66752 Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Rules and Regulations 

Actions Compliance Procedures 

(4) Do not install: 

(i) Any P/N 532.10.12.077 (or FAA-approved equivalent part number) bolt that 

does not have a white primed and painted head in any MLG assembly (P/N 

532.10.12.049, P/N 532.10.12.050, or 

FAA-approved equivalent part number); 

and 

(ii) Any MLG assembly (P/N 

532.10.12.049, P/N 532.10.12.050 or 

FAA-approved equivalent part number) 

that does not have P/N 532.10.12.077F 

(or FAA-approved equivalent part number) bolts with white primed and painted 

heads. 

As of December 19, 2005 (the effective date 

of this AD).

Not Applicable. 

Note: The FAA recommends that you 

return any removed bolts to Pilatus. 

May I Request an Alternative Method of 

Compliance? 

(f) You may request a different method of 

compliance or a different compliance time 

for this AD by following the procedures in 14 

CFR 39.19. Unless FAA authorizes otherwise, 

send your request to your principal 

inspector. The principal inspector may add 

comments and will send your request to the 

Manager, Standards Office, Small Airplane 

Directorate, FAA. For information on any 

already approved alternative methods of 

compliance, contact Doug Rudolph, 

Aerospace Engineer, FAA, Small Airplane 

Directorate, 901 Locust, Room 301, Kansas 

City, Missouri 64106; telephone: (816) 329–

4059; facsimile: (816) 329–4090. 

Is There Other Information That Relates to 

This Subject? 

(g) Swiss AD Number HB–2005–288, dated 

June 29, 2005, also addresses the subject of 

this AD. 

Does This AD Incorporate Any Material by 

Reference? 

(h) You must do the actions required by 

this AD following the instructions in Pilatus 

PC12 Service Bulletin No. 32–018, dated May 

2, 2005. The Director of the Federal Register 

approved the incorporation by reference of 

this service bulletin in accordance with 5 

U.S.C. 552(a) and 1 CFR part 51. To get a 

copy of this service information, contact 

Pilatus Aircraft Ltd., Customer Liaison 

Manager, CH–6371 Stans, Switzerland; 

telephone: +41 41 619 6208; facsimile: +41 

41 619 7311; e-mail: SupportPC12@pilatusaircraft.com or from Pilatus Business Aircraft 

Ltd., Product Support Department, 11755 

Airport Way, Broomfield, Colorado 80021; 

telephone: (303) 465–9099; facsimile: (303) 

465–6040. To review copies of this service 

information, go to the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at NARA, go to: http:// 

www.archives.gov/federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html or call (202) 741–6030. To 

view the AD docket, go to the Docket 

Management Facility; U.S. Department of 

Transportation, 400 Seventh Street, SW., 

Nassif Building, Room PL–401, Washington, 

DC 20590–001 or on the Internet at http:// 

dms.dot.gov. The docket number is FAA–

2005–21835; Directorate Identifier 2005–CE–

35–AD. 

Issued in Kansas City, Missouri, on 

October 25, 2005. 

David R. Showers, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 05–21803 Filed 11–2–05; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF JUSTICE 

Bureau of Prisons 

28 CFR Part 523 

[BOP–1112–F] 

RIN 1120–AB12 

Good Conduct Time: Aliens With 

Confirmed Orders of Deportation, 

Exclusion, or Removal 

AGENCY: Bureau of Prisons, Justice. 

ACTION: Final rule. 

SUMMARY: In this document, the Bureau 

of Prisons (Bureau) amends its rules on 

Good Conduct Time (GCT). The purpose 

of this rule is to more effectively reduce 

the lengthy General Educational 

Development (GED) waiting lists and to 

reevaluate the ‘‘satisfactory progress in 

a literacy program’’ provision of the 

Violent Crime Control and Law 

Enforcement Act of 1994 (VCCLEA) 

and/or the Prison Litigation Reform Act 

of 1995 (PLRA) for aliens with 

confirmed orders of deportation, 

exclusion, or removal. This rule will 

increase the proportion of our literacy 

funds and resources that go to inmates 

who will remain in the U.S. after 

release. This rule will exempt inmate 

aliens with confirmed orders of 

deportation, exclusion, or removal from 

the ‘‘satisfactory progress in a literacy 

program’’ provision of the Violent Crime 

Control and Law Enforcement Act of 

1994 (VCCLEA) and/or the Prison 

Litigation Reform Act of 1995 (PLRA). 

The Bureau’s Literacy Program rules 

formerly comprised only GED 

attainment. This means that inmate 

aliens who have confirmed orders of 

deportation, exclusion, or removal, but 

do not have a high school diploma or 

GED, will not need to demonstrate 

satisfactory progress toward earning a 

GED credential to be considered for the 

full benefits of GCT. When considering 

GCT, we will allow 54 days GCT for 

each year served if the inmate is an 

alien with a confirmed order of 

deportation, exclusion, or removal from 

the Executive Office for Immigration 

Review (EOIR). 

In this document, we also reorganize 

the rule for clarity and accuracy. Other 

than the substantive change regarding 

sentenced deportable aliens, we make 

no further substantive changes. 

DATES: This rule is effective December 5, 

2005. 

FOR FURTHER INFORMATION CONTACT: 

Sarah Qureshi, Office of General 

Counsel, Bureau of Prisons, phone (202) 

307–2105. 

SUPPLEMENTARY INFORMATION: We 

published this change as a proposed 

rule on June 25, 2003 (68 FR 37776). 

What Is the Purpose of This Rule 

Change? 

The purpose of this rule is to more 

effectively reduce the lengthy General 

Educational Development (GED) waiting 

lists and to reevaluate the ‘‘satisfactory 

progress in a literacy program’’

provision of VCCLEA/PLRA for aliens 

with confirmed orders of deportation, 

exclusion, or removal. This rule will 

increase the proportion of our literacy 

funds and resources that go to inmates 

who will remain in the U.S. after 

release. 

VCCLEA/PLRA requires that inmates 

lacking a high school diploma or GED 

Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Rules and Regulations 66753 

must participate satisfactorily in the 

literacy program to receive full benefits 

of GCT. 

In November 1997, the Bureau’s 

education staff implemented the literacy 

provision of VCCLEA and PLRA (see 28 

CFR 544.70–544.75). Inmates sentenced 

under either of these two laws must 

enroll or re-enroll in a literacy program 

and make satisfactory progress towards 

earning a GED credential. If they do not 

do this, inmates may suffer negative 

consequences to their GCT credit. For 

PLRA inmates, this would mean not 

being eligible for the maximum, 54 

days, of GCT (see 28 CFR 523.20(a)(1)). 

For VCCLEA inmates, this would result 

in their GCT not vesting. 

Although we made extensive efforts to 

enroll as many inmates in literacy 

programs as possible, the waiting lists 

for enrollment in these programs grew 

from no appreciable waitlist in August 

1997 to 12,829 in January 2004. Aliens 

with confirmed deportation orders 

represent a small fraction of all 

VCCLEA/PLRA sentenced inmates 

without a verified GED. On January 7, 

2004, six percent of all VCCLEA/PLRA 

sentenced inmates without a verified 

GED were aliens with confirmed 

deportation orders (2,383 out of 41,892). 

18 U.S.C. 3624(b)(4) gives the Director 

authority to make exemptions to the 

GED requirements as he deems 

appropriate. Through our literacy 

program, we help inmates compete for 

available jobs and cope with postrelease community, family, and other 

responsibilities. Because we must 

concentrate resources on inmates who 

will be released into U.S. communities, 

we will not require inmates with 

confirmed orders of deportation, 

exclusion, or removal to participate in 

the literacy program. 

In this rule, we make an exemption to 

the GED requirements to provide relief 

to the growing demand for literacy 

programs by amending 28 CFR 523.20 to 

allow the full benefit of GCT provisions 

for aliens with confirmed orders of 

deportation, exclusion, or removal. 

These inmates may still participate in 

the literacy program, even though it will 

not affect their GCT. 

Comments 

We received eight comments. Six 

were identical form letters in support of 

the rule change. We respond to the 

remaining two comments below. 

One commenter recommended that 

the Director provide an exemption for 

any inmate currently subject to a 

detainer for later determination of 

deportability. The commenter states that 

this would allow inmates who know 

that they will be found deportable to 

request the exemption, thus freeing 

space in the GED program for inmates 

who will be released within the U.S. 

We considered this option and 

decided against creating an exemption 

for inmates subject to a detainer 

pending a hearing to determine 

deportability. If the Bureau of Prisons 

allows such an exception for inmates 

with detainers, but the Department of 

Homeland Security (DHS), Bureau of 

Immigration and Customs Enforcement 

(ICE) determines that the inmate cannot 

be removed to the country of origin, 

there are two possible consequences for 

that inmate: (1) The inmate may have to 

be on a GED waiting list for an 

indeterminate amount of time, possibly 

not getting into the program until close 

to the expiration of his/her sentence; 

and/or (2) Any good conduct time 

earned by the inmate under the 

exception would have to be forfeited to 

the extent that it exceeded the good 

conduct time that inmate would have 

earned had his/her immigration status 

been known earlier. 

In both situations, the inmate faces 

potentially negative consequences. We 

determined that it would more likely 

benefit alien inmates in this situation to 

accumulate good conduct time and 

move up in the waitlist or possibly even 

have the opportunity to benefit from the 

GED program, while his/her hearing is 

pending. 

Another commenter wanted to know 

how the rule would affect inmates who 

are of Cuban citizenship, whose removal 

from the U.S. cannot be executed, and 

who, therefore, will be released into the 

community. We intend this rule to 

operate as follows: Any inmate who is 

subject to an EOIR order of removal, 

deportation, or exclusion does not need 

to participate in the GED program to 

earn the full amount of good conduct 

time. Therefore, regardless of whether or 

not that order can actually be executed, 

the fact of the EOIR order triggers the 

effect of this rule. However, if DHS reevaluates the inmate’s situation and 

makes a formal determination that the 

inmate is no longer subject to an order 

of removal, deportation, or exclusion, 

that inmate will then be required to 

participate in the GED program or be 

placed on the waitlist to earn the full 

amount of good conduct time. 

For the aforementioned reasons, we 

finalize the proposed rule without 

change. 

Executive Order 12866 

This regulation has been drafted and 

reviewed in accordance with Executive 

Order 12866, ‘‘Regulatory Planning and 

Review’’, section 1(b), Principles of 

Regulation. The Director of the Bureau 

of Prisons has determined that this rule 

is not a ‘‘significant regulatory action’’

under Executive Order 12866, section 

3(f), and accordingly this rule has not 

been reviewed by the Office of 

Management and Budget. 

Executive Order 13132 

This regulation will not have 

substantial direct effects on the States, 

on the relationship between the 

National Government and the States, or 

on distribution of power and 

responsibilities among the various 

levels of government. Under Executive 

Order 13132, this rule does not have 

sufficient federalism implications for 

which we would prepare a federalism 

Assessment. 

Regulatory Flexibility Act 

The Director of the Bureau of Prisons, 

under the Regulatory Flexibility Act (5 

U.S.C. 605(b)), reviewed this regulation. 

By approving it, the Director certifies 

that it will not have a significant 

economic impact upon a substantial 

number of small entities because: This 

rule is about the correctional 

management of offenders committed to 

the custody of the Attorney General or 

the Director of the Bureau of Prisons, 

and its economic impact is limited to 

the Bureau’s appropriated funds. 

Unfunded Mandates Reform Act of 

1995 

This rule will not cause State, local 

and tribal governments, or the private 

sector, to spend $100,000,000 or more in 

any one year, and it will not 

significantly or uniquely affect small 

governments. We do not need to take 

action under the Unfunded Mandates 

Reform Act of 1995. 

Small Business Regulatory Enforcement 

Fairness Act of 1995 

This rule is not a major rule as 

defined by § 804 of the Small Business 

Regulatory Enforcement Fairness Act of 

1995. This rule will not result in an 

annual effect on the economy of 

$1000,000,000 or more; a major increase 

in costs or prices; or significant adverse 

effects on competition, employment, 

investment, productivity, innovation, or 

on the ability of United States-b ased 

companies to compete with foreignbased companies in domestic and 

export markets. 

List of Subjects in 28 CFR Part 523 

Prisoners. 

Harley G. Lappin, 

Director, Bureau of Prisons. 

■ Under the rulemaking authority 

vested in the Attorney General in 5 

66754 Federal Register / Vol. 70, No. 212 / Thursday, November 3, 2005 / Rules and Regulations 

1Language expanding the scope of the Bank 

Secrecy Act to intelligence or counter-intelligence 

activities, including analysis, to protect against 

international terrorism was added by section 358 of 

the Uniting and Strengthening America by 

Providing Appropriate Tools Required to Intercept 

and Obstruct Terrorism Act of 2001 (the USA 

PATRIOT Act), Public Law 107–56. 

2See 67 FR 60625 (Sept. 26, 2002). 

3See 31 CFR 103.170, as codified by interim final 

rule published at 67 FR 21110 (Apr. 29, 2002), as 

U.S.C. 552(a) and delegated to the 

Director, Bureau of Prisons, we amend 

28 CFR part 523 as follows. 

Subchapter B—Inmate Admission, 

Classification, and Transfer 

PART 523—COMPUTATION OF 

SENTENCE 

■ 1. The authority citation for 28 CFR 

part 523 is revised to read as follows: 

Authority: 5 U.S.C. 301; 18 U.S.C. 3568 

(repealed November 1, 1987 as to offenses 

committed on or after that date), 3621, 3622, 

3624, 4001, 4042, 4081, 4082 (Repealed in 

part as to conduct occurring on or after 

November 1, 1987), 4161–4166 (repealed 

October 12, 1984 as to offenses committed on 

or after November 1, 1987), 5006–5024 

(Repealed October 12, 1984 as to conduct 

occurring after that date), 5039; 28 U.S.C. 

509, 510. 

■ 2. Revise § 523.20 to read as follows: 

§ 523.20 Good conduct time. 

(a) For inmates serving a sentence for 

offenses committed on or after 

November 1, 1987, but before September 

13, 1994, the Bureau will award 54 days 

credit toward service of sentence (good 

conduct time credit) for each year 

served. This amount is prorated when 

the time served by the inmate for the 

sentence during the year is less than a 

full year. 

(b) For inmates serving a sentence for 

offenses committed on or after 

September 13, 1994, but before April 26, 

1996, all yearly awards of good conduct 

time will vest for inmates who have 

earned, or are making satisfactory 

progress (see § 544.73(b) of this chapter) 

toward earning a General Educational 

Development (GED) credential. 

(c) For inmates serving a sentence for 

an offense committed on or after April 

26, 1996, the Bureau will award 

(1) 54 days credit for each year served 

(prorated when the time served by the 

inmate for the sentence during the year 

is less than a full year) if the inmate has 

earned or is making satisfactory progress 

toward earning a GED credential or high 

school diploma; or 

(2) 42 days credit for each year served 

(prorated when the time served by the 

inmate for the sentence during the year 

is less than a full year) if the inmate has 

not earned or is not making satisfactory 

progress toward earning a GED 

credential or high school diploma. 

(d) Notwithstanding the requirements 

of paragraphs (b) and (c) of this section, 

an alien who is subject to a final order 

of removal, deportation, or exclusion is 

eligible for, but is not required to, 

participate in a literacy program, or to 

be making satisfactory progress toward 

earning a General Educational 

Development (GED) credential, to be 

eligible for a yearly award of good 

conduct time. 

(e) The amount of good conduct time 

awarded for the year is also subject to 

disciplinary disallowance (see tables 3 

through 6 in § 541.13 of this chapter). 

[FR Doc. 05–21969 Filed 11–2–05; 8:45 am] 

BILLING CODE 4410–05–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 103 

RIN 1506–AA70 

Financial Crimes Enforcement 

Network; Amendment to the Bank 

Secrecy Act Regulations—Anti-Money 

Laundering Programs for Insurance 

Companies 

AGENCY: Financial Crimes Enforcement 

Network, Treasury. 

ACTION: Final rule. 

SUMMARY: The Financial Crimes 

Enforcement Network is issuing this 

final rule to prescribe minimum 

standards applicable to insurance 

companies pursuant to the provision in 

the Bank Secrecy Act that requires 

financial institutions to establish antimoney laundering programs and to 

define the companies and insurance 

products that are subject to that 

requirement. 

DATES: Effective Date: December 5, 2005. 

Applicability Date: May 2, 2006. See 

31 CFR 103.137(b) of the final rule 

contained in this document. 

FOR FURTHER INFORMATION CONTACT: 

Financial Crimes Enforcement Network, 

Regulatory Policy and Programs 

Division on (202) 354–6400 (not a tollfree number). 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Statutory Provisions 

The Bank Secrecy Act, Public Law 

91–508, as amended, codified at 12 

U.S.C. 1829b, 12 U.S.C. 1951–1959, and 

31 U.S.C. 5311–14, 5316–5332, 

authorizes the Secretary of the Treasury 

to issue regulations requiring financial 

institutions to keep records and file 

reports that are determined to have a 

high degree of usefulness in criminal, 

tax, and regulatory matters, or in the 

conduct of intelligence or counterintelligence activities, including 

analysis, to protect against international 

terrorism, and to implement anti-money 

laundering programs and compliance 

procedures.1 Regulations implementing 

Title II of the Bank Secrecy Act appear 

at 31 CFR Part 103. The authority of the 

Secretary to administer the Bank 

Secrecy Act has been delegated to the 

Director of the Financial Crimes 

Enforcement Network. 

On October 26, 2001, the President 

signed into law the USA PATRIOT Act. 

Section 352 of the USA PATRIOT Act, 

which became effective on April 24, 

2002, amended 31 U.S.C. 5318(h) to 

require anti-money laundering programs 

for all financial institutions defined in 

31 U.S.C. 5312(a)(2). At a minimum, the 

anti-money laundering programs are 

required to include: 

(A) The development of internal policies, 

procedures, and controls; (B) the designation 

of a compliance officer; (C) an ongoing 

employee training program; and (D) an 

independent audit function to test programs. 

31 U.S.C. 5318(h)(1). 

Section 352(c) of the USA PATRIOT Act 

directs the Secretary to prescribe 

regulations for anti-money laundering 

programs that are ‘‘commensurate with 

the size, location, and activities’’ of the 

financial institutions to which such 

regulations apply. Section 5318(h)(2) 

permits the Secretary to exempt from 

this anti-money laundering program 

requirement those financial institutions 

not currently subject to the Financial 

Crimes Enforcement Network’s 

regulations implementing the Bank 

Secrecy Act. Section 5318(a)(6) further 

provides that the Secretary may exempt 

any financial institution from any Bank 

Secrecy Act requirement. Taken 

together, these provisions authorize the 

issuance of anti-money laundering 

program regulations that may differ with 

respect to certain kinds of financial 

institutions, and that may exempt 

certain financial institutions from the 

requirements of section 5318(h)(1). 

Although insurance companies have 

long been defined as financial 

institutions under the Bank Secrecy Act 

(see 31 U.S.C. 5312(a)(2)(M)), we, prior 

to the notice of proposed rulemaking 

preceding this final rule,2 had neither 

defined ‘‘insurance companies’’ for 

purposes of the Bank Secrecy Act nor 

issued regulations regarding insurance 

companies. In April 2002, we deferred 

the anti-money laundering program 

requirement contained in 31 U.S.C. 

5318(h) that would have applied to the 

insurance industry.3 The deferral