[Federal Register: July 20, 2010 (Volume 75, Number 138)]
[Rules and Regulations]
[Page 41968-41983]
[DOCID:fr20jy10-2]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Parts 13, 47, and 91

[Docket No. FAA-2008-0188; Amendment Nos. 13-34, 47-29, 91-318]
RIN 2120-AI89

Re-Registration and Renewal of Aircraft Registration

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Final rule.

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SUMMARY: This final rule amends the FAA's regulations concerning
aircraft registration. Over a 3-year period, this rule will terminate
the registration of all aircraft registered before October 1, 2010, and
will require the re-registration of each aircraft to retain U.S. civil
aircraft status. These amendments also establish a system for a 3-year
recurrent expiration and renewal of registration for all aircraft
issued registration certificates on or after October 1, 2010. This
final rule amends the FAA's regulations to provide standards for the
timely cancellation of registration numbers (N-numbers) for
unregistered aircraft. This final rule makes other minor changes to
establish consistency and ensure the regulations conform to statute or
current Registry practices. These amendments will improve the accuracy
of the Civil Aviation Registry database and will ensure that aircraft
owners provide information to maintain accurate registration records.
These amendments respond to the concerns of law enforcement and other
government agencies to provide more accurate, up-to-date aircraft
registration information.

DATES: These amendments become effective October 1, 2010.

FOR FURTHER INFORMATION CONTACT: For technical questions concerning
this final rule contact John Bent, Civil Aviation Registry, AFS-700,
FAA Mike Monroney Aeronautical Center, 6500 South MacArthur Boulevard,
Oklahoma City, OK 73169; Telephone<PHONE_NUMBER>; e-mail
<EMAIL_ADDRESS>For legal questions concerning this final rule
contact Robert Hawks, Office of Chief Counsel, (AGC-240); Federal
Aviation Administration, 800 Independence Avenue, SW., Washington, DC
20591; Telephone:<PHONE_NUMBER>; e-mail<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is
found in Title 49 of the United States Code. Subtitle I, Section 106
describes the authority of the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more detail the scope of the agency's
authority.
    This rulemaking is promulgated under the authority described in
Subtitle VII, Part A, Subpart III, Chapter 441, Section 44111. Under
that section, the FAA is charged with prescribing regulations
considered necessary to carry out this part. In that section, Congress
mandated the Administrator modify the system for registering and
recording aircraft necessary to make the system more effective in
serving the needs of its users. The modifications described in this
amendment include measures to ensure positive, verifiable, and timely
identification of the true owners of aircraft operated in the national
airspace system. Thus, these changes are within the scope of the FAA's
statutory authority and are a necessary and reasonable exercise of that
authority.

Table of Contents

I. Executive Summary of the Final Rule
II. Background
III. Summary of Comments
IV. Discussion of Final Rule
    A. Aircraft Re-Registration and Periodic Renewal of Registration
    B. Reminder Notice, Extended Filing Timeframes, and Online
Access
    C. Triennial Aircraft Registration Report No Longer Required
    D. Time Limits for Aircraft in Sale Reported and Registration
Pending Status
    E. Conforming Amendments
V. Miscellaneous Comments
    A. Re-Registration and Renewal
    B. Risks and Disruption
    C. Fees, User Fees, New Taxes
    D. Alternatives Suggested by Commenters
VI. Regulatory Notices and Analyses
    A. Paperwork Reduction Act
    B. International Compatibility
    C. Regulatory Evaluation, Regulatory Flexibility Determination,
International Trade Impact Assessment, and Unfunded Mandates
Assessment
    D. Executive Order 13132, Federalism
    E. Environmental Analysis
    F. Regulations that Significantly Affect Energy Supply,
Distribution, or Use
    G. Availability of Rulemaking Documents
    H. Small Business Regulatory Enforcement Fairness Act

I. Executive Summary

    The FAA estimates that approximately one-third of the 357,000
registered aircraft records it maintains are inaccurate and that many
aircraft associated with those records are likely ineligible for United
States registration. The inaccuracies result from failures in the
voluntary compliance based system. Although aircraft owners are
required to report the sale of an aircraft, death of an owner,
scrapping or destruction of an aircraft, and changes in mailing
address; many have not. Without owner initiated action, there has been
no means to correct those records. The FAA has been asked by government
and law enforcement agencies to provide more accurate and up-to-date
aircraft registration information. This rule is intended to support the
needs of our system users.
    The changes made by this Final Rule provide the FAA Aircraft
Registry the tools to improve the currency and accuracy of the Civil
Aircraft Registry database and maintain the improvement into the
future. Re-registration of all U.S. civil aircraft over a three year
period will redraw the Civil Aircraft Register with current data
derived from recent contact with aircraft owners. Additionally, the FAA
is enabled to cancel the registrations of those aircraft that are not
re-registered. These amendments will also ensure that aircraft owners
refresh that data by providing information on the status of their
aircraft at least once every three years when registration is renewed.
The expected reduction in registration data error provided by this rule
and the corresponding cost of implementation is shown in the table
below with estimates for alternate renewal intervals that were
considered.
    This rule also eliminates the present Triennial Aircraft
Registration Report Program, provides clear time limits and standards
for canceling aircraft with registrations that have ended and for which
no new registration application has been made or completed. It also
makes several administrative changes to conform the regulation to
statute and current registration practices.
    An NPRM was published in the Federal Register on February 28, 2008
(73 FR 10701), requesting input on these goals and the proposed
procedures to achieve them. Significant comments addressed concern that
the proposed fee for registration renewal, which occurs every third
year, would be increased and used as a device to raise revenue:

that the recurrent nature of renewal would create excessive
opportunities for administrative failure that would interfere with
revenue flights; and that the rule would cause significant new costs
for owners, operators and financiers that work with multiple aircraft
that had not been accounted for in estimates of the cost of the
proposed rule. This final rule is responsive to these and other
comments as addressed in the discussion that follows.

                            Summary of Costs and Benefits in Millions of 2007 Dollars
                                                 [Over 20 years]
----------------------------------------------------------------------------------------------------------------
                                                    Present value
                                        Cost           of cost                        Benefit
----------------------------------------------------------------------------------------------------------------
Re-registration and 3-Year                  $29.9           $16.3  Reduction in Error Rate by 31%.
 Renewal (Triennial Eliminated).
----------------------------------------------------------------------------------------------------------------

    Re-registration lowers the error rate from 36.5% to 5.7% for an
improvement of 31%.
    Renewal every third year maintains this improvement.

II. Background

    The Aircraft Registration Branch (the ``Registry'') is responsible
for developing, maintaining, and administering national programs for
the registration of United States civil aircraft. First among these
responsibilities is maintaining the registration database. The database
identifies each registered aircraft by its registration number (N-
number), its complete description, and the name and address of its
registered owner.
    Registration is a prerequisite for obtaining an airworthiness
certificate, and together a registration certificate and airworthiness
certificate enable operation of an aircraft in U.S. and foreign
airspace. The FAA uses the information collected at the time of
registration to communicate safety-related information such as
Airworthiness Directives to aircraft owners. Similarly, aircraft
manufacturers use this information to send out safety notices and other
information. The FAA relies on the registration database when
responding to an overdue flight or downed aircraft report and when
enforcing its regulations. Law enforcement agencies rely on the
registration database when investigating improper activities such as
drug smuggling. The registration database is used to identify aircraft
that could be used by U.S. armed forces. It also is a resource for
buyers and sellers of aircraft and for banks that may finance those
transactions.
    The FAA and other government agencies are increasingly developing
sophisticated uses that are enabled by progressing technology. An
example is Automatic Detection and Processing Terminal or ADAPT, a
program developed by the FAA Strategic Operations Security with the
Transportation Security Administration (TSA). (See 70 FR 73323,
December 9, 2005.) This program continuously draws registration
information for combination with other data, satellite feeds, and radar
to develop a display of the national airspace complete with the
registration status of each aircraft that is operating on a filed
flight plan. Using this information, appropriate safety, security, and
law enforcement actions can be initiated. The development of the ADAPT
program and other safety- and security-related programs demand an
accurate database.
    Today, approximately one-third of the 357,000 registered aircraft
have questionable registrations. There are many causes for this large
number of potentially inaccurate aircraft records. Failure to re-
register an aircraft after a sale to a new owner, failure to report the
death of an owner, failure to report scrapping or destruction of
aircraft, and failure to report changes of address erode the accuracy
of the records. A requirement for registered owners to notify the
Registry of these and other registration-related changes has been part
of the registration regulations for many years. The number of
questionable records in the registration database grows annually
despite these requirements.
    In 1988, the FAA mission was expanded to include providing
assistance to law enforcement agencies through the passage of the FAA
Drug Enforcement Assistance Act of 1988 (the Act) (partially codified
at 49 U.S.C. 44111). The Act charged the FAA with making specific
modifications to the registration database to more effectively serve
the needs of buyers and sellers of aircraft, law enforcement officials,
and other users of the system. The FAA has addressed most of the issues
identified in the Act and improved service to users through
administrative modifications, technology upgrades, and focused
enforcement programs. Access to aircraft data and most individual
aircraft records is easy and routine.
    Although the FAA has worked to keep the registration database
accurate and current, the Registry's ability to get timely updates of
registration changes from aircraft owners is limited. From March 1970
through January 1978, registered owners were required to file an annual
report. Beginning in April 1980, the Triennial Aircraft Registration
program required a report from registered owners when 3 years passed
without the occurrence of certain aircraft registration activities.
Under both programs, failure to send in the required report subjected
the aircraft's registration certificate to revocation under 14 CFR part
13.
    While a large portion of aircraft owners have and continue to
report changes both independently and in response to a report notice, a
significant portion of reports continue to be returned as undeliverable
or not returned at all. Many orders revoking the prior owner's
certificate of registration are returned as undeliverable. Because the
new aircraft owner could be operating the aircraft on an ineffective
and revoked certificate, the aircraft are kept in the system to prevent
reassignment of the N-number to a second active aircraft.
    Notwithstanding administrative modifications to the registration
system, and enforcement efforts, there is an increasing number of
registered aircraft whose status is in question or whose owner cannot
be contacted. With approximately one-third of registered aircraft
assigned a questionable registration status, the present system of
indefinite-duration registration certificates does not achieve the
necessary accuracy and currency of aircraft registration data.
Modifications to the aircraft registration system must be made to
achieve a level of registration data reliability that meets the current
and evolving needs of users. The FAA has determined that the most
effective method for increasing the accuracy of its records is the
establishment of limited-duration aircraft registration with clear
standards for canceling N-number assignments when a registration
expires or otherwise ends. The 3-year re-registration period will clear
the registration database of aircraft with questionable registration.

Recurrent renewal at regular intervals will maintain the improved
accuracy.
    The NPRM published in the Federal Register on February 28, 2008 (73
FR 10701) proposed:
     Expiration of registration for all currently registered
aircraft and their re-registration as scheduled over a 3-year period;
     Recurrent expiration and renewal on a 3-year interval of
all aircraft registrations issued after the effective date of the
proposed rule with a registration renewal process;
     Elimination of the present Triennial Aircraft Registration
Report program;
     A 6-month limit on the time an aircraft may remain in the
sale reported category without an application being made for
registration before its N-number assignment is canceled;
     A 12-month limit on the time an applicant or successive
applicants for registration have to complete the registration process,
and provisions for reserving the aircraft's N-number if the aircraft is
not registered at the end of this time; and,
     Cancellation of the N-number of an aircraft registered
under a Dealer's Aircraft Registration Certificate (Dealer's
Certificate), if the Dealer's Certificate has expired and application
for registration has not been made under Sec.  47.31.
    The public comment period closed on May 28, 2008. Late-filed
comments posted through June 30, 2008 were accepted for consideration.

III. Summary of Comments

    The FAA received 94 comments on the NPRM. The commenters consisted
of aviation industry associations, air carriers, banks, finance
companies, law firms, and individuals. Most commenters expressed
multiple opinions, concerns, and suggestions, which were often repeated
by others. Common areas of concern are grouped by subject for response.

IV. Discussion of the Final Rule

A. Aircraft Re-Registration and Periodic Renewal of Registration

    As proposed in the NPRM, this rule adopts the expiration and re-
registration of all registered aircraft over a 3-year period, followed
by the expiration and renewal of aircraft registration at 3-year
intervals. This rule establishes the expiration of registration for all
aircraft registered before October 1, 2010, and provides for the re-
registration of all aircraft over a 3-year period according to the
schedule provided in Sec.  47.40(a)(1). It also establishes the
recurrent expiration and renewal of registration at 3-year intervals
for all aircraft issued registration on or after October 1, 2010, in
Sec.  47.40(c). The expiration date printed on the registration
certificate of aircraft registered or re-registered after October 1,
2010, will be 3 years from the last day of the month in which
registration or re-registration occurred as provided in Sec.  47.40(a)
and (b). A renewed aircraft registration will expire 3 years from the
previous expiration date in accordance with Sec.  47.40(c). Replacement
registration certificates issued on or after October 1, 2010, will
display the same expiration date that was shown on the replaced
registration certificate. If the replaced registration certificate did
not display an expiration date, the replacement certificate will
display the expiration date indicated in Sec.  47.40 based on the month
of issue of the replaced registration certificate. Replacement
certificates are issued after an address update, an N-number change, or
the report of a lost or mutilated certificate. A replacement does not
constitute re-registration or renewal.
    Several commenters, particularly aircraft operators and aviation
financing and leasing companies, expressed concern over the re-
registration and periodic renewal of registration. Some commenters
preferred, as an alternative to the proposal, updating the triennial
program by ``putting teeth'' into its enforcement. This would include
enforcing the requirement to return the triennial report even when no
change has occurred and imposing fines or canceling registration when
there is no compliance. The FAA has considered these alternatives and
has determined they would not resolve the issues addressed by this
rule. The ``teeth'' suggested (such as fines or cancellation for an
owner not replying to the triennial) are the same options available to
the FAA today. In appropriate cases, the FAA has and will continue to
pursue enforcement actions as provided for in 14 CFR part 13. However,
the purpose of this final rule is to maintain an accurate registry
database, and the FAA has determined that re-registration and renewal
of all aircraft registrations is the most efficient way to accomplish
that purpose.
    Existing Sec.  47.51 requires the return of the triennial reports
without changes. However, without an effective way of dealing with
reports that were not returned or returned as undeliverable, the
requirement became an unnecessary expenditure of resources for both the
FAA and the public. Consequently, the instructions on the triennial
report stated that return was unnecessary if no change had occurred.
The FAA has concluded that recurrent registration expiration and
renewal is the only way to ensure a regular validation of aircraft
registration status and owner contact information. Therefore, as
proposed, Sec.  47.51 is removed.
    Commercial commenters contended that the FAA underestimated the
costs to some aircraft owners because aircraft registration often
involves multiple parties. A high percentage of commercial and
corporate aircraft, and a large number of general aviation aircraft,
are leased to third parties and may be subject to financing agreements.
These commenters stated they would need to implement systems to monitor
the status of aircraft registrations for re-registration and renewal
purposes. They also stated the costs of developing and maintaining such
systems would be significant. The costs would include the need to hire
an aviation professional to advise on, prepare, and file registration
documents. They stated that outside counsel (engaged at a minimum of
$350 per hour) would be required to review filings. Also, significant
time would be spent by the various parties communicating with each
other and with the FAA. Finally, they stated that an appropriate
employee (such as a mechanic) must place and document the placement of
the registration certificate in the aircraft. The commenters contended
the costs associated with taking the actions necessary to comply with
the regulations can be substantial for owners, operators, and financial
institutions dealing with large aircraft fleets and should have been
included in the regulatory evaluation.
    The FAA agrees that for certain aircraft owners, the cost in the
NPRM was underestimated. The FAA has revised its estimates of recurrent
costs to include the time needed to fill out the re-registration or
renewal application form, time for a legal review before the owner
signs the application, time for the owner to receive a registration
certificate and forward it to the aircraft operator, and time for the
operator to receive and place the registration certificate in the
aircraft. The FAA also has included one-time, start-up costs for
documenting in-house re-registration and renewal procedures and the
training of key personnel.
    Costs for actions not directly imposed by the rule, such as actions
a party might take for their own convenience or preference, were not
included. Among these were costs for hiring outside personnel to
interpret the new rule or assist with re-registration and renewal
processing and costs for establishing tracking systems. These were
classified as optional tools to assure compliance

that are chosen by the owner or other parties but not directly required
by the rule. Many operations already have a tracking system for
maintenance or scheduling aircraft. These systems could be modified or
adapted to help maintain aircraft registration by those who choose to
use this method. New registration certificates will have the expiration
dates printed on them to inform the pilot of the approaching
expiration. The Registry Web site also will show the expiration date
for individual aircraft and list aircraft that are pending re-
registration or renewal. Most importantly, aircraft owners who keep
their registration address current will receive two timely reminder
notices before the scheduled expiration date of their aircraft's
registration.
    The FAA recalculated the three 20-year scenarios presented in the
NPRM to include the additional operating and start-up cost addressed in
the previous paragraph. Each scenario starts with the 3-year re-
registration followed by 3-, 5-, and 7-year renewal cycles without a
triennial program. The chart that follows shows the comparative costs
and error rates achieved by these scenarios.

                         Estimated Costs and Error Rates for Re-Registration and Renewal
                                                 [Over 20 years]
----------------------------------------------------------------------------------------------------------------
                                                                                Inaccurately
                     Options                           Cost        Present value    Error rate      registered
                                                                       cost          (percent)       aircraft
----------------------------------------------------------------------------------------------------------------
Current Program.................................      $8,361,100      $4,428,900            36.5         132,100
Re-registration and 7-Year Renewal (Triennial          7,498,100       5,564,300            21.7          68,900
 Eliminated)....................................
Re-registration and 5-Year Renewal (Triennial         13,806,600       8,512,700            12.5          37,600
 Eliminated)....................................
Re-registration and 3-Year Renewal (Triennial         29,946,000      16,264,900             5.7          18,800
 Eliminated)....................................
----------------------------------------------------------------------------------------------------------------

    After comparing the results of these scenarios, the FAA has
determined the best balance between cost and improved accuracy is
provided by the 3-year re-registration followed by 3-year renewal
cycles and no triennial program. Overall, questionable or erroneous
registrations are expected to change from the current total error of
approximately 36.5% to a projected total error of approximately 5.7%.
While the alternative options cost less, the projected total error rate
for each is significantly higher than the 3-year renewal option. The
Regulatory Evaluation contains a detailed discussion of how costs were
determined with an explanation of the calculations behind these
scenarios.
    Re-registration of all aircraft and periodic renewal of
registration will result in a more accurate database that will benefit
all users. Law enforcement and security agencies will have access to
more accurate registration records, which should increase their
effectiveness in accomplishing their missions. The FAA and
manufacturers will realize cost savings when mailing emergency
airworthiness directives, safety notices, and surveys to aircraft
owners. More reliable notification regarding safety issues should
improve aviation safety.
    Commenters expressed concern over the opportunity re-registration
and periodic renewal creates for administrative error that could ground
an aircraft. They believe a renewal interval of 3 years increases this
risk. Some commenters suggested a 5-year interval to coincide with
fractional contracts or to match Uniform Commercial Code continuation
filing. Another commenter suggested a 7-year interval to align with
aging aircraft inspections.
    The FAA has considered the recommended renewal intervals. However,
these events do not relate to, or further the goal of, improving the
accuracy of registration information. It is impractical to tie the
renewal term to financial events over which the FAA has no control or
scheduled inspections that may vary be aircraft. However, the FAA does
recognize that regular renewal creates a regulatory obligation that, if
missed, could lead to the temporary grounding of an aircraft. To reduce
the potential for these events to occur, the FAA is implementing
several procedural safeguards introduced in the following discussion.

B. Reminder Notices, Extended Filing Timeframes, and Online Access

    The Registry will send owners two reminder notices rather than a
single reminder as proposed in the NPRM. The first reminder notice will
be sent 180 days before a registration is scheduled to expire. This is
60 days earlier than the 120 days proposed in the NPRM. The reminder
will provide basic instructions and identify the aircraft, its
expiration date, and the 3-month filing window during which a
registration or renewal application should be submitted. Filing the
application within the assigned window will enable the new registration
certificate to arrive before the old certificate expires. The second
reminder notice will be sent at the end of the filing window to owners
who have not yet re-registered or renewed registration. The filing
window will close 2 months prior to the scheduled expiration date to
allow for processing the applications and mailing the new certificates.
Applications sent after the filing window closes will still be
processed; however, due to processing and mailing times, the aircraft
may be without authorization to operate until registration is
completed. Section 47.40(a)(1) contains a chart with the schedule
established for re-registration. The Registry will post lists on its
Web site showing aircraft as they move through the various stages of
re-registration and renewal. These changes should help owners keep
their aircraft continuously registered and help keep other interested
parties informed about the registration status of those aircraft.
    In the NPRM, the FAA proposed extending expiration dates past the
regulatory expiration date if the FAA or applicant were unable to
complete the renewal process in a timely manner. The FAA has concluded
that this process would be complicated and costly for both aircraft
owners and the Registry. The FAA has determined that moving the first
reminder notice and the filing window forward by 2 months and using
this additional time for application processing and certificate
delivery is a better solution. The earlier filing and additional 2
months for processing provides adequate time for a timely applicant to
receive a new registration certificate. The process adopted by this
final rule will reduce the uncertainty about registration certificate
arrival and the potential burden of coordinating extensions that the
proposed process would have created.
    The earlier reminder notice and additional processing time also
respond

to requests from a few commenters who suggested a temporary operating
authority for use with re-registration and renewal applications. The
FAA permits temporary operation through the use of the second or ``Pink
Copy'' of the application for registration for a reasonable period of
time following a transfer of ownership. Because of statutory
limitations, this type of temporary authority cannot be used for re-
registration and renewal because these events are not part of a
transfer of ownership. Provided an owner files an application for re-
registration or renewal in a timely manner during the re-registration
and renewal window, an interval of not less than two months will remain
on the old certificate. This is sufficient time for an application to
be processed and a certificate issued and delivered.
    The FAA planned to use the Aircraft Registration Application, AC
Form 8050-1 as the application form for aircraft re-registration. To
avoid confusion between the normal registration process with its
temporary operating authority and the re-registration process, the
Aircraft Registration Application, AC Form 8050-1 will not be used for
re-registration. A separate application form has been developed and
will be available from the Registry at its Web site, http://
registry.faa.gov/renewregistration. Proposed regulatory language has
been changed to keep the two processes separate.
    The FAA proposed to require paper forms for all re-registration and
to allow online renewal application when no changes were necessary.
Several commenters called attention to the convenience and savings that
could be achieved with both online re-registration and renewal. One
commenter believed that completing the application electronically could
save about 25 minutes, providing convenience for owners. Others pointed
out the savings in time and costs for the FAA if applications could be
processed electronically.
    The FAA agrees that online re-registration and electronic
processing could reduce costs, but only when there are no changes to be
made to the current registration information. Accordingly, the rule
provides for both online re-registration and renewal when no changes
are required. Extending the online option to those aircraft with
information changes to report would be convenient for owners. However,
the FAA currently cannot process these information updates
electronically. Therefore, at this time, re-registration or renewal
applications with updates cannot be made online. However, future online
submission is not prohibited by the regulatory text, and we are
exploring options for future acceptance of registration information
electronically. Regardless of whether information is received
electronically or through a paper-based method, address updates and
other changes also require review and action by an examiner, so cost
savings to the Government in these situations would be minimal or
nonexistent.
    The changes from the proposed rule discussed to this point extend
the timeframes and simplify the procedures of the re-registration and
renewal process to the benefit of owners, operators, and the FAA. When
these elements of the rule are pulled together re-registration and
renewal will operate similarly to the following example.
    For the purpose of re-registration, an aircraft registration
certificate that does not contain an expiration date and was issued in
March of any year has an assigned expiration date of March 31, 2011, as
described in Sec.  47.40 of this rule. This example also applies to
renewal of an aircraft registration certificate issued with an
expiration date of March 31st . On or about October 1, the first
reminder notice will be sent to the aircraft owner at the address of
record. The notice will remind the owner of the pending expiration and
announce that the 3-month filing window will run from November 1st
through the last day of January. The notice will include a unique
passcode for use with online filing that will be valid until the close
of the assigned filing window. It will also provide information for
both online and paper form filing. A printable form will be available
online and from the Registry. The additional 2 months provided for
application processing and certificate delivery run from February 1st
through March 31st. Timely applications, meaning those received at the
Registry during the filing window, will be processed and issued with
sufficient time for the registration certificate to arrive well before
expiration on the last day of March. Re-registration and renewal
applications that report updates to registration information or are
filed after the filing window closes must be made using the paper
application. Filing after the end of the 3-month window creates the
possibility the new certificate will arrive after the old certificate
expires. An owner who has allowed registration to expire may apply for
registration in accord with Sec.  47.31, by submitting an Aircraft
Registration Application, AC Form 8050-1 and the registration fee
identified in Sec.  47.17.
    A correct address on file will ensure that the reminder letters
will be sent to the aircraft owner and avoid delays and possible loss
of registration. There is no fee for updating an address or other
information, like a name change, and it can be done at any time during
or independent of the registration process.

C. Triennial Aircraft Registration Report No Longer Required

    In the NPRM, the FAA proposed to remove Sec.  47.51 and eliminate
the requirement for aircraft owners to complete and return a Triennial
Aircraft Registration Report. This proposal is adopted without
modification in this final rule. The re-registration and renewal
requirements adopted in this final rule eliminate the need for the
triennial program.

D. Time Limits for Aircraft in Sale Reported and Registration Pending
Status

    Accuracy and usability of the database require eliminating aircraft
from questionable registration statuses such as ``Sale Reported'' or
``Registration Pending.'' Approximately 17,000 aircraft are reported as
sold and have remained in a ``Sale Reported'' status for more than 6
months. Their registration has ended, but without standards for
canceling the assignment of an aircraft registration number, the
aircraft remain in the database. With a registration number still
assigned, ``Sale Reported'' aircraft could operate under ``Pink Copy''
temporary authority at any time if an application for registration is
made. Due to normal processing delays, it cannot be known to a system
user what the actual status is. Accordingly, ``Sale Reported'' aircraft
are in a perpetually questionable status.
    The FAA proposed to implement clear standards for the cancellation
of registration number assignments from aircraft with ineffective
registration. The basis for these standards is underscored in proposed
Sec.  47.15(i). When the ownership of an aircraft is transferred, its
registration is no longer effective, and the FAA may cancel the
corresponding assignment of registration number. To establish clear
time periods in which to complete the registration of a transferred
aircraft, proposed Sec.  47.15(i) set forth timelines for cancellation
of the assignment of registration number in three ownership transfer
scenarios. The FAA will cancel the assignment of registration number if
6 months have passed since notification to the FAA of transfer and no
application for registration has been filed. The FAA will cancel the
assignment of registration number if 1

year has passed since the application for registration was made, but
the applicant or successive applicants have failed to meet the
registration requirements of this part. The FAA will cancel the
assignment of registration number if 6 months have passed since an
aircraft dealer filed evidence of ownership in accord with Sec.  47.67
that did not meet registration requirements, and these requirements
have remained unmet. Section 47.15(i) is adopted as proposed in the
NPRM without change.
    Several commenters thought that automatic cancellation of
registration numbers for failing to renew or re-register is a severe
penalty. These commenters suggested that the system should accommodate
the retention of N-numbers without the complication of an application
or fees because it is expensive to put a new N-number on an aircraft.
    Section 47.15(i) as adopted provides for the cancellation of an N-
number assignment to an aircraft when registration ends. However, the
cancellation process is not an automatic action as commenters suggest.
When aircraft registration ends, the Registry will wait 30 days to
ensure that any recently received requests from the owner have been
processed. The Registry will then send a letter about the pending
cancellation if a good address for an owner is on file.\1\ The letter
will inform the owner that the owner may reserve the N-number as
provided for in newly adopted Sec.  47.15(j) or register the aircraft
under Sec.  47.31 within 60 days from the date of the letter. If a
reply is not received within 60 days, the aircraft record will be
placed in a work packet and then in queue for an examiner to complete
cancellation. If a good address for the aircraft owner is not on file,
N-number cancellation will be scheduled for no sooner than 90 days from
the date of expiration. During this time, the aircraft will appear on
the Registry's webpage list of aircraft pending cancellation. Once
cancellation is complete, the N-number will be unavailable for
assignment for a period of 5 years in accord with Sec.  47.15(j).
---------------------------------------------------------------------------

    \1\ The Registry has a status it assigns to aircraft records
that have had mail returned as undeliverable.
---------------------------------------------------------------------------

    The 5-year hold is related to both safety and customer service.
Many aircraft that may be canceled from the registration database
belong to owners who have been out of contact with the Registry. These
aircraft may be in use or may return to operational status during the
next few years. It would be unwise to release an N-number for use on a
second aircraft when there is a chance the first aircraft is still
operating. The 5-year hold also is responsive to requests from law
enforcement agencies. Removing the N-numbers of unregistered aircraft
from service for a few years helps them identify and evaluate operating
aircraft.
    One commenter asked whether the requirement to return expired
registration certificates could be modified. The costs to gather and
return these certificates could be excessive for owners or operators
with large or international fleets. The FAA agrees with this comment
and has changed the language of proposed Sec.  47.41(b). Instead of
returning an expired registration certificate, the holder must destroy
it.
    A commenter asked why a limit of 120 days was established for use
of the copy of a completed and returned Assignment of Special
Registration Numbers, AC Form 8050-64. This commenter suggested a
period of 180 days instead.
    This form is issued as authority to place a special N-number on a
specific aircraft during the next 12 months. Within 5 days of painting
the N-number on the aircraft, the form is to be completed with the
painting date, signed by the owner, and returned to the Registry. The
records will then be updated and a new aircraft registration
certificate issued. While waiting for the new certificate, the owner is
to keep a copy of the form with the old certificate as authorization to
operate with the new N-number. The new certificate should arrive in 60
to 90 days at which time the copy of the form loses its authority. The
12-month and 120-day terms are imposed to establish a specific time
limit in response to requests from law enforcement agencies. The FAA
chose 120 days to allow response time for the occasional undelivered
certificate. Given the time periods required to submit the appropriate
documentation and the standard processing time, 180 days is excessive.

E. Conforming Amendments

    Since this rule eliminates Sec.  47.51, the rule includes
conforming amendments to Sec. Sec.  13.19 and 13.27 to remove the
references to Sec.  47.51. This rule also includes a conforming
amendment to Sec.  91.203(a)(2) to eliminate the reference to the
``pink copy'' of the Aircraft Registration Application.

V. Miscellaneous Comments

A. Re-Registration and Renewal

    One commenter suggested sending additional notices to an aircraft's
lessee, secured party, or operator as known parties that could ensure
re-registration or renewal is accomplished in a timely manner.
    The aircraft registration regulations identify the aircraft owner
as the responsible party to which the Registry directs any
communication. The FAA cannot justify modifying the current system to
maintain addresses for parties other than the registered aircraft
owner. Identifying these other interested parties might require the FAA
to perform a title review of each aircraft's records, which contradicts
the registered owner's duty to comply with all obligations it may have
under leases, security agreements, or other contracts. Additionally, a
system of secondary addresses would create a maintenance burden to keep
these addresses current.
    One commenter stated that it is not clear how this proposal would
create a net time savings for any party as the cost/benefit analysis
claims.
    Neither the discussion in the NPRM nor the cost/benefit analysis
claimed that there would be a net time savings for any party.
    One commenter suggested that the FAA review the proposal and
analyze its impact on foreign airlines and for conformity with other
registration requirements and commitments, such as the Cape Town
Convention on International Interests in Mobile Equipment.
    The FAA agrees that U.S. civil aircraft operated internationally
must comply with FAA as well as foreign operational standards. Leases
often state that the lessee will comply with applicable regulations and
laws present and future. The U.S. aircraft registration certificate
conforms to the model certificate provided by the International Civil
Aviation Organization. The addition of an expiration date is an
enhancement over the basic requirement. This difference provides more
confidence to foreign officials that the aircraft is properly
registered. Validating registration and placing a renewal certificate
in a U.S. registered aircraft operated in another country has little
chance of conflicting with international commitments. This rule has no
effect on the Cape Town Convention.

B. Risks and Disruption

    Many commenters expressed concern with the time, personnel, and
administrative costs associated with implementing the rule as proposed.
These commenters thought the increase in workload at the Registry would
result in critical backlogs that would negatively affect both normal
and rule-related work.
    The FAA understands that confidence in the success of this final
rule rests on

the ability of the Registry to perform without excessive backlogs. A
portion of the new work will be offset by the elimination of the
triennial report program. Recent staffing changes and upgrades to the
electronic documents processing systems will help streamline the new
workload. Additionally, online ``no-change'' re-registration
application filing and fee payments will be available. No critical
backlogs in re-registration, renewal, or normal workload are expected
as a result of this final rule.
    Several lessees commented that lenders might modify contract
covenants to require additional reports and assurances, or possibly
withdraw from lending due to the real or perceived increase in
uncertainty created by the proposed rule.
    This final rule creates certainty in the registry database.
Lenders, insurers, and other interested parties will now be able to
verify whether the aircraft owner is complying with any registration
terms and conditions contained in those private contracts. The FAA
believes this rule will not be a factor in lenders deciding whether to
finance aircraft transactions. Verifying or demonstrating successful
re-registration or renewal may be done using the searchable aircraft
information feature on the FAA Web site. The display for each aircraft
will show the issue date for its certificate as well as the next
expiration date. Owners can download the registration database and
create reports or populate their own fleet management databases.
Reports could then be transmitted to a lender. With this information
available on the Web site, and the 180-day and 60-day notices of
expiration sent to the aircraft owner, investor confidence in the U.S.
aviation industry should remain essentially unchanged by the
implementation of this final rule.
    Several commenters stated that expired registration could result in
litigation because the ownership of the aircraft could be questioned.
Specifically, these commenters were concerned that security interests
filed against the aircraft could be held invalid or subordinate, thus
exposing banks and other lenders to economic losses.
    The FAA has determined this final rule will have no impact on
priorities established by recording those interests at the FAA's
Aircraft Registry. The United States ratified the Cape Town Convention
which, in addition to other items, established an International
Registry for registering covered interests in most commercial-sized
aircraft. Article 29 of the Cape Town Convention firmly establishes
that ``a registered interest has priority over any other interest
subsequently registered and over an unregistered interest.'' The
continued priority of an interest established by registering that
interest with the International Registry is not dependent upon
continued United States civil aircraft registration. For aircraft not
covered by the Cape Town Convention, security interests properly filed
and recorded at the FAA's Aircraft Registry are arguably provided
perpetual validity without further recording. Registration expiration
does not change the ownership or otherwise affect interests in an
aircraft, but private contract terms may affect those interests. The
records for all aircraft that are currently on, or have been on, the
United States aircraft registry are permanent records and will remain
available for review regardless of registration status.
    Several commenters stated that expired registration could leave an
aircraft without insurance coverage protecting its owner, lenders,
lessee, and passengers. Commenters suggest that if an aircraft
registration inadvertently expires, the insurance company might take
the position that all or some coverage does not apply.
    The FAA is aware that the renewal requirements of the final rule
create a recurring event with which an aircraft owner may fail to
comply. The additional reminder notice and enhanced registration
information available on the Registry Web site should reduce the
likelihood of an inadvertent failure to maintain registration. Aircraft
owners who keep their addresses up-to-date, respond promptly to the
reminder notices, and alert their pilots not to operate aircraft with
expired certificates should avoid operating without current
registration.
    A large number of commenters thought that a lessor, particularly a
`passive' owner-trustee lessor for multiple aircraft, could become
liable to the lessee and investors if the lessor failed to obtain
renewal certificates and provide them to a lessee in time to place them
into the aircraft before expiration. The lessor also might have
difficulty collecting any renewal fees fronted for its lessee.
    As stated in 49 U.S.C. chapter 441, only the owner of an aircraft
is eligible to apply for registration. An owner's choice to assume a
passive role does not relieve it of its duties to comply with all
applicable registration regulations. The FAA cannot justify tailoring
the registration regulations to accommodate owners who choose to assume
a passive role. As discussed previously, the FAA has modified this
final rule so an owner will have sufficient time to obtain a re-
registration or renewal certificate and forward it to the lessee for
placement in the aircraft before the old certificate expires.

C. Fees, User Fees, New Taxes

    Several commenters saw this rulemaking as an excuse to collect a
recurring user fee or tax. Others acknowledged that the current $5
registration fee is too low. Some contended the $45 and $130 fees
proposed in the FAA Reauthorization bill were too high, arguing that an
equitable fee would be lower. Some express concern the $130 fee would
apply every 3 years, claiming that fee is too burdensome. One commenter
saw the registration fee as a penalty for those who are late in meeting
the deadline for re-registration. Another commenter offered that the
full costs of aviation need to be assumed by those rich enough to buy
and fly planes, not the general taxpayers.
    The NPRM proposed a $5.00 re-registration and renewal fee. This is
a new and recurring fee which matches the current registration fee,
even though it is less than the estimated direct cost of processing re-
registration and renewal actions. The Federal Aviation Administration
Reauthorization bill (H.R. 915), if enacted as passed by the House of
Representatives on May 21, 2009, will provide the authority to increase
registration-related fees. The projected fees are higher than current
fees but reflect only the direct and applicable indirect unit costs of
the FAA Registry's Aircraft Registration Branch. The $130 registration
fee projected in the legislation would not apply as the fee for re-
registration or renewal. If estimated by the same method used for the
reauthorization bill, the fee for re-registration and renewal would be
about $45. Neither the reauthorization bill, nor the NPRM, proposed a
registration fee that includes a tax, user fee, or charge to generate
revenue for purposes other than maintaining an accurate aircraft
registration database.
    Two commenters contended the increase in registration and renewal
fees might raise the cost of learning to fly beyond the means of some
students or otherwise discourage individuals from flying.
    The FAA does not believe that these higher fees would cause
students not to be able to learn to fly. Because this fee would be paid
by aircraft owners, the costs could be prorated among flight
instruction sessions. Costs for each student pilot would then be
negligible.

    One commenter proposed a sliding scale for people who have more
than one aircraft. Another mentioned that these fees would affect
general aviation more severely than airlines. This same commenter notes
that the registration fee for cars is reduced as the car ages. Another
requested the registration fee be tied to the aircraft's certificated
gross weight or type certification.
    The fees discussed are based on the costs to process aircraft
registration, re-registration, or renewal. These costs are the same for
all aircraft. Therefore, the use of sliding scales, number of aircraft
owned, weight, type, age, or value of an aircraft to determine a fee
would be inconsistent with the cost recovery nature of the fee.
    Many commenters characterized the proposed rule as, ``penalizing
the law abiding citizens who provide the information required by the
Government.'' They suggest that the FAA penalize those who do not
comply and raise revenue through punitive actions focusing on the
noncompliant parties.
    The FAA does not seek to penalize the innocent and appreciates
those aircraft owners who have made a conscientious effort to promptly
report any changes in their addresses or the statuses of their
aircraft. As discussed earlier, many changes go unreported each year.
In light of the arguments presented in the NPRM and this final rule,
recurrent expiration and renewal of aircraft registration is the only
identified option that can clear accumulated error from the
registration records and maintain it at an acceptable level.

D. Alternatives Suggested by Commenters

    Several commenters suggested that registration is or can be
inspected as part of an aircraft's annual inspection.
    Only the aircraft owner has the knowledge sufficient to review,
update, and affirm the validity of an aircraft's registration
information. Therefore, the FAA has concluded that it is inappropriate
to include verification of registration as part of an annual
inspection, which may not involve the participation of the aircraft
owner.
    One commenter suggested a one-stop FAA address change program, and
another suggested that the time given to report an address change be
extended from 30 to 90 days.
    The FAA processes multiple address change requests when these
requests indicate the offices that need to be notified. For example, if
a pilot provides an address update and indicates that it also affects a
specific aircraft that the pilot owns, the FAA updates both the airmen
and aircraft databases. Similarly, the Web page for Airmen
Certification address updates has a reminder message for pilots to also
update any affected aircraft records with a link to instructions on how
to do this. The Registry accepts and processes address updates whenever
they are reported. Extending the timeframe from 30 to 90 days would not
lower the incidence of bad addresses on file. It could however, lower
the perception that it is important to promptly report address and
other registration changes.
    Several commenters suggested the FAA should capture address changes
from maintenance forms, DOT Form 6410, the State Registries, the Airmen
database, and from spot checks conducted by Airworthiness Inspectors.
    The Registry has routinely made use of alternate resources to
locate possible current addresses. A few of these include the Airmen
Certification files, the U.S. Postal Service Change of Address
database, returned surveys, and airworthiness directive forms. The
Registry uses addresses from these alternate sources to contact
aircraft owners and ask them to verify the correct registration
address. It should be noted that while the FAA may be able to locate an
aircraft's registered owner, changes to the registration information
maintained on their aircraft can be authorized only by the owner.
    A few commenters suggested that a title system for aircraft would
provide better information.
    The commenters did not offer any insight into how a title system
would provide better information than the existing Certificate of
Registration system as modified by this final rule. The FAA is
authorized to modify its system to include a system of titling
aircraft. (See 49 U.S.C. 44111(c)(1).) However, the costs of converting
to a titling system would likely far outweigh any benefits that would
be derived. Even with a titling system, some form of initial and
periodic updating of information would still be necessary to obtain and
maintain the level of accuracy this final rule will provide.
    Several commenters suggested exempting aircraft documented on Parts
121 and 135 maintenance certificates or operated by Fractional or
Flight Department Operations.
    Exempting any class of registered aircraft would reduce the
effectiveness of this rule. All categories of aircraft contribute to
the registration errors this rule seeks to correct and prevent from
accumulating in the future. Exempting any group of registered aircraft
would also require the FAA to operate dual registries, which is
operationally impractical.
    There were a few suggestions that proposed exempting general
aviation aircraft, because ``they are too small to be a security risk''
or ``terrorists use big airplanes.''
    The FAA does not agree. Large aircraft are operated as general
aviation aircraft and all aircraft, regardless of size, are important
enough to be furnished current safety information. Also, many small and
medium-sized aircraft have been found suitable for drug running and
similar activities of interest to law enforcement agencies.
    Two commenters requested flexibility in choosing renewal dates.
    This suggestion was not accepted. Allowing the choice of renewal
date would unnecessarily complicate both the workflow of registration
renewal and the overall management of the program. Keeping renewal
dates linked to an aircraft's registration date ensures that the
Registry's workload will occur evenly through the year eliminating
potential recurring seasonal backlogs.
    One commenter asked the FAA to drop enforcement of the recent
change to Section 47.41(b)(3), which requires return of registration
certificates within 21 days of termination of registration. This
requirement creates a labor-intensive chore when a fleet of aircraft
changes hands.
    The FAA rejects the commenter's suggestion. The 21 days allowed for
the return of an ineffective registration certificate provides a
definite and reasonable timeframe to take this action. However, to
avoid creating any additional burden, this final rule has changed Sec.
47.41(b)(3) to direct the holder to destroy an expired registration
certificate rather than return it to the FAA.
    One commenter suggested moving the ``Sale Reported'' time limit
from Sec.  47.15(i)(4) to Sec.  47.35, Aircraft Last Previously
Registered in the United States. This would enable a new owner to see
at a glance what their certificate requirements are.
    The FAA has determined that Sec.  47.15(i), which addresses the 6-
month interval between filing an aircraft ``Sale Reported'' notice and
N-number cancellation, is in the appropriate location. Section 47.35
refers the reader to Sec.  47.15 and other sections with which the new
owner must comply. Owners are encouraged to review all of part 47 to
ensure compliance with registration regulations.
    One commenter suggested that an N-number assignment for aircraft
entering or re-entering the U.S. registration system should be valid
for 180 days

instead of the 90 days presently allowed.
    The FAA does not agree. These assignments are made to aircraft that
are entering the U.S. registration system and need an N-number to place
on their application and supporting documentation. Time is needed only
for entering the N-number on their documents, delivering them to the
Registry, and for registration processing time. If a delay arises that
is out of the applicant's control, the applicant may apply for an
extension. Because these aircraft may not operate until a registration
certificate is issued, these applications receive priority processing.
If a longer lead time is needed, the owner is encouraged to reserve an
N-number and make application for assignment at the appropriate time.
    One commenter, both a pilot and air traffic controller, cautions
that under no circumstances should a controller be concerned with Part
47, nor should an aircraft in flight be denied air traffic service and
support.
    This rule concerns re-registration, registration, and renewal of
aircraft registration certificates. It is not intended to address air
traffic control issues.
    Several commenters suggested the FAA should require re-registration
and renewal applicants to report total airframe flight hours from a
specific date with an estimated breakdown of that time by primary
mission areas or types of operation. The data collected would enhance
safety research and measurement of safety improvement.
    This suggestion is beyond the scope of this final rule.
    One commenter, an aviation parts provider and Supplemental Type
Certificate holder, requests that a primary key be assigned to aircraft
records available for download from the Registry's Web site. This would
enable data users to track individual records through successive
downloads even if N-numbers, model names, or serial numbers change and
track which of their products are in use on these aircraft. Similar
benefits would be available to manufacturers, government, and law
enforcement agencies depending on their applications.
    Although this suggestion is beyond the scope of this final rule, it
will be forwarded to the appropriate FAA organization for
consideration.
    One commenter proposed revising Sec.  47.33(a)(2) to allow use of
an invoice from a kit manufacturer as evidence of ownership equal to a
bill of sale.
    This proposal is beyond the scope of this rule. Section 47.33(b)
provides an alternative method of establishing aircraft ownership.
    One commenter proposed replacing the annual inspection requirement
for noncommercial aircraft with an inspection requirement based on a
combination of flight hours and time since last inspection. The longest
interval before inspection would be 3 years. This would save time and
money for the many aircraft owners of low use aircraft without
affecting safety.
    This proposal is beyond the scope of this rule. The commenter may
submit this proposal as its own project in accord with CFR 14 Part 11
Basic Rulemaking Procedures.
    One commenter representing a finance company disagreed with the
need for additional disclosures in financing documents. The current
level of required exposure allows competitors to undercut each others
deals, reducing income margins for finance companies.
    This proposal is beyond the scope of this rule.

VI. Rulemaking Notices and Analyses

A. Paperwork Reduction Act

    As required by the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(d)), the FAA submitted a copy of the new information collection
requirements in this final rule to the Office of Management and Budget
(OMB) for its review. OMB assigned OMB Control Number 2120-0729. An
agency may not collect or sponsor the collection of information, nor
may it impose an information collection requirement unless it displays
a currently valid Office of Management and Budget (OMB) control number.
    A description of the annual burden is shown below.
    Description of Respondents: The likely respondents to the
information requirements in this final rule are all aircraft owners who
want to continue registration past the expiration date on their
Certificate. The FAA estimates the number of renewals will be 65,719
annually; however, the number of aircraft owners and the signature
requirements for each aircraft vary depending on the registration type
(e.g., individual, partnership, government, or co-ownership).
    Estimated Burden: Over 20 years, the FAA estimates 1,308,873 forms
will be processed. Of these forms, 191,652 will be for re-registration
and 1,117,221 will be for renewal. As described in the Regulatory
Evaluation, the FAA estimates its own processing costs will be $9.10
and $5.82, respectively, per form. Over 20 years, these costs sum to
$8,246,259.42 (calculation: 191,652 times $9.10 plus 1,117,221 times
$5.82), for an annual cost of $412,312.97 (calculation: $8,246,259.42
divided by 20). The FAA estimates that it will take 0.185 hours to
process each re-registration form and 0.122 hours to process each
renewal form. This difference comes from the FAA's assumption that the
percentage of owners making application on the Internet will increase
in later years, lowering the processing time for renewals. Over 20
years, the time to process all the re-registration and the renewals
forms equals 35,455.62 (35,455.62 = .185 x 191,652) hours and
136,300.98 (136,300.98 = .122 x 1,117,221) hours respectively, for a
total burden of 171,756.60 hours, and an average annual burden of
8,587.83 hours.

B. International Compatibility

    In keeping with U.S. obligations under the Convention on
International Civil Aviation, it is FAA policy to conform to
International Civil Aviation Organization (ICAO) Standards and
Recommended Practices to the maximum extent practicable. The FAA has
reviewed the corresponding ICAO Standards and Recommended Practices.
    ICAO Standards set forth a model registration certificate. The
FAA's certificate of registration will exceed the standards in that
model because it will include an expiration date.

C. Regulatory Evaluation, Regulatory Flexibility Determination,
International Trade Impact Assessment, and Unfunded Mandates Assessment

Regulatory Flexibility Determination
    Changes to Federal regulations must undergo several economic
analyses. First, Executive Order 12866 directs that each Federal agency
shall propose or adopt a regulation only upon a reasoned determination
that the benefits of the intended regulation justify its costs. Second,
the Regulatory Flexibility Act of 1980 (Pub. L. 96-354) requires
agencies to analyze the economic impact of regulatory changes on small
entities. Third, the Trade Agreements Act (Pub. L. 96-39) prohibits
agencies from setting standards that create unnecessary obstacles to
the foreign commerce of the United States. In developing U.S.
standards, this Trade Act requires agencies to consider international
standards and, where appropriate, that they be the basis of U.S.
standards. Fourth, the Unfunded Mandates Reform Act of 1995 (Pub. L.
104-4) requires agencies to prepare a written assessment of the costs,
benefits, and other effects of proposed or final

rules that include a Federal mandate likely to result in the
expenditure by State, local, or tribal governments, in the aggregate,
or by the private sector, of $100 million or more annually (adjusted
for inflation with base year of 1995). This portion of the preamble
summarizes the FAA's analysis of the economic impacts of this final
rule. We suggest readers seeking greater detail read the full
regulatory evaluation, a copy of which we have placed in the docket for
this rulemaking.
    In conducting these analyses, FAA has determined that this rule:
(1) Has benefits that justify its costs, (2) is not an ``economically
significant regulatory action'' but is a ``significant regulatory
action'' for other reasons as defined in section 3(f) of Executive
Order 12866, (3) is ``significant'' as defined in DOT's Regulatory
Policies and Procedures; (4) will not have a significant economic
impact on a substantial number of small entities; (5) will not create
unnecessary obstacles to the foreign commerce of the United States; and
(6) will not impose an unfunded mandate on state, local, or tribal
governments, or on the private sector by exceeding the threshold
identified above. These analyses are summarized below.
Summary
Total Costs and Benefits of this Rulemaking

                            Summary of Costs and Benefits in Millions of 2007 Dollars
                                                 [Over 20 years]
----------------------------------------------------------------------------------------------------------------
                                                    Present value
                                        Cost           of cost                        Benefit
----------------------------------------------------------------------------------------------------------------
Re-registration and 3-Year                  $29.9           $16.3  Reduction in Error Rate by 31%.
 Renewal (Triennial Eliminated).
----------------------------------------------------------------------------------------------------------------

    This rule will mandate that all aircraft owners reregister their
aircraft over a 3-year period, and then renew these registrations on a
3-year basis. Total estimated costs, over 20 years is $29.9 million
($16.3 million, present value). These costs include both the costs to
aircraft owners as well as processing costs for the Civil Aircraft
Registry and include costs savings from the elimination of the
Triennial Program.
    The primary benefit of this rulemaking will be the increased
accuracy of the records within the Aircraft Registry. Currently,
approximately one third of registered aircraft information is
incorrect. The FAA has concluded that the level of accuracy in the
system of records must be significantly improved in order to better
serve the needs of the users of the system as well as support its own
operations. Benefits will accrue from improving the database as well as
improving the data collection process.
Who is potentially affected by this rulemaking?
Private Sector
    There are currently about 357,000 registered aircraft, of which
about 241,000 are active aircraft. The FAA expects about 245,000
aircraft to reregister and then, every 3 years, renew their
certificate. The FAA also expects between an additional 3,424 new
aircraft to register each year.
Government
    This rule will increase the workload on the Civil Aviation
Registry, which will have to process an additional 1.3 million renewal
and registration certificates over a 20-year period. However, this
additional work will be partially offset by the elimination of the
Triennial Aircraft Registration Program.
Our Cost Assumptions and Sources of Information
     Discount rate--7%;
     Period of analysis--2010 through 2029;
     All monetary values are expressed in 2007 dollars;
     The FAA based projections on a 1.4% annual growth rate
     The FAA will use the following unit costs:
    (a) $5--fee per aircraft for both re-registration and renewal
    (b) $37.20--hourly rate of an aircraft owner's time
    (c) $9.10--FAA processing costs for re-registration per applicant
    (d) $5.82--FAA processing costs for renewal per applicant
    (e) $1.63--FAA processing costs for the Triennial Program for each
notice sent
    (f) $16.80--FAA processing costs for the Triennial Program per
reply
Benefits of This Rulemaking
    The primary benefit of this rulemaking will be the increased
accuracy of the records within the Aircraft Registry. Currently, over
one third of registered aircraft information is incorrect. Inaccurate
records have many negative consequences. For example, FAA uses aircraft
records to identify owners of specific aircraft so that safety related
information, such as airworthiness directives (ADs), can be delivered
to those owners, but because of inaccuracies, many safety-related
mailings are returned without delivery. Aircraft manufacturers also use
aircraft records for the same reasons, to send out safety-related
information. Law enforcement and security agencies rely upon FAA's
aircraft records to identify and locate owners of aircraft.
    The FAA has concluded that the level of accuracy in the system of
records must be significantly improved in order to better serve the
needs of the users of the system as well as support its own operations.
Specifically, benefits will accrue from improving the database as well
as improving the data collection process. The benefits from improving
the Registry database include cost savings, better service for aircraft
owners, and help with law enforcement. The benefits to be realized by
improving the data collection process also include cost savings as well
as a more accurate response rate.
Costs of This Rulemaking
    This rulemaking requires that all aircraft owners will have to re-
register their aircraft during a 3-year period, that all aircraft
registrations will need to be renewed every 3 years, and that the
present Triennial Program is eliminated in its entirety.
    The FAA estimates that approximately 244,600 aircraft will each go
through the re-registration process, and so will be issued a new
registration certificate. Following re-registration aircraft will renew
their registration every 3 years. In calculating the costs of the rule,
the FAA counts the number of aircraft transactions that result from
either re-registration or renewal. Moreover, FAA did not include the
cost of normal course of business registrations and the $5 fee because
the fee is an economic transfer. These costs are recognized in a
separate section in the rule but are not included in the total cost of
the rule.

    The FAA estimates that over 20 years the Registry will process 1.3
million certificate actions, composed of re-registration and renewal.
However, the Registry will achieve cost savings with the elimination of
the Triennial Program. Over 20 years, the rule replaces the current
system with a 3-year re-registration program, followed by a 3-year
renewal cycle that is estimated to cost $29.9 million ($16.3 million,
present value).
Final Regulatory Flexibility Determination
    The Regulatory Flexibility Act of 1980 (Pub. L. 96-354) (RFA)
establishes ``as a principle of regulatory issuance that agencies shall
endeavor, consistent with the objectives of the rule and of applicable
statutes, to fit regulatory and informational requirements to the scale
of the businesses, organizations, and governmental jurisdictions
subject to regulation. To achieve this principle, agencies are required
to solicit and consider flexible regulatory proposals and to explain
the rationale for their actions to assure that such proposals are given
serious consideration.'' The RFA covers a wide range of small entities,
including small businesses, not-for-profit organizations, and small
governmental jurisdictions.
    Agencies must perform a review to determine whether a rule will
have a significant economic impact on a substantial number of small
entities. If the agency determines that it will, the agency must
prepare a regulatory flexibility analysis as described in the RFA.
    However, if an agency determines that a rule is not expected to
have a significant economic impact on a substantial number of small
entities, section 605(b) of the RFA provides that the head of the
agency may so certify and a regulatory flexibility analysis is not
required. The certification must include a statement providing the
factual basis for this determination, and the reasoning should be
clear.
    This final rule will affect all aircraft owners, through part 47,
as all aircraft owners will be required to reregister and then
periodically renew their aircraft. There will be a substantial number
of small entities. However, the cost to small entities will be
negligible. The total cost per certificate to an aircraft owner is
about $24, which includes the value of time to complete the form plus
the $5 registration fee. An aircraft owner will renew his or her
certificate, on average, six more times over a 20-year period for a
total of seven certificate actions. Seven certificate actions will
result in costs of $168 over 20 years for an average cost of $8 per
year. In addition, the FAA did not receive comments on the regulatory
flexibility analysis. Therefore, as Administrator of the FAA, I certify
that this final rule will not have a significant economic impact on a
substantial number of small entities.
International Trade Analysis
    The Trade Agreements Act of 1979 (Pub. L. 96-39), as amended by the
Uruguay Round Agreements Act (Pub. L. 103-465), prohibits Federal
agencies from establishing standards or engaging in related activities
that create unnecessary obstacles to the foreign commerce of the United
States. Pursuant to these Acts, the establishment of standards is not
considered an unnecessary obstacle to the foreign commerce of the
United States, so long as the standard has a legitimate domestic
objective, such as the protection of safety, and does not operate in a
manner that excludes imports that meet this objective. The statute also
requires consideration of international standards and, where
appropriate, that they be the basis for U.S. standards. The FAA has
assessed the potential effect of this final rule and determined that it
will have only a domestic impact and therefore will not create
unnecessary obstacles to the foreign commerce of the United States.
Unfunded Mandates Assessment
    Title II of the Unfunded Mandates Reform Act of 1995 (the Act)
requires each Federal agency to prepare a written statement assessing
the effects of any Federal mandate in a proposed or final agency rule
that may result in an expenditure of $100 million or more (adjusted
annually for inflation) in any one year by State, local, and tribal
governments, in the aggregate, or by the private sector; such a mandate
is deemed to be a ``significant regulatory action.'' The FAA currently
uses an inflation-adjusted value of $143.1 million in lieu of $100
million.
    This rule does not contain such a mandate. The requirements of
Title II do not apply.

D. Executive Order 13132, Federalism

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

E. Environmental Analysis

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

F. Regulations That Significantly Affect Energy Supply, Distribution,
or Use

    The FAA has analyzed this final rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use (May 18, 2001). The FAA has determined that it is
not a ``significant regulatory action'' under the executive order
because, while a ``significant regulatory action'' under Executive
Order 12866, and DOT's Regulatory Policies and Procedures, it is not
likely to have a significant adverse effect on the supply,
distribution, or use of energy.

G. Availability of Rulemaking Documents

    You can get an electronic copy of rulemaking documents using the
Internet by--
    1. Searching the Federal eRulemaking Portal (http://
www.regulations.gov);
    2. Visiting the FAA's Regulations and Policies Web page at http://
www.faa.gov/regulations_policies/; or
    3. Accessing the Government Printing Office's Web page at http://
www.gpoaccess.gov/fr/index.html.
    You can also get a copy by sending a request to the Federal
Aviation Administration, Office of Rulemaking, ARM-1, 800 Independence
Avenue, SW., Washington, DC 20591, or by calling<PHONE_NUMBER>. Make
sure to identify the amendment number or docket number of this
rulemaking.
    Anyone is able to search the electronic form of all comments
received into any of the FAA's dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review DOT's
complete Privacy Act statement in the Federal Register published on
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit
http://DocketsInfo.dot.gov.

H. Small Business Regulatory Enforcement Fairness Act

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of
1996 requires the FAA to comply with small entity requests for
information or advice about compliance with statutes and regulations
within its jurisdiction. If you are a small entity and you have a
question regarding this document, you may contact your local FAA
official, or the person listed under the FOR FURTHER INFORMATION
CONTACT heading at the beginning of the preamble. You can find out more
about SBREFA on the Internet at http://www.faa.gov/regulations_
policies/rulemaking/sbre_act/.

List of Subjects

14 CFR Part 13

    Administrative practice and procedure, air transportation,
Investigations, Law enforcement, Penalties.

14 CFR Part 47

    Aircraft, Reporting and recordkeeping requirements.

14 CFR Part 91

    Aircraft.

The Amendment

0
In consideration of the foregoing, the Federal Aviation Administration
amends Chapter I of Title 14, Code of Federal Regulations as follows:

PART 13--INVESTIGATIVE AND ENFORCEMENT PROCEDURES

0
1. The authority citation for part 13 continues to read as follows:

    Authority:  18 U.S.C. 6002; 28 U.S.C. 2461 (note); 49 U.S.C.
106(g), 5121-5128, 40113-40114, 44103-44106, 44702-44703, 44709-
44710, 44713, 46101-46111, 46301, 46302 (for a violation of 49
U.S.C. 46504), 46304-46316, 46318, 46501-46502, 46504-46507, 47106,
47107, 47111, 47122, 47306, 47531-47532; 49 CFR 1.47.

0
2. Revise the fourth sentence of paragraph (b) of Sec.  13.19 to read
as follows:

Sec.  13.19  Certificate action.

* * * * *
    (b) * * * If the Administrator finds that any aircraft registered
under Part 47 of this chapter is ineligible for registration, the
Administrator issues an order suspending or revoking that certificate.
* * *
* * * * *

0
3. Revise paragraph (a) of Sec.  13.27 to read as follows:

Sec.  13.27  Final order of Hearing Officer in certificate of aircraft
registration proceedings.

    (a) If, in proceedings under section 501(b) of the Federal Aviation
Act of 1958 (49 U.S.C. 1401), the Hearing Officer determines that the
aircraft is ineligible for a Certificate of Aircraft Registration, the
Hearing Officer shall suspend or revoke the respondent's certificate,
as proposed in the notice of proposed certificate action.
* * * * *

PART 47--AIRCRAFT REGISTRATION

0
4. The authority citation for part 47 continues to read as follows:

    Authority: 4 U.S.T. 1830; Pub. L. 108-297, 118 Stat. 1095 (49
U.S.C. 40101 note, 49 U.S.C. 44101 note); 49 U.S.C. 106(g), 40113-
40114, 44101-44108, 44110-44113, 44703-44704, 44713, 45302, 46104,
46301.

Part 47--[Nomenclature change]

0
5. Amend 14 CFR part 47 by removing the words ``FAA Aircraft Registry''
and ``FAA Registry'' wherever they appear and adding, in their place,
the word ``Registry''.

Sec. Sec.  47.5, 47.7, 47.9, 47.11, 47.35, and 47.37  [Amended]

0
6. Amend 14 CFR part 47 by removing the words ``Application for
Aircraft Registration'' and ``application'' and adding, in their place,
the words ``Aircraft Registration Application, AC Form 8050-1'' in the
following places:
0
a. Sec.  47.5(a)
0
b. Sec.  47.7(a)
0
c. Sec.  47.9(a) introductory text
0
d. Sec.  47.11 (introductory text)
0
e. Sec.  47.35(a) introductory text
0
f. Sec.  47.37(a)(2)

Sec. Sec.  47.5, 47.7, and 47.11  [Amended]

0
7. Amend 14 CFR part 47 by removing the words ``Application for
Aircraft Registration'' and ``application'' and adding, in their place,
the words ``Aircraft Registration Application'' in the following
places:
0
a. Sec.  47.5(c)
0
b. Sec.  47.7(c)(2) introductory text
0
c. Sec.  47.11(h)

Sec. Sec.  47.5, 47.7, 47.8, 47.11, 47.31, and 47.43  [Amended]

0
8. Amend 14 CFR part 47 by removing the words ``Certificate of Aircraft
Registration'' and ``registration certificate'' and adding in their
place, the words ``Certificate of Aircraft Registration, AC Form 8050-
3'' in the following places:
0
a. Sec.  47.5(c)
0
b. Sec.  47.7(d) introductory text
0
c. Sec.  47.8(c)
0
d. Sec.  47.11(e)
0
e. Sec.  47.31(a) introductory text
0
f. Sec.  47.43 (b)

Sec. Sec.  47.9, 47.33, and 47.35  [Amended]

0
9. Amend 14 CFR part 47 by removing the word ``Administrator'' and
adding, in its place, the word ``FAA'' in the following places:
0
a. Sec.  47.9(e)
0
b. Sec.  47.33(b) and 47.33(d)
0
c. Sec.  47.35(b)

0
10. Revise Sec.  47.1 to read as follows:

Sec.  47.1  Applicability.

    This part prescribes the requirements for registering aircraft
under 49 U.S.C. 44101-44104. Subpart B applies to each applicant for,
and holder of, a Certificate of Aircraft Registration, AC Form 8050-3.
Subpart C applies to each applicant for, and holder of, a Dealer's
Aircraft Registration Certificate, AC Form 8050-6.

0
11. Amend Sec.  47.2 by adding the definition of ``Registry'' in
alphabetical order and by revising paragraphs (2) and (3) of the
definition of ``U.S. citizen'' to read as follows:

Sec.  47.2  Definitions.

* * * * *
    Registry means the FAA, Civil Aviation Registry, Aircraft
Registration Branch.
* * * * *
    U.S. citizen * * *
    (2) A partnership each of whose partners is an individual who is a
citizen of the United States.
    (3) A corporation or association organized under the laws of the
United States or a State, the District of Columbia, or a territory or
possession of the United States, of which the president and at least
two-thirds of the board of directors and other managing officers are
citizens of the United States, which is under the actual control of
citizens of the United States, and in which at least 75 percent of the
voting interest is owned or controlled by persons that are citizens of
the United States.

0
12. Amend Sec.  47.3 by:
0
a. Removing the citation ``Sec.  47.31(b)'' where it appears in
paragraph (b)(2) and adding in its place the citation ``Sec.
47.31(c)''; and
0
b. Revising paragraph (a) to read as follows:

Sec.  47.3  Registration required.

    (a) An aircraft may be registered under 49 U.S.C. 44103 only when
the aircraft is not registered under the laws of a foreign country and
is--
    (1) Owned by a citizen of the United States;
    (2) Owned by an individual citizen of a foreign country lawfully
admitted for

permanent residence in the United States;
    (3) Owned by a corporation not a citizen of the United States when
the corporation is organized and doing business under the laws of the
United States or a State within the United States, and the aircraft is
based and primarily used in the United States; or
    (4) An aircraft of--
    (i) The United States Government; or
    (ii) A State, the District of Columbia, a territory or possession
of the United States, or a political subdivision of a State, territory,
or possession.
* * * * *

0
13. Revise the first sentence of Sec.  47.7(d) introductory text to
read as follows:

Sec.  47.7  United States citizens and resident aliens.

* * * * *
    (d) Partnerships. A partnership may apply for a Certificate of
Aircraft Registration, AC Form 8050-3, under 49 U.S.C. 44102 only if
each partner, whether a general or limited partner, is an individual
who is a citizen of the United States. * * *
* * * * *

Sec.  47.8  [Amended]

0
14. Amend Sec.  47.8(c) by removing the citation ``Sec.  47.41(a)(5)''
and adding, in its place, the citation ``Sec.  47.41(a)(3)''.

Sec.  47.11  [Amended]

0
15. Amend Sec.  47.11(b)(1) by removing the words ``certificate of
repossession on FAA Form 8050-4'' and adding, in its place, the words
``Certificate of Repossession of Encumbered Aircraft, FAA Form 8050-
4''.
0
16. Amend Sec.  47.13 by revising paragraphs (a) through (f) to read as
follows:

Sec.  47.13  Signatures and instruments made by representatives.

    (a) Each person signing an Aircraft Registration Application, AC
Form 8050-1, or a document submitted as supporting evidence under this
part, must sign in ink or by other means acceptable to the FAA. If
signed in ink, the Aircraft Registration Application must also have the
typed or legibly printed name of each signer in the signature block.
    (b) When one or more persons doing business under a trade name
submits an Aircraft Registration Application, a document submitted as
supporting evidence under this part, or a request for cancellation of a
Certificate of Aircraft Registration, AC Form 8050-3, the application,
document, or request must be signed by, or on behalf of, each person
who shares title to the aircraft.
    (c) When an agent submits an Aircraft Registration Application, a
document submitted as supporting evidence under this part, or a request
for cancellation of a Certificate of Aircraft Registration, on behalf
of the owner, that agent must--
    (1) State the name of the owner on the application, document, or
request;
    (2) Sign as agent or attorney-in-fact on the application, document,
or request; and
    (3) Submit a signed power of attorney, or a true copy thereof
certified under Sec.  49.21 of this chapter, with the application,
document, or request.
    (d) When a corporation submits an Aircraft Registration
Application, a document submitted as supporting evidence under this
part, or a request for cancellation of a Certificate of Aircraft
Registration, it must--
    (1) Have an authorized person sign, by means acceptable to the FAA,
the application, document, or request;
    (2) Show the title of the signer's office on the application,
document, or request; and
    (3) Submit a copy of the authorization from the board of directors
to sign for the corporation, certified as true under Sec.  49.21 of
this chapter by a corporate officer or other person in a managerial
position therein, with the application, document, or request, unless--
    (i) The signer of the application, document, or request is a
corporate officer or other person in a managerial position in the
corporation and the title of his office is stated in connection with
his signature; or
    (ii) A valid authorization to sign is on file at the Registry.
    (4) The provisions of paragraph (d)(3) of this section do not apply
to an irrevocable deregistration and export request authorization when
an irrevocable deregistration and export request authorization under
the Cape Town Treaty is signed by a corporate officer and is filed with
the Registry.
    (e) When a partnership submits an Aircraft Registration
Application, a document submitted as supporting evidence under this
part, or a request for cancellation of a Certificate of Aircraft
Registration, it must--
    (1) State the full name of the partnership on the application,
document, or request;
    (2) State the name of each general partner on the application,
document, or request; and
    (3) Have a general partner sign the application, document, or
request.
    (f) When co-owners, who are not engaged in business as partners,
submit an Aircraft Registration Application, a document submitted as
supporting evidence under this part, or a request for cancellation of a
Certificate of Aircraft Registration, each person who shares title to
the aircraft under the arrangement must sign the application, document,
or request.
* * * * *

0
17. Amend Sec.  47.15 by:
0
a. Removing the word ``identification'' wherever it appears, including
the section heading, and adding, in its place the word
``registration'';
0
b. Revising paragraphs (a) introductory text, (a)(2), (c), the first
sentence of paragraph (d), and (f);
0
c. Redesignating the undesignated paragraph following paragraph (a)(3)
as (a)(4) and revising it; and
0
d. Adding paragraphs (i) and (j) to read as set forth below.

Sec.  47.15  Registration number.

    (a) Number required. An applicant for aircraft registration must
place a U.S. registration number (registration mark) on the Aircraft
Registration Application, AC Form 8050-1, and on any evidence submitted
with the application. There is no charge for the assignment of numbers
provided in this paragraph. This paragraph does not apply to an
aircraft manufacturer who applies for a group of U.S. registration
numbers under paragraph (c) of this section; a person who applies for a
special registration number under paragraphs (d) through (f) of this
section; or a holder of a Dealer's Aircraft Registration Certificate,
AC Form 8050-6, who applies for a temporary registration number under
47.16.
* * * * *
    (2) Aircraft last previously registered in the United States.
Unless the applicant applies for a different number under paragraphs
(d) through (f) of this section, the applicant must place the U.S.
registration number that is already assigned to the aircraft on the
Aircraft Registration Application, and the supporting evidence. If
there is no number assigned, the applicant must obtain a U.S.
registration number from the Registry by making a written request that
describes the aircraft by make, model, and serial number.
* * * * *
    (4) Duration of a U.S. registration number assignment. Authority to
use the registration number obtained under paragraph (a)(1), (2), or
(3) of this section expires 90 days after the date it is issued unless
the applicant submits an Aircraft Registration Application and complies
with Sec.  47.33 or Sec.  47.37, as applicable, within that period of
time. However, the applicant may obtain an extension of this 90-day
period from the Registry if the applicant shows that the

delay in complying with that section is due to circumstances beyond the
applicant's control.
* * * * *
    (c) An aircraft manufacturer may apply to the Registry for enough
U.S. registration numbers to supply estimated production for the next
18 months. There is no charge for this allocation of numbers.
    (d) Any available, unassigned U.S. registration number may be
assigned as a special registration number. * * *
* * * * *
    (f) The Registry authorizes a special registration number change on
the Assignment of Special Registration Numbers, AC Form 8050-64. The
authorization expires one year from the date the Registry issues an
Assignment of Special Registration Numbers unless the special
registration number is permanently placed on the aircraft. Within five
days after the special registration number is placed on the aircraft,
the owner must complete and sign the Assignment of Special Registration
Numbers, state the date the number was placed on the aircraft, and
return the original form to the Registry. The duplicate of the
Assignment of Special Registration Numbers and the present Certificate
of Aircraft Registration, AC Form 8050-3, must be carried in the
aircraft as temporary authority to operate it. This temporary authority
is valid until the date the owner receives the revised Certificate of
Aircraft Registration showing the new registration number, but in no
case is it valid for more than 120 days from the date the number is
placed on the aircraft.
* * * * *
    (i) When aircraft registration has ended, as described in Sec.
47.41(a), the assignment of a registration number to an aircraft is no
longer authorized for use except as provided in Sec.  47.31(c) and will
be cancelled:
    (1) Following the date established in Sec.  47.40(a)(1) for any
aircraft that has not been re-registered under Sec.  47.40(a);
    (2) Following the expiration date shown on the Certificate of
Aircraft Registration for any aircraft whose registration has not been
renewed under Sec.  47.40(c);
    (3) Following the expiration date shown on the Dealer's Aircraft
Registration Certificate, AC Form 8050-6, for any aircraft registered
under Subpart C of this part, when the certificate has not been
renewed, and the owner has not applied for registration in accordance
with Sec.  47.31; or
    (4) When ownership has transferred--
    (i) Six months after first receipt of notice of aircraft sale or
evidence of ownership from the last registered owner or successive
owners, and an Aircraft Registration Application has not been received.
    (ii) Six months after evidence of ownership authorized under Sec.
47.67 has been submitted, and the applicant has not met the
requirements of this part.
    (iii) Twelve months after a new owner has submitted evidence of
ownership and an Aircraft Registration Application under Sec.  47.31,
and the applicant or a successive applicant has not met the
requirements of this part.
    (j) At the time an assignment of registration number is cancelled,
the number may be reserved for one year in the name of the last owner
of record if a request has been submitted with the fee required by
Sec.  47.17. If the request for reservation and fee are not submitted
prior to cancellation, the registration number is unavailable for
assignment for a period of five years.

Sec.  47.16  [Amended]

0
18. Amend Sec.  47.16(a) by removing the words ``Dealer's Aircraft
Registration Certificates'' and adding, in their place, the words
``Dealer's Aircraft Registration Certificates, AC Form 8050-6,''.

0
19. Amend Sec.  47.17 by revising paragraphs (a)(4), (a)(5), and (a)(6)
and adding paragraph (a)(7) as set forth below:

Sec.  47.17  Fees.

    (a) * * *

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

------------------------------------------------------------------------
(4) Special registration number (each number)..................    10.00
(5) To change, reassign, or reserve a registration number......    10.00
(6) Replacement Certificate of Aircraft Registration...........     2.00
(7) Re-registration or Renewal Certificate of Aircraft              5.00
 Registration..................................................
------------------------------------------------------------------------

* * * * *

0
20. Amend Sec.  47.31 as follows:
0
a. Revise paragraph (a)(1) to read as set forth below;
0
b. Remove the words ``Aircraft Bill of Sale, ACC Form 8050-2'' where
they appear in paragraph (a)(2), and add, in their place, the words
``Aircraft Bill of Sale, AC Form 8050-2'';
0
c. Revise paragraph (c) to read as set forth below; and
0
d. Remove paragraph (d).
    The revisions read as follows:

Sec.  47.31  Application.

    (a) * * *
    (1) An Aircraft Registration Application, AC Form 8050-1, signed by
the applicant in the manner prescribed by Sec.  47.13;
* * * * *
    (c) After compliance with paragraph (a) of this section, the
applicant for registration of an aircraft last previously registered in
the United States must carry the second copy of the Aircraft
Registration Application in the aircraft as temporary authority to
operate without registration.
    (1) This temporary authority is valid for operation within the
United States until the date the applicant receives the Certificate of
Aircraft Registration or until the date the FAA denies the application,
but in no case for more than 90 days after the date the applicant signs
the application. If by 90 days after the date the applicant signs the
Aircraft Registration Application, the FAA has neither issued the
Certificate of Aircraft Registration nor denied the application, the
Registry will issue a letter of extension that serves as authority to
continue to operate the aircraft without registration while it is
carried in the aircraft.
    (2) This temporary authority is not available in connection with
any Aircraft Registration Application received when 12 months have
passed since the receipt of the first application following transfer of
ownership by the last registered owner.
    (3) If there is no registration number assigned at the time
application for registration is made, the second copy of the Aircraft
Registration Application may not be used as temporary authority to
operate the aircraft.
0
21. Amend Sec.  47.33 by removing the word ``identification'' where it
appears in paragraph (c), and adding, in its place, the word
``registration''; and revising paragraph (a)(2) to read as follows:

Sec.  47.33  Aircraft not previously registered anywhere.

    (a) * * *
    (2) Submits with his Aircraft Registration Application, AC Form
8050-1, an Aircraft Bill of Sale, AC Form 8050-2, signed by the seller,
an equivalent bill of sale, or other evidence of ownership authorized
by Sec.  47.11.
* * * * *

0
22. Revise Sec.  47.39 to read as follows:

Sec.  47.39  Effective date of registration.

    An aircraft is registered on the date the Registry determines that
the submissions meet the requirements of this part. The effective date
of registration is shown by a date stamp on the Aircraft Registration
Application, AC Form 8050-1, and as the date of issue on the
Certificate of Aircraft Registration, AC Form 8050-3.

0
23. Add Sec.  47.40 to read as follows:

Sec.  47.40  Registration expiration and renewal.

    (a) Re-registration. Each aircraft registered under this part
before October 1, 2010, must be re-registered in accordance with this
paragraph (a).
    (1) A Certificate of Aircraft Registration issued before October 1,
2010, expires on the expiration date identified in the following
schedule that corresponds with the month in which the certificate was
issued.

------------------------------------------------------------------------
                                                        The owner must
                                                         apply for re-
                                                         registration
  If the certificate was issued     The certificate      between these
               in:                    expires on:       dates--to allow
                                                        delivery of the
                                                        new certificate
                                                       before expiration
------------------------------------------------------------------------
March of any year...............  March 31, 2011....  November 1, 2010
                                                       and January 31,
                                                       2011.
April of any year...............  June 30, 2011.....  February 1, 2011
                                                       and April 30,
                                                       2011.
May of any year.................  September 30, 2011  May 1, 2011 and
                                                       July 31, 2011.
June of any year................  December 31, 2011.  August 1, 2011 and
                                                       October 31, 2011.
July of any year................  March 31, 2012....  November 1, 2011
                                                       and January 31,
                                                       2012.
August of any year..............  June 30, 2012.....  February 1, 2012
                                                       and April 30,
                                                       2012.
September of any year...........  September 30, 2012  May 1, 2012 and
                                                       July 31, 2012.
October of any year.............  December 31, 2012.  August 1, 2012 and
                                                       October 31, 2012.
November of any year............  March 31 2013.....  November 1, 2012
                                                       and January 31,
                                                       2013.
December of any year............  June 30, 2013.....  February 1, 2013
                                                       and April 30,
                                                       2013.
January of any year.............  September 30, 2013  May 1, 2013 and
                                                       July 31, 2013.
February of any year............  December 31, 2013.  August 1, 2013 and
                                                       October 31, 2013.
------------------------------------------------------------------------

     (2) Each holder of a Certificate of Aircraft Registration, AC Form
8050-3, issued before October 1, 2010, must submit an Application for
Aircraft Re-registration, AC Form 8050-1A, and the fee required by
Sec.  47.17, between October 1, 2010, and December 31, 2013, according
to the schedule in paragraph (a)(1) of this section.
    (3) A Certificate of Aircraft Registration issued under this
paragraph expires three years after the last day of the month in which
it is issued.
    (b) Initial Registration. A Certificate of Aircraft Registration
issued in accordance with Sec.  47.31 expires three years after the
last day of the month in which it is issued.
    (c) Renewal. Each holder of a Certificate of Aircraft Registration,
AC Form 8050-3, containing an expiration date may apply for renewal by
submitting an Application for Aircraft Registration Renewal, AC Form
8050-1B, and the fee required by Sec.  47.17 during the six months
preceding the expiration date. A certificate issued under this
paragraph expires three years from the expiration date of the previous
certificate.

0
24. Amend Sec.  47.41 by--
0
a. Removing paragraphs (a)(2) and (a)(4);
0
b. Redesignating paragraph (a)(3) as (a)(2) and paragraphs (a)(5)
through (a)(9) as paragraphs (a)(3) through (a)(7);
0
c. Removing the semi-colon at the end of paragraphs (a)(1) through
(a)(4) and adding in their place a period, and removing the phrase ``;
or'' at the end of newly redesignated paragraph (a)(5) and adding, in
its place, a period; and
0
d. Revising the introductory text of paragraph (a), revising paragraph
(b)(3), and adding paragraph (b)(4) to read as follows:

Sec.  47.41  Duration and return of Certificate.

    (a) Each Certificate of Aircraft Registration, AC Form 8050-3,
issued by the FAA under this subpart is effective, unless registration
has ended by reason of having been revoked, canceled, expired, or the
ownership is transferred, until the date upon which one of the
following events occurs:
* * * * *
    (b) * * *
    (3) Within 21 days of the termination of the registration, by the
holder of the Certificate of Aircraft Registration in all other cases
mentioned in paragraph (a) of this section, except in the case of
expired certificates, the holder must destroy the expired certificate.
    (4) If the certificate is not available for return, as directed in
paragraph (b) of this section, a statement describing the aircraft and
stating the reason the certificate is not available must be submitted
to the Registry within the time required by paragraph (b) of this
section.

0
25. Revise Sec.  47.43(b) to read as follows:

Sec.  47.43  Invalid registration.

* * * * *
    (b) If the registration of an aircraft is invalid under paragraph
(a) of this section, the holder of the invalid Certificate of Aircraft
Registration, AC Form 8050-3, must return it as soon as possible to the
Registry.

0
26. Revise Sec.  47.45 to read as follows:

Sec.  47.45  Change of address.

    Within 30 days after any change in a registered owner's mailing
address, the registered owner must notify the Registry in writing of
the change of address. If a post office box or mailing drop is used for
mailing purposes, the registered owner also must provide that owner's
physical address or location. Upon acceptance, the Registry will issue,
without charge, a revised Certificate of Aircraft Registration, AC Form
8050-3, reflecting the new mailing address. When a post office box or
mailing drop is used for mailing purposes, and the registered owner's
physical address or location changes, the registered owner must notify
the Registry in writing of the new address or location within 30 days.

0
27. Amend Sec.  47.47 by revising the introductory text of paragraph
(a) and paragraph (a)(1) as follows:

Sec.  47.47  Cancellation of Certificate for export purpose.

    (a) The holder of a Certificate of Aircraft Registration, AC Form
8050-3, or the holder of an irrevocable deregistration and export
request authorization recognized under the Cape Town Treaty and filed
with the FAA, who wishes to cancel the Certificate of Aircraft
Registration for the purpose of export must submit to the Registry--
    (1) A written request for cancellation of the Certificate of
Aircraft Registration describing the aircraft by make, model, and
serial number, and stating the U.S. registration number and the country
to which the aircraft will be exported;
* * * * *

0
28. Revise Sec.  47.49 to read as follows:

Sec.  47.49  Replacement of Certificate.

    (a) If the original Certificate of Aircraft Registration, AC Form
8050-3, is lost, stolen, or mutilated, the registered owner may submit
to the Registry a written request that states the reason a replacement
certificate is needed and the fee required by Sec.  47.17. The Registry
will send a replacement certificate to the registered owner's mailing
address

or to another mailing address if requested in writing by the registered
owner.
    (b) The registered owner may request a temporary Certificate of
Aircraft Registration pending receipt of a replacement certificate. The
Registry issues a temporary Certificate of Aircraft Registration in the
form of a fax that must be carried in the aircraft until receipt of the
replacement certificate.

Sec.  47.51  [Removed and Reserved]

0
29. Remove and reserve Sec.  47.51.

0
30. Amend Sec.  47.61 by--
0
a. Revising the section heading:
0
b. Removing the word ``Dealers''' from paragraph (b), and adding, in
its place, the word ``Dealer's''; and
0
c. Revising the introductory text of paragraph (a) and paragraph (a)(2)
and adding paragraph (c) to read as follows:

Sec.  47.61  Dealer's Aircraft Registration Certificates.

    (a) The FAA issues a Dealer's Aircraft Registration Certificate, AC
Form 8050-6, to U.S. manufacturers and dealers to--
* * * * *
    (2) Facilitate operating, demonstrating, and merchandising aircraft
by the manufacturer or dealer without the burden of obtaining a
Certificate of Aircraft Registration, AC Form 8050-3, for each aircraft
with each transfer of ownership, under Subpart B of this part.
* * * * *
    (c) If the Dealer's Aircraft Registration Certificate expires under
Sec.  47.71, and an aircraft is registered under this Subpart,
application for registration must be made under Sec.  47.31, or the
assignment of registration number may be cancelled in accordance with
Sec.  47.15(i)(3).

Sec.  47.63  [Amended]

0
31. Amend Sec.  47.63(a) by removing the words ``An Application for
Dealers' Aircraft Registration Certificates'' and adding, in their
place, the words ``A Dealer's Aircraft Registration Certificate
Application''.

0
32. Revise Sec.  47.65 to read as follows:

Sec.  47.65  Eligibility.

    To be eligible for a Dealer's Aircraft Registration Certificate, AC
Form 8050-6, the applicant must have an established place of business
in the United States, must be substantially engaged in manufacturing or
selling aircraft, and must be a citizen of the United States, as
defined by 49 U.S.C. 40102 (a)(15).

0
33. Revise Sec.  47.67 to read as follows:

Sec.  47.67  Evidence of ownership.

    Before using a Dealer's Aircraft Registration Certificate, AC Form
8050-6, for operating the aircraft, the holder of the certificate
(other than a manufacturer) must send to the Registry evidence of
ownership under Sec.  47.11. An Aircraft Bill of Sale, AC Form 8050-2,
or its equivalent, may be used as evidence of ownership. There is no
recording fee.

Sec.  47.69  [Amended]

0
34. Amend Sec.  47.69 by removing the words ``Dealer's Aircraft
Registration Certificate'' in the introductory text, and adding, in
their place, the words ``Dealer's Aircraft Registration Certificate, AC
Form 8050-6''.

0
35. Amend Sec.  47.71 by--
0
a. Removing the words ``Dealer's Aircraft Registration Certificate'' in
paragraph (a), and adding, in their place, the words ``Dealer's
Aircraft Registration Certificate, AC Form 8050-6,''; and
0
b. Revising paragraph (b) to read as follows:

Sec.  47.71  Duration of Certificate; change of status.

* * * * *
    (b) The holder of a Dealer's Aircraft Registration Certificate must
immediately notify the Registry of any of the following--
    (1) A change of name;
    (2) A change of address;
    (3) A change that affects status as a citizen of the United States;
or
    (4) The discontinuance of business.

PART 91--GENERAL OPERATING AND FLIGHT RULES

0
36. The authority citation for part 91 continues to read as follows:

    Authority:  49 U.S.C. 106(g), 1155, 40103, 40113, 40120, 44101,
44111, 44701, 44704, 44709, 44711, 44712, 44715, 44716, 44717,
44722, 46306, 46315, 46316, 46504, 46506-46507, 47122, 47508, 47528-
47531, articles 12 and 29 of the Convention on International Civil
Aviation (61 Stat. 1180).

0
37. Amend Sec.  91.203 by revising paragraph (a)(2) to read as follows:

Sec.  91.203  Civil aircraft: Certifications required.

    (a) * * *
    (2) An effective U.S. registration certificate issued to its owner
or, for operation within the United States, the second copy of the
Aircraft registration Application as provided for in Sec.  47.31(c), or
a registration certification issued under the laws of a foreign
country.
* * * * *

    Issued in Washington, DC, on July 9, 2010.
J. Randolph Babbitt,
Administrator.
[FR Doc. 2010-17572 Filed 7-19-10; 8:45 am]
BILLING CODE 4910-13-P