This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

3059 

Vol. 83, No. 15 

Tuesday, January 23, 2018 

OFFICE OF PERSONNEL 

MANAGEMENT 

5 CFR Part 890 

RIN 3206–AN09 

Federal Employees Health Benefits 

Program: Removal of Eligible and 

Ineligible Individuals From Existing 

Enrollments 

AGENCY: Office of Personnel 

Management. 

ACTION: Final rule. 

SUMMARY: The United States Office of 

Personnel Management (OPM) is issuing 

a final rule amending Federal 

Employees Health Benefits (FEHB) 

Program regulations to provide a 

process for removal of certain identified 

individuals who are found not to be 

eligible as family members from FEHB 

enrollments. This process would apply 

to individuals for whom there is a 

failure to provide adequate 

documentation of eligibility when 

requested. This action also amends 

Federal Employees Health Benefits 

(FEHB) Program regulations to allow 

certain eligible family members to be 

removed from existing self and family or 

self plus one enrollments. 

DATES: This rule is effective February 

22, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Marguerite Martel at marguerite.martel@

opm.gov or (202) 606–0004. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The Federal Employees Health 

Benefits (FEHB) Program is 

administered by the Office of Personnel 

Management (OPM) in accordance with 

Title 5, Chapter 89 of the United States 

Code and our implementing regulations 

at title 5, part 890 of the Code of Federal 

Regulations. The statute establishes the 

basic rules for benefits, enrollment, and 

participation. OPM contracts with 

health benefits plans to provide 

coverage under the statute. OPM is 

authorized to prescribe regulations to 

govern the time, manner and conditions 

under which an employee can enroll in 

a health benefits plan under the FEHB 

Program and the beginning and end 

dates of coverage for annuitants and 

family members. 

I. Background 

The Federal Employees Health 

Benefits (FEHB) Program provides 

health insurance to about 8.2 million 

Federal employees, retirees, and their 

dependents each year. It is the largest 

employer-sponsored health insurance 

program in the country providing more 

than $53 billion in health care benefits 

annually. Coverage options available to 

eligible individuals include self only, 

self plus one or self and family coverage 

in an approved health benefits plan. 

Eligible family members include the 

spouse of an employee or annuitant and 

a child under 26 years of age, including 

adopted children, stepchildren or foster 

children or a child regardless of age who 

is incapable of self-support because of 

mental or physical disability which 

existed before age 26. 

On December 1, 2016, OPM published 

a proposed rule (81 FR 86902) to 1) 

provide that proof of family member 

eligibility may be required for coverage 

under an FEHB Program self plus one or 

self and family enrollment and 2) to 

establish the circumstances under 

which individuals covered under an 

existing self plus one or self and family 

FEHB enrollment will be removed from 

such enrollment and the processes for 

removal, where the enrollee does not 

provide adequate documentation of 

eligibility. Previously, under 5 CFR 

890.302, all eligible family members are 

covered under a self and family 

enrollment. The regulations did not 

address the removal of an erroneouslycovered ineligible individual from an 

existing self plus one or self and family 

enrollment. 

On the same date, the Office of 

Personnel Management (OPM) 

published a Notice of Proposed 

Rulemaking (NPRM) (81 FR 86898) 

allowing certain eligible family 

members to be removed from self plus 

one and self and family enrollments in 

limited circumstances. This would 

change the current provision at 5 CFR 

890.302, which provides that all family 

members that are eligible according to 

the FEHB Act (5 U.S.C. 8901) are 

automatically covered under a self and 

family enrollment. 

This regulation merges and finalizes 

these two proposed regulations. The 

proposed regulations were published 

separately, but have now been merged 

for regulatory efficiency as both 

proposed regulations address title 5, 

Code of Federal Regulations, §§ 890.302, 

Coverage of Family Members, and 

890.308, Disenrollment. 

Both proposed regulations had 60-day 

comment periods. The regulations 

concerning ineligible family members 

received four comments: One from an 

interested citizen, one from an agency 

HR employee and one from a trade 

group representing FEHB Program plans 

with one duplicate comment. Two of 

the comments were supportive of the 

proposed rule and none objected to the 

proposed regulation. The proposed rule 

concerning eligible family members 

received three comments: one from an 

interested citizen, one from an agency 

HR employee and one from a trade 

group representing FEHB Program 

plans. Two of the comments were 

supportive of the proposed rules and 

none objected to the change in policy. 

II. Responses to Comments 

Ineligible Family Member Regulation 

One commenter requested that OPM 

specify whether a submission of a 

reconsideration request delays the 

effective date of the initial removal. The 

provisions added in § 890.308(e) and (f) 

mirror the processes outlined in 

§ 890.308(a) for disenrollment of 

employees. That provision does not 

provide a delayed effective date for 

reconsideration and so we are not 

adding one to this section. If an enrollee 

or the removed individual seeks 

reconsideration and the agency or OPM 

finds the family member to be eligible, 

the family member will receive 

retroactive coverage. 

One commenter asked whether OPM 

is now requesting that agencies to track 

family members. This regulation does 

not require agencies to track family 

members, but forthcoming subregulatory guidance may require 

agencies to collect proof of eligibility in 

certain circumstances. The regulations 

amend § 890.302 to provide that proof of 

family member eligibility must be 

provided upon request by a carrier, 

employing office, or OPM. 


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3060 Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Rules and Regulations 

Two commenters asked how an FEHB 

Program carrier would be aware of an 

initial determination of ineligibility 

under proposed § 890.308(f)(1) and 

requested further guidance on all 

required methods of notification to 

FEHB Program carriers. Section 

890.308(f)(1) states that the employing 

office or OPM, as applicable, will direct 

the carrier to remove the individual if 

proof of eligibility is not provided by 

the enrollee. OPM will publish a 

Benefits Administration Letter 

(available at https://www.opm.gov/ 

healthcare-insurance/healthcare/ 

reference-materials/#url=BALs) and a 

Carrier Letter (available at https://

www.opm.gov/healthcare-insurance/ 

healthcare/carriers/#url=Carrier-Letters) 

following the publication of this 

regulation to carriers and to agencies 

providing a specific process to notify 

carriers and/or employing offices of any 

coverage changes effectuated under this 

regulation. One commenter further 

added that the carrier should receive the 

reasoning behind the removal of the 

individual. Accordingly, the final rule 

provides that the employing office or 

OPM shall provide a copy of the letter 

sent to the enrollee concerning removal 

under § 890.308(f)(1) to the carrier. 

One commenter suggested that OPM 

add an effective date for a removal 

under § 890.308(f)(3) and (e)(3) where 

fraud or intentional misrepresentation 

are found. OPM has updated the final 

regulation to specify that if fraud or 

intentional misrepresentation of 

material fact is found, the effective date 

of the removal is the date of loss of 

eligibility. 

One commenter suggested that OPM 

add examples to § 890.308(g) to clarify 

how temporary continuation of coverage 

(TCC), conversion and extension of 

coverage rules will operate under the 

regulations. An example has been added 

to clarify that an individual will not be 

eligible to receive TCC, conversion or an 

extension of coverage unless the 

removal is effectuated within the time 

limit currently required under existing 

regulations. 

Removal of Eligible Family Members 

From Existing Enrollment Regulation 

One commenter asked who will be 

responsible for collecting 

documentation and determining proof 

of eligibility status and whether that 

information will need to be forwarded 

to FEHB Program carriers. The proposed 

rule provided and the final rule 

maintains that employing offices will be 

responsible for collecting 

documentation and determining proof 

of eligibility status and that the 

information will be sent to FEHB 

Program carriers. Two commenters 

asked that OPM specify how this 

information should be provided to 

carriers and how it should be 

maintained and tracked. OPM plans to 

publish a Benefits Administration Letter 

and a Carrier Letter to employing offices 

and FEHB Program carriers following 

the publication of this regulation 

including a process for agencies to 

inform carriers of changes in covered 

family members and documentation that 

needs to be collected to effectuate a 

change. 

One commenter requested that OPM 

change the proposed effective date of 

removals. The proposed rule makes the 

removal effective on the first day of the 

pay period following a notarized request 

received from the family member at 

issue and on the first day of the second 

pay period following a request to 

remove a child received from the 

enrollee. The commenter requested that 

the effective date be the first day of the 

third pay period for enrollees who pay 

premiums bi-weekly and the second pay 

period for enrollees who pay premiums 

monthly as the effective date for either 

type of family member removal. OPM 

agrees that this avoids unnecessary 

benefit overpayments and ensures that a 

family member has sufficient time to 

obtain replacement health benefits 

coverage. The final rule makes this 

change. 

We have also made minor, nonsubstantive editorial changes to the 

regulation for editorial consistency and 

to improve clarity. In addition, we have 

updated the regulation to clarify that 

either the enrollee or the removed 

individual can provide proof of 

eligibility or request reconsideration of 

the initial decision. 

Expected Impact of Changes Based on 

the Rule 

The FEHB Program currently has a 

total of 262 health plan options for 

employees to choose from for their 

health benefits coverage. Historically, 

about 18,000 of FEHB participants 

switch health care plans in any given 

year. There are approximately 4 million 

family members covered under FEHB 

Program. While this rule may lower 

costs to the FEHB Program by reducing 

the number of eligible and ineligible 

family members, OPM does not have 

data available to calculate specific rates. 

However, OPM has found anecdotal 

evidence which estimates between 1–3 

percent of spouses and 4–12 percent of 

children in commercial health plans are 

ineligible for coverage. So, we anticipate 

this rule will not have widespread 

applicability across the Program. 

Executive Order Requirements 

Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule 

has been designated a ‘‘significant 

regulatory action,’’ under Executive 

Order 12866. 

This final rule is not subject to the 

requirements of E.O. 13771 (82 FR 9339, 

February 3, 2017) because it is related 

to agency organization, management, or 

personnel. 

Regulatory Flexibility Act 

I certify that this regulation will not 

have a significant economic impact on 

a substantial number of small entities. 

Federalism 

We have examined this rule in 

accordance with Executive Order 13132, 

Federalism, and have determined that 

this rule will not have any negative 

impact on the rights, roles, and 

responsibilities of State, local, or Tribal 

governments. 

Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. chapter 35; see 5 CFR part 

1320) requires that the U.S. Office of 

Management and Budget (OMB) 

approve all collections of information 

by a Federal agency from the public 

before they can be implemented. 

Respondents are not required to respond 

to any collection of information unless 

it displays a current valid OMB control 

number. OPM is not proposing any 

additional collections in this rule. This 

rule involves an OMB approved 

collection of information subject to the 

PRA—OMB No. 3206–0160, Health 

Benefits Election Form. The public 

reporting burden for this collection is 

estimated to average 30 minutes per 

response, including time for reviewing 

instructions, searching existing data 

sources, gathering and maintaining the 

data needed, and completing and 

reviewing the collection of information. 

The total burden hour estimate for this 

form is 9,000 hours. The systems of 

record notice for this collection is: 

OPM/Central 1 Civil Service Retirement 

and Insurance Records, available at 

https://www.opm.gov/informationmanagement/privacy-policy/sorn/opmVerDate Sep<11>2014 15:56 Jan 22, 2018 Jkt 244001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\23JAR1.SGM 23JAR1

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Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Rules and Regulations 3061 

sorn-central-1-civil-service-retirementand-insurance-records.pdf. 

List of Subjects on 5 CFR Part 890 

Administrative practice and 

procedure, Government employees, 

Health insurance. 

U.S. Office of Personnel Management. 

Kathleen M. McGettigan, 

Acting Director. 

For the reasons set forth in the 

preamble, OPM amends 5 CFR part 890 

as follows: 

PART 890—FEDERAL EMPLOYEES 

HEALTH BENEFITS PROGRAM 

■ 1. The authority citation for part 890 

continues to read as follows: 

Authority: 5 U.S.C. 8913; Sec. 890.301 also 

issued under sec. 311 of Pub. L. 111–03, 123 

Stat. 64; Sec. 890.111 also issued under 

section 1622(b) of Pub. L. 104–106, 110 Stat. 

521; Sec. 890.112 also issued under section 

1 of Pub. L. 110–279, 122 Stat. 2604; 5 U.S.C. 

8913; Sec. 890.803 also issued under 50 

U.S.C. 403p, 22 U.S.C. 4069c and 4069c–1; 

subpart L also issued under sec. 599C of 101, 

104 Stat. 2064, as amended; Sec. 890.102 also 

issued under sections 11202(f), 11232(e), 

11246(b) and (c) of Pub. L. 105–33, 111 Stat. 

251; and section 721 of Pub. L. 105–261, 112 

Stat. 2061; Pub. L. 111–148, as amended by 

Pub. L. 111–152. 

■ 2. Revise § 890.302(a)(1) to read as 

follows: 

§ 890.302 Coverage of family members. 

(a)(1) Enrollment. An enrollment for 

self plus one includes the enrollee and 

one eligible family member. An 

enrollment for self and family includes 

all family members who are eligible to 

be covered by the enrollment except as 

provided in § 890.308(h). Proof of family 

member eligibility may be required, and 

must be provided upon request, to the 

carrier, the employing office or OPM. 

Except as provided in paragraph (a)(2) 

of this section, no employee, former 

employee, annuitant, child, or former 

spouse may enroll or be covered as a 

family member if he or she is already 

covered under another person’s self plus 

one or self and family enrollment in the 

FEHB Program. 

* * * * * 

■ 3. Amend § 890.308 by: 

■ a. Revising the section heading; 

■ b. Adding headings to paragraphs (a), 

(b), (c), and (d); and 

■ c. Adding paragraphs (e), (f), (g), and 

(h). 

The revisions and additions read as 

follows: 

§ 890.308 Disenrollment and removal from 

enrollment. 

(a) Carrier disenrollment: Enrollment 

reconciliation. *** 

(b) Carrier disenrollment: Death of 

enrollee. *** 

(c) Carrier disenrollment: Child 

survivor annuitant. *** 

(d) Carrier disenrollment: Separation 

from Federal employment. *** 

(e) Carrier removal from enrollment: 

Ineligible individuals. (1) A carrier may 

request verification of eligibility from 

the enrollee at any time of an individual 

who is covered as a family member of 

the enrollee in accordance with 

§ 890.302. To verify eligibility, the 

carrier shall send the enrollee a request 

for appropriate documentation of the 

individual’s relationship to the enrollee 

with a copy to the enrollee’s employing 

office of record. The request shall 

contain a written notice that the 

individual will no longer be covered 60 

calendar days after the date of the notice 

unless the enrollee or the employing 

office provides appropriate 

documentation as requested. If the 

carrier does not receive the requested 

documentation within the specified 

time frame or if based on the 

documentation provided the individual 

is found not to be eligible, the carrier 

shall remove the individual from the 

enrollment and shall provide written 

notice of removal to the enrollee, with 

a copy to the employing office, 

including an explanation of the process 

for seeking reconsideration. The carrier 

may extend the time limit to provide 

appropriate documentation if the 

enrollee or the removed individual 

shows to the carrier that he or she was 

prevented by circumstances beyond his 

or her control from providing timely 

documentation. 

(2) Appropriate documentation 

includes, but is not limited to, copies of 

birth certificates, marriage certificates, 

and, if applicable, other proof including 

that the individual lives with the 

enrollee and the enrollee is the 

individual’s primary source of financial 

support. 

(3) The effective date of a removal 

shall be prospective unless the record 

shows that the enrollee or the removed 

individual has committed fraud or made 

an intentional misrepresentation of 

material fact as prohibited by the terms 

of the plan. If fraud or intentional 

misrepresentation of material fact is 

found, the effective date of the removal 

is the date of loss of eligibility. 

(4) A request for reconsideration of 

the carrier’s initial decision must be 

filed by the enrollee or the removed 

individual with the enrollee’s 

employing office within 60 calendar 

days after the date of the carrier’s initial 

decision. The employing office must 

notify the carrier when a request for 

reconsideration of the decision to 

remove the individual from the 

enrollment is made. The time limit for 

filing may be extended if the enrollee or 

the removed shows that he or she was 

not notified of the time limit and was 

not otherwise aware of it, or that he or 

she was prevented by circumstances 

beyond his or her control from making 

the request within the time limit. The 

request for reconsideration must be 

made in writing and must include the 

enrollee’s name, address, Social 

Security Number or other personal 

identification number, individual’s 

name, the name of the enrollee’s carrier, 

reason(s) for the request, and, if 

applicable, the enrollee’s retirement 

claim number. 

(5) The employing office must issue a 

written notice of its final decision to the 

enrollee, and notify the carrier of the 

decision, within 30 days of receipt of 

the request for reconsideration. The 

notice must fully set forth the findings 

and conclusions on which the decision 

was based. 

(6) If an enrollee or the removed 

individual provides acceptable proof of 

eligibility of an individual subsequent 

to removal, coverage under the 

enrollment shall be reinstated 

retroactively so that there is no gap in 

coverage, as appropriate. 

(f) Employing office and OPM removal 

from enrollment: Ineligible individuals. 

(1) An enrollee’s employing office or 

OPM may request verification of 

eligibility from the enrollee at any time 

of an individual who is covered as a 

family member of the enrollee in 

accordance with § 890.302. To verify 

eligibility, the employing office or OPM 

shall send the enrollee a request for 

appropriate documentation of the 

individual’s relationship to the enrollee. 

The request shall contain a written 

notice that the individual will no longer 

be covered 60 calendar days after the 

date of the notice unless the enrollee 

provides appropriate documentation as 

requested. If the employing office or 

OPM, as applicable, does not receive the 

requested documentation within the 

specified time frame or if based on the 

documentation provided the individual 

is found not to be eligible, the 

employing office or OPM, as applicable, 

shall direct the carrier to remove the 

individual from the enrollment and the 

employing office or OPM, as applicable, 

shall provide written notice of the 

removal to the enrollee, with a copy to 

the carrier, including an explanation of 

the process for seeking reconsideration. 

The time limit to provide appropriate 

documentation may be extended if the 

enrollee or the removed individual 

shows to the employing office or OPM, 

as appropriate, that he or she was 


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3062 Federal Register / Vol. 83, No. 15 / Tuesday, January 23, 2018 / Rules and Regulations 

prevented by circumstances beyond his 

or her control from providing timely 

documentation. 

(2) Appropriate documentation 

includes, but is not limited to, copies of 

birth certificates, marriage certificates, 

and, if applicable, other proof including 

that the individual lives with the 

enrollee and that the enrollee is the 

individual’s primary source of financial 

support. 

(3) The effective date of the removal 

shall be prospective unless the record 

shows that the enrollee or the removed 

individual has committed fraud or made 

an intentional misrepresentation of 

material fact as prohibited by the terms 

of the plan. If fraud or intentional 

misrepresentation of material fact is 

found, the effective date of the removal 

is the date of loss of eligibility. 

(4) The enrollee or the removed 

individual may request reconsideration 

of an employing office or OPM’s 

decision to remove the individual from 

the enrollment within 60 days of an 

employing office or OPM’s initial 

decision. The enrollee or the removed 

individual may request reconsideration 

of an employing office decision to the 

employing office or an OPM decision to 

OPM. The employing office or OPM, as 

applicable, must notify the carrier when 

a request for reconsideration of the 

decision to remove the individual from 

the enrollment is made. The time limit 

for filing may be extended if the 

enrollee or the removed individual 

shows that he or she was not notified of 

the time limit and was not otherwise 

aware of it, or that he or she was 

prevented by circumstances beyond his 

or her control from making the request 

within the time limit. The request for 

reconsideration must be made in writing 

and must include the enrollee’s name, 

address, Social Security Number or 

other personal identification number, 

the individual’s name, the name of the 

enrollee’s carrier, reason(s) for the 

request, and, if applicable, the enrollee’s 

retirement claim number. 

(5) The employing office or OPM, as 

applicable, must issue a written notice 

of its final decision to the enrollee, and 

notify the carrier of the decision within 

30 days of receipt of the request for 

reconsideration. The notice must fully 

set forth the findings and conclusions 

on which the decision was based. 

(6) If an enrollee or the removed 

individual provides acceptable proof of 

eligibility of an individual subsequent 

to removal, coverage under the 

enrollment shall be reinstated 

retroactively so that there is no gap in 

coverage, as appropriate. 

(g) Temporary extension of coverage, 

conversion and/or temporary 

continuation of coverage. If an 

individual is removed from an 

enrollment pursuant to paragraph (e) or 

(f) of this section, the individual may be 

eligible for a 31-day temporary 

extension of coverage, conversion and/ 

or temporary continuation of coverage 

in accordance with § 890.401 and 

subparts H and K of this part. Any 

opportunity to enroll under § 890.401 

and subparts H and K shall not extend 

beyond the date that opportunity would 

have ended if the individual had been 

removed on the date of loss of 

eligibility. 

(1) Example. An enrollee and his 

spouse divorce on May 4, 2017. The 

enrollee does not remove the former 

spouse from the enrollee’s self and 

family enrollment, so the former spouse 

is receiving coverage but is not eligible. 

In this example, the former spouse is 

not eligible to receive an annuity listed 

in § 890.805(2). If the employing office 

later discovers the divorce, and removes 

the spouse from the enrollment on June 

20, 2018, the former spouse is not 

eligible for a 31-day extension of 

coverage, conversion and/or temporary 

continuation of coverage because the 

regulatory window for election of 60 

days outlined in § 890.805(1) has 

passed. The sixty-day window began on 

the final date of the divorce, May 4, 

2017 and ended on July 3, 2017. 

(2) [Reserved] 

(h) Removal from enrollment: Eligible 

family members. (1) An eligible family 

member may be removed from a self 

plus one or a self and family enrollment 

if a request is submitted to the enrollee’s 

employing office for approval at any 

time during the plan year in the 

following circumstances: 

(i) In the case of a spouse, if the 

enrollee and his or her spouse provide 

a notarized request for removal. 

(ii) In the case of a child who has 

reached the age of majority in the 

child’s state of residence (the enrollee’s 

state of residence if the child’s is not 

known), if the enrollee provides proof 

that the child is no longer his or her 

dependent as described under 

§ 890.302(b). The enrollee shall also 

provide the last known contact 

information for the child. 

(iii) In the case of a child who has 

reached the age of majority in the 

child’s state of residence, if the child 

provides a notarized request for removal 

to the employing office. 

(2) For removals under paragraph 

(h)(1) of this section the effective date is 

the first day of the third pay period 

following the date the request is 

approved by the employing office for 

employees who pay bi-weekly and the 

second pay period following the date 

that the request is approved by the 

employing office for enrollees who pay 

premiums monthly. 

(3) The family member’s removal 

under this paragraph (h) is considered a 

cancellation under § 890.304(d) and 

removed family members are not 

eligible for temporary extension of 

coverage and conversion under 

§ 890.401 or temporary continuation of 

coverage under § 809.1103. 

(4) If an eligible family member is 

removed under this paragraph (h), he or 

she may only regain coverage under the 

applicable self plus one or self and 

family enrollment if requested by the 

enrollee during the annual open season 

or within 60 days of the family member 

losing other health insurance coverage. 

The enrollee must also provide written 

consent to reinstatement of coverage 

from the family member and 

demonstrate eligibility of the spouse or 

child as a family member to the 

employing office. 

(5) If an employing office approves a 

request for removal, the employing 

office must notify the enrollee and the 

carrier of the removal immediately. For 

removals under paragraph (h)(1)(ii) of 

this section, the employing office must 

also immediately notify the child of the 

removal using the last known contact 

provided by the enrollee. 

[FR Doc. 2018–01174 Filed 1–22–18; 8:45 am] 

BILLING CODE 6325–63–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2018–0035; Special 

Conditions No. 25–714–SC] 

Special Conditions: Preferred 

Improvements, LLC, Boeing Model 

DC3C Airplanes; Rechargeable Lithium 

Batteries 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions; request 

for comments. 

SUMMARY: These special conditions are 

issued for Boeing Model DC3C airplanes 

as modified by Preferred Improvements, 

LLC. These airplanes will have a novel 

or unusual design feature when 

compared to the state of technology 

envisioned in the airworthiness 

standards for transport category 

airplanes. This design feature is 

rechargeable lithium ion backup battery 

packs installed on the airplanes. The 

applicable airworthiness regulations do 

not contain adequate or appropriate 


sradovich on DSK3GMQ082PROD with RULES