Document ID: FAA-2020-0809-0002
Agency: faa
Document Type: Rule
Title: Prompt Settlement Policy for Legal Enforcement Actions Involving Medical Certificate Related Fraud, Intentional Falsification, Reproduction, or Alteration
Posted Date: 2022-01-25T05:00Z

[Federal Register Volume 87, Number 16 (Tuesday, January 25, 2022)]
[Rules and Regulations]
[Pages 3643-3645]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01308]

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 Rules and Regulations
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  Federal Register / Vol. 87, No. 16 / Tuesday, January 25, 2022 / 
Rules and Regulations  

[[Page 3643]]

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

[Docket No.: FAA-2020-0809]

14 CFR Parts 61, 63, 65, 67, and 107

Amended Prompt Settlement Policy for Legal Enforcement Actions 
Involving Medical Certificate-Related Fraud, Intentional Falsification, 
Reproduction, or Alteration

AGENCY: Federal Aviation Administration (FAA), Department of 
Transportation (DOT).

ACTION: Notification of enforcement policy.

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SUMMARY: The FAA is amending its policy for the prompt settlement of 
legal enforcement actions against individuals who the FAA has found 
violated regulations prohibiting any fraudulent or intentionally false 
statement on an application for a medical certificate or other document 
used to show compliance with any requirement for a medical certificate; 
reproduction of a medical certificate for fraudulent purposes; or 
alteration of a medical certificate. Revocation of all airman, ground 
instructor, and medical certificates is the appropriate sanction for 
such violations, and FAA regulations prohibit application for a new 
airman or ground instructor certificate for one year following the 
effective date of the order of revocation unless the order provides 
otherwise. The previous version of this policy allowed eligible 
individuals the opportunity to promptly receive an emergency order of 
revocation and, thereby, apply for a new airman or ground instructor 
certificate sooner than in the absence of that policy; however, that 
policy required a one-year wait period from the effective date of the 
order before an individual could apply for a new certificate. This 
amended policy will still ensure that eligible individuals promptly 
receive an emergency order of revocation, but the order will allow them 
the opportunity to apply for a new airman or ground instructor 
certificate after nine months from the effective date of the order.

DATES: This notification of enforcement policy is effective January 31, 
2022.

FOR FURTHER INFORMATION CONTACT: James Barry, Manager, Policy/Audit/
Evaluation, Enforcement Division, AGC-300, Federal Aviation 
Administration, 800 Independence Avenue SW, Washington, DC 20591; 
telephone (202) 267-8198; [email protected].

SUPPLEMENTARY INFORMATION:

Background

    On September 30, 2020, the FAA's prompt settlement policy (2020 
PSP) relating to violations of 14 CFR 67.403(a)(1) through (4) \1\ went 
into effect.\2\ Under the 2020 PSP, an individual subject to legal 
enforcement action based on a violation 14 CFR 67.403 had the 
opportunity to enter into a settlement agreement providing for the 
prompt issuance of an emergency order revoking the individual's airman, 
ground instructor, and medical certificates. The prompt issuance of the 
order afforded eligible individuals the opportunity to apply for a new 
airman certificate under 14 CFR parts 61, 63, and 65, or a new ground 
instructor certificate under 14 CFR part 61, sooner than in the absence 
of such a policy.\3\
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    \1\ Under 14 CFR 67.403(a)(1) through (4), a person is 
prohibited from making or causing to be made: (1) A fraudulent or 
intentionally false statement on any application for a medical 
certificate or on a request for any Authorization for Special 
Issuance of a Medical Certificate (Authorization) or Statement of 
Demonstrated Ability (SODA); (2) a fraudulent or intentionally false 
entry in any logbook, record, or report that is kept, made, or used 
to show compliance with any requirement for any medical certificate 
or for any Authorization or SODA; (3) a reproduction, for fraudulent 
purposes, of any medical certificate; or (4) an alteration of any 
medical certificate.
    \2\ Settlement Policy for Legal Enforcement Actions Involving 
Medical Certificate-Related Fraud, Intentional Falsification, 
Reproduction, or Alteration, 85 FR 60057 (Sept. 24, 2020).
    \3\ Individuals were eligible for the 2020 PSP when there was no 
question about their qualification to hold a part 61, 63, or 65 
certificate other than that presented by the 14 CFR 67.403(a)(1) 
through (4) violation and when they had no previous violations of 14 
CFR 67.403(a)(1) through (4).
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    The 2020 PSP noted that the revocation of all airman, ground 
instructor, and medical certificates is the appropriate sanction for 
violations of 14 CFR 67.403(a)(1) through (4).\4\ It also explained 
that the period between the discovery of an apparent violation of 14 
CFR 67.403(a)(1) through (4) and, if appropriate, the issuance of an 
order revoking airman, ground instructor, and medical certificates can 
be lengthy. In this regard, the 2020 PSP stated that the timing between 
the FAA's discovery of an apparent violation of 14 CFR 67.403(a)(1) 
through (4) and the issuance of an order of revocation is affected by 
the time required to complete a full investigation and multi-tiered 
case review. In addition, the 2020 PSP noted that 14 CFR parts 61, 63, 
and 65 prohibit individuals whose airman and ground instructor 
certificates have been revoked from applying for new airman and ground 
instructor certificates for one year following the effective date of an 
order of revocation unless the order provides otherwise.\5\ The 2020 
PSP provided that individuals would still be subject to the one-year 
post-revocation bar for applications for new airman or ground 
instructor certificates but would have the opportunity to apply for 
such certificates sooner than without the policy because much of the 
investigation and case review process would be abbreviated or 
eliminated.
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    \4\ Under 14 CFR 67.403(b)(1) and (2), a violation of 14 CFR 
67.403(a)(1) through (4) is a basis for suspending or revoking all 
airman, ground instructor, and medical certificates and ratings held 
by the violator and withdrawing all Authorizations or SODA's held by 
the violator. See also FAA Order 2150.3C, chap. 9, para. 8 
(certificate revocation is appropriate for a violation of 14 CFR 
67.403(a)(1) through (4) since such a violation demonstrates a lack 
of qualification to hold a certificate).
    \5\ See 14 CFR 61.13(d)(2), 63.11(d), and 65.11(d)(1) and (2). 
The one-year application restriction applicable to revoked 14 CFR 
parts 61, 63, and 65 certificates does not apply to certificates 
issued under 14 CFR part 67 or 107.
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    The amendment to the 2020 PSP announced in this document will 
afford eligible individuals who the FAA has found violated 14 CFR 
67.403(a)(1) through (4) the opportunity to promptly receive an 
emergency order revoking any airman, ground instructor, and medical 
certificate they hold and to apply for a new 14 CFR part 61, 63, or 65 
certificate after nine months from the effective date of the order.\6\ 
Not only

[[Page 3644]]

will this amendment reduce the one-year post-revocation bar related to 
the application for new 14 CFR part 61, 63, or 65 certificates to nine 
months, it will continue the 2020 PSP's features of promptness in 
issuing emergency orders and predictability associated with settlement 
agreements.
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    \6\ If a certificate revoked by the order was issued under: (1) 
14 CFR part 61, the waiting period will apply to all certificates 
issued under 14 CFR part 61; (2) 14 CFR part 63, the waiting period 
will apply to the kind of part 63 certificate revoked; (3) 14 CFR 
part 65, and that certificate was a mechanic or repairman 
certificate, the waiting period will apply to both kinds 
certificates; or (4) 14 CFR part 65, and that certificate was an air 
traffic control tower operator, aircraft dispatcher, or parachute 
rigger certificate, the waiting period will apply to the same kind 
of certificate revoked.
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    Like the 2020 PSP, this amended policy will also apply when any 
controlled substance conviction or motor vehicle action that is the 
basis for a violation of 14 CFR 61.15(a), (d), or (e) also forms the 
basis for an intentional falsification violation under 14 CFR 
67.403(a)(1).\7\ For example, the policy will apply to (1) violations 
of 14 CFR 67.403(a)(1) and 14 CFR 61.15(e) when the violations were 
related to the same driving under the influence conviction; (2) 
violations of 14 CFR 67.403(a)(1) and 14 CFR 61.15(a) when the 
violations were related to the same controlled substance conviction; 
and (3) violations of 14 CFR 67.403(a)(1) and 14 CFR 61.15(d) and (e) 
when the violations were related to the same motor vehicle action or 
actions.
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    \7\ Under 14 CFR 61.15(a), a conviction for the violation of any 
Federal or State statute relating to the growing, processing, 
manufacture, sale, disposition, possession, transportation, or 
importation of narcotic drugs, marijuana, or depressant or stimulant 
drugs or substances is grounds for suspension or revocation of any 
certificate, rating, or authorization issued under 14 CFR part 61. 
Under 14 CFR 61.15(d), except for a motor vehicle action that 
results from the same incident or arises out of the same factual 
circumstances, a motor vehicle action occurring within three years 
of a previous motor vehicle action is grounds for suspension or 
revocation of any certificate, rating, or authorization issued under 
14 CFR part 61. Under 14 CFR 61.15(e), each person holding a 
certificate issued under this part shall provide a written report of 
each motor vehicle action to the FAA not later than 60 days after 
the motor vehicle action.
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Statement of Policy

    Under this amended prompt settlement policy, the FAA will send an 
eligible individual who is the subject of an investigation for an 
apparent violation of 14 CFR 67.403(a)(1) through (4) a letter of 
investigation (LOI) that will offer the individual the opportunity to 
enter into a settlement agreement. The settlement agreement will 
provide for the prompt issuance of an emergency order (1) revoking all 
airman, ground instructor, and medical certificates the individual 
holds; (2) requiring the immediate surrender of the affected 
certificates; and (3) allowing application for a new airman or ground 
instructor after nine months from the effective date of the order. The 
settlement agreement will require the individual to waive any right to 
appeal from the order. Both certificate holders who are reasonably able 
to exercise the privileges of any airman or ground instructor 
certificate they hold or certificate holders who are not reasonably 
able to exercise such privileges may enter into a settlement agreement 
under this amended policy.\8\
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    \8\ The FAA generally takes emergency certificate action when 
(i) the certificate holder lacks qualifications, there is a 
reasonable basis to question whether the certificate holder is 
qualified to hold the certificate, or the certificate holder does 
not comply with statutory or regulatory requirements to cooperate 
with the FAA; and (ii) the certificate holder is reasonably able to 
exercise the privileges of the certificate. See Order 2150.3C, chap. 
7, para. 4.a.(2). The FAA generally issues notices proposing 
certificate action (rather than emergency certificate actions) when 
only the first criterion is met, e.g., the certificate holder lacks 
qualifications. For example, the FAA generally issues a notice 
proposing certificate action involving the revocation of a pilot 
certificate when the certificate holder only holds a pilot 
certificate and is required to but does not hold a valid medical 
certificate. For the limited purposes of this amended policy, 
individuals who are not reasonably able to exercise the privileges 
of any airman certificate they hold may enter into a settlement 
agreement for the issuance of an emergency order of revocation as 
described herein.
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    This amended policy will apply when any controlled substance 
conviction or motor vehicle action that was the basis for a violation 
of 14 CFR 61.15(a), (d), or (e) also forms the basis for an intentional 
falsification violation under 14 CFR 67.403(a)(1). Under this amended 
policy, the FAA will include in the LOI notification to individuals 
that they may contact the applicable program office within ten days of 
receipt of the LOI to request consideration under the prompt settlement 
policy.
    Following an individual's request to be considered under this 
amended policy, the FAA will determine the individual's eligibility for 
the policy. Individuals will be eligible for the policy if there is no 
basis other than that presented by the 14 CFR 67.403(a)(1) through (4) 
(or 14 CFR 61.15, if applicable) violations to question their 
qualification to hold a part 61, 63, or 65 certificate and the FAA has 
found they have not previously violated 14 CFR 67.403(a)(1) through 
(4).
    If the FAA deems an individual is eligible for this amended policy, 
the Chief Counsel, or Chief Counsel's designee, will provide the 
individual, or his or her legal representative, a formal agreement that 
sets forth the conditions for prompt settlement. The terms of this 
settlement agreement will normally include the following provisions.
    (1) The parties must execute the settlement agreement within ten 
days after the FAA sends the agreement to the individual.
    (2) The FAA will issue an emergency order revoking all airman, 
ground instructor, and unexpired medical certificates the individual 
holds immediately upon receiving the fully executed settlement 
agreement.
    (3) The emergency order of revocation will (i) require the 
immediate surrender of all airman, ground instructor, and unexpired 
medical certificates the individual holds to agency counsel; (ii) 
notify the individual that the failure to immediately surrender these 
certificates could subject the individual to further legal enforcement 
action, including a civil penalty; and (iii) inform the individual that 
the FAA will not accept an application for a new airman certificate 
under 14 CFR part 61, 63, or 65, or ground instructor certificate under 
14 CFR part 61, for a period of nine months from the effective date of 
the order. See fn.6 for details regarding certificate application 
waiting periods.
    (4) The individual will waive all appeal rights from the emergency 
order of revocation.
    (5) The individual acknowledges that this agreement only concerns 
this enforcement action brought by the FAA and does not affect any 
action that might be brought by State or other Federal agencies 
(whether civil or criminal), and that this agreement does not prevent 
the FAA from providing information about this matter to State or other 
Federal agencies.
    (6) The parties will agree to bear their own costs and attorney 
fees, if any, in connection with the matter.
    (7) The individual will agree to not initiate any litigation before 
any court, tribunal, or administrative entity concerning any costs, 
damages, or attorney fees, including applications under the Equal 
Access to Justice Act, incurred as a result of the above-referenced 
matter.
    (8) The individual will agree to waive any and all causes of action 
against the FAA and its current and/or former officials and employees 
relating to the above-referenced matter.
    This amended policy will allow eligible individuals to more quickly 
apply for new 14 CFR parts 61, 63, and 65 certificates following a 
violation of 14 CFR 67.403(a)(1) through (4). It also reduces 
uncertainty about the date of issuance of emergency orders of 
revocation related to such violations, eliminates the unpredictability 
of litigation, and promotes better resource allocation.

[[Page 3645]]

    Issued in Washington, DC, on January 19, 2022.
Cynthia A. Dominik,
Assistant Chief Counsel for Enforcement.
[FR Doc. 2022-01308 Filed 1-24-22; 8:45 am]
BILLING CODE 4910-13-P