[Federal Register Volume 82, Number 232 (Tuesday, December 5, 2017)]
[Notices]
[Pages 57497-57501]
[FR Doc No: 2017-26120]

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

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82166; File No. SR-NYSEArca-2017-90]

Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a
Proposed Rule Change, as Modified by Amendment No. 2, To List and Trade
Shares of the Hartford Municipal Opportunities ETF Under NYSE Arca Rule
8.600-E

November 29, 2017.

I. Introduction

    On August 17, 2017, NYSE Arca, Inc. (``Exchange'') filed with the
Securities and Exchange Commission (``Commission''), pursuant to
Section 19(b)(1) of the Securities Exchange Act

of 1934 (``Act'') \1\ and Rule 19b-4 thereunder,\2\ a proposed rule
change to list and trade shares (``Shares'') of the Hartford Municipal
Opportunities ETF (``Fund'') under NYSE Arca Rule 8.600-E. The proposed
rule change was published for comment in the Federal Register on
September 6, 2017.\3\ On October 17, 2017, the Exchange filed Amendment
No. 1 to the proposed rule change. On October 23, 2017, the Exchange
filed Amendment No. 2 to the proposed rule change, which replaced and
superseded the proposed rule change as modified by Amendment No. 1.\4\
The Commission has not received any comments on the proposed rule
change. This order approves the proposed rule change, as modified by
Amendment No. 2.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ See Securities Exchange Act Release No. 81505 (August 30,
2017), 82 FR 42147 (``Notice'').
    \4\ In Amendment No. 2, the Exchange: (1) Clarified that the
list of municipal securities included in the section of the Notice
entitled Hartford Municipal Opportunities ETF are the Municipal
Securities in which the Fund is permitted to invest at least 80% of
its net assets; (2) specified that redemption orders would not be
subject to acceptance by the distributor of the Fund; (3) identified
the Fund's transfer agent; (4) explained that the Fund's sponsor
believes that the 1:00 p.m., E.T. cut-off time for creation and
redemption orders would not have a material impact on an authorized
participant's arbitrage opportunities with respect to the Shares
because it will not affect the primary arbitrage mechanism
applicable to the Fund, which is the ability to trade the futures
contracts and other derivative instruments that are used for hedging
purposes throughout the U.S. trading day; and (5) made non-
substantive, technical amendments. Because Amendment No. 2 makes
only clarifying and technical changes, and does not present unique
or novel regulatory issues, it is not subject to notice and comment.
Amendment No. 2 is available at: https://www.sec.gov/comments/sr-nysearca-2017-90/nysearca201790-2651202-161338.pdf.
---------------------------------------------------------------------------

II. The Exchange's Description of the Proposed Rule Change

    The Exchange proposes to list and trade Shares of the Funds under
NYSE Arca Equities Rule 8.600-E, which governs the listing and trading
of Managed Fund Shares on the Exchange.\5\ The Shares will be offered
by Hartford Funds Exchange-Traded Trust (``Trust''), which is
registered with the Commission as an open-end management investment
company.\6\ The Fund is a series of the Trust. Hartford Funds
Management Company, LLC (``Manager'') will be the investment manager to
the Fund. Wellington Management Company LLP (``Sub-Adviser'') will be
the sub-adviser to the Fund and will perform the daily investment of
the assets for the Fund.\7\ ALPS Distributors, Inc. (``Distributor'')
will be the principal underwriter to the Fund. State Street Bank and
Trust Company will serve as transfer agent for the Fund.
---------------------------------------------------------------------------

    \5\ A Managed Fund Share is a security that represents an
interest in an investment company registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1) (``1940 Act'') organized as an
open-end investment company or similar entity that invests in a
portfolio of securities selected by its investment adviser
consistent with its investment objectives and policies. In contrast,
an open-end investment company that issues Investment Company Units,
listed and traded on the Exchange under NYSE Arca Rule 5.2-E(j)(3),
seeks to provide investment results that correspond generally to the
price and yield performance of a specific foreign or domestic stock
index, fixed income securities index or combination thereof.
    \6\ The Trust is registered under the 1940 Act. On June 26,
2017, the Trust filed with the Commission its registration statement
on Form N-1A under the Securities Act of 1933 (15 U.S.C. 77a), and
under the 1940 Act relating to the Fund (File Nos. 333-215165 and
811-23222) (``Registration Statement''). In addition, the Commission
has issued an order granting certain exemptive relief to the Trust
under the 1940 Act. See Investment Company Act Release No. 32454
(Jan. 27, 2017) (File No. 812-13828-01).
    \7\ The Exchange represents that neither the Manager nor Sub-
Adviser is a registered broker-dealer but that each is affiliated
with a broker-dealer. The Exchange represents that the Manager and
Sub-Adviser have each implemented a ``fire wall'' with respect to
this broker-dealer affiliate regarding access to information
concerning the composition of and/or changes to the Fund's
portfolio. In addition, the Exchange represents that Commentary .06
to Rule 8.600-E requires that personnel who make decisions on the
Fund's portfolio composition be subject to procedures designed to
prevent the use and dissemination of material, non-public
information regarding the Fund's portfolio. In the event that (a)
the Manager or Sub-Adviser becomes registered as a broker-dealer or
newly affiliated with a broker-dealer, or (b) any new adviser or
sub-adviser to the Fund is a registered broker-dealer or becomes
affiliated with a broker-dealer, the applicable adviser or sub-
adviser will implement and maintain a fire wall with respect to its
relevant personnel or broker-dealer affiliate regarding access to
information concerning the composition of and/or changes to the
Fund's portfolio, and will be subject to procedures designed to
prevent the use and dissemination of material non-public information
regarding the portfolio.
---------------------------------------------------------------------------

    The Exchange has made the following representations and statements
in describing the Fund and its investment strategies, including the
Fund's portfolio holdings and investment restrictions.\8\
---------------------------------------------------------------------------

    \8\ The Commission notes that additional information regarding
the Trust, the Fund, and the Shares, including investment
strategies, risks, creation and redemption procedures, calculation
of net asset value (``NAV''), fees, distributions, and taxes, among
other things, is included in the proposed rule change, as modified
by Amendment No. 2, and the Registration Statement, as applicable.
See Amendment No. 2 and Registration Statement, supra notes 4 and 6,
respectively.
---------------------------------------------------------------------------

A. The Application of Generic Listing Requirements to the Funds

    The Exchange states that it is submitting this proposed rule change
because the portfolio of the Fund will not meet all of the ``generic''
listing requirements of Commentary .01 to NYSE Arca Equities Rule
8.600-E that apply to the listing of Managed Fund Shares. The Exchange
states that the Fund's portfolio will meet all the requirements set
forth in Commentary .01 to NYSE Arca Equities Rule 8.600-E except for
those set forth in Commentary .01(b)(1), which requires that components
that in the aggregate account for at least 75% of the fixed income
weight of the portfolio each have a minimum original principal amount
outstanding of $100 million or more.

B. The Fund's Principal Investments

    According to the Exchange, the Fund's investment objective is to
provide current income that is generally exempt from federal income
taxes and to provide long-term total return. Under normal market
conditions,\9\ the Fund will invest at least 80% of its net assets in
municipal securities.\10\ The Fund may invest in one or more of the
following municipal securities (collectively, ``Municipal
Securities''):
---------------------------------------------------------------------------

    \9\ The term ``normal market conditions'' is defined in NYSE
Arca Rule 8.600-E(c)(5).
    \10\ According to the Exchange, municipal securities primarily
include debt obligations that are issued by or on behalf of the
District of Columbia, states, territories, commonwealths, and
possessions of the United States and their political subdivisions
(e.g., cities, towns, counties, school districts, authorities, and
commissions) and agencies, authorities, and instrumentalities.
---------------------------------------------------------------------------

     General obligation bonds;
     Revenue (or limited obligation) bonds;
     Private activity (or industrial development) bonds;
     Municipal notes;
     Municipal lease obligations; and
     Zero-coupon Municipal Securities.

C. The Fund's Other Investments

    According to the Exchange, while the Fund, under normal market
conditions, will invest at least 80% of its net assets in Municipal
Securities, the Fund may, under normal market conditions, invest up to
20% of its net assets in the aggregate in the following securities and
financial instruments described below:
     Exchange-traded funds (``ETFs'') \11\ and exchange-traded
notes (``ETNs''); \12\
---------------------------------------------------------------------------

    \11\ The term ``ETFs'' includes Investment Company Units (as
described in NYSE Arca Rule 5.2-E(j)(3)); Portfolio Depositary
Receipts (as described in NYSE Arca Rule 8.100-E); and Managed Fund
Shares (as described in NYSE Arca Rule 8.600-E). The Exchange states
that all ETFs will be listed and traded in the U.S. on a national
securities exchange. While the Fund may invest in inverse ETFs, the
Fund will not invest in leveraged (e.g., 2X, -2X, 3X or -3X) ETFs.
    \12\ ETNs are securities such as those listed on the Exchange
under NYSE Arca Rule 5.2-E(j)(6).
---------------------------------------------------------------------------

     securities issued or guaranteed as to principal or
interest by the U.S. Government or by its agencies or
instrumentalities;

     non-agency asset-backed securities;
     registered money market funds that invest in money market
instruments, as permitted by regulations adopted under the 1940 Act;
     registered money market funds that invest in money market
instruments and other investment company securities as permitted under
the 1940 Act;
     repurchase and reverse repurchase agreements;
     securities that are not registered under the 1933 Act
(``restricted securities'');
     zero-coupon securities (in addition to zero-coupon
Municipal Securities);
     variable rate bonds known as ``inverse floaters,'' which
pay interest at rates that bear an inverse relationship to changes in
short-term market interest rates;
     municipal inverse floaters, which are a type of inverse
floater in which a municipal bond is deposited with a special purpose
vehicle (SPV), which issues, in return, the municipal inverse floater
(which comprises a residual interest in the cash flows and assets of
the SPV) plus proceeds from the issuance by the SPV of floating rate
certificates to third parties; and
     derivative instruments, including interest-rate futures
contracts and interest-rate swaps, caps, floors, and collars. The Fund
may use derivative instruments to manage portfolio risk, to replicate
securities the Fund could buy that are not currently available in the
market, or for other investment purposes.
    Additionally, the fund may, when its sub-adviser, subject to the
overall supervision of the Manager, deems it appropriate, invest some
or all of its assets in cash, high-quality money-market
instruments,\13\ U.S. Government securities, and shares of money-market
investment companies for temporary defensive purposes in response to
adverse market, economic, or political conditions.
---------------------------------------------------------------------------

    \13\ Money market instruments include the following: (1)
Banker's acceptances; (2) short-term corporate obligations,
including commercial paper, notes, and bonds; (3) other short-term
debt obligations; and (4) obligations of U.S. banks.
---------------------------------------------------------------------------

D. The Fund's Investment Restrictions

    According to the Exchange, the Fund may hold up to an aggregate
amount of 15% of its net assets in illiquid assets (calculated at the
time of investment) deemed illiquid by the Adviser, consistent with
Commission guidance. The Fund will monitor its portfolio liquidity on
an ongoing basis to determine whether, in light of current
circumstances, an adequate level of liquidity is being maintained, and
the Fund will consider taking appropriate steps in order to maintain
adequate liquidity if, through a change in values, net assets, or other
circumstances, more than 15% of the Fund's net assets are held in
illiquid assets. Illiquid assets may include securities subject to
contractual or other restrictions on resale and other instruments that
lack readily available markets as determined in accordance with
Commission staff guidance.
    The Fund's investments will be consistent with its investment goal
and will not be used to provide multiple returns of a benchmark or to
produce leveraged returns.
    Under normal market conditions, except for periods of high cash
inflows or outflows,\14\ the Fund will satisfy the following criteria:
(i) The Fund will have a minimum of 20 non-affiliated issuers; (ii) no
single municipal securities issuer will account for more than 10% of
the weight of the Fund's portfolio; (iii) no individual bond will
account for more than 5% of the weight of the Fund's portfolio; (iv)
the Fund will limit its investments in Municipal Securities of any one
state to 20% of the Fund's total assets and will be diversified among
issuers in at least 10 states; and (v) the Fund will be diversified
among a minimum of five different sectors of the municipal bond
market.\15\ The Exchange states that pre-refunded bonds will be
excluded from the above limits because they have a high level of credit
quality and liquidity.\16\
---------------------------------------------------------------------------

    \14\ ``Periods of high cash inflows or outflows'' as used
herein, mean rolling periods of seven calendar days during which
inflows or outflows of cash, in the aggregate, exceed 10% of the
Fund's net assets as of the opening of business on the first day of
such periods.
    \15\ The Fund's investments in Municipal Securities will include
investments in state and local (e.g., county, city, town) Municipal
Securities relating to such sectors as the following: Airports;
bridges and highways; hospitals; housing; jails; mass
transportation; nursing homes; parks; public buildings; recreational
facilities; school facilities; streets; and water and sewer works.
    \16\ The Manager represents that pre-refunded bonds (also known
as refunded or escrow-secured bonds) have a high level of credit
quality and liquidity because the issuer ``prerefunds'' the bond by
setting aside in advance all or a portion of the amount to be paid
to the bondholders when the bond is called. Generally, an issuer
uses the proceeds from a new bond issue to buy high grade, interest
bearing debt securities, including direct obligations of the U.S.
government, which are then deposited in an irrevocable escrow
account held by a trustee bank to secure all future payments of
principal and interest on the pre-refunded bonds.
---------------------------------------------------------------------------

III. Discussion and Commission's Findings

    After careful review, the Commission finds that the Exchange's
proposal to list and trade the Shares is consistent with the Act and
the rules and regulations thereunder applicable to a national
securities exchange.\17\ In particular, the Commission finds that the
proposed rule change is consistent with Section 6(b)(5) of the Act,\18\
which requires, among other things, that the Exchange's rules be
designed to prevent fraudulent and manipulative acts and practices,
promote just and equitable principles of trade, to remove impediments
to and perfect the mechanism of a free and open market and a national
market system, and, in general, to protect investors and the public
interest.
---------------------------------------------------------------------------

    \17\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
    \18\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

    The Commission also finds that the proposal to list and trade
Shares on the Exchange is consistent with Section 11A(a)(1)(C)(iii) of
the Act,\19\ which sets forth Congress' finding that it is in the
public interest and appropriate for the protection of investors and the
maintenance of fair and orderly markets to assure the availability to
brokers, dealers, and investors of information with respect to
quotations for, and transactions in, securities. Quotation and last
sale information for the Shares, and for any ETFs and ETNs held in the
Fund's portfolio, will be available via the Consolidated Tape
Association (``CTA'') high-speed line and from the national securities
exchange on which they are listed.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78k-1(a)(1)(C)(iii).
---------------------------------------------------------------------------

    The iNAV(which is the Portfolio Indicative Value, as defined in
NYSE Arca Rule 8.600-E(c)(3)), will be widely disseminated at least
every 15 seconds during the Core Trading Session by one or more major
market data vendors or other information providers.\20\ On each day the
NYSE Arca is open (a ``Business Day''), before commencement of trading
in Shares on the Exchange in the Exchange's Core Trading Session, the
Manager will disclose the Fund's iNAV Basket.\21\ Additionally, the
Fund will disclose on its Web site the identities and quantities of the
Fund's portfolio holdings that will form the basis for the Fund's
calculation of NAV at the end of the Business Day. The NAV per Share
will be determined for the Fund's Shares as of the close of regular
trading on the New York Stock Exchange

(normally 4:00 p.m. Eastern Time) on each day that the Exchange is
open.
---------------------------------------------------------------------------

    \20\ The Exchange represents that several major market data
vendors display or make widely available Portfolio Indicative Values
taken from CTA or other data feeds.
    \21\ The iNAV will be based on the current market value of the
portfolio holdings that constitute the iNAV Basket.
---------------------------------------------------------------------------

    Information regarding market price and trading volume of the Shares
will be continually available on a real-time basis throughout the day
on brokers' computer screens and other electronic services. Information
regarding the previous day's closing price and trading volume
information for the Shares will be published daily in the financial
section of newspapers. Quotation information from brokers and dealers
or pricing services will be available for Municipal Bonds. Price
information for money market funds will be available from the
applicable investment company's Web site and from market data vendors.
Pricing information regarding each asset class in which the Fund will
invest will generally be available through nationally recognized data
service providers through subscription agreements.
    The Commission further believes that the proposal to list and trade
the Shares is reasonably designed to promote fair disclosure of
information that may be necessary to price the Shares appropriately and
to prevent trading when a reasonable degree of transparency cannot be
assured. The Exchange will obtain a representation from the issuer of
the Shares that the NAV per Share will be calculated daily and that the
NAV and the Disclosed Portfolio will be made available to all market
participants at the same time. Trading in Shares of the Fund will be
halted if the circuit breaker parameters in NYSE Arca Rule 7.12-E have
been reached or because of market conditions or for reasons that, in
the view of the Exchange, make trading in the Shares inadvisable.\22\
Trading in the Shares will be subject to NYSE Arca Rule 8.600-
E(d)(2)(D), which sets forth circumstances under which Shares of the
Fund may be halted.
---------------------------------------------------------------------------

    \22\ The Exchange may consider all relevant factors in
exercising its discretion to halt or suspend trading in the Shares
of the Fund.
---------------------------------------------------------------------------

    The Exchange represents that it has a general policy prohibiting
the distribution of material, non-public information by its employees.
In addition, Commentary .06 to NYSE Arca Equities Rule 8.600-E further
requires that personnel who make decisions on the open-end fund's
portfolio composition must be subject to procedures designed to prevent
the use and dissemination of material nonpublic information regarding
the open-end fund's portfolio. The Exchange represents that neither the
Manager nor Sub-Adviser is a registered broker-dealer but that each is
affiliated with a broker-dealer and that the Manager and Sub-Adviser
have each implemented a ``fire wall'' with respect to this broker-
dealer affiliate regarding access to information concerning the
composition of and/or changes to the Fund's portfolio.
    Prior to the commencement of trading, the Exchange will inform its
Equity Trading Permit Holders in an Information Bulletin (``Bulletin'')
of the special characteristics and risks associated with trading the
Shares. The Exchange represents that trading in the Shares will be
subject to the existing trading surveillances as well as cross-market
surveillances, administered by the Financial Industry Regulatory
Authority (``FINRA'') on behalf of the Exchange, or by regulatory staff
of the Exchange, which are designed to detect violations of Exchange
rules and applicable federal securities laws.\23\
---------------------------------------------------------------------------

    \23\ FINRA conducts cross-market surveillances on behalf of the
Exchange pursuant to a regulatory services agreement. The Exchange
is responsible for FINRA's performance under this regulatory
services agreement.
---------------------------------------------------------------------------

    The Exchange represents that it deems the Shares to be equity
securities, thus rendering trading in the Shares subject to the
Exchange's existing rules governing the trading of equity securities.
    In support of this proposal, the Exchange has made the following
additional representations:
    (1) The Shares of the Fund will conform to the initial and
continued listing criteria under NYSE Arca Rule 8.600-E.
    (2) The Exchange has appropriate rules to facilitate transactions
in the Shares during all trading sessions.
    (3) Trading in the Shares will be subject to the existing trading
surveillances as well as cross-market surveillances, administered by
FINRA on behalf of the Exchange, or by regulatory staff of the
Exchange, which are designed to detect violations of Exchange rules and
applicable federal securities laws. The Exchange represents that these
procedures are adequate to properly monitor Exchange trading of the
Shares in all trading sessions and to deter and detect violations of
Exchange rules and federal securities laws applicable to trading on the
Exchange. These surveillances generally focus on detecting securities
trading outside their normal patterns, which could be indicative of
manipulative or other violative activity. When such situations are
detected, surveillance analysis follows and investigations are opened,
where appropriate, to review the behavior of all relevant parties for
all relevant trading violations.
    (4) The Exchange or FINRA, on behalf of the Exchange, or both, will
communicate as needed regarding trading in the Shares, and any ETFs or
ETNs held in the Fund's portfolio, with other markets and other
entities that are members of the Intermarket Surveillance Group
(``ISG''), and the Exchange or FINRA, on behalf of the Exchange, or
both, may obtain trading information regarding trading in the Shares,
and any ETFs or ETNs held in the Fund's portfolio, from these markets
and other entities. In addition, the Exchange may obtain information
regarding trading in the Shares, and any ETFs or ETNs held in the
Fund's portfolio, from markets and other entities that are members of
ISG or with which the Exchange has in place a comprehensive
surveillance sharing agreement. In addition, FINRA, on behalf of the
Exchange, is able to access, as needed, trade information for certain
fixed income securities held by the Fund reported to FINRA's Trade
Reporting and Compliance Engine. FINRA also can access data obtained
from the Municipal Securities Rulemaking Board relating to municipal
bond trading activity for surveillance purposes in connection with
trading in the Shares.
    (5) Prior to the commencement of trading, the Exchange will inform
its Equity Trading Permit Holders in a Bulletin of the special
characteristics and risks associated with trading the Shares.
Specifically, the Bulletin will discuss the following: (a) The
procedures for purchases and redemptions of Shares in Creation Unit
aggregations (and that Shares are not individually redeemable); (b)
NYSE Arca Rule 9.2-E(a), which imposes a duty of due diligence on its
Equity Trading Permit Holders to learn the essential facts relating to
every customer prior to trading the Shares; (c) the risks involved in
trading the Shares during the Opening and Late Trading Sessions when an
updated iNAV will not be calculated or publicly disseminated; (d) how
information regarding the iNAV and the Disclosed Portfolio is
disseminated; (e) the requirement that Equity Trading Permit Holders
deliver a prospectus to investors purchasing newly issued Shares prior
to or concurrently with the confirmation of a transaction; and (f)
trading information. The Bulletin will discuss any exemptive, no-
action, and interpretive relief granted by the Commission from any
rules under the Act. The Bulletin will also disclose that the NAV for
the

Shares will be calculated after 4:00 p.m., Eastern Time each trading
day.
    (6) The Exchange represents that, for initial and continued
listing, the Fund will be in compliance with Rule 10A-3 \24\ under the
Act, as provided by NYSE Arca Rule 5.3-E.
---------------------------------------------------------------------------

    \24\ 17 CFR 240.10A-3.
---------------------------------------------------------------------------

    (7) Under normal market conditions, at least 80% of the Fund's net
assets must be invested in Municipal Securities.
    (8) The Fund's investments will be consistent with its investment
goal and will not be used to provide multiple returns of a benchmark or
to produce leveraged returns.
    (9) All ETFs will be listed and traded in the U.S. on a national
securities exchange. While the Fund may invest in inverse ETFs, the
Fund will not invest in leveraged (e.g., 2X, -2X, 3X or -3X) ETFs.
    (10) The Fund's portfolio will meet all the requirements set forth
in Commentary .01 to NYSE Arca Equities Rule 8.600-E except for those
set forth in Commentary .01(b)(1).
    (11) Under normal market conditions, except for periods of high
cash inflows or outflows, the Fund will satisfy the following criteria
in lieu of the criteria in Commentary .01(b)(1): (a) The Fund will have
a minimum of 20 non-affiliated issuers; (b) no single municipal
securities issuer will account for more than 10% of the weight of the
Fund's portfolio; (c) no individual bond will account for more than 5%
of the weight of the Fund's portfolio; (d) the Fund will limit its
investments in Municipal Securities of any one state to 20% of the
Fund's total assets and will be diversified among issuers in at least
10 states; and (e) the Fund will be diversified among a minimum of five
different sectors of the municipal bond market.
    (12) The Fund may hold up to an aggregate amount of 15% of its net
assets in illiquid assets (calculated at the time of investment) deemed
illiquid by the Adviser, consistent with Commission guidance. The Fund
will monitor its portfolio liquidity on an ongoing basis to determine
whether, in light of current circumstances, an adequate level of
liquidity is being maintained, and the Fund will consider taking
appropriate steps in order to maintain adequate liquidity if, through a
change in values, net assets, or other circumstances, more than 15% of
the Fund's net assets are held in illiquid assets. Illiquid assets may
include securities subject to contractual or other restrictions on
resale and other instruments that lack readily available markets as
determined in accordance with Commission staff guidance.
    (13) Each Fund's investments will be consistent with its investment
objective and will not be used to provide multiple returns of a
benchmark or to produce leveraged returns.
    The Exchange also represents that all statements and
representations made in this filing regarding (a) the description of
the portfolio, (b) limitations on portfolio holdings or reference
assets, or (c) the applicability of Exchange listing rules specified in
this rule filing shall constitute continued listing requirements for
listing the Shares of the Fund on the Exchange.
    The issuer has represented to the Exchange that it will advise the
Exchange of any failure by the Fund to comply with the continued
listing requirements, and, pursuant to its obligations under Section
19(g)(1) of the Act, the Exchange will monitor for compliance with the
continued listing requirements.\25\ If the Fund is not in compliance
with the applicable listing requirements, the Exchange will commence
delisting procedures under NYSE Arca Rule 5.5-E(m).
---------------------------------------------------------------------------

    \25\ The Commission notes that certain other proposals for the
listing and trading of Managed Fund Shares include a representation
that the exchange will ``surveil'' for compliance with the continued
listing requirements. See, e.g., Securities Exchange Act Release No.
78005 (Jun. 7, 2016), 81 FR 38247 (Jun. 13, 2016) (SR-BATS-2015-
100). In the context of this representation, it is the Commission's
view that ``monitor'' and ``surveil'' both mean ongoing oversight of
a fund's compliance with the continued listing requirements.
Therefore, the Commission does not view ``monitor'' as a more or
less stringent obligation than ``surveil'' with respect to the
continued listing requirements.
---------------------------------------------------------------------------

    The Commission believes that the Exchange's initial and continued
listing requirements, combined with the Fund's investment criteria that
would apply to Municipal Securities in the portfolio, are designed to
mitigate the potential for price manipulation of the Shares. This
approval order is based on all of the Exchange's representations,
including those set forth above and in the Notice, and the Exchange's
description of the Fund. The Commission notes that the Fund and the
Shares must comply with the requirements of NYSE Arca Equities Rule
8.600-E to be listed and traded on the Exchange.
    For the foregoing reasons, the Commission finds that the proposed
rule change is consistent with Section 6(b)(5) of the Act \26\ and the
rules and regulations thereunder applicable to a national securities
exchange.
---------------------------------------------------------------------------

    \26\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

IV. Conclusion

    It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\27\ that the proposed rule change (SR-NYSEArca-2017-90), as
modified by Amendment No. 2, be, and it hereby is, approved.
---------------------------------------------------------------------------

    \27\ 15 U.S.C. 78s(b)(2)
    \28\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-26120 Filed 12-4-17; 8:45 am]
 BILLING CODE 8011-01-P


[Federal Register Volume 78, Number 75 (Thursday, April 18, 2013)]
[Notices]
[Pages 23271-23273]
[FR Doc No: 2013-09093]

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

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2008-D-0150]

Agency Information Collection Activities; Proposed Collection;
Comment Request; Guidance for Industry on Hypertension Indication: Drug
Labeling for Cardiovascular Outcome Claims

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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

SUMMARY: The Food and Drug Administration (FDA) is announcing an
opportunity for public comment on the proposed collection of certain
information by the Agency. Under the Paperwork Reduction Act of 1995
(the PRA), Federal Agencies are required to publish notice in the
Federal Register concerning each proposed collection of information,
including each proposed extension of an existing collection of
information, and to allow 60 days for public comment in response to the
notice. This notice solicits comments on the information collection
associated with the guidance ``Hypertension Indication: Drug Labeling
for Cardiovascular Outcome Claims,'' which is intended to assist
applicants in developing labeling for outcome claims for drugs that are
indicated to treat hypertension.

DATES: Submit either electronic or written comments on the collection
of information by June 17, 2013.

ADDRESSES: Submit electronic comments on the collection of information
to http://www.regulations.gov. Submit written comments on the
collection of information to the Division of Dockets Management (HFA-
305), Food and Drug

Administration, 5630 Fishers Lane., rm. 1061, Rockville, MD 20852. All
comments should be identified with the docket number found in brackets
in the heading of this document.

FOR FURTHER INFORMATION CONTACT: Ila S. Mizrachi, Office of Information
Management, Food and Drug Administration, 1350 Piccard Dr., P150-400B,
Rockville, MD 20850,<PHONE_NUMBER><EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
Agencies must obtain approval from the Office of Management and Budget
(OMB) for each collection of information they conduct or sponsor.
``Collection of information'' is defined in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) and includes Agency requests or requirements that members of
the public submit reports, keep records, or provide information to a
third party. Section 3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A))
requires Federal Agencies to provide a 60-day notice in the Federal
Register concerning each proposed collection of information, including
each proposed extension of an existing collection of information,
before submitting the collection to OMB for approval. To comply with
this requirement, FDA is publishing notice of the proposed collection
of information set forth in this document.
    With respect to the following collection of information, FDA
invites comments on these topics: (1) Whether the proposed collection
of information is necessary for the proper performance of FDA's
functions, including whether the information will have practical
utility; (2) the accuracy of FDA's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information on respondents,
including through the use of automated collection techniques, when
appropriate, and other forms of information technology.

Guidance for Industry on Hypertension Indication: Drug Labeling for
Cardiovascular Outcome Claims--(OMB Control Number 0910-0670)--
Extension

    This guidance is intended to assist applicants in developing
labeling for outcome claims for drugs that are indicated to treat
hypertension. With few exceptions, current labeling for
antihypertensive drugs includes only the information that these drugs
are indicated to reduce blood pressure; the labeling does not include
information on the clinical benefits related to cardiovascular outcomes
expected from such blood pressure reduction. However, blood pressure
control is well established as beneficial in preventing serious
cardiovascular events, and inadequate treatment of hypertension is
acknowledged as a significant public health problem. FDA believes that
the appropriate use of these drugs can be encouraged by making the
connection between lower blood pressure and improved cardiovascular
outcomes more explicit in labeling. The intent of the guidance is to
provide common labeling for antihypertensive drugs except where
differences are clearly supported by clinical data. The guidance
encourages applicants to submit labeling supplements containing the new
language.
    The guidance contains two provisions that are subject to OMB review
and approval under the PRA, and one provision that would be exempt from
OMB review:
    (1) Section IV.C of the guidance requests that the CLINICAL STUDIES
section of the Full Prescribing Information of the labeling should
include a summary of placebo or active-controlled trials showing
evidence of the specific drug's effectiveness in lowering blood
pressure. If trials demonstrating cardiovascular outcome benefits
exist, those trials also should be summarized in this section. Table 1
in Section V of the guidance contains the specific drugs for which FDA
has concluded that such trials exist. If there are no cardiovascular
outcome data to cite, one of the following two paragraphs should
appear:

    ``There are no trials of [DRUGNAME] or members of the [name of
pharmacologic class] pharmacologic class demonstrating reductions in
cardiovascular risk in patients with hypertension,'' or ``There are
no trials of [DRUGNAME] demonstrating reductions in cardiovascular
risk in patients with hypertension, but at least one
pharmacologically similar drug has demonstrated such benefits.''

    In the latter case, the applicant's submission generally should
refer to table 1 in section V of the guidance. If the applicant
believes that table 1 is incomplete, it should submit the clinical
evidence for the additional information to Docket No. FDA-2008-D-0150.
The labeling submission should reference the submission to the docket.
FDA estimates that no more than one submission to the docket will be
made annually from one company, and that each submission will take
approximately 10 hours to prepare and submit. Concerning the
recommendations for the CLINICAL STUDIES section of the Full
Prescribing Information of the labeling, FDA regulations at Sec. Sec.
201.56 and 201.57 (21 CFR 201.56 and 201.57) require such labeling, and
the information collection associated with these regulations is
approved by OMB under OMB control number 0910-0572.
    (2) Section VI.B of the guidance requests that the format of
cardiovascular outcome claim prior approval supplements submitted to
FDA under the guidance should include the following information:
    1. A statement that the submission is a cardiovascular outcome
claim supplement, with reference to the guidance and related Docket No.
FDA-2008-D-0150.
    2. Applicable FDA forms (e.g., 356h, 3397).
    3. Detailed table of contents.
    4. Revised labeling:
    a. Include draft revised labeling conforming to the requirements in
Sec. Sec.  201.56 and 201.57;
    b. Include marked-up copy of the latest approved labeling, showing
all additions and deletions, with annotations of where supporting data
(if applicable) are located in the submission.
    FDA estimates that approximately 20 cardiovascular outcome claim
supplements will be submitted annually from approximately 8 different
companies, and that each supplement will take approximately 20 hours to
prepare and submit. The guidance also recommends that other labeling
changes (e.g., the addition of adverse event data) should be minimized
and provided in separate supplements, and that the revision of labeling
to conform to Sec. Sec.  201.56 and 201.57 may require substantial
revision to the ADVERSE REACTIONS or other labeling sections.
    (3) Section VI.C of the guidance states that applicants are
encouraged to include the following statement in promotional materials
for the drug.

    ''[DRUGNAME] reduces blood pressure, which reduces the risk of
fatal and nonfatal cardiovascular events, primarily strokes and
myocardial infarctions. Control of high blood pressure should be
part of comprehensive cardiovascular risk management, including, as
appropriate, lipid control, diabetes management, antithrombotic
therapy, smoking cessation, exercise, and limited sodium intake.
Many patients will require more than one drug to achieve blood
pressure goals.''

    The inclusion of this statement in the promotional materials for
the drug would be exempt from OMB review based on 5 CFR 1320.3(c)(2),
which

states that ``The public disclosure of information originally supplied
by the Federal government to the recipient for the purpose of
disclosure to the public is not included * * *'' within the definition
of ``collection of information.''
    FDA requests public comments on the information collection
provisions described in this document and set forth in the following
table:

                                 Table 1--Estimated Annual Reporting Burden \1\
----------------------------------------------------------------------------------------------------------------
                                                     Number of                        Average
            Activity                 Number of     responses per   Total annual     burden per      Total hours
                                    respondents     respondent       responses       response
----------------------------------------------------------------------------------------------------------------
Submission to Docket Number FDA-               1               1               1              10              10
 2008-D-0150....................
Cardiovascular Outcome Claim                   8             2.5              20              20             400
 Supplement Submission..........
                                 -------------------------------------------------------------------------------
    Total.......................  ..............  ..............  ..............  ..............             410
----------------------------------------------------------------------------------------------------------------
\1\ There are no capital costs or operating and maintenance costs associated with this collection of
  information.

    Dated: April 12, 2013.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2013-09093 Filed 4-17-13; 8:45 am]
BILLING CODE 4160-01-P


[Federal Register Volume 84, Number 237 (Tuesday, December 10, 2019)]
[Notices]
[Page 67470]
[FR Doc No: 2019-26508]

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

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

[Docket ID: FEMA-2019-0006; OMB No. 1660-0040]

Agency Information Collection Activities: Submission for OMB
Review; Comment Request; Standard Flood Hazard Determination Form

AGENCY: Federal Emergency Management Agency, DHS.

ACTION: Notice and request for comments.

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

SUMMARY: The Federal Emergency Management Agency, as part of its
continuing effort to reduce paperwork and respondent burden, invites
the general public to take this opportunity to comment on a
reinstatement, without change, of a previously approved information
collection for which approval has expired. FEMA will submit the
information collection abstracted below to the Office of Management and
Budget for review and clearance in accordance with the requirements of
the Paperwork Reduction Act of 1995. The submission will describe the
nature of the information collection, the categories of respondents,
the estimated burden (i.e., the time, effort and resources used by
respondents to respond) and cost, and the actual data collection
instruments FEMA will use.

DATES: Comments must be submitted on or before January 9, 2020.

ADDRESSES: Submit written comments on the proposed information
collection to the Office of Information and Regulatory Affairs, Office
of Management and Budget. Comments should be addressed to the Desk
Officer for the Department of Homeland Security, Federal Emergency
Management Agency, and sent via electronic mail to
<EMAIL_ADDRESS>
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the information collection should be made to Director,
Information Management Division, 500 C Street SW, Washington, DC 20472,
email address<EMAIL_ADDRESS>or
Susan Bernstein, Insurance Specialist, FIMA, Marketing and Outreach
Branch,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: Section 1365 of the National Flood Insurance
Act of 1968 (NFIA) (42 U.S.C. 4104b), as added by Section 528 of the
National Flood Insurance Reform Act of 1994 (Pub. L. 103-325, title V),
requires that FEMA develop a standard hazard determination form for
recording the determination of whether a structure is located within an
identified Special Flood Hazard Area and whether flood insurance is
available. Regulated lending institutions, federal agency lenders, the
Federal National Mortgage Association, the Federal Home Loan Mortgage
Corporation, and the Government National Mortgage Association must
complete this form for any loan made, increased, extended, renewed or
purchased by these entities. The requirement for federally regulated
lending institutions to determine whether a building or mobile home
securing a loan is located in an area having special flood hazards and
whether flood insurance is available has been in effect since the
enactment of the Flood Disaster Protection Act of 1973, although the
use of a standard form was not required until the enactment of the
Section 1365 of the NFIA. The establishment of the Standard Flood
Hazard Determination form has enabled lenders to provide consistent
information.
    This proposed information collection previously published in the
Federal Register on April 29, 2019 at 84 FR 18069 with a 60 day public
comment period. The comment period closed on June 30, 2019. No comments
were received. This information collection expired on November 30,
2018. FEMA is requesting a reinstatement, without change, of a
previously approved information collection for which approval has
expired. The purpose of this notice is to notify the public that FEMA
will submit the information collection abstracted below to the Office
of Management and Budget for review and clearance.

Collection of Information

    Title: Standard Flood Hazard Determination Form.
    Type of information collection: Reinstatement, without change, of a
previously approved information collection for which approval has
expired.
    OMB Number: 1660-0040.
    Form Titles and Numbers: FEMA Form 086-0-32, Standard Flood Hazard
Determination Form.
    Abstract: This form is used by regulated lending institutions,
federal agency lenders, the Federal National Mortgage Association, the
Federal Home Loan Mortgage Corporation, and the Government National
Mortgage Association. Federally regulated lending institutions complete
this form when making, increasing, extending, renewing or purchasing
each loan for the purpose is of determining whether flood insurance is
required and available. FEMA is responsible for maintaining the form
and making it available.
    Affected Public: Business and other for-profit; and Individuals or
Households.
    Estimated Number of Respondents: 26,616,265.
    Estimated Number of Responses: 26,616,265.
    Estimated Total Annual Burden Hours: 8,783,367.
    Estimated Total Annual Respondent Cost: $214,138,487.
    Estimated Respondents' Operation and Maintenance Costs: 0.
    Estimated Respondents' Capital and Start-Up Costs: 0.
    Estimated Total Annual Cost to the Federal Government: 0.

Comments

    Comments may be submitted as indicated in the ADDRESSES caption
above. Comments are solicited to (a) evaluate whether the proposed data
collection is necessary for the proper performance of the agency,
including whether the information shall have practical utility; (b)
evaluate the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (c) enhance the quality, utility, and
clarity of the information to be collected; and (d) minimize the burden
of the collection of information on those who are to respond, including
through the use of appropriate automated, electronic, mechanical, or
other technological collection techniques or other forms of information
technology, e.g., permitting electronic submission of responses.

Maile Arthur,
Acting Records Management Branch Chief, Office of the Chief
Administrative Officer, Mission Support, Federal Emergency Management
Agency, Department of Homeland Security.
[FR Doc. 2019-26508 Filed 12-9-19; 8:45 am]
BILLING CODE 9111-52-P


[Federal Register Volume 78, Number 13 (Friday, January 18, 2013)]
[Rules and Regulations]
[Pages 4047-4050]
[FR Doc No: 2013-00895]

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

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA-2012-0299; Directorate Identifier 2011-NM-029-AD;
Amendment 39-17295; AD 2012-25-13]
RIN 2120-AA64

Airworthiness Directives; The Boeing Company Airplanes

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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

SUMMARY: We are adopting a new airworthiness directive (AD) for certain
The Boeing Company Model 747-100, 747-200B, 747-200C, 747-200F, 747-
300, 747-400, 747-400F, and 747SR series airplanes. This AD was
prompted by reports of broken and damaged latch pin retention bolts and
subsequent migration of the latch pins of the main deck side cargo door
(MDSCD). This AD requires various repetitive inspections of the MDSCD
latch pin fittings, measuring the latch pin, and related investigative
and corrective actions if necessary. This AD also requires modifying
the latch pin fittings and installing new latch pins and latch pin
fasteners. We are issuing this AD to prevent loss of the cargo door and
rapid depressurization of the airplane.

DATES: This AD is effective February 22, 2013.
    The Director of the Federal Register approved the incorporation by
reference of certain publications listed in the AD as of February 22,
2013.

ADDRESSES: For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management, P.
O. Box 3707, MC 2H-65, Seattle, WA 98124-2207; phone:<PHONE_NUMBER>,
extension 1; fax:<PHONE_NUMBER>; Internet: https://www.myboeingfleet.com. You may review copies of the referenced service
information at the FAA, Transport Airplane Directorate, 1601 Lind
Avenue SW., Renton, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.

Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov; or in person at the Docket Management Facility
between 9 a.m. and 5 p.m., Monday through Friday, except Federal
holidays. The AD docket contains this AD, the regulatory evaluation,
any comments received, and other information. The address for the
Docket Office (phone:<PHONE_NUMBER>) is Document Management Facility,
U.S. Department of Transportation, Docket Operations, M-30, West
Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE.,
Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT: Bill Ashforth, Aerospace Engineer,
Airframe Branch, ANM-120S, FAA, Seattle Aircraft Certification Office
(ACO), 1601 Lind Avenue SW., Renton, WA 98057-3356; phone: 425-917-
6432; fax:<PHONE_NUMBER>; email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR
part 39 to include an AD that would apply to the specified products.
That NPRM published in the Federal Register on March 27, 2012 (77 FR
18137). That NPRM proposed to require various repetitive inspections of
the MDSCD latch pin fittings, measuring the latch pin, and related
investigative and corrective actions if necessary. That NPRM also
proposed to require modifying the latch pin fittings and installing new
latch pins and latch pin fasteners.

Comments

    We gave the public the opportunity to participate in developing
this AD. The following presents the comments received on the proposal
(77 FR 18137, March 27, 2012) and the FAA's response to each comment.

Requests To Change Applicability

    Boeing and Thai Airways International PCL requested that we limit
the applicability of the NPRM (77 FR 18137, March 27, 2012) to
airplanes with a Boeing-certified MDSCD instead of airplanes identified
in Boeing Alert Service Bulletin 747-52A2294, Revision 1, dated August
16, 2011. The commenters requested this change to ensure that airplanes
modified in the future to Model 747-400 Boeing Converted Freighter
(BCF) with an MDSCD installation are inspected and modified per the
intent of Boeing Alert Service Bulletin 747-52A2294, Revision 1, dated
August 16, 2011.
    We partially agree with changing the applicability. The AD already
provides coverage for the future Model 747-400 BCF airplanes with an
MDSCD installation. That is, the applicability of the AD specifies
Model 747-100, 747-200B, 747-200C, 747-200F, 747-300, 747-400, 747-
400F, and 747SR series airplanes, certificated in any category, as
identified in Boeing Alert Service Bulletin 747-52A2294, Revision 1,
dated August 16, 2011. This service information identifies Model 747-
100, 747-200B, 747-200C, 747-200F, 747-300, 747-400, and 747-400F
airplanes with an MDSCD installed in production or by a Boeing-approved
modification. For clarification, per the Type Certificate Data Sheet
(TCDS) for those airplanes, Model 747-400 BCF and 747-400 Special
Freighter (SF) airplanes remain as Model 747-400 series airplanes for
documentation purposes on the TCDS and with regard to the applicability
of ADs. Where Boeing Alert Service Bulletin 747-52A2294, Revision 1,
dated August 16, 2011, specifies ``all'' airplanes, this means past,
present, and future airplanes.
    However, we found that Boeing Alert Service Bulletin 747-52A2294,
Revision 1, dated August 16, 2011, does not currently provide a grace
period for airplanes that have been modified with an MDSCD after the
initial compliance time of 6 months after the effective date of this
AD. Therefore, the initial compliance time specified in paragraph (g)
of this AD has been modified to add a grace period for airplanes that
are modified with an MDSCD after the effective date of this AD.
Additionally, the initial compliance time reference to paragraph 1.E.,
``Compliance,'' of Boeing Alert Service Bulletin 747-52A2294, Revision
1, dated August 16, 2011, as revised by Boeing Alert Service Bulletin
747-52A2294, Revision 2, dated December 12, 2011, has been removed from
paragraph (g) of this final rule.

Request To Change Service Information Reference

    Boeing requested that we change the service information reference
in paragraphs (g), (h), (i), and (j) of the NPRM (77 FR 18137, March
27, 2012) from Boeing Alert Service Bulletin 747-52A2294, Revision 1,
dated August 16,

2011, as revised by Boeing Alert Service Bulletin 747-52A2294, Revision
2, dated December 12, 2011, to Revision 3 of that service information.
(Since Revision 3 has not been published, there is no issue date.)
Boeing stated that Revision 3 of Boeing Alert Service Bulletin 747-
52A2294 will be a full revision that will ``update the effectivity list
of Model 747-400 BCF airplanes,'' and will incorporate changes
identified during validation, which was accomplished in March 2012.
Boeing stated that Revision 3 of Boeing Alert Service Bulletin 747-
52A2294 will add no new work for airplanes having previously
incorporated the actions specified in Boeing Alert Service Bulletin
747-52A2294, Revision 1, dated August 16, 2011; or Revision 2, dated
December 12, 2011.
    We disagree with referencing Revision 3 of Boeing Alert Service
Bulletin 747-52A2294 in this final rule. Boeing has not submitted
Revision 3 of Boeing Alert Service Bulletin 747-52A2294 for FAA
approval. We consider it inappropriate to delay correcting the
identified unsafe condition to wait for this new service information
revision. However, after Revision 3 of Boeing Alert Service Bulletin
747-52A2294 is FAA-approved and issued, operators may submit requests
for approval of alternative methods of compliance (AMOCs) under the
provisions of paragraph (l) of this AD to use Revision 3. We have not
changed the final rule in this regard.

Request To Change Credit for Previous Actions

    Boeing requested that we change paragraph (k) of the NPRM (77 FR
18137, March 27, 2012) to also give credit for actions required by
paragraphs (g) and (h) of the NPRM, if those actions were performed
before the effective date of the AD using Boeing Alert Service Bulletin
747-52A2294, Revision 1, dated August 16, 2011, as revised by Boeing
Alert Service Bulletin 747-52A2294, Revision 2, dated December 12,
2011. Boeing stated that this request is related to its request to
replace the service information reference in paragraphs (g), (h), (i),
and (j) of the NPRM from Boeing Alert Service Bulletin 747-52A2294,
Revision 1, dated August 16, 2011, as revised by Boeing Alert Service
Bulletin 747-52A2294, Revision 2, dated December 12, 2011, to Revision
3 of that service information.
    We partially agree. We agree to provide credit for Boeing Alert
Service Bulletin 747-52A2294, Revision 1, dated August 16, 2011, before
its revision by Boeing Alert Service Bulletin 747-52A2294, Revision 2,
dated December 12, 2011. However, since we have not changed the AD to
refer to Revision 3 of Boeing Alert Service Bulletin 747-52A2294, we
disagree with specifying credit for using Boeing Alert Service Bulletin
747-52A2294, Revision 1, dated August 16, 2011, as revised by Boeing
Alert Service Bulletin 747-52A2294, Revision 2, dated December 12,
2011. We have changed paragraph (k) of this AD to specify credit for
the actions required by paragraphs (g) and (h) of this AD performed
before the effective date of this AD using Boeing Alert Service
Bulletin 747-52A2294, dated July 8, 2010; or Boeing Alert Service
Bulletin 747-52A2294, Revision 1, dated August 16, 2011, before its
revision by Boeing Alert Service Bulletin 747-52A2294, Revision 2,
dated December 12, 2011.

Request To Change Unsafe Condition Statement

    Boeing requested that we modify the unsafe condition statement in
the NPRM (77 FR 18137, March 27, 2012) by removing the reference to
broken latch pin fittings. Boeing stated that Boeing Alert Service
Bulletin 747-52A2294, dated July 8, 2010, was prompted by broken
retention bolts and the subsequent migration of the latch pins rather
than by the broken latch pin fittings. Boeing also stated that the
service information recommends inspecting the latch pin fittings for
damage, but that no broken latch pin fittings have been associated with
this issue.
    We agree with the commenter's request. We have changed the Summary
and paragraph (e) of the AD to state that this AD was prompted by
reports of broken and damaged latch pin retention bolts and subsequent
migration of the latch pins of the MDSCD.

Request To Add Federal Aviation Regulation Reference

    Boeing requested that we add a reference to paragraph (b) of
section 25.571 of the Federal Aviation Regulations (14 CFR 25.571) to
paragraph (l)(3), ``Alternative Methods of Compliance (AMOCs),'' of the
NPRM (77 FR 18137, March 27, 2012). Boeing stated that paragraph (b) is
the specific paragraph of 14 CFR 25.571, Amendment 45, that requires
compliance for the Model 747 airframe beyond the original certification
basis.
    We find that clarification is necessary. The reference to section
25.571 of the Federal Aviation Regulations (14 CFR 25.571), Amendment
45, was included inadvertently in paragraph (l)(3) of the NPRM (77 FR
18137, March 27, 2012). Therefore, we have revised paragraph (l)(3) of
this final rule to remove the reference to ``14 CFR 25.571, Amendment
45.''

Request To Change Compliance Time for Deactivated MDSCDs

    KLM Royal Dutch Airlines (KLM) requested that we add alternative
compliance times to the NPRM (77 FR 18137, March 27, 2012) for
deactivated MDSCDs. KLM stated that a deactivated MDSCD is much less
susceptible to mechanical defects than an activated door. KLM suggested
that an initial inspection within 6 months after the effective date of
the AD, and a modification as required by paragraph (h) of the NPRM
within 48 months after the effective date of the AD, would be
sufficient to maintain a safe condition. KLM noted that a similar
alternative was made for deactivated main entry doors in paragraph (f)
of AD 2007-12-11, Amendment 39-15089 (72 FR 31984, June 11, 2007).
    We agree that a deactivated MDSCD is much less susceptible to
mechanical defects than an activated door. We have changed paragraphs
(g) and (i) of this AD to reference an exception in new paragraph
(j)(3) of this AD, which states that the repetitive inspections
required by paragraphs (g) and (i) of this AD are not applicable to a
deactivated MDSCD. The initial inspection required by paragraph (g) of
this AD and modifications and replacements required by paragraph (h) of
this AD are still applicable to a deactivated MDSCD. In addition, when
the MDSCD is reactivated, the repetitive inspections required by
paragraphs (g) and (i) of this AD are applicable and must be done at
intervals not to exceed those specified in paragraph 1.E.,
``Compliance,'' of Boeing Alert Service Bulletin 747-52A2294, Revision
1, dated August 16, 2011, as revised by Boeing Alert Service Bulletin
747-52A2294, Revision 2, dated December 12, 2011.

Conclusion

    We reviewed the relevant data, considered the comments received,
and determined that air safety and the public interest require adopting
the AD with the changes described previously and minor editorial
changes. We have determined that these minor changes:
     [Agr]re consistent with the intent that was proposed in
the NPRM (77 FR 18137, March 27, 2012) for correcting the unsafe
condition; and
     Do not add any additional burden upon the public than was
already proposed in the NPRM (77 FR 18137, March 27, 2012).

    We also determined that these changes will not increase the
economic burden on any operator or increase the scope of the AD.

Costs of Compliance

    We estimate that this AD affects 77 airplanes of U.S. registry.
    We estimate the following costs to comply with this AD:

                                                 Estimated Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost on U.S.
              Action                    Labor cost        Parts cost      Cost per product        operators
----------------------------------------------------------------------------------------------------------------
Detailed inspection, including     4 work-hours x $85               $0  $340 per inspection  $26,180 per
 torque check.                      per hour = $340                      cycle.               inspection cycle.
                                    per inspection
                                    cycle.
Modification.....................  11 work-hours x $85           5,530  $6,465.............  $497,805.
                                    per hour = $935.
Post-modification detailed         2 work-hours x $85                0  $170 per inspection  $13,090 per
 inspection.                        per hour = $170                      cycle.               inspection cycle.
                                    per inspection
                                    cycle.
----------------------------------------------------------------------------------------------------------------

    We estimate the following costs to do necessary repairs and
replacements that would be required based on the results of the
inspection. We have no way of determining the number of aircraft that
might need these repairs.

                                               On-Condition Costs
----------------------------------------------------------------------------------------------------------------
                                                                                Cost per
                    Action                                 Labor cost               Parts cost        product
----------------------------------------------------------------------------------------------------------------
Repair/replacements (Groups 1 and 2 airplanes)  7 work-hours x $85 per hour =            $11,478         $12,073
                                                 $595.
Repair/replacements (Group 3 airplanes).......  7 work-hours x $85 per hour =             12,254          12,849
                                                 $595.
----------------------------------------------------------------------------------------------------------------

Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to
issue rules on aviation safety. 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.
    We are issuing this rulemaking under the authority described in
Subtitle VII, Part A, Subpart III, Section 44701: ``General
requirements.'' Under that section, Congress charges the FAA with
promoting safe flight of civil aircraft in air commerce by prescribing
regulations for practices, methods, and procedures the Administrator
finds necessary for safety in air commerce. This regulation is within
the scope of that authority because it addresses an unsafe condition
that is likely to exist or develop on products identified in this
rulemaking action.

Regulatory Findings

    This AD will not have federalism implications under Executive Order
13132. This AD will not have a substantial direct effect on the States,
on the relationship between the national government and the States, or
on the distribution of power and responsibilities among the various
levels of government.
    For the reasons discussed above, I certify that this AD:
    (1) Is not a ``significant regulatory action'' under Executive
Order 12866,
    (2) Is not a ``significant rule'' under DOT Regulatory Policies and
Procedures (44 FR 11034, February 26, 1979),
    (3) Will not affect intrastate aviation in Alaska, and
    (4) Will not have a significant economic impact, positive or
negative, on a substantial number of small entities under the criteria
of the Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by
reference, Safety.

Adoption of the Amendment

    Accordingly, under the authority delegated to me by the
Administrator, the FAA amends 14 CFR part 39 as follows:

PART 39--AIRWORTHINESS DIRECTIVES

0
1. The authority citation for part 39 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 40113, 44701.

Sec.  39.13  [Amended]

0
2. The FAA amends Sec.  39.13 by adding the following new airworthiness
directive (AD):

2012-25-13 The Boeing Company: Amendment 39-17295; Docket No. FAA-
2012-0299; Directorate Identifier 2011-NM-029-AD.

(a) Effective Date

    This AD is effective February 22, 2013.

(b) Affected ADs

    None.

(c) Applicability

    This AD applies to The Boeing Company Model 747-100, 747-200B,
747-200C, 747-200F, 747-300, 747-400, 747-400F, and 747SR series
airplanes; certificated in any category; as identified in Boeing
Alert Service Bulletin 747-52A2294, Revision 1, dated August 16,
2011.

(d) Subject

    Joint Aircraft System Component (JASC)/Air Transport Association
(ATA) of America Code 52, Doors.

(e) Unsafe Condition

    This AD was prompted by reports of broken and damaged latch pin
retention bolts and subsequent migration of the latch pins of the
main deck side cargo door (MDSCD). We are issuing this AD to prevent
loss of the cargo door and rapid depressurization of the airplane.

(f) Compliance

    Comply with this AD within the compliance times specified,
unless already done.

(g) Inspection and Corrective Action

    At the applicable time specified in paragraph (g)(1) or (g)(2)
of this AD, whichever occurs later: Do a detailed inspection of the
ten MDSCD latch pin fittings to detect loose, broken, damaged, or
missing retention bolts and nuts; measure the latch pin diameter;
and do all applicable related investigative and corrective actions,
except as required by paragraph (j)(1) of this AD; in accordance
with the Accomplishment Instructions of Boeing Alert Service
Bulletin 747-52A2294, Revision 1, dated August 16, 2011, as revised
by Boeing Alert Service

Bulletin 747-52A2294, Revision 2, dated December 12, 2011. Do all
applicable related investigative and corrective actions before
further flight. Repeat the inspection thereafter, except as required
by paragraph (j)(3) of this AD, at intervals not to exceed those
specified in paragraph 1.E., ``Compliance,'' of Boeing Alert Service
Bulletin 747-52A2294, Revision 1, dated August 16, 2011, as revised
by Boeing Alert Service Bulletin 747-52A2294, Revision 2, dated
December 12, 2011.
    (1) Within 6 months after the effective date of this AD.
    (2) Within 6 months after the installation of an MDSCD installed
in Boeing production or by a Boeing-approved modification.

(h) Modification of Latch Pin Fittings and Replacement of Latch Pins
and Latch Pin Retention Fasteners

    At the time specified in paragraph 1.E., ``Compliance,'' of
Boeing Alert Service Bulletin 747-52A2294, Revision 1, dated August
16, 2011, as revised by Boeing Alert Service Bulletin 747-52A2294,
Revision 2, dated December 12, 2011, except as provided by paragraph
(j)(2) of this AD: Modify the 10 MDSCD latch pin fittings, replace
the latch pins with new latch pins, and replace the latch pin
retention fasteners with new latch pin retention fasteners, except
as required by paragraph (j)(1) of this AD, in accordance with the
Accomplishment Instructions of Boeing Alert Service Bulletin 747-
52A2294, Revision 1, dated August 16, 2011, as revised by Boeing
Alert Service Bulletin 747-52A2294, Revision 2, dated December 12,
2011. Accomplishment of the actions specified in paragraph (h) of
this AD terminates the inspection required in paragraph (g) of this
AD.

(i) Post-Modification Inspection and Corrective Action

    At the applicable compliance time specified in paragraph 1.E.,
``Compliance,'' of Boeing Alert Service Bulletin 747-52A2294,
Revision 1, dated August 16, 2011, as revised by Boeing Alert
Service Bulletin 747-52A2294, Revision 2, dated December 12, 2011,
except as provided by paragraph (j)(2) of this AD: Do a detailed
inspection of the 10 MDSCD latch pin fittings to detect loose,
broken, damaged, or missing retention bolts and nuts; measure the
latch pin diameter; and do all applicable related investigative and
corrective actions, except as required by paragraph (j)(1) of this
AD; in accordance with the Accomplishment Instructions of Boeing
Alert Service Bulletin 747-52A2294, Revision 1, dated August 16,
2011, as revised by Boeing Alert Service Bulletin 747-52A2294,
Revision 2, dated December 12, 2011. Do the applicable related
investigative and corrective actions before further flight. Repeat
the inspection thereafter, except as required by paragraph (j)(3) of
this AD, at intervals not to exceed those specified in paragraph
1.E., ``Compliance,'' of Boeing Alert Service Bulletin 747-52A2294,
Revision 1, dated August 16, 2011, as revised by Boeing Alert
Service Bulletin 747-52A2294, Revision 2, dated December 12, 2011.

(j) Exceptions to Service Bulletin Specifications

    (1) If any damage is found during any inspection required by
this AD, and Boeing Alert Service Bulletin 747-52A2294, Revision 1,
dated August 16, 2011, as revised by Boeing Alert Service Bulletin
747-52A2294, Revision 2, dated December 12, 2011, specifies to
contact Boeing for appropriate action: Before further flight, repair
using a method approved in accordance with the procedures specified
in paragraph (l) of this AD.
    (2) Where Boeing Alert Service Bulletin 747-52A2294, Revision 1,
dated August 16, 2011, as revised by Boeing Alert Service Bulletin
747-52A2294, Revision 2, dated December 12, 2011, specifies a
compliance time relative to the issue date of that service bulletin,
this AD requires compliance within the specified compliance time
after the effective date of this AD.
    (3) The repetitive inspections required by paragraphs (g) and
(i) of this AD are not applicable to a deactivated MDSCD. However,
the initial inspection required by paragraph (g) of this AD and
modifications and replacements required by paragraph (h) of this AD
are still applicable to a deactivated MDSCD. When the MDSCD is
reactivated, the repetitive inspections required by paragraphs (g)
and (i) of this AD are applicable and must be done thereafter at
intervals not to exceed those specified in paragraph 1.E.,
``Compliance,'' of Boeing Alert Service Bulletin 747-52A2294,
Revision 1, dated August 16, 2011, as revised by Boeing Alert
Service Bulletin 747-52A2294, Revision 2, dated December 12, 2011.

(k) Credit for Previous Actions

    This paragraph provides credit for actions required by
paragraphs (g) and (h) of this AD, if those actions were performed
before the effective date of this AD using Boeing Alert Service
Bulletin 747-52A2294, dated July 8, 2010, which is not incorporated
by reference in this AD; or Boeing Alert Service Bulletin 747-
52A2294, Revision 1, dated August 16, 2011, before its revision by
Boeing Alert Service Bulletin 747-52A2294, Revision 2, dated
December 12, 2011.

(l) Alternative Methods of Compliance (AMOCs)

    (1) The Manager, Seattle Aircraft Certification Office, FAA, has
the authority to approve AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector or local Flight
Standards District Office, as appropriate. If sending information
directly to the manager of the ACO, send it to the attention of the
person identified in the Related Information section of this AD.
Information may be emailed to<EMAIL_ADDRESS>    (2) Before using any approved AMOC, notify your appropriate
principal inspector, or lacking a principal inspector, the manager
of the local flight standards district office/certificate holding
district office.
    (3) An AMOC that provides an acceptable level of safety may be
used for any repair required by this AD if it is approved by the
Boeing Commercial Airplanes Organization Designation Authorization
(ODA) that has been authorized by the Manager, Seattle ACO, to make
those findings. For a repair method to be approved, the repair must
meet the certification basis of the airplane and the approval must
specifically refer to this AD.

(m) Related Information

    (1) For more information about this AD, contact Bill Ashforth,
Aerospace Engineer, Airframe Branch, ANM-120S, Seattle Aircraft
Certification Office (ACO), FAA, 1601 Lind Avenue SW., Renton, WA
98057-3356; phone:<PHONE_NUMBER>; fax:<PHONE_NUMBER>; email:
<EMAIL_ADDRESS>    (2) For service information identified in this AD, contact
Boeing Commercial Airplanes, Attention: Data & Services Management,
P.O. Box 3707, MC 2H-65, Seattle, WA 98124-2207; phone: 206-544-
5000, extension 1; fax:<PHONE_NUMBER>; Internet: https://www.myboeingfleet.com.

(n) Material Incorporated by Reference

    (1) The Director of the Federal Register approved the
incorporation by reference (IBR) of the service information listed
in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.
    (2) You must use this service information as applicable to do
the actions required by this AD, unless the AD specifies otherwise.
    (i) Boeing Alert Service Bulletin 747-52A2294, Revision 1, dated
August 16, 2011.
    (ii) Boeing Alert Service Bulletin 747-52A2294, Revision 2,
dated December 12, 2011.
    (3) For The Boeing Company service information identified in
this AD, contact Boeing Commercial Airplanes, Attention: Data &
Services Management, P.O. Box 3707, MC 2H-65, Seattle, WA 98124-
2207; phone:<PHONE_NUMBER>, extension 1; fax:<PHONE_NUMBER>; Internet:
https://www.myboeingfleet.com.
    (4) You may review copies of the referenced service information
at the FAA, Transport Airplane Directorate, the FAA, 1601 Lind
Avenue SW., Renton, WA. For information on the availability of this
material at the FAA, call<PHONE_NUMBER>.
    (5) You may view this service information that is incorporated
by reference at the National Archives and Records Administration
(NARA). For information on the availability of this material at
NARA, call<PHONE_NUMBER>, or go to: http://www.archives.gov/federal-register/cfr/ibr-locations.html.

    Issued in Renton, Washington, on December 12, 2012.
Ali Bahrami,
Manager, Transport Airplane Directorate, Aircraft Certification
Service.
[FR Doc. 2013-00895 Filed 1-17-13; 8:45 am]
BILLING CODE 4910-13-P