Federal Register / Vol. 66, No. 88 / Monday, May 7, 2001 / Rules and Regulations 22915

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 2000–NM–263–AD; Amendment

39–12213; AD 2001–09–08]

RIN 2120–AA64

Airworthiness Directives;

Construcciones Aeronauticas, S.A.

(CASA), Model CN–235 Series

Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to all CASA Model CN–235

series airplanes, that requires installing

a second electrical connector in the

electrical Master Central Unit. The

actions specified by this AD are

intended to prevent the loss of electrical

power, other than that provided by the

emergency system, in the event of

disconnection of the single electrical

connector within the electrical Master

Central Unit. This action is intended to

address the identified unsafe condition.

DATES: Effective June 11, 2001.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of June 11,

2001.

ADDRESSES: The service information

referenced in this AD may be obtained

from Construcciones Aeronauticas, S.A.,

Getafe, Madrid, Spain. This information

may be examined at the Federal

Aviation Administration (FAA),

Transport Airplane Directorate, Rules

Docket, 1601 Lind Avenue, SW.,

Renton, Washington; or at the Office of

the Federal Register, 800 North Capitol

Street, NW., suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Dan

Rodina, Aerospace Engineer, ANM–116,

International Branch, FAA, Transport

Airplane Directorate, 1601 Lind

Avenue, SW., Renton, Washington

98055–4056; telephone (425) 227–2125;

fax (425) 227–1149.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an airworthiness directive (AD)

that is applicable to all CASA Model

CN–235 series airplanes was published

in the Federal Register on January 22,

2001 (66 FR 6497). That action proposed

to require installing a second electrical

connector in the electrical Master

Central Unit.

Comments

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. No

comments were submitted in response

to the proposal or the FAA’s

determination of the cost to the public.

Conclusion

The FAA has determined that air

safety and the public interest require the

adoption of the rule as proposed.

Cost Impact

The FAA estimates that 1 airplane of

U.S. registry will be affected by this AD,

that it will take approximately 8 work

hours to accomplish the required

installation, and that the average labor

rate is $60 per work hour. Required

parts will cost approximately $877.

Based on these figures, the cost impact

of the AD on U.S. operators is estimated

to be $1,357.

The cost impact figure discussed

above is based on assumptions that no

operator has yet accomplished any of

the requirements of this AD action, and

that no operator would accomplish

those actions in the future if this AD

were not adopted. The cost impact

figures discussed in AD rulemaking

actions represent only the time

necessary to perform the specific actions

actually required by the AD. These

figures typically do not include

incidental costs, such as the time

required to gain access and close up,

planning time, or time necessitated by

other administrative actions.

Regulatory Impact

The regulations adopted herein will

not have a substantial direct effect on

the States, on the relationship between

the national Government and the States,

or on the distribution of power and

responsibilities among the various

levels of government. Therefore, it is

determined that this final rule does not

have federalism implications under

Executive Order 13132.

For the reasons discussed above, I

certify that this action (1) is not a

‘‘significant regulatory action’’ under

Executive Order 12866; (2) is not a

‘‘significant rule’’ under DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3)

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. A final evaluation has

been prepared for this action and it is

contained in the Rules Docket. A copy

of it may be obtained from the Rules

Docket at the location provided under

the caption ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Incorporation by reference,

Safety.

Adoption of the Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration amends part 39 of the

Federal Aviation Regulations (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. Section 39.13 is amended by

adding the following new airworthiness

directive:

2001–09–08 Construcciones Aeronauticas,

S.A. (CASA): Amendment 39–12213.

Docket 2000–NM–263–AD.

Applicability: All Model CN–235 series

airplanes, certificated in any category.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (b) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent the loss of electrical power,

other than that provided by the emergency

system, in the event of disconnection of the

single electrical connector within the

electrical Master Central Unit, accomplish

the following:

Installation

(a) Within 6 months after the effective date

of this AD: Install a second electrical

connector in the Master Central Unit, in

accordance with CASA Service Bulletin SB–

235–24–14, dated June 27, 2000.

Alternative Methods of Compliance

(b) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager,

International Branch, ANM–116. Operators

shall submit their requests through an

appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, International Branch,

ANM–116.

22916 Federal Register / Vol. 66, No. 88 / Monday, May 7, 2001 / Rules and Regulations

1Pub. L. 106–229, 114 Stat. 464 (2000).

2Electronic Signatures Act Section 101(a).

3Electronic Signatures Act Section 101(d)(1).

4 Id.

5Electronic Signatures Act Section 104(b).

6Electronic Signatures Act Section 107(b)(1).

7Electronic Signatures Act Section 107(b)(1)(B).

8Exchange Act Release No. 44014 (Feb. 28, 2001),

66 FR 13273 (March 5, 2001), <http://www.sec.gov/

news/digest.shtml>. 9Exchange Act Release No. 2304 (Nov. 13, 1939),

4 FR 4578 (Jan. 2, 1940).

10Exchange Act Release No. 38245 (Feb. 5, 1997),

62 FR 6469 (Feb. 12, 1997) (‘‘Adopting Release’’).

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the International Branch,

ANM–116.

Special Flight Permits

(c) Special flight permits may be issued in

accordance with §§ 21.197 and 21.199 of the

Federal Aviation Regulations (14 CFR 21.197

and 21.199) to operate the airplane to a

location where the requirements of this AD

can be accomplished.

Incorporation by Reference

(d) The actions shall be done in accordance

with CASA Service Bulletin SB–235–24–14,

dated June 27, 2000. This incorporation by

reference was approved by the Director of the

Federal Register in accordance with 5 U.S.C.

552(a) and 1 CFR part 51. Copies may be

obtained from Construcciones Aeronauticas,

S.A., Getafe, Madrid, Spain. Copies may be

inspected at the FAA, Transport Airplane

Directorate, 1601 Lind Avenue, SW., Renton,

Washington; or at the Office of the Federal

Register, 800 North Capitol Street, NW., suite

700, Washington, DC.

Note 3: The subject of this AD is addressed

in Spanish airworthiness directive 06/00,

dated June 27, 2000.

Effective Date

(e) This amendment becomes effective on

June 11, 2001.

Issued in Renton, Washington, on April 24,

2001.

Donald L. Riggin,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 01–10727 Filed 5–4–01; 8:45 am]

BILLING CODE 4910–13–U

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Part 241

[Release No. 34–44238]

Commission Guidance to BrokerDealers on the Use of Electronic

Storage Media Under the Electronic

Signatures in Global and National

Commerce Act of 2000 With Respect to

Rule 17a–4(f)

AGENCY: Securities and Exchange

Commission.

ACTION: Interpretation.

SUMMARY: The Commission is

publishing guidance on the operation of

its rule permitting electronic storage of

broker-dealer records in light of the

recently enacted Electronic Signatures

in Global and National Commerce Act of

2000. In particular, we are publishing

guidance on how the electronic storage

requirements of Rule 17a–4(f) under the

Securities Exchange Act of 1934 meet,

and are consistent with, the

requirements of the Electronic

Signatures in Global and National

Commerce Act.

EFFECTIVE DATE: The guidance is

effective on May 7, 2001.

FOR FURTHER INFORMATION CONTACT:

Michael A. Macchiaroli, Associate

Director, 202/942–0131; Thomas K.

McGowan, Assistant Director, 202/942–

4886; Randall W. Roy, Special Counsel,

202/942–0798, or Mathew Comstock,

Attorney, 202/942–0156, Division of

Market Regulation, Securities and

Exchange Commission, 450 Fifth Street,

N.W., Washington, D.C. 20549–1001.

SUPPLEMENTARY INFORMATION: The

Securities and Exchange Commission

(‘‘Commission’’) is publishing guidance

on how Rule 17a–4(f) (17 CFR 240.17a–

4(f)) under the Securities Exchange Act

of 1934 (‘‘Exchange Act’’) is consistent

with the Electronic Signatures in Global

and National Commerce Act of 2000.

I. Introduction

The Electronic Signatures in Global

and National Commerce Act of 2000

(the ‘‘Electronic Signatures Act’’) 1 seeks

to promote electronic commerce by

providing greater legal certainty to

transactions effected by electronic

means. To this end, the Electronic

Signatures Act provides that the legal

validity of a signature or contract cannot

be denied solely because it is in

electronic form.2 It also encourages

electronic record storage by providing

that any statute, regulation, or other rule

of law that requires the retention of

contracts or other records relating to

transactions in or affecting interstate or

foreign commerce may, with certain

exceptions, be complied with by storing

the documents electronically.3

However, the Electronic Signatures Act

requires that the electronically stored

documents must accurately reflect the

information in the contracts or

transactional records and be accessible

to all persons entitled to review them

under statute, regulation, or rule of law

in a form that is capable of being

accurately reproduced for later

reference.4 The Electronic Signatures

Act does not define how these

requirements are to be met. Instead, it

preserves the ability of regulatory

agencies to interpret them with respect

to statutes under which such agencies

have rulemaking authority.5

On March 1, 2001, the Electronic

Signatures Act became effective with

respect to any existing state or federal

regulatory requirement that a contract or

transactional record be retained.6 This

effective date is delayed, however, if an

agency has announced, proposed or

initiated, but not completed, a

rulemaking proceeding under the

authority preserved in the Electronic

Signatures Act.7 On February 28, 2001,

the Commission announced that it

would act shortly to provide

interpretive guidance and, where

appropriate, propose or adopt rules

consistent with the Electronic

Signatures Act, thereby delaying the

effective date with respect to

Commission recordkeeping rules to June

1, 2001.8

Since 1939, the Commission has

required broker-dealers, through rules

authorized under the Exchange Act, to

make and maintain certain records

deemed necessary to ensure compliance

with federal securities laws and

regulations.9 In 1997, after requests by

industry representatives, the

Commission amended its record

retention rule to allow broker-dealers to

store these records using any electronic

storage medium, subject to certain

requirements set forth in the rule.10

These requirements are safeguards

designed to ensure the accuracy,

accessibility, and accurate reproduction

of the electronically stored records. The

rule’s evolution from a strictly paper

requirement to its present electronic

storage provisions reflects the

Commission’s approach of promoting

the use of available technologies to the

benefit of broker-dealers and investors.

In anticipation of the June 1, 2001

effective date for the electronic storage

provisions of the Electronic Signatures

Act, we are publishing this release to

explain how the electronic storage

requirements of the broker-dealer record

retention rule meet, and are consistent

with, the requirements of the Electronic

Signatures Act.

II. Background

A. Broker-Dealer Books and Records

Rules

Section 17(a)(1) of the Exchange Act

authorizes the Commission to issue

rules requiring broker-dealers to make

and keep for prescribed periods, and

furnish copies thereof, such records as

necessary or appropriate in the public