Falsification, Reproduction, Alteration, Omission, or Incorrect Statements, 8560-8578 [2024-00872]

Download as PDF 8560 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules the Federal Register (88 FR 47650; Notice No. 23–10). Commenters were instructed to provide comments on or before October 23, 2023 (i.e., 90 days from the date of publication of the NPRM). However, based on numerous requests to extend the comment period, the FAA extended the comment period on October 4, 2023 (88 FR 68507) to January 22, 2024 (i.e., an additional 90 days for a total of 180 days from the date of publication of the NPRM). Throughout the comment period, the rulemaking team assigned to this rulemaking project met to discuss the comments received. At a recent meeting of the rulemaking team, the FAA became aware of a conversation that was held between one of the members of the team and members of ASTM International (‘‘ASTM’’) regarding the contents of the NPRM during the ASTM International Fall Committee Week at a meeting of the ASTM International, Committee F37 on Light-Sport Aircraft. At the time, that team member recommended that the members of ASTM Committee F37 submit their comments to the docket. In the interest of transparency, the FAA is taking two steps. First, a Memorandum to the Docket (the ‘‘Memorandum’’) summarizing the conversation between ASTM Committee F37 and the FAA has been placed on the docket as of February 1, 2024. Second, the FAA is reopening the comment period for thirty (30) days to allow the public an opportunity to review the contents of the Memorandum and an opportunity to respond if desired. Commenters should limit comments during this extension to the contents of the Memorandum. lotter on DSK11XQN23PROD with PROPOSALS1 Reopening of Comment Period Under the above circumstances, the FAA finds that an additional thirty (30) days will provide sufficient opportunity for the public to comment on the Memorandum. Therefore, the comment period for Notice No. 23–10 is reopened until March 11, 2024. The FAA will not extend the comment period for this rulemaking further. Issued under authority provided by 49 U.S.C. 106(f), 44701(a), and 44703 in Washington, DC. Brandon Roberts, Executive Director, Office of Rulemaking, Federal Aviation Administration. [FR Doc. 2024–02545 Filed 2–7–24; 8:45 am] BILLING CODE 4910–13–P VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Parts 3, 21, 43, 60, 61, 63, 65, 67, 89, 107, 111, 120, 121, 139, 142, 145, 413 [Docket No.: FAA–2024–0021; Notice No. 24–07] RIN 2120–AL84 Falsification, Reproduction, Alteration, Omission, or Incorrect Statements Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Notice of proposed rulemaking (NPRM). AGENCY: The FAA proposes to amend, restructure, and consolidate the falsification regulations presently located throughout title 14 of the Code of Federal Regulations. This proposal would (1) harmonize inconsistencies among the various falsification regulations and associated sanctions; (2) consolidate all existing falsification regulations into a general rule that standardizes the existing falsification regulations; and (3) ensure that falsification-related conduct not addressed by pertinent current regulations would be covered under the general rule. In addition, this proposal would create a falsification prohibition applicable to the regulations governing Commercial Space Transportation. DATES: Send comments on or before April 8, 2024. ADDRESSES: Send comments identified by docket number FAA–2024–0021 using any of the following methods: • Federal eRulemaking Portal: Go to www.regulations.gov/ and follow the online instructions for sending your comments electronically. • Mail: Send comments to Docket Operations, M–30; U.S. Department of Transportation (DOT), 1200 New Jersey Avenue, SE, Room W12–140, West Building Ground Floor, Washington, DC 20590–0001. • Hand Delivery or Courier: Take comments to Docket Operations in Room W12–140 of the West Building Ground Floor at 1200 New Jersey Avenue, SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. • Fax: Fax comments to Docket Operations at (202) 493–2251. Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edit, including any personal SUMMARY: PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 information the commenter provides, to www.regulations.gov, as described in the system of records notice (DOT/ALL– 14 FDMS), which can be reviewed at www.dot.gov/privacy. Docket: Background documents or comments received may be read at www.regulations.gov at any time. Follow the online instructions for accessing the docket or go to the Docket Operations in Room W12–140 of the West Building Ground Floor at 1200 New Jersey Avenue, SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: John C. Stuart, Jr., Senior Attorney, Aviation Litigation Division, AGC–300, Federal Aviation Administration, Office of the Chief Counsel, 800 Independence Avenue SW, Washington, DC 20591; telephone (202) 267–9958; email mike.stuart@faa.gov. SUPPLEMENTARY INFORMATION: Table of Contents I. Executive Summary A. Overview of Proposed Rule B. Background C. Statement of the Problem D. Summary of the Costs and Benefits II. Authority for This Rulemaking III. Discussion of the Proposal A. Applicability of the Proposed Rulemaking to 14 CFR Chapter I B. Applicability of the Proposed Rulemaking to 14 CFR Chapter III C. ‘‘Statements’’ in Proposed Sections 3.403(a), 3.405(a), 402.3(a), and 402.5(a) D. Categories of ‘‘Any Document In Any Format’’ in Proposed Sections 3.403 and 3.405—14 CFR Chapter I E. Categories of ‘‘Any Document In Any Format’’ in Proposed Sections 402.3 and 402.5—14 CFR Chapter III F. Fraudulent or Intentionally False Statements in Proposed Sections 3.403(a) and 402.3(a) G. Production, Reproduction, Alteration, for Fraudulent Purpose in Proposed Sections 3.403(b) and 402.3(b) H. Knowingly Omitting or Causing To Be Omitted a Material Fact Under Proposed Sections 3.403(c) and 402.3(c) I. Sanction Under Proposed Sections 3.403(d) and 402.3(d) for Conduct Described in Sections F, G, and H of this NPRM J. Incorrect Statements, or Omissions under Proposed Sections 3.405 and 402.5. K. Sanction Under Sections 3.405(b) and 402.5(b) for Incorrect Statements, or Omissions IV. Regulatory Notices and Analyses A. Regulatory Evaluation B. Regulatory Flexibility Act C. International Trade Impact Assessment D. Unfunded Mandates Assessment E. Paperwork Reduction Act F. International Compatibility G. Environmental Analysis V. Executive Order Determinations A. Executive Order 13132, Federalism E:\FR\FM\08FEP1.SGM 08FEP1 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules B. Executive Order 13175, Consultation and Coordination With Indian Tribal Governments C. Executive Order 13211, Regulations That Significantly Affect Energy Supply, Distribution, or Use D. Executive Order 13609, Promoting International Regulatory Cooperation VI. Additional Information A. Comments Invited B. Availability of Rulemaking Documents C. Small Business Regulatory Enforcement Fairness Act lotter on DSK11XQN23PROD with PROPOSALS1 I. Executive Summary A. Overview of Proposed Rule The FAA and other relevant stakeholders rely on complete and accurate information in safety-related records. Indeed, the FAA and regulated persons make critical safety-related decisions based on the information, such as in FAA-required records, and necessarily rely on the veracity of that information. When a person provides falsified information or omits material information from records, that person creates a threat to aviation safety by inhibiting the ability of the FAA and other stakeholders to make critical safety-related decisions. Falsification regulations promote the integrity of information necessary to ensure aviation safety. They also serve as a basis for appropriate action when a person engages in falsification-related conduct. The proposed rule would affect applicable parts in 14 CFR chapters I and III. Falsification prohibitions are currently found in 14 CFR chapter I, parts 3, 21, 43, 60, 61, 63, 65, 67, 89, 107, 111, 120, 121, 139, 142, and 145. The FAA proposes to remove the existing falsification regulations from parts 21, 43, 60, 61, 63, 65, 67, 89, 107, 111, 120, 121, 139, 142, and 145, and consolidate them in a new subpart in part 3. The proposed rule in part 3 would also apply to those parts of 14 CFR chapter I that do not currently have falsification regulations but for which such regulations are clearly warranted, as explained in the ‘‘Discussion of the Proposal Section’’ in this NPRM. Those parts are 5, 23, 25, 26, 27, 29, 31, 33, 34, 35, 36, 45, 47, 48, 49, 68, 77, 91, 93, 99, 101, 103, 105, 117, 119, 125, 129, 133, 135, 136, 137, 141, 147, and 183. As a result, the proposed rule in part 3 would create standardized falsification proscriptions and apply them to 14 CFR parts 5, 21, 23, 25, 26, 27, 29, 31, 33, 34, 35, 36, 43, 45, 47, 48, 49, 60, 61, 63, 65, 67, 68, 77, 89, 91, 93, 99, 101, 103, 105, 107, 111, 117, 119, 120, 121, 125, 129, 133, 135, 136, 137, 139, 141, 142, 145, 147, and 183. The proposed rule would also remove the existing falsification regulations located in 14 CFR 413.17(c) and create VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 a new part—part 402—containing a falsification prohibition applicable to 14 CFR chapter III, subchapter C. Subchapter C consists of 14 CFR parts 413, 414, 415, 417, 420, 431, 433, 435, 437, 440, 450, and 460. The proposed rules in part 3 and part 402 would proscribe: (1) intentionally false or fraudulent statements; (2) productions, reproductions, or alterations for fraudulent purpose; (3) knowingly omitting or causing to be omitted a material fact; and (4) incorrect statements. Each prohibition is described in the ‘‘Discussion of the Proposal’’ section of this NPRM. Also, the proposed rule would standardize sanctions for violations of the falsification regulations under 14 CFR, chapters I and III, cited in this NPRM. B. Background 1. Definition of ‘‘falsification regulations’’ and Current Locations in 14 CFR The term ‘‘falsification regulations’’ as used in this NPRM generically refers to a variety of provisions in 14 CFR parts 1–199 implemented over decades that variously prohibit the following: (1) fraudulent or intentionally false statements or entries; (2) any reproduction for fraudulent purpose; (3) any alteration, including alterations for fraudulent purpose; (4) knowingly concealing or causing to be concealed a material fact by omission; (5) concealing or causing to be concealed a material fact; (6) known omissions; (7) misleading statements; and (8) incorrect statements or entries upon which the FAA relied or could have relied. The term also refers to willful false statements prohibited in 14 CFR 413.17(c). A violation of these standards is referenced in this NPRM as ‘‘falsification-related’’ conduct. The proposed rulemaking would consolidate these nine categories of proscribed conduct into the four categories identified above. A false statement is distinct from an intentionally false or fraudulent one. A false statement or entry 1 is one that is 1 Over the years, the agency’s use of the terms ‘‘statement’’ and ‘‘entry’’ has varied. In the earliest falsification regulations (i.e., in 1965), a clear dichotomy existed between statements and entries: a statement applied to an application while an entry applied to a ‘‘logbook, record, or report that is required to be kept, made, or used to show compliance’’ with a requirement (i.e., 14 CFR 61.48 (currently § 61.59), 63.20, 65.20, and 67.20 (currently § 67.403)). Consistent with those earliest regulations, in 1978, 14 CFR 43.12(a)(1) proscribed fraudulent entries ‘‘in any record or report that is required to be kept, made, or used to show compliance’’ with a requirement. In 1992, the FAA continued applying the distinction between statements and entries when it issued 14 CFR 21.2. PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 8561 incorrect. An incorrect statement or entry is made when a person unknowingly provides false (i.e., incorrect) information upon which the agency relies. Incorrect statements or entries are prohibited by 14 CFR 60.33(c)(1)–(2) and 67.403. In contrast, an intentional false statement is comprised of three elements: a (1) false statement, (2) in reference to a material fact,2 (3) that is made with knowledge of its falsity.3 A fraudulent statement or entry consists of the preceding three elements plus two additional elements: (1) an intent to deceive and (2) with action taken in reliance upon the representation.4 Intentionally false or fraudulent statements or entries are currently proscribed by 14 CFR 21.2(a)(1)–(2), 43.12(a)(1), 60.33(a)(1)– (2), 61.59(a)(1)–(2), 63.20(a)(1)–(2), 65.20(a)(1)–(2), 67.403(a)(1)–(2), 89.5(a)(1)–(2), 107.5(a)(1), 111.35(a)–(c), 120.103(e)(1)–(2), 121.9(a)(1)–(2), 139.115(a)(1)–(2), and 145.12(a)(1). Reproductions for a fraudulent purpose and alterations, including alterations for a fraudulent purpose, are proscribed in falsification regulations. Most of the existing falsification regulations already prohibit reproductions and alterations. Such prohibitions are found at 14 CFR 21.2(a)(3)–(4), 43.12(a)(2)–(3), 60.33(a)(3), 61.59(a)(3)–(4), 63.20(a)(3)– (4), 65.20(a)(3)–(4), 67.403(a)(3)–(4), 89.5(a)(3), 107.5(a)(2), 120.103(e)(3), 139.115(a)(3)–(4), and 145.12(a)(2)–(3). While some of these regulations prohibit any alteration of the applicable document (i.e., 14 CFR 21.2(a)(4), 61.59(a)(4), 65.20(a)(4), and 67.403(a)(4)), others prohibit only fraudulent alterations of the applicable document (i.e., 14 CFR 43.12(a)(3), 60.33(a)(3), and 107.5(a)(2)). Knowingly omitting or causing to be omitted a material fact results when a person knew that they failed to include the material fact in the document at The clear dichotomy was blurred when the agency proscribed statements in connection with falsifying both applications and records or reports that are kept, made, or used to show compliance (i.e., 14 CFR 21.2, as amended in 2009; 60.33 (2006); 121.9 (2013); and 111.35 (2021)). Conversely, in 14 CFR 145.12 (2014), the agency proscribed entries in connection with falsifying both applications and records and reports. However, during the same period, the FAA issued other falsification regulations that retained the dichotomy in the earliest falsification regulations (i.e., 14 CFR 120.103 (2004); § 120.213 (2004); and § 139.115 (2013)). 2 A false statement is ‘‘material’’ if it has the natural tendency to influence or is capable of influencing an agency decision. Cassis v. Helms, 737 F.2d 545, 547 (6th Cir. 1984). 3 See, Pence v. United States, 316 U.S. 332, 338 (1942); Hart v. McLucas, 535 F.2d 516, 519 (9th Cir. 1976). 4 See Pence, 316 U.S. at 338. E:\FR\FM\08FEP1.SGM 08FEP1 8562 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules issue.5 The prohibition of known material omissions is currently found in (1) 14 CFR 89.5(b)(1)–(2) and 145.12(b)(1)–(2) (knowingly concealing or causing to be concealed, by omission, a material fact); (2) 14 CFR 60.33(a)(2) and 121.9(a)(2) (known omissions); and (3) 14 CFR 111.35(a)–(c) (concealing or causing to be concealed a material fact). Misleading statements are prohibited by 14 CFR 21.2(a)(1)–(2). The agency previously stated that for purposes of that section, ‘‘a misleading statement requires a material representation or omission [i.e., within the statement] that is likely to mislead a person when that person is acting with reasonable diligence under the circumstances.’’ 6 Willful false statements are referenced in 14 CFR 413.17(c). Generally, for a false statement to be ‘‘willful,’’ it must be made deliberately and with knowledge.7 Section 413.17(c) adds that such statements are punishable under 18 U.S.C. 1001 and by administrative sanction in accordance with 14 CFR part 405. lotter on DSK11XQN23PROD with PROPOSALS1 2. Current Falsification Regulation Sanction Provisions and Locations in 14 CFR As discussed in the section of this NPRM titled ‘‘Authority for this Rulemaking,’’ the FAA has statutory authority to take certificate action or civil penalty action for falsification regulation violations. In many parts of 14 CFR chapter I that contain falsification regulations, the FAA has elected to set forth sanction consequences for violating a falsification regulation (i.e., 14 CFR 21.2(b); 43.12(b); 60.33(b)–(c); 61.59(b); 63.20(b); 65.20(b); 67.403(b)–(c); 89.5(c); 107.5(b); 121.9(b); 139.115(b); 142.11(e)(3); and 145.12(c)). Other falsification regulations contain no sanction provision (i.e., 14 CFR 111.35, 120.103(e), and 120.213). The falsification regulations that contain sanction provisions lack consistency, as discussed in the ‘‘Statement of the Problem’’ section of this NPRM. Section 5 The FAA prohibited knowingly concealing or causing to be concealed a material fact by omission in the 2014 amendments to 14 CFR part 145. See 14 CFR 145.12(b)(1)–(2). In the preamble of the final rule, the agency explained that a known omission under § 145.12(b)(1)–(2) ‘‘is triggered when a person knew that they failed to include the material fact in the document at issue.’’ 79 FR 46979 (Aug. 12, 2014). 6 74 FR 53377 (Oct. 16, 2009) (preamble of the final rule amending 14 CFR part 21). 7 See, generally, McClanahan v. United States, 230 F.2d 919, 924 (5th Cir. 1956) (in a prosecution under 18 U.S.C. 1001 in connection with fraudulent mortgage loan applications, the judge appropriately instructed the jury that the word ‘‘willful’’ refers to a forbidden act that is done deliberately and with knowledge). VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 413.17(c) of title 14, chapter III, provides that willful false statements are punishable by fine and imprisonment and could result in ‘‘administrative sanctions.’’ 8 C. Statement of the Problem The FAA implemented the first of its falsification regulations in 1965.9 Since then, the agency has implemented various falsification regulations, most recently in 2021. The piecemeal publication of falsification regulations has contributed to two issues that this proposal seeks to remedy: (1) the type of conduct proscribed by the falsification regulations and prescribed sanctions referenced in the various falsification regulations are not consistent across the existing falsification regulations; and (2) many 14 CFR parts lack a falsification prohibition but warrant one. 1. Inconsistencies in the Proscribed Conduct and Authorized Sanctions Under the Falsification Regulations The type of activity proscribed as falsification-related conduct and sanction options for such conduct are 8 In 14 CFR 413.17(c), willful false statements made in any application or document relating to an application, license, or permit are subject to administrative sanctions in accordance with 14 CFR part 405. In 2001, the FAA removed the civil penalty provisions from part 405 and added them to part 406. The FAA, however, inadvertently did not amend § 413.17(c) to reflect the recodification of the civil penalty provisions in part 406. This proposed rulemaking will restore the FAA’s ability to assess civil penalties for violations of the falsification regulations in proposed part 402. 9 The Civil Aeronautics Act of 1938 (Act of 1938) provided criminal penalties for falsification of records by ‘‘[a]ny air carrier, or any officer, agent, employee, or representative thereof . . . .’’ Act of 1938, § 902(e) (1938). However, the Act of 1938 authorized no administrative sanction for falsification, and the Civil Aviation Regulations (CARs) implemented under the Act of 1938 contained no falsification regulations. Under the Federal Aviation Act of 1958, the Federal Aviation Agency issued an NPRM in 1964 acknowledging the absence of falsification proscriptions in its regulations. The FAA stated that it was ‘‘considering amending Parts 61, 63, 65, 67, and 143 [New] of the Federal Aviation Regulations to prohibit cheating on FAA written tests, falsifying applications for airman certificates, logbooks, records, or reports, or unauthorized reproducing or altering certificates or ratings.’’ 29 FR 4919 (Apr. 8, 1964). The FAA explained that ‘‘it has been unable to take appropriate corrective action’’ against those who cheat on written tests. Id. at 4920. The FAA continued, ‘‘[t]his was due to the absence in the regulations of a specific prohibition of the conduct involved in the particular case. Therefore, it is proposed to adopt regulations that will prohibit cheating activities in connection with written tests for airman certificate or ratings, or the falsification of applications for airman certificates, logbooks, records, and reports used to show compliance with the requirements for the certificates or ratings, or unauthorized reproduction or alteration of certificates or ratings.’’ Id. These first falsification regulations became effective March 20, 1965. 30 FR 2195 (Feb. 18, 1965). PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 not consistent across the existing falsification regulations. The agency issued the earliest falsification regulations in title 14 chapter I between 1965 and 1978. The FAA directed 14 CFR 61.48 (1965), 63.20 (1965), and 65.20 (1965) at the conduct of individuals.10 These regulations generally prohibited individuals from making intentionally false or fraudulent statements or entries, reproductions for a fraudulent purpose, or alterations in applications or documents that are kept, made, or used to show compliance with a regulatory requirement specific to the part where the particular falsification regulation was published. The sanction provisions in §§ 61.48, 63.20, and 65.20 were consistent in the context of sanction: Each served as a basis for the suspension or revocation of ‘‘any’’ airman or ground instructor certificate or rating.11 Section 67.20 (1965), amended and recodified at § 67.403, prohibited individuals from making intentional false or fraudulent statements, reproductions for a fraudulent purpose, or alterations in connection with applications for FAA medical certification.12 Such violation conduct formed a basis for suspending or revoking ‘‘all’’ airman, ground instructor, and medical certificates and ratings held by that person. In addition, unlike the falsification regulations referenced in the preceding paragraph, § 67.403 provided for certificate denials (which, in the context of part 67, involved the denial of an application for a medical certificate).13 The FAA issued 14 CFR 43.12 (1978) to proscribe individuals or entities from making fraudulent entries and reproductions and alterations for a 10 On February 1, 1973, the falsification regulation at 14 CFR 61.48 was recodified at § 61.59 as part of the FAA’s amendments to parts 61 and 91. 38 FR 3168 (Feb. 1, 1973). 11 Section 61.59(b) specifies ‘‘any airman certificate, rating, or authorization held by that person.’’ Sections 63.20(b) and 65.20(b) specify ‘‘any airman or ground instructor certificate or rating held by that person.’’ Although a ground instructor certificate is not an airman certificate as defined by statute or regulation, it is a type of authorization issued under part 61. 12 The FAA issued 14 CFR 67.20 in 1965. 30 FR 2197 (Feb. 18, 1965). On March 19, 1996, the FAA amended § 67.20 and renumbered it as 14 CFR 67.403 as part of its revisions to airman medical standards and medical certification procedures. 61 FR 11238 (Mar. 19, 1996). 13 Also, § 67.403(b) specified consequences that are unique to the medical certification process in part 67, namely, that falsification is a basis for denying all requests for an Authorization for Special Issuance of a Medical Certificate (Authorization) or Statement of Demonstrated Ability (SODA). Section 67.403(b) also provides for the withdrawal of an Authorization or SODA as a consequence of intentional falsification, fraud, or an alteration. E:\FR\FM\08FEP1.SGM 08FEP1 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules fraudulent purpose in documents kept, made, or used to show compliance with a regulatory requirement specific to part 43.14 In 1982, the FAA amended § 43.12(a)(1) to include intentionally false entries.15 In contrast to §§ 61.59, 63.20, and 65.20, sanction in the context of a § 43.12 violation was limited to suspension or revocation of ‘‘the applicable’’ certificate (i.e., the certificate used during the commission of the violation conduct, which most frequently is a mechanic certificate issued under part 65.) 16 In 1992, the FAA implemented 14 CFR 21.2 to address falsification-related conduct in the context of certification procedures for products and articles.17 The agency explained that § 21.2 ‘‘was modeled after similar provisions found in [Federal Aviation Regulations] parts 43, 61, 63, 65, and 143 for certificates, authorizations, and ratings issued under those parts.’’ 18 Thus, § 21.2 was similar to the predecessor falsification regulations insofar as proscribing intentionally false and fraudulent statements, reproductions for a fraudulent purpose, and alterations. In 2009, the FAA amended § 21.2(a)(1)-(2) by proscribing misleading statements.19 At that time, the FAA specified that § 21.2 applied to both entities and individuals.20 Section 21.2 became inconsistent with the predecessor falsification regulations to the extent that it proscribed misleading statements while the predecessor falsification regulations did not. Regarding sanction, § 21.2 was consistent with the predecessor regulations in that it provided for the suspension or revocation of certificates. In addition, § 21.2 also prescribed the suspension or revocation of approvals. The 2009 amendments to § 21.2 made it consistent with § 67.403 by including a provision specifying that falsification is a basis for denying issuance of any 14 43 FR 22639 (May 25, 1978). FR 41085 (Sept. 16, 1982). 16 Section 43.12(b) specifies, ‘‘the applicable airman, operator, or production certificate, Technical Standard Order Authorization, FAA-Parts Manufacturer Approval, or Product and Process Specification.’’ 17 57 FR 41366 (Sept. 9, 1992). 18 57 FR 41366. 19 74 FR 53368 (Oct. 16, 2009). 20 In the preamble to the final rule amending the part 21 certification procedures and adding the falsification prohibition, the FAA noted that the rule could apply to entities and individuals. See 74 FR 53381 (Oct. 16, 2009) (‘‘This rule primarily directly affects all type certificate (TC) and production approval holders (PAHs), including holders of PCs, TSOs, and PMAs. Regional air cargo carriers and exporters of used aircraft and used engines, propellers, and other articles (primarily distributors and individuals) are also directly affected by this rule.’’). lotter on DSK11XQN23PROD with PROPOSALS1 15 47 VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 certificate or approval under part 21.21 However, the sanction in § 21.2 limited the scope of affected certificates. While the sanction in the predecessor falsification regulations affected ‘‘any’’ airman or ground instructor certificate (§§ 61.59, 63.20, and 65.20), or airman, ground instructor, and medical certificates (§ 67.403), 14 CFR 21.2 limited the falsification sanction of suspension or revocation to certificates or approvals issued under ‘‘this part.’’ 22 Inconsistencies continued to emerge in falsification regulations issued or amended by the agency after § 21.2. For example, in 14 CFR 142.11(e)(3) (1996), the agency deviated from prior falsification regulations by proscribing ‘‘incomplete,’’ ‘‘inaccurate,’’ or ‘‘false information’’ (and not ‘‘intentionally false information’’).23 Consistent with the limited scope of affected certificates under §§ 21.2 and 43.12, but inconsistent with the broader scope under other predecessor falsification regulations, § 142.11(e)(3) affected certificates issued under ‘‘this part,’’ (i.e., 14 CFR part 142). Also, in 1996, the FAA amended the falsification regulations in 14 CFR part 67 to broaden the regulatory basis for action by proscribing the provision of incorrect statements or entries by an applicant or airman when applying for medical certification.24 However, the agency did not amend other falsification regulations that existed prior to 1996 to add an incorrect statement or entry provision. In 2006, the FAA proscribed incorrect statements and entries in 14 CFR 60.33.25 Following the publication of § 60.33, however, the FAA did not amend existing regulations to address incorrect statements and entries. It also did not add prohibitions against incorrect statements and entries in the subsequent falsification regulations in 14 CFR parts 89, 107, 111, 121, 139, and 145. The FAA specified different sanctions in proscribing incorrect statements or entries in §§ 67.403(c) and 60.33 and incomplete, inaccurate, and false information in § 142.11(e)(3). The sanction in § 67.403(c) limits the scope of affected certificates to the medical certificate, authorization, or statement of demonstrated ability at issue rather than 21 14 CFR 21.2(b)(1) (74 FR 53368). CFR 21.2(b)(2) 23 Section 142.11(e)(3) provides: ‘‘The Administrator may deny, suspend, revoke, or terminate a certificate under this part if the Administrator finds that the applicant or the certificate holder . . . (3) Has provided incomplete, inaccurate, fraudulent, or false information for a training center certificate . . . .’’ 24 61 FR 11251 (Mar. 19, 1996). 25 71 FR 63426 (Oct. 30, 2006). 22 14 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 8563 ‘‘all’’ certificates as under § 67.403(b) for other falsification-related conduct under part 67. Under 14 CFR 60.33, the sanction for an incorrect statement or entry on which the FAA relied is removal of Flight Simulation Training Device (FSTD) qualification, including the withdrawal of approval for use of an FSTD or denying an application for a qualification.26 As to the provision of ‘‘incomplete,’’ ‘‘inaccurate,’’ or ‘‘false information’’ referenced in § 142.11(e)(3), the regulation authorizes the denial, suspension, revocation, or termination of a part 142 certificate. In 2004, the FAA added falsification provisions to the industry drug and alcohol testing regulations, which, at that time, were located at 14 CFR part 121, appendices I and J. Effective July 13, 2009, the FAA’s drug and alcohol testing regulations were recodified, without substantive change, at 14 CFR 120.103(e) and 120.213.27 (These regulations will hereinafter be referred to as §§ 120.103(e) and 120.213.) Sections 120.103(e) and 120.213 are limited to proscribing intentional falsification and fraud, and reproductions and alterations for a fraudulent purpose, regarding applications for alcohol and drug testing programs, and reports or records required under those programs. These sections contain no sanction provisions. The falsification proscriptions in the more recent falsification regulations (i.e., 14 CFR 89.5 (2021), 107.5 (2016), 111.35 (2021), 121.9 (2013), 139.115 (2013), and 145.12 (2014)) similarly lack consistency in describing the scope of conduct. Sections 107.5 and 139.115 proscribe intentional falsification, fraud, reproductions for a fraudulent purpose, and alterations for a fraudulent purpose. Sections 89.5 and 145.12 contain those same proscriptions and also proscribe knowingly concealing or causing to be concealed, by omission, a material fact. Sections 111.35 and 121.9, while proscribing intentional falsification and fraud, do not proscribe reproductions and alterations. Section 111.35, similar to §§ 89.5 and 145.12, proscribes concealing or causing to be concealed a material fact. However, § 111.35 lacks the knowledge element and ‘‘omission’’ terminology that is present in §§ 89.5 and 145.12. Section 121.9 proscribes ‘‘known omissions.’’ In the context of sanction provisions, 14 CFR 89.5, 107.5, 111.35, 121.9, 139.115, and 145.12 are largely inconsistent. Section 111.35 contains no sanction provision. The sanction provisions in §§ 89.5, 107.5, 121.9, 26 14 CFR 60.33(c). 74 FR 22649 (May 14, 2009). 27 See E:\FR\FM\08FEP1.SGM 08FEP1 8564 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules 139.115, and 145.12 vary in consistency. Section 139.115 provides for suspension or revocation but does not provide for a civil penalty. Meanwhile, §§ 89.5, 107.5, 121.9, and 145.12 authorize suspension or revocation, civil penalty, and denial of an application.28 Yet, the reach of suspensions, revocations, and denials vary among §§ 89.5, 107.5, 121.9, 139.115, and 145.12. Section 107.5(b) provides for suspension or revocation of ‘‘any certificate, waiver, or declaration of compliance issued or accepted by the Administrator under this part and held by that person . . . ’’ and the denial of any application for a remote pilot certificate or certificate of waiver and declaration of compliance. Section 121.9 applies the suspension or revocation to ‘‘any certificate held by that person that was issued under this chapter’’ (i.e., 14 CFR parts 1–199) and the denial of an application for any approval under this part. Section 139.115(b) provides for suspension or revocation of ‘‘any certificate or approval under this part and held by that certificate holder and any other certificate issued under this title’’ (i.e., 14 CFR) but does not provide for a denial of an application. Section 145.12 allows the FAA to suspend or revoke ‘‘the repair station certificate and any certificate, approval, or authorization issued by the FAA and held by that person’’ and the denial of an application under part 145. In § 89.5, the FAA articulated a broader approach to sanction. Under § 89.5(c), falsification is a basis for ‘‘[d]enial, suspension, rescission, or revocation of any acceptance, application, approval, authorization, certificate, declaration, declaration of compliance, designation, document, filing, qualification, means of compliance, record, report, request for reconsideration, or similar instrument granted by the Administrator and held by that person’’ or a civil penalty. Regarding 14 CFR chapter III, 14 CFR 413.17(c) is the sole falsification regulation. It references only willful false statements and thus is limited in its application. It cites criminal sanctions under 18 U.S.C. 1001. It also provides that willful false statements may result in ‘‘administrative sanctions in accordance with part 405 of this chapter.’’ 29 Although the removal of § 413.17(c) would remove the reference to 18 U.S.C. 1001, this does not imply that 18 U.S.C. 1001 is inapplicable to false statements submitted to the FAA, nor does it restrict the FAA’s ability to refer possible criminal violations of 18 U.S.C. 1001 to the DOT Office of the Inspector General or the Department of Justice. Intentionally false statements currently covered by 14 CFR chapter I and the proposed 14 CFR 3.403 and 402.3 may still be subject to 18 U.S.C. 1001. However, FAA regulations do not generally refer to possible criminal consequences, and the FAA does not believe that the regulations should specifically mention 18 U.S.C. 1001. 2. Incomplete Application of the Falsification Regulations Many parts of 14 CFR chapter I lack a falsification regulation but warrant one. In the absence of such falsification regulations, the FAA is precluded from taking enforcement action for falsification-related conduct under those parts. As a result, there is no general or specific deterrent for those who might engage in such conduct. For example, the falsification regulation in part 121 applying to domestic, flag, and supplemental operations currently has no counterpart in part 135 pertaining to commuter and on-demand operations despite that both parts authorize commercial operations. Similarly, the falsification regulation in part 142 applying to training centers has no counterpart in part 141 or part 147. Part 47, which relates to aircraft registration, also contains no falsification prohibition despite instances of falsified aircraft registration applications. Similarly, most of 14 CFR chapter III lacks falsification regulations but warrants them. In 14 CFR chapter III, only a single falsification regulation (i.e., § 413.17(c)) exists. It addresses only willful false statements in the context of applications and documents relating to applications, licenses, or permits. Although some regulations in 14 CFR chapter III require licensees to ensure the continuing accuracy of representations contained in their application (i.e., §§ 413.7(c), 414.13(d), 414.21, 414.27, 417.11, 431.73(a), and 450.211(a)), those regulations do not provide a comprehensive falsification prohibition. Table 1 sets forth a brief history of the falsification regulations, including prohibitions and sanction for the year each regulation was implemented.30 lotter on DSK11XQN23PROD with PROPOSALS1 TABLE 1—HISTORY OF FAA FALSIFICATION REGULATIONS Year Part(s)/section(s) Prohibited conduct Sanction 1965 ........ 61.48 (presently codified at §§ 61.59), 63.20, 65.20. 1965 ........ 67.20 (presently codified at § 67.403). Fraudulent or intentionally false statements and entries, reproductions for a fraudulent purpose, and alterations involving documents and records associated with parts 61, 63, and 65, respectively. Fraudulent or intentionally false statements and entries, fraudulent reproductions, alterations, and incorrect statements or entries involving documents and records under part 67. 61.59—Suspending or revoking any airman certificate, rating, or authorization held by that person; 63.20, 65.20—Suspending or revoking any airman or ground instructor certificate or rating held by that person. (1) Suspending or revoking all airman, ground instructor, and medical certificates and ratings held by that person; (2) Withdrawing all Authorizations or SODAs held by that person; and (3) Denying all applications for medical certification and requests for Authorizations or SODAs. An incorrect statement or entry may serve as a basis for suspending or revoking a medical certificate; withdrawing an Authorization or SODA; or denying an application for a medical certificate or request for an authorization or SODA. 28 In 2021, the FAA amended 14 CFR 107.5 to include the denial of a declaration of compliance as a sanction for falsification. 86 FR 4381 (Jan. 15, 2021). 29 See note 6, supra, regarding the removal of the civil penalty prescription from part 405. VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 30 After implementation of the falsification regulations in 14 CFR parts 21 and 43, the FAA made the following amendments. In 1982, the FAA amended 14 CFR 43.12(a)(1) to include intentionally false entries. 47 FR 41085 (Sept. 16, 1982). In 2009, the FAA amended 14 CFR PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 21.2(a)(1)–(2) by proscribing misleading statements. 74 FR 53368 (Oct. 16, 2009). The 2009 amendments to 14 CFR 21.2 included denying issuance of any certificate or approval under part 21 as a sanction for falsification. 74 FR 53368 (Oct. 16, 2009). E:\FR\FM\08FEP1.SGM 08FEP1 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules 8565 lotter on DSK11XQN23PROD with PROPOSALS1 TABLE 1—HISTORY OF FAA FALSIFICATION REGULATIONS—Continued Year Part(s)/section(s) 1978 ........ 43.12 .............................. Fraudulent entries and fraudulent reproductions and alterations involving records or documents associated with part 43. 1992 ........ 21.2 ................................ 1996 ........ 142.11(e)(3) .................... 2004 ........ 120.103(e) and 120.213 (formerly 121 app. I and J). 2006 ........ 60.33 .............................. Fraudulent or intentionally false statements, fraudulent reproductions, and alterations involving documents associated with part 21. Incomplete, inaccurate, fraudulent, or false information associated with training center certificates. Fraudulent or intentionally false statements or entries and fraudulent reproduction or alteration involving records and documents associated with part 120. Fraudulent or intentionally false statements, known omissions, fraudulent reproduction or alteration, and incorrect statements or entries upon which the FAA relied or could have relied involving records or documents associated with part 60. 2007 ........ 413.17(c) ........................ 2013 ........ 121.9 .............................. 2013 ........ 139.115 .......................... Fraudulent or intentionally false statements or entries and fraudulent reproduction or alteration involving records or documents associated with part 139. 2014 ........ 145.12 ............................ Fraudulent or intentionally false entries, fraudulent reproduction or alteration, and omissions of a material fact involving records or documents associated with part 145. 2016 ........ 107.5 .............................. Fraudulent or intentionally false records or reports and fraudulent reproduction or alteration involving records or documents associated with part 107. 2021 ........ 89.5 ................................ Fraudulent or intentionally false statements, fraudulent reproduction or alteration, and knowingly concealing or causing to be concealed a material fact involving records or documents associated with part 89. VerDate Sep<11>2014 17:04 Feb 07, 2024 Prohibited conduct Sanction Willful false statements made relating to applications, licenses, and permits. Fraudulent or intentionally false statements and known omissions involving records and documents under part 121. Jkt 262001 PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 Suspending or revoking the applicable airman, operator, or production certificate, Technical Standard Order Authorization, FAA-Parts Manufacturer Approval, or Product and Process Specification issued by the Administrator and held by that person. Suspending or revoking any certificate or approval issued under part 21 part and held by that person. Denial, suspension, revocation, or termination of a certificate under part 142. None. One or any combination of the following: (1) A civil penalty; (2) Suspension or revocation of any certificate held by that person that was issued under 14 CFR chapter I; (3) The removal of FSTD qualification and approval for use in a training program. An incorrect statement or entry, upon which the FAA relied or could have relied, may serve as the basis for the removal of qualification of an FSTD, including the withdrawal of approval for use of an FSTD or denying an application for a qualification. Administrative sanctions in accordance with part 405 of 14 CFR chapter III. One or any combination of the following: (1) A civil penalty; (2) Suspension or revocation of any certificate held by that person that was issued under 14 CFR chapter I; (3) The denial of an application for any approval under part 121; (4) The removal of any approval under part 121. Suspension or revocation of any certificate or approval issued under part 139 and held by that certificate holder and any other certificate issued under 14 CFR and held by the person committing the act. One or any combination of the following: (1) Suspending or revoking the repair station certificate and any certificate, approval, or authorization issued by the FAA and held by that person; (2) A civil penalty; (3) The denial of an application under part 145. Any of the following: (1) Denial of an application for a remote pilot certificate or a certificate of waiver; (2) Suspension or revocation of any certificate, waiver, or declaration of compliance issued or accepted by the Administrator under part 107 and held by that person; or (3) A civil penalty. (1) Denial, suspension, rescission, or revocation of any acceptance, application, approval, authorization, certificate, declaration, declaration of compliance, designation, document, filing, qualification, means of compliance, record, report, request for reconsideration, or similar instrument issued or granted by the Administrator and held by that person; or (2) A civil penalty. E:\FR\FM\08FEP1.SGM 08FEP1 8566 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules TABLE 1—HISTORY OF FAA FALSIFICATION REGULATIONS—Continued Year Part(s)/section(s) 2021 ........ 111.35 ............................ Prohibited conduct Fraudulent or intentionally false statements and concealing or causing to be concealed a material fact involving records or documents associated with part 111. lotter on DSK11XQN23PROD with PROPOSALS1 D. Summary of the Costs and Benefits Falsification regulations promote aviation and commercial space safety by incentivizing participants in the National Aerospace System to provide accurate and truthful information in safety-related records. Through the proposed rule, the FAA intends to enhance aviation safety by standardizing the scope of conduct that the FAA intends to deter, proscribed by falsification regulations, across the applicable sections of 14 CFR parts 1 through 199 and 14 CFR parts 413 through 460 and extending this scope of conduct to parts that currently do not have—but should have—falsification provisions. The proposed rule also intends to standardize sanction provisions for this conduct and allow for more consistent sanction determinations as appropriate. The FAA has evaluated the cost impacts to the stakeholders involved in this proposed rulemaking and does not anticipate any new cost impact to the industry or the FAA as a result of this proposed rule. The FAA has also determined that this proposed rule is not a ‘‘significant regulatory action’’ as defined in section 3(f) of Executive Order 12866 and is not ‘‘significant’’ as defined in DOT’s Regulatory Policies and Procedures. II. Authority for This Rulemaking The FAA’s authority to issue rules on 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. With respect to 14 CFR chapter I, this rulemaking is issued under 49 U.S.C. 44701(a)(5), which establishes the authority of the Administrator to prescribe regulations and minimum standards for other practices, methods, and procedures the Administrator finds necessary for safety in air commerce and national security. It is also issued under 49 U.S.C. 44702–44709, which prescribe the FAA’s authority to issue different types of certificates to various individuals and entities and to amend, modify, suspend, or revoke those certificates as appropriate. This NPRM is within the scope of these sections because it would establish new VerDate Sep<11>2014 17:04 Feb 07, 2024 Sanction Jkt 262001 None. falsification regulations that consolidate all existing falsification regulations into a general rule that standardizes the existing falsification regulations and ensures that falsification-related conduct that is not, but should be, addressed by current regulations is covered under the general rule. This NPRM also falls within the scope of 49 U.S.C. 46301 since this section authorizes the assessment of civil penalties for noncompliance with the general falsification provision. With respect to 14 CFR chapter III, this rulemaking is issued under the authority described in the Commercial Space Launch Act of 1984, as amended and recodified at 51 U.S.C. 50901– 50923 (the Act). The Act authorizes DOT to oversee, investigate, license, and regulate commercial launch and reentry activities and the operation of launch and reentry sites as carried out by U.S. citizens or within the United States. See 51 U.S.C. 50904, 50905. The Act directs the DOT to exercise this responsibility consistent with public health and safety, safety of property, and the national security and foreign policy interests of the United States. See 51 U.S.C. 50901. This authority has been delegated to the FAA’s Associate Administrator for Commercial Space Transportation. See 14 CFR 401.3. The proposed regulations fall within the scope of 51 U.S.C. 50901–50923 because they would establish comprehensive falsification proscriptions that currently do not exist in 14 CFR chapter III. They would promote the integrity of the information that the FAA relies on and would serve as a basis for regulatory action as appropriate, which is essential to the FAA’s statutory responsibility to promote continuous improvement of commercial space activities and ensure that such activities are consistent with public health and safety, safety of property, and national security and foreign policy interests. The proposed rulemaking is within the scope of 51 U.S.C. 50908, since this section authorizes the FAA, under delegated authority from the Secretary of Transportation, to modify, suspend, or revoke a license issued or transferred under 51 U.S.C. Subtitle V, chapter 509. It is within the scope of 51 U.S.C. 50917 PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 since it authorizes the FAA, under delegated authority from the Secretary of Transportation, to assess a civil penalty for a violation of chapter 509, a regulation prescribed under chapter 509, or any term of a license issued or transferred under chapter 509. III. Discussion of the Proposal The FAA proposes to amend and reorganize the current falsification regulations to create uniform and comprehensive falsification regulations for the applicable parts of 14 CFR chapter I and across 14 CFR chapter III, subchapter C. This proposed rulemaking would standardize the proscribed conduct and expand the proscription to the pertinent parts of 14 CFR chapters I and III as appropriate. It would also standardize sanction provisions. A. Applicability of the Proposed Rulemaking to 14 CFR Chapter I The proposed rulemaking would address the lack of standardization in current falsification regulations across the applicable parts of 14 CFR chapter I. In addition, the proposed rule would ensure that the falsification prohibition applies to the particular parts of 14 CFR chapter I that should have such a prohibition but currently do not. Under proposed § 3.401, the proposed rule would apply to any person subject to the requirements in 14 CFR chapter I, subchapter A (except parts 1 and 3), subchapter C (except part 39), subchapter D, subchapter E (except parts 71 and 73), subchapter F (except parts 95 and 97), subchapter G (except part 110), subchapter H, and part 183 of subchapter K. 1. Application of Proposed Rule to 14 CFR Chapter I, Subchapter A (Except Parts 1 and 3) Subchapter A consists of 14 CFR parts 1, 3, and 5. The proposed rule would apply to 14 CFR part 5, which contains recordkeeping requirements regarding Safety Management Systems (SMS) that may be subject to falsification.31 The proposed rule would not apply to 14 CFR parts 1 and 3. Part 1 contains definitions and abbreviations. Part 3 31 See 14 CFR part 5, subpart F (‘‘SMS Documentation and Recordkeeping’’), 14 CFR 5.95 and 5.97. E:\FR\FM\08FEP1.SGM 08FEP1 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules currently consists of subparts A and B. Subpart A contains an independent falsification regulation governing statements about products, parts, and appliances, and materials that may be used on a type-certificated product and would remain unaffected by the proposed rule.32 Subpart B prescribes security threat disqualification by the FAA following receipt of a notification from the Transportation Security Administration.33 The proposed rule would be located in a new subpart D of part 3. 2. Applicability of Proposed Rule to 14 CFR, Chapter I, Subchapter C (Except Part 39) Subchapter C consists of 14 CFR parts 21, 23, 25, 26, 27, 29, 31, 33, 34, 35, 36, 39, 43, 45, 47, 48, and 49. Existing falsification regulations are in 14 CFR 21.2 and 43.12. The proposed rulemaking would remove those sections and apply the proposed rule to parts 21 and 43. The proposed rule would also apply to 14 CFR parts 23, 25, 26, 27, 29, 31, 33, 34, 35, 36 (i.e., ‘‘airworthiness requirements’’) and 14 CFR parts 45, 47, 48, and 49 (i.e., ‘‘registration requirements’’). Section 21.2 addresses falsification of information submitted under part 21 and the airworthiness requirements. A person seeking a certificate or approval, or a change thereto, under part 21 must first show compliance with the airworthiness requirements, as applicable.34 The person shows such compliance by, among other things, submitting documentation relating to airworthiness requirements to the FAA. The FAA reviews the documentation and determines whether the person has met the applicable standards before issuing or amending a certificate or approval under part 21. Consequently, if a person falsifies a document and submits it to the FAA to show lotter on DSK11XQN23PROD with PROPOSALS1 32 See 14 CFR 3.5 (prohibiting falsification regarding products, parts, and appliances). 33 14 CFR 3.200 and 3.205. 34 Under 14 CFR part 21, the FAA issues and changes design approvals, production approvals, airworthiness certificates, and airworthiness approvals. 14 CFR 21.1(a)(1). Under 14 CFR 21.1(b)(4), a design approval ‘‘means a type certificate . . . or the approved design under a PMA, TSO authorization, letter of TSO design approval, or other approved design . . . .’’ The ‘‘Airworthiness Standards’’ (i.e., 14 CFR parts 23– 36) with the exception of part 34, (1) prescribe airworthiness standards for the issue of type certificates and changes to certificates and (2) require each person who applies under part 21 for such a certificate or change to show compliance with the applicable requirements of those parts. See 14 CFR 23.2000(a), 25.1(a)–(b), 26.1(a)–(b), 27.1(a)– (b), 29.1(a) and (g), 31.1(a)–(b), 33.1(a)–(b), 35.1(a)– (b), and 36.1(a)–(c). Part 34 sets forth fuel venting and exhaust emission requirements for turbine powered airplanes. VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 compliance with the airworthiness requirements in the process of seeking a certificate, approval, or change under 14 CFR part 21, the FAA addresses the falsification under 14 CFR 21.2. Under the proposed rulemaking, the falsification prohibition in subpart D of part 3 would apply directly to the airworthiness requirements in addition to 14 CFR part 21. The proposed rule would also apply to the registration requirements in 14 CFR parts 45, 47, 48, and 49. Parts 45, 47, 48, and 49 contain record requirements that may be subject to falsification. Due to the absence of a falsification regulation in part 47, the FAA has lacked a direct approach to addressing registration falsifications under that part. Hence, the proposed rulemaking would appropriately apply to parts 45, 47, 48, and 49. The proposed rule would not apply to 14 CFR part 39 since it provides a legal framework for the FAA’s system of airworthiness directives. It does not contain requirements that are subject to falsification. 3. Applicability of Proposed Rule to 14 CFR, Chapter I, Subchapter D Subchapter D (‘‘Airmen’’) consists of 14 CFR parts 60, 61, 63, 65, 67, and 68. Existing falsification regulations are in 14 CFR 60.33, 61.59, 63.20, 65.20, and 67.403. The proposed rulemaking would remove those sections and apply to parts 60, 61, 63, 65, and 67. The proposed rule would also apply to part 68, which does not have an existing falsification regulation.35 Part 68 requires an individual to make representations, provide them to the FAA, and retain required documents in their logbook. Since these record requirements could be subject to falsification, the proposed rule would apply to part 68. 4. Applicability of Proposed Rule to 14 CFR, Chapter I, Subchapter E (Except Parts 71 and 73) Subchapter E (‘‘Airspace’’) consists of 14 CFR parts 71, 73, and 77, none of which contain existing falsification regulations. The proposed rulemaking would apply only to part 77 since that part requires an individual to submit 35 Part 68 requires an individual to complete a medical education course (§ 68.3) and a comprehensive medical evaluation (14 CFR 68.5), which includes a comprehensive medical examination checklist (CMEC). The individual makes required representations on the medical education course information (§§ 68.3(b)(1), (3)–(5)), which is submitted to the FAA (§ 68.3(b)) and the CMEC (§ 68.7(a)(2)). Both the medical education course completion certificate and the CMEC must be kept in the individual’s logbook. (§ 68.3(b)(1) and 61.113(i)(3)). PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 8567 documentation to the FAA that could be subject to falsification.36 In contrast, parts 71 and 73 consist of FAA designations of airspace. Those parts are not subject to falsification. 5. Applicability of Proposed Rule to 14 CFR Chapter I, Subchapter F (Except Parts 95 and 97) Subchapter F (‘‘Air Traffic and General Operating Rules’’) consists of 14 CFR parts 89, 91, 93, 95, 97, 99, 101, 103, 105, and 107. Existing falsification regulations are in 14 CFR 89.5 and 107.5. The proposed rulemaking would remove these sections and apply the proposed rule to parts 89 and 107. The proposed rule would also apply to 14 CFR parts 91, 93, 99, 101, 103, and 105. These parts contain requirements for applying for certificates, waivers, and other issuances or grants or for keeping or making records.37 Since these documentary requirements are subject to falsification, the proposed rule would apply. The proposed rule would not apply to 14 CFR parts 95 and 97 since 36 Part 77 establishes, among other things, ‘‘the requirements to provide notice to the FAA of certain proposed construction, or the alteration of existing structures’’ and ‘‘[t]he process to petition the FAA for discretionary review of determinations, revisions, and extensions of determinations.’’ 14 CFR 77.1(a) and (d). Sections 77.7, 77.9, and 77.11 describe the contents of such notices provided to the FAA. Following submission of the notice(s), ‘‘[t]he FAA will make a determination stating whether the proposed construction or alteration would be a hazard to air navigation, and will advise all known interested persons.’’ 14 CFR 77.31(a). 37 The following are examples of such requirements. Part 91—Subpart K of part 91 contains requirements for submitting an application for management specifications (14 CFR 91.1014) and for recordkeeping (14 CFR 91.1027). See also, 14 CFR 91.903(b) (application for a certificate of waiver) and 91.871 (waivers from interim compliance requirements). Part 93—Section 93.325 requires that ‘‘[e]ach certificate holder must submit in writing, within 30 days of the end of each calendar quarter, the total number of commercial [Special Flight Rules Area] SFRA [Washington, DC Metropolitan Area Special Flight Rules Area] operations conducted for that quarter.’’ Section 93.323 requires a certificate holder to file a visual flight rules flight plan before conducting a commercial SFRA operations. Part 99—Section 99.9(b)(1) provides that, ‘‘[n]o person may operate an aircraft into, within, or whose departure point is within an ADIZ unless— (1) The person files a DVFR flight plan containing the time and point of ADIZ penetration . . . .’’ Part 101—Part 101 specifies the required contents of a notification to the FAA by a person who intends to operate an unshielded moored balloon or kite (14 CFR 101.15) or an unmanned free balloon (14 CFR 101.37). Part 103—Section 103.3(b) requires the pilot or operator of an ultralight vehicle to, upon request of the Administrator, furnish satisfactory evidence that the vehicle is subject only to the provisions of part 103. Part 105—Section 105.15(a) requires a person requesting an authorization to conduct a parachute operation over or into a congested area to submit a notification consisting of particular information. E:\FR\FM\08FEP1.SGM 08FEP1 8568 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules they consist of FAA airspace and procedure designations. They do not contain documentation requirements subject to falsification. 6. Applicability of Proposed Rule to 14 CFR Chapter I, Subchapter G (Except Part 110) Subchapter G (‘‘Air Carriers and Operators for Compensation or Hire: Certification and Operations’’) consists of 14 CFR parts 110, 111, 117, 119, 120, 121, 125, 129, 133, 135, 136, 137, and 139. Existing falsification regulations are contained in 14 CFR 111.35, 120.103(e), 120.213, 121.9, and 139.115. The proposed action would remove those sections and apply the proposed rule to parts 111, 120, 121, and 139. The proposed rule would also apply to 14 CFR parts 117, 119, 125, 129, 133, 135, 136, and 137, none of which contain an existing falsification regulation. Part 117 contains reporting requirements that may be subject to falsification, prompting the necessity for the application of the proposed rulemaking.38 Although parts 119, 121, 125, 129, 133, 135, 136, and 137 require documents that are subject to falsification, only part 121 contains a falsification regulation. Accordingly, the proposed rulemaking would apply to those sections. The proposed action would not apply to 14 CFR part 110, as this part provides definitions only. lotter on DSK11XQN23PROD with PROPOSALS1 7. Applicability of Proposed Rule to 14 CFR Chapter I, Subchapter H Subchapter H (‘‘Schools and Other Certificated Agencies’’) consists of 14 CFR parts 141, 142, 145, and 147. Existing falsification regulations are in 14 CFR 142.11(e) and 145.12. The proposed action would remove those sections and apply the proposed rule to parts 142 and 145. The proposed rule would also apply to parts 141 and 147 since these parts have documentation requirements that may be subject to falsification. Part 142 contains operation and certification requirements and a falsification regulation, yet parts 141 and 147 do not proscribe falsification despite containing analogous operation and certification requirements in the context of aviation training. 8. Applicability of Proposed Rule to 14 CFR Chapter I, Subchapter K, Part 183 Subchapter K (‘‘Administrative Regulations’’) consists of 14 CFR parts 183, 185, 187, 189, and 193. Subchapter K contains no existing falsification regulations. The proposed rulemaking 38 See 14 CFR 117.11(c) (‘‘Each certificate holder must report to the administrator within 10 days any flight time that exceeded the maximum flight time limits permitted by this section or § 117.23(b).’’) VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 would apply solely to 14 CFR part 183 as parts 185, 187, 189, and 193 do not contain provisions subject to falsification.39 Generally, intentional falsification by a delegee under part 183 would likely result in the FAA rescinding the delegation under 49 U.S.C. 44702(d)(2).40 Under the proposed rule, the FAA would have the option of initiating an action against a delegee for intentional falsification, and it would be ‘‘a basis for . . . rescinding . . . any . . . designation.’’ 41 9. Other Subchapters of 14 CFR Chapter I to Which the Proposed Rule Would Not Apply The proposed rulemaking would not apply to 14 CFR chapter I, subchapters B (‘‘Procedural Rules’’); I (‘‘Airports’’); J (‘‘Navigational Facilities’’); and N (‘‘War Risk Insurance’’). The application of the proposed rule to these subchapters would constitute an unnecessary or unwarranted expansion of the falsification prohibition at this time. B. Applicability of the Proposed Rulemaking to 14 CFR Chapter III The proposed rulemaking would address the lack of comprehensive falsification regulations across the applicable parts of 14 CFR chapter III by creating a new part 402, entitled ‘‘General Requirements and Falsification Prohibitions.’’ The proposed rule in part 402 would parallel the proposed rule in part 3, subpart D. It would apply to any person subject to the requirements in subchapter C of 14 CFR chapter III. Subchapter C (‘‘Licensing’’) consists of 14 CFR parts 413, 414, 415, 417, 420, 431, 433, 435, 437, 440, 450, and 460. Subchapter C currently has one falsification regulation in subchapter C, which is located at 14 CFR 413.17(c) (‘‘Continuing Accuracy of Application; Supplemental Information; Amendment’’). The proposed rulemaking would remove that 39 Part 183 ‘‘describes the requirements for designating private persons to act as representatives of the Administrator in examining, inspecting, and testing persons and aircraft for the purpose of issuing airman, operating, and aircraft certificates. In addition, this part states the privileges of those representatives and prescribes rules for the exercising of those privileges, as follows: (a) An individual may be designated as a representative of the Administrator under subparts B or C of this part. (b) An organization may be designated as a representative of the Administrator by obtaining an Organization Designation Authorization under subpart D of this part.’’ 14 CFR 183.1(a)–(b). 40 See 49 U.S.C. 44702(d)(2) (authorizing the FAA to ‘‘rescind a delegation under this subsection at any time for any reason the Administrator considers appropriate.’’). 41 Sections 3.403(d)(1) and 3.405(b) of the proposed rule. PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 subparagraph and would apply the proposed rule in new part 402 to all parts of subchapter C. Subchapter C contains myriad requirements and procedures in connection with licenses, approvals, permits, and recordkeeping, and for demonstrating financial responsibility. The requirements involve submission of information to the FAA that could be subject to falsification.42 C. ‘‘Statements’’ in Proposed §§ 3.403(a), 3.405(a), 402.3(a), and 402.5(a) Proposed §§ 3.403(a), 3.405(a), 402.3(a), and 402.5(a) apply to ‘‘statements.’’ Over the years, the falsification regulations have proscribed false statements and entries.43 Regardless of whether one characterizes a particular representation as a ‘‘statement’’ or ‘‘entry,’’ when it is intentionally false or fraudulent, it is subject to the falsification proscription. The elimination of the word ‘‘entry’’ is intended to simplify the proposed rulemaking and is not intended to make a substantive change. The term ‘‘statement’’ references any information a person provides in a document. Accordingly, proposed §§ 3.403(a) and 402.3(a) would provide that ‘‘[n]o person may make or cause to be made any fraudulent or intentionally false statement’’ in any of the documents described in proposed §§ 3.403(a)(1)–(2) and 402.3(a)(1)–(2). Sections 3.405(a) and 402.5(a) would provide that ‘‘[n]o person may make or cause to be made a material incorrect statement’’ in any of the documents described in §§ 3.405(a)(1)–(2) and 402.5(a)(1)–(2). D. Categories of ‘‘Any Document in Any Format’’ in Proposed §§ 3.403 and 3.405—14 CFR Chapter I The proposed rulemaking in relation to 14 CFR chapter I applies to ‘‘any document in any format.’’ Documents ‘‘in any format’’ include hard copy or other tangible format (like a data plate, stamped marks on parts, and bar codes) 42 See requirements in 14 CFR 413.7 (an application for a license); 414.13 (an application for a safety approval); 415.13 (transfer of a launch license); 417.15 and 420.61 (maintaining all records necessary to verify that the operator conducts its operations in accordance with representations contained in its application); 431.25 (an application for a policy review); 433.3 (issuance of a license to operate a reentry site); 435.5 (obtaining policy and safety approvals concerning reentry of a reentry vehicle other than a reusable launch vehicle); 437.21 (obtaining an Experimental Permit); 440.15 (submitting to the FAA evidence of financial responsibility and compliance with allocation of risk requirements under part 440); 450.31 (obtaining a vehicle operator license); and 460.7 (maintaining records of crew training). 43 See note 1, supra. E:\FR\FM\08FEP1.SGM 08FEP1 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules or electronic. The proposed rulemaking in relation to 14 CFR chapter I applies to two categories of documents. Proposed §§ 3.403(a)(1), 3.403(b)(1), 3.403(c)(1), and 3.405(a)(1) would consist of ‘‘[a]ny document in any format submitted under any provision referenced in § 3.401 of [proposed subpart D of part 3], consisting of or related to any acceptance, application, approval, authorization, certificate, rating, declaration, designation, 8569 qualification, record, report, request for reconsideration, or similar.’’ (‘‘Category 1’’). Table 2 contains examples of documents in Category 1. TABLE 2—EXAMPLES OF CATEGORY 1 DOCUMENTS—14 CFR CHAPTER I 14 CFR chapter I—documents—proposed §§ 3.403(a)(1), 3.403(b)(1), 3.403(c)(1), and 3.405(a)(1) Category 1 Examples Acceptance ........................... Application ............................ Acceptance of aircraft engines and propellers (§ 21.500); Acceptance of Articles (§ 21.502). See generally, parts 61 (e.g., application for pilot certificate), 67 (e.g., application for a medical certificate), 119 (e.g., application for an Air Carrier Certificate or Operating Certificate). Parts Manufacturer Approval (PMA) (Part 21, subpart K); Fatigue risk management system (§ 117.7); 121.141 Airplane Flight Manual (§ 121.141), Approval procedures of training courses (§ 141.13); SMS Implementation Plan, § 5.1. Authorization for Special Issuance of a Medical Certificate (§ 67.401); Letter of Authorization (e.g., part 91); Inspector Authorization (§ 65.95). See generally, parts 61 (e.g., private, commercial airline transport pilot certificates), 63 (e.g., flight engineer certificate), 67 (e.g., medical certificate),145 (e.g., repair station certificate). Instrument rating (§ 61.65). Declaration of compliance (§ 89.535). Kinds of Designations (part 183, subpart C). Flight Simulator Training Device qualification (§ 60.4). Maintenance records (e.g., part 43); Pilot School Training Records (§ 141.101); Voting Trust Agreement and Affidavit (§ 47.8). Safety analysis (§ 33.75); Comprehensive Medical Examination Checklist (§ 68.7). Request for reconsideration (§§ 67.407(c) and 67.409(a)). Operations specifications (part 119); Product and Process specifications; Program Registrations (part 120); Waivers (e.g., part 107); Exemptions (e.g., part 139); Special Flight Permits (§ 21.197); Graduation Certificate (§ 141.95). Approval ............................... Authorization ........................ Certificate ............................. Rating ................................... Declaration ........................... Designation .......................... Qualification .......................... Record .................................. Report ................................... Request for reconsideration Or similar .............................. Proposed §§ 3.403(a)(2), 3.403(b)(2), 3.403(c)(2), and 3.405(a)(2) would consist of, ‘‘[a]ny document in any format that is kept, made, or used to show compliance with any requirement under the provisions referenced in § 3.401 of this subpart’’ (‘‘Category 2’’). lotter on DSK11XQN23PROD with PROPOSALS1 1. Scope of Category 1 in Proposed §§ 3.403(a)(1), 3.403(b)(1), 3.403(c)(1), and 3.405(a)(1) The Category 1 documents in proposed §§ 3.403(a)(1), 3.403(b)(1), 3.403(c)(1), and 3.405(a)(1) may consist of an application, declaration, record, report, request for reconsideration, or similar, that a person submits to the FAA or a designee. The Category 1 documents that a person submits to the FAA or a designee may also be related to an acceptance, approval, authorization, certificate, rating, designation, qualification, or similar. For example, the FAA may request an airman seeking a medical certificate under part 67 to submit additional medical records related to qualification requirements under § 67.413. The ‘‘related to’’ language in the proposed rule would cover falsifications of the additional medical records. In either case, the intent of the proposed rule is to ensure that information the FAA is authorized to receive under statute and VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 regulation in connection with the listed items is covered. 2. Scope of Category 2 in Proposed Sections 3.403(a)(2), 3.403(b)(2), 3.403(c)(2), and 3.405(a)(2) The Category 2 documents in proposed §§ 3.403(a)(2), 3.403(b)(2), 3.403(c)(2), and 3.405(a)(2) are consistent with the familiar prescription, ‘‘made, kept, or used, to show compliance with any requirement,’’ that is nearly ubiquitous in the falsification regulations.44 Category 2 documents may include, for example, pilot logbook records and aircraft maintenance records. Such records are kept, made, or used to show compliance with applicable regulatory requirements. In contrast to Category 1 documents, Category 2 documents are not necessarily submitted to the FAA. Proposed §§ 3.403(a)(2), 3.403(b)(2), 3.403(c)(2), and 3.405(a)(2) would not include the words ‘‘developed’’ or ‘‘provided,’’ which is terminology used in 14 CFR 89.5(a)(2) and (b)(2). These terms are redundant of the terms ‘‘made, 44 See 14 CFR 21.2(a)(2), 43.12(a)(1), 60.33(a)(2), 61.59(a)(2), 63.20(a)(2), 65.20(a)(2), 67.403(a)(2); 107.5(a)(1); 139.115(a)(2), 145.12(a)(1)(i); see also, 14 CFR 89.5(a)(2)(‘‘developed, provided, kept, or used’’); 111.35(c), 120.103(e)(2), 120.213(b) (‘‘kept, made, or used), and 121.9(a)(2) (‘‘kept, made, or used’’). PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 kept, or used’’ in the proposed rulemaking. Their removal is not intended to narrow the scope of documents subject to the proposed rulemaking. Consistent with many existing falsification regulations, Category 2 would not condition the applicability of the falsification prohibition on a requirement that the ‘‘document in any format’’ be kept, made, or used to show compliance. This approach reflects the FAA’s position in the 2014 amendments to part 145. In that rule, the FAA eliminated the phrase ‘‘required to be’’ with regard to any record or report made, kept, or used to show compliance. The FAA did so ‘‘to forestall an argument a falsifier could make that, although the falsification occurred in a record or report that was made, kept, or used to show compliance, it was not a record or report that was required by a regulation to be made or kept.’’ 45 The NTSB had already rejected that argument in addressing a violation of 14 CFR 43.12,46 noting that 45 79 FR 46980 (Aug. 12, 2014). v. Anderson, NTSB No. EA–4564, 1997 WL 355350 at *2 (June 26, 1997) (agreeing with the FAA’s ‘‘clearly reasonable position that the regulation reaches falsifications in any maintenance documents actually kept or used to show compliance with a requirement in part 43, whether or not they are records in a form or format the 46 Adm’r E:\FR\FM\08FEP1.SGM Continued 08FEP1 8570 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules the phrase should not be restricted to mean ‘‘required’’ by the FAA Administrator because the term can also be broadly construed to mean required by the circumstances for which compliance is sought or necessary.47 The elimination of the phrase ‘‘required to be’’ is consistent with the falsification regulations that do not contain that phrase.48 E. Categories of ‘‘Any Document In Any Format’’ in Proposed §§ 402.3 and 402.5—14 CFR Chapter III The proposed rulemaking in relation to 14 CFR chapter III, applies to two categories of ‘‘any document in any format,’’ as that terminology is defined in Section C. Proposed §§ 402.3(a)(1), 402.3(b)(1), 402.3(c)(1), and 402.5(a)(1) would consist of ‘‘[a]ny document in any format submitted under any provision referenced in § 402.1 of [part 402], consisting of or related to any acceptance, application, approval, authorization, permit, license, waiver, record, report, or similar,’’ (‘‘Category 1’’). Table 4 contains examples of documents in Category 1. TABLE 3—EXAMPLES OF CATEGORY 1 DOCUMENTS—14 CFR CHAPTER III 14 CFR Chapter I—Documents—Proposed §§ 402.3(a)(1), 402.3(b)(1), 402.3(c)(1), and 402.5(a)(1) Category 1 Examples Acceptance ........................... Application ............................ Approval ............................... Authorization ........................ Acceptance of an application (§ 413.11); Acceptance of a means of compliance (§ 450.35). Application submission (§ 413.7). Safety Element Approval (part 414); Policy Approval (§ 450.41). Certificate of Waiver or Authorization (§ 437.71(d)(2)); Authorization to conduct reusable launch vehicle missions (§ 431.3(a)). Experimental Permit (part 437). License Application Procedures (part 413); Launch License (part 415); Launch and Reentry of a Reusable Launch Vehicle (part 431); License to Operate a Reentry Site (part 433); Reentry of a Reentry Vehicle Other Than A Reusable Launch Vehicle (part 435); License to Operate a Launch Site (part 420); Launch and Reentry License Requirements (part 450). Filing a petition for waiver (14 CFR 404.5). Records under 14 CFR §§ 417.15, 431.77, 437.87, and 450.219. Reusable launch vehicle mission reporting requirements (§ 431.79); Anomaly reporting (§ 437.73); Mishap plan-reporting, response, and investigation requirements (§ 450.173); Pre-flight reporting (§ 450.213); Post-flight reporting (§ 450.215). Demonstration of Financial Responsibility and Compliance with Allocation of Risk Requirements Under part 440; Payload Determination (part 415); Demonstration of Compliance (§ 440.15). Permit ................................... License ................................. Waiver .................................. Record .................................. Report ................................... Or similar .............................. Proposed §§ 402.3(a)(2), 402.3(b)(2), 402.3(c)(2), and 402.5(a)(2) would consist of, ‘‘[a]ny document in any format that is kept, made, or used to show compliance with any requirement under the provisions referenced in § 402.1 of [part 402]’’ (‘‘Category 2’’). lotter on DSK11XQN23PROD with PROPOSALS1 1. Scope of Category 1 in Proposed Sections 402.3(a)(1), 402.3(b)(1), 402.3(c)(1), and 402.5(a)(1) Category 1 documents in proposed §§ 402.3(a)(1), 402.3(b)(1), 402.3(c)(1), and 402.5(a)(1) consist of the listed items (i.e., ‘‘acceptance, application . . .’’) or documents that are related to them. Listed items in these sections are specific to 14 CFR chapter III, subchapter C, and necessarily vary from the listed items in the proposed rulemaking as it applies to 14 CFR chapter I since these items are in the context of commercial space. 2. Scope of Category 2 in Proposed §§ 402.3(a)(2), 402.3(b)(2), 402.3(c)(2), and 402.5(a)(2) Category 2 documents in proposed §§ 402.3(a)(2), 402.3(b)(2), 402.3(c)(2), Administrator specifically requires an individual to use or keep for that purpose’’). 47 Anderson, NTSB No. EA–4564 at *3. 48 See 14 CFR 21.2(a)(2), 60.33(a)(2), 67.403(a)(2), 111.35(c), 120.103(e)(2), 120.213(b), 121.9(a)(2), 145.12(a)(1)(i) and (b)(2). VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 and 402.5(a)(2) are modeled upon, and consistent with, the terminology in Category 2 in the proposed rule as it applies to 14 CFR chapter I, albeit applicable to commercial space. F. Fraudulent or Intentionally False Statements or Entries in Proposed §§ 3.403(a) and 402.3(a) Proposed §§ 3.403(a) and 402.3(a) would prohibit fraudulent or intentionally false statements in the Category 1 and 2 documents described in Sections D and E of the ‘‘Discussion of the Proposal’’ section of this NPRM. Both fraud and intentional falsification have clear and long-standing definitions established in precedent. The elements of fraud and intentional falsification are defined in Section I. B. ‘‘Background’’ of this NPRM. The FAA would not deviate from these established definitions of fraud and intentional falsification in the proposed rule. 49 Such prohibitions are found at 14 CFR 21.2(a)(3)–(4), 43.12(a)(2)–(3), 60.33(a)(3), 61.59(a)(3)–(4), 63.20(a)(3)–(4), 65.20(a)(3)–(4), 67.403(a)(3)–(4), 89.5(a)(3), 107.5(a)(2), 120.103(e)(3), 121.9(a)(2), 139.115(a)(3)–(4), and 145.12(a)(2)–(3). A ‘‘fraudulent purpose’’ consists of PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 G. Production, Reproduction, Alteration, for Fraudulent Purpose in Proposed §§ 3.403(b) and 402.3(b) Proposed §§ 3.403(b) and 402.3(b) prohibit any production, reproduction, or alteration for a fraudulent purpose of the Category 1 and 2 documents described in Sections D and E of the ‘‘Discussion of the Proposal’’ section of this NPRM. Reproductions for a fraudulent purpose and alterations, including alterations for a fraudulent purpose, are proscribed in various falsification regulations.49 While some of these regulations prohibit any alteration of the applicable document (i.e., 14 CFR 21.2(a)(4), 61.59(a)(4), 65.20(a)(4), and 67.403(a)(4)), others prohibit only fraudulent alterations of the applicable document (i.e., 14 CFR 43.12(a)(3), 60.33(a)(3), 107.5(a)(2), and 145.12(a)(3)). Proposed §§ 3.403(b) and 402.3(b) would standardize this prohibition to those reproductions and alterations that are for a fraudulent purpose. These proposed sections would also prohibit a ‘‘production’’ for a fraudulent purpose the three elements of an intentional false statement plus an intent to deceive. See Adm’r v. Coomber, NTSB Order No. EA–4283 (1994). It does not require action taken in reliance. See id. E:\FR\FM\08FEP1.SGM 08FEP1 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules lotter on DSK11XQN23PROD with PROPOSALS1 of the Category 1 or 2 documents. This provision is meant to capture those instances where an individual or entity creates a document, such as a certificate or authorization, rather than altering an authentic existing document. In that case, the false document would be neither a reproduction nor an alteration. In the context of 14 CFR chapter I, this provision would apply, for example, to persons that create a certificate (e.g., an airman certificate or an airworthiness certificate) for a fraudulent purpose. H. Knowingly Omitting or Causing To Be Omitted a Material Fact Under Proposed §§ 3.403(c) and 402.3(c) Proposed §§ 3.403(c) and 402.3(c) would prohibit a person from knowingly omitting, or causing to be omitted, a material fact in the Category 1 or 2 documents described in Sections D and E under the ‘‘Discussion of the Proposal’’ in this NPRM. These proposed sections would correct inconsistencies in the ‘‘omission’’ prohibitions in the falsification regulations. The falsification regulations that address omissions do so inconsistently by prohibiting (1) ‘‘knowingly concealing or causing to be concealed, by omission, a material fact’’ (14 CFR 89.5(b)(1)–(2) and 145.12(b)(1)–(2)); (2) ‘‘concealing or causing to be concealed a material fact’’ (14 CFR 111.35(a)–(c)); and (3) ‘‘known omissions’’ (14 CFR 60.33(a)(2) and 121.9(a)(2)). The ‘‘concealment’’ terminology is unnecessary. When the FAA amended 14 CFR part 145 in 2014, it explained that a knowing concealment of a material fact is triggered when a person knew that they failed to include the material fact in the document at issue.50 Whether a person knowingly conceals a material fact by an omission or knowingly omits a material fact, the result is the same: the person knew that they omitted a material fact.51 The ‘‘known omission’’ prohibition in 14 CFR 60.33 and 121.9 lacks a materiality element. Regarding § 60.33, the FAA previously stated that it had ‘‘added the word ‘material’ to the phrase ‘known omission’ to clarify that only important, known omissions (i.e., from a statement or writing) would constitute a violation’’ on par with a fraudulent or intentionally false statement or entry.52 A knowing omission of a material fact can have a detrimental impact on aviation and public safety to the same degree as an 50 See 79 FR 46971 (Aug. 12, 2014). id. 52 See 71 FR 63422 (Oct. 30, 2006). Although the FAA stated that it was adding ‘‘material’’ to ‘‘known omissions,’’ it appears that this change was never incorporated into the regulatory text. 51 See VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 affirmative falsification. Accordingly, the FAA would incorporate this prohibition into the proposed rulemaking for 14 CFR chapter I and chapter III. I. Sanction Under Proposed §§ 3.403(d) and 402.3(d) for Conduct Described in Sections F, G, and H of This NPRM Proposed §§ 3.403(d) and 402.3(d) would contain the sanction provision respectively applicable to violations of proposed §§ 3.403(a)–(c) and 402.3(a)– (c). It would provide for two categories of sanction: (1) FAA actions (i.e., denial, suspension, modification, revocation, recension, removal, or withdrawal) involving any issuance or grant by the Administrator under 14 CFR chapter I or III; or (2) a civil penalty. Consistent with longstanding FAA sanction policy, the termination of an FAA issuance or grant of the type of item referenced in the proposed rule, such as a certificate revocation, remains the appropriate consequence for violating proposed §§ 3.403(a)–(c) and 402.3(a)–(c).53 Such violations seriously impact the integrity of the records on which the FAA’s safety oversight depends. If the reliability of these records is undermined, the FAA’s ability to promote aviation and public safety is compromised. Some of the current falsification regulations limit the scope of sanction to items issued under the part where the falsification regulation is located. For instance, § 21.2(a)(2) limits the suspension or revocation of any certificate or approval issued under part 21. Proposed §§ 3.403(d) and 402.3(d) would generally allow for the extension of those consequences to any issuance or grant by the FAA and held by the falsifier. This is consistent with FAA sanction guidance, which provides that violation of the falsification regulations is an offense that generally warrants the revocation of all certificates held by the certificate holder if allowed by the scope of the regulation.54 This proposal 53 See FAA Order 2150.3C, chap. 9, para. 8. Order 2150.3C, chap. 9, para. 8.a.(2)(i)–(ii), which states: (i) Not only is revocation appropriate for conduct demonstrating a lack of care, judgment, or responsibility, the scope of the certificates affected by the revocation generally includes all certificates held regardless of which certificate (if any) was used at the time of the conduct. * * * * * (ii) For certain violations demonstrating a lack of care, judgment, or responsibility, the scope of certificates affected is dictated by statute or regulation. For example, the scope of certificates affected by making a fraudulent or intentional false statement on an application for an airman medical certificate in violation of 14 CFR 67.403 is broad; this regulation provides a basis to revoke all airman (including medical) and ground instructor 54 See PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 8571 ensures that such consequences are not limited to certificates and extend to any issuance or grant the falsifier holds. Under proposed §§ 3.403(d)(2) and 402.3(d)(2), the proscribed conduct may in certain circumstances warrant imposition of a civil penalty against an individual or entity, either in addition to or in combination with an action against a certificate, license, or other issuance or grant. For example, a civil penalty may be appropriate for uncertificated persons that commit a falsification. The appropriate sanction or combination of sanctions is within the prosecutorial discretion of the FAA in accordance with agency sanction guidance policy in publicly available FAA Order 2150.3C, as amended. J. Incorrect Statements, or Omissions Under Proposed §§ 3.405 and 402.5 Proposed §§ 3.405(a)(1)–(2) and 402.5(a)(1)–(2) would prohibit persons from making or causing to be made a material incorrect statement or omitting or causing to be omitted a material fact, in the Category 1 or 2 documents described in Sections D and E under the ‘‘Discussion of the Proposal’’ in this NPRM. Currently, incorrect statements or entries upon which the FAA relied may serve as a basis for an FAA action under 14 CFR 60.33(c)(1)–(2) (e.g., removal of a qualification) and 67.403(c)(1)–(2) (e.g., revocation of a medical certificate). Proposed §§ 3.405(a)(1)–(2) and 402.5(a)(1)–(2) would prohibit material incorrect statements or entries without prescribing reliance by the FAA. Material incorrect statements or entries, i.e., incorrect statements or entries that are capable of influencing an agency decision, may have an adverse impact on safety under 14 CFR chapters I and III. Proposed §§ 3.405(a)(1)–(2) and 402.5(a)(1)–(2) would provide a basis for appropriate action, as explained in Section K. below, when a person unknowingly provides material incorrect information, whether or not the FAA relied upon it. Proposed §§ 3.405(a)(1)–(2) and 402.5(a)(1)–(2) would also prohibit omissions of material facts from the Category 1 or 2 documents described in Sections D and E under the ‘‘Discussion of the Proposal’’ in this NPRM. Those proposed sections would apply to unknowing omissions of material fact, in contrast to the proscription of knowing omissions of material fact in proposed §§ 3.403(c)(1)–(2) and certificates. Further, an intentional falsification on an application for a certificate issued under 14 CFR part 61 is a basis for revoking any airman certificate, rating, or authorization. E:\FR\FM\08FEP1.SGM 08FEP1 8572 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules 402.3(c)(1)–(2). An unknowing omission of a material fact can have a detrimental impact on aviation and public safety to the same degree as a knowing omission of material fact. Accordingly, the FAA would incorporate this prohibition into the proposed rulemaking for 14 CFR chapter I and chapter III. Proposed § 3.405(a)(1)–(2) would ensure coverage of the scope of prohibited conduct in 14 CFR 142.11(e)(3) that deviated from prior falsification regulations (i.e., ‘‘incomplete,’’ ‘‘inaccurate,’’ or ‘‘false information’’ (and not ‘‘intentionally false information’’)).’’ 55 Proposed § 3.405(a)(1)–(2) would cover (1) ‘‘incomplete’’ information submitted under 14 CFR 142.11(e)(3) as an omission of a material fact (so long as the person unknowingly omitted it), and (2) ‘‘inaccurate’’ and unintentionally ‘‘false’’ information submitted under 14 CFR 142.11(e)(3) as a material incorrect statement or entry.56 Proposed § 3.405(a)(1)–(2) would create consistency by expanding the prohibition to the parts of 14 CFR chapter I that contain falsification regulations but do not currently prohibit such conduct, and to the applicable parts of 14 CFR chapter I generally, which are referenced in proposed § 3.401.57 lotter on DSK11XQN23PROD with PROPOSALS1 K. Sanction Under Proposed §§ 3.405(b) and 402.5(b) for Incorrect Statements, or Omissions Proposed §§ 3.405(b) and 402.5(b) would permit the agency to deny, suspend, modify, revoke, rescind, remove, or withdraw any issuance or grant by the Administrator under 14 CFR chapter I or III for conduct described in Section J of the ‘‘Discussion of the Proposal’’ in this NPRM. The intent behind proposed §§ 3.405(b) and 402.5(b) would not be punitive, but rather remedial and preventive in an effort to cure unintended defects in documents under proposed §§ 3.403, 3.405, 402.3, and 402.5. A material incorrect statement or entry, or omission of a material fact, generally warrants an action against the issuance or grant in response to the document(s) containing an incorrect statement, entry, or omission. For example, generally, the appropriate sanction for an incorrect statement on 55 14 CFR 142.11(e)(3). § 3.403(a)–(c) would cover ‘‘fraudulent’’ or (intentionally) ‘‘false’’ information submitted under 14 CFR 142.11(e)(3). 57 The falsification regulations that prohibit incorrect statements or entries are 14 CFR 60.33(c) and 67.403(c). Those that do not are 14 CFR 21.2, 43.12, 61.59, 63.20, 65.20, 120.103(e), 120.213, 121.9, 139.115, 142.11(e)(3), and 145.12. 56 Proposed VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 an application for an airman medical certificate is revocation of that certificate. The individual impacted would then be able to submit a new corrected application. Proposed §§ 3.405(b) and 402.5(b) do not require the FAA to take action against a person for an incorrect statement, entry, or omission of material fact. The FAA would use its prosecutorial discretion to determine whether such action was appropriate based on the totality of the circumstances of a particular case. IV. Regulatory Notices and Analyses Federal agencies consider impacts of regulatory actions under a variety of executive orders and other requirements. First, Executive Order 12866 and Executive Order 13563, as amended by Executive Order 14094 (‘‘Modernizing Regulatory Review’’), direct that each Federal agency shall propose or adopt a regulation only upon a reasoned determination that the benefits of the intended regulation justify the 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. Fourth, the Unfunded Mandates Reform Act of 1995 (Pub. L. 104–4) requires agencies to prepare a written assessment of the costs, benefits, and other effects of proposed or final rules that include a Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation) in any one year. The current threshold after adjustment for inflation is $177 million using the most current (2022) Implicit Price Deflator for the Gross Domestic Product. This portion of the preamble summarizes the FAA’s analysis of the economic impacts of this rule. In conducting these analyses, the FAA has determined that this proposed rule: is not a ‘‘significant regulatory action’’ as defined in section 3(f) of Executive Order 12866; will not have a significant economic impact on a substantial number of small entities; will not create unnecessary obstacles to the foreign commerce of the United States; and will not impose an unfunded mandate on State, local, or tribal governments, or on the private sector. PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 Regulatory Evaluation 1. Need for the Regulation Falsification regulations promote aviation and commercial space safety by incentivizing the provision of accurate and truthful information to the FAA. Through the proposed rule, the FAA intends to enhance aviation safety by standardizing the scope of conduct proscribed by falsification regulations that the FAA intends to deter across the applicable sections of 14 CFR parts 1 through 199 and 14 CFR parts 413 through 460 and extending this scope of conduct to the requirements of 14 CFR parts 1 through 199 and 14 CFR parts 413 through 460 that currently do not have—but should have—falsification provisions. The proposed rule would also standardize sanction provisions for this conduct and allow for more consistent sanction determinations as appropriate. 2. Benefits The proposed rulemaking would benefit the safety of the public by ensuring that information made, kept, or used to show compliance with regulatory requirements or provided to the FAA is accurate and complete. The proposed rulemaking also benefits private industry by standardizing sanction provisions and providing consistent sanction determinations. Additional benefits to private industry include a more reliable aviation system that contains less risk and requires less mitigation and corrective action to address situations where a person has falsified a document. 3. Costs The FAA has evaluated the cost impacts to the stakeholders involved in this proposed rulemaking and does not anticipate any new cost impact to industry and the FAA as a result of this proposed rule. 4. Regulatory Alternatives The FAA considered no action as an alternative to this proposed rulemaking. However, taking no action would not achieve the needed harmonization and consolidation of the falsification regulations and standardization of the scope of conduct proscribed by falsification regulations. The FAA has, therefore, determined that this proposed rule would have no new costs but positive benefits and does not warrant a full regulatory evaluation. The FAA has also determined that this proposed rule is not a ‘‘significant regulatory action’’ as defined in section 3(f) of Executive Order 12866 and is not E:\FR\FM\08FEP1.SGM 08FEP1 lotter on DSK11XQN23PROD with PROPOSALS1 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules ‘‘significant’’ as defined in DOT’s Regulatory Policies and Procedures. unnecessary obstacle to foreign commerce. B. Regulatory Flexibility Act The Regulatory Flexibility Act of 1980, Public Law 96–354, 94 Stat. 1164 (5 U.S.C. 601–612), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104–121, 110 Stat. 857, Mar. 29, 1996) and the Small Business Jobs Act of 2010 (Pub. L. 111–240, 124 Stat. 2504 Sept. 27, 2010), requires Federal agencies to consider the effects of the regulatory action on small businesses and other small entities and to minimize any significant economic impact. The term ‘‘small entities’’ comprises small businesses and not-for-profit organizations that are independently owned and operated and are not dominant in their fields and governmental jurisdictions with populations of less than 50,000. The FAA has not identified any small entities that would be affected by the proposed rule because this proposed standardization of the scope of conduct proscribed by falsification regulations does not add any new costs to regulated entities. Therefore, the FAA certifies that the proposed rule will not have a significant economic impact on small entities. The FAA welcomes comments on the basis for this certification. D. Unfunded Mandates Assessment The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531–1538) governs the issuance of Federal regulations that require unfunded mandates. An unfunded mandate is a regulation that requires a State, local, or tribal government or the private sector to incur direct costs without the Federal government having first provided the funds to pay those costs. The FAA determined that the proposed rule will not result in the expenditure of $177 million or more by State, local, or tribal governments, in the aggregate, or the private sector, in any one year. This proposed rule does not contain such a mandate; therefore, the requirements of title II of the Act do not apply. C. International Trade Impact Assessment 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 determined that this proposed rule is not considered an unnecessary obstacle to trade. The FAA has assessed the potential effect of this proposed rule and determined that it ensures the safety of the American public and does not exclude imports that meet this objective. As a result, the FAA does not consider this proposed rule as creating an VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 E. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires that the FAA consider the impact of paperwork and other information collection burdens imposed on the public. The FAA has determined that there would be no new requirement for information collection associated with this proposed rule. F. 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 determined that there are no ICAO Standards and Recommended Practices that correspond to these proposed regulations. G. Environmental Analysis FAA Order 1050.1F 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 5–6.6(f) for regulations and involves no extraordinary circumstances. V. Executive Order Determinations A. Executive Order 13132, Federalism The FAA has analyzed this proposed rule under the principles and criteria of Executive Order (E.O.) 13132, Federalism. The FAA has determined PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 8573 that this action would 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, therefore, would not have federalism implications. B. Executive Order 13175, Consultation and Coordination With Indian Tribal Governments Consistent with Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, and FAA Order 1210.20, American Indian and Alaska Native Tribal Consultation Policy and Procedures, the FAA ensures that Federally Recognized Tribes (Tribes) are given the opportunity to provide meaningful and timely input regarding proposed Federal actions that have the potential to affect uniquely or significantly their respective Tribes. At this point, the FAA has not identified any unique or significant effects, environmental or otherwise, on tribes resulting from this proposed rule. C. Executive Order 13211, Regulations That Significantly Affect Energy Supply, Distribution, or Use The FAA analyzed this proposed 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 would not be a ‘‘significant energy action’’ under the executive order and would not be likely to have a significant adverse effect on the supply, distribution, or use of energy. D. Executive Order 13609, Promoting International Regulatory Cooperation Executive Order 13609, Promoting International Regulatory Cooperation, promotes international regulatory cooperation to meet shared challenges involving health, safety, labor, security, environmental, and other issues and to reduce, eliminate, or prevent unnecessary differences in regulatory requirements. The FAA has analyzed this proposed action under the policies and agency responsibilities of E.O. 13609 and has determined that this proposed action would have no effect on international regulatory cooperation. VI. Additional Information A. Comments Invited The FAA invites interested persons to participate in this rulemaking by submitting written comments, data, or views. The FAA also invites comments relating to the economic, environmental, energy, or federalism impacts that might E:\FR\FM\08FEP1.SGM 08FEP1 8574 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules lotter on DSK11XQN23PROD with PROPOSALS1 result from adopting the proposals in this document. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should submit only one time if comments are filed electronically or commenters should send only one copy of written comments if comments are filed in writing. The FAA will file in the docket all comments it receives, as well as a report summarizing each substantive public contact with FAA personnel concerning this proposed rulemaking. Before acting on this proposal, the FAA will consider all comments it receives on or before the closing date for comments. The FAA will consider comments filed after the comment period has closed if it is possible to do so without incurring expense or delay. The FAA may change this proposal in light of the comments it receives. Proprietary or Confidential Business Information: Do not file proprietary or confidential business information in the docket. Such information must be sent or delivered directly to the person identified in the FOR FURTHER INFORMATION CONTACT section of this document and marked as proprietary or confidential. If submitting information on a disk or CD ROM, mark the outside of the disk or CD ROM, and identify electronically within the disk or CD ROM the specific information that is proprietary or confidential. Under § 11.35(b), if the FAA is aware of proprietary information filed with a comment, the agency does not place it in the docket. It is held in a separate file to which the public does not have access, and the FAA places a note in the docket that it has received it. If the FAA receives a request to examine or copy this information, it treats it as any other request under the Freedom of Information Act (5 U.S.C. 552). The FAA processes such a request under Department of Transportation procedures found in 49 CFR part 7. B. Availability of Rulemaking Documents An electronic copy of a rulemaking document may be obtained by using the internet— 1. Search the Federal eRulemaking Portal (www.regulations.gov); 2. Visit the FAA’s Regulations and Policies web page at www.faa.gov/ regulations_policies/; or 3. Access the Government Printing Office’s web page at www.GovInfo.gov. Copies may also be obtained by sending a request (identified by notice VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 or docket number of this rulemaking) to the Federal Aviation Administration, Office of Rulemaking, ARM–1, 800 Independence Avenue SW, Washington, DC 20591, or by calling (202) 267–9680. All documents the FAA considered in developing this proposed rule, including economic analyses and technical reports, may be accessed from the internet through the Federal eRulemaking Portal referenced in item (1) above. C. 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. A small entity with questions regarding this document may contact its local FAA official or the person listed under the FOR FURTHER INFORMATION CONTACT heading at the beginning of the preamble. To find out more about SBREFA on the internet, visit www.faa.gov/regulations_policies/ rulemaking/sbre_act/. List of Subjects recreation areas, Reporting and recordkeeping requirements, Security measures, Teachers. 14 CFR Part 63 Aircraft, Airman, Alcohol abuse, Aviation safety, Drug abuse, Navigation (air), Reporting and recordkeeping requirements, Security measures. 14 CFR Part 65 Air traffic controllers, Aircraft, Airmen, Airports, Alcohol abuse, Aviation safety, Drug abuse, Reporting and recordkeeping requirements, Security measures. 14 CFR Part 67 Airmen, Authority delegations (Government agencies), Health, Reporting and recordkeeping requirements. 14 CFR Part 68 Aircraft, Airmen, Aviation safety, Health, Reporting and recordkeeping requirements. 14 CFR Part 77 Air traffic control, Aircraft, Aviation safety, Navigation (air). 14 CFR Part 89 14 CFR Part 3 Aircraft, Aviation safety, Fraud. 14 CFR Part 5 Administrative practice and procedure, Air carriers, Aircraft, Aviation safety, Reporting and recordkeeping requirements. 14 CFR Part 21 Aircraft, Aviation safety, Exports, Imports, Reporting and recordkeeping requirements. 14 CFR Part 43 Aircraft, Aviation safety, Reporting and recordkeeping requirements. 14 CFR Part 45 Aircraft, Aviation safety, Reporting and recordkeeping requirements. 14 CFR Part 47 Aircraft, Reporting and recordkeeping requirements. 14 CFR Part 48 Aircraft, Reporting and recordkeeping requirements. 14 CFR Part 60 Airmen, Aviation safety, Reporting and recordkeeping requirements. Air traffic control, Aircraft, Airmen, Aviation safety, Reporting and recordkeeping requirements, Security measures, Unmanned aircraft. 14 CFR Part 91 Afghanistan, Agriculture, Air carriers, Air taxis, Air traffic control, Aircraft, Airmen, Airports, Alaska, Aviation safety, Canada, Charter flights, Cuba, Drug traffic control, Ethiopia, Freight, Iraq, Libya, Mexico, Noise control, North Korea, Political candidates, Reporting and recordkeeping requirements, Security measures, Somalia, Syria, Transportation, Yugoslavia. 14 CFR Part 93 Air traffic control, Aircraft, Aviation safety, Navigation (air). 14 CFR Part 99 Air traffic control, Aircraft, Aviation safety, Security measures. 14 CFR Part 101 Aircraft, Aviation safety, Balloons, Rockets. 14 CFR Part 103 Aircraft, Airmen, Aviation safety. 14 CFR Part 61 14 CFR Part 105 Airmen, Alcohol abuse, Aviation safety, Drug abuse, Recreation and Aircraft, Aviation safety, Parachutes, Recreation and recreation areas, PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 E:\FR\FM\08FEP1.SGM 08FEP1 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules Reporting and recordkeeping requirements. 14 CFR Part 107 Aircraft, Airmen, Aviation safety, Reporting and recordkeeping requirements, Security measures. 14 CFR Part 120 Air carriers, Air traffic controllers, Airmen, Alcohol abuse, Alcoholism, Aviation safety, Drug abuse, Drug testing, Reporting and recordkeeping requirements, Safety, Transportation. 14 CFR Part 125 Aircraft, Airmen, Aviation safety, Safety, Reporting and recordkeeping requirements. 14 CFR Part 129 Air carriers, Aircraft, Aviation safety, Reporting and recordkeeping requirements. 14 CFR Part 133 Aircraft, Airmen, Aviation safety, Helicopters. lotter on DSK11XQN23PROD with PROPOSALS1 Aircraft, Airmen, Aviation safety, Educational facilities, Reporting and recordkeeping requirements, Schools, Students, Teachers. 14 CFR Part 145 Aircraft, Aviation safety, Reporting and recordkeeping requirements. 14 CFR Part 147 Aircraft, Airmen, Aviation safety, Education, Educational facilities, Reporting and recordkeeping requirements, Schools. Aircraft, Airmen, Authority delegations (Government agencies), Aviation safety, Reporting and recordkeeping requirements. Aviation safety, Environmental protection, Investigations, Reporting and recordkeeping requirements, Rockets, Safety, Space transportation and exploration. 14 CFR Part 435 Aviation safety, Environmental protection, Investigations, Reporting and recordkeeping requirements, Rockets, Space transportation and exploration. 14 CFR Part 437 Airspace, Aviation safety, Rockets, Safety, Space transportation and exploration. 14 CFR Part 440 Indemnity payments, Insurance, Reporting and recordkeeping requirements, Space transportation and exploration. 14 CFR Part 450 Fraud, Reporting and recordkeeping requirements, Rockets, Safety, Space transportation and exploration. 14 CFR Part 413 14 CFR Part 460 Confidential business information, Reporting and recordkeeping requirements, Rockets, Safety, Space transportation and exploration. Reporting and recordkeeping requirements, Rockets, Space safety, Space transportation and exploration. 14 CFR Part 414 Aviation safety, Confidential business information, Rockets, Safety, Space transportation and exploration. 14 CFR Part 417 Aviation safety, Reporting and recordkeeping requirements, Rockets, Safety, Space transportation and exploration. 14 CFR Part 420 Airspace, Aviation safety, Environmental protection, Reporting and recordkeeping requirements, Space transportation and exploration. PO 00000 Frm 00017 Fmt 4702 The Proposed Amendment In consideration of the foregoing, the Federal Aviation Administration proposes to amend 14 CFR as follows: PART 3—GENERAL REQUIREMENTS Aviation safety, Environmental protection, Reporting and recordkeeping requirements, Safety, Space transportation and exploration. 14 CFR Part 136 Air transportation, Aircraft, Aviation safety, National parks, Recreation and recreation areas, Reporting and recordkeeping requirements. 14 CFR Part 433 Aircraft, Aviation safety, Environmental protection, Investigations, Reporting and recordkeeping requirements, Safety, Space transportation and exploration. 14 CFR Part 402 14 CFR Part 415 14 CFR Part 135 Air taxis, Aircraft, Airmen, Alcohol abuse, Aviation Safety, Drug abuse, Drug testing, Reporting and recordkeeping requirements. Jkt 262001 Aviation safety, Environmental protection, Investigations, Reporting and recordkeeping requirements, Rockets, Safety, Space transportation and exploration. 14 CFR Part 183 14 CFR Part 121 Air carriers, Aircraft, Airmen, Alcohol abuse, Aviation safety, Charter flights, Drug abuse, Drug testing, Reporting and recordkeeping requirements, Safety, Transportation. 17:04 Feb 07, 2024 Air carriers, Aircraft, Airports, Aviation safety, Reporting and recordkeeping requirements. 14 CFR Part 142 14 CFR Part 119 Administrative practice and procedure, Air carriers, Aircraft, Airmen, Aviation safety, Charter flights, Reporting and recordkeeping requirements. VerDate Sep<11>2014 14 CFR Part 431 Air transportation, Aircraft, Aircraft pilots, Airmen, Aviation safety, Education, Educational facilities, Helicopters, Reporting and recordkeeping requirements, Rotorcraft, Schools, Students, Teachers, Transportation. 14 CFR Part 117 Airmen, Aviation safety, Reporting and recordkeeping requirements. 14 CFR Part 137 Aircraft, Aviation safety, Reporting and recordkeeping requirements. 14 CFR Part 139 14 CFR Part 141 14 CFR Part 111 Administrative practice and procedure, Air carriers, Air operators, Air taxis, Aircraft, Airmen, Alcohol abuse, Aviation safety, Charter flights, Drug abuse, Public aircraft, Reporting and recordkeeping requirements. 8575 Sfmt 4702 1. The authority citation for part 3 is revised to read as follows: ■ Authority: 49 U.S.C. 106(g), 40113, 44701– 44709, 46111, and 46301. 2. Revise § 3.1(a) introductory text to read as follows: ■ § 3.1 Applicability. (a) This subpart applies to any person who makes a record regarding: * * * * * ■ 3. Add subpart D, consisting of §§ 3.401, 3.403, and 3.405, to part 3 to read as follows: E:\FR\FM\08FEP1.SGM 08FEP1 8576 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules Subpart D—Falsification, Reproduction, Alteration, Omission, or Incorrect Statements Sec. 3.401 Applicability. 3.403 Falsification, reproduction, alteration, or omission. 3.405 Incorrect statement, or omission. § 3.401 Applicability. This subpart applies to any person subject to the requirements in subchapter A (except parts 1 and 3), subchapter C (except part 39), subchapter D, subchapter E (except parts 71 and 73), subchapter F (except parts 95 and 97), subchapter G (except part 110), subchapter H, and subchapter K (except parts 185, 187, 189 and 193), of this chapter. lotter on DSK11XQN23PROD with PROPOSALS1 § 3.403 Falsification, reproduction, alteration, or omission. (a) No person may make or cause to be made any fraudulent or intentionally false statement in: (1) Any document in any format, submitted under any provision referenced in § 3.401, consisting of or related to any acceptance, application, approval, authorization, certificate, rating, declaration, designation, qualification, record, report, request for reconsideration, or similar; or (2) Any document in any format that is kept, made, or used to show compliance with any requirement under the provisions referenced in § 3.401. (b) No person may make or cause to be made any production, reproduction, or alteration, for fraudulent purpose, of: (1) Any document in any format, submitted or granted under any provision referenced in § 3.401, consisting of or related to any acceptance, application, approval, authorization, certificate, rating, declaration, designation, qualification, record, report, request for reconsideration, or similar; or (2) Any document in any format that is kept, made, or used to show compliance with any requirement under the provisions referenced in § 3.401. (c) No person may knowingly omit, or cause to be omitted, a material fact in: (1) Any document in any format, submitted under any provision referenced in § 3.401, consisting of or related to any acceptance, application, approval, authorization, certificate, rating, declaration, designation, qualification, record, report, request for reconsideration, or similar; or (2) Any document in any format that is kept, made, or used to show compliance with any requirement under the provisions referenced in § 3.401. VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 (d) The commission by any person of an act prohibited under paragraphs (a) through (c) of this section is a basis for: (1) Denying, suspending, modifying, revoking, rescinding, removing, or withdrawing any acceptance, application, approval, authorization, certificate, rating, declaration, designation, qualification, request for reconsideration, or similar, issued or granted by the Administrator and held by that person; or (2) A civil penalty. § 3.405 Incorrect statement, or omission. (a) No person may make or cause to be made a material incorrect statement, or omit or cause to be omitted a material fact, in: (1) Any document in any format, submitted under any provision referenced in § 3.401, consisting of or related to any acceptance, application, approval, authorization, certificate, rating, declaration, designation, qualification, record, report, request for reconsideration, or similar; or (2) Any document in any format that is kept, made, or used to show compliance with any requirement under the provisions referenced in § 3.401. (b) A material incorrect statement, or omission of a material fact, in any document described in § 3.405(a)(1) and (2) may serve as a basis for denying, suspending, modifying, revoking, rescinding, removing, or withdrawing any acceptance, application, approval, authorization, certificate, rating, declaration, designation, qualification, request for reconsideration, or similar, issued or granted by the Administrator and held by that person. PART 21—CERTIFICATION PROCEDURES FOR PRODUCTS AND ARTICLES 4. The authority citation for part 21 continues to read as follows: ■ Authority: 42 U.S.C. 7572; 49 U.S.C. 106(f), 106(g), 40105, 40113, 44701–44702, 44704, 44707, 44709, 44711, 44713, 44715, 45303. § 21.2 ■ [Removed and reserved] 5. Remove and reserve § 21.2. PART 43—MAINTENANCE, PREVENTIVE MAINTENANCE, REBUILDING, AND ALTERATION 6. The authority citation for part 43 continues to read as follows: ■ PART 60—FLIGHT SIMULATION TRAINING DEVICE INITIAL AND CONTINUING QUALIFICATION AND USE 8. The authority citation for part 60 continues to read as follows: ■ Authority: 49 U.S.C. 106(f), 106(g), 40113, and 44701; Pub. L. 111–216, 124 Stat. 2348 (49 U.S.C. 44701 note). § 60.33 ■ [Removed and Reserved] 9. Remove and reserve § 60.33. Appendix A to Part 60 ■ 10. In Appendix A to part 60: ■ a. In the table of contents, remove and reserve entry 22., and ■ b. Remove and reserve section ‘‘22. Applications, Logbooks, Reports, and Records: Fraud, Falsification, or Incorrect Statements (§ 60.33)’’ Appendix B to Part 60 11. In Appendix B to part 60: a. In the table of contents, remove and reserve entry 22., and ■ b. Remove and reserve section ‘‘22. Applications, Logbooks, Reports, and Records: Fraud, Falsification, or Incorrect Statements (§ 60.33).’’ ■ ■ Appendix C to Part 60 ■ 12. In Appendix C to part 60: ■ a. In the table of contents, remove and reserve entry 22., and ■ b. Remove and reserve section ‘‘22. Applications, Logbooks, Reports, and Records: Fraud, Falsification, or Incorrect Statements (§ 60.33).’’ Appendix D to Part 60 13. In Appendix D to part 60: a. In the table of contents, remove and reserve entry 22., and ■ b. Remove and reserve section ‘‘22. Applications, Logbooks, Reports, and Records: Fraud, Falsification, or Incorrect Statements (§ 60.33).’’ ■ ■ PART 61—CERTIFICATION: PILOTS, FLIGHT INSTRUCTORS, AND GROUND INSTRUCTORS 14. The authority citation for part 61 continues to read as follows: ■ Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701–44703, 44707, 44709–44711, 44729, 44903, 45102–45103, 45301–45302. § 61.59 ■ [Removed and reserved] 15. Remove and reserve § 61.59. PART 63—CERTIFICATION: FLIGHT CREWMEMBERS OTHER THAN PILOTS Authority: 42 U.S.C. 7572; 49 U.S.C. 106(f), 106(g), 40105, 40113, 44701–44702, 44704, 44707, 44709, 44711, 44713, 44715, 45303. ■ § 43.12 Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701–44703, 44707, 44709–44711, 45102– 45103, 45301–45302. ■ [Removed and reserved] 7. Remove and reserve § 43.12. PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 16. The authority citation for part 63 continues to read as follows: E:\FR\FM\08FEP1.SGM 08FEP1 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules § 63.20 ■ [Removed and reserved] 17. Remove and reserve § 63.20. PART 65—CERTIFICATION: AIRMEN OTHER THAN FLIGHT CREWMEMBERS § 111.35 Sec. 402.1 Applicability. 402.3 Falsification, reproduction, alteration, or omission. 402.5 Incorrect statement, or omission. [Removed and reserved] 28. Remove and reserve § 111.35. [Removed and reserved] 19. Remove and reserve § 65.20. § 402.1 Authority: 49 U.S.C. 106(f), 106(g), 40101– 40103, 40113, 40120, 41706, 41721, 44106, 44701, 44702, 44703, 44709, 44710, 44711, 45101–45105, 46105, 46306. This part applies to any person subject to the requirements in subchapter C of this chapter. 30. Remove and reserve § 120.103(e). § 402.3 Falsification, reproduction, alteration, or omission. ■ PART 67—MEDICAL STANDARDS AND CERTIFICATION 20. The authority citation for part 67 continues to read as follows: § 120.213 ■ [Removed and reserved] 31. Remove and reserve § 120.213. ■ Authority: 49 U.S.C. 106(g), 40113, 44701– 44703, 44707, 44709–44711, 45102–45103, 45301–45303. 21. Revise § 67.401(f)(5) to read as follows: ■ § 67.401 Special issuance of medical certificates. * * * * * (f) * * * (5) The holder makes or causes to be made a statement or entry that is the basis for withdrawal of an Authorization, including a SODA, under subpart D of part 3 of this chapter. * * * * * § 67.403 ■ [Removed and reserved] PART 89—REMOTE IDENTIFICATION OF UNMANNED AIRCRAFT 32. The authority citation for part 121 continues to read as follows: ■ Authority: 49 U.S.C. 106(f), 106(g), 40103, 40113, 40119, 41706, 42301 preceding note added by Pub. L. 112–95, sec. 412, 126 Stat. 89, 44101, 44701–44702, 44705, 44709– 44711, 44713, 44716–44717, 44722, 44729, 44732; 46105; Pub. L. 111–216, 124 Stat. 2348 (49 U.S.C. 44701 note); Pub. L. 112–95, 126 Stat. 62 (49 U.S.C. 44732 note); Pub. L. 115–254, 132 Stat. 3186 (49 U.S.C. 44701 note). § 121.9 ■ [Removed and reserved] 33. Remove and reserve § 121.9. 34. The authority citation for part 139 continues to read as follows: ■ Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701–44706, 44709, 44719, 47175. 23.The authority citation for part 89 continues to read as follows: ■ Authority: 49 U.S.C. 106(f), 106(g), 40101(d), 40103(b), 44701, 44805, 44809(f); Section 2202 of Pub. L. 114–190, 130 Stat. 629. § 139.115 § 89.5 ■ ■ [Removed and reserved] 35. Remove and reserve § 139.115. PART 142—TRAINING CENTERS 24. Remove and reserve § 89.5. 36. The authority citation for part 142 continues to read as follows: PART 107—SMALL UNMANNED AIRCRAFT SYSTEMS Authority: 49 U.S.C. 106(f), 106(g), 40113, 40119, 44101, 44701–44703, 44705, 44707, 44709–44711, 45102–45103, 45301–45302. ■ [Removed and reserved] 25. The authority citation for part 107 continues to read as follows: ■ Authority: 49 U.S.C. 106(f), 40101 note, 40103(b), 44701(a)(5), 46105(c), 46110, 44807. lotter on DSK11XQN23PROD with PROPOSALS1 PART 121—OPERATING REQUIREMENTS: DOMESTIC, FLAG, AND SUPPLEMENTAL OPERATIONS PART 139—CERTIFICATION OF AIRPORTS 22. Remove and reserve § 67.403. § 107.5 ■ Authority: 49 U.S.C. 106(g), 40113, 44701– 44702, 44707, 44709, 44717. § 145.12 27. The authority citation for part 111 continues to read as follows: 17:04 Feb 07, 2024 Jkt 262001 [Removed and reserved] 37. Remove and reserve § 142.11(e)(3). 38. The authority citation for part 145 continues to read as follows: PART 111—PILOT RECORDS DATABASE VerDate Sep<11>2014 ■ PART 145—REPAIR STATIONS [Removed and reserved] ■ § 142.11 ■ 26. Remove and reserve § 107.5. Authority: 51 U.S.C. 50101–50923. 29. The authority citation for part 120 continues to read as follows: ■ Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701–44703, 44707, 44709–44711, 45102– 45103, 45301–45302. ■ PART 402—GENERAL REQUIREMENTS PART 120—DRUG AND ALCOHOL TESTING PROGRAM 18. The authority citation for part 65 continuous to read as follows: § 65.20 Authority: 49 U.S.C. 106(f), 106(g), 40101, 40113, 44701, 44703, 44711, 46105, 46301. ■ ■ 8577 [Removed and reserved] 39. Remove and reserve § 145.12. 40. Add part 402 to subchapter A to read as follows: ■ ■ PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 Applicability. (a) No person may make or cause to be made any fraudulent or intentionally false statement in: (1) Any document in any format, submitted under any provision referenced in § 402.1 of this part, consisting of or related to any acceptance, application, approval, authorization, permit, license, waiver, record, report, or similar; or (2) Any document in any format that is kept, made, or used to show compliance with any requirement under the provisions referenced in § 402.1. (b) No person may make or cause to be made any production, reproduction or alteration, for fraudulent purpose, of: (1) Any document in any format, submitted or granted under any provision referenced in § 402.1, consisting of or related to any acceptance, application, approval, authorization, permit, license, waiver, record, report, or similar; or (2) Any document in any format that is kept, made, or used to show compliance with any requirement under the provisions referenced in § 402.1. (c) No person may knowingly omit or cause to be omitted a material fact in: (1) Any document in any format, submitted under any provision referenced in § 402.1, consisting of or related to any acceptance, application, approval, authorization, permit, license, waiver, record, report, or similar; or (2) Any document in any format that is kept, made, or used to show compliance with any requirement under the provisions referenced in § 402.1. (d) The commission by any person of an act prohibited under paragraphs (a) through (c) of this section is a basis for: (1) Denying, suspending, modifying, revoking, rescinding, removing, or withdrawing any acceptance, application, approval, authorization, permit, license, waiver, or similar, issued or granted by the Administrator and held by that person; or (2) A civil penalty. E:\FR\FM\08FEP1.SGM 08FEP1 8578 § 402.5 Federal Register / Vol. 89, No. 27 / Thursday, February 8, 2024 / Proposed Rules Incorrect statement, or omission. (a) No person may make or cause to be made a material incorrect statement, or omit or cause to be omitted a material fact, in: (1) Any document in any format, submitted under any provision referenced in § 402.1, consisting of or related to any acceptance, application, approval, authorization, permit, license, waiver, record, report, or similar; or (2) Any document in any format that is kept, made, or used to show compliance with any requirement under the provisions referenced in § 402.1. (b) A material incorrect statement, or omission of a material fact, in a document described in § 402.5(a)(1) and (2) may serve as a basis for denying, suspending, modifying, revoking, rescinding, removing, or withdrawing any acceptance, application, approval, authorization, permit, license, waiver, or similar, issued or granted by the Administrator and held by that person. PART 413—LICENSE APPLICATION PROCEDURES 41. The authority citation for part 413 continues to read as follows: ■ Authority: 51 U.S.C. 50901–50923. 42. Remove and reserve § 413.17(c). Issued under authority provided by 49 U.S.C. 106(f), 44701(a), and 44703 in Washington, DC. ■ Marc A. Nichols, Chief Counsel. [FR Doc. 2024–00872 Filed 2–7–24; 8:45 am] BILLING CODE 4910–13–P FEDERAL TRADE COMMISSION 16 CFR Part 1 RIN 3084–AB79 Horseracing Integrity and Safety Authority Oversight Federal Trade Commission. Notice of proposed rule; request for comment. AGENCY: ACTION: The Federal Trade Commission (‘‘FTC’’ or ‘‘Commission’’) announces proposed rules regarding oversight of the Horseracing Integrity and Safety Authority (‘‘Authority’’). The proposed rules include new oversight provisions to ensure that the Authority remains publicly accountable and operates in a fiscally prudent, safe, and effective manner. DATES: Comments must be received by April 8, 2024. ADDRESSES: Interested parties may file a comment online or on paper by lotter on DSK11XQN23PROD with PROPOSALS1 SUMMARY: VerDate Sep<11>2014 17:04 Feb 07, 2024 Jkt 262001 following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION section below. Write ‘‘HISA Oversight Rulemaking, Matter No. P222100’’ on your comment and file your comment online at https://www.regulations.gov by following the instructions on the webbased form. If you prefer to file your comment on paper, mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Mail Stop H–144 (Annex H), Washington, DC 20580. FOR FURTHER INFORMATION CONTACT: Sarah Botha (202–326–2036, sbotha@ ftc.gov), Office of the Executive Director, Federal Trade Commission. SUPPLEMENTARY INFORMATION: Background The Horseracing Integrity and Safety Act of 2020 (‘‘HISA’’ or ‘‘the Act’’), Public Law 116–260, Title XII, 134 Stat 1182, 3252 (2020) (codified as amended at 15 U.S.C. 3051–3060), recognizes the Authority as a self-regulatory nonprofit organization charged with developing and enforcing rules relating to racetrack safety, anti-doping, and medication control. See 15 U.S.C. 3052. The Act expressly provides for Commission oversight of several aspects of the Authority’s operations. For example, the Commission must approve any proposed rule or rule modification by the Authority relating to the Authority’s bylaws, racetrack safety standards, antidoping and medication control, and the formula or methodology for determining assessments. See id. In December 2022, Congress amended HISA to expand the Commission’s oversight role over the Authority. See Consolidated Appropriations Act, 2023, Public Law 117–328, Sec. 701, 136 Stat. 4459, 5231 (2022). As amended, the Act gives the Commission the power to issue rules under the procedures set forth in the Administrative Procedure Act, 5 U.S.C. 553, ‘‘as the Commission finds necessary or appropriate to ensure the fair administration of the Authority . . . or otherwise in furtherance of the purposes of this Act.’’ 15 U.S.C. 3053(e). In light of the Commission’s experience in overseeing the Authority’s operations to date, the Commission is exercising its rulemaking authority to propose several new rule provisions to ensure effective Commission oversight over the Authority. The proposed new provisions are designed to ensure that the Authority is promoting transparency and integrity in its operations. For example, new rule sections would require the Authority to submit and PO 00000 Frm 00020 Fmt 4702 Sfmt 4702 publish annual and midyear reports about its performance and financial position. The proposed rules would also require the Authority to develop, maintain, and publish a multi-year strategic plan, after taking public comments on the draft plan. The proposed rules would require the Authority to effectively manage risk and take steps to prevent conflicts of interest, waste, fraud, embezzlement, and abuse. The proposed rules would also mandate other operational requirements and identify best practices for the Authority to follow, as explained in the section-by-section analysis below. The Commission would add the proposed new rules as 16 CFR 1.153 through 1.156 in Subpart U of part 1 of its Rules of Practice. Subpart U would be renamed ‘‘Oversight of the Horseracing Integrity and Safety Authority’’ to reflect more accurately the content of the amended subpart. Section by Section Analysis § 1.153 Submission of the Authority’s annual reports, midyear reports, and strategic plans. This proposed new section imposes certain requirements on the Authority to report on its finances for the preceding calendar year by May 15. This includes a complete accounting of the Authority’s budget (as audited by a qualified, independent, registered public accounting firm and in accordance with Generally Accepted Accounting Principles), a discussion of budgetary line items, a summary of travel expenses, and a summary of any new or continuing risks or issues raised by audits or other reviews. The proposed section also imposes certain requirements on the Authority to report by March 31 on its performance for the prior calendar year, with such report to include efforts made to carry out the requirements of the Act, a description of the cooperation with the states as set forth in 15 U.S.C. 3060(b), a summary of final civil sanctions, an assessment of the Authority’s progress in meeting or not meeting its performance measures contained in its strategic plan per § 1.153(d), a summary of Board of Directors committee recommendations and activities, information about any changes in the composition of the Authority’s Board of Directors or standing committees, information about the relationship between the Authority and the anti-doping and medication control enforcement agency, a summary of all litigation to which the Authority is a party (including actions commenced by the Authority under 15 U.S.C. 3054(j)), a summary of all subpoenas issued by the Authority under 15 U.S.C. E:\FR\FM\08FEP1.SGM 08FEP1

Agencies

[Federal Register Volume 89, Number 27 (Thursday, February 8, 2024)]
[Proposed Rules]
[Pages 8560-8578]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00872]


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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 3, 21, 43, 60, 61, 63, 65, 67, 89, 107, 111, 120, 121, 
139, 142, 145, 413

[Docket No.: FAA-2024-0021; Notice No. 24-07]
RIN 2120-AL84


Falsification, Reproduction, Alteration, Omission, or Incorrect 
Statements

AGENCY: Federal Aviation Administration (FAA), Department of 
Transportation (DOT).

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FAA proposes to amend, restructure, and consolidate the 
falsification regulations presently located throughout title 14 of the 
Code of Federal Regulations. This proposal would (1) harmonize 
inconsistencies among the various falsification regulations and 
associated sanctions; (2) consolidate all existing falsification 
regulations into a general rule that standardizes the existing 
falsification regulations; and (3) ensure that falsification-related 
conduct not addressed by pertinent current regulations would be covered 
under the general rule. In addition, this proposal would create a 
falsification prohibition applicable to the regulations governing 
Commercial Space Transportation.

DATES: Send comments on or before April 8, 2024.

ADDRESSES: Send comments identified by docket number FAA-2024-0021 
using any of the following methods:
     Federal eRulemaking Portal: Go to www.regulations.gov/ and 
follow the online instructions for sending your comments 
electronically.
     Mail: Send comments to Docket Operations, M-30; U.S. 
Department of Transportation (DOT), 1200 New Jersey Avenue, SE, Room 
W12-140, West Building Ground Floor, Washington, DC 20590-0001.
     Hand Delivery or Courier: Take comments to Docket 
Operations in Room W12-140 of the West Building Ground Floor at 1200 
New Jersey Avenue, SE, Washington, DC, between 9 a.m. and 5 p.m., 
Monday through Friday, except Federal holidays.
     Fax: Fax comments to Docket Operations at (202) 493-2251.
    Privacy: In accordance with 5 U.S.C. 553(c), DOT solicits comments 
from the public to better inform its rulemaking process. DOT posts 
these comments, without edit, including any personal information the 
commenter provides, to www.regulations.gov, as described in the system 
of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
www.dot.gov/privacy.
    Docket: Background documents or comments received may be read at 
www.regulations.gov at any time. Follow the online instructions for 
accessing the docket or go to the Docket Operations in Room W12-140 of 
the West Building Ground Floor at 1200 New Jersey Avenue, SE, 
Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays.

FOR FURTHER INFORMATION CONTACT: John C. Stuart, Jr., Senior Attorney, 
Aviation Litigation Division, AGC-300, Federal Aviation Administration, 
Office of the Chief Counsel, 800 Independence Avenue SW, Washington, DC 
20591; telephone (202) 267-9958; email [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Executive Summary
    A. Overview of Proposed Rule
    B. Background
    C. Statement of the Problem
    D. Summary of the Costs and Benefits
II. Authority for This Rulemaking
III. Discussion of the Proposal
    A. Applicability of the Proposed Rulemaking to 14 CFR Chapter I
    B. Applicability of the Proposed Rulemaking to 14 CFR Chapter 
III
    C. ``Statements'' in Proposed Sections 3.403(a), 3.405(a), 
402.3(a), and 402.5(a)
    D. Categories of ``Any Document In Any Format'' in Proposed 
Sections 3.403 and 3.405--14 CFR Chapter I
    E. Categories of ``Any Document In Any Format'' in Proposed 
Sections 402.3 and 402.5--14 CFR Chapter III
    F. Fraudulent or Intentionally False Statements in Proposed 
Sections 3.403(a) and 402.3(a)
    G. Production, Reproduction, Alteration, for Fraudulent Purpose 
in Proposed Sections 3.403(b) and 402.3(b)
    H. Knowingly Omitting or Causing To Be Omitted a Material Fact 
Under Proposed Sections 3.403(c) and 402.3(c)
    I. Sanction Under Proposed Sections 3.403(d) and 402.3(d) for 
Conduct Described in Sections F, G, and H of this NPRM
    J. Incorrect Statements, or Omissions under Proposed Sections 
3.405 and 402.5.
    K. Sanction Under Sections 3.405(b) and 402.5(b) for Incorrect 
Statements, or Omissions
IV. Regulatory Notices and Analyses
    A. Regulatory Evaluation
    B. Regulatory Flexibility Act
    C. International Trade Impact Assessment
    D. Unfunded Mandates Assessment
    E. Paperwork Reduction Act
    F. International Compatibility
    G. Environmental Analysis
V. Executive Order Determinations
    A. Executive Order 13132, Federalism

[[Page 8561]]

    B. Executive Order 13175, Consultation and Coordination With 
Indian Tribal Governments
    C. Executive Order 13211, Regulations That Significantly Affect 
Energy Supply, Distribution, or Use
    D. Executive Order 13609, Promoting International Regulatory 
Cooperation
VI. Additional Information
    A. Comments Invited
    B. Availability of Rulemaking Documents
    C. Small Business Regulatory Enforcement Fairness Act

I. Executive Summary

A. Overview of Proposed Rule

    The FAA and other relevant stakeholders rely on complete and 
accurate information in safety-related records. Indeed, the FAA and 
regulated persons make critical safety-related decisions based on the 
information, such as in FAA-required records, and necessarily rely on 
the veracity of that information. When a person provides falsified 
information or omits material information from records, that person 
creates a threat to aviation safety by inhibiting the ability of the 
FAA and other stakeholders to make critical safety-related decisions. 
Falsification regulations promote the integrity of information 
necessary to ensure aviation safety. They also serve as a basis for 
appropriate action when a person engages in falsification-related 
conduct.
    The proposed rule would affect applicable parts in 14 CFR chapters 
I and III. Falsification prohibitions are currently found in 14 CFR 
chapter I, parts 3, 21, 43, 60, 61, 63, 65, 67, 89, 107, 111, 120, 121, 
139, 142, and 145. The FAA proposes to remove the existing 
falsification regulations from parts 21, 43, 60, 61, 63, 65, 67, 89, 
107, 111, 120, 121, 139, 142, and 145, and consolidate them in a new 
subpart in part 3. The proposed rule in part 3 would also apply to 
those parts of 14 CFR chapter I that do not currently have 
falsification regulations but for which such regulations are clearly 
warranted, as explained in the ``Discussion of the Proposal Section'' 
in this NPRM. Those parts are 5, 23, 25, 26, 27, 29, 31, 33, 34, 35, 
36, 45, 47, 48, 49, 68, 77, 91, 93, 99, 101, 103, 105, 117, 119, 125, 
129, 133, 135, 136, 137, 141, 147, and 183. As a result, the proposed 
rule in part 3 would create standardized falsification proscriptions 
and apply them to 14 CFR parts 5, 21, 23, 25, 26, 27, 29, 31, 33, 34, 
35, 36, 43, 45, 47, 48, 49, 60, 61, 63, 65, 67, 68, 77, 89, 91, 93, 99, 
101, 103, 105, 107, 111, 117, 119, 120, 121, 125, 129, 133, 135, 136, 
137, 139, 141, 142, 145, 147, and 183.
    The proposed rule would also remove the existing falsification 
regulations located in 14 CFR 413.17(c) and create a new part--part 
402--containing a falsification prohibition applicable to 14 CFR 
chapter III, subchapter C. Subchapter C consists of 14 CFR parts 413, 
414, 415, 417, 420, 431, 433, 435, 437, 440, 450, and 460.
    The proposed rules in part 3 and part 402 would proscribe: (1) 
intentionally false or fraudulent statements; (2) productions, 
reproductions, or alterations for fraudulent purpose; (3) knowingly 
omitting or causing to be omitted a material fact; and (4) incorrect 
statements. Each prohibition is described in the ``Discussion of the 
Proposal'' section of this NPRM. Also, the proposed rule would 
standardize sanctions for violations of the falsification regulations 
under 14 CFR, chapters I and III, cited in this NPRM.

B. Background

1. Definition of ``falsification regulations'' and Current Locations in 
14 CFR
    The term ``falsification regulations'' as used in this NPRM 
generically refers to a variety of provisions in 14 CFR parts 1-199 
implemented over decades that variously prohibit the following: (1) 
fraudulent or intentionally false statements or entries; (2) any 
reproduction for fraudulent purpose; (3) any alteration, including 
alterations for fraudulent purpose; (4) knowingly concealing or causing 
to be concealed a material fact by omission; (5) concealing or causing 
to be concealed a material fact; (6) known omissions; (7) misleading 
statements; and (8) incorrect statements or entries upon which the FAA 
relied or could have relied. The term also refers to willful false 
statements prohibited in 14 CFR 413.17(c). A violation of these 
standards is referenced in this NPRM as ``falsification-related'' 
conduct. The proposed rulemaking would consolidate these nine 
categories of proscribed conduct into the four categories identified 
above.
    A false statement is distinct from an intentionally false or 
fraudulent one. A false statement or entry \1\ is one that is 
incorrect. An incorrect statement or entry is made when a person 
unknowingly provides false (i.e., incorrect) information upon which the 
agency relies. Incorrect statements or entries are prohibited by 14 CFR 
60.33(c)(1)-(2) and 67.403. In contrast, an intentional false statement 
is comprised of three elements: a (1) false statement, (2) in reference 
to a material fact,\2\ (3) that is made with knowledge of its 
falsity.\3\ A fraudulent statement or entry consists of the preceding 
three elements plus two additional elements: (1) an intent to deceive 
and (2) with action taken in reliance upon the representation.\4\ 
Intentionally false or fraudulent statements or entries are currently 
proscribed by 14 CFR 21.2(a)(1)-(2), 43.12(a)(1), 60.33(a)(1)-(2), 
61.59(a)(1)-(2), 63.20(a)(1)-(2), 65.20(a)(1)-(2), 67.403(a)(1)-(2), 
89.5(a)(1)-(2), 107.5(a)(1), 111.35(a)-(c), 120.103(e)(1)-(2), 
121.9(a)(1)-(2), 139.115(a)(1)-(2), and 145.12(a)(1).
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    \1\ Over the years, the agency's use of the terms ``statement'' 
and ``entry'' has varied. In the earliest falsification regulations 
(i.e., in 1965), a clear dichotomy existed between statements and 
entries: a statement applied to an application while an entry 
applied to a ``logbook, record, or report that is required to be 
kept, made, or used to show compliance'' with a requirement (i.e., 
14 CFR 61.48 (currently Sec.  61.59), 63.20, 65.20, and 67.20 
(currently Sec.  67.403)). Consistent with those earliest 
regulations, in 1978, 14 CFR 43.12(a)(1) proscribed fraudulent 
entries ``in any record or report that is required to be kept, made, 
or used to show compliance'' with a requirement. In 1992, the FAA 
continued applying the distinction between statements and entries 
when it issued 14 CFR 21.2.
    The clear dichotomy was blurred when the agency proscribed 
statements in connection with falsifying both applications and 
records or reports that are kept, made, or used to show compliance 
(i.e., 14 CFR 21.2, as amended in 2009; 60.33 (2006); 121.9 (2013); 
and 111.35 (2021)). Conversely, in 14 CFR 145.12 (2014), the agency 
proscribed entries in connection with falsifying both applications 
and records and reports. However, during the same period, the FAA 
issued other falsification regulations that retained the dichotomy 
in the earliest falsification regulations (i.e., 14 CFR 120.103 
(2004); Sec.  120.213 (2004); and Sec.  139.115 (2013)).
    \2\ A false statement is ``material'' if it has the natural 
tendency to influence or is capable of influencing an agency 
decision. Cassis v. Helms, 737 F.2d 545, 547 (6th Cir. 1984).
    \3\ See, Pence v. United States, 316 U.S. 332, 338 (1942); Hart 
v. McLucas, 535 F.2d 516, 519 (9th Cir. 1976).
    \4\ See Pence, 316 U.S. at 338.
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    Reproductions for a fraudulent purpose and alterations, including 
alterations for a fraudulent purpose, are proscribed in falsification 
regulations. Most of the existing falsification regulations already 
prohibit reproductions and alterations. Such prohibitions are found at 
14 CFR 21.2(a)(3)-(4), 43.12(a)(2)-(3), 60.33(a)(3), 61.59(a)(3)-(4), 
63.20(a)(3)-(4), 65.20(a)(3)-(4), 67.403(a)(3)-(4), 89.5(a)(3), 
107.5(a)(2), 120.103(e)(3), 139.115(a)(3)-(4), and 145.12(a)(2)-(3). 
While some of these regulations prohibit any alteration of the 
applicable document (i.e., 14 CFR 21.2(a)(4), 61.59(a)(4), 65.20(a)(4), 
and 67.403(a)(4)), others prohibit only fraudulent alterations of the 
applicable document (i.e., 14 CFR 43.12(a)(3), 60.33(a)(3), and 
107.5(a)(2)).
    Knowingly omitting or causing to be omitted a material fact results 
when a person knew that they failed to include the material fact in the 
document at

[[Page 8562]]

issue.\5\ The prohibition of known material omissions is currently 
found in (1) 14 CFR 89.5(b)(1)-(2) and 145.12(b)(1)-(2) (knowingly 
concealing or causing to be concealed, by omission, a material fact); 
(2) 14 CFR 60.33(a)(2) and 121.9(a)(2) (known omissions); and (3) 14 
CFR 111.35(a)-(c) (concealing or causing to be concealed a material 
fact).
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    \5\ The FAA prohibited knowingly concealing or causing to be 
concealed a material fact by omission in the 2014 amendments to 14 
CFR part 145. See 14 CFR 145.12(b)(1)-(2). In the preamble of the 
final rule, the agency explained that a known omission under Sec.  
145.12(b)(1)-(2) ``is triggered when a person knew that they failed 
to include the material fact in the document at issue.'' 79 FR 46979 
(Aug. 12, 2014).
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    Misleading statements are prohibited by 14 CFR 21.2(a)(1)-(2). The 
agency previously stated that for purposes of that section, ``a 
misleading statement requires a material representation or omission 
[i.e., within the statement] that is likely to mislead a person when 
that person is acting with reasonable diligence under the 
circumstances.'' \6\
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    \6\ 74 FR 53377 (Oct. 16, 2009) (preamble of the final rule 
amending 14 CFR part 21).
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    Willful false statements are referenced in 14 CFR 413.17(c). 
Generally, for a false statement to be ``willful,'' it must be made 
deliberately and with knowledge.\7\ Section 413.17(c) adds that such 
statements are punishable under 18 U.S.C. 1001 and by administrative 
sanction in accordance with 14 CFR part 405.
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    \7\ See, generally, McClanahan v. United States, 230 F.2d 919, 
924 (5th Cir. 1956) (in a prosecution under 18 U.S.C. 1001 in 
connection with fraudulent mortgage loan applications, the judge 
appropriately instructed the jury that the word ``willful'' refers 
to a forbidden act that is done deliberately and with knowledge).
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2. Current Falsification Regulation Sanction Provisions and Locations 
in 14 CFR
    As discussed in the section of this NPRM titled ``Authority for 
this Rulemaking,'' the FAA has statutory authority to take certificate 
action or civil penalty action for falsification regulation violations. 
In many parts of 14 CFR chapter I that contain falsification 
regulations, the FAA has elected to set forth sanction consequences for 
violating a falsification regulation (i.e., 14 CFR 21.2(b); 43.12(b); 
60.33(b)-(c); 61.59(b); 63.20(b); 65.20(b); 67.403(b)-(c); 89.5(c); 
107.5(b); 121.9(b); 139.115(b); 142.11(e)(3); and 145.12(c)). Other 
falsification regulations contain no sanction provision (i.e., 14 CFR 
111.35, 120.103(e), and 120.213). The falsification regulations that 
contain sanction provisions lack consistency, as discussed in the 
``Statement of the Problem'' section of this NPRM. Section 413.17(c) of 
title 14, chapter III, provides that willful false statements are 
punishable by fine and imprisonment and could result in 
``administrative sanctions.'' \8\
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    \8\ In 14 CFR 413.17(c), willful false statements made in any 
application or document relating to an application, license, or 
permit are subject to administrative sanctions in accordance with 14 
CFR part 405. In 2001, the FAA removed the civil penalty provisions 
from part 405 and added them to part 406. The FAA, however, 
inadvertently did not amend Sec.  413.17(c) to reflect the 
recodification of the civil penalty provisions in part 406. This 
proposed rulemaking will restore the FAA's ability to assess civil 
penalties for violations of the falsification regulations in 
proposed part 402.
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C. Statement of the Problem

    The FAA implemented the first of its falsification regulations in 
1965.\9\ Since then, the agency has implemented various falsification 
regulations, most recently in 2021. The piecemeal publication of 
falsification regulations has contributed to two issues that this 
proposal seeks to remedy: (1) the type of conduct proscribed by the 
falsification regulations and prescribed sanctions referenced in the 
various falsification regulations are not consistent across the 
existing falsification regulations; and (2) many 14 CFR parts lack a 
falsification prohibition but warrant one.
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    \9\ The Civil Aeronautics Act of 1938 (Act of 1938) provided 
criminal penalties for falsification of records by ``[a]ny air 
carrier, or any officer, agent, employee, or representative thereof 
. . . .'' Act of 1938, Sec.  902(e) (1938). However, the Act of 1938 
authorized no administrative sanction for falsification, and the 
Civil Aviation Regulations (CARs) implemented under the Act of 1938 
contained no falsification regulations.
    Under the Federal Aviation Act of 1958, the Federal Aviation 
Agency issued an NPRM in 1964 acknowledging the absence of 
falsification proscriptions in its regulations. The FAA stated that 
it was ``considering amending Parts 61, 63, 65, 67, and 143 [New] of 
the Federal Aviation Regulations to prohibit cheating on FAA written 
tests, falsifying applications for airman certificates, logbooks, 
records, or reports, or unauthorized reproducing or altering 
certificates or ratings.'' 29 FR 4919 (Apr. 8, 1964). The FAA 
explained that ``it has been unable to take appropriate corrective 
action'' against those who cheat on written tests. Id. at 4920. The 
FAA continued, ``[t]his was due to the absence in the regulations of 
a specific prohibition of the conduct involved in the particular 
case. Therefore, it is proposed to adopt regulations that will 
prohibit cheating activities in connection with written tests for 
airman certificate or ratings, or the falsification of applications 
for airman certificates, logbooks, records, and reports used to show 
compliance with the requirements for the certificates or ratings, or 
unauthorized reproduction or alteration of certificates or 
ratings.'' Id. These first falsification regulations became 
effective March 20, 1965. 30 FR 2195 (Feb. 18, 1965).
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1. Inconsistencies in the Proscribed Conduct and Authorized Sanctions 
Under the Falsification Regulations
    The type of activity proscribed as falsification-related conduct 
and sanction options for such conduct are not consistent across the 
existing falsification regulations. The agency issued the earliest 
falsification regulations in title 14 chapter I between 1965 and 1978. 
The FAA directed 14 CFR 61.48 (1965), 63.20 (1965), and 65.20 (1965) at 
the conduct of individuals.\10\ These regulations generally prohibited 
individuals from making intentionally false or fraudulent statements or 
entries, reproductions for a fraudulent purpose, or alterations in 
applications or documents that are kept, made, or used to show 
compliance with a regulatory requirement specific to the part where the 
particular falsification regulation was published. The sanction 
provisions in Sec. Sec.  61.48, 63.20, and 65.20 were consistent in the 
context of sanction: Each served as a basis for the suspension or 
revocation of ``any'' airman or ground instructor certificate or 
rating.\11\
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    \10\ On February 1, 1973, the falsification regulation at 14 CFR 
61.48 was recodified at Sec.  61.59 as part of the FAA's amendments 
to parts 61 and 91. 38 FR 3168 (Feb. 1, 1973).
    \11\ Section 61.59(b) specifies ``any airman certificate, 
rating, or authorization held by that person.'' Sections 63.20(b) 
and 65.20(b) specify ``any airman or ground instructor certificate 
or rating held by that person.'' Although a ground instructor 
certificate is not an airman certificate as defined by statute or 
regulation, it is a type of authorization issued under part 61.
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    Section 67.20 (1965), amended and recodified at Sec.  67.403, 
prohibited individuals from making intentional false or fraudulent 
statements, reproductions for a fraudulent purpose, or alterations in 
connection with applications for FAA medical certification.\12\ Such 
violation conduct formed a basis for suspending or revoking ``all'' 
airman, ground instructor, and medical certificates and ratings held by 
that person. In addition, unlike the falsification regulations 
referenced in the preceding paragraph, Sec.  67.403 provided for 
certificate denials (which, in the context of part 67, involved the 
denial of an application for a medical certificate).\13\
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    \12\ The FAA issued 14 CFR 67.20 in 1965. 30 FR 2197 (Feb. 18, 
1965). On March 19, 1996, the FAA amended Sec.  67.20 and renumbered 
it as 14 CFR 67.403 as part of its revisions to airman medical 
standards and medical certification procedures. 61 FR 11238 (Mar. 
19, 1996).
    \13\ Also, Sec.  67.403(b) specified consequences that are 
unique to the medical certification process in part 67, namely, that 
falsification is a basis for denying all requests for an 
Authorization for Special Issuance of a Medical Certificate 
(Authorization) or Statement of Demonstrated Ability (SODA). Section 
67.403(b) also provides for the withdrawal of an Authorization or 
SODA as a consequence of intentional falsification, fraud, or an 
alteration.
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    The FAA issued 14 CFR 43.12 (1978) to proscribe individuals or 
entities from making fraudulent entries and reproductions and 
alterations for a

[[Page 8563]]

fraudulent purpose in documents kept, made, or used to show compliance 
with a regulatory requirement specific to part 43.\14\ In 1982, the FAA 
amended Sec.  43.12(a)(1) to include intentionally false entries.\15\ 
In contrast to Sec. Sec.  61.59, 63.20, and 65.20, sanction in the 
context of a Sec.  43.12 violation was limited to suspension or 
revocation of ``the applicable'' certificate (i.e., the certificate 
used during the commission of the violation conduct, which most 
frequently is a mechanic certificate issued under part 65.) \16\
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    \14\ 43 FR 22639 (May 25, 1978).
    \15\ 47 FR 41085 (Sept. 16, 1982).
    \16\ Section 43.12(b) specifies, ``the applicable airman, 
operator, or production certificate, Technical Standard Order 
Authorization, FAA-Parts Manufacturer Approval, or Product and 
Process Specification.''
---------------------------------------------------------------------------

    In 1992, the FAA implemented 14 CFR 21.2 to address falsification-
related conduct in the context of certification procedures for products 
and articles.\17\ The agency explained that Sec.  21.2 ``was modeled 
after similar provisions found in [Federal Aviation Regulations] parts 
43, 61, 63, 65, and 143 for certificates, authorizations, and ratings 
issued under those parts.'' \18\ Thus, Sec.  21.2 was similar to the 
predecessor falsification regulations insofar as proscribing 
intentionally false and fraudulent statements, reproductions for a 
fraudulent purpose, and alterations. In 2009, the FAA amended Sec.  
21.2(a)(1)-(2) by proscribing misleading statements.\19\ At that time, 
the FAA specified that Sec.  21.2 applied to both entities and 
individuals.\20\ Section 21.2 became inconsistent with the predecessor 
falsification regulations to the extent that it proscribed misleading 
statements while the predecessor falsification regulations did not.
---------------------------------------------------------------------------

    \17\ 57 FR 41366 (Sept. 9, 1992).
    \18\ 57 FR 41366.
    \19\ 74 FR 53368 (Oct. 16, 2009).
    \20\ In the preamble to the final rule amending the part 21 
certification procedures and adding the falsification prohibition, 
the FAA noted that the rule could apply to entities and individuals. 
See 74 FR 53381 (Oct. 16, 2009) (``This rule primarily directly 
affects all type certificate (TC) and production approval holders 
(PAHs), including holders of PCs, TSOs, and PMAs. Regional air cargo 
carriers and exporters of used aircraft and used engines, 
propellers, and other articles (primarily distributors and 
individuals) are also directly affected by this rule.'').
---------------------------------------------------------------------------

    Regarding sanction, Sec.  21.2 was consistent with the predecessor 
regulations in that it provided for the suspension or revocation of 
certificates. In addition, Sec.  21.2 also prescribed the suspension or 
revocation of approvals. The 2009 amendments to Sec.  21.2 made it 
consistent with Sec.  67.403 by including a provision specifying that 
falsification is a basis for denying issuance of any certificate or 
approval under part 21.\21\ However, the sanction in Sec.  21.2 limited 
the scope of affected certificates. While the sanction in the 
predecessor falsification regulations affected ``any'' airman or ground 
instructor certificate (Sec. Sec.  61.59, 63.20, and 65.20), or airman, 
ground instructor, and medical certificates (Sec.  67.403), 14 CFR 21.2 
limited the falsification sanction of suspension or revocation to 
certificates or approvals issued under ``this part.'' \22\
---------------------------------------------------------------------------

    \21\ 14 CFR 21.2(b)(1) (74 FR 53368).
    \22\ 14 CFR 21.2(b)(2)
---------------------------------------------------------------------------

    Inconsistencies continued to emerge in falsification regulations 
issued or amended by the agency after Sec.  21.2. For example, in 14 
CFR 142.11(e)(3) (1996), the agency deviated from prior falsification 
regulations by proscribing ``incomplete,'' ``inaccurate,'' or ``false 
information'' (and not ``intentionally false information'').\23\ 
Consistent with the limited scope of affected certificates under 
Sec. Sec.  21.2 and 43.12, but inconsistent with the broader scope 
under other predecessor falsification regulations, Sec.  142.11(e)(3) 
affected certificates issued under ``this part,'' (i.e., 14 CFR part 
142).
---------------------------------------------------------------------------

    \23\ Section 142.11(e)(3) provides: ``The Administrator may 
deny, suspend, revoke, or terminate a certificate under this part if 
the Administrator finds that the applicant or the certificate holder 
. . . (3) Has provided incomplete, inaccurate, fraudulent, or false 
information for a training center certificate . . . .''
---------------------------------------------------------------------------

    Also, in 1996, the FAA amended the falsification regulations in 14 
CFR part 67 to broaden the regulatory basis for action by proscribing 
the provision of incorrect statements or entries by an applicant or 
airman when applying for medical certification.\24\ However, the agency 
did not amend other falsification regulations that existed prior to 
1996 to add an incorrect statement or entry provision. In 2006, the FAA 
proscribed incorrect statements and entries in 14 CFR 60.33.\25\ 
Following the publication of Sec.  60.33, however, the FAA did not 
amend existing regulations to address incorrect statements and entries. 
It also did not add prohibitions against incorrect statements and 
entries in the subsequent falsification regulations in 14 CFR parts 89, 
107, 111, 121, 139, and 145.
---------------------------------------------------------------------------

    \24\ 61 FR 11251 (Mar. 19, 1996).
    \25\ 71 FR 63426 (Oct. 30, 2006).
---------------------------------------------------------------------------

    The FAA specified different sanctions in proscribing incorrect 
statements or entries in Sec. Sec.  67.403(c) and 60.33 and incomplete, 
inaccurate, and false information in Sec.  142.11(e)(3). The sanction 
in Sec.  67.403(c) limits the scope of affected certificates to the 
medical certificate, authorization, or statement of demonstrated 
ability at issue rather than ``all'' certificates as under Sec.  
67.403(b) for other falsification-related conduct under part 67. Under 
14 CFR 60.33, the sanction for an incorrect statement or entry on which 
the FAA relied is removal of Flight Simulation Training Device (FSTD) 
qualification, including the withdrawal of approval for use of an FSTD 
or denying an application for a qualification.\26\ As to the provision 
of ``incomplete,'' ``inaccurate,'' or ``false information'' referenced 
in Sec.  142.11(e)(3), the regulation authorizes the denial, 
suspension, revocation, or termination of a part 142 certificate.
---------------------------------------------------------------------------

    \26\ 14 CFR 60.33(c).
---------------------------------------------------------------------------

    In 2004, the FAA added falsification provisions to the industry 
drug and alcohol testing regulations, which, at that time, were located 
at 14 CFR part 121, appendices I and J. Effective July 13, 2009, the 
FAA's drug and alcohol testing regulations were recodified, without 
substantive change, at 14 CFR 120.103(e) and 120.213.\27\ (These 
regulations will hereinafter be referred to as Sec. Sec.  120.103(e) 
and 120.213.) Sections 120.103(e) and 120.213 are limited to 
proscribing intentional falsification and fraud, and reproductions and 
alterations for a fraudulent purpose, regarding applications for 
alcohol and drug testing programs, and reports or records required 
under those programs. These sections contain no sanction provisions.
---------------------------------------------------------------------------

    \27\ See 74 FR 22649 (May 14, 2009).
---------------------------------------------------------------------------

    The falsification proscriptions in the more recent falsification 
regulations (i.e., 14 CFR 89.5 (2021), 107.5 (2016), 111.35 (2021), 
121.9 (2013), 139.115 (2013), and 145.12 (2014)) similarly lack 
consistency in describing the scope of conduct. Sections 107.5 and 
139.115 proscribe intentional falsification, fraud, reproductions for a 
fraudulent purpose, and alterations for a fraudulent purpose. Sections 
89.5 and 145.12 contain those same proscriptions and also proscribe 
knowingly concealing or causing to be concealed, by omission, a 
material fact. Sections 111.35 and 121.9, while proscribing intentional 
falsification and fraud, do not proscribe reproductions and 
alterations. Section 111.35, similar to Sec. Sec.  89.5 and 145.12, 
proscribes concealing or causing to be concealed a material fact. 
However, Sec.  111.35 lacks the knowledge element and ``omission'' 
terminology that is present in Sec. Sec.  89.5 and 145.12. Section 
121.9 proscribes ``known omissions.''
    In the context of sanction provisions, 14 CFR 89.5, 107.5, 111.35, 
121.9, 139.115, and 145.12 are largely inconsistent. Section 111.35 
contains no sanction provision. The sanction provisions in Sec. Sec.  
89.5, 107.5, 121.9,

[[Page 8564]]

139.115, and 145.12 vary in consistency. Section 139.115 provides for 
suspension or revocation but does not provide for a civil penalty. 
Meanwhile, Sec. Sec.  89.5, 107.5, 121.9, and 145.12 authorize 
suspension or revocation, civil penalty, and denial of an 
application.\28\ Yet, the reach of suspensions, revocations, and 
denials vary among Sec. Sec.  89.5, 107.5, 121.9, 139.115, and 145.12. 
Section 107.5(b) provides for suspension or revocation of ``any 
certificate, waiver, or declaration of compliance issued or accepted by 
the Administrator under this part and held by that person . . . '' and 
the denial of any application for a remote pilot certificate or 
certificate of waiver and declaration of compliance. Section 121.9 
applies the suspension or revocation to ``any certificate held by that 
person that was issued under this chapter'' (i.e., 14 CFR parts 1-199) 
and the denial of an application for any approval under this part. 
Section 139.115(b) provides for suspension or revocation of ``any 
certificate or approval under this part and held by that certificate 
holder and any other certificate issued under this title'' (i.e., 14 
CFR) but does not provide for a denial of an application. Section 
145.12 allows the FAA to suspend or revoke ``the repair station 
certificate and any certificate, approval, or authorization issued by 
the FAA and held by that person'' and the denial of an application 
under part 145.
---------------------------------------------------------------------------

    \28\ In 2021, the FAA amended 14 CFR 107.5 to include the denial 
of a declaration of compliance as a sanction for falsification. 86 
FR 4381 (Jan. 15, 2021).
---------------------------------------------------------------------------

    In Sec.  89.5, the FAA articulated a broader approach to sanction. 
Under Sec.  89.5(c), falsification is a basis for ``[d]enial, 
suspension, rescission, or revocation of any acceptance, application, 
approval, authorization, certificate, declaration, declaration of 
compliance, designation, document, filing, qualification, means of 
compliance, record, report, request for reconsideration, or similar 
instrument granted by the Administrator and held by that person'' or a 
civil penalty.
    Regarding 14 CFR chapter III, 14 CFR 413.17(c) is the sole 
falsification regulation. It references only willful false statements 
and thus is limited in its application. It cites criminal sanctions 
under 18 U.S.C. 1001. It also provides that willful false statements 
may result in ``administrative sanctions in accordance with part 405 of 
this chapter.'' \29\ Although the removal of Sec.  413.17(c) would 
remove the reference to 18 U.S.C. 1001, this does not imply that 18 
U.S.C. 1001 is inapplicable to false statements submitted to the FAA, 
nor does it restrict the FAA's ability to refer possible criminal 
violations of 18 U.S.C. 1001 to the DOT Office of the Inspector General 
or the Department of Justice. Intentionally false statements currently 
covered by 14 CFR chapter I and the proposed 14 CFR 3.403 and 402.3 may 
still be subject to 18 U.S.C. 1001. However, FAA regulations do not 
generally refer to possible criminal consequences, and the FAA does not 
believe that the regulations should specifically mention 18 U.S.C. 
1001.
---------------------------------------------------------------------------

    \29\ See note 6, supra, regarding the removal of the civil 
penalty prescription from part 405.
---------------------------------------------------------------------------

2. Incomplete Application of the Falsification Regulations
    Many parts of 14 CFR chapter I lack a falsification regulation but 
warrant one. In the absence of such falsification regulations, the FAA 
is precluded from taking enforcement action for falsification-related 
conduct under those parts. As a result, there is no general or specific 
deterrent for those who might engage in such conduct. For example, the 
falsification regulation in part 121 applying to domestic, flag, and 
supplemental operations currently has no counterpart in part 135 
pertaining to commuter and on-demand operations despite that both parts 
authorize commercial operations. Similarly, the falsification 
regulation in part 142 applying to training centers has no counterpart 
in part 141 or part 147. Part 47, which relates to aircraft 
registration, also contains no falsification prohibition despite 
instances of falsified aircraft registration applications.
    Similarly, most of 14 CFR chapter III lacks falsification 
regulations but warrants them. In 14 CFR chapter III, only a single 
falsification regulation (i.e., Sec.  413.17(c)) exists. It addresses 
only willful false statements in the context of applications and 
documents relating to applications, licenses, or permits. Although some 
regulations in 14 CFR chapter III require licensees to ensure the 
continuing accuracy of representations contained in their application 
(i.e., Sec. Sec.  413.7(c), 414.13(d), 414.21, 414.27, 417.11, 
431.73(a), and 450.211(a)), those regulations do not provide a 
comprehensive falsification prohibition.
    Table 1 sets forth a brief history of the falsification 
regulations, including prohibitions and sanction for the year each 
regulation was implemented.\30\
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    \30\ After implementation of the falsification regulations in 14 
CFR parts 21 and 43, the FAA made the following amendments. In 1982, 
the FAA amended 14 CFR 43.12(a)(1) to include intentionally false 
entries. 47 FR 41085 (Sept. 16, 1982). In 2009, the FAA amended 14 
CFR 21.2(a)(1)-(2) by proscribing misleading statements. 74 FR 53368 
(Oct. 16, 2009). The 2009 amendments to 14 CFR 21.2 included denying 
issuance of any certificate or approval under part 21 as a sanction 
for falsification. 74 FR 53368 (Oct. 16, 2009).

                                Table 1--History of FAA Falsification Regulations
----------------------------------------------------------------------------------------------------------------
         Year               Part(s)/section(s)           Prohibited conduct                   Sanction
----------------------------------------------------------------------------------------------------------------
1965..................  61.48 (presently codified  Fraudulent or intentionally     61.59--Suspending or revoking
                         at Sec.  Sec.   61.59),    false statements and entries,   any airman certificate,
                         63.20, 65.20.              reproductions for a             rating, or authorization
                                                    fraudulent purpose, and         held by that person; 63.20,
                                                    alterations involving           65.20--Suspending or
                                                    documents and records           revoking any airman or
                                                    associated with parts 61, 63,   ground instructor
                                                    and 65, respectively.           certificate or rating held
                                                                                    by that person.
1965..................  67.20 (presently codified  Fraudulent or intentionally     (1) Suspending or revoking
                         at Sec.   67.403).         false statements and entries,   all airman, ground
                                                    fraudulent reproductions,       instructor, and medical
                                                    alterations, and incorrect      certificates and ratings
                                                    statements or entries           held by that person;
                                                    involving documents and        (2) Withdrawing all
                                                    records under part 67.          Authorizations or SODAs held
                                                                                    by that person; and
                                                                                   (3) Denying all applications
                                                                                    for medical certification
                                                                                    and requests for
                                                                                    Authorizations or SODAs. An
                                                                                    incorrect statement or entry
                                                                                    may serve as a basis for
                                                                                    suspending or revoking a
                                                                                    medical certificate;
                                                                                    withdrawing an Authorization
                                                                                    or SODA; or denying an
                                                                                    application for a medical
                                                                                    certificate or request for
                                                                                    an authorization or SODA.

[[Page 8565]]

 
1978..................  43.12....................  Fraudulent entries and          Suspending or revoking the
                                                    fraudulent reproductions and    applicable airman, operator,
                                                    alterations involving records   or production certificate,
                                                    or documents associated with    Technical Standard Order
                                                    part 43.                        Authorization, FAA-Parts
                                                                                    Manufacturer Approval, or
                                                                                    Product and Process
                                                                                    Specification issued by the
                                                                                    Administrator and held by
                                                                                    that person.
1992..................  21.2.....................  Fraudulent or intentionally     Suspending or revoking any
                                                    false statements, fraudulent    certificate or approval
                                                    reproductions, and              issued under part 21 part
                                                    alterations involving           and held by that person.
                                                    documents associated with
                                                    part 21.
1996..................  142.11(e)(3).............  Incomplete, inaccurate,         Denial, suspension,
                                                    fraudulent, or false            revocation, or termination
                                                    information associated with     of a certificate under part
                                                    training center certificates.   142.
2004..................  120.103(e) and 120.213     Fraudulent or intentionally     None.
                         (formerly 121 app. I and   false statements or entries
                         J).                        and fraudulent reproduction
                                                    or alteration involving
                                                    records and documents
                                                    associated with part 120.
2006..................  60.33....................  Fraudulent or intentionally     One or any combination of the
                                                    false statements, known         following:
                                                    omissions, fraudulent          (1) A civil penalty;
                                                    reproduction or alteration,    (2) Suspension or revocation
                                                    and incorrect statements or     of any certificate held by
                                                    entries upon which the FAA      that person that was issued
                                                    relied or could have relied     under 14 CFR chapter I;
                                                    involving records or           (3) The removal of FSTD
                                                    documents associated with       qualification and approval
                                                    part 60.                        for use in a training
                                                                                    program.
                                                                                   An incorrect statement or
                                                                                    entry, upon which the FAA
                                                                                    relied or could have relied,
                                                                                    may serve as the basis for
                                                                                    the removal of qualification
                                                                                    of an FSTD, including the
                                                                                    withdrawal of approval for
                                                                                    use of an FSTD or denying an
                                                                                    application for a
                                                                                    qualification.
2007..................  413.17(c)................  Willful false statements made   Administrative sanctions in
                                                    relating to applications,       accordance with part 405 of
                                                    licenses, and permits.          14 CFR chapter III.
2013..................  121.9....................  Fraudulent or intentionally     One or any combination of the
                                                    false statements and known      following:
                                                    omissions involving records    (1) A civil penalty;
                                                    and documents under part 121.  (2) Suspension or revocation
                                                                                    of any certificate held by
                                                                                    that person that was issued
                                                                                    under 14 CFR chapter I;
                                                                                   (3) The denial of an
                                                                                    application for any approval
                                                                                    under part 121;
                                                                                   (4) The removal of any
                                                                                    approval under part 121.
2013..................  139.115..................  Fraudulent or intentionally     Suspension or revocation of
                                                    false statements or entries     any certificate or approval
                                                    and fraudulent reproduction     issued under part 139 and
                                                    or alteration involving         held by that certificate
                                                    records or documents            holder and any other
                                                    associated with part 139.       certificate issued under 14
                                                                                    CFR and held by the person
                                                                                    committing the act.
2014..................  145.12...................  Fraudulent or intentionally     One or any combination of the
                                                    false entries, fraudulent       following:
                                                    reproduction or alteration,    (1) Suspending or revoking
                                                    and omissions of a material     the repair station
                                                    fact involving records or       certificate and any
                                                    documents associated with       certificate, approval, or
                                                    part 145.                       authorization issued by the
                                                                                    FAA and held by that person;
                                                                                   (2) A civil penalty;
                                                                                   (3) The denial of an
                                                                                    application under part 145.
2016..................  107.5....................  Fraudulent or intentionally     Any of the following:
                                                    false records or reports and   (1) Denial of an application
                                                    fraudulent reproduction or      for a remote pilot
                                                    alteration involving records    certificate or a certificate
                                                    or documents associated with    of waiver;
                                                    part 107.                      (2) Suspension or revocation
                                                                                    of any certificate, waiver,
                                                                                    or declaration of compliance
                                                                                    issued or accepted by the
                                                                                    Administrator under part 107
                                                                                    and held by that person; or
                                                                                   (3) A civil penalty.
2021..................  89.5.....................  Fraudulent or intentionally     (1) Denial, suspension,
                                                    false statements, fraudulent    rescission, or revocation of
                                                    reproduction or alteration,     any acceptance, application,
                                                    and knowingly concealing or     approval, authorization,
                                                    causing to be concealed a       certificate, declaration,
                                                    material fact involving         declaration of compliance,
                                                    records or documents            designation, document,
                                                    associated with part 89.        filing, qualification, means
                                                                                    of compliance, record,
                                                                                    report, request for
                                                                                    reconsideration, or similar
                                                                                    instrument issued or granted
                                                                                    by the Administrator and
                                                                                    held by that person; or
                                                                                   (2) A civil penalty.

[[Page 8566]]

 
2021..................  111.35...................  Fraudulent or intentionally     None.
                                                    false statements and
                                                    concealing or causing to be
                                                    concealed a material fact
                                                    involving records or
                                                    documents associated with
                                                    part 111.
----------------------------------------------------------------------------------------------------------------

D. Summary of the Costs and Benefits

    Falsification regulations promote aviation and commercial space 
safety by incentivizing participants in the National Aerospace System 
to provide accurate and truthful information in safety-related records. 
Through the proposed rule, the FAA intends to enhance aviation safety 
by standardizing the scope of conduct that the FAA intends to deter, 
proscribed by falsification regulations, across the applicable sections 
of 14 CFR parts 1 through 199 and 14 CFR parts 413 through 460 and 
extending this scope of conduct to parts that currently do not have--
but should have--falsification provisions. The proposed rule also 
intends to standardize sanction provisions for this conduct and allow 
for more consistent sanction determinations as appropriate. The FAA has 
evaluated the cost impacts to the stakeholders involved in this 
proposed rulemaking and does not anticipate any new cost impact to the 
industry or the FAA as a result of this proposed rule.
    The FAA has also determined that this proposed rule is not a 
``significant regulatory action'' as defined in section 3(f) of 
Executive Order 12866 and is not ``significant'' as defined in DOT's 
Regulatory Policies and Procedures.

II. Authority for This Rulemaking

    The FAA's authority to issue rules on 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.
    With respect to 14 CFR chapter I, this rulemaking is issued under 
49 U.S.C. 44701(a)(5), which establishes the authority of the 
Administrator to prescribe regulations and minimum standards for other 
practices, methods, and procedures the Administrator finds necessary 
for safety in air commerce and national security. It is also issued 
under 49 U.S.C. 44702-44709, which prescribe the FAA's authority to 
issue different types of certificates to various individuals and 
entities and to amend, modify, suspend, or revoke those certificates as 
appropriate. This NPRM is within the scope of these sections because it 
would establish new falsification regulations that consolidate all 
existing falsification regulations into a general rule that 
standardizes the existing falsification regulations and ensures that 
falsification-related conduct that is not, but should be, addressed by 
current regulations is covered under the general rule. This NPRM also 
falls within the scope of 49 U.S.C. 46301 since this section authorizes 
the assessment of civil penalties for noncompliance with the general 
falsification provision.
    With respect to 14 CFR chapter III, this rulemaking is issued under 
the authority described in the Commercial Space Launch Act of 1984, as 
amended and recodified at 51 U.S.C. 50901-50923 (the Act). The Act 
authorizes DOT to oversee, investigate, license, and regulate 
commercial launch and reentry activities and the operation of launch 
and reentry sites as carried out by U.S. citizens or within the United 
States. See 51 U.S.C. 50904, 50905. The Act directs the DOT to exercise 
this responsibility consistent with public health and safety, safety of 
property, and the national security and foreign policy interests of the 
United States. See 51 U.S.C. 50901. This authority has been delegated 
to the FAA's Associate Administrator for Commercial Space 
Transportation. See 14 CFR 401.3.
    The proposed regulations fall within the scope of 51 U.S.C. 50901-
50923 because they would establish comprehensive falsification 
proscriptions that currently do not exist in 14 CFR chapter III. They 
would promote the integrity of the information that the FAA relies on 
and would serve as a basis for regulatory action as appropriate, which 
is essential to the FAA's statutory responsibility to promote 
continuous improvement of commercial space activities and ensure that 
such activities are consistent with public health and safety, safety of 
property, and national security and foreign policy interests. The 
proposed rulemaking is within the scope of 51 U.S.C. 50908, since this 
section authorizes the FAA, under delegated authority from the 
Secretary of Transportation, to modify, suspend, or revoke a license 
issued or transferred under 51 U.S.C. Subtitle V, chapter 509. It is 
within the scope of 51 U.S.C. 50917 since it authorizes the FAA, under 
delegated authority from the Secretary of Transportation, to assess a 
civil penalty for a violation of chapter 509, a regulation prescribed 
under chapter 509, or any term of a license issued or transferred under 
chapter 509.

III. Discussion of the Proposal

    The FAA proposes to amend and reorganize the current falsification 
regulations to create uniform and comprehensive falsification 
regulations for the applicable parts of 14 CFR chapter I and across 14 
CFR chapter III, subchapter C. This proposed rulemaking would 
standardize the proscribed conduct and expand the proscription to the 
pertinent parts of 14 CFR chapters I and III as appropriate. It would 
also standardize sanction provisions.

A. Applicability of the Proposed Rulemaking to 14 CFR Chapter I

    The proposed rulemaking would address the lack of standardization 
in current falsification regulations across the applicable parts of 14 
CFR chapter I. In addition, the proposed rule would ensure that the 
falsification prohibition applies to the particular parts of 14 CFR 
chapter I that should have such a prohibition but currently do not. 
Under proposed Sec.  3.401, the proposed rule would apply to any person 
subject to the requirements in 14 CFR chapter I, subchapter A (except 
parts 1 and 3), subchapter C (except part 39), subchapter D, subchapter 
E (except parts 71 and 73), subchapter F (except parts 95 and 97), 
subchapter G (except part 110), subchapter H, and part 183 of 
subchapter K.
1. Application of Proposed Rule to 14 CFR Chapter I, Subchapter A 
(Except Parts 1 and 3)
    Subchapter A consists of 14 CFR parts 1, 3, and 5. The proposed 
rule would apply to 14 CFR part 5, which contains recordkeeping 
requirements regarding Safety Management Systems (SMS) that may be 
subject to falsification.\31\ The proposed rule would not apply to 14 
CFR parts 1 and 3. Part 1 contains definitions and abbreviations. Part 
3

[[Page 8567]]

currently consists of subparts A and B. Subpart A contains an 
independent falsification regulation governing statements about 
products, parts, and appliances, and materials that may be used on a 
type-certificated product and would remain unaffected by the proposed 
rule.\32\ Subpart B prescribes security threat disqualification by the 
FAA following receipt of a notification from the Transportation 
Security Administration.\33\ The proposed rule would be located in a 
new subpart D of part 3.
---------------------------------------------------------------------------

    \31\ See 14 CFR part 5, subpart F (``SMS Documentation and 
Recordkeeping''), 14 CFR 5.95 and 5.97.
    \32\ See 14 CFR 3.5 (prohibiting falsification regarding 
products, parts, and appliances).
    \33\ 14 CFR 3.200 and 3.205.
---------------------------------------------------------------------------

2. Applicability of Proposed Rule to 14 CFR, Chapter I, Subchapter C 
(Except Part 39)
    Subchapter C consists of 14 CFR parts 21, 23, 25, 26, 27, 29, 31, 
33, 34, 35, 36, 39, 43, 45, 47, 48, and 49. Existing falsification 
regulations are in 14 CFR 21.2 and 43.12. The proposed rulemaking would 
remove those sections and apply the proposed rule to parts 21 and 43. 
The proposed rule would also apply to 14 CFR parts 23, 25, 26, 27, 29, 
31, 33, 34, 35, 36 (i.e., ``airworthiness requirements'') and 14 CFR 
parts 45, 47, 48, and 49 (i.e., ``registration requirements'').
    Section 21.2 addresses falsification of information submitted under 
part 21 and the airworthiness requirements. A person seeking a 
certificate or approval, or a change thereto, under part 21 must first 
show compliance with the airworthiness requirements, as applicable.\34\ 
The person shows such compliance by, among other things, submitting 
documentation relating to airworthiness requirements to the FAA. The 
FAA reviews the documentation and determines whether the person has met 
the applicable standards before issuing or amending a certificate or 
approval under part 21. Consequently, if a person falsifies a document 
and submits it to the FAA to show compliance with the airworthiness 
requirements in the process of seeking a certificate, approval, or 
change under 14 CFR part 21, the FAA addresses the falsification under 
14 CFR 21.2. Under the proposed rulemaking, the falsification 
prohibition in subpart D of part 3 would apply directly to the 
airworthiness requirements in addition to 14 CFR part 21.
---------------------------------------------------------------------------

    \34\ Under 14 CFR part 21, the FAA issues and changes design 
approvals, production approvals, airworthiness certificates, and 
airworthiness approvals. 14 CFR 21.1(a)(1). Under 14 CFR 21.1(b)(4), 
a design approval ``means a type certificate . . . or the approved 
design under a PMA, TSO authorization, letter of TSO design 
approval, or other approved design . . . .'' The ``Airworthiness 
Standards'' (i.e., 14 CFR parts 23-36) with the exception of part 
34, (1) prescribe airworthiness standards for the issue of type 
certificates and changes to certificates and (2) require each person 
who applies under part 21 for such a certificate or change to show 
compliance with the applicable requirements of those parts. See 14 
CFR 23.2000(a), 25.1(a)-(b), 26.1(a)-(b), 27.1(a)-(b), 29.1(a) and 
(g), 31.1(a)-(b), 33.1(a)-(b), 35.1(a)-(b), and 36.1(a)-(c). Part 34 
sets forth fuel venting and exhaust emission requirements for 
turbine powered airplanes.
---------------------------------------------------------------------------

    The proposed rule would also apply to the registration requirements 
in 14 CFR parts 45, 47, 48, and 49. Parts 45, 47, 48, and 49 contain 
record requirements that may be subject to falsification. Due to the 
absence of a falsification regulation in part 47, the FAA has lacked a 
direct approach to addressing registration falsifications under that 
part. Hence, the proposed rulemaking would appropriately apply to parts 
45, 47, 48, and 49.
    The proposed rule would not apply to 14 CFR part 39 since it 
provides a legal framework for the FAA's system of airworthiness 
directives. It does not contain requirements that are subject to 
falsification.
3. Applicability of Proposed Rule to 14 CFR, Chapter I, Subchapter D
    Subchapter D (``Airmen'') consists of 14 CFR parts 60, 61, 63, 65, 
67, and 68. Existing falsification regulations are in 14 CFR 60.33, 
61.59, 63.20, 65.20, and 67.403. The proposed rulemaking would remove 
those sections and apply to parts 60, 61, 63, 65, and 67. The proposed 
rule would also apply to part 68, which does not have an existing 
falsification regulation.\35\ Part 68 requires an individual to make 
representations, provide them to the FAA, and retain required documents 
in their logbook. Since these record requirements could be subject to 
falsification, the proposed rule would apply to part 68.
---------------------------------------------------------------------------

    \35\ Part 68 requires an individual to complete a medical 
education course (Sec.  68.3) and a comprehensive medical evaluation 
(14 CFR 68.5), which includes a comprehensive medical examination 
checklist (CMEC). The individual makes required representations on 
the medical education course information (Sec. Sec.  68.3(b)(1), 
(3)-(5)), which is submitted to the FAA (Sec.  68.3(b)) and the CMEC 
(Sec.  68.7(a)(2)). Both the medical education course completion 
certificate and the CMEC must be kept in the individual's logbook. 
(Sec.  68.3(b)(1) and 61.113(i)(3)).
---------------------------------------------------------------------------

4. Applicability of Proposed Rule to 14 CFR, Chapter I, Subchapter E 
(Except Parts 71 and 73)
    Subchapter E (``Airspace'') consists of 14 CFR parts 71, 73, and 
77, none of which contain existing falsification regulations. The 
proposed rulemaking would apply only to part 77 since that part 
requires an individual to submit documentation to the FAA that could be 
subject to falsification.\36\ In contrast, parts 71 and 73 consist of 
FAA designations of airspace. Those parts are not subject to 
falsification.
---------------------------------------------------------------------------

    \36\ Part 77 establishes, among other things, ``the requirements 
to provide notice to the FAA of certain proposed construction, or 
the alteration of existing structures'' and ``[t]he process to 
petition the FAA for discretionary review of determinations, 
revisions, and extensions of determinations.'' 14 CFR 77.1(a) and 
(d). Sections 77.7, 77.9, and 77.11 describe the contents of such 
notices provided to the FAA. Following submission of the notice(s), 
``[t]he FAA will make a determination stating whether the proposed 
construction or alteration would be a hazard to air navigation, and 
will advise all known interested persons.'' 14 CFR 77.31(a).
---------------------------------------------------------------------------

5. Applicability of Proposed Rule to 14 CFR Chapter I, Subchapter F 
(Except Parts 95 and 97)
    Subchapter F (``Air Traffic and General Operating Rules'') consists 
of 14 CFR parts 89, 91, 93, 95, 97, 99, 101, 103, 105, and 107. 
Existing falsification regulations are in 14 CFR 89.5 and 107.5. The 
proposed rulemaking would remove these sections and apply the proposed 
rule to parts 89 and 107. The proposed rule would also apply to 14 CFR 
parts 91, 93, 99, 101, 103, and 105. These parts contain requirements 
for applying for certificates, waivers, and other issuances or grants 
or for keeping or making records.\37\ Since these documentary 
requirements are subject to falsification, the proposed rule would 
apply. The proposed rule would not apply to 14 CFR parts 95 and 97 
since

[[Page 8568]]

they consist of FAA airspace and procedure designations. They do not 
contain documentation requirements subject to falsification.
---------------------------------------------------------------------------

    \37\ The following are examples of such requirements.
    Part 91--Subpart K of part 91 contains requirements for 
submitting an application for management specifications (14 CFR 
91.1014) and for recordkeeping (14 CFR 91.1027). See also, 14 CFR 
91.903(b) (application for a certificate of waiver) and 91.871 
(waivers from interim compliance requirements).
    Part 93--Section 93.325 requires that ``[e]ach certificate 
holder must submit in writing, within 30 days of the end of each 
calendar quarter, the total number of commercial [Special Flight 
Rules Area] SFRA [Washington, DC Metropolitan Area Special Flight 
Rules Area] operations conducted for that quarter.'' Section 93.323 
requires a certificate holder to file a visual flight rules flight 
plan before conducting a commercial SFRA operations.
    Part 99--Section 99.9(b)(1) provides that, ``[n]o person may 
operate an aircraft into, within, or whose departure point is within 
an ADIZ unless--(1) The person files a DVFR flight plan containing 
the time and point of ADIZ penetration . . . .''
    Part 101--Part 101 specifies the required contents of a 
notification to the FAA by a person who intends to operate an 
unshielded moored balloon or kite (14 CFR 101.15) or an unmanned 
free balloon (14 CFR 101.37).
    Part 103--Section 103.3(b) requires the pilot or operator of an 
ultralight vehicle to, upon request of the Administrator, furnish 
satisfactory evidence that the vehicle is subject only to the 
provisions of part 103.
    Part 105--Section 105.15(a) requires a person requesting an 
authorization to conduct a parachute operation over or into a 
congested area to submit a notification consisting of particular 
information.
---------------------------------------------------------------------------

6. Applicability of Proposed Rule to 14 CFR Chapter I, Subchapter G 
(Except Part 110)
    Subchapter G (``Air Carriers and Operators for Compensation or 
Hire: Certification and Operations'') consists of 14 CFR parts 110, 
111, 117, 119, 120, 121, 125, 129, 133, 135, 136, 137, and 139. 
Existing falsification regulations are contained in 14 CFR 111.35, 
120.103(e), 120.213, 121.9, and 139.115. The proposed action would 
remove those sections and apply the proposed rule to parts 111, 120, 
121, and 139.
    The proposed rule would also apply to 14 CFR parts 117, 119, 125, 
129, 133, 135, 136, and 137, none of which contain an existing 
falsification regulation. Part 117 contains reporting requirements that 
may be subject to falsification, prompting the necessity for the 
application of the proposed rulemaking.\38\ Although parts 119, 121, 
125, 129, 133, 135, 136, and 137 require documents that are subject to 
falsification, only part 121 contains a falsification regulation. 
Accordingly, the proposed rulemaking would apply to those sections. The 
proposed action would not apply to 14 CFR part 110, as this part 
provides definitions only.
---------------------------------------------------------------------------

    \38\ See 14 CFR 117.11(c) (``Each certificate holder must report 
to the administrator within 10 days any flight time that exceeded 
the maximum flight time limits permitted by this section or Sec.  
117.23(b).'')
---------------------------------------------------------------------------

7. Applicability of Proposed Rule to 14 CFR Chapter I, Subchapter H
    Subchapter H (``Schools and Other Certificated Agencies'') consists 
of 14 CFR parts 141, 142, 145, and 147. Existing falsification 
regulations are in 14 CFR 142.11(e) and 145.12. The proposed action 
would remove those sections and apply the proposed rule to parts 142 
and 145. The proposed rule would also apply to parts 141 and 147 since 
these parts have documentation requirements that may be subject to 
falsification. Part 142 contains operation and certification 
requirements and a falsification regulation, yet parts 141 and 147 do 
not proscribe falsification despite containing analogous operation and 
certification requirements in the context of aviation training.
8. Applicability of Proposed Rule to 14 CFR Chapter I, Subchapter K, 
Part 183
    Subchapter K (``Administrative Regulations'') consists of 14 CFR 
parts 183, 185, 187, 189, and 193. Subchapter K contains no existing 
falsification regulations. The proposed rulemaking would apply solely 
to 14 CFR part 183 as parts 185, 187, 189, and 193 do not contain 
provisions subject to falsification.\39\ Generally, intentional 
falsification by a delegee under part 183 would likely result in the 
FAA rescinding the delegation under 49 U.S.C. 44702(d)(2).\40\ Under 
the proposed rule, the FAA would have the option of initiating an 
action against a delegee for intentional falsification, and it would be 
``a basis for . . . rescinding . . . any . . . designation.'' \41\
---------------------------------------------------------------------------

    \39\ Part 183 ``describes the requirements for designating 
private persons to act as representatives of the Administrator in 
examining, inspecting, and testing persons and aircraft for the 
purpose of issuing airman, operating, and aircraft certificates. In 
addition, this part states the privileges of those representatives 
and prescribes rules for the exercising of those privileges, as 
follows:
    (a) An individual may be designated as a representative of the 
Administrator under subparts B or C of this part.
    (b) An organization may be designated as a representative of the 
Administrator by obtaining an Organization Designation Authorization 
under subpart D of this part.'' 14 CFR 183.1(a)-(b).
    \40\ See 49 U.S.C. 44702(d)(2) (authorizing the FAA to ``rescind 
a delegation under this subsection at any time for any reason the 
Administrator considers appropriate.'').
    \41\ Sections 3.403(d)(1) and 3.405(b) of the proposed rule.
---------------------------------------------------------------------------

9. Other Subchapters of 14 CFR Chapter I to Which the Proposed Rule 
Would Not Apply
    The proposed rulemaking would not apply to 14 CFR chapter I, 
subchapters B (``Procedural Rules''); I (``Airports''); J 
(``Navigational Facilities''); and N (``War Risk Insurance''). The 
application of the proposed rule to these subchapters would constitute 
an unnecessary or unwarranted expansion of the falsification 
prohibition at this time.

B. Applicability of the Proposed Rulemaking to 14 CFR Chapter III

    The proposed rulemaking would address the lack of comprehensive 
falsification regulations across the applicable parts of 14 CFR chapter 
III by creating a new part 402, entitled ``General Requirements and 
Falsification Prohibitions.'' The proposed rule in part 402 would 
parallel the proposed rule in part 3, subpart D. It would apply to any 
person subject to the requirements in subchapter C of 14 CFR chapter 
III.
    Subchapter C (``Licensing'') consists of 14 CFR parts 413, 414, 
415, 417, 420, 431, 433, 435, 437, 440, 450, and 460. Subchapter C 
currently has one falsification regulation in subchapter C, which is 
located at 14 CFR 413.17(c) (``Continuing Accuracy of Application; 
Supplemental Information; Amendment''). The proposed rulemaking would 
remove that subparagraph and would apply the proposed rule in new part 
402 to all parts of subchapter C. Subchapter C contains myriad 
requirements and procedures in connection with licenses, approvals, 
permits, and recordkeeping, and for demonstrating financial 
responsibility. The requirements involve submission of information to 
the FAA that could be subject to falsification.\42\
---------------------------------------------------------------------------

    \42\ See requirements in 14 CFR 413.7 (an application for a 
license); 414.13 (an application for a safety approval); 415.13 
(transfer of a launch license); 417.15 and 420.61 (maintaining all 
records necessary to verify that the operator conducts its 
operations in accordance with representations contained in its 
application); 431.25 (an application for a policy review); 433.3 
(issuance of a license to operate a reentry site); 435.5 (obtaining 
policy and safety approvals concerning reentry of a reentry vehicle 
other than a reusable launch vehicle); 437.21 (obtaining an 
Experimental Permit); 440.15 (submitting to the FAA evidence of 
financial responsibility and compliance with allocation of risk 
requirements under part 440); 450.31 (obtaining a vehicle operator 
license); and 460.7 (maintaining records of crew training).
---------------------------------------------------------------------------

C. ``Statements'' in Proposed Sec. Sec.  3.403(a), 3.405(a), 402.3(a), 
and 402.5(a)

    Proposed Sec. Sec.  3.403(a), 3.405(a), 402.3(a), and 402.5(a) 
apply to ``statements.'' Over the years, the falsification regulations 
have proscribed false statements and entries.\43\ Regardless of whether 
one characterizes a particular representation as a ``statement'' or 
``entry,'' when it is intentionally false or fraudulent, it is subject 
to the falsification proscription. The elimination of the word 
``entry'' is intended to simplify the proposed rulemaking and is not 
intended to make a substantive change. The term ``statement'' 
references any information a person provides in a document. 
Accordingly, proposed Sec. Sec.  3.403(a) and 402.3(a) would provide 
that ``[n]o person may make or cause to be made any fraudulent or 
intentionally false statement'' in any of the documents described in 
proposed Sec. Sec.  3.403(a)(1)-(2) and 402.3(a)(1)-(2). Sections 
3.405(a) and 402.5(a) would provide that ``[n]o person may make or 
cause to be made a material incorrect statement'' in any of the 
documents described in Sec. Sec.  3.405(a)(1)-(2) and 402.5(a)(1)-(2).
---------------------------------------------------------------------------

    \43\ See note 1, supra.
---------------------------------------------------------------------------

D. Categories of ``Any Document in Any Format'' in Proposed Sec. Sec.  
3.403 and 3.405--14 CFR Chapter I

    The proposed rulemaking in relation to 14 CFR chapter I applies to 
``any document in any format.'' Documents ``in any format'' include 
hard copy or other tangible format (like a data plate, stamped marks on 
parts, and bar codes)

[[Page 8569]]

or electronic. The proposed rulemaking in relation to 14 CFR chapter I 
applies to two categories of documents. Proposed Sec. Sec.  
3.403(a)(1), 3.403(b)(1), 3.403(c)(1), and 3.405(a)(1) would consist of 
``[a]ny document in any format submitted under any provision referenced 
in Sec.  3.401 of [proposed subpart D of part 3], consisting of or 
related to any acceptance, application, approval, authorization, 
certificate, rating, declaration, designation, qualification, record, 
report, request for reconsideration, or similar.'' (``Category 1''). 
Table 2 contains examples of documents in Category 1.

       Table 2--Examples of Category 1 Documents--14 CFR Chapter I
------------------------------------------------------------------------
     14 CFR chapter I--documents--proposed Sec.  Sec.   3.403(a)(1),
                3.403(b)(1), 3.403(c)(1), and 3.405(a)(1)
-------------------------------------------------------------------------
          Category 1                            Examples
------------------------------------------------------------------------
Acceptance...................  Acceptance of aircraft engines and
                                propellers (Sec.   21.500); Acceptance
                                of Articles (Sec.   21.502).
Application..................  See generally, parts 61 (e.g.,
                                application for pilot certificate), 67
                                (e.g., application for a medical
                                certificate), 119 (e.g., application for
                                an Air Carrier Certificate or Operating
                                Certificate).
Approval.....................  Parts Manufacturer Approval (PMA) (Part
                                21, subpart K); Fatigue risk management
                                system (Sec.   117.7); 121.141 Airplane
                                Flight Manual (Sec.   121.141), Approval
                                procedures of training courses (Sec.
                                141.13); SMS Implementation Plan, Sec.
                                5.1.
Authorization................  Authorization for Special Issuance of a
                                Medical Certificate (Sec.   67.401);
                                Letter of Authorization (e.g., part 91);
                                Inspector Authorization (Sec.   65.95).
Certificate..................  See generally, parts 61 (e.g., private,
                                commercial airline transport pilot
                                certificates), 63 (e.g., flight engineer
                                certificate), 67 (e.g., medical
                                certificate),145 (e.g., repair station
                                certificate).
Rating.......................  Instrument rating (Sec.   61.65).
Declaration..................  Declaration of compliance (Sec.
                                89.535).
Designation..................  Kinds of Designations (part 183, subpart
                                C).
Qualification................  Flight Simulator Training Device
                                qualification (Sec.   60.4).
Record.......................  Maintenance records (e.g., part 43);
                                Pilot School Training Records (Sec.
                                141.101); Voting Trust Agreement and
                                Affidavit (Sec.   47.8).
Report.......................  Safety analysis (Sec.   33.75);
                                Comprehensive Medical Examination
                                Checklist (Sec.   68.7).
Request for reconsideration..  Request for reconsideration (Sec.  Sec.
                                67.407(c) and 67.409(a)).
Or similar...................  Operations specifications (part 119);
                                Product and Process specifications;
                                Program Registrations (part 120);
                                Waivers (e.g., part 107); Exemptions
                                (e.g., part 139); Special Flight Permits
                                (Sec.   21.197); Graduation Certificate
                                (Sec.   141.95).
------------------------------------------------------------------------

    Proposed Sec. Sec.  3.403(a)(2), 3.403(b)(2), 3.403(c)(2), and 
3.405(a)(2) would consist of, ``[a]ny document in any format that is 
kept, made, or used to show compliance with any requirement under the 
provisions referenced in Sec.  3.401 of this subpart'' (``Category 
2'').
1. Scope of Category 1 in Proposed Sec. Sec.  3.403(a)(1), 3.403(b)(1), 
3.403(c)(1), and 3.405(a)(1)
    The Category 1 documents in proposed Sec. Sec.  3.403(a)(1), 
3.403(b)(1), 3.403(c)(1), and 3.405(a)(1) may consist of an 
application, declaration, record, report, request for reconsideration, 
or similar, that a person submits to the FAA or a designee. The 
Category 1 documents that a person submits to the FAA or a designee may 
also be related to an acceptance, approval, authorization, certificate, 
rating, designation, qualification, or similar. For example, the FAA 
may request an airman seeking a medical certificate under part 67 to 
submit additional medical records related to qualification requirements 
under Sec.  67.413. The ``related to'' language in the proposed rule 
would cover falsifications of the additional medical records. In either 
case, the intent of the proposed rule is to ensure that information the 
FAA is authorized to receive under statute and regulation in connection 
with the listed items is covered.
2. Scope of Category 2 in Proposed Sections 3.403(a)(2), 3.403(b)(2), 
3.403(c)(2), and 3.405(a)(2)
    The Category 2 documents in proposed Sec. Sec.  3.403(a)(2), 
3.403(b)(2), 3.403(c)(2), and 3.405(a)(2) are consistent with the 
familiar prescription, ``made, kept, or used, to show compliance with 
any requirement,'' that is nearly ubiquitous in the falsification 
regulations.\44\ Category 2 documents may include, for example, pilot 
logbook records and aircraft maintenance records. Such records are 
kept, made, or used to show compliance with applicable regulatory 
requirements. In contrast to Category 1 documents, Category 2 documents 
are not necessarily submitted to the FAA. Proposed Sec. Sec.  
3.403(a)(2), 3.403(b)(2), 3.403(c)(2), and 3.405(a)(2) would not 
include the words ``developed'' or ``provided,'' which is terminology 
used in 14 CFR 89.5(a)(2) and (b)(2). These terms are redundant of the 
terms ``made, kept, or used'' in the proposed rulemaking. Their removal 
is not intended to narrow the scope of documents subject to the 
proposed rulemaking.
---------------------------------------------------------------------------

    \44\ See 14 CFR 21.2(a)(2), 43.12(a)(1), 60.33(a)(2), 
61.59(a)(2), 63.20(a)(2), 65.20(a)(2), 67.403(a)(2); 107.5(a)(1); 
139.115(a)(2), 145.12(a)(1)(i); see also, 14 CFR 
89.5(a)(2)(``developed, provided, kept, or used''); 111.35(c), 
120.103(e)(2), 120.213(b) (``kept, made, or used), and 121.9(a)(2) 
(``kept, made, or used'').
---------------------------------------------------------------------------

    Consistent with many existing falsification regulations, Category 2 
would not condition the applicability of the falsification prohibition 
on a requirement that the ``document in any format'' be kept, made, or 
used to show compliance. This approach reflects the FAA's position in 
the 2014 amendments to part 145. In that rule, the FAA eliminated the 
phrase ``required to be'' with regard to any record or report made, 
kept, or used to show compliance. The FAA did so ``to forestall an 
argument a falsifier could make that, although the falsification 
occurred in a record or report that was made, kept, or used to show 
compliance, it was not a record or report that was required by a 
regulation to be made or kept.'' \45\ The NTSB had already rejected 
that argument in addressing a violation of 14 CFR 43.12,\46\ noting 
that

[[Page 8570]]

the phrase should not be restricted to mean ``required'' by the FAA 
Administrator because the term can also be broadly construed to mean 
required by the circumstances for which compliance is sought or 
necessary.\47\ The elimination of the phrase ``required to be'' is 
consistent with the falsification regulations that do not contain that 
phrase.\48\
---------------------------------------------------------------------------

    \45\ 79 FR 46980 (Aug. 12, 2014).
    \46\ Adm'r v. Anderson, NTSB No. EA-4564, 1997 WL 355350 at *2 
(June 26, 1997) (agreeing with the FAA's ``clearly reasonable 
position that the regulation reaches falsifications in any 
maintenance documents actually kept or used to show compliance with 
a requirement in part 43, whether or not they are records in a form 
or format the Administrator specifically requires an individual to 
use or keep for that purpose'').
    \47\ Anderson, NTSB No. EA-4564 at *3.
    \48\ See 14 CFR 21.2(a)(2), 60.33(a)(2), 67.403(a)(2), 
111.35(c), 120.103(e)(2), 120.213(b), 121.9(a)(2), 145.12(a)(1)(i) 
and (b)(2).
---------------------------------------------------------------------------

E. Categories of ``Any Document In Any Format'' in Proposed Sec. Sec.  
402.3 and 402.5--14 CFR Chapter III

    The proposed rulemaking in relation to 14 CFR chapter III, applies 
to two categories of ``any document in any format,'' as that 
terminology is defined in Section C. Proposed Sec. Sec.  402.3(a)(1), 
402.3(b)(1), 402.3(c)(1), and 402.5(a)(1) would consist of ``[a]ny 
document in any format submitted under any provision referenced in 
Sec.  402.1 of [part 402], consisting of or related to any acceptance, 
application, approval, authorization, permit, license, waiver, record, 
report, or similar,'' (``Category 1''). Table 4 contains examples of 
documents in Category 1.

      Table 3--Examples of Category 1 Documents--14 CFR Chapter III
------------------------------------------------------------------------
     14 CFR Chapter I--Documents--Proposed Sec.  Sec.   402.3(a)(1),
                402.3(b)(1), 402.3(c)(1), and 402.5(a)(1)
-------------------------------------------------------------------------
          Category 1                            Examples
------------------------------------------------------------------------
Acceptance...................  Acceptance of an application (Sec.
                                413.11); Acceptance of a means of
                                compliance (Sec.   450.35).
Application..................  Application submission (Sec.   413.7).
Approval.....................  Safety Element Approval (part 414);
                                Policy Approval (Sec.   450.41).
Authorization................  Certificate of Waiver or Authorization
                                (Sec.   437.71(d)(2)); Authorization to
                                conduct reusable launch vehicle missions
                                (Sec.   431.3(a)).
Permit.......................  Experimental Permit (part 437).
License......................  License Application Procedures (part
                                413); Launch License (part 415); Launch
                                and Reentry of a Reusable Launch Vehicle
                                (part 431); License to Operate a Reentry
                                Site (part 433); Reentry of a Reentry
                                Vehicle Other Than A Reusable Launch
                                Vehicle (part 435); License to Operate a
                                Launch Site (part 420); Launch and
                                Reentry License Requirements (part 450).
Waiver.......................  Filing a petition for waiver (14 CFR
                                404.5).
Record.......................  Records under 14 CFR Sec.  Sec.   417.15,
                                431.77, 437.87, and 450.219.
Report.......................  Reusable launch vehicle mission reporting
                                requirements (Sec.   431.79); Anomaly
                                reporting (Sec.   437.73); Mishap plan-
                                reporting, response, and investigation
                                requirements (Sec.   450.173); Pre-
                                flight reporting (Sec.   450.213); Post-
                                flight reporting (Sec.   450.215).
Or similar...................  Demonstration of Financial Responsibility
                                and Compliance with Allocation of Risk
                                Requirements Under part 440; Payload
                                Determination (part 415); Demonstration
                                of Compliance (Sec.   440.15).
------------------------------------------------------------------------

    Proposed Sec. Sec.  402.3(a)(2), 402.3(b)(2), 402.3(c)(2), and 
402.5(a)(2) would consist of, ``[a]ny document in any format that is 
kept, made, or used to show compliance with any requirement under the 
provisions referenced in Sec.  402.1 of [part 402]'' (``Category 2'').
1. Scope of Category 1 in Proposed Sections 402.3(a)(1), 402.3(b)(1), 
402.3(c)(1), and 402.5(a)(1)
    Category 1 documents in proposed Sec. Sec.  402.3(a)(1), 
402.3(b)(1), 402.3(c)(1), and 402.5(a)(1) consist of the listed items 
(i.e., ``acceptance, application . . .'') or documents that are related 
to them. Listed items in these sections are specific to 14 CFR chapter 
III, subchapter C, and necessarily vary from the listed items in the 
proposed rulemaking as it applies to 14 CFR chapter I since these items 
are in the context of commercial space.
2. Scope of Category 2 in Proposed Sec. Sec.  402.3(a)(2), 402.3(b)(2), 
402.3(c)(2), and 402.5(a)(2)
    Category 2 documents in proposed Sec. Sec.  402.3(a)(2), 
402.3(b)(2), 402.3(c)(2), and 402.5(a)(2) are modeled upon, and 
consistent with, the terminology in Category 2 in the proposed rule as 
it applies to 14 CFR chapter I, albeit applicable to commercial space.

F. Fraudulent or Intentionally False Statements or Entries in Proposed 
Sec. Sec.  3.403(a) and 402.3(a)

    Proposed Sec. Sec.  3.403(a) and 402.3(a) would prohibit fraudulent 
or intentionally false statements in the Category 1 and 2 documents 
described in Sections D and E of the ``Discussion of the Proposal'' 
section of this NPRM. Both fraud and intentional falsification have 
clear and long-standing definitions established in precedent. The 
elements of fraud and intentional falsification are defined in Section 
I. B. ``Background'' of this NPRM. The FAA would not deviate from these 
established definitions of fraud and intentional falsification in the 
proposed rule.

G. Production, Reproduction, Alteration, for Fraudulent Purpose in 
Proposed Sec. Sec.  3.403(b) and 402.3(b)

    Proposed Sec. Sec.  3.403(b) and 402.3(b) prohibit any production, 
reproduction, or alteration for a fraudulent purpose of the Category 1 
and 2 documents described in Sections D and E of the ``Discussion of 
the Proposal'' section of this NPRM. Reproductions for a fraudulent 
purpose and alterations, including alterations for a fraudulent 
purpose, are proscribed in various falsification regulations.\49\ While 
some of these regulations prohibit any alteration of the applicable 
document (i.e., 14 CFR 21.2(a)(4), 61.59(a)(4), 65.20(a)(4), and 
67.403(a)(4)), others prohibit only fraudulent alterations of the 
applicable document (i.e., 14 CFR 43.12(a)(3), 60.33(a)(3), 
107.5(a)(2), and 145.12(a)(3)).
---------------------------------------------------------------------------

    \49\ Such prohibitions are found at 14 CFR 21.2(a)(3)-(4), 
43.12(a)(2)-(3), 60.33(a)(3), 61.59(a)(3)-(4), 63.20(a)(3)-(4), 
65.20(a)(3)-(4), 67.403(a)(3)-(4), 89.5(a)(3), 107.5(a)(2), 
120.103(e)(3), 121.9(a)(2), 139.115(a)(3)-(4), and 145.12(a)(2)-(3). 
A ``fraudulent purpose'' consists of the three elements of an 
intentional false statement plus an intent to deceive. See Adm'r v. 
Coomber, NTSB Order No. EA-4283 (1994). It does not require action 
taken in reliance. See id.
---------------------------------------------------------------------------

    Proposed Sec. Sec.  3.403(b) and 402.3(b) would standardize this 
prohibition to those reproductions and alterations that are for a 
fraudulent purpose. These proposed sections would also prohibit a 
``production'' for a fraudulent purpose

[[Page 8571]]

of the Category 1 or 2 documents. This provision is meant to capture 
those instances where an individual or entity creates a document, such 
as a certificate or authorization, rather than altering an authentic 
existing document. In that case, the false document would be neither a 
reproduction nor an alteration. In the context of 14 CFR chapter I, 
this provision would apply, for example, to persons that create a 
certificate (e.g., an airman certificate or an airworthiness 
certificate) for a fraudulent purpose.

H. Knowingly Omitting or Causing To Be Omitted a Material Fact Under 
Proposed Sec. Sec.  3.403(c) and 402.3(c)

    Proposed Sec. Sec.  3.403(c) and 402.3(c) would prohibit a person 
from knowingly omitting, or causing to be omitted, a material fact in 
the Category 1 or 2 documents described in Sections D and E under the 
``Discussion of the Proposal'' in this NPRM. These proposed sections 
would correct inconsistencies in the ``omission'' prohibitions in the 
falsification regulations.
    The falsification regulations that address omissions do so 
inconsistently by prohibiting (1) ``knowingly concealing or causing to 
be concealed, by omission, a material fact'' (14 CFR 89.5(b)(1)-(2) and 
145.12(b)(1)-(2)); (2) ``concealing or causing to be concealed a 
material fact'' (14 CFR 111.35(a)-(c)); and (3) ``known omissions'' (14 
CFR 60.33(a)(2) and 121.9(a)(2)). The ``concealment'' terminology is 
unnecessary. When the FAA amended 14 CFR part 145 in 2014, it explained 
that a knowing concealment of a material fact is triggered when a 
person knew that they failed to include the material fact in the 
document at issue.\50\ Whether a person knowingly conceals a material 
fact by an omission or knowingly omits a material fact, the result is 
the same: the person knew that they omitted a material fact.\51\ The 
``known omission'' prohibition in 14 CFR 60.33 and 121.9 lacks a 
materiality element. Regarding Sec.  60.33, the FAA previously stated 
that it had ``added the word `material' to the phrase `known omission' 
to clarify that only important, known omissions (i.e., from a statement 
or writing) would constitute a violation'' on par with a fraudulent or 
intentionally false statement or entry.\52\ A knowing omission of a 
material fact can have a detrimental impact on aviation and public 
safety to the same degree as an affirmative falsification. Accordingly, 
the FAA would incorporate this prohibition into the proposed rulemaking 
for 14 CFR chapter I and chapter III.
---------------------------------------------------------------------------

    \50\ See 79 FR 46971 (Aug. 12, 2014).
    \51\ See id.
    \52\ See 71 FR 63422 (Oct. 30, 2006). Although the FAA stated 
that it was adding ``material'' to ``known omissions,'' it appears 
that this change was never incorporated into the regulatory text.
---------------------------------------------------------------------------

I. Sanction Under Proposed Sec. Sec.  3.403(d) and 402.3(d) for Conduct 
Described in Sections F, G, and H of This NPRM

    Proposed Sec. Sec.  3.403(d) and 402.3(d) would contain the 
sanction provision respectively applicable to violations of proposed 
Sec. Sec.  3.403(a)-(c) and 402.3(a)-(c). It would provide for two 
categories of sanction: (1) FAA actions (i.e., denial, suspension, 
modification, revocation, recension, removal, or withdrawal) involving 
any issuance or grant by the Administrator under 14 CFR chapter I or 
III; or (2) a civil penalty. Consistent with longstanding FAA sanction 
policy, the termination of an FAA issuance or grant of the type of item 
referenced in the proposed rule, such as a certificate revocation, 
remains the appropriate consequence for violating proposed Sec. Sec.  
3.403(a)-(c) and 402.3(a)-(c).\53\ Such violations seriously impact the 
integrity of the records on which the FAA's safety oversight depends. 
If the reliability of these records is undermined, the FAA's ability to 
promote aviation and public safety is compromised.
---------------------------------------------------------------------------

    \53\ See FAA Order 2150.3C, chap. 9, para. 8.
---------------------------------------------------------------------------

    Some of the current falsification regulations limit the scope of 
sanction to items issued under the part where the falsification 
regulation is located. For instance, Sec.  21.2(a)(2) limits the 
suspension or revocation of any certificate or approval issued under 
part 21. Proposed Sec. Sec.  3.403(d) and 402.3(d) would generally 
allow for the extension of those consequences to any issuance or grant 
by the FAA and held by the falsifier. This is consistent with FAA 
sanction guidance, which provides that violation of the falsification 
regulations is an offense that generally warrants the revocation of all 
certificates held by the certificate holder if allowed by the scope of 
the regulation.\54\ This proposal ensures that such consequences are 
not limited to certificates and extend to any issuance or grant the 
falsifier holds.
---------------------------------------------------------------------------

    \54\ See Order 2150.3C, chap. 9, para. 8.a.(2)(i)-(ii), which 
states:
    (i) Not only is revocation appropriate for conduct demonstrating 
a lack of care, judgment, or responsibility, the scope of the 
certificates affected by the revocation generally includes all 
certificates held regardless of which certificate (if any) was used 
at the time of the conduct.
    * * * * *
    (ii) For certain violations demonstrating a lack of care, 
judgment, or responsibility, the scope of certificates affected is 
dictated by statute or regulation. For example, the scope of 
certificates affected by making a fraudulent or intentional false 
statement on an application for an airman medical certificate in 
violation of 14 CFR 67.403 is broad; this regulation provides a 
basis to revoke all airman (including medical) and ground instructor 
certificates. Further, an intentional falsification on an 
application for a certificate issued under 14 CFR part 61 is a basis 
for revoking any airman certificate, rating, or authorization.
---------------------------------------------------------------------------

    Under proposed Sec. Sec.  3.403(d)(2) and 402.3(d)(2), the 
proscribed conduct may in certain circumstances warrant imposition of a 
civil penalty against an individual or entity, either in addition to or 
in combination with an action against a certificate, license, or other 
issuance or grant. For example, a civil penalty may be appropriate for 
uncertificated persons that commit a falsification. The appropriate 
sanction or combination of sanctions is within the prosecutorial 
discretion of the FAA in accordance with agency sanction guidance 
policy in publicly available FAA Order 2150.3C, as amended.

J. Incorrect Statements, or Omissions Under Proposed Sec. Sec.  3.405 
and 402.5

    Proposed Sec. Sec.  3.405(a)(1)-(2) and 402.5(a)(1)-(2) would 
prohibit persons from making or causing to be made a material incorrect 
statement or omitting or causing to be omitted a material fact, in the 
Category 1 or 2 documents described in Sections D and E under the 
``Discussion of the Proposal'' in this NPRM. Currently, incorrect 
statements or entries upon which the FAA relied may serve as a basis 
for an FAA action under 14 CFR 60.33(c)(1)-(2) (e.g., removal of a 
qualification) and 67.403(c)(1)-(2) (e.g., revocation of a medical 
certificate). Proposed Sec. Sec.  3.405(a)(1)-(2) and 402.5(a)(1)-(2) 
would prohibit material incorrect statements or entries without 
prescribing reliance by the FAA. Material incorrect statements or 
entries, i.e., incorrect statements or entries that are capable of 
influencing an agency decision, may have an adverse impact on safety 
under 14 CFR chapters I and III. Proposed Sec. Sec.  3.405(a)(1)-(2) 
and 402.5(a)(1)-(2) would provide a basis for appropriate action, as 
explained in Section K. below, when a person unknowingly provides 
material incorrect information, whether or not the FAA relied upon it.
    Proposed Sec. Sec.  3.405(a)(1)-(2) and 402.5(a)(1)-(2) would also 
prohibit omissions of material facts from the Category 1 or 2 documents 
described in Sections D and E under the ``Discussion of the Proposal'' 
in this NPRM. Those proposed sections would apply to unknowing 
omissions of material fact, in contrast to the proscription of knowing 
omissions of material fact in proposed Sec. Sec.  3.403(c)(1)-(2) and

[[Page 8572]]

402.3(c)(1)-(2). An unknowing omission of a material fact can have a 
detrimental impact on aviation and public safety to the same degree as 
a knowing omission of material fact. Accordingly, the FAA would 
incorporate this prohibition into the proposed rulemaking for 14 CFR 
chapter I and chapter III.
    Proposed Sec.  3.405(a)(1)-(2) would ensure coverage of the scope 
of prohibited conduct in 14 CFR 142.11(e)(3) that deviated from prior 
falsification regulations (i.e., ``incomplete,'' ``inaccurate,'' or 
``false information'' (and not ``intentionally false information'')).'' 
\55\ Proposed Sec.  3.405(a)(1)-(2) would cover (1) ``incomplete'' 
information submitted under 14 CFR 142.11(e)(3) as an omission of a 
material fact (so long as the person unknowingly omitted it), and (2) 
``inaccurate'' and unintentionally ``false'' information submitted 
under 14 CFR 142.11(e)(3) as a material incorrect statement or 
entry.\56\
---------------------------------------------------------------------------

    \55\ 14 CFR 142.11(e)(3).
    \56\ Proposed Sec.  3.403(a)-(c) would cover ``fraudulent'' or 
(intentionally) ``false'' information submitted under 14 CFR 
142.11(e)(3).
---------------------------------------------------------------------------

    Proposed Sec.  3.405(a)(1)-(2) would create consistency by 
expanding the prohibition to the parts of 14 CFR chapter I that contain 
falsification regulations but do not currently prohibit such conduct, 
and to the applicable parts of 14 CFR chapter I generally, which are 
referenced in proposed Sec.  3.401.\57\
---------------------------------------------------------------------------

    \57\ The falsification regulations that prohibit incorrect 
statements or entries are 14 CFR 60.33(c) and 67.403(c). Those that 
do not are 14 CFR 21.2, 43.12, 61.59, 63.20, 65.20, 120.103(e), 
120.213, 121.9, 139.115, 142.11(e)(3), and 145.12.
---------------------------------------------------------------------------

K. Sanction Under Proposed Sec. Sec.  3.405(b) and 402.5(b) for 
Incorrect Statements, or Omissions

    Proposed Sec. Sec.  3.405(b) and 402.5(b) would permit the agency 
to deny, suspend, modify, revoke, rescind, remove, or withdraw any 
issuance or grant by the Administrator under 14 CFR chapter I or III 
for conduct described in Section J of the ``Discussion of the 
Proposal'' in this NPRM. The intent behind proposed Sec. Sec.  3.405(b) 
and 402.5(b) would not be punitive, but rather remedial and preventive 
in an effort to cure unintended defects in documents under proposed 
Sec. Sec.  3.403, 3.405, 402.3, and 402.5. A material incorrect 
statement or entry, or omission of a material fact, generally warrants 
an action against the issuance or grant in response to the document(s) 
containing an incorrect statement, entry, or omission. For example, 
generally, the appropriate sanction for an incorrect statement on an 
application for an airman medical certificate is revocation of that 
certificate. The individual impacted would then be able to submit a new 
corrected application. Proposed Sec. Sec.  3.405(b) and 402.5(b) do not 
require the FAA to take action against a person for an incorrect 
statement, entry, or omission of material fact. The FAA would use its 
prosecutorial discretion to determine whether such action was 
appropriate based on the totality of the circumstances of a particular 
case.

IV. Regulatory Notices and Analyses

    Federal agencies consider impacts of regulatory actions under a 
variety of executive orders and other requirements. First, Executive 
Order 12866 and Executive Order 13563, as amended by Executive Order 
14094 (``Modernizing Regulatory Review''), direct that each Federal 
agency shall propose or adopt a regulation only upon a reasoned 
determination that the benefits of the intended regulation justify the 
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. Fourth, the 
Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) requires agencies 
to prepare a written assessment of the costs, benefits, and other 
effects of proposed or final rules that include a Federal mandate that 
may result in the expenditure by State, local, and tribal governments, 
in the aggregate, or by the private sector, of $100 million or more 
(adjusted annually for inflation) in any one year. The current 
threshold after adjustment for inflation is $177 million using the most 
current (2022) Implicit Price Deflator for the Gross Domestic Product. 
This portion of the preamble summarizes the FAA's analysis of the 
economic impacts of this rule.
    In conducting these analyses, the FAA has determined that this 
proposed rule: is not a ``significant regulatory action'' as defined in 
section 3(f) of Executive Order 12866; will not have a significant 
economic impact on a substantial number of small entities; will not 
create unnecessary obstacles to the foreign commerce of the United 
States; and will not impose an unfunded mandate on State, local, or 
tribal governments, or on the private sector.
Regulatory Evaluation
1. Need for the Regulation
    Falsification regulations promote aviation and commercial space 
safety by incentivizing the provision of accurate and truthful 
information to the FAA. Through the proposed rule, the FAA intends to 
enhance aviation safety by standardizing the scope of conduct 
proscribed by falsification regulations that the FAA intends to deter 
across the applicable sections of 14 CFR parts 1 through 199 and 14 CFR 
parts 413 through 460 and extending this scope of conduct to the 
requirements of 14 CFR parts 1 through 199 and 14 CFR parts 413 through 
460 that currently do not have--but should have--falsification 
provisions. The proposed rule would also standardize sanction 
provisions for this conduct and allow for more consistent sanction 
determinations as appropriate.
2. Benefits
    The proposed rulemaking would benefit the safety of the public by 
ensuring that information made, kept, or used to show compliance with 
regulatory requirements or provided to the FAA is accurate and 
complete. The proposed rulemaking also benefits private industry by 
standardizing sanction provisions and providing consistent sanction 
determinations. Additional benefits to private industry include a more 
reliable aviation system that contains less risk and requires less 
mitigation and corrective action to address situations where a person 
has falsified a document.
3. Costs
    The FAA has evaluated the cost impacts to the stakeholders involved 
in this proposed rulemaking and does not anticipate any new cost impact 
to industry and the FAA as a result of this proposed rule.
4. Regulatory Alternatives
    The FAA considered no action as an alternative to this proposed 
rulemaking. However, taking no action would not achieve the needed 
harmonization and consolidation of the falsification regulations and 
standardization of the scope of conduct proscribed by falsification 
regulations.
    The FAA has, therefore, determined that this proposed rule would 
have no new costs but positive benefits and does not warrant a full 
regulatory evaluation. The FAA has also determined that this proposed 
rule is not a ``significant regulatory action'' as defined in section 
3(f) of Executive Order 12866 and is not

[[Page 8573]]

``significant'' as defined in DOT's Regulatory Policies and Procedures.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980, Public Law 96-354, 94 Stat. 
1164 (5 U.S.C. 601-612), as amended by the Small Business Regulatory 
Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 857, Mar. 
29, 1996) and the Small Business Jobs Act of 2010 (Pub. L. 111-240, 124 
Stat. 2504 Sept. 27, 2010), requires Federal agencies to consider the 
effects of the regulatory action on small businesses and other small 
entities and to minimize any significant economic impact. The term 
``small entities'' comprises small businesses and not-for-profit 
organizations that are independently owned and operated and are not 
dominant in their fields and governmental jurisdictions with 
populations of less than 50,000.
    The FAA has not identified any small entities that would be 
affected by the proposed rule because this proposed standardization of 
the scope of conduct proscribed by falsification regulations does not 
add any new costs to regulated entities. Therefore, the FAA certifies 
that the proposed rule will not have a significant economic impact on 
small entities. The FAA welcomes comments on the basis for this 
certification.

C. International Trade Impact Assessment

    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 
determined that this proposed rule is not considered an unnecessary 
obstacle to trade.
    The FAA has assessed the potential effect of this proposed rule and 
determined that it ensures the safety of the American public and does 
not exclude imports that meet this objective. As a result, the FAA does 
not consider this proposed rule as creating an unnecessary obstacle to 
foreign commerce.

D. Unfunded Mandates Assessment

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
governs the issuance of Federal regulations that require unfunded 
mandates. An unfunded mandate is a regulation that requires a State, 
local, or tribal government or the private sector to incur direct costs 
without the Federal government having first provided the funds to pay 
those costs. The FAA determined that the proposed rule will not result 
in the expenditure of $177 million or more by State, local, or tribal 
governments, in the aggregate, or the private sector, in any one year.
    This proposed rule does not contain such a mandate; therefore, the 
requirements of title II of the Act do not apply.

E. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the FAA consider the impact of paperwork and other information 
collection burdens imposed on the public. The FAA has determined that 
there would be no new requirement for information collection associated 
with this proposed rule.

F. 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 
determined that there are no ICAO Standards and Recommended Practices 
that correspond to these proposed regulations.

G. Environmental Analysis

    FAA Order 1050.1F 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 5-6.6(f) for regulations and involves 
no extraordinary circumstances.

V. Executive Order Determinations

A. Executive Order 13132, Federalism

    The FAA has analyzed this proposed rule under the principles and 
criteria of Executive Order (E.O.) 13132, Federalism. The FAA has 
determined that this action would 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, therefore, would not have 
federalism implications.

B. Executive Order 13175, Consultation and Coordination With Indian 
Tribal Governments

    Consistent with Executive Order 13175, Consultation and 
Coordination with Indian Tribal Governments, and FAA Order 1210.20, 
American Indian and Alaska Native Tribal Consultation Policy and 
Procedures, the FAA ensures that Federally Recognized Tribes (Tribes) 
are given the opportunity to provide meaningful and timely input 
regarding proposed Federal actions that have the potential to affect 
uniquely or significantly their respective Tribes. At this point, the 
FAA has not identified any unique or significant effects, environmental 
or otherwise, on tribes resulting from this proposed rule.

C. Executive Order 13211, Regulations That Significantly Affect Energy 
Supply, Distribution, or Use

    The FAA analyzed this proposed 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 
would not be a ``significant energy action'' under the executive order 
and would not be likely to have a significant adverse effect on the 
supply, distribution, or use of energy.

D. Executive Order 13609, Promoting International Regulatory 
Cooperation

    Executive Order 13609, Promoting International Regulatory 
Cooperation, promotes international regulatory cooperation to meet 
shared challenges involving health, safety, labor, security, 
environmental, and other issues and to reduce, eliminate, or prevent 
unnecessary differences in regulatory requirements. The FAA has 
analyzed this proposed action under the policies and agency 
responsibilities of E.O. 13609 and has determined that this proposed 
action would have no effect on international regulatory cooperation.

VI. Additional Information

A. Comments Invited

    The FAA invites interested persons to participate in this 
rulemaking by submitting written comments, data, or views. The FAA also 
invites comments relating to the economic, environmental, energy, or 
federalism impacts that might

[[Page 8574]]

result from adopting the proposals in this document. The most helpful 
comments reference a specific portion of the proposal, explain the 
reason for any recommended change, and include supporting data. To 
ensure the docket does not contain duplicate comments, commenters 
should submit only one time if comments are filed electronically or 
commenters should send only one copy of written comments if comments 
are filed in writing.
    The FAA will file in the docket all comments it receives, as well 
as a report summarizing each substantive public contact with FAA 
personnel concerning this proposed rulemaking. Before acting on this 
proposal, the FAA will consider all comments it receives on or before 
the closing date for comments. The FAA will consider comments filed 
after the comment period has closed if it is possible to do so without 
incurring expense or delay. The FAA may change this proposal in light 
of the comments it receives.
    Proprietary or Confidential Business Information: Do not file 
proprietary or confidential business information in the docket. Such 
information must be sent or delivered directly to the person identified 
in the FOR FURTHER INFORMATION CONTACT section of this document and 
marked as proprietary or confidential. If submitting information on a 
disk or CD ROM, mark the outside of the disk or CD ROM, and identify 
electronically within the disk or CD ROM the specific information that 
is proprietary or confidential.
    Under Sec.  11.35(b), if the FAA is aware of proprietary 
information filed with a comment, the agency does not place it in the 
docket. It is held in a separate file to which the public does not have 
access, and the FAA places a note in the docket that it has received 
it. If the FAA receives a request to examine or copy this information, 
it treats it as any other request under the Freedom of Information Act 
(5 U.S.C. 552). The FAA processes such a request under Department of 
Transportation procedures found in 49 CFR part 7.

B. Availability of Rulemaking Documents

    An electronic copy of a rulemaking document may be obtained by 
using the internet--
    1. Search the Federal eRulemaking Portal (www.regulations.gov);
    2. Visit the FAA's Regulations and Policies web page at 
www.faa.gov/regulations_policies/; or
    3. Access the Government Printing Office's web page at 
www.GovInfo.gov.
    Copies may also be obtained by sending a request (identified by 
notice or docket number of this rulemaking) to the Federal Aviation 
Administration, Office of Rulemaking, ARM-1, 800 Independence Avenue 
SW, Washington, DC 20591, or by calling (202) 267-9680.
    All documents the FAA considered in developing this proposed rule, 
including economic analyses and technical reports, may be accessed from 
the internet through the Federal eRulemaking Portal referenced in item 
(1) above.

C. 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. A small entity with questions regarding this 
document may contact its local FAA official or the person listed under 
the FOR FURTHER INFORMATION CONTACT heading at the beginning of the 
preamble. To find out more about SBREFA on the internet, visit 
www.faa.gov/regulations_policies/rulemaking/sbre_act/.

List of Subjects

14 CFR Part 3

    Aircraft, Aviation safety, Fraud.

14 CFR Part 5

    Administrative practice and procedure, Air carriers, Aircraft, 
Aviation safety, Reporting and recordkeeping requirements.

14 CFR Part 21

    Aircraft, Aviation safety, Exports, Imports, Reporting and 
recordkeeping requirements.

14 CFR Part 43

    Aircraft, Aviation safety, Reporting and recordkeeping 
requirements.

14 CFR Part 45

    Aircraft, Aviation safety, Reporting and recordkeeping 
requirements.

14 CFR Part 47

    Aircraft, Reporting and recordkeeping requirements.

14 CFR Part 48

    Aircraft, Reporting and recordkeeping requirements.

14 CFR Part 60

    Airmen, Aviation safety, Reporting and recordkeeping requirements.

14 CFR Part 61

    Airmen, Alcohol abuse, Aviation safety, Drug abuse, Recreation and 
recreation areas, Reporting and recordkeeping requirements, Security 
measures, Teachers.

14 CFR Part 63

    Aircraft, Airman, Alcohol abuse, Aviation safety, Drug abuse, 
Navigation (air), Reporting and recordkeeping requirements, Security 
measures.

14 CFR Part 65

    Air traffic controllers, Aircraft, Airmen, Airports, Alcohol abuse, 
Aviation safety, Drug abuse, Reporting and recordkeeping requirements, 
Security measures.

14 CFR Part 67

    Airmen, Authority delegations (Government agencies), Health, 
Reporting and recordkeeping requirements.

14 CFR Part 68

    Aircraft, Airmen, Aviation safety, Health, Reporting and 
recordkeeping requirements.

14 CFR Part 77

    Air traffic control, Aircraft, Aviation safety, Navigation (air).

14 CFR Part 89

    Air traffic control, Aircraft, Airmen, Aviation safety, Reporting 
and recordkeeping requirements, Security measures, Unmanned aircraft.

14 CFR Part 91

    Afghanistan, Agriculture, Air carriers, Air taxis, Air traffic 
control, Aircraft, Airmen, Airports, Alaska, Aviation safety, Canada, 
Charter flights, Cuba, Drug traffic control, Ethiopia, Freight, Iraq, 
Libya, Mexico, Noise control, North Korea, Political candidates, 
Reporting and recordkeeping requirements, Security measures, Somalia, 
Syria, Transportation, Yugoslavia.

14 CFR Part 93

    Air traffic control, Aircraft, Aviation safety, Navigation (air).

14 CFR Part 99

    Air traffic control, Aircraft, Aviation safety, Security measures.

14 CFR Part 101

    Aircraft, Aviation safety, Balloons, Rockets.

14 CFR Part 103

    Aircraft, Airmen, Aviation safety.

14 CFR Part 105

    Aircraft, Aviation safety, Parachutes, Recreation and recreation 
areas,

[[Page 8575]]

Reporting and recordkeeping requirements.

14 CFR Part 107

    Aircraft, Airmen, Aviation safety, Reporting and recordkeeping 
requirements, Security measures.

14 CFR Part 111

    Administrative practice and procedure, Air carriers, Air operators, 
Air taxis, Aircraft, Airmen, Alcohol abuse, Aviation safety, Charter 
flights, Drug abuse, Public aircraft, Reporting and recordkeeping 
requirements.

14 CFR Part 117

    Airmen, Aviation safety, Reporting and recordkeeping requirements.

14 CFR Part 119

    Administrative practice and procedure, Air carriers, Aircraft, 
Airmen, Aviation safety, Charter flights, Reporting and recordkeeping 
requirements.

14 CFR Part 120

    Air carriers, Air traffic controllers, Airmen, Alcohol abuse, 
Alcoholism, Aviation safety, Drug abuse, Drug testing, Reporting and 
recordkeeping requirements, Safety, Transportation.

14 CFR Part 121

    Air carriers, Aircraft, Airmen, Alcohol abuse, Aviation safety, 
Charter flights, Drug abuse, Drug testing, Reporting and recordkeeping 
requirements, Safety, Transportation.

14 CFR Part 125

    Aircraft, Airmen, Aviation safety, Safety, Reporting and 
recordkeeping requirements.

14 CFR Part 129

    Air carriers, Aircraft, Aviation safety, Reporting and 
recordkeeping requirements.

14 CFR Part 133

    Aircraft, Airmen, Aviation safety, Helicopters.

14 CFR Part 135

    Air taxis, Aircraft, Airmen, Alcohol abuse, Aviation Safety, Drug 
abuse, Drug testing, Reporting and recordkeeping requirements.

14 CFR Part 136

    Air transportation, Aircraft, Aviation safety, National parks, 
Recreation and recreation areas, Reporting and recordkeeping 
requirements.

14 CFR Part 137

    Aircraft, Aviation safety, Reporting and recordkeeping 
requirements.

14 CFR Part 139

    Air carriers, Aircraft, Airports, Aviation safety, Reporting and 
recordkeeping requirements.

14 CFR Part 141

    Air transportation, Aircraft, Aircraft pilots, Airmen, Aviation 
safety, Education, Educational facilities, Helicopters, Reporting and 
recordkeeping requirements, Rotorcraft, Schools, Students, Teachers, 
Transportation.

14 CFR Part 142

    Aircraft, Airmen, Aviation safety, Educational facilities, 
Reporting and recordkeeping requirements, Schools, Students, Teachers.

14 CFR Part 145

    Aircraft, Aviation safety, Reporting and recordkeeping 
requirements.

14 CFR Part 147

    Aircraft, Airmen, Aviation safety, Education, Educational 
facilities, Reporting and recordkeeping requirements, Schools.

14 CFR Part 183

    Aircraft, Airmen, Authority delegations (Government agencies), 
Aviation safety, Reporting and recordkeeping requirements.

14 CFR Part 402

    Fraud, Reporting and recordkeeping requirements, Rockets, Safety, 
Space transportation and exploration.

14 CFR Part 413

    Confidential business information, Reporting and recordkeeping 
requirements, Rockets, Safety, Space transportation and exploration.

14 CFR Part 414

    Aviation safety, Confidential business information, Rockets, 
Safety, Space transportation and exploration.

14 CFR Part 415

    Aviation safety, Environmental protection, Reporting and 
recordkeeping requirements, Safety, Space transportation and 
exploration.

14 CFR Part 417

    Aviation safety, Reporting and recordkeeping requirements, Rockets, 
Safety, Space transportation and exploration.

14 CFR Part 420

    Airspace, Aviation safety, Environmental protection, Reporting and 
recordkeeping requirements, Space transportation and exploration.

14 CFR Part 431

    Aviation safety, Environmental protection, Investigations, 
Reporting and recordkeeping requirements, Rockets, Safety, Space 
transportation and exploration.

14 CFR Part 433

    Aviation safety, Environmental protection, Investigations, 
Reporting and recordkeeping requirements, Rockets, Safety, Space 
transportation and exploration.

14 CFR Part 435

    Aviation safety, Environmental protection, Investigations, 
Reporting and recordkeeping requirements, Rockets, Space transportation 
and exploration.

14 CFR Part 437

    Airspace, Aviation safety, Rockets, Safety, Space transportation 
and exploration.

14 CFR Part 440

    Indemnity payments, Insurance, Reporting and recordkeeping 
requirements, Space transportation and exploration.

14 CFR Part 450

    Aircraft, Aviation safety, Environmental protection, 
Investigations, Reporting and recordkeeping requirements, Safety, Space 
transportation and exploration.

14 CFR Part 460

    Reporting and recordkeeping requirements, Rockets, Space safety, 
Space transportation and exploration.

The Proposed Amendment

    In consideration of the foregoing, the Federal Aviation 
Administration proposes to amend 14 CFR as follows:

PART 3--GENERAL REQUIREMENTS

0
1. The authority citation for part 3 is revised to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701-44709, 46111, and 
46301.

0
2. Revise Sec.  3.1(a) introductory text to read as follows:


Sec.  3.1   Applicability.

    (a) This subpart applies to any person who makes a record 
regarding:
* * * * *
0
3. Add subpart D, consisting of Sec. Sec.  3.401, 3.403, and 3.405, to 
part 3 to read as follows:

[[Page 8576]]

Subpart D--Falsification, Reproduction, Alteration, Omission, or 
Incorrect Statements

Sec.
3.401 Applicability.
3.403 Falsification, reproduction, alteration, or omission.
3.405 Incorrect statement, or omission.


Sec.  3.401   Applicability.

    This subpart applies to any person subject to the requirements in 
subchapter A (except parts 1 and 3), subchapter C (except part 39), 
subchapter D, subchapter E (except parts 71 and 73), subchapter F 
(except parts 95 and 97), subchapter G (except part 110), subchapter H, 
and subchapter K (except parts 185, 187, 189 and 193), of this chapter.


Sec.  3.403   Falsification, reproduction, alteration, or omission.

    (a) No person may make or cause to be made any fraudulent or 
intentionally false statement in:
    (1) Any document in any format, submitted under any provision 
referenced in Sec.  3.401, consisting of or related to any acceptance, 
application, approval, authorization, certificate, rating, declaration, 
designation, qualification, record, report, request for 
reconsideration, or similar; or
    (2) Any document in any format that is kept, made, or used to show 
compliance with any requirement under the provisions referenced in 
Sec.  3.401.
    (b) No person may make or cause to be made any production, 
reproduction, or alteration, for fraudulent purpose, of:
    (1) Any document in any format, submitted or granted under any 
provision referenced in Sec.  3.401, consisting of or related to any 
acceptance, application, approval, authorization, certificate, rating, 
declaration, designation, qualification, record, report, request for 
reconsideration, or similar; or
    (2) Any document in any format that is kept, made, or used to show 
compliance with any requirement under the provisions referenced in 
Sec.  3.401.
    (c) No person may knowingly omit, or cause to be omitted, a 
material fact in:
    (1) Any document in any format, submitted under any provision 
referenced in Sec.  3.401, consisting of or related to any acceptance, 
application, approval, authorization, certificate, rating, declaration, 
designation, qualification, record, report, request for 
reconsideration, or similar; or
    (2) Any document in any format that is kept, made, or used to show 
compliance with any requirement under the provisions referenced in 
Sec.  3.401.
    (d) The commission by any person of an act prohibited under 
paragraphs (a) through (c) of this section is a basis for:
    (1) Denying, suspending, modifying, revoking, rescinding, removing, 
or withdrawing any acceptance, application, approval, authorization, 
certificate, rating, declaration, designation, qualification, request 
for reconsideration, or similar, issued or granted by the Administrator 
and held by that person; or
    (2) A civil penalty.


Sec.  3.405   Incorrect statement, or omission.

    (a) No person may make or cause to be made a material incorrect 
statement, or omit or cause to be omitted a material fact, in:
    (1) Any document in any format, submitted under any provision 
referenced in Sec.  3.401, consisting of or related to any acceptance, 
application, approval, authorization, certificate, rating, declaration, 
designation, qualification, record, report, request for 
reconsideration, or similar; or
    (2) Any document in any format that is kept, made, or used to show 
compliance with any requirement under the provisions referenced in 
Sec.  3.401.
    (b) A material incorrect statement, or omission of a material fact, 
in any document described in Sec.  3.405(a)(1) and (2) may serve as a 
basis for denying, suspending, modifying, revoking, rescinding, 
removing, or withdrawing any acceptance, application, approval, 
authorization, certificate, rating, declaration, designation, 
qualification, request for reconsideration, or similar, issued or 
granted by the Administrator and held by that person.

PART 21--CERTIFICATION PROCEDURES FOR PRODUCTS AND ARTICLES

0
4. The authority citation for part 21 continues to read as follows:

    Authority:  42 U.S.C. 7572; 49 U.S.C. 106(f), 106(g), 40105, 
40113, 44701-44702, 44704, 44707, 44709, 44711, 44713, 44715, 45303.


Sec.  21.2   [Removed and reserved]

0
5. Remove and reserve Sec.  21.2.

PART 43--MAINTENANCE, PREVENTIVE MAINTENANCE, REBUILDING, AND 
ALTERATION

0
6. The authority citation for part 43 continues to read as follows:

    Authority:  42 U.S.C. 7572; 49 U.S.C. 106(f), 106(g), 40105, 
40113, 44701-44702, 44704, 44707, 44709, 44711, 44713, 44715, 45303.


Sec.  43.12   [Removed and reserved]

0
7. Remove and reserve Sec.  43.12.

PART 60--FLIGHT SIMULATION TRAINING DEVICE INITIAL AND CONTINUING 
QUALIFICATION AND USE

0
8. The authority citation for part 60 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40113, and 44701; Pub. L. 
111-216, 124 Stat. 2348 (49 U.S.C. 44701 note).


Sec.  60.33   [Removed and Reserved]

0
9. Remove and reserve Sec.  60.33.

Appendix A to Part 60

0
10. In Appendix A to part 60:
0
a. In the table of contents, remove and reserve entry 22., and
0
b. Remove and reserve section ``22. Applications, Logbooks, Reports, 
and Records: Fraud, Falsification, or Incorrect Statements (Sec.  
60.33)''

Appendix B to Part 60

0
11. In Appendix B to part 60:
0
a. In the table of contents, remove and reserve entry 22., and
0
b. Remove and reserve section ``22. Applications, Logbooks, Reports, 
and Records: Fraud, Falsification, or Incorrect Statements (Sec.  
60.33).''

Appendix C to Part 60

0
12. In Appendix C to part 60:
0
a. In the table of contents, remove and reserve entry 22., and
0
b. Remove and reserve section ``22. Applications, Logbooks, Reports, 
and Records: Fraud, Falsification, or Incorrect Statements (Sec.  
60.33).''

Appendix D to Part 60

0
13. In Appendix D to part 60:
0
a. In the table of contents, remove and reserve entry 22., and
0
b. Remove and reserve section ``22. Applications, Logbooks, Reports, 
and Records: Fraud, Falsification, or Incorrect Statements (Sec.  
60.33).''

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

0
14. The authority citation for part 61 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40113, 44701-44703, 44707, 
44709-44711, 44729, 44903, 45102-45103, 45301-45302.


Sec.  61.59   [Removed and reserved]

0
15. Remove and reserve Sec.  61.59.

PART 63--CERTIFICATION: FLIGHT CREWMEMBERS OTHER THAN PILOTS

0
16. The authority citation for part 63 continues to read as follows:

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

[[Page 8577]]

Sec.  63.20  [Removed and reserved]

0
17. Remove and reserve Sec.  63.20.

PART 65--CERTIFICATION: AIRMEN OTHER THAN FLIGHT CREWMEMBERS

0
18. The authority citation for part 65 continuous to read as follows:

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


Sec.  65.20   [Removed and reserved]

0
19. Remove and reserve Sec.  65.20.

PART 67--MEDICAL STANDARDS AND CERTIFICATION

0
20. The authority citation for part 67 continues to read as follows:

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

0
21. Revise Sec.  67.401(f)(5) to read as follows:


Sec.  67.401   Special issuance of medical certificates.

* * * * *
    (f) * * *
    (5) The holder makes or causes to be made a statement or entry that 
is the basis for withdrawal of an Authorization, including a SODA, 
under subpart D of part 3 of this chapter.
* * * * *


Sec.  67.403   [Removed and reserved]

0
22. Remove and reserve Sec.  67.403.

PART 89--REMOTE IDENTIFICATION OF UNMANNED AIRCRAFT

0
23.The authority citation for part 89 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40101(d), 40103(b), 44701, 
44805, 44809(f); Section 2202 of Pub. L. 114-190, 130 Stat. 629.


Sec.  89.5   [Removed and reserved]

0
24. Remove and reserve Sec.  89.5.

PART 107--SMALL UNMANNED AIRCRAFT SYSTEMS

0
25. The authority citation for part 107 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 40101 note, 40103(b), 44701(a)(5), 
46105(c), 46110, 44807.


Sec.  107.5   [Removed and reserved]

0
26. Remove and reserve Sec.  107.5.

PART 111--PILOT RECORDS DATABASE

0
27. The authority citation for part 111 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40101, 40113, 44701, 
44703, 44711, 46105, 46301.


Sec.  111.35   [Removed and reserved]

0
28. Remove and reserve Sec.  111.35.

PART 120--DRUG AND ALCOHOL TESTING PROGRAM

0
29. The authority citation for part 120 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40101-40103, 40113, 40120, 
41706, 41721, 44106, 44701, 44702, 44703, 44709, 44710, 44711, 
45101-45105, 46105, 46306.

0
30. Remove and reserve Sec.  120.103(e).


Sec.  120.213   [Removed and reserved]

0
31. Remove and reserve Sec.  120.213.

PART 121--OPERATING REQUIREMENTS: DOMESTIC, FLAG, AND SUPPLEMENTAL 
OPERATIONS

0
32. The authority citation for part 121 continues to read as follows:

    Authority: 49 U.S.C. 106(f), 106(g), 40103, 40113, 40119, 41706, 
42301 preceding note added by Pub. L. 112-95, sec. 412, 126 Stat. 
89, 44101, 44701-44702, 44705, 44709-44711, 44713, 44716-44717, 
44722, 44729, 44732; 46105; Pub. L. 111-216, 124 Stat. 2348 (49 
U.S.C. 44701 note); Pub. L. 112-95, 126 Stat. 62 (49 U.S.C. 44732 
note); Pub. L. 115-254, 132 Stat. 3186 (49 U.S.C. 44701 note).


Sec.  121.9   [Removed and reserved]

0
33. Remove and reserve Sec.  121.9.

PART 139--CERTIFICATION OF AIRPORTS

0
34. The authority citation for part 139 continues to read as follows:

    Authority:  49 U.S.C. 106(f), 106(g), 40113, 44701-44706, 44709, 
44719, 47175.


Sec.  139.115   [Removed and reserved]

0
35. Remove and reserve Sec.  139.115.

PART 142--TRAINING CENTERS

0
36. The authority citation for part 142 continues to read as follows:

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


Sec.  142.11   [Removed and reserved]

0
37. Remove and reserve Sec.  142.11(e)(3).

PART 145--REPAIR STATIONS

0
38. The authority citation for part 145 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701-44702, 44707, 44709, 
44717.


Sec.  145.12   [Removed and reserved]

0
39. Remove and reserve Sec.  145.12.
0
40. Add part 402 to subchapter A to read as follows:

PART 402--GENERAL REQUIREMENTS

Sec.
402.1 Applicability.
402.3 Falsification, reproduction, alteration, or omission.
402.5 Incorrect statement, or omission.

    Authority:  51 U.S.C. 50101-50923.


Sec.  402.1   Applicability.

    This part applies to any person subject to the requirements in 
subchapter C of this chapter.


Sec.  402.3   Falsification, reproduction, alteration, or omission.

    (a) No person may make or cause to be made any fraudulent or 
intentionally false statement in:
    (1) Any document in any format, submitted under any provision 
referenced in Sec.  402.1 of this part, consisting of or related to any 
acceptance, application, approval, authorization, permit, license, 
waiver, record, report, or similar; or
    (2) Any document in any format that is kept, made, or used to show 
compliance with any requirement under the provisions referenced in 
Sec.  402.1.
    (b) No person may make or cause to be made any production, 
reproduction or alteration, for fraudulent purpose, of:
    (1) Any document in any format, submitted or granted under any 
provision referenced in Sec.  402.1, consisting of or related to any 
acceptance, application, approval, authorization, permit, license, 
waiver, record, report, or similar; or
    (2) Any document in any format that is kept, made, or used to show 
compliance with any requirement under the provisions referenced in 
Sec.  402.1.
    (c) No person may knowingly omit or cause to be omitted a material 
fact in:
    (1) Any document in any format, submitted under any provision 
referenced in Sec.  402.1, consisting of or related to any acceptance, 
application, approval, authorization, permit, license, waiver, record, 
report, or similar; or
    (2) Any document in any format that is kept, made, or used to show 
compliance with any requirement under the provisions referenced in 
Sec.  402.1.
    (d) The commission by any person of an act prohibited under 
paragraphs (a) through (c) of this section is a basis for:
    (1) Denying, suspending, modifying, revoking, rescinding, removing, 
or withdrawing any acceptance, application, approval, authorization, 
permit, license, waiver, or similar, issued or granted by the 
Administrator and held by that person; or
    (2) A civil penalty.

[[Page 8578]]

Sec.  402.5   Incorrect statement, or omission.

    (a) No person may make or cause to be made a material incorrect 
statement, or omit or cause to be omitted a material fact, in:
    (1) Any document in any format, submitted under any provision 
referenced in Sec.  402.1, consisting of or related to any acceptance, 
application, approval, authorization, permit, license, waiver, record, 
report, or similar; or
    (2) Any document in any format that is kept, made, or used to show 
compliance with any requirement under the provisions referenced in 
Sec.  402.1.
    (b) A material incorrect statement, or omission of a material fact, 
in a document described in Sec.  402.5(a)(1) and (2) may serve as a 
basis for denying, suspending, modifying, revoking, rescinding, 
removing, or withdrawing any acceptance, application, approval, 
authorization, permit, license, waiver, or similar, issued or granted 
by the Administrator and held by that person.

PART 413--LICENSE APPLICATION PROCEDURES

0
41. The authority citation for part 413 continues to read as follows:

    Authority:  51 U.S.C. 50901-50923.

0
42. Remove and reserve Sec.  413.17(c).

    Issued under authority provided by 49 U.S.C. 106(f), 44701(a), and 
44703 in Washington, DC.

Marc A. Nichols,
Chief Counsel.
[FR Doc. 2024-00872 Filed 2-7-24; 8:45 am]
BILLING CODE 4910-13-P

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