33870 Federal Register / Vol. 61, No. 127 / Monday, July 1, 1996 / Rules and Regulations

audited financial statements, its gross

revenues may be certified by its chief

financial officer or its equivalent.

(g) Total Assets. Total assets shall

mean the book value (except where

generally accepted accounting

principles (GAAP) require market

valuation) of all property owned by an

entity, whether real or personal, tangible

or intangible, as evidenced by the most

recent audited financial statements or

certified by the applicant’s chief

financial officer or its equivalent if the

applicant does not otherwise use

audited financial statements.

* * * * *

(j) * * *

(2) For purposes of assessing

compliance with the equity limits in

§ 24.709 (b)(3)(i) and (b)(4)(i), where

such interests are not held directly in

the applicant, the total equity held by a

person or entity shall be determined by

successive multiplication of the

ownership percentages for each link in

the vertical ownership chain.

* * * * *

(l) * * *

(11) * * *

(i) For purposes of §§ 24.709(a)(2) and

paragraphs (b)(2) and (d) of this section,

Indian tribes or Alaska Regional or

Village Corporations organized pursuant

to the Alaska Native Claims Settlement

Act (43 U.S.C. 1601 et seq.), or entities

owned and controlled by such tribes or

corporations, are not considered

affiliates of an applicant (or licensee)

that is owned and controlled by such

tribes, corporations or entities, and that

otherwise complies with the

requirements of § 24.709 (b)(3) and

(b)(5) or § 24.709 (b)(4) and (b)(6),

except that gross revenues derived from

gaming activities conducted by affiliated

entities pursuant to the Indian Gaming

Regulatory Act (25 U.S.C. 2701 et seq.)

will be counted in determining such

applicant’s (or licensee’s) compliance

with the financial requirements of

§ 24.709(a) and paragraphs (b) and (d) of

this section, unless such applicant

establishes that it will not receive a

substantial unfair competitive advantage

because significant legal constraints

restrict the applicant’s ability to access

such gross revenues.

* * * * *

(n) * * *

(1) A qualifying investor is a person

who is (or holds an interest in) a

member of the applicant’s (or licensee’s)

control group and whose gross revenues

and total assets, when aggregated with

those of all other attributable investors

and affiliates, do not exceed the gross

revenues and total assets limits

specified in § 24.709(a), or, in the case

of an applicant (or licensee) that is a

small business, do not exceed the gross

revenues limit specified in paragraph (b)

of this section.

* * * * *

(3) For purposes of assessing

compliance with the minimum equity

requirements of § 24.709(b) (5) and (6),

where such equity interests are not held

directly in the applicant, interests held

by qualifying investors or qualifying

minority and/or woman investors shall

be determined by successive

multiplication of the ownership

percentages for each link in the vertical

ownership chain.

(4) For purposes of § 24.709

(b)(5)(i)(C) and (b)(6)(i)(C), a qualifying

investor is a person who is (or holds an

interest in) a member of the applicant’s

(or licensee’s) control group and whose

gross revenues and total assets do not

exceed the gross revenues and total

assets limits specified in § 24.709(a).

* * * * *

13. Section 24.813 is amended by

revising paragraphs (a)(1), (a)(2) and

(a)(4) to read as follows:

§ 24.813 General application requirements.

(a) * * *

(1) A list of any business, holding or

applying for CMRS or PMRS licenses,

five percent or more of whose stock,

warrants, options or debt securities are

owned by the applicant or an officer,

director, attributable stockholder or key

management personnel of the applicant.

This list must include a description of

each such business’ principal business

and a description of each such business’

relationship to the applicant.

(2) A list of any party which holds a

five percent or more interest (or a ten

percent or more interest for institutional

investors as defined in § 24.720(h)) in

the applicant, or any entity holding or

applying for CMRS or PMRS licenses in

which a five percent or more interest (or

a ten percent or more interest for

institutional investors as defined in

§ 24.720(h)) is held by another party

which holds a five percent or more

interest (or a ten percent or more

interest for institutional investors as

defined in § 24.720(h)) in the applicant

(e.g. If Company A owns 5% of

Company B (the applicant) and 5% of

Company C, a company holding or

applying for CMRS or PMRS licenses,

then Companies A and C must be listed

on Company B’s applications.)

* * * * *

(4) In the case of partnerships, the

name and address of each partner, each

partner’s citizenship and the share or

interest participation in the partnership.

This information must be provided for

all partners, regardless of their

respective ownership interest in the

partnership.

* * * * *

14. Section 24.839 is amended by

revising paragraphs (a), (d)(1), and (d)(2)

and adding paragraphs (d)(3), (d)(4), and

(d)(5) to read as follows:

§ 24.839 Transfer of control or assignment

of license.

(a) Approval required. Authorization

shall be transferred or assigned to

another party, voluntarily (for example,

by contract) or involuntarily (for

example, by death, bankruptcy or legal

disability), directly or indirectly or by

transfer of control of any corporation

holding such authorization, only upon

application and approval by the

Commission. A transfer of control or

assignment of station authorization in

the broadband Personal

Communications Service is also subject

to §§ 24.711(e), 24.712(d), 24.713(b),

24.717(c) (unjust enrichment) and

1.2111(a) (reporting requirement).

* * * * *

(d) * * *

(1) The application for assignment or

transfer of control is filed after five years

from the date of the initial license grant;

or

(2) The proposed assignee or

transferee meets the eligibility criteria

set forth in § 24.709 at the time the

application for assignment or transfer of

control is filed, or the proposed assignee

or transferee holds other license(s) for

frequency blocks C and F and, at the

time of receipt of such license(s), met

the eligibility criteria set forth in

§ 24.709;

(3) The application is for partial

assignment of a partitioned service area

to a rural telephone company pursuant

to § 24.714 and the proposed assignee

meets the eligibility criteria set forth in

§ 24.709;

(4) The application is for an

involuntary assignment or transfer of

control to a bankruptcy trustee

appointed under involuntary

bankruptcy, an independent receiver

appointed by a court of competent

jurisdiction in a foreclosure action, or,

in the event of death or disability, to a

person or entity legally qualified to

succeed the deceased or disabled person

under the laws of the place having

jurisdiction over the estate involved;

provided that, the applicant requests a

waiver pursuant to this paragraph; or

(5) The assignment or transfer of

control is pro forma.

* * * * *

[FR Doc. 96–16665 Filed 6–28–96; 8:45 am]

BILLING CODE 6712–01–P
Federal Register / Vol. 61, No. 127 / Monday, July 1, 1996 / Rules and Regulations 33871

DEPARTMENT OF TRANSPORTATION

Federal Railroad Administration

49 CFR Parts 233, 235 and 236

[FRA Docket No. RSSI–1 ; Notice No. 1]

RIN 2130—AB06; 2130—AB05

Signal and Train Control;

Miscellaneous Amendments

AGENCY: Federal Railroad

Administration (FRA), Department of

Transportation (DOT).

ACTION: Interim final rule.

SUMMARY: In accord with President

Clinton’s Regulatory Reinvention

Initiative, FRA is amending FRA’s

signal system reporting requirements to

reduce signal system reporting burdens

on the rail industry. FRA is also

amending its regulations governing

applications for approval of

discontinuance or material modification

of a signal system and is consolidating

certain pneumatic valve cleaning and

testing intervals to eliminate

overlapping and unnecessary test

schedules.

DATES: This interim final rule is

effective August 30, 1996. Written

comments concerning this rule must be

filed no later than July 31, 1996.

FOR FURTHER INFORMATION CONTACT:

William Goodman, Staff Director, Signal

and Train Control, Office of Safety,

FRA, 400 Seventh Street, S.W.,

Washington, D.C. 20590 (telephone

202–366–2231), or Mark Tessler, Office

of Chief Counsel, FRA, 400 Seventh

Street, S.W., Washington, D.C. 20590

(telephone 202–366–0628).

SUPPLEMENTARY INFORMATION:

Background

On September 30, 1993, President

Clinton issued Executive Order No.

12866, ‘‘Regulatory Planning and

Review’’. This Executive Order was

based on the recognition that

government must govern in a focused,

tailored, and sensible way. In order to

reaffirm and implement the principles

of Executive Order No. 12866, President

Clinton, in March of 1995, announced a

Regulatory Reinvention Initiative in

which federal agencies were directed to

conduct a review of agency regulations

with a view toward eliminating or

revising those outdated or otherwise in

need of reform. This proceeding is part

of that effort.

FRA has not provided prior notice

and request for public comment prior to

making the amendments contained in

this rule. FRA has concluded that such

notice and comment are impracticable,

unnecessary and contrary to the public

interest under 5 U.S.C 553 since FRA is

making only minor changes in reporting

requirements, administrative

procedures, and is clarifying

contradictory regulatory provisions.

However, FRA is soliciting comments

on this rule and will consider those

comments in determining whether there

is a need to take further action to

improve these regulations. For this

reason, FRA has issued this as an

interim final rule so that it can take

effect while any comments are being

considered. If comments persuade FRA

that amendments are necessary, it will

address them in a subsequent notice. As

noted above, comments must be

submitted no later than July 31, 1996.

Section-by-Section Analysis

49 CFR Part 233.9 ‘‘Signal System

Reporting Requirements’’

The Signal Systems Annual Report

has historically been used to monitor

changes in the types of signal systems

installed on the nation’ s railroads.

Based on its regulatory review, FRA has

concluded that the signal system

information base can be maintained

while at the same time the reporting

burden imposed on railroads can be

reduced. FRA has concluded that the

information provided by this report

does not need to be updated annually.

Using the information base already in

existence, FRA can monitor incremental

changes in railroad signal systems

through reports of agency field

personnel. Additionally, because

railroads must file an application with

FRA to discontinue or materially modify

a signal system under 49 CFR Part 235,

FRA will be well informed regarding

incremental changes in signal systems.

FRA is amending this section to provide

for filing of signal system reports every

five years rather than on an annual

basis, as is required presently. This

more realistic time frame will reduce

the reporting burden to the industry

while maintaining an adequate

information base. FRA is also revising

the information to be reported in order

to reflect technological changes in the

industry and in accord with information

needs of FRA. FRA will submit the

report form to the Office of Management

and Budget (OMB) for approval. The

new reporting requirements contained

in this section are not mandatory until

approval has been obtained from OMB.

Section 233.9 is thus being revised to

require that not later than April 1, 1997

and every 5 years thereafter, each carrier

shall file with FRA a Signal System

Five-year Report on a form to be

provided by FRA and in accordance

with instructions provided on the

report.

49 CFR Part 235.7 ‘‘Changes not

Requiring Filing of Application’’

Section 235.7 currently specifies

those modifications to signal systems

that can be made by a railroad without

the necessity of filing an application for

FRA approval. Those listed

modifications are of a type that increase

either the safety of a signal system or

which do not affect the existing level of

safety. FRA is adding a provision which

permits the installation, removal or

relocation of intermediate or automatic

signals in conjunction with the

elimination of signal system pole lines

when replaced with electronic track

circuits. Improving a signal system with

electronic track circuits provides a

railroad with the benefit of a signal

system not adversely affected by ice,

snow storms, and floods. Installation of

electronic track circuits and the

elimination of open pole lines often

results in the extension and equalization

of block limits and relieves the railroads

from maintaining and replacing many

poles and cross arms and eliminates

signal problems created by wire crosses

and grounds on the open wire signal

circuits. Section 235.7(c)(24) provides

that it is not necessary to file an

application for approval for the

installation, relocation, or removal of

signals, interlocked switches, derails,

movable-point frogs, or electric locks in

an existing system directly associated

with the installation of new track; the

elimination of existing track other than

a second main track; the extension or

shortening of a passing siding;

elimination of second main track in

certain stated circumstances or a line

relocation. FRA is adding to this list

conversion of pole line circuits to

electronic (coded) track circuits

provided that the railroad gives notice

and a profile plan of the change to the

FRA regional office having jurisdiction

over that territory at least 60 days in

advance of the change. In addition, the

railroad must provide at the same time

a copy of the notice and profile plan to

representatives of employees

responsible for maintenance, inspection

and testing of the signal system under

49 CFR Part 236. The signal system

modification will be deemed acceptable,

unless within 60 days, the Regional

Adminstrator stays action by written

notice to the railroad and refers the

issue to the Railroad Safety Board for

decision. The proposed change will

enable railroads to better manage the

timing and budgeting for signal system

upgrades while at the same time
33872 Federal Register / Vol. 61, No. 127 / Monday, July 1, 1996 / Rules and Regulations

maintaining protection and safety of

train movements.

49 CFR 236.590 ‘‘Pneumatic

Apparatus’’

This section presently requires that

automatic train stop (‘‘ATS’’), automatic

train control (‘‘ATC’’), or automatic cab

signal (‘‘ACS’’) pneumatic apparatus be

inspected and cleaned at least once

every 736 days. This section also

requires that the pneumatic apparatus

be stenciled, tagged or otherwise

marked to indicate the last cleaning

date. Locomotive safety standard

regulations at 49 CFR 229.29 require

that valves, valve portions, MU

locomotive brake cylinders and electric

pneumatic master controllers in the air

brake system be cleaned, repaired, and

tested at least once every 736 days. The

section also requires that the date and

place of the cleaning, repairing and

testing be recorded on a specified form.

A record of the parts of the air brake

system that are cleaned, repaired, and

tested are required to be kept in the

railroad’ s files or in the cab of the

locomotive.

FRA intends that the inspection and

cleaning time interval requirements for

pneumatic apparatus (ATS, ATC, and

ACS) be governed by the air brake

testing intervals established in 229.29.

In that way, railroads will not be faced

with conflicting testing schedules.

Maintenance schedules will be

simplified and locomotive down-time

will be reduced as a result. Although

both section 229.29 and 236.590 require

a 736-day test interval, due to existing

waivers, the testing and cleaning

intervals for air brake systems and

pneumatic systems on many

locomotives do not coincide. In 1985,

FRA granted a waiver of compliance

with § 229.29 (see 50 FR 3910, January

29, 1985) to allow locomotives equipped

with 26L airbrake equipment to operate

for periods not to exceed three years

before receiving the detailed inspections

required by § 229.29. Under the terms of

this waiver, which extended an earlier

test waiver (see 46 FR 33401, June 29,

1981), ‘‘train control pneumatic valves

(suppression and timing valves)’’ were

included within the waiver. Thus

railroads have been able to perform

periodic testing and maintenance of air

brake and train control pneumatic

valves on locomotive 26L brake

equipment at the same time. It has come

to our attention that many railroads

were not aware of the extent of the

waiver issued in 1985 and thus may not

have been taking advantage of the

scheduling advantages this waiver

provided. By conforming the

requirements of § 236.590 to those of

§ 229.29, any changes in inspection and

testing intervals or recordkeeping

requirements made to air brake systems

will automatically apply to pneumatic

train control valves on similar types of

locomotives. Since pneumatic train

control valves utilize the same air

supply system, a decision as to safe

testing intervals for one component

would apply to the other component as

well. In addition to the above changes,

FRA is providing ‘‘out of service’’ credit

that is applied to air brake systems

under § 229.33 to train control systems

under § 236.590. This will further

conform the two sets of testing and

maintenance requirements.

FRA is thus amending § 236.590 to

provide that automatic train stop, train

control, or cab signal pneumatic

apparatus shall be inspected, cleaned,

and the results of such inspection

recorded as provided by § 229.29(a).

When a locomotive with automatic train

stop, train control, or cab signal

pneumatic apparatus receives out-of-use

credit pursuant to § 229.33, the

automatic train stop, train control, or

cab signal apparatus shall be tested in

accordance with § 236.588 prior to the

locomotive being placed in service.

E.O. 12866 and DOT Regulatory

Policies and Procedures

These amendments have been

evaluated in accordance with existing

policies and procedures and because

they are primarily technically oriented

and generally reduce the regulatory

burden on railroads, FRA has concluded

that the revisions do not constitute

significant rule under either Executive

Order 12866 or DOT’s regulatory

policies and procedures.

Regulatory Flexibility Act

The Regulatory Flexibility Act of 1980

(5 U.S.C. 601 et seq.) requires a review

of rules to assess their impact on small

entities. FRA certifies that this rule will

not have a significant impact on a

substantial number of small entities.

There are no substantial economic

impacts for small units of government,

businesses, or other organizations.

Paperwork Reduction Act

These amendments reduce

information collection requirements and

therefore reduce reporting burdens

imposed on railroads.

Environmental Impact

FRA has evaluated these regulations

in accordance with its procedure for

ensuring full consideration of the

potential environmental impacts of FRA

actions, as required by the National

Environmental Policy Act and related

directives. FRA has determined that the

revision of Parts 233, 235 and 236 of

Title 49 of the CFR does not constitute

a major FRA action requiring an

environmental assessment.

Federalism Implications

This action has been analyzed in

accordance with the principles and

criteria contained in Executive Order

12612, ‘‘Federalism,’’ and it has been

determined that these amendments do

not have federalism implications to

warrant the preparation of a Federalism

Assessment.

List of Subjects

49 CFR Part 233

Railroad safety, Reporting and

recordkeeping requirements.

49 CFR Part 235

Railroad safety, Administrative

practice and procedure.

49 CFR Part 236

Railroad safety.

The Rule

In consideration of the foregoing, FRA

amends Parts 233, 235, and 236 of Title

49 of the Code of Federal Regulations as

set forth below:

PART 233—[AMENDED]

1. The authority citation for Part 233

continues to read as follows:

Authority: 49 App. U.S.C. 26, as amended;

49 App. U.S.C. 1655(e), as amended; 45

U.S.C. 431, 437, and 438, as amended; Pub.

L. 100–342; and 49 CFR 1.49 (f), (g), and (m).

2. Section 233.9 is revised to read as

follows:

§ 233.9 Reports.

Not later than April 1, 1997 and every

5 years thereafter, each carrier shall file

with FRA a signal system status report

‘‘Signal System Five-year Report’’ on a

form to be provided by FRA in

accordance with instructions and

definitions provided on the report.

PART 235—[AMENDED]

3. The authority citation for Part 235

continues to read as follows:

Authority: 49 App. U.S.C. 26, as amended;

49 App. U.S.C. 1655(e), as amended; 45

U.S.C. 431, 437, and 438, as amended; Pub.

L. 100–342; and 49 CFR 1.49 (f), (g), and (m).

4. Paragraph (c)(24) of § 235.7 is

amended by a adding at the end thereof

a new paragraph (c)(24) (vi) to read as

follows:

§ 235.7 Changes not requiring filing of

application.

* * * * *
Federal Register / Vol. 61, No. 127 / Monday, July 1, 1996 / Rules and Regulations 33873

(c) * * *

(24) * * *

(vi) The conversion of pole line

circuits to electronic (coded) track

circuits provided that the railroad gives

notice and a profile plan of the change

to the FRA regional office having

jurisdiction over that territory at least 60

days in advance of the change. The

railroad must also at the same time

provide a copy of the notice and profile

plan to representatives of employees

responsible for maintenance, inspection

and testing of the signal system under

49 CFR Part 236. The signal system

modification will be deemed acceptable,

unless within 60 days, the Regional

Adminstrator stays action by written

notice to the railroad and refers the

issue to the Railroad Safety Board for

decision.

PART 236—[AMENDED]

5. The authority citation for Part 236

continues to read as follows:

Authority: 49 App. U.S.C. 26, as amended;

49 App. U.S.C. 1655(e), as amended; 45

U.S.C. 431, 437, and 438, as amended; Pub.

L. 100–342; and 49 CFR 1.49 (f), (g), and (m).

6. Section 236.590 is revised to read

as follows:

§ 236.590 Pneumatic apparatus

Automatic train stop, train control, or

cab signal pneumatic apparatus shall be

inspected, cleaned, and the results of

such inspection recorded as provided by

§ 229.29(a). When a locomotive with

automatic train stop, train control, or

cab signal pneumatic apparatus receives

out-of-use credit pursuant to § 229.33,

the automatic train stop, train control,

or cab signal apparatus shall be tested

in accordance with § 236.588 prior to

the locomotive being placed in service.

Issued in Washington, D.C. on May 30,

1996.

Donald M. Itzkoff,

Deputy Administrator.

[FR Doc. 96–15298 Filed 6–28–96; 8:45 am]

BILLING CODE 4910–06–P