraft by its
registration number (N-number), its
complete description, and the name and
address of its registered owner.
Registration is a prerequisite for
obtaining an airworthiness certificate,
and together a registration certificate
and airworthiness certificate enable
operation of an aircraft in U.S. and
foreign airspace. The FAA uses the
information collected at the time of
registration to communicate safetyrelated information such as
Airworthiness Directives to aircraft
owners. Similarly, aircraft
manufacturers use this information to
send out safety notices and other
information. The FAA relies on the
registration database when responding
to an overdue flight or downed aircraft
report and when enforcing its
regulations. Law enforcement agencies
rely on the registration database when
investigating improper activities such as
drug smuggling. The registration
database is used to identify aircraft that
could be used by U.S. armed forces. It
also is a resource for buyers and sellers
of aircraft and for banks that may
finance those transactions.
The FAA and other government
agencies are increasingly developing
sophisticated uses that are enabled by
progressing technology. An example is
Automatic Detection and Processing
Terminal or ADAPT, a program
developed by the FAA Strategic
Operations Security with the
Transportation Security Administration
(TSA). (See 70 FR 73323, December 9,
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Present value
of cost
$29.9
2005.) This program continuously draws
registration information for combination
with other data, satellite feeds, and
radar to develop a display of the
national airspace complete with the
registration status of each aircraft that is
operating on a filed flight plan. Using
this information, appropriate safety,
security, and law enforcement actions
can be initiated. The development of the
ADAPT program and other safety- and
security-related programs demand an
accurate database.
Today, approximately one-third of the
357,000 registered aircraft have
questionable registrations. There are
many causes for this large number of
potentially inaccurate aircraft records.
Failure to re-register an aircraft after a
sale to a new owner, failure to report the
death of an owner, failure to report
scrapping or destruction of aircraft, and
failure to report changes of address
erode the accuracy of the records. A
requirement for registered owners to
notify the Registry of these and other
registration-related changes has been
part of the registration regulations for
many years. The number of questionable
records in the registration database
grows annually despite these
requirements.
In 1988, the FAA mission was
expanded to include providing
assistance to law enforcement agencies
through the passage of the FAA Drug
Enforcement Assistance Act of 1988 (the
Act) (partially codified at 49 U.S.C.
44111). The Act charged the FAA with
making specific modifications to the
registration database to more effectively
serve the needs of buyers and sellers of
aircraft, law enforcement officials, and
other users of the system. The FAA has
addressed most of the issues identified
in the Act and improved service to users
through administrative modifications,
technology upgrades, and focused
enforcement programs. Access to
aircraft data and most individual aircraft
records is easy and routine.
Although the FAA has worked to keep
the registration database accurate and
current, the Registry’s ability to get
timely updates of registration changes
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$16.3
Benefit
Reduction in Error Rate by 31%.
from aircraft owners is limited. From
March 1970 through January 1978,
registered owners were required to file
an annual report. Beginning in April
1980, the Triennial Aircraft Registration
program required a report from
registered owners when 3 years passed
without the occurrence of certain
aircraft registration activities. Under
both programs, failure to send in the
required report subjected the aircraft’s
registration certificate to revocation
under 14 CFR part 13.
While a large portion of aircraft
owners have and continue to report
changes both independently and in
response to a report notice, a significant
portion of reports continue to be
returned as undeliverable or not
returned at all. Many orders revoking
the prior owner’s certificate of
registration are returned as
undeliverable. Because the new aircraft
owner could be operating the aircraft on
an ineffective and revoked certificate,
the aircraft are kept in the system to
prevent reassignment of the N-number
to a second active aircraft.
Notwithstanding administrative
modifications to the registration system,
and enforcement efforts, there is an
increasing number of registered aircraft
whose status is in question or whose
owner cannot be contacted. With
approximately one-third of registered
aircraft assigned a questionable
registration status, the present system of
indefinite-duration registration
certificates does not achieve the
necessary accuracy and currency of
aircraft registration data. Modifications
to the aircraft registration system must
be made to achieve a level of
registration data reliability that meets
the current and evolving needs of users.
The FAA has determined that the most
effective method for increasing the
accuracy of its records is the
establishment of limited-duration
aircraft registration with clear standards
for canceling N-number assignments
when a registration expires or otherwise
ends. The 3-year re-registration period
will clear the registration database of
aircraft with questionable registration.
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Recurrent renewal at regular intervals
will maintain the improved accuracy.
The NPRM published in the Federal
Register on February 28, 2008 (73 FR
10701) proposed:
• Expiration of registration for all
currently registered aircraft and their reregistration as scheduled over a 3-year
period;
• Recurrent expiration and renewal
on a 3-year interval of all aircraft
registrations issued after the effective
date of the proposed rule with a
registration renewal process;
• Elimination of the present Triennial
Aircraft Registration Report program;
• A 6-month limit on the time an
aircraft may remain in the sale reported
category without an application being
made for registration before its
N-number assignment is canceled;
• A 12-month limit on the time an
applicant or successive applicants for
registration have to complete the
registration process, and provisions for
reserving the aircraft’s N-number if the
aircraft is not registered at the end of
this time; and,
• Cancellation of the N-number of an
aircraft registered under a Dealer’s
Aircraft Registration Certificate (Dealer’s
Certificate), if the Dealer’s Certificate
has expired and application for
registration has not been made under
§ 47.31.
The public comment period closed on
May 28, 2008. Late-filed comments
posted through June 30, 2008 were
accepted for consideration.
III. Summary of Comments
The FAA received 94 comments on
the NPRM. The commenters consisted
of aviation industry associations, air
carriers, banks, finance companies, law
firms, and individuals. Most
commenters expressed multiple
opinions, concerns, and suggestions,
which were often repeated by others.
Common areas of concern are grouped
by subject for response.
IV. Discussion of the Final Rule
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A. Aircraft Re-Registration and Periodic
Renewal of Registration
As proposed in the NPRM, this rule
adopts the expiration and re-registration
of all registered aircraft over a 3-year
period, followed by the expiration and
renewal of aircraft registration at 3-year
intervals. This rule establishes the
expiration of registration for all aircraft
registered before October 1, 2010, and
provides for the re-registration of all
aircraft over a 3-year period according to
the schedule provided in § 47.40(a)(1). It
also establishes the recurrent expiration
and renewal of registration at 3-year
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intervals for all aircraft issued
registration on or after October 1, 2010,
in § 47.40(c). The expiration date
printed on the registration certificate of
aircraft registered or re-registered after
October 1, 2010, will be 3 years from the
last day of the month in which
registration or re-registration occurred
as provided in § 47.40(a) and (b). A
renewed aircraft registration will expire
3 years from the previous expiration
date in accordance with § 47.40(c).
Replacement registration certificates
issued on or after October 1, 2010, will
display the same expiration date that
was shown on the replaced registration
certificate. If the replaced registration
certificate did not display an expiration
date, the replacement certificate will
display the expiration date indicated in
§ 47.40 based on the month of issue of
the replaced registration certificate.
Replacement certificates are issued after
an address update, an N-number
change, or the report of a lost or
mutilated certificate. A replacement
does not constitute re-registration or
renewal.
Several commenters, particularly
aircraft operators and aviation financing
and leasing companies, expressed
concern over the re-registration and
periodic renewal of registration. Some
commenters preferred, as an alternative
to the proposal, updating the triennial
program by ‘‘putting teeth’’ into its
enforcement. This would include
enforcing the requirement to return the
triennial report even when no change
has occurred and imposing fines or
canceling registration when there is no
compliance. The FAA has considered
these alternatives and has determined
they would not resolve the issues
addressed by this rule. The ‘‘teeth’’
suggested (such as fines or cancellation
for an owner not replying to the
triennial) are the same options available
to the FAA today. In appropriate cases,
the FAA has and will continue to
pursue enforcement actions as provided
for in 14 CFR part 13. However, the
purpose of this final rule is to maintain
an accurate registry database, and the
FAA has determined that re-registration
and renewal of all aircraft registrations
is the most efficient way to accomplish
that purpose.
Existing § 47.51 requires the return of
the triennial reports without changes.
However, without an effective way of
dealing with reports that were not
returned or returned as undeliverable,
the requirement became an unnecessary
expenditure of resources for both the
FAA and the public. Consequently, the
instructions on the triennial report
stated that return was unnecessary if no
change had occurred. The FAA has
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concluded that recurrent registration
expiration and renewal is the only way
to ensure a regular validation of aircraft
registration status and owner contact
information. Therefore, as proposed,
§ 47.51 is removed.
Commercial commenters contended
that the FAA underestimated the costs
to some aircraft owners because aircraft
registration often involves multiple
parties. A high percentage of
commercial and corporate aircraft, and
a large number of general aviation
aircraft, are leased to third parties and
may be subject to financing agreements.
These commenters stated they would
need to implement systems to monitor
the status of aircraft registrations for reregistration and renewal purposes. They
also stated the costs of developing and
maintaining such systems would be
significant. The costs would include the
need to hire an aviation professional to
advise on, prepare, and file registration
documents. They stated that outside
counsel (engaged at a minimum of $350
per hour) would be required to review
filings. Also, significant time would be
spent by the various parties
communicating with each other and
with the FAA. Finally, they stated that
an appropriate employee (such as a
mechanic) must place and document the
placement of the registration certificate
in the aircraft. The commenters
contended the costs associated with
taking the actions necessary to comply
with the regulations can be substantial
for owners, operators, and financial
institutions dealing with large aircraft
fleets and should have been included in
the regulatory evaluation.
The FAA agrees that for certain
aircraft owners, the cost in the NPRM
was underestimated. The FAA has
revised its estimates of recurrent costs to
include the time needed to fill out the
re-registration or renewal application
form, time for a legal review before the
owner signs the application, time for the
owner to receive a registration
certificate and forward it to the aircraft
operator, and time for the operator to
receive and place the registration
certificate in the aircraft. The FAA also
has included one-time, start-up costs for
documenting in-house re-registration
and renewal procedures and the training
of key personnel.
Costs for actions not directly imposed
by the rule, such as actions a party
might take for their own convenience or
preference, were not included. Among
these were costs for hiring outside
personnel to interpret the new rule or
assist with re-registration and renewal
processing and costs for establishing
tracking systems. These were classified
as optional tools to assure compliance
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that are chosen by the owner or other
parties but not directly required by the
rule. Many operations already have a
tracking system for maintenance or
scheduling aircraft. These systems could
be modified or adapted to help maintain
aircraft registration by those who choose
to use this method. New registration
certificates will have the expiration
dates printed on them to inform the
pilot of the approaching expiration. The
Registry Web site also will show the
expiration date for individual aircraft
and list aircraft that are pending reregistration or renewal. Most
importantly, aircraft owners who keep
their registration address current will
receive two timely reminder notices
before the scheduled expiration date of
their aircraft’s registration.
The FAA recalculated the three 20year scenarios presented in the NPRM to
41971
include the additional operating and
start-up cost addressed in the previous
paragraph. Each scenario starts with the
3-year re-registration followed by 3-,
5-, and 7-year renewal cycles without a
triennial program. The chart that
follows shows the comparative costs
and error rates achieved by these
scenarios.
ESTIMATED COSTS AND ERROR RATES FOR RE-REGISTRATION AND RENEWAL
[Over 20 years]
Options
Cost
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Current Program ..............................................................................................
Re-registration and 7-Year Renewal (Triennial Eliminated) ............................
Re-registration and 5-Year Renewal (Triennial Eliminated) ............................
Re-registration and 3-Year Renewal (Triennial Eliminated) ............................
After comparing the results of these
scenarios, the FAA has determined the
best balance between cost and improved
accuracy is provided by the 3-year reregistration followed by 3-year renewal
cycles and no triennial program.
Overall, questionable or erroneous
registrations are expected to change
from the current total error of
approximately 36.5% to a projected
total error of approximately 5.7%. While
the alternative options cost less, the
projected total error rate for each is
significantly higher than the 3-year
renewal option. The Regulatory
Evaluation contains a detailed
discussion of how costs were
determined with an explanation of the
calculations behind these scenarios.
Re-registration of all aircraft and
periodic renewal of registration will
result in a more accurate database that
will benefit all users. Law enforcement
and security agencies will have access
to more accurate registration records,
which should increase their
effectiveness in accomplishing their
missions. The FAA and manufacturers
will realize cost savings when mailing
emergency airworthiness directives,
safety notices, and surveys to aircraft
owners. More reliable notification
regarding safety issues should improve
aviation safety.
Commenters expressed concern over
the opportunity re-registration and
periodic renewal creates for
administrative error that could ground
an aircraft. They believe a renewal
interval of 3 years increases this risk.
Some commenters suggested a 5-year
interval to coincide with fractional
contracts or to match Uniform
Commercial Code continuation filing.
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$8,361,100
7,498,100
13,806,600
29,946,000
Another commenter suggested a 7-year
interval to align with aging aircraft
inspections.
The FAA has considered the
recommended renewal intervals.
However, these events do not relate to,
or further the goal of, improving the
accuracy of registration information. It
is impractical to tie the renewal term to
financial events over which the FAA
has no control or scheduled inspections
that may vary be aircraft. However, the
FAA does recognize that regular
renewal creates a regulatory obligation
that, if missed, could lead to the
temporary grounding of an aircraft. To
reduce the potential for these events to
occur, the FAA is implementing several
procedural safeguards introduced in the
following discussion.
B. Reminder Notices, Extended Filing
Timeframes, and Online Access
The Registry will send owners two
reminder notices rather than a single
reminder as proposed in the NPRM. The
first reminder notice will be sent 180
days before a registration is scheduled
to expire. This is 60 days earlier than
the 120 days proposed in the NPRM.
The reminder will provide basic
instructions and identify the aircraft, its
expiration date, and the 3-month filing
window during which a registration or
renewal application should be
submitted. Filing the application within
the assigned window will enable the
new registration certificate to arrive
before the old certificate expires. The
second reminder notice will be sent at
the end of the filing window to owners
who have not yet re-registered or
renewed registration. The filing window
will close 2 months prior to the
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Present value
cost
$4,428,900
5,564,300
8,512,700
16,264,900
Error rate
(percent)
36.5
21.7
12.5
5.7
Inaccurately
registered
aircraft
132,100
68,900
37,600
18,800
scheduled expiration date to allow for
processing the applications and mailing
the new certificates. Applications sent
after the filing window closes will still
be processed; however, due to
processing and mailing times, the
aircraft may be without authorization to
operate until registration is completed.
Section 47.40(a)(1) contains a chart with
the schedule established for reregistration. The Registry will post lists
on its Web site showing aircraft as they
move through the various stages of reregistration and renewal. These changes
should help owners keep their aircraft
continuously registered and help keep
other interested parties informed about
the registration status of those aircraft.
In the NPRM, the FAA proposed
extending expiration dates past the
regulatory expiration date if the FAA or
applicant were unable to complete the
renewal process in a timely manner.
The FAA has concluded that this
process would be complicated and
costly for both aircraft owners and the
Registry. The FAA has determined that
moving the first reminder notice and the
filing window forward by 2 months and
using this additional time for
application processing and certificate
delivery is a better solution. The earlier
filing and additional 2 months for
processing provides adequate time for a
timely applicant to receive a new
registration certificate. The process
adopted by this final rule will reduce
the uncertainty about registration
certificate arrival and the potential
burden of coordinating extensions that
the proposed process would have
created.
The earlier reminder notice and
additional processing time also respond
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to requests from a few commenters who
suggested a temporary operating
authority for use with re-registration
and renewal applications. The FAA
permits temporary operation through
the use of the second or ‘‘Pink Copy’’ of
the application for registration for a
reasonable period of time following a
transfer of ownership. Because of
statutory limitations, this type of
temporary authority cannot be used for
re-registration and renewal because
these events are not part of a transfer of
ownership. Provided an owner files an
application for re-registration or renewal
in a timely manner during the reregistration and renewal window, an
interval of not less than two months will
remain on the old certificate. This is
sufficient time for an application to be
processed and a certificate issued and
delivered.
The FAA planned to use the Aircraft
Registration Application, AC Form
8050–1 as the application form for
aircraft re-registration. To avoid
confusion between the normal
registration process with its temporary
operating authority and the reregistration process, the Aircraft
Registration Application, AC Form
8050–1 will not be used for reregistration. A separate application form
has been developed and will be
available from the Registry at its Web
site, https://registry.faa.gov/
renewregistration. Proposed regulatory
language has been changed to keep the
two processes separate.
The FAA proposed to require paper
forms for all re-registration and to allow
online renewal application when no
changes were necessary. Several
commenters called attention to the
convenience and savings that could be
achieved with both online reregistration and renewal. One
commenter believed that completing the
application electronically could save
about 25 minutes, providing
convenience for owners. Others pointed
out the savings in time and costs for the
FAA if applications could be processed
electronically.
The FAA agrees that online reregistration and electronic processing
could reduce costs, but only when there
are no changes to be made to the current
registration information. Accordingly,
the rule provides for both online reregistration and renewal when no
changes are required. Extending the
online option to those aircraft with
information changes to report would be
convenient for owners. However, the
FAA currently cannot process these
information updates electronically.
Therefore, at this time, re-registration or
renewal applications with updates
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cannot be made online. However, future
online submission is not prohibited by
the regulatory text, and we are exploring
options for future acceptance of
registration information electronically.
Regardless of whether information is
received electronically or through a
paper-based method, address updates
and other changes also require review
and action by an examiner, so cost
savings to the Government in these
situations would be minimal or
nonexistent.
The changes from the proposed rule
discussed to this point extend the
timeframes and simplify the procedures
of the re-registration and renewal
process to the benefit of owners,
operators, and the FAA. When these
elements of the rule are pulled together
re-registration and renewal will operate
similarly to the following example.
For the purpose of re-registration, an
aircraft registration certificate that does
not contain an expiration date and was
issued in March of any year has an
assigned expiration date of March 31,
2011, as described in § 47.40 of this
rule. This example also applies to
renewal of an aircraft registration
certificate issued with an expiration
date of March 31st . On or about October
1, the first reminder notice will be sent
to the aircraft owner at the address of
record. The notice will remind the
owner of the pending expiration and
announce that the 3-month filing
window will run from November 1st
through the last day of January. The
notice will include a unique passcode
for use with online filing that will be
valid until the close of the assigned
filing window. It will also provide
information for both online and paper
form filing. A printable form will be
available online and from the Registry.
The additional 2 months provided for
application processing and certificate
delivery run from February 1st through
March 31st. Timely applications,
meaning those received at the Registry
during the filing window, will be
processed and issued with sufficient
time for the registration certificate to
arrive well before expiration on the last
day of March. Re-registration and
renewal applications that report updates
to registration information or are filed
after the filing window closes must be
made using the paper application. Filing
after the end of the 3-month window
creates the possibility the new
certificate will arrive after the old
certificate expires. An owner who has
allowed registration to expire may apply
for registration in accord with § 47.31,
by submitting an Aircraft Registration
Application, AC Form 8050–1 and the
registration fee identified in § 47.17.
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A correct address on file will ensure
that the reminder letters will be sent to
the aircraft owner and avoid delays and
possible loss of registration. There is no
fee for updating an address or other
information, like a name change, and it
can be done at any time during or
independent of the registration process.
C. Triennial Aircraft Registration Report
No Longer Required
In the NPRM, the FAA proposed to
remove § 47.51 and eliminate the
requirement for aircraft owners to
complete and return a Triennial Aircraft
Registration Report. This proposal is
adopted without modification in this
final rule. The re-registration and
renewal requirements adopted in this
final rule eliminate the need for the
triennial program.
D. Time Limits for Aircraft in Sale
Reported and Registration Pending
Status
Accuracy and usability of the
database require eliminating aircraft
from questionable registration statuses
such as ‘‘Sale Reported’’ or ‘‘Registration
Pending.’’ Approximately 17,000 aircraft
are reported as sold and have remained
in a ‘‘Sale Reported’’ status for more than
6 months. Their registration has ended,
but without standards for canceling the
assignment of an aircraft registration
number, the aircraft remain in the
database. With a registration number
still assigned, ‘‘Sale Reported’’ aircraft
could operate under ‘‘Pink Copy’’
temporary authority at any time if an
application for registration is made. Due
to normal processing delays, it cannot
be known to a system user what the
actual status is. Accordingly, ‘‘Sale
Reported’’ aircraft are in a perpetually
questionable status.
The FAA proposed to implement
clear standards for the cancellation of
registration number assignments from
aircraft with ineffective registration. The
basis for these standards is underscored
in proposed § 47.15(i). When the
ownership of an aircraft is transferred,
its registration is no longer effective,
and the FAA may cancel the
corresponding assignment of
registration number. To establish clear
time periods in which to complete the
registration of a transferred aircraft,
proposed § 47.15(i) set forth timelines
for cancellation of the assignment of
registration number in three ownership
transfer scenarios. The FAA will cancel
the assignment of registration number if
6 months have passed since notification
to the FAA of transfer and no
application for registration has been
filed. The FAA will cancel the
assignment of registration number if 1
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year has passed since the application for
registration was made, but the applicant
or successive applicants have failed to
meet the registration requirements of
this part. The FAA will cancel the
assignment of registration number if 6
months have passed since an aircraft
dealer filed evidence of ownership in
accord with § 47.67 that did not meet
registration requirements, and these
requirements have remained unmet.
Section 47.15(i) is adopted as proposed
in the NPRM without change.
Several commenters thought that
automatic cancellation of registration
numbers for failing to renew or reregister is a severe penalty. These
commenters suggested that the system
should accommodate the retention of Nnumbers without the complication of an
application or fees because it is
expensive to put a new N-number on an
aircraft.
Section 47.15(i) as adopted provides
for the cancellation of an N-number
assignment to an aircraft when
registration ends. However, the
cancellation process is not an automatic
action as commenters suggest. When
aircraft registration ends, the Registry
will wait 30 days to ensure that any
recently received requests from the
owner have been processed. The
Registry will then send a letter about the
pending cancellation if a good address
for an owner is on file.1 The letter will
inform the owner that the owner may
reserve the N-number as provided for in
newly adopted § 47.15(j) or register the
aircraft under § 47.31 within 60 days
from the date of the letter. If a reply is
not received within 60 days, the aircraft
record will be placed in a work packet
and then in queue for an examiner to
complete cancellation. If a good address
for the aircraft owner is not on file, Nnumber cancellation will be scheduled
for no sooner than 90 days from the date
of expiration. During this time, the
aircraft will appear on the Registry’s
webpage list of aircraft pending
cancellation. Once cancellation is
complete, the N-number will be
unavailable for assignment for a period
of 5 years in accord with § 47.15(j).
The 5-year hold is related to both
safety and customer service. Many
aircraft that may be canceled from the
registration database belong to owners
who have been out of contact with the
Registry. These aircraft may be in use or
may return to operational status during
the next few years. It would be unwise
to release an N-number for use on a
second aircraft when there is a chance
1 The
Registry has a status it assigns to aircraft
records that have had mail returned as
undeliverable.
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the first aircraft is still operating. The 5year hold also is responsive to requests
from law enforcement agencies.
Removing the N-numbers of
unregistered aircraft from service for a
few years helps them identify and
evaluate operating aircraft.
One commenter asked whether the
requirement to return expired
registration certificates could be
modified. The costs to gather and return
these certificates could be excessive for
owners or operators with large or
international fleets. The FAA agrees
with this comment and has changed the
language of proposed § 47.41(b). Instead
of returning an expired registration
certificate, the holder must destroy it.
A commenter asked why a limit of
120 days was established for use of the
copy of a completed and returned
Assignment of Special Registration
Numbers, AC Form 8050–64. This
commenter suggested a period of 180
days instead.
This form is issued as authority to
place a special N-number on a specific
aircraft during the next 12 months.
Within 5 days of painting the N-number
on the aircraft, the form is to be
completed with the painting date,
signed by the owner, and returned to the
Registry. The records will then be
updated and a new aircraft registration
certificate issued. While waiting for the
new certificate, the owner is to keep a
copy of the form with the old certificate
as authorization to operate with the new
N-number. The new certificate should
arrive in 60 to 90 days at which time the
copy of the form loses its authority. The
12-month and 120-day terms are
imposed to establish a specific time
limit in response to requests from law
enforcement agencies. The FAA chose
120 days to allow response time for the
occasional undelivered certificate.
Given the time periods required to
submit the appropriate documentation
and the standard processing time, 180
days is excessive.
E. Conforming Amendments
Since this rule eliminates § 47.51, the
rule includes conforming amendments
to §§ 13.19 and 13.27 to remove the
references to § 47.51. This rule also
includes a conforming amendment to
§ 91.203(a)(2) to eliminate the reference
to the ‘‘pink copy’’ of the Aircraft
Registration Application.
V. Miscellaneous Comments
A. Re-Registration and Renewal
One commenter suggested sending
additional notices to an aircraft’s lessee,
secured party, or operator as known
parties that could ensure re-registration
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or renewal is accomplished in a timely
manner.
The aircraft registration regulations
identify the aircraft owner as the
responsible party to which the Registry
directs any communication. The FAA
cannot justify modifying the current
system to maintain addresses for parties
other than the registered aircraft owner.
Identifying these other interested parties
might require the FAA to perform a title
review of each aircraft’s records, which
contradicts the registered owner’s duty
to comply with all obligations it may
have under leases, security agreements,
or other contracts. Additionally, a
system of secondary addresses would
create a maintenance burden to keep
these addresses current.
One commenter stated that it is not
clear how this proposal would create a
net time savings for any party as the
cost/benefit analysis claims.
Neither the discussion in the NPRM
nor the cost/benefit analysis claimed
that there would be a net time savings
for any party.
One commenter suggested that the
FAA review the proposal and analyze
its impact on foreign airlines and for
conformity with other registration
requirements and commitments, such as
the Cape Town Convention on
International Interests in Mobile
Equipment.
The FAA agrees that U.S. civil aircraft
operated internationally must comply
with FAA as well as foreign operational
standards. Leases often state that the
lessee will comply with applicable
regulations and laws present and future.
The U.S. aircraft registration certificate
conforms to the model certificate
provided by the International Civil
Aviation Organization. The addition of
an expiration date is an enhancement
over the basic requirement. This
difference provides more confidence to
foreign officials that the aircraft is
properly registered. Validating
registration and placing a renewal
certificate in a U.S. registered aircraft
operated in another country has little
chance of conflicting with international
commitments. This rule has no effect on
the Cape Town Convention.
B. Risks and Disruption
Many commenters expressed concern
with the time, personnel, and
administrative costs associated with
implementing the rule as proposed.
These commenters thought the increase
in workload at the Registry would result
in critical backlogs that would
negatively affect both normal and rulerelated work.
The FAA understands that confidence
in the success of this final rule rests on
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the ability of the Registry to perform
without excessive backlogs. A portion of
the new work will be offset by the
elimination of the triennial report
program. Recent staffing changes and
upgrades to the electronic documents
processing systems will help streamline
the new workload. Additionally, online
‘‘no-change’’ re-registration application
filing and fee payments will be
available. No critical backlogs in reregistration, renewal, or normal
workload are expected as a result of this
final rule.
Several lessees commented that
lenders might modify contract
covenants to require additional reports
and assurances, or possibly withdraw
from lending due to the real or
perceived increase in uncertainty
created by the proposed rule.
This final rule creates certainty in the
registry database. Lenders, insurers, and
other interested parties will now be able
to verify whether the aircraft owner is
complying with any registration terms
and conditions contained in those
private contracts. The FAA believes this
rule will not be a factor in lenders
deciding whether to finance aircraft
transactions. Verifying or demonstrating
successful re-registration or renewal
may be done using the searchable
aircraft information feature on the FAA
Web site. The display for each aircraft
will show the issue date for its
certificate as well as the next expiration
date. Owners can download the
registration database and create reports
or populate their own fleet management
databases. Reports could then be
transmitted to a lender. With this
information available on the Web site,
and the 180-day and 60-day notices of
expiration sent to the aircraft owner,
investor confidence in the U.S. aviation
industry should remain essentially
unchanged by the implementation of
this final rule.
Several commenters stated that
expired registration could result in
litigation because the ownership of the
aircraft could be questioned.
Specifically, these commenters were
concerned that security interests filed
against the aircraft could be held invalid
or subordinate, thus exposing banks and
other lenders to economic losses.
The FAA has determined this final
rule will have no impact on priorities
established by recording those interests
at the FAA’s Aircraft Registry. The
United States ratified the Cape Town
Convention which, in addition to other
items, established an International
Registry for registering covered interests
in most commercial-sized aircraft.
Article 29 of the Cape Town Convention
firmly establishes that ‘‘a registered
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interest has priority over any other
interest subsequently registered and
over an unregistered interest.’’ The
continued priority of an interest
established by registering that interest
with the International Registry is not
dependent upon continued United
States civil aircraft registration. For
aircraft not covered by the Cape Town
Convention, security interests properly
filed and recorded at the FAA’s Aircraft
Registry are arguably provided
perpetual validity without further
recording. Registration expiration does
not change the ownership or otherwise
affect interests in an aircraft, but private
contract terms may affect those
interests. The records for all aircraft that
are currently on, or have been on, the
United States aircraft registry are
permanent records and will remain
available for review regardless of
registration status.
Several commenters stated that
expired registration could leave an
aircraft without insurance coverage
protecting its owner, lenders, lessee,
and passengers. Commenters suggest
that if an aircraft registration
inadvertently expires, the insurance
company might take the position that all
or some coverage does not apply.
The FAA is aware that the renewal
requirements of the final rule create a
recurring event with which an aircraft
owner may fail to comply. The
additional reminder notice and
enhanced registration information
available on the Registry Web site
should reduce the likelihood of an
inadvertent failure to maintain
registration. Aircraft owners who keep
their addresses up-to-date, respond
promptly to the reminder notices, and
alert their pilots not to operate aircraft
with expired certificates should avoid
operating without current registration.
A large number of commenters
thought that a lessor, particularly a
‘passive’ owner-trustee lessor for
multiple aircraft, could become liable to
the lessee and investors if the lessor
failed to obtain renewal certificates and
provide them to a lessee in time to place
them into the aircraft before expiration.
The lessor also might have difficulty
collecting any renewal fees fronted for
its lessee.
As stated in 49 U.S.C. chapter 441,
only the owner of an aircraft is eligible
to apply for registration. An owner’s
choice to assume a passive role does not
relieve it of its duties to comply with all
applicable registration regulations. The
FAA cannot justify tailoring the
registration regulations to accommodate
owners who choose to assume a passive
role. As discussed previously, the FAA
has modified this final rule so an owner
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will have sufficient time to obtain a reregistration or renewal certificate and
forward it to the lessee for placement in
the aircraft before the old certificate
expires.
C. Fees, User Fees, New Taxes
Several commenters saw this
rulemaking as an excuse to collect a
recurring user fee or tax. Others
acknowledged that the current $5
registration fee is too low. Some
contended the $45 and $130 fees
proposed in the FAA Reauthorization
bill were too high, arguing that an
equitable fee would be lower. Some
express concern the $130 fee would
apply every 3 years, claiming that fee is
too burdensome. One commenter saw
the registration fee as a penalty for those
who are late in meeting the deadline for
re-registration. Another commenter
offered that the full costs of aviation
need to be assumed by those rich
enough to buy and fly planes, not the
general taxpayers.
The NPRM proposed a $5.00 reregistration and renewal fee. This is a
new and recurring fee which matches
the current registration fee, even though
it is less than the estimated direct cost
of processing re-registration and
renewal actions. The Federal Aviation
Administration Reauthorization bill
(H.R. 915), if enacted as passed by the
House of Representatives on May 21,
2009, will provide the authority to
increase registration-related fees. The
projected fees are higher than current
fees but reflect only the direct and
applicable indirect unit costs of the
FAA Registry’s Aircraft Registration
Branch. The $130 registration fee
projected in the legislation would not
apply as the fee for re-registration or
renewal. If estimated by the same
method used for the reauthorization bill,
the fee for re-registration and renewal
would be about $45. Neither the
reauthorization bill, nor the NPRM,
proposed a registration fee that includes
a tax, user fee, or charge to generate
revenue for purposes other than
maintaining an accurate aircraft
registration database.
Two commenters contended the
increase in registration and renewal fees
might raise the cost of learning to fly
beyond the means of some students or
otherwise discourage individuals from
flying.
The FAA does not believe that these
higher fees would cause students not to
be able to learn to fly. Because this fee
would be paid by aircraft owners, the
costs could be prorated among flight
instruction sessions. Costs for each
student pilot would then be negligible.
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One commenter proposed a sliding
scale for people who have more than
one aircraft. Another mentioned that
these fees would affect general aviation
more severely than airlines. This same
commenter notes that the registration
fee for cars is reduced as the car ages.
Another requested the registration fee be
tied to the aircraft’s certificated gross
weight or type certification.
The fees discussed are based on the
costs to process aircraft registration, reregistration, or renewal. These costs are
the same for all aircraft. Therefore, the
use of sliding scales, number of aircraft
owned, weight, type, age, or value of an
aircraft to determine a fee would be
inconsistent with the cost recovery
nature of the fee.
Many commenters characterized the
proposed rule as, ‘‘penalizing the law
abiding citizens who provide the
information required by the
Government.’’ They suggest that the
FAA penalize those who do not comply
and raise revenue through punitive
actions focusing on the noncompliant
parties.
The FAA does not seek to penalize
the innocent and appreciates those
aircraft owners who have made a
conscientious effort to promptly report
any changes in their addresses or the
statuses of their aircraft. As discussed
earlier, many changes go unreported
each year. In light of the arguments
presented in the NPRM and this final
rule, recurrent expiration and renewal
of aircraft registration is the only
identified option that can clear
accumulated error from the registration
records and maintain it at an acceptable
level.
D. Alternatives Suggested by
Commenters
Several commenters suggested that
registration is or can be inspected as
part of an aircraft’s annual inspection.
Only the aircraft owner has the
knowledge sufficient to review, update,
and affirm the validity of an aircraft’s
registration information. Therefore, the
FAA has concluded that it is
inappropriate to include verification of
registration as part of an annual
inspection, which may not involve the
participation of the aircraft owner.
One commenter suggested a one-stop
FAA address change program, and
another suggested that the time given to
report an address change be extended
from 30 to 90 days.
The FAA processes multiple address
change requests when these requests
indicate the offices that need to be
notified. For example, if a pilot provides
an address update and indicates that it
also affects a specific aircraft that the
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pilot owns, the FAA updates both the
airmen and aircraft databases. Similarly,
the Web page for Airmen Certification
address updates has a reminder message
for pilots to also update any affected
aircraft records with a link to
instructions on how to do this. The
Registry accepts and processes address
updates whenever they are reported.
Extending the timeframe from 30 to 90
days would not lower the incidence of
bad addresses on file. It could however,
lower the perception that it is important
to promptly report address and other
registration changes.
Several commenters suggested the
FAA should capture address changes
from maintenance forms, DOT Form
6410, the State Registries, the Airmen
database, and from spot checks
conducted by Airworthiness Inspectors.
The Registry has routinely made use
of alternate resources to locate possible
current addresses. A few of these
include the Airmen Certification files,
the U.S. Postal Service Change of
Address database, returned surveys, and
airworthiness directive forms. The
Registry uses addresses from these
alternate sources to contact aircraft
owners and ask them to verify the
correct registration address. It should be
noted that while the FAA may be able
to locate an aircraft’s registered owner,
changes to the registration information
maintained on their aircraft can be
authorized only by the owner.
A few commenters suggested that a
title system for aircraft would provide
better information.
The commenters did not offer any
insight into how a title system would
provide better information than the
existing Certificate of Registration
system as modified by this final rule.
The FAA is authorized to modify its
system to include a system of titling
aircraft. (See 49 U.S.C. 44111(c)(1).)
However, the costs of converting to a
titling system would likely far outweigh
any benefits that would be derived.
Even with a titling system, some form of
initial and periodic updating of
information would still be necessary to
obtain and maintain the level of
accuracy this final rule will provide.
Several commenters suggested
exempting aircraft documented on Parts
121 and 135 maintenance certificates or
operated by Fractional or Flight
Department Operations.
Exempting any class of registered
aircraft would reduce the effectiveness
of this rule. All categories of aircraft
contribute to the registration errors this
rule seeks to correct and prevent from
accumulating in the future. Exempting
any group of registered aircraft would
also require the FAA to operate dual
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registries, which is operationally
impractical.
There were a few suggestions that
proposed exempting general aviation
aircraft, because ‘‘they are too small to
be a security risk’’ or ‘‘terrorists use big
airplanes.’’
The FAA does not agree. Large aircraft
are operated as general aviation aircraft
and all aircraft, regardless of size, are
important enough to be furnished
current safety information. Also, many
small and medium-sized aircraft have
been found suitable for drug running
and similar activities of interest to law
enforcement agencies.
Two commenters requested flexibility
in choosing renewal dates.
This suggestion was not accepted.
Allowing the choice of renewal date
would unnecessarily complicate both
the workflow of registration renewal
and the overall management of the
program. Keeping renewal dates linked
to an aircraft’s registration date ensures
that the Registry’s workload will occur
evenly through the year eliminating
potential recurring seasonal backlogs.
One commenter asked the FAA to
drop enforcement of the recent change
to Section 47.41(b)(3), which requires
return of registration certificates within
21 days of termination of registration.
This requirement creates a laborintensive chore when a fleet of aircraft
changes hands.
The FAA rejects the commenter’s
suggestion. The 21 days allowed for the
return of an ineffective registration
certificate provides a definite and
reasonable timeframe to take this action.
However, to avoid creating any
additional burden, this final rule has
changed § 47.41(b)(3) to direct the
holder to destroy an expired registration
certificate rather than return it to the
FAA.
One commenter suggested moving the
‘‘Sale Reported’’ time limit from
§ 47.15(i)(4) to § 47.35, Aircraft Last
Previously Registered in the United
States. This would enable a new owner
to see at a glance what their certificate
requirements are.
The FAA has determined that
§ 47.15(i), which addresses the 6-month
interval between filing an aircraft ‘‘Sale
Reported’’ notice and N-number
cancellation, is in the appropriate
location. Section 47.35 refers the reader
to § 47.15 and other sections with which
the new owner must comply. Owners
are encouraged to review all of part 47
to ensure compliance with registration
regulations.
One commenter suggested that an Nnumber assignment for aircraft entering
or re-entering the U.S. registration
system should be valid for 180 days
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instead of the 90 days presently
allowed.
The FAA does not agree. These
assignments are made to aircraft that are
entering the U.S. registration system and
need an N-number to place on their
application and supporting
documentation. Time is needed only for
entering the N-number on their
documents, delivering them to the
Registry, and for registration processing
time. If a delay arises that is out of the
applicant’s control, the applicant may
apply for an extension. Because these
aircraft may not operate until a
registration certificate is issued, these
applications receive priority processing.
If a longer lead time is needed, the
owner is encouraged to reserve an
N-number and make application for
assignment at the appropriate time.
One commenter, both a pilot and air
traffic controller, cautions that under no
circumstances should a controller be
concerned with Part 47, nor should an
aircraft in flight be denied air traffic
service and support.
This rule concerns re-registration,
registration, and renewal of aircraft
registration certificates. It is not
intended to address air traffic control
issues.
Several commenters suggested the
FAA should require re-registration and
renewal applicants to report total
airframe flight hours from a specific
date with an estimated breakdown of
that time by primary mission areas or
types of operation. The data collected
would enhance safety research and
measurement of safety improvement.
This suggestion is beyond the scope of
this final rule.
One commenter, an aviation parts
provider and Supplemental Type
Certificate holder, requests that a
primary key be assigned to aircraft
records available for download from the
Registry’s Web site. This would enable
data users to track individual records
through successive downloads even if
N-numbers, model names, or serial
numbers change and track which of
their products are in use on these
aircraft. Similar benefits would be
available to manufacturers, government,
and law enforcement agencies
depending on their applications.
Although this suggestion is beyond
the scope of this final rule, it will be
forwarded to the appropriate FAA
organization for consideration.
One commenter proposed revising
§ 47.33(a)(2) to allow use of an invoice
from a kit manufacturer as evidence of
ownership equal to a bill of sale.
This proposal is beyond the scope of
this rule. Section 47.33(b) provides an
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alternative method of establishing
aircraft ownership.
One commenter proposed replacing
the annual inspection requirement for
noncommercial aircraft with an
inspection requirement based on a
combination of flight hours and time
since last inspection. The longest
interval before inspection would be 3
years. This would save time and money
for the many aircraft owners of low use
aircraft without affecting safety.
This proposal is beyond the scope of
this rule. The commenter may submit
this proposal as its own project in
accord with CFR 14 Part 11 Basic
Rulemaking Procedures.
One commenter representing a
finance company disagreed with the
need for additional disclosures in
financing documents. The current level
of required exposure allows competitors
to undercut each others deals, reducing
income margins for finance companies.
This proposal is beyond the scope of
this rule.
VI. Rulemaking Notices and Analyses
A. Paperwork Reduction Act
As required by the Paperwork
Reduction Act of 1995 (44 U.S.C.
3507(d)), the FAA submitted a copy of
the new information collection
requirements in this final rule to the
Office of Management and Budget
(OMB) for its review. OMB assigned
OMB Control Number 2120–0729. 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 Office of Management
and Budget (OMB) control number.
A description of the annual burden is
shown below.
Description of Respondents: The
likely respondents to the information
requirements in this final rule are all
aircraft owners who want to continue
registration past the expiration date on
their Certificate. The FAA estimates the
number of renewals will be 65,719
annually; however, the number of
aircraft owners and the signature
requirements for each aircraft vary
depending on the registration type (e.g.,
individual, partnership, government, or
co-ownership).
Estimated Burden: Over 20 years, the
FAA estimates 1,308,873 forms will be
processed. Of these forms, 191,652 will
be for re-registration and 1,117,221 will
be for renewal. As described in the
Regulatory Evaluation, the FAA
estimates its own processing costs will
be $9.10 and $5.82, respectively, per
form. Over 20 years, these costs sum to
$8,246,259.42 (calculation: 191,652
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Fmt 4700
Sfmt 4700
times $9.10 plus 1,117,221 times $5.82),
for an annual cost of $412,312.97
(calculation: $8,246,259.42 divided by
20). The FAA estimates that it will take
0.185 hours to process each reregistration form and 0.122 hours to
process each renewal form. This
difference comes from the FAA’s
assumption that the percentage of
owners making application on the
Internet will increase in later years,
lowering the processing time for
renewals. Over 20 years, the time to
process all the re-registration and the
renewals forms equals 35,455.62
(35,455.62 = .185 × 191,652) hours and
136,300.98 (136,300.98 = .122 ×
1,117,221) hours respectively, for a total
burden of 171,756.60 hours, and an
average annual burden of 8,587.83
hours.
B. International Compatibility
In keeping with U.S. obligations
under the Convention on International
Civil Aviation, it is FAA policy to
conform to International Civil Aviation
Organization (ICAO) Standards and
Recommended Practices to the
maximum extent practicable. The FAA
has reviewed the corresponding ICAO
Standards and Recommended Practices.
ICAO Standards set forth a model
registration certificate. The FAA’s
certificate of registration will exceed the
standards in that model because it will
include an expiration date.
C. Regulatory Evaluation, Regulatory
Flexibility Determination, International
Trade Impact Assessment, and
Unfunded Mandates Assessment
Regulatory Flexibility Determination
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 (Pub. L. 96–354) requires
agencies to analyze the economic
impact of regulatory changes on small
entities. Third, the Trade Agreements
Act (Pub. L. 96–39) 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, that they 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
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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 with base year of 1995).
This portion of the preamble
summarizes the FAA’s analysis of the
economic impacts of this final rule. We
suggest readers seeking greater detail
read the full regulatory evaluation, a
copy of which we have placed in the
docket for this rulemaking.
In conducting these analyses, FAA
has determined that this rule: (1) Has
benefits that justify its costs, (2) is not
an ‘‘economically significant regulatory
action’’ but is a ‘‘significant regulatory
action’’ for other reasons as defined in
section 3(f) of Executive Order 12866,
(3) is ‘‘significant’’ as defined in DOT’s
Regulatory Policies and Procedures; (4)
will not have a significant economic
impact on a substantial number of small
41977
entities; (5) will not create unnecessary
obstacles to the foreign commerce of the
United States; and (6) will not impose
an unfunded mandate on state, local, or
tribal governments, or on the private
sector by exceeding the threshold
identified above. These analyses are
summarized below.
Summary
Total Costs and Benefits of this
Rulemaking
SUMMARY OF COSTS AND BENEFITS IN MILLIONS OF 2007 DOLLARS
[Over 20 years]
Cost
Re-registration and 3-Year Renewal (Triennial Eliminated) ..........................
This rule will mandate that all aircraft
owners reregister their aircraft over a
3-year period, and then renew these
registrations on a 3-year basis. Total
estimated costs, over 20 years is $29.9
million ($16.3 million, present value).
These costs include both the costs to
aircraft owners as well as processing
costs for the Civil Aircraft Registry and
include costs savings from the
elimination of the Triennial Program.
The primary benefit of this
rulemaking will be the increased
accuracy of the records within the
Aircraft Registry. Currently,
approximately one third of registered
aircraft information is incorrect. The
FAA has concluded that the level of
accuracy in the system of records must
be significantly improved in order to
better serve the needs of the users of the
system as well as support its own
operations. Benefits will accrue from
improving the database as well as
improving the data collection process.
Who is potentially affected by this
rulemaking?
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
There are currently about 357,000
registered aircraft, of which about
241,000 are active aircraft. The FAA
expects about 245,000 aircraft to
reregister and then, every 3 years, renew
their certificate. The FAA also expects
between an additional 3,424 new
aircraft to register each year.
Government
This rule will increase the workload
on the Civil Aviation Registry, which
will have to process an additional 1.3
million renewal and registration
certificates over a 20-year period.
However, this additional work will be
15:05 Jul 19, 2010
Jkt 220001
$29.9
partially offset by the elimination of the
Triennial Aircraft Registration Program.
Our Cost Assumptions and Sources of
Information
• Discount rate—7%;
• Period of analysis—2010 through
2029;
• All monetary values are expressed
in 2007 dollars;
• The FAA based projections on a
1.4% annual growth rate
• The FAA will use the following
unit costs:
(a) $5—fee per aircraft for both reregistration and renewal
(b) $37.20—hourly rate of an aircraft
owner’s time
(c) $9.10—FAA processing costs for
re-registration per applicant
(d) $5.82—FAA processing costs for
renewal per applicant
(e) $1.63—FAA processing costs for
the Triennial Program for each notice
sent
(f) $16.80—FAA processing costs for
the Triennial Program per reply
Benefits of This Rulemaking
Private Sector
VerDate Mar<15>2010
Present value
of cost
The primary benefit of this
rulemaking will be the increased
accuracy of the records within the
Aircraft Registry. Currently, over one
third of registered aircraft information is
incorrect. Inaccurate records have many
negative consequences. For example,
FAA uses aircraft records to identify
owners of specific aircraft so that safety
related information, such as
airworthiness directives (ADs), can be
delivered to those owners, but because
of inaccuracies, many safety-related
mailings are returned without delivery.
Aircraft manufacturers also use aircraft
records for the same reasons, to send out
safety-related information. Law
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$16.3
Benefit
Reduction in Error Rate by 31%.
enforcement and security agencies rely
upon FAA’s aircraft records to identify
and locate owners of aircraft.
The FAA has concluded that the level
of accuracy in the system of records
must be significantly improved in order
to better serve the needs of the users of
the system as well as support its own
operations. Specifically, benefits will
accrue from improving the database as
well as improving the data collection
process. The benefits from improving
the Registry database include cost
savings, better service for aircraft
owners, and help with law enforcement.
The benefits to be realized by improving
the data collection process also include
cost savings as well as a more accurate
response rate.
Costs of This Rulemaking
This rulemaking requires that all
aircraft owners will have to re-register
their aircraft during a 3-year period, that
all aircraft registrations will need to be
renewed every 3 years, and that the
present Triennial Program is eliminated
in its entirety.
The FAA estimates that
approximately 244,600 aircraft will each
go through the re-registration process,
and so will be issued a new registration
certificate. Following re-registration
aircraft will renew their registration
every 3 years. In calculating the costs of
the rule, the FAA counts the number of
aircraft transactions that result from
either re-registration or renewal.
Moreover, FAA did not include the cost
of normal course of business
registrations and the $5 fee because the
fee is an economic transfer. These costs
are recognized in a separate section in
the rule but are not included in the total
cost of the rule.
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The FAA estimates that over 20 years
the Registry will process 1.3 million
certificate actions, composed of reregistration and renewal. However, the
Registry will achieve cost savings with
the elimination of the Triennial
Program. Over 20 years, the rule
replaces the current system with a 3year re-registration program, followed
by a 3-year renewal cycle that is
estimated to cost $29.9 million ($16.3
million, present value).
Final Regulatory Flexibility
Determination
The Regulatory Flexibility Act of 1980
(Pub. L. 96–354) (RFA) establishes ‘‘as a
principle of regulatory issuance that
agencies shall endeavor, consistent with
the objectives of the rule and of
applicable statutes, to fit regulatory and
informational requirements to the scale
of the businesses, organizations, and
governmental jurisdictions subject to
regulation. To achieve this principle,
agencies are required to solicit and
consider flexible regulatory proposals
and to explain the rationale for their
actions to assure that such proposals are
given serious consideration.’’ The RFA
covers a wide range of small entities,
including small businesses, not-forprofit organizations, and small
governmental jurisdictions.
Agencies must perform a review to
determine whether a 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
RFA.
However, if an agency determines that
a rule is not expected to have a
significant economic impact on a
substantial number of small entities,
section 605(b) of the 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 final rule will affect all aircraft
owners, through part 47, as all aircraft
owners will be required to reregister and
then periodically renew their aircraft.
There will be a substantial number of
small entities. However, the cost to
small entities will be negligible. The
total cost per certificate to an aircraft
owner is about $24, which includes the
value of time to complete the form plus
the $5 registration fee. An aircraft owner
will renew his or her certificate, on
average, six more times over a 20-year
period for a total of seven certificate
actions. Seven certificate actions will
result in costs of $168 over 20 years for
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15:05 Jul 19, 2010
Jkt 220001
an average cost of $8 per year. In
addition, the FAA did not receive
comments on the regulatory flexibility
analysis. Therefore, as Administrator of
the FAA, I certify that this final rule will
not have a significant economic impact
on a substantial number of small
entities.
International Trade Analysis
The Trade Agreements Act of 1979
(Pub. L. 96–39), as amended by the
Uruguay Round Agreements Act (Pub.
L. 103–465), prohibits Federal agencies
from establishing standards or engaging
in related activities that create
unnecessary obstacles to the foreign
commerce of the United States.
Pursuant to these Acts, the
establishment of standards is not
considered an unnecessary obstacle to
the foreign commerce of the United
States, so long as the standard has a
legitimate domestic objective, such as
the protection of safety, and does not
operate in a manner that excludes
imports that meet this objective. 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 final rule and
determined that it will have only a
domestic impact and therefore will not
create unnecessary obstacles to the
foreign commerce of the United States.
Unfunded Mandates Assessment
Title II of the Unfunded Mandates
Reform Act of 1995 (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 $143.1
million in lieu of $100 million.
This rule does not contain such a
mandate. The requirements of Title II do
not apply.
D. Executive Order 13132, Federalism
The FAA has analyzed this final rule
under the principles and criteria of
Executive Order 13132, Federalism. The
FAA has determined that this action
will not have a substantial direct effect
on the States, or the relationship
between the Federal Government and
the States, or on the distribution of
power and responsibilities among the
various levels of government, and,
PO 00000
Frm 00016
Fmt 4700
Sfmt 4700
therefore, does not have federalism
implications.
E. 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
rulemaking action qualifies for the
categorical exclusion identified in
paragraph 312(d) and involves no
extraordinary circumstances.
F. Regulations That Significantly Affect
Energy Supply, Distribution, or Use
The FAA has analyzed this final rule
under Executive Order 13211, Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). The
FAA has determined that it is not a
‘‘significant regulatory action’’ under the
executive order because, while a
‘‘significant regulatory action’’ under
Executive Order 12866, and DOT’s
Regulatory Policies and Procedures, it is
not likely to have a significant adverse
effect on the supply, distribution, or use
of energy.
G. Availability of Rulemaking
Documents
You can get an electronic copy of
rulemaking documents using the
Internet by—
1. Searching the Federal eRulemaking
Portal (https://www.regulations.gov);
2. Visiting the FAA’s Regulations and
Policies Web page at https://
www.faa.gov/regulations_policies/; or
3. Accessing the Government Printing
Office’s Web page at https://
www.gpoaccess.gov/fr/.
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 amendment number or
docket number of this rulemaking.
Anyone is able to search the
electronic form of all comments
received into any of the FAA’s dockets
by the name of the individual
submitting the comment (or signing the
comment, if submitted 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
(Volume 65, Number 70; Pages 19477–
78) or you may visit https://
DocketsInfo.dot.gov.
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H. Small Business Regulatory
Enforcement Fairness Act
■
■
The Small Business Regulatory
Enforcement Fairness Act (SBREFA) of
1996 requires the FAA to comply with
small entity requests for information or
advice about compliance with statutes
and regulations within its jurisdiction. If
you are a small entity and you have a
question regarding this document, you
may contact your local FAA official, or
the person listed under the FOR FURTHER
INFORMATION CONTACT heading at the
beginning of the preamble. You can find
out more about SBREFA on the Internet
at https://www.faa.gov/
regulations_policies/rulemaking/
sbre_act/.
§ 13.27 Final order of Hearing Officer in
certificate of aircraft registration
proceedings.
(a) If, in proceedings under section
501(b) of the Federal Aviation Act of
1958 (49 U.S.C. 1401), the Hearing
Officer determines that the aircraft is
ineligible for a Certificate of Aircraft
Registration, the Hearing Officer shall
suspend or revoke the respondent’s
certificate, as proposed in the notice of
proposed certificate action.
*
*
*
*
*
§§ 47.9, 47.33, and 47.35
List of Subjects
14 CFR Part 13
Administrative practice and
procedure, air transportation,
Investigations, Law enforcement,
Penalties.
14 CFR Part 91
5. Amend 14 CFR part 47 by removing
the words ‘‘FAA Aircraft Registry’’ and
‘‘FAA Registry’’ wherever they appear
and adding, in their place, the word
‘‘Registry’’.
§§ 47.5, 47.7, 47.9, 47.11, 47.35, and 47.37
[Amended]
6. Amend 14 CFR part 47 by removing
the words ‘‘Application for Aircraft
Registration’’ and ‘‘application’’ and
adding, in their place, the words
‘‘Aircraft Registration Application, AC
Form 8050–1’’ in the following places:
■ a. § 47.5(a)
■ b. § 47.7(a)
■ c. § 47.9(a) introductory text
■ d. § 47.11 (introductory text)
■ e. § 47.35(a) introductory text
■ f. § 47.37(a)(2)
■
Aircraft.
The Amendment
In consideration of the foregoing, the
Federal Aviation Administration
amends Chapter I of Title 14, Code of
Federal Regulations as follows:
■
PART 13—INVESTIGATIVE AND
ENFORCEMENT PROCEDURES
1. The authority citation for part 13
continues to read as follows:
■
Authority: 18 U.S.C. 6002; 28 U.S.C. 2461
(note); 49 U.S.C. 106(g), 5121–5128, 40113–
40114, 44103–44106, 44702–44703, 44709–
44710, 44713, 46101–46111, 46301, 46302
(for a violation of 49 U.S.C. 46504), 46304–
46316, 46318, 46501–46502, 46504–46507,
47106, 47107, 47111, 47122, 47306, 47531–
47532; 49 CFR 1.47.
2. Revise the fourth sentence of
paragraph (b) of § 13.19 to read as
follows:
■
*
*
*
*
(b) * * * If the Administrator finds
that any aircraft registered under Part 47
of this chapter is ineligible for
registration, the Administrator issues an
order suspending or revoking that
certificate. * * *
*
*
*
*
*
■ 3. Revise paragraph (a) of § 13.27 to
read as follows:
15:05 Jul 19, 2010
Jkt 220001
§§ 47.5, 47.7, and 47.11
[Amended]
7. Amend 14 CFR part 47 by removing
the words ‘‘Application for Aircraft
Registration’’ and ‘‘application’’ and
adding, in their place, the words
‘‘Aircraft Registration Application’’ in
the following places:
■ a. § 47.5(c)
■ b. § 47.7(c)(2) introductory text
■ c. § 47.11(h)
■
§§ 47.5, 47.7, 47.8, 47.11, 47.31, and 47.43
[Amended]
Certificate action.
*
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Authority: 4 U.S.T. 1830; Pub. L. 108–297,
118 Stat. 1095 (49 U.S.C. 40101 note, 49
U.S.C. 44101 note); 49 U.S.C. 106(g), 40113–
40114, 44101–44108, 44110–44113, 44703–
44704, 44713, 45302, 46104, 46301.
■
Aircraft, Reporting and recordkeeping
requirements.
VerDate Mar<15>2010
4. The authority citation for part 47
continues to read as follows:
■
Part 47—[Nomenclature change]
14 CFR Part 47
§ 13.19
PART 47—AIRCRAFT REGISTRATION
8. Amend 14 CFR part 47 by removing
the words ‘‘Certificate of Aircraft
Registration’’ and ‘‘registration
certificate’’ and adding in their place,
the words ‘‘Certificate of Aircraft
Registration, AC Form 8050–3’’ in the
following places:
■ a. § 47.5(c)
■ b. § 47.7(d) introductory text
■ c. § 47.8(c)
■ d. § 47.11(e)
■
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Sfmt 4700
41979
e. § 47.31(a) introductory text
f. § 47.43 (b)
[Amended]
9. Amend 14 CFR part 47 by removing
the word ‘‘Administrator’’ and adding, in
its place, the word ‘‘FAA’’ in the
following places:
■ a. § 47.9(e)
■ b. § 47.33(b) and 47.33(d)
■ c. § 47.35(b)
■ 10. Revise § 47.1 to read as follows:
■
§ 47.1
Applicability.
This part prescribes the requirements
for registering aircraft under 49 U.S.C.
44101–44104. Subpart B applies to each
applicant for, and holder of, a Certificate
of Aircraft Registration, AC Form
8050–3. Subpart C applies to each
applicant for, and holder of, a Dealer’s
Aircraft Registration Certificate, AC
Form 8050–6.
■ 11. Amend § 47.2 by adding the
definition of ‘‘Registry’’ in alphabetical
order and by revising paragraphs (2) and
(3) of the definition of ‘‘U.S. citizen’’ to
read as follows:
§ 47.2
Definitions.
*
*
*
*
*
Registry means the FAA, Civil
Aviation Registry, Aircraft Registration
Branch.
*
*
*
*
*
U.S. citizen * * *
(2) A partnership each of whose
partners is an individual who is a
citizen of the United States.
(3) A corporation or association
organized under the laws of the United
States or a State, the District of
Columbia, or a territory or possession of
the United States, of which the
president and at least two-thirds of the
board of directors and other managing
officers are citizens of the United States,
which is under the actual control of
citizens of the United States, and in
which at least 75 percent of the voting
interest is owned or controlled by
persons that are citizens of the United
States.
■ 12. Amend § 47.3 by:
■ a. Removing the citation ‘‘§ 47.31(b)’’
where it appears in paragraph (b)(2) and
adding in its place the citation
‘‘§ 47.31(c)’’; and
■ b. Revising paragraph (a) to read as
follows:
§ 47.3
Registration required.
(a) An aircraft may be registered
under 49 U.S.C. 44103 only when the
aircraft is not registered under the laws
of a foreign country and is—
(1) Owned by a citizen of the United
States;
(2) Owned by an individual citizen of
a foreign country lawfully admitted for
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permanent residence in the United
States;
(3) Owned by a corporation not a
citizen of the United States when the
corporation is organized and doing
business under the laws of the United
States or a State within the United
States, and the aircraft is based and
primarily used in the United States; or
(4) An aircraft of—
(i) The United States Government; or
(ii) A State, the District of Columbia,
a territory or possession of the United
States, or a political subdivision of a
State, territory, or possession.
*
*
*
*
*
■ 13. Revise the first sentence of
§ 47.7(d) introductory text to read as
follows:
§ 47.7 United States citizens and resident
aliens.
*
*
*
*
*
(d) Partnerships. A partnership may
apply for a Certificate of Aircraft
Registration, AC Form 8050–3, under 49
U.S.C. 44102 only if each partner,
whether a general or limited partner, is
an individual who is a citizen of the
United States. * * *
*
*
*
*
*
§ 47.8
[Amended]
14. Amend § 47.8(c) by removing the
citation ‘‘§ 47.41(a)(5)’’ and adding, in its
place, the citation ‘‘§ 47.41(a)(3)’’.
■
§ 47.11
[Amended]
15. Amend § 47.11(b)(1) by removing
the words ‘‘certificate of repossession on
FAA Form 8050–4’’ and adding, in its
place, the words ‘‘Certificate of
Repossession of Encumbered Aircraft,
FAA Form 8050–4’’.
■ 16. Amend § 47.13 by revising
paragraphs (a) through (f) to read as
follows:
■
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§ 47.13 Signatures and instruments made
by representatives.
(a) Each person signing an Aircraft
Registration Application, AC Form
8050–1, or a document submitted as
supporting evidence under this part,
must sign in ink or by other means
acceptable to the FAA. If signed in ink,
the Aircraft Registration Application
must also have the typed or legibly
printed name of each signer in the
signature block.
(b) When one or more persons doing
business under a trade name submits an
Aircraft Registration Application, a
document submitted as supporting
evidence under this part, or a request for
cancellation of a Certificate of Aircraft
Registration, AC Form 8050–3, the
application, document, or request must
be signed by, or on behalf of, each
person who shares title to the aircraft.
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(c) When an agent submits an Aircraft
Registration Application, a document
submitted as supporting evidence under
this part, or a request for cancellation of
a Certificate of Aircraft Registration, on
behalf of the owner, that agent must—
(1) State the name of the owner on the
application, document, or request;
(2) Sign as agent or attorney-in-fact on
the application, document, or request;
and
(3) Submit a signed power of attorney,
or a true copy thereof certified under
§ 49.21 of this chapter, with the
application, document, or request.
(d) When a corporation submits an
Aircraft Registration Application, a
document submitted as supporting
evidence under this part, or a request for
cancellation of a Certificate of Aircraft
Registration, it must—
(1) Have an authorized person sign, by
means acceptable to the FAA, the
application, document, or request;
(2) Show the title of the signer’s office
on the application, document, or
request; and
(3) Submit a copy of the authorization
from the board of directors to sign for
the corporation, certified as true under
§ 49.21 of this chapter by a corporate
officer or other person in a managerial
position therein, with the application,
document, or request, unless—
(i) The signer of the application,
document, or request is a corporate
officer or other person in a managerial
position in the corporation and the title
of his office is stated in connection with
his signature; or
(ii) A valid authorization to sign is on
file at the Registry.
(4) The provisions of paragraph (d)(3)
of this section do not apply to an
irrevocable deregistration and export
request authorization when an
irrevocable deregistration and export
request authorization under the Cape
Town Treaty is signed by a corporate
officer and is filed with the Registry.
(e) When a partnership submits an
Aircraft Registration Application, a
document submitted as supporting
evidence under this part, or a request for
cancellation of a Certificate of Aircraft
Registration, it must—
(1) State the full name of the
partnership on the application,
document, or request;
(2) State the name of each general
partner on the application, document, or
request; and
(3) Have a general partner sign the
application, document, or request.
(f) When co-owners, who are not
engaged in business as partners, submit
an Aircraft Registration Application, a
document submitted as supporting
evidence under this part, or a request for
PO 00000
Frm 00018
Fmt 4700
Sfmt 4700
cancellation of a Certificate of Aircraft
Registration, each person who shares
title to the aircraft under the
arrangement must sign the application,
document, or request.
*
*
*
*
*
■ 17. Amend § 47.15 by:
■ a. Removing the word ‘‘identification’’
wherever it appears, including the
section heading, and adding, in its place
the word ‘‘registration’’;
■ b. Revising paragraphs (a)
introductory text, (a)(2), (c), the first
sentence of paragraph (d), and (f);
■ c. Redesignating the undesignated
paragraph following paragraph (a)(3) as
(a)(4) and revising it; and
■ d. Adding paragraphs (i) and (j) to
read as set forth below.
§ 47.15
Registration number.
(a) Number required. An applicant for
aircraft registration must place a U.S.
registration number (registration mark)
on the Aircraft Registration Application,
AC Form 8050–1, and on any evidence
submitted with the application. There is
no charge for the assignment of numbers
provided in this paragraph. This
paragraph does not apply to an aircraft
manufacturer who applies for a group of
U.S. registration numbers under
paragraph (c) of this section; a person
who applies for a special registration
number under paragraphs (d) through (f)
of this section; or a holder of a Dealer’s
Aircraft Registration Certificate, AC
Form 8050–6, who applies for a
temporary registration number under
47.16.
*
*
*
*
*
(2) Aircraft last previously registered
in the United States. Unless the
applicant applies for a different number
under paragraphs (d) through (f) of this
section, the applicant must place the
U.S. registration number that is already
assigned to the aircraft on the Aircraft
Registration Application, and the
supporting evidence. If there is no
number assigned, the applicant must
obtain a U.S. registration number from
the Registry by making a written request
that describes the aircraft by make,
model, and serial number.
*
*
*
*
*
(4) Duration of a U.S. registration
number assignment. Authority to use
the registration number obtained under
paragraph (a)(1), (2), or (3) of this
section expires 90 days after the date it
is issued unless the applicant submits
an Aircraft Registration Application and
complies with § 47.33 or § 47.37, as
applicable, within that period of time.
However, the applicant may obtain an
extension of this 90-day period from the
Registry if the applicant shows that the
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delay in complying with that section is
due to circumstances beyond the
applicant’s control.
*
*
*
*
*
(c) An aircraft manufacturer may
apply to the Registry for enough U.S.
registration numbers to supply
estimated production for the next 18
months. There is no charge for this
allocation of numbers.
(d) Any available, unassigned U.S.
registration number may be assigned as
a special registration number. * * *
*
*
*
*
*
(f) The Registry authorizes a special
registration number change on the
Assignment of Special Registration
Numbers, AC Form 8050–64. The
authorization expires one year from the
date the Registry issues an Assignment
of Special Registration Numbers unless
the special registration number is
permanently placed on the aircraft.
Within five days after the special
registration number is placed on the
aircraft, the owner must complete and
sign the Assignment of Special
Registration Numbers, state the date the
number was placed on the aircraft, and
return the original form to the Registry.
The duplicate of the Assignment of
Special Registration Numbers and the
present Certificate of Aircraft
Registration, AC Form 8050–3, must be
carried in the aircraft as temporary
authority to operate it. This temporary
authority is valid until the date the
owner receives the revised Certificate of
Aircraft Registration showing the new
registration number, but in no case is it
valid for more than 120 days from the
date the number is placed on the
aircraft.
*
*
*
*
*
(i) When aircraft registration has
ended, as described in § 47.41(a), the
assignment of a registration number to
an aircraft is no longer authorized for
use except as provided in § 47.31(c) and
will be cancelled:
(1) Following the date established in
§ 47.40(a)(1) for any aircraft that has not
been re-registered under § 47.40(a);
(2) Following the expiration date
shown on the Certificate of Aircraft
Registration for any aircraft whose
registration has not been renewed under
§ 47.40(c);
(3) Following the expiration date
shown on the Dealer’s Aircraft
Registration Certificate, AC Form 8050–
6, for any aircraft registered under
Subpart C of this part, when the
certificate has not been renewed, and
the owner has not applied for
registration in accordance with § 47.31;
or
(4) When ownership has transferred—
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41981
(i) Six months after first receipt of
notice of aircraft sale or evidence of
ownership from the last registered
owner or successive owners, and an
Aircraft Registration Application has
not been received.
(ii) Six months after evidence of
ownership authorized under § 47.67 has
been submitted, and the applicant has
not met the requirements of this part.
(iii) Twelve months after a new owner
has submitted evidence of ownership
and an Aircraft Registration Application
under § 47.31, and the applicant or a
successive applicant has not met the
requirements of this part.
(j) At the time an assignment of
registration number is cancelled, the
number may be reserved for one year in
the name of the last owner of record if
a request has been submitted with the
fee required by § 47.17. If the request for
reservation and fee are not submitted
prior to cancellation, the registration
number is unavailable for assignment
for a period of five years.
(c) After compliance with paragraph
(a) of this section, the applicant for
registration of an aircraft last previously
registered in the United States must
carry the second copy of the Aircraft
Registration Application in the aircraft
as temporary authority to operate
without registration.
(1) This temporary authority is valid
for operation within the United States
until the date the applicant receives the
Certificate of Aircraft Registration or
until the date the FAA denies the
application, but in no case for more than
90 days after the date the applicant
signs the application. If by 90 days after
the date the applicant signs the Aircraft
Registration Application, the FAA has
neither issued the Certificate of Aircraft
Registration nor denied the application,
the Registry will issue a letter of
extension that serves as authority to
continue to operate the aircraft without
registration while it is carried in the
aircraft.
(2) This temporary authority is not
available in connection with any
§ 47.16 [Amended]
Aircraft Registration Application
■ 18. Amend § 47.16(a) by removing the
received when 12 months have passed
words ‘‘Dealer’s Aircraft Registration
since the receipt of the first application
Certificates’’ and adding, in their place,
the words ‘‘Dealer’s Aircraft Registration following transfer of ownership by the
last registered owner.
Certificates, AC Form 8050–6,’’.
■ 19. Amend § 47.17 by revising
(3) If there is no registration number
paragraphs (a)(4), (a)(5), and (a)(6) and
assigned at the time application for
adding paragraph (a)(7) as set forth
registration is made, the second copy of
below:
the Aircraft Registration Application
may not be used as temporary authority
§ 47.17 Fees.
to operate the aircraft.
(a) * * *
■ 21. Amend § 47.33 by removing the
word ‘‘identification’’ where it appears
(4) Special registration number
in paragraph (c), and adding, in its
(each number) ...............................
10.00
place, the word ‘‘registration’’; and
(5) To change, reassign, or reserve
a registration number ....................
10.00 revising paragraph (a)(2) to read as
follows:
(6) Replacement Certificate of Aircraft Registration ...........................
(7) Re-registration or Renewal Certificate of Aircraft Registration .......
2.00
5.00
*
*
*
*
*
■ 20. Amend § 47.31 as follows:
■ a. Revise paragraph (a)(1) to read as
set forth below;
■ b. Remove the words ‘‘Aircraft Bill of
Sale, ACC Form 8050–2’’ where they
appear in paragraph (a)(2), and add, in
their place, the words ‘‘Aircraft Bill of
Sale, AC Form 8050–2’’;
■ c. Revise paragraph (c) to read as set
forth below; and
■ d. Remove paragraph (d).
The revisions read as follows:
§ 47.31
Application.
(a) * * *
(1) An Aircraft Registration
Application, AC Form 8050–1, signed
by the applicant in the manner
prescribed by § 47.13;
*
*
*
*
*
PO 00000
Frm 00019
Fmt 4700
Sfmt 4700
§ 47.33 Aircraft not previously registered
anywhere.
(a) * * *
(2) Submits with his Aircraft
Registration Application, AC Form
8050–1, an Aircraft Bill of Sale, AC
Form 8050–2, signed by the seller, an
equivalent bill of sale, or other evidence
of ownership authorized by § 47.11.
*
*
*
*
*
■ 22. Revise § 47.39 to read as follows:
§ 47.39
Effective date of registration.
An aircraft is registered on the date
the Registry determines that the
submissions meet the requirements of
this part. The effective date of
registration is shown by a date stamp on
the Aircraft Registration Application,
AC Form 8050–1, and as the date of
issue on the Certificate of Aircraft
Registration, AC Form 8050–3.
■ 23. Add § 47.40 to read as follows:
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§ 47.40 Registration expiration and
renewal.
2010, expires on the expiration date
identified in the following schedule that
corresponds with the month in which
the certificate was issued.
If the certificate was issued in:
The certificate expires on:
The owner must apply for re-registration between these dates—to allow delivery of the
new certificate before expiration
March of any year .............................................
April of any year ................................................
May of any year .................................................
June of any year ................................................
July of any year .................................................
August of any year ............................................
September of any year ......................................
October of any year ...........................................
November of any year .......................................
December of any year .......................................
January of any year ...........................................
February of any year .........................................
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
(a) Re-registration. Each aircraft
registered under this part before October
1, 2010, must be re-registered in
accordance with this paragraph (a).
(1) A Certificate of Aircraft
Registration issued before October 1,
March 31, 2011 ................................................
June 30, 2011 ..................................................
September 30, 2011 .........................................
December 31, 2011 ..........................................
March 31, 2012 ................................................
June 30, 2012 ..................................................
September 30, 2012 .........................................
December 31, 2012 ..........................................
March 31 2013 .................................................
June 30, 2013 ..................................................
September 30, 2013 .........................................
December 31, 2013 ..........................................
November 1, 2010 and January 31, 2011.
February 1, 2011 and April 30, 2011.
May 1, 2011 and July 31, 2011.
August 1, 2011 and October 31, 2011.
November 1, 2011 and January 31, 2012.
February 1, 2012 and April 30, 2012.
May 1, 2012 and July 31, 2012.
August 1, 2012 and October 31, 2012.
November 1, 2012 and January 31, 2013.
February 1, 2013 and April 30, 2013.
May 1, 2013 and July 31, 2013.
August 1, 2013 and October 31, 2013.
(2) Each holder of a Certificate of
Aircraft Registration, AC Form 8050–3,
issued before October 1, 2010, must
submit an Application for Aircraft Reregistration, AC Form 8050–1A, and the
fee required by § 47.17, between October
1, 2010, and December 31, 2013,
according to the schedule in paragraph
(a)(1) of this section.
(3) A Certificate of Aircraft
Registration issued under this paragraph
expires three years after the last day of
the month in which it is issued.
(b) Initial Registration. A Certificate of
Aircraft Registration issued in
accordance with § 47.31 expires three
years after the last day of the month in
which it is issued.
(c) Renewal. Each holder of a
Certificate of Aircraft Registration, AC
Form 8050–3, containing an expiration
date may apply for renewal by
submitting an Application for Aircraft
Registration Renewal, AC Form 8050–
1B, and the fee required by § 47.17
during the six months preceding the
expiration date. A certificate issued
under this paragraph expires three years
from the expiration date of the previous
certificate.
■ 24. Amend § 47.41 by—
■ a. Removing paragraphs (a)(2) and
(a)(4);
■ b. Redesignating paragraph (a)(3) as
(a)(2) and paragraphs (a)(5) through
(a)(9) as paragraphs (a)(3) through (a)(7);
■ c. Removing the semi-colon at the end
of paragraphs (a)(1) through (a)(4) and
adding in their place a period, and
removing the phrase ‘‘; or’’ at the end of
newly redesignated paragraph (a)(5) and
adding, in its place, a period; and
■ d. Revising the introductory text of
paragraph (a), revising paragraph (b)(3),
and adding paragraph (b)(4) to read as
follows:
§ 47.41
owner’s physical address or location.
Upon acceptance, the Registry will
issue, without charge, a revised
Certificate of Aircraft Registration, AC
Form 8050–3, reflecting the new mailing
address. When a post office box or
mailing drop is used for mailing
purposes, and the registered owner’s
physical address or location changes,
the registered owner must notify the
Registry in writing of the new address
or location within 30 days.
■ 27. Amend § 47.47 by revising the
introductory text of paragraph (a) and
paragraph (a)(1) as follows:
VerDate Mar<15>2010
15:05 Jul 19, 2010
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Duration and return of Certificate.
(a) Each Certificate of Aircraft
Registration, AC Form 8050–3, issued
by the FAA under this subpart is
effective, unless registration has ended
by reason of having been revoked,
canceled, expired, or the ownership is
transferred, until the date upon which
one of the following events occurs:
*
*
*
*
*
(b) * * *
(3) Within 21 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, except in the case of
expired certificates, the holder must
destroy the expired certificate.
(4) If the certificate is not available for
return, as directed in paragraph (b) of
this section, a statement describing the
aircraft and stating the reason the
certificate is not available must be
submitted to the Registry within the
time required by paragraph (b) of this
section.
■ 25. Revise § 47.43(b) to read as
follows:
§ 47.43
Invalid registration.
*
*
*
*
*
(b) If the registration of an aircraft is
invalid under paragraph (a) of this
section, the holder of the invalid
Certificate of Aircraft Registration, AC
Form 8050–3, must return it as soon as
possible to the Registry.
■ 26. Revise § 47.45 to read as follows:
§ 47.45
Change of address.
Within 30 days after any change in a
registered owner’s mailing address, the
registered owner must notify the
Registry in writing of the change of
address. If a post office box or mailing
drop is used for mailing purposes, the
registered owner also must provide that
PO 00000
Frm 00020
Fmt 4700
Sfmt 4700
§ 47.47 Cancellation of Certificate for
export purpose.
(a) The holder of a Certificate of
Aircraft Registration, AC Form 8050–3,
or the holder of an irrevocable
deregistration and export request
authorization recognized under the
Cape Town Treaty and filed with the
FAA, who wishes to cancel the
Certificate of Aircraft Registration for
the purpose of export must submit to
the Registry—
(1) A written request for cancellation
of the Certificate of Aircraft Registration
describing the aircraft by make, model,
and serial number, and stating the U.S.
registration number and the country to
which the aircraft will be exported;
*
*
*
*
*
■ 28. Revise § 47.49 to read as follows:
§ 47.49
Replacement of Certificate.
(a) If the original Certificate of Aircraft
Registration, AC Form 8050–3, is lost,
stolen, or mutilated, the registered
owner may submit to the Registry a
written request that states the reason a
replacement certificate is needed and
the fee required by § 47.17. The Registry
will send a replacement certificate to
the registered owner’s mailing address
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Federal Register / Vol. 75, No. 138 / Tuesday, July 20, 2010 / Rules and Regulations
or to another mailing address if
requested in writing by the registered
owner.
(b) The registered owner may request
a temporary Certificate of Aircraft
Registration pending receipt of a
replacement certificate. The Registry
issues a temporary Certificate of Aircraft
Registration in the form of a fax that
must be carried in the aircraft until
receipt of the replacement certificate.
§ 47.67
§ 47.51
§ 47.69
[Removed and Reserved]
29. Remove and reserve § 47.51.
30. Amend § 47.61 by—
■ a. Revising the section heading:
■ b. Removing the word ‘‘Dealers’’’ from
paragraph (b), and adding, in its place,
the word ‘‘Dealer’s’’; and
■ c. Revising the introductory text of
paragraph (a) and paragraph (a)(2) and
adding paragraph (c) to read as follows:
■
■
§ 47.61 Dealer’s Aircraft Registration
Certificates.
(a) The FAA issues a Dealer’s Aircraft
Registration Certificate, AC Form 8050–
6, to U.S. manufacturers and dealers
to—
*
*
*
*
*
(2) Facilitate operating,
demonstrating, and merchandising
aircraft by the manufacturer or dealer
without the burden of obtaining a
Certificate of Aircraft Registration, AC
Form 8050–3, for each aircraft with each
transfer of ownership, under Subpart B
of this part.
*
*
*
*
*
(c) If the Dealer’s Aircraft Registration
Certificate expires under § 47.71, and an
aircraft is registered under this Subpart,
application for registration must be
made under § 47.31, or the assignment
of registration number may be cancelled
in accordance with § 47.15(i)(3).
§ 47.63
[Amended]
31. Amend § 47.63(a) by removing the
words ‘‘An Application for Dealers’
Aircraft Registration Certificates’’ and
adding, in their place, the words ‘‘A
Dealer’s Aircraft Registration Certificate
Application’’.
■ 32. Revise § 47.65 to read as follows:
■
wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
§ 47.65
Eligibility.
To be eligible for a Dealer’s Aircraft
Registration Certificate, AC Form 8050–
6, the applicant must have an
established place of business in the
United States, must be substantially
engaged in manufacturing or selling
aircraft, and must be a citizen of the
United States, as defined by 49 U.S.C.
40102 (a)(15).
■ 33. Revise § 47.67 to read as follows:
VerDate Mar<15>2010
15:05 Jul 19, 2010
Jkt 220001
Evidence of ownership.
Before using a Dealer’s Aircraft
Registration Certificate, AC Form 8050–
6, for operating the aircraft, the holder
of the certificate (other than a
manufacturer) must send to the Registry
evidence of ownership under § 47.11.
An Aircraft Bill of Sale, AC Form 8050–
2, or its equivalent, may be used as
evidence of ownership. There is no
recording fee.
34. Amend § 47.69 by removing the
words ‘‘Dealer’s Aircraft Registration
Certificate’’ in the introductory text, and
adding, in their place, the words
‘‘Dealer’s Aircraft Registration
Certificate, AC Form 8050–6’’.
■ 35. Amend § 47.71 by—
■ a. Removing the words ‘‘Dealer’s
Aircraft Registration Certificate’’ in
paragraph (a), and adding, in their
place, the words ‘‘Dealer’s Aircraft
Registration Certificate, AC Form 8050–
6,’’; and
■ b. Revising paragraph (b) to read as
follows:
Duration of Certificate; change of
*
*
*
*
*
(b) The holder of a Dealer’s Aircraft
Registration Certificate must
immediately notify the Registry of any
of the following—
(1) A change of name;
(2) A change of address;
(3) A change that affects status as a
citizen of the United States; or
(4) The discontinuance of business.
PART 91—GENERAL OPERATING AND
FLIGHT RULES
36. The authority citation for part 91
continues to read as follows:
■
Authority: 49 U.S.C. 106(g), 1155, 40103,
40113, 40120, 44101, 44111, 44701, 44704,
44709, 44711, 44712, 44715, 44716, 44717,
44722, 46306, 46315, 46316, 46504, 46506–
46507, 47122, 47508, 47528–47531, articles
12 and 29 of the Convention on International
Civil Aviation (61 Stat. 1180).
37. Amend § 91.203 by revising
paragraph (a)(2) to read as follows:
■
§ 91.203 Civil aircraft: Certifications
required.
(a) * * *
(2) An effective U.S. registration
certificate issued to its owner or, for
operation within the United States, the
second copy of the Aircraft registration
Application as provided for in
§ 47.31(c), or a registration certification
issued under the laws of a foreign
country.
*
*
*
*
*
PO 00000
Issued in Washington, DC, on July 9, 2010.
J. Randolph Babbitt,
Administrator.
[FR Doc. 2010–17572 Filed 7–19–10; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 71
[Amended]
■
§ 47.71
status.
41983
Frm 00021
Fmt 4700
Sfmt 4700
[Docket No. FAA–2010–0406; Airspace
Docket No. 10–ASW–8]
Establishment of Class D Airspace;
San Marcos, TX
AGENCY: Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
SUMMARY: This action establishes Class
D airspace for San Marcos Municipal
Airport, San Marcos, TX. Establishment
of an air traffic control tower has made
this action necessary to enhance the
safety and management of Instrument
Flight Rule (IFR) operations at the
airport. A minor change in the airport
descriptor also has been made.
DATES: Effective date 0901 UTC,
September 23, 2010. The Director of the
Federal Register approves this
incorporation by reference action under
1 CFR part 51, subject to the annual
revision of FAA Order 7400.9 and
publication of conforming amendments.
FOR FURTHER INFORMATION CONTACT:
Scott Enander, Central Service Center,
Operations Support Group, Federal
Aviation Administration, Southwest
Region, 2601 Meacham Blvd., Fort
Worth, TX 76137; telephone (817) 321–
7716.
SUPPLEMENTARY INFORMATION:
History
On April 30, 2010, the FAA published
in the Federal Register a notice of
proposed rulemaking to establish Class
D airspace for San Marcos Municipal
Airport, San Marcos, TX (75 FR 22712)
Docket No. FAA–2010–0406. Interested
parties were invited to participate in
this rulemaking effort by submitting
written comments on the proposal to the
FAA. No comments were received. Class
D airspace designations are published in
paragraph 5000 of FAA Order 7400.9T
signed August 27, 2009, and effective
September 15, 2009, which is
incorporated by reference in 14 CFR
part 71.1. The Class D airspace
designations listed in this document
will be published subsequently in the
Order.
E:\FR\FM\20JYR1.SGM
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Agencies
[Federal Register Volume 75, Number 138 (Tuesday, July 20, 2010)]
[Rules and Regulations]
[Pages 41968-41983]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17572]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Parts 13, 47, and 91
[Docket No. FAA-2008-0188; Amendment Nos. 13-34, 47-29, 91-318]
RIN 2120-AI89
Re-Registration and Renewal of Aircraft Registration
AGENCY: Federal Aviation Administration (FAA), DOT.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends the FAA's regulations concerning
aircraft registration. Over a 3-year period, this rule will terminate
the registration of all aircraft registered before October 1, 2010, and
will require the re-registration of each aircraft to retain U.S. civil
aircraft status. These amendments also establish a system for a 3-year
recurrent expiration and renewal of registration for all aircraft
issued registration certificates on or after October 1, 2010. This
final rule amends the FAA's regulations to provide standards for the
timely cancellation of registration numbers (N-numbers) for
unregistered aircraft. This final rule makes other minor changes to
establish consistency and ensure the regulations conform to statute or
current Registry practices. These amendments will improve the accuracy
of the Civil Aviation Registry database and will ensure that aircraft
owners provide information to maintain accurate registration records.
These amendments respond to the concerns of law enforcement and other
government agencies to provide more accurate, up-to-date aircraft
registration information.
DATES: These amendments become effective October 1, 2010.
FOR FURTHER INFORMATION CONTACT: For technical questions concerning
this final rule contact John Bent, Civil Aviation Registry, AFS-700,
FAA Mike Monroney Aeronautical Center, 6500 South MacArthur Boulevard,
Oklahoma City, OK 73169; Telephone (405) 954-4331; e-mail
john.g.bent@faa.gov. For legal questions concerning this final rule
contact Robert Hawks, Office of Chief Counsel, (AGC-240); Federal
Aviation Administration, 800 Independence Avenue, SW., Washington, DC
20591; Telephone: (202) 267-7143; e-mail rob.hawks@faa.gov.
SUPPLEMENTARY INFORMATION:
Authority for This Rulemaking
The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority.
This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart III, Chapter 441, Section 44111. Under
that section, the FAA is charged with prescribing regulations
considered necessary to carry out this part. In that section, Congress
mandated the Administrator modify the system for registering and
recording aircraft necessary to make the system more effective in
serving the needs of its users. The modifications described in this
amendment include measures to ensure positive, verifiable, and timely
identification of the true owners of aircraft operated in the national
airspace system. Thus, these changes are within the scope of the FAA's
statutory authority and are a necessary and reasonable exercise of that
authority.
Table of Contents
I. Executive Summary of the Final Rule
II. Background
III. Summary of Comments
IV. Discussion of Final Rule
A. Aircraft Re-Registration and Periodic Renewal of Registration
B. Reminder Notice, Extended Filing Timeframes, and Online
Access
C. Triennial Aircraft Registration Report No Longer Required
D. Time Limits for Aircraft in Sale Reported and Registration
Pending Status
E. Conforming Amendments
V. Miscellaneous Comments
A. Re-Registration and Renewal
B. Risks and Disruption
C. Fees, User Fees, New Taxes
D. Alternatives Suggested by Commenters
VI. Regulatory Notices and Analyses
A. Paperwork Reduction Act
B. International Compatibility
C. Regulatory Evaluation, Regulatory Flexibility Determination,
International Trade Impact Assessment, and Unfunded Mandates
Assessment
D. Executive Order 13132, Federalism
E. Environmental Analysis
F. Regulations that Significantly Affect Energy Supply,
Distribution, or Use
G. Availability of Rulemaking Documents
H. Small Business Regulatory Enforcement Fairness Act
I. Executive Summary
The FAA estimates that approximately one-third of the 357,000
registered aircraft records it maintains are inaccurate and that many
aircraft associated with those records are likely ineligible for United
States registration. The inaccuracies result from failures in the
voluntary compliance based system. Although aircraft owners are
required to report the sale of an aircraft, death of an owner,
scrapping or destruction of an aircraft, and changes in mailing
address; many have not. Without owner initiated action, there has been
no means to correct those records. The FAA has been asked by government
and law enforcement agencies to provide more accurate and up-to-date
aircraft registration information. This rule is intended to support the
needs of our system users.
The changes made by this Final Rule provide the FAA Aircraft
Registry the tools to improve the currency and accuracy of the Civil
Aircraft Registry database and maintain the improvement into the
future. Re-registration of all U.S. civil aircraft over a three year
period will redraw the Civil Aircraft Register with current data
derived from recent contact with aircraft owners. Additionally, the FAA
is enabled to cancel the registrations of those aircraft that are not
re-registered. These amendments will also ensure that aircraft owners
refresh that data by providing information on the status of their
aircraft at least once every three years when registration is renewed.
The expected reduction in registration data error provided by this rule
and the corresponding cost of implementation is shown in the table
below with estimates for alternate renewal intervals that were
considered.
This rule also eliminates the present Triennial Aircraft
Registration Report Program, provides clear time limits and standards
for canceling aircraft with registrations that have ended and for which
no new registration application has been made or completed. It also
makes several administrative changes to conform the regulation to
statute and current registration practices.
An NPRM was published in the Federal Register on February 28, 2008
(73 FR 10701), requesting input on these goals and the proposed
procedures to achieve them. Significant comments addressed concern that
the proposed fee for registration renewal, which occurs every third
year, would be increased and used as a device to raise revenue:
[[Page 41969]]
that the recurrent nature of renewal would create excessive
opportunities for administrative failure that would interfere with
revenue flights; and that the rule would cause significant new costs
for owners, operators and financiers that work with multiple aircraft
that had not been accounted for in estimates of the cost of the
proposed rule. This final rule is responsive to these and other
comments as addressed in the discussion that follows.
Summary of Costs and Benefits in Millions of 2007 Dollars
[Over 20 years]
----------------------------------------------------------------------------------------------------------------
Present value
Cost of cost Benefit
----------------------------------------------------------------------------------------------------------------
Re-registration and 3-Year $29.9 $16.3 Reduction in Error Rate by 31%.
Renewal (Triennial Eliminated).
----------------------------------------------------------------------------------------------------------------
Re-registration lowers the error rate from 36.5% to 5.7% for an
improvement of 31%.
Renewal every third year maintains this improvement.
II. Background
The Aircraft Registration Branch (the ``Registry'') is responsible
for developing, maintaining, and administering national programs for
the registration of United States civil aircraft. First among these
responsibilities is maintaining the registration database. The database
identifies each registered aircraft by its registration number (N-
number), its complete description, and the name and address of its
registered owner.
Registration is a prerequisite for obtaining an airworthiness
certificate, and together a registration certificate and airworthiness
certificate enable operation of an aircraft in U.S. and foreign
airspace. The FAA uses the information collected at the time of
registration to communicate safety-related information such as
Airworthiness Directives to aircraft owners. Similarly, aircraft
manufacturers use this information to send out safety notices and other
information. The FAA relies on the registration database when
responding to an overdue flight or downed aircraft report and when
enforcing its regulations. Law enforcement agencies rely on the
registration database when investigating improper activities such as
drug smuggling. The registration database is used to identify aircraft
that could be used by U.S. armed forces. It also is a resource for
buyers and sellers of aircraft and for banks that may finance those
transactions.
The FAA and other government agencies are increasingly developing
sophisticated uses that are enabled by progressing technology. An
example is Automatic Detection and Processing Terminal or ADAPT, a
program developed by the FAA Strategic Operations Security with the
Transportation Security Administration (TSA). (See 70 FR 73323,
December 9, 2005.) This program continuously draws registration
information for combination with other data, satellite feeds, and radar
to develop a display of the national airspace complete with the
registration status of each aircraft that is operating on a filed
flight plan. Using this information, appropriate safety, security, and
law enforcement actions can be initiated. The development of the ADAPT
program and other safety- and security-related programs demand an
accurate database.
Today, approximately one-third of the 357,000 registered aircraft
have questionable registrations. There are many causes for this large
number of potentially inaccurate aircraft records. Failure to re-
register an aircraft after a sale to a new owner, failure to report the
death of an owner, failure to report scrapping or destruction of
aircraft, and failure to report changes of address erode the accuracy
of the records. A requirement for registered owners to notify the
Registry of these and other registration-related changes has been part
of the registration regulations for many years. The number of
questionable records in the registration database grows annually
despite these requirements.
In 1988, the FAA mission was expanded to include providing
assistance to law enforcement agencies through the passage of the FAA
Drug Enforcement Assistance Act of 1988 (the Act) (partially codified
at 49 U.S.C. 44111). The Act charged the FAA with making specific
modifications to the registration database to more effectively serve
the needs of buyers and sellers of aircraft, law enforcement officials,
and other users of the system. The FAA has addressed most of the issues
identified in the Act and improved service to users through
administrative modifications, technology upgrades, and focused
enforcement programs. Access to aircraft data and most individual
aircraft records is easy and routine.
Although the FAA has worked to keep the registration database
accurate and current, the Registry's ability to get timely updates of
registration changes from aircraft owners is limited. From March 1970
through January 1978, registered owners were required to file an annual
report. Beginning in April 1980, the Triennial Aircraft Registration
program required a report from registered owners when 3 years passed
without the occurrence of certain aircraft registration activities.
Under both programs, failure to send in the required report subjected
the aircraft's registration certificate to revocation under 14 CFR part
13.
While a large portion of aircraft owners have and continue to
report changes both independently and in response to a report notice, a
significant portion of reports continue to be returned as undeliverable
or not returned at all. Many orders revoking the prior owner's
certificate of registration are returned as undeliverable. Because the
new aircraft owner could be operating the aircraft on an ineffective
and revoked certificate, the aircraft are kept in the system to prevent
reassignment of the N-number to a second active aircraft.
Notwithstanding administrative modifications to the registration
system, and enforcement efforts, there is an increasing number of
registered aircraft whose status is in question or whose owner cannot
be contacted. With approximately one-third of registered aircraft
assigned a questionable registration status, the present system of
indefinite-duration registration certificates does not achieve the
necessary accuracy and currency of aircraft registration data.
Modifications to the aircraft registration system must be made to
achieve a level of registration data reliability that meets the current
and evolving needs of users. The FAA has determined that the most
effective method for increasing the accuracy of its records is the
establishment of limited-duration aircraft registration with clear
standards for canceling N-number assignments when a registration
expires or otherwise ends. The 3-year re-registration period will clear
the registration database of aircraft with questionable registration.
[[Page 41970]]
Recurrent renewal at regular intervals will maintain the improved
accuracy.
The NPRM published in the Federal Register on February 28, 2008 (73
FR 10701) proposed:
Expiration of registration for all currently registered
aircraft and their re-registration as scheduled over a 3-year period;
Recurrent expiration and renewal on a 3-year interval of
all aircraft registrations issued after the effective date of the
proposed rule with a registration renewal process;
Elimination of the present Triennial Aircraft Registration
Report program;
A 6-month limit on the time an aircraft may remain in the
sale reported category without an application being made for
registration before its N-number assignment is canceled;
A 12-month limit on the time an applicant or successive
applicants for registration have to complete the registration process,
and provisions for reserving the aircraft's N-number if the aircraft is
not registered at the end of this time; and,
Cancellation of the N-number of an aircraft registered
under a Dealer's Aircraft Registration Certificate (Dealer's
Certificate), if the Dealer's Certificate has expired and application
for registration has not been made under Sec. 47.31.
The public comment period closed on May 28, 2008. Late-filed
comments posted through June 30, 2008 were accepted for consideration.
III. Summary of Comments
The FAA received 94 comments on the NPRM. The commenters consisted
of aviation industry associations, air carriers, banks, finance
companies, law firms, and individuals. Most commenters expressed
multiple opinions, concerns, and suggestions, which were often repeated
by others. Common areas of concern are grouped by subject for response.
IV. Discussion of the Final Rule
A. Aircraft Re-Registration and Periodic Renewal of Registration
As proposed in the NPRM, this rule adopts the expiration and re-
registration of all registered aircraft over a 3-year period, followed
by the expiration and renewal of aircraft registration at 3-year
intervals. This rule establishes the expiration of registration for all
aircraft registered before October 1, 2010, and provides for the re-
registration of all aircraft over a 3-year period according to the
schedule provided in Sec. 47.40(a)(1). It also establishes the
recurrent expiration and renewal of registration at 3-year intervals
for all aircraft issued registration on or after October 1, 2010, in
Sec. 47.40(c). The expiration date printed on the registration
certificate of aircraft registered or re-registered after October 1,
2010, will be 3 years from the last day of the month in which
registration or re-registration occurred as provided in Sec. 47.40(a)
and (b). A renewed aircraft registration will expire 3 years from the
previous expiration date in accordance with Sec. 47.40(c). Replacement
registration certificates issued on or after October 1, 2010, will
display the same expiration date that was shown on the replaced
registration certificate. If the replaced registration certificate did
not display an expiration date, the replacement certificate will
display the expiration date indicated in Sec. 47.40 based on the month
of issue of the replaced registration certificate. Replacement
certificates are issued after an address update, an N-number change, or
the report of a lost or mutilated certificate. A replacement does not
constitute re-registration or renewal.
Several commenters, particularly aircraft operators and aviation
financing and leasing companies, expressed concern over the re-
registration and periodic renewal of registration. Some commenters
preferred, as an alternative to the proposal, updating the triennial
program by ``putting teeth'' into its enforcement. This would include
enforcing the requirement to return the triennial report even when no
change has occurred and imposing fines or canceling registration when
there is no compliance. The FAA has considered these alternatives and
has determined they would not resolve the issues addressed by this
rule. The ``teeth'' suggested (such as fines or cancellation for an
owner not replying to the triennial) are the same options available to
the FAA today. In appropriate cases, the FAA has and will continue to
pursue enforcement actions as provided for in 14 CFR part 13. However,
the purpose of this final rule is to maintain an accurate registry
database, and the FAA has determined that re-registration and renewal
of all aircraft registrations is the most efficient way to accomplish
that purpose.
Existing Sec. 47.51 requires the return of the triennial reports
without changes. However, without an effective way of dealing with
reports that were not returned or returned as undeliverable, the
requirement became an unnecessary expenditure of resources for both the
FAA and the public. Consequently, the instructions on the triennial
report stated that return was unnecessary if no change had occurred.
The FAA has concluded that recurrent registration expiration and
renewal is the only way to ensure a regular validation of aircraft
registration status and owner contact information. Therefore, as
proposed, Sec. 47.51 is removed.
Commercial commenters contended that the FAA underestimated the
costs to some aircraft owners because aircraft registration often
involves multiple parties. A high percentage of commercial and
corporate aircraft, and a large number of general aviation aircraft,
are leased to third parties and may be subject to financing agreements.
These commenters stated they would need to implement systems to monitor
the status of aircraft registrations for re-registration and renewal
purposes. They also stated the costs of developing and maintaining such
systems would be significant. The costs would include the need to hire
an aviation professional to advise on, prepare, and file registration
documents. They stated that outside counsel (engaged at a minimum of
$350 per hour) would be required to review filings. Also, significant
time would be spent by the various parties communicating with each
other and with the FAA. Finally, they stated that an appropriate
employee (such as a mechanic) must place and document the placement of
the registration certificate in the aircraft. The commenters contended
the costs associated with taking the actions necessary to comply with
the regulations can be substantial for owners, operators, and financial
institutions dealing with large aircraft fleets and should have been
included in the regulatory evaluation.
The FAA agrees that for certain aircraft owners, the cost in the
NPRM was underestimated. The FAA has revised its estimates of recurrent
costs to include the time needed to fill out the re-registration or
renewal application form, time for a legal review before the owner
signs the application, time for the owner to receive a registration
certificate and forward it to the aircraft operator, and time for the
operator to receive and place the registration certificate in the
aircraft. The FAA also has included one-time, start-up costs for
documenting in-house re-registration and renewal procedures and the
training of key personnel.
Costs for actions not directly imposed by the rule, such as actions
a party might take for their own convenience or preference, were not
included. Among these were costs for hiring outside personnel to
interpret the new rule or assist with re-registration and renewal
processing and costs for establishing tracking systems. These were
classified as optional tools to assure compliance
[[Page 41971]]
that are chosen by the owner or other parties but not directly required
by the rule. Many operations already have a tracking system for
maintenance or scheduling aircraft. These systems could be modified or
adapted to help maintain aircraft registration by those who choose to
use this method. New registration certificates will have the expiration
dates printed on them to inform the pilot of the approaching
expiration. The Registry Web site also will show the expiration date
for individual aircraft and list aircraft that are pending re-
registration or renewal. Most importantly, aircraft owners who keep
their registration address current will receive two timely reminder
notices before the scheduled expiration date of their aircraft's
registration.
The FAA recalculated the three 20-year scenarios presented in the
NPRM to include the additional operating and start-up cost addressed in
the previous paragraph. Each scenario starts with the 3-year re-
registration followed by 3-, 5-, and 7-year renewal cycles without a
triennial program. The chart that follows shows the comparative costs
and error rates achieved by these scenarios.
Estimated Costs and Error Rates for Re-Registration and Renewal
[Over 20 years]
----------------------------------------------------------------------------------------------------------------
Inaccurately
Options Cost Present value Error rate registered
cost (percent) aircraft
----------------------------------------------------------------------------------------------------------------
Current Program................................. $8,361,100 $4,428,900 36.5 132,100
Re-registration and 7-Year Renewal (Triennial 7,498,100 5,564,300 21.7 68,900
Eliminated)....................................
Re-registration and 5-Year Renewal (Triennial 13,806,600 8,512,700 12.5 37,600
Eliminated)....................................
Re-registration and 3-Year Renewal (Triennial 29,946,000 16,264,900 5.7 18,800
Eliminated)....................................
----------------------------------------------------------------------------------------------------------------
After comparing the results of these scenarios, the FAA has
determined the best balance between cost and improved accuracy is
provided by the 3-year re-registration followed by 3-year renewal
cycles and no triennial program. Overall, questionable or erroneous
registrations are expected to change from the current total error of
approximately 36.5% to a projected total error of approximately 5.7%.
While the alternative options cost less, the projected total error rate
for each is significantly higher than the 3-year renewal option. The
Regulatory Evaluation contains a detailed discussion of how costs were
determined with an explanation of the calculations behind these
scenarios.
Re-registration of all aircraft and periodic renewal of
registration will result in a more accurate database that will benefit
all users. Law enforcement and security agencies will have access to
more accurate registration records, which should increase their
effectiveness in accomplishing their missions. The FAA and
manufacturers will realize cost savings when mailing emergency
airworthiness directives, safety notices, and surveys to aircraft
owners. More reliable notification regarding safety issues should
improve aviation safety.
Commenters expressed concern over the opportunity re-registration
and periodic renewal creates for administrative error that could ground
an aircraft. They believe a renewal interval of 3 years increases this
risk. Some commenters suggested a 5-year interval to coincide with
fractional contracts or to match Uniform Commercial Code continuation
filing. Another commenter suggested a 7-year interval to align with
aging aircraft inspections.
The FAA has considered the recommended renewal intervals. However,
these events do not relate to, or further the goal of, improving the
accuracy of registration information. It is impractical to tie the
renewal term to financial events over which the FAA has no control or
scheduled inspections that may vary be aircraft. However, the FAA does
recognize that regular renewal creates a regulatory obligation that, if
missed, could lead to the temporary grounding of an aircraft. To reduce
the potential for these events to occur, the FAA is implementing
several procedural safeguards introduced in the following discussion.
B. Reminder Notices, Extended Filing Timeframes, and Online Access
The Registry will send owners two reminder notices rather than a
single reminder as proposed in the NPRM. The first reminder notice will
be sent 180 days before a registration is scheduled to expire. This is
60 days earlier than the 120 days proposed in the NPRM. The reminder
will provide basic instructions and identify the aircraft, its
expiration date, and the 3-month filing window during which a
registration or renewal application should be submitted. Filing the
application within the assigned window will enable the new registration
certificate to arrive before the old certificate expires. The second
reminder notice will be sent at the end of the filing window to owners
who have not yet re-registered or renewed registration. The filing
window will close 2 months prior to the scheduled expiration date to
allow for processing the applications and mailing the new certificates.
Applications sent after the filing window closes will still be
processed; however, due to processing and mailing times, the aircraft
may be without authorization to operate until registration is
completed. Section 47.40(a)(1) contains a chart with the schedule
established for re-registration. The Registry will post lists on its
Web site showing aircraft as they move through the various stages of
re-registration and renewal. These changes should help owners keep
their aircraft continuously registered and help keep other interested
parties informed about the registration status of those aircraft.
In the NPRM, the FAA proposed extending expiration dates past the
regulatory expiration date if the FAA or applicant were unable to
complete the renewal process in a timely manner. The FAA has concluded
that this process would be complicated and costly for both aircraft
owners and the Registry. The FAA has determined that moving the first
reminder notice and the filing window forward by 2 months and using
this additional time for application processing and certificate
delivery is a better solution. The earlier filing and additional 2
months for processing provides adequate time for a timely applicant to
receive a new registration certificate. The process adopted by this
final rule will reduce the uncertainty about registration certificate
arrival and the potential burden of coordinating extensions that the
proposed process would have created.
The earlier reminder notice and additional processing time also
respond
[[Page 41972]]
to requests from a few commenters who suggested a temporary operating
authority for use with re-registration and renewal applications. The
FAA permits temporary operation through the use of the second or ``Pink
Copy'' of the application for registration for a reasonable period of
time following a transfer of ownership. Because of statutory
limitations, this type of temporary authority cannot be used for re-
registration and renewal because these events are not part of a
transfer of ownership. Provided an owner files an application for re-
registration or renewal in a timely manner during the re-registration
and renewal window, an interval of not less than two months will remain
on the old certificate. This is sufficient time for an application to
be processed and a certificate issued and delivered.
The FAA planned to use the Aircraft Registration Application, AC
Form 8050-1 as the application form for aircraft re-registration. To
avoid confusion between the normal registration process with its
temporary operating authority and the re-registration process, the
Aircraft Registration Application, AC Form 8050-1 will not be used for
re-registration. A separate application form has been developed and
will be available from the Registry at its Web site, https://registry.faa.gov/renewregistration. Proposed regulatory language has
been changed to keep the two processes separate.
The FAA proposed to require paper forms for all re-registration and
to allow online renewal application when no changes were necessary.
Several commenters called attention to the convenience and savings that
could be achieved with both online re-registration and renewal. One
commenter believed that completing the application electronically could
save about 25 minutes, providing convenience for owners. Others pointed
out the savings in time and costs for the FAA if applications could be
processed electronically.
The FAA agrees that online re-registration and electronic
processing could reduce costs, but only when there are no changes to be
made to the current registration information. Accordingly, the rule
provides for both online re-registration and renewal when no changes
are required. Extending the online option to those aircraft with
information changes to report would be convenient for owners. However,
the FAA currently cannot process these information updates
electronically. Therefore, at this time, re-registration or renewal
applications with updates cannot be made online. However, future online
submission is not prohibited by the regulatory text, and we are
exploring options for future acceptance of registration information
electronically. Regardless of whether information is received
electronically or through a paper-based method, address updates and
other changes also require review and action by an examiner, so cost
savings to the Government in these situations would be minimal or
nonexistent.
The changes from the proposed rule discussed to this point extend
the timeframes and simplify the procedures of the re-registration and
renewal process to the benefit of owners, operators, and the FAA. When
these elements of the rule are pulled together re-registration and
renewal will operate similarly to the following example.
For the purpose of re-registration, an aircraft registration
certificate that does not contain an expiration date and was issued in
March of any year has an assigned expiration date of March 31, 2011, as
described in Sec. 47.40 of this rule. This example also applies to
renewal of an aircraft registration certificate issued with an
expiration date of March 31st . On or about October 1, the first
reminder notice will be sent to the aircraft owner at the address of
record. The notice will remind the owner of the pending expiration and
announce that the 3-month filing window will run from November 1st
through the last day of January. The notice will include a unique
passcode for use with online filing that will be valid until the close
of the assigned filing window. It will also provide information for
both online and paper form filing. A printable form will be available
online and from the Registry. The additional 2 months provided for
application processing and certificate delivery run from February 1st
through March 31st. Timely applications, meaning those received at the
Registry during the filing window, will be processed and issued with
sufficient time for the registration certificate to arrive well before
expiration on the last day of March. Re-registration and renewal
applications that report updates to registration information or are
filed after the filing window closes must be made using the paper
application. Filing after the end of the 3-month window creates the
possibility the new certificate will arrive after the old certificate
expires. An owner who has allowed registration to expire may apply for
registration in accord with Sec. 47.31, by submitting an Aircraft
Registration Application, AC Form 8050-1 and the registration fee
identified in Sec. 47.17.
A correct address on file will ensure that the reminder letters
will be sent to the aircraft owner and avoid delays and possible loss
of registration. There is no fee for updating an address or other
information, like a name change, and it can be done at any time during
or independent of the registration process.
C. Triennial Aircraft Registration Report No Longer Required
In the NPRM, the FAA proposed to remove Sec. 47.51 and eliminate
the requirement for aircraft owners to complete and return a Triennial
Aircraft Registration Report. This proposal is adopted without
modification in this final rule. The re-registration and renewal
requirements adopted in this final rule eliminate the need for the
triennial program.
D. Time Limits for Aircraft in Sale Reported and Registration Pending
Status
Accuracy and usability of the database require eliminating aircraft
from questionable registration statuses such as ``Sale Reported'' or
``Registration Pending.'' Approximately 17,000 aircraft are reported as
sold and have remained in a ``Sale Reported'' status for more than 6
months. Their registration has ended, but without standards for
canceling the assignment of an aircraft registration number, the
aircraft remain in the database. With a registration number still
assigned, ``Sale Reported'' aircraft could operate under ``Pink Copy''
temporary authority at any time if an application for registration is
made. Due to normal processing delays, it cannot be known to a system
user what the actual status is. Accordingly, ``Sale Reported'' aircraft
are in a perpetually questionable status.
The FAA proposed to implement clear standards for the cancellation
of registration number assignments from aircraft with ineffective
registration. The basis for these standards is underscored in proposed
Sec. 47.15(i). When the ownership of an aircraft is transferred, its
registration is no longer effective, and the FAA may cancel the
corresponding assignment of registration number. To establish clear
time periods in which to complete the registration of a transferred
aircraft, proposed Sec. 47.15(i) set forth timelines for cancellation
of the assignment of registration number in three ownership transfer
scenarios. The FAA will cancel the assignment of registration number if
6 months have passed since notification to the FAA of transfer and no
application for registration has been filed. The FAA will cancel the
assignment of registration number if 1
[[Page 41973]]
year has passed since the application for registration was made, but
the applicant or successive applicants have failed to meet the
registration requirements of this part. The FAA will cancel the
assignment of registration number if 6 months have passed since an
aircraft dealer filed evidence of ownership in accord with Sec. 47.67
that did not meet registration requirements, and these requirements
have remained unmet. Section 47.15(i) is adopted as proposed in the
NPRM without change.
Several commenters thought that automatic cancellation of
registration numbers for failing to renew or re-register is a severe
penalty. These commenters suggested that the system should accommodate
the retention of N-numbers without the complication of an application
or fees because it is expensive to put a new N-number on an aircraft.
Section 47.15(i) as adopted provides for the cancellation of an N-
number assignment to an aircraft when registration ends. However, the
cancellation process is not an automatic action as commenters suggest.
When aircraft registration ends, the Registry will wait 30 days to
ensure that any recently received requests from the owner have been
processed. The Registry will then send a letter about the pending
cancellation if a good address for an owner is on file.\1\ The letter
will inform the owner that the owner may reserve the N-number as
provided for in newly adopted Sec. 47.15(j) or register the aircraft
under Sec. 47.31 within 60 days from the date of the letter. If a
reply is not received within 60 days, the aircraft record will be
placed in a work packet and then in queue for an examiner to complete
cancellation. If a good address for the aircraft owner is not on file,
N-number cancellation will be scheduled for no sooner than 90 days from
the date of expiration. During this time, the aircraft will appear on
the Registry's webpage list of aircraft pending cancellation. Once
cancellation is complete, the N-number will be unavailable for
assignment for a period of 5 years in accord with Sec. 47.15(j).
---------------------------------------------------------------------------
\1\ The Registry has a status it assigns to aircraft records
that have had mail returned as undeliverable.
---------------------------------------------------------------------------
The 5-year hold is related to both safety and customer service.
Many aircraft that may be canceled from the registration database
belong to owners who have been out of contact with the Registry. These
aircraft may be in use or may return to operational status during the
next few years. It would be unwise to release an N-number for use on a
second aircraft when there is a chance the first aircraft is still
operating. The 5-year hold also is responsive to requests from law
enforcement agencies. Removing the N-numbers of unregistered aircraft
from service for a few years helps them identify and evaluate operating
aircraft.
One commenter asked whether the requirement to return expired
registration certificates could be modified. The costs to gather and
return these certificates could be excessive for owners or operators
with large or international fleets. The FAA agrees with this comment
and has changed the language of proposed Sec. 47.41(b). Instead of
returning an expired registration certificate, the holder must destroy
it.
A commenter asked why a limit of 120 days was established for use
of the copy of a completed and returned Assignment of Special
Registration Numbers, AC Form 8050-64. This commenter suggested a
period of 180 days instead.
This form is issued as authority to place a special N-number on a
specific aircraft during the next 12 months. Within 5 days of painting
the N-number on the aircraft, the form is to be completed with the
painting date, signed by the owner, and returned to the Registry. The
records will then be updated and a new aircraft registration
certificate issued. While waiting for the new certificate, the owner is
to keep a copy of the form with the old certificate as authorization to
operate with the new N-number. The new certificate should arrive in 60
to 90 days at which time the copy of the form loses its authority. The
12-month and 120-day terms are imposed to establish a specific time
limit in response to requests from law enforcement agencies. The FAA
chose 120 days to allow response time for the occasional undelivered
certificate. Given the time periods required to submit the appropriate
documentation and the standard processing time, 180 days is excessive.
E. Conforming Amendments
Since this rule eliminates Sec. 47.51, the rule includes
conforming amendments to Sec. Sec. 13.19 and 13.27 to remove the
references to Sec. 47.51. This rule also includes a conforming
amendment to Sec. 91.203(a)(2) to eliminate the reference to the
``pink copy'' of the Aircraft Registration Application.
V. Miscellaneous Comments
A. Re-Registration and Renewal
One commenter suggested sending additional notices to an aircraft's
lessee, secured party, or operator as known parties that could ensure
re-registration or renewal is accomplished in a timely manner.
The aircraft registration regulations identify the aircraft owner
as the responsible party to which the Registry directs any
communication. The FAA cannot justify modifying the current system to
maintain addresses for parties other than the registered aircraft
owner. Identifying these other interested parties might require the FAA
to perform a title review of each aircraft's records, which contradicts
the registered owner's duty to comply with all obligations it may have
under leases, security agreements, or other contracts. Additionally, a
system of secondary addresses would create a maintenance burden to keep
these addresses current.
One commenter stated that it is not clear how this proposal would
create a net time savings for any party as the cost/benefit analysis
claims.
Neither the discussion in the NPRM nor the cost/benefit analysis
claimed that there would be a net time savings for any party.
One commenter suggested that the FAA review the proposal and
analyze its impact on foreign airlines and for conformity with other
registration requirements and commitments, such as the Cape Town
Convention on International Interests in Mobile Equipment.
The FAA agrees that U.S. civil aircraft operated internationally
must comply with FAA as well as foreign operational standards. Leases
often state that the lessee will comply with applicable regulations and
laws present and future. The U.S. aircraft registration certificate
conforms to the model certificate provided by the International Civil
Aviation Organization. The addition of an expiration date is an
enhancement over the basic requirement. This difference provides more
confidence to foreign officials that the aircraft is properly
registered. Validating registration and placing a renewal certificate
in a U.S. registered aircraft operated in another country has little
chance of conflicting with international commitments. This rule has no
effect on the Cape Town Convention.
B. Risks and Disruption
Many commenters expressed concern with the time, personnel, and
administrative costs associated with implementing the rule as proposed.
These commenters thought the increase in workload at the Registry would
result in critical backlogs that would negatively affect both normal
and rule-related work.
The FAA understands that confidence in the success of this final
rule rests on
[[Page 41974]]
the ability of the Registry to perform without excessive backlogs. A
portion of the new work will be offset by the elimination of the
triennial report program. Recent staffing changes and upgrades to the
electronic documents processing systems will help streamline the new
workload. Additionally, online ``no-change'' re-registration
application filing and fee payments will be available. No critical
backlogs in re-registration, renewal, or normal workload are expected
as a result of this final rule.
Several lessees commented that lenders might modify contract
covenants to require additional reports and assurances, or possibly
withdraw from lending due to the real or perceived increase in
uncertainty created by the proposed rule.
This final rule creates certainty in the registry database.
Lenders, insurers, and other interested parties will now be able to
verify whether the aircraft owner is complying with any registration
terms and conditions contained in those private contracts. The FAA
believes this rule will not be a factor in lenders deciding whether to
finance aircraft transactions. Verifying or demonstrating successful
re-registration or renewal may be done using the searchable aircraft
information feature on the FAA Web site. The display for each aircraft
will show the issue date for its certificate as well as the next
expiration date. Owners can download the registration database and
create reports or populate their own fleet management databases.
Reports could then be transmitted to a lender. With this information
available on the Web site, and the 180-day and 60-day notices of
expiration sent to the aircraft owner, investor confidence in the U.S.
aviation industry should remain essentially unchanged by the
implementation of this final rule.
Several commenters stated that expired registration could result in
litigation because the ownership of the aircraft could be questioned.
Specifically, these commenters were concerned that security interests
filed against the aircraft could be held invalid or subordinate, thus
exposing banks and other lenders to economic losses.
The FAA has determined this final rule will have no impact on
priorities established by recording those interests at the FAA's
Aircraft Registry. The United States ratified the Cape Town Convention
which, in addition to other items, established an International
Registry for registering covered interests in most commercial-sized
aircraft. Article 29 of the Cape Town Convention firmly establishes
that ``a registered interest has priority over any other interest
subsequently registered and over an unregistered interest.'' The
continued priority of an interest established by registering that
interest with the International Registry is not dependent upon
continued United States civil aircraft registration. For aircraft not
covered by the Cape Town Convention, security interests properly filed
and recorded at the FAA's Aircraft Registry are arguably provided
perpetual validity without further recording. Registration expiration
does not change the ownership or otherwise affect interests in an
aircraft, but private contract terms may affect those interests. The
records for all aircraft that are currently on, or have been on, the
United States aircraft registry are permanent records and will remain
available for review regardless of registration status.
Several commenters stated that expired registration could leave an
aircraft without insurance coverage protecting its owner, lenders,
lessee, and passengers. Commenters suggest that if an aircraft
registration inadvertently expires, the insurance company might take
the position that all or some coverage does not apply.
The FAA is aware that the renewal requirements of the final rule
create a recurring event with which an aircraft owner may fail to
comply. The additional reminder notice and enhanced registration
information available on the Registry Web site should reduce the
likelihood of an inadvertent failure to maintain registration. Aircraft
owners who keep their addresses up-to-date, respond promptly to the
reminder notices, and alert their pilots not to operate aircraft with
expired certificates should avoid operating without current
registration.
A large number of commenters thought that a lessor, particularly a
`passive' owner-trustee lessor for multiple aircraft, could become
liable to the lessee and investors if the lessor failed to obtain
renewal certificates and provide them to a lessee in time to place them
into the aircraft before expiration. The lessor also might have
difficulty collecting any renewal fees fronted for its lessee.
As stated in 49 U.S.C. chapter 441, only the owner of an aircraft
is eligible to apply for registration. An owner's choice to assume a
passive role does not relieve it of its duties to comply with all
applicable registration regulations. The FAA cannot justify tailoring
the registration regulations to accommodate owners who choose to assume
a passive role. As discussed previously, the FAA has modified this
final rule so an owner will have sufficient time to obtain a re-
registration or renewal certificate and forward it to the lessee for
placement in the aircraft before the old certificate expires.
C. Fees, User Fees, New Taxes
Several commenters saw this rulemaking as an excuse to collect a
recurring user fee or tax. Others acknowledged that the current $5
registration fee is too low. Some contended the $45 and $130 fees
proposed in the FAA Reauthorization bill were too high, arguing that an
equitable fee would be lower. Some express concern the $130 fee would
apply every 3 years, claiming that fee is too burdensome. One commenter
saw the registration fee as a penalty for those who are late in meeting
the deadline for re-registration. Another commenter offered that the
full costs of aviation need to be assumed by those rich enough to buy
and fly planes, not the general taxpayers.
The NPRM proposed a $5.00 re-registration and renewal fee. This is
a new and recurring fee which matches the current registration fee,
even though it is less than the estimated direct cost of processing re-
registration and renewal actions. The Federal Aviation Administration
Reauthorization bill (H.R. 915), if enacted as passed by the House of
Representatives on May 21, 2009, will provide the authority to increase
registration-related fees. The projected fees are higher than current
fees but reflect only the direct and applicable indirect unit costs of
the FAA Registry's Aircraft Registration Branch. The $130 registration
fee projected in the legislation would not apply as the fee for re-
registration or renewal. If estimated by the same method used for the
reauthorization bill, the fee for re-registration and renewal would be
about $45. Neither the reauthorization bill, nor the NPRM, proposed a
registration fee that includes a tax, user fee, or charge to generate
revenue for purposes other than maintaining an accurate aircraft
registration database.
Two commenters contended the increase in registration and renewal
fees might raise the cost of learning to fly beyond the means of some
students or otherwise discourage individuals from flying.
The FAA does not believe that these higher fees would cause
students not to be able to learn to fly. Because this fee would be paid
by aircraft owners, the costs could be prorated among flight
instruction sessions. Costs for each student pilot would then be
negligible.
[[Page 41975]]
One commenter proposed a sliding scale for people who have more
than one aircraft. Another mentioned that these fees would affect
general aviation more severely than airlines. This same commenter notes
that the registration fee for cars is reduced as the car ages. Another
requested the registration fee be tied to the aircraft's certificated
gross weight or type certification.
The fees discussed are based on the costs to process aircraft
registration, re-registration, or renewal. These costs are the same for
all aircraft. Therefore, the use of sliding scales, number of aircraft
owned, weight, type, age, or value of an aircraft to determine a fee
would be inconsistent with the cost recovery nature of the fee.
Many commenters characterized the proposed rule as, ``penalizing
the law abiding citizens who provide the information required by the
Government.'' They suggest that the FAA penalize those who do not
comply and raise revenue through punitive actions focusing on the
noncompliant parties.
The FAA does not seek to penalize the innocent and appreciates
those aircraft owners who have made a conscientious effort to promptly
report any changes in their addresses or the statuses of their
aircraft. As discussed earlier, many changes go unreported each year.
In light of the arguments presented in the NPRM and this final rule,
recurrent expiration and renewal of aircraft registration is the only
identified option that can clear accumulated error from the
registration records and maintain it at an acceptable level.
D. Alternatives Suggested by Commenters
Several commenters suggested that registration is or can be
inspected as part of an aircraft's annual inspection.
Only the aircraft owner has the knowledge sufficient to review,
update, and affirm the validity of an aircraft's registration
information. Therefore, the FAA has concluded that it is inappropriate
to include verification of registration as part of an annual
inspection, which may not involve the participation of the aircraft
owner.
One commenter suggested a one-stop FAA address change program, and
another suggested that the time given to report an address change be
extended from 30 to 90 days.
The FAA processes multiple address change requests when these
requests indicate the offices that need to be notified. For example, if
a pilot provides an address update and indicates that it also affects a
specific aircraft that the pilot owns, the FAA updates both the airmen
and aircraft databases. Similarly, the Web page for Airmen
Certification address updates has a reminder message for pilots to also
update any affected aircraft records with a link to instructions on how
to do this. The Registry accepts and processes address updates whenever
they are reported. Extending the timeframe from 30 to 90 days would not
lower the incidence of bad addresses on file. It could however, lower
the perception that it is important to promptly report address and
other registration changes.
Several commenters suggested the FAA should capture address changes
from maintenance forms, DOT Form 6410, the State Registries, the Airmen
database, and from spot checks conducted by Airworthiness Inspectors.
The Registry has routinely made use of alternate resources to
locate possible current addresses. A few of these include the Airmen
Certification files, the U.S. Postal Service Change of Address
database, returned surveys, and airworthiness directive forms. The
Registry uses addresses from these alternate sources to contact
aircraft owners and ask them to verify the correct registration
address. It should be noted that while the FAA may be able to locate an
aircraft's registered owner, changes to the registration information
maintained on their aircraft can be authorized only by the owner.
A few commenters suggested that a title system for aircraft would
provide better information.
The commenters did not offer any insight into how a title system
would provide better information than the existing Certificate of
Registration system as modified by this final rule. The FAA is
authorized to modify its system to include a system of titling
aircraft. (See 49 U.S.C. 44111(c)(1).) However, the costs of converting
to a titling system would likely far outweigh any benefits that would
be derived. Even with a titling system, some form of initial and
periodic updating of information would still be necessary to obtain and
maintain the level of accuracy this final rule will provide.
Several commenters suggested exempting aircraft documented on Parts
121 and 135 maintenance certificates or operated by Fractional or
Flight Department Operations.
Exempting any class of registered aircraft would reduce the
effectiveness of this rule. All categories of aircraft contribute to
the registration errors this rule seeks to correct and prevent from
accumulating in the future. Exempting any group of registered aircraft
would also require the FAA to operate dual registries, which is
operationally impractical.
There were a few suggestions that proposed exempting general
aviation aircraft, because ``they are too small to be a security risk''
or ``terrorists use big airplanes.''
The FAA does not agree. Large aircraft are operated as general
aviation aircraft and all aircraft, regardless of size, are important
enough to be furnished current safety information. Also, many small and
medium-sized aircraft have been found suitable for drug running and
similar activities of interest to law enforcement agencies.
Two commenters requested flexibility in choosing renewal dates.
This suggestion was not accepted. Allowing the choice of renewal
date would unnecessarily complicate both the workflow of registration
renewal and the overall management of the program. Keeping renewal
dates linked to an aircraft's registration date ensures that the
Registry's workload will occur evenly through the year eliminating
potential recurring seasonal backlogs.
One commenter asked the FAA to drop enforcement of the recent
change to Section 47.41(b)(3), which requires return of registration
certificates within 21 days of termination of registration. This
requirement creates a labor-intensive chore when a fleet of aircraft
changes hands.
The FAA rejects the commenter's suggestion. The 21 days allowed for
the return of an ineffective registration certificate provides a
definite and reasonable timeframe to take this action. However, to
avoid creating any additional burden, this final rule has changed Sec.
47.41(b)(3) to direct the holder to destroy an expired registration
certificate rather than return it to the FAA.
One commenter suggested moving the ``Sale Reported'' time limit
from Sec. 47.15(i)(4) to Sec. 47.35, Aircraft Last Previously
Registered in the United States. This would enable a new owner to see
at a glance what their certificate requirements are.
The FAA has determined that Sec. 47.15(i), which addresses the 6-
month interval between filing an aircraft ``Sale Reported'' notice and
N-number cancellation, is in the appropriate location. Section 47.35
refers the reader to Sec. 47.15 and other sections with which the new
owner must comply. Owners are encouraged to review all of part 47 to
ensure compliance with registration regulations.
One commenter suggested that an N-number assignment for aircraft
entering or re-entering the U.S. registration system should be valid
for 180 days
[[Page 41976]]
instead of the 90 days presently allowed.
The FAA does not agree. These assignments are made to aircraft that
are entering the U.S. registration system and need an N-number to place
on their application and supporting documentation. Time is needed only
for entering the N-number on their documents, delivering them to the
Registry, and for registration processing time. If a delay arises that
is out of the applicant's control, the applicant may apply for an
extension. Because these aircraft may not operate until a registration
certificate is issued, these applications receive priority processing.
If a longer lead time is needed, the owner is encouraged to reserve an
N-number and make application for assignment at the appropriate time.
One commenter, both a pilot and air traffic controller, cautions
that under no circumstances should a controller be concerned with Part
47, nor should an aircraft in flight be denied air traffic service and
support.
This rule concerns re-registration, registration, and renewal of
aircraft registration certificates. It is not intended to address air
traffic control issues.
Several commenters suggested the FAA should require re-registration
and renewal applicants to report total airframe flight hours from a
specific date with an estimated breakdown of that time by primary
mission areas or types of operation. The data collected would enhance
safety research and measurement of safety improvement.
This suggestion is beyond the scope of this final rule.
One commenter, an aviation parts provider and Supplemental Type
Certificate holder, requests that a primary key be assigned to aircraft
records available for download from the Registry's Web site. This would
enable data users to track individual records through successive
downloads even if N-numbers, model names, or serial numbers change and
track which of their products are in use on these aircraft. Similar
benefits would be available to manufacturers, government, and law
enforcement agencies depending on their applications.
Although this suggestion is beyond the scope of this final rule, it
will be forwarded to the appropriate FAA organization for
consideration.
One commenter proposed revising Sec. 47.33(a)(2) to allow use of
an invoice from a kit manufacturer as evidence of ownership equal to a
bill of sale.
This proposal is beyond the scope of this rule. Section 47.33(b)
provides an alternative method of establishing aircraft ownership.
One commenter proposed replacing the annual inspection requirement
for noncommercial aircraft with an inspection requirement based on a
combination of flight hours and time since last inspection. The longest
interval before inspection would be 3 years. This would save time and
money for the many aircraft owners of low use aircraft without
affecting safety.
This proposal is beyond the scope of this rule. The commenter may
submit this proposal as its own project in accord with CFR 14 Part 11
Basic Rulemaking Procedures.
One commenter representing a finance company disagreed with the
need for additional disclosures in financing documents. The current
level of required exposure allows competitors to undercut each others
deals, reducing income margins for finance companies.
This proposal is beyond the scope of this rule.
VI. Rulemaking Notices and Analyses
A. Paperwork Reduction Act
As required by the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(d)), the FAA submitted a copy of the new information collection
requirements in this final rule to the Office of Management and Budget
(OMB) for its review. OMB assigned OMB Control Number 2120-0729. 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 Office of Management and Budget (OMB) control number.
A description of the annual burden is shown below.
Description of Respondents: The likely respondents to the
information requirements in this final rule are all aircraft owners who
want to continue registration past the expiration date on their
Certificate. The FAA estimates the number of renewals will be 65,719
annually; however, the number of aircraft owners and the signature
requirements for each aircraft vary depending on the registration type
(e.g., individual, partnership, government, or co-ownership).
Estimated Burden: Over 20 years, the FAA estimates 1,308,873 forms
will be processed. Of these forms, 191,652 will be for re-registration
and 1,117,221 will be for renewal. As described in the Regulatory
Evaluation, the FAA estimates its own processing costs will be $9.10
and $5.82, respectively, per form. Over 20 years, these costs sum to
$8,246,259.42 (calculation: 191,652 times $9.10 plus 1,117,221 times
$5.82), for an annual cost of $412,312.97 (calculation: $8,246,259.42
di