4300 Federal Register / Vol. 79, No. 17 / Monday, January 27, 2014 / Proposed Rules 

7This provision does not supersede other 

regulatory requirements regarding the composition 

of the Board that apply to Federal savings 

associations. These institutions must continue to 

comply with such other requirements. 

2. Capital stress testing and planning 

processes; 

3. Liquidity stress testing and planning 

processes; 

4. Product and service risk management 

processes, including those for approving new 

and modified products and services; 

5. Decisions regarding acquisitions and 

divestitures; and 

6. Compensation and performance 

management programs. 

L. Talent management processes. The bank 

should establish and adhere to processes for 

talent development, recruitment, and 

succession planning to ensure that 

management and employees who are 

responsible for or influence material risk 

decisions have the knowledge, skills, and 

abilities to effectively identify, measure, 

monitor, and control relevant risks. The 

talent management processes should ensure 

that: 

1. The board of directors or a board 

committee: 

(i) Hires a Chief Executive Officer and 

approves the hiring of direct reports of the 

Chief Executive Officer with the skills and 

abilities to design and implement an effective 

risk governance framework; 

(ii) Establishes reliable succession plans for 

the individuals described in (i) of this 

paragraph; and 

(iii) Oversees the talent development, 

recruitment, and succession planning 

processes for individuals two levels down 

from the Chief Executive Officer. 

2. The board of directors or a board 

committee: 

(i) Hires one or more Chief Risk Executives 

and a Chief Audit Executive that possess the 

skills and abilities to effectively implement 

the risk governance framework; 

(ii) Establishes reliable succession plans for 

the individuals described in (i) of this 

paragraph; and 

(iii) Oversees the talent development, 

recruitment, and succession planning 

processes for independent risk management 

and internal audit. 

M. Compensation and performance 

management programs. The bank should 

establish and adhere to compensation and 

performance management programs that meet 

the requirements of any applicable statute or 

regulation and are appropriate to: 

1. Ensure the Chief Executive Officer, front 

line units, independent risk management, 

and internal audit implement and adhere to 

an effective risk governance framework; 

2. Ensure front line unit compensation 

plans and decisions appropriately consider 

the level and severity of issues and concerns 

identified by independent risk management 

and internal audit; 

3. Attract and retain the talent needed to 

design, implement, and maintain an effective 

risk governance framework; and 

4. Prohibit incentive-based payment 

arrangements, or any feature of any such 

arrangement, that encourages inappropriate 

risks by providing excessive compensation or 

that could lead to material financial loss. 

III. Standards for Board of Directors 

A. Ensure an effective risk governance 

framework. Each member of the bank’s board 

of directors has a duty to oversee the bank’s 

compliance with safe and sound banking 

practices. Consistent with this duty, the 

board of directors should ensure that the 

bank establishes and implements an effective 

risk governance framework that meets the 

minimum standards described in these 

Guidelines. The board of directors or the 

board’s risk committee should approve any 

changes to the risk governance framework. 

B. Provide active oversight of management. 

The bank’s board of directors should actively 

oversee the bank’s risk-taking activities and 

hold management accountable for adhering 

to the risk governance framework. In 

providing active oversight, the board of 

directors should question, challenge, and 

when necessary, oppose recommendations 

and decisions made by management that 

could cause the bank’s risk profile to exceed 

its risk appetite or jeopardize the safety and 

soundness of the bank. 

C. Exercise independent judgment. When 

carrying out his or her duties under III.B., 

each member of the board of directors should 

exercise sound, independent judgment. 

D. Include independent directors. To 

promote effective, independent oversight of 

bank management, at least two members of 

the board of directors should not be members 

of the bank’s management or the parent 

company’s management.7

E. Provide ongoing training to independent 

directors. To ensure each member of the 

board of directors has the knowledge, skills, 

and abilities needed to meet the standards set 

forth in these Guidelines, the board of 

directors should establish and adhere to a 

formal, ongoing training program for 

independent directors. This program should 

include training on: 

(i) Complex products, services, lines of 

business, and risks that have a significant 

impact on the bank; 

(ii) Laws, regulations, and supervisory 

requirements applicable to the bank; and 

(iii) Other topics identified by the board of 

directors. 

F. Self-assessments. The bank’s board of 

directors should conduct an annual selfassessment that includes an evaluation of its 

effectiveness in meeting the standards in 

section III of these Guidelines. 

PART 170 [REMOVED] 

■ 13. Remove Part 170. 

Dated: January 10, 2014. 

Thomas J. Curry, 

Comptroller of the Currency. 

[FR Doc. 2014–00639 Filed 1–24–14; 8:45 am] 

BILLING CODE 4810–33–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2014–0031; Directorate 

Identifier 2013–CE–054–AD] 

RIN 2120–AA64 

Airworthiness Directives; SOCATA 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for 

SOCATA Model TBM 700 airplanes that 

would supersede AD 99–07–11. This 

proposed AD results from mandatory 

continuing airworthiness information 

(MCAI) originated by an aviation 

authority of another country to identify 

and correct an unsafe condition on an 

aviation product. The MCAI describes 

the unsafe condition as cracks on the 

outboard hinge fittings. We are issuing 

this proposed AD to require actions to 

address the unsafe condition on these 

products. 

DATES: We must receive comments on 

this proposed AD by March 13, 2014. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

For service information identified in 

this proposed AD, contact SOCATA, 

Direction des Services, 65921 Tarbes 

Cedex 9, France; telephone +33 (0) 5 62 

41 73 00; fax +33 (0) 5 62 41 76 54, or 

for North America: SOCATA NORTH 

AMERICA, North Perry Airport, 7501 

South Airport Road, Pembroke Pines, 

Florida 33023; telephone: (954) 893– 

1400; fax: (954) 964–4141; email: 

mysocata@socata.daher.com; Internet: 

www.mysocata.com. You may review 

copies of the referenced service 

information at the FAA, Small Airplane 

Directorate, 901 Locust, Kansas City, 


pmangrum on DSK3VPTVN1PROD with PROPOSALS-1
Federal Register / Vol. 79, No. 17 / Monday, January 27, 2014 / Proposed Rules 4301 

Missouri 64106. For information on the 

availability of this material at the FAA, 

call (816) 329–4148. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating it in Docket No. FAA– 

2014–0031; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(telephone (800) 647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Albert Mercado, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 

Locust, Room 301, Kansas City, 

Missouri 64106; telephone: (816) 329– 

4119; fax: (816) 329–4090; email: 

albert.mercado@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2014–0031; Directorate Identifier 

2013–CE–054–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http://

regulations.gov, including any personal 

information you provide. We will also 

post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

On March 18, 1999, we issued AD 99– 

07–11, Amendment 39–11096 (64 FR 

14820, March 29, 1999) (‘‘AD 99–07– 

11’’). That AD required actions intended 

to address an unsafe condition on the 

products listed above. 

Since we issued AD 99–07–11, 

SOCATA determined that the cause of 

the cracks in the horizontal stabilizer 

outboard hinge fitting was due to the 

incorrect installation of the fittings 

during production, which induced 

stress. SOCATA has issued new 

mandatory service information to 

require a modification to the outboard 

hinge fittings of the horizontal stabilizer 

to eliminate the stress. 

The European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Community, has issued AD No. 2013– 

0035, dated February 22, 2013 (referred 

to after this as ‘‘the MCAI’’), to correct 

an unsafe condition for the specified 

products. The MCAI states: 

During the 1990s, several occurrences were 

reported of finding cracks in the outboard 

hinge fittings of the horizontal stabiliser on 

TBM 700 aeroplanes. 

This condition, if not detected and corrected, 

could result in rupture of the outboard hinge 

fittings, which would adversely affect the 

structural integrity of the horizontal 

stabiliser. The in-flight loss of the horizontal 

stabiliser would result in reduced control of 

the aeroplane, 

To address this unsafe condition, DGAC 

France issued AD 1999–060(A), requiring 

repetitive inspections of the fittings and, 

depending on findings, corrective action. 

After that AD was issued, SOCATA 

determined that the cause of the cracks was 

a wrong installation of the fittings during 

production, inducing stress. Consequently, 

DGAC France issued AD 2000–307(A), 

partially retaining the requirements of DGAC 

France AD 1999–060(A), which was 

superseded, and required, depending on 

findings, that the installation of the fittings 

of in-service aeroplanes be rectified by 

introduction of adjusting shims, a 

modification which was introduced as 

standard on the production line from MSN 

162. The periodical inspection of the fittings 

for cracks was still required, pending a better 

understanding of the cause of the cracks. 

Since DCAG France AD 2000–307(A) was 

issued, the results of the further analysis 

revealed that the final design (installation of 

shims on the outboard hinge fittings of the 

horizontal stabiliser) guarantees a service 

fatigue life which exceeds the one 

established for the TBM 700 during 

certification. Consequently, for aeroplanes 

with this modification, the repetitive 

inspections of the fittings can be 

discontinued. However, as the installation of 

the fittings was only required depending on 

findings, this modification may not have 

been accomplished on all affected 

aeroplanes. 

For the reasons described above, this AD 

supersedes (and thereby cancels the 

requirements of) DGAC France AD 2000– 

307(A) and requires installation of shims on 

the outboard hinge fittings of the horizontal 

stabiliser. 

You may examine the MCAI on the 

Internet at http://www.regulations.gov 

by searching for and locating it in 

Docket No. FAA–2014–0031. 

Relevant Service Information 

DAHER–SOCATA has issued TBM 

Aircraft Mandatory Service Bulletin SB 

70–080, Amendment 2, dated August 

2012. The actions described in this 

service information are intended to 

correct the unsafe condition identified 

in the MCAI. 

FAA’s Determination and Requirements 

of the Proposed AD 

This product has been approved by 

the aviation authority of another 

country, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with this State of 

Design Authority, they have notified us 

of the unsafe condition described in the 

MCAI and service information 

referenced above. We are proposing this 

AD because we evaluated all 

information and determined the unsafe 

condition exists and is likely to exist or 

develop on other products of the same 

type design. 

Costs of Compliance 

We estimate that this proposed AD 

will affect 159 products of U.S. registry. 

We also estimate that it would take 

about 6.5 work-hours per product to 

comply with the basic requirements of 

this proposed AD. The average labor 

rate is $85 per work-hour. Required 

parts would cost about $500 per 

product. 

Based on these figures, we estimate 

the cost of the proposed AD on U.S. 

operators to be $167,347.50, or 

$1,052.50 per product. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would not have a 

substantial direct effect on the States, on 

the relationship between the national 

Government and the States, or on the 

distribution of power and 


pmangrum on DSK3VPTVN1PROD with PROPOSALS-1
4302 Federal Register / Vol. 79, No. 17 / Monday, January 27, 2014 / Proposed Rules 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this proposed regulation: 

(1) Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866, 

(2) Is not a ‘‘significant rule’’ under 

the DOT Regulatory Policies and 

Procedures (44 FR 11034, February 26, 

1979), 

(3) Will not affect intrastate aviation 

in Alaska, and 

(4) Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

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

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by 

removing Amendment 39–11096 (64 FR 

14820, March 29, 1999), and adding the 

following new AD: 

SOCATA: Docket No. FAA–2014–0031; 

Directorate Identifier 2013–CE–054–AD. 

(a) Comments Due Date 

We must receive comments by March 13, 

2014. 

(b) Affected ADs 

This AD supersedes AD 99–07–11, 

Amendment 39–11096 (64 FR 14820, March 

29, 1999). 

(c) Applicability 

This AD applies to SOCATA TBM 700 

airplanes, manufacturer serial numbers 

(MSN) 1 through 98, 100 through 156, and 

158 through 161, certificated in any category. 

(d) Subject 

Air Transport Association of America 

(ATA) Code 55: Stabilizers. 

(e) Reason 

This AD was prompted by mandatory 

continuing airworthiness information (MCAI) 

originated by an aviation authority of another 

country to identify and correct an unsafe 

condition on an aviation product. The MCAI 

describes the unsafe condition as cracks on 

the outboard hinge fittings. We are issuing 

this AD to require the use of new service 

information issued by DAHER–SOCATA to 

eliminate the stress on the outboard hinge 

fittings, which is causing the cracks. If this 

condition is not prevented, the outboard 

hinge fittings could fail causing reduced 

structural integrity of the horizontal 

stabilizer, which could result in reduced 

control. 

(f) Actions and Compliance 

Unless already done, within the next 100 

hours time-in-service after the effective date 

of this AD or within the next 12 months after 

the effective date of this AD, whichever 

occurs first, install shims on the outboard 

hinge fittings of the horizontal stabilizer. Do 

the modification following the 

Accomplishment Instructions in DAHER– 

SOCATA TBM Aircraft Mandatory Service 

Bulletin SB 70–080, Amendment 2, dated 

August 2012. 

(g) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, Standards Office, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. Send information to 

ATTN: Albert Mercado, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 Locust, 

Room 301, Kansas City, Missouri 64106; 

telephone: (816) 329–4119; fax: (816) 329– 

4090; email: alebert.mercado@faa.gov. Before 

using any approved AMOC on any airplane 

to which the AMOC applies, notify your 

appropriate principal inspector (PI) in the 

FAA Flight Standards District Office (FSDO), 

or lacking a PI, your local FSDO. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(h) Related Information 

Refer to MCAI European Aviation Safety 

Agency (EASA) AD No. 2013–0035, dated 

February 22, 2013, for related information. 

You may examine the MCAI on the Internet 

at http://www.regulations.gov by searching 

for and locating it in Docket No. FAA–2014– 

0031. For service information related to this 

AD, contact SOCATA, Direction des Services, 

65921 Tarbes Cedex 9, France; telephone +33 

(0) 5 62 41 73 00; fax +33 (0) 5 62 41 76 54, 

or for North America: SOCATA NORTH 

AMERICA, North Perry Airport, 7501 South 

Airport Road, Pembroke Pines, Florida 

33023; telephone: (954) 8–9893–1400; fax: 

(954) 964–4141; email: mysocata@

socata.daher.com; Internet: 

www.mysocata.com. You may review copies 

of the referenced service information at the 

FAA, Small Airplane Directorate, 901 Locust, 

Kansas City, Missouri 64106. For information 

on the availability of this material at the 

FAA, call (816) 329–4148. 

Issued in Kansas City, Missouri, on January 

17, 2014. 

Pat Mullen, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2014–01470 Filed 1–24–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–141036–13] 

RIN 1545–BL91 

Minimum Essential Coverage and 

Other Rules Regarding the Shared 

Responsibility Payment for Individuals 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

and notice of public hearing. 

SUMMARY: This document contains 

proposed regulations relating to the 

requirement to maintain minimum 

essential coverage enacted by the 

Patient Protection and Affordable Care 

Act and the Health Care and Education 

Reconciliation Act of 2010, as amended 

by the TRICARE Affirmation Act and 

Public Law 111–173. These proposed 

regulations affect individual taxpayers 

who may be liable for the shared 

responsibility payment for not 

maintaining minimum essential 

coverage. This document also provides 

notice of a public hearing on these 

proposed regulations. 

DATES: Comments must be received by 

April 28, 2014. Outlines of topics to be 

discussed at the public hearing 

scheduled for May 21, 2014, at 10 a.m., 

must be received by April 28, 2014. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–141036–13), room 

5205, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–141036– 

13), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC, or sent electronically 

via the Federal eRulemaking Portal at 

www.regulations.gov (IRS REG–141036– 

13). The public hearing will be held in 

the IRS Auditorium, Internal Revenue 

Building, 1111 Constitution Avenue 

NW., Washington, DC. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Sue-Jean Kim or John B. Lovelace, (202) 


pmangrum on DSK3VPTVN1PROD with PROPOSALS-1