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COURTHOUSE NEWS SERVICE

Federal Regulation Brief Dec. 3, 2008

MONEY, TRANSPORTATION Today’s Brief Includes (Nov. 19-25): Federal Deposit Insurance (FDIC) – No newly published regulations this week Federal Reserve (FRS) –Includes proposed regulations National Transportation Safety Board (NTSB) – No newly published regulations this week Transportation (DOT) –Includes proposed regulations Treasury (USDT) –Includes proposed regulations

FEDERAL RESERVE (FRS)

NEWLY PUBLISHED REGULATIONS

Regulation CC, availability of funds and collection of checks: Availability of Funds and Collection of Checks, Federal Register, November 21, 2008, Volume 73, Number 226, Rules and Regulations, Page 70590, 12 CFR Part 229, Regulation CC, Docket No. R-1339, Final rule, technical amendment. [TEXT] [PDF] (This final rule, technical amendment, is effective January 31, 2009.)

SUMMARY: The Board of Governors of the Federal Reserve System (Board) amends the routing number guide to next-day availability checks and local checks in Regulation CC to delete the reference to the Des Moines office of the Federal Reserve Bank of Chicago and to reassign the Federal Reserve routing symbols currently listed under that office to the head office of the Federal Reserve Bank of Chicago. These amendments reflect the restructuring of check-processing operations within the Federal Reserve System.

PROPOSED REGULATIONS

Regulatory agenda, semiannual regulatory agenda: Semiannual Regulatory Flexibility Agenda, November 24, 2008, Volume 73, Number 227, Unified Agenda, Page 71504, Part XIX, 12 CFR Ch. II, Semiannual regulatory agenda. [TEXT] [PDF] (Any comments about the form or content of the agenda may be submitted any time during the next 6 months.)

SUMMARY: The Board of Governors of the Federal Reserve System (Board) issues this agenda under the Regulatory Flexibility Act and the Board's Statement of Policy Regarding Expanded Rulemaking Procedures. The Board anticipates having under consideration regulatory matters as indicated in the linked document during the period November 1, 2008, through April 30, 2009. The next agenda will be published in Spring 2009.

REGULATION Z--TRUTH IN LENDING (DOCKET NO. R-1286) The Board is conducting a review of Regulation Z, which implements the Truth in Lending Act (TILA). In June 2007, the Board published a notice of proposed rulemaking (NPRM) to amend the regulation, and the regulation's official staff commentary, for rules affecting open- end (revolving) credit that is not home secured. The NPRM seeks comment, among other issues, on amendments that highlight fees and penalty rates in disclosures accompanying credit and charge card applications and solicitations, require a summary of terms when accounts are opened, and breakout costs for fees and interest on periodic statements. The proposal implements amendments to the TILA contained in federal bankruptcy reform legislation. Advance notice would be required when penalty rates are imposed, and the time of advance notice for changed terms would be extended. Two alternatives are proposed dealing with the “effective” annual percentage rate disclosed on periodic statements. In May 2008, the Board published a second NPRM, seeking comment on a limited number of additional revisions to the regulation and commentary. Among other issues, the new proposed amendments address creditors' responsibilities to establish reasonable instructions for receiving timely payments and when a due date falls on a weekend or holiday. Creditors' responsibilities when investigating a claim of unauthorized transactions or an allegation of a billing error also are addressed. Advertisements for deferred interest plans would be required to provide additional information about how interest could be imposed.

Timetable: Action Date FR Cite ______Board Requested Comment 06/14/07 72 FR 32948 Board Requested Further Comment 07/18/08 73 FR 28866 Board Expects Further Action By 12/00/08

549. REGULATION Z--TRUTH IN LENDING (DOCKET NO. R-1305) The Board amended Regulation Z, which implements the Truth in Lending Act and Home Ownership and Equity Protection Act. The goals of the amendments are to protect consumers in the mortgage market from unfair, abusive, or deceptive lending and servicing practices while preserving responsible lending and sustainable home ownership; ensure that advertisements for mortgage loans provide accurate and balanced information and do not contain misleading or deceptive representations and provide consumers transaction-specific disclosures early enough to use while shopping for a mortgage. The revisions apply four protections to a newly-defined category of higher-priced mortgage loans secured by a consumer's principal dwelling, including a prohibition of lending based on the collateral without regard to consumer's ability to repay their obligations from income, or from other sources besides the collateral. The revisions apply one new protection to mortgage loans secured by a consumer's principal dwelling regardless of loan price, including a prohibition on abusive servicing practices. The rule also requires that advertisements provide accurate and balanced information, in a clean and conspicuous manner, about rates, monthly payments, and other loan features; and bans several deceptive or misleading advertising practices, including representations that a rate or payment is “fixed” when it can change. Finally, the rule requires creditors to provide consumers with transaction-specific mortgage loan disclosures before they pay any fee except a reasonable fee for reviewing credit history.

Timetable: Action Date FR Cite ______Board Requested Comment 01/09/08 73 FR 1672 Board Adopted Final Rule 08/08/08 73 FR 46190

THIS PROPOSED REGULATION IS NOT FURTHER ANALYZED HERE. IF YOU NEED MORE INFORMATION, PLEASE SEE THE FULL TEXT IN THE LINKED DOCUMENT. ------

TRANSPORTATION (DOT)

Civil penalties: Civil Penalties, Federal Register, November 21, 2008, Volume 73, Number 226, Rules and Regulations, Page 70592, 14 CFR Part 383, Docket No. DOT- OST-2008-0333, RIN 2105-AD77, Final rule. [TEXT] [PDF] (This final rule is effective December 22, 2008.)

SUMMARY: The Department of Transportation (DOT or Department) raises the maximum civil penalties that can be assessed as a result of DOT aviation enforcement actions for violations of certain economic provisions of U.S.C. Title 49. This inflation adjustment is required by the Federal Civil Penalties Inflation Adjustment Act of 1990 and the Debt Collection Improvement Act of 1996.

THIS REGULATION IS NOT FURTHER ANALYZED HERE. IF YOU NEED MORE INFORMATION, PLEASE SEE THE FULL TEXT OF THE REGULATION IN THE LINKED DOCUMENT.

Domestic baggage liability: Domestic Baggage Liability, Federal Register, November 21, 2008, Volume 73, Number 226, Rules and Regulations, Page 70591, 14 CFR Part 254, RIN 2105-AD80, Docket DOT-OST-2008-0332, Final rule. [TEXT] [PDF] (This final rule is effective December 22, 2008.)

SUMMARY: The Department of Transportation (DOT or Department) raises the minimum limit on domestic baggage liability applicable to air carriers from $3,000 to $3,300 to reflect inflation since July 2006.

Procedures for transportation workplace drug and alcohol testing programs: Procedures for Transportation Workplace Drug and Alcohol Testing Programs, Federal Register, November 20, 2008, Volume 73, Number 225, Rules and Regulations, Page 70283, 49 CFR Part 40, Docket OST-2003-15245, RIN 2105-AD55, Final rule. [TEXT] [PDF] (This final rule is effective November 20, 2008.)

SUMMARY: On Nov. 12, the U.S. Court of Appeals for the D.C. Circuit issued a stay of a revised paragraph that went into effect Nov. 1, 2008. The Department of Transportation (DOT or Department) had issued a final rule June 25, 2008, amending, among other provisions, paragraph (b) of its section regarding urine specimen collections. The amendment required direct observation collections for all return-to-duty and follow-up tests. Because of the court order, the language of 49 CFR 40.67(b) is returned to the previous language, pending further order of the Court. ------

FEDERAL AVIATION ADMINISTRATION (FAA)

Airworthiness directives, Agusta S.p.A. Model A109A and A109A II helicopters: Airworthiness Directives; Agusta S.p.A. Model A109A and A109A II Helicopters, Federal Register, November 25, 2008, Volume 73, Number 228, Rules and Regulations, Page 71526, 14 CFR Part 39, Docket No. FAA-2008-0834, Directorate Identifier 2007-SW-78-AD, Amendment 39-15746, AD 2008-24-06, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 30, 2008. The incorporation by reference of certain publications is approved by the Director of the Federal Register as of December 30, 2008.)

PURPOSE: This airworthiness directive (AD) requires actions intended to correct the unsafe condition described in the summary, below, to prevent fatigue failure of a tail rotor blade (blade), loss of a tail rotor, and subsequent loss of control of the helicopter.

SUMMARY: The Federal Aviation Administration (FAA) supersedes an existing AD for Agusta S.p.A. (Agusta) Model A109A and A109A II helicopters. This AD results from a revised mandatory continuing airworthiness information (MCAI) issued by an aviation authority to identify and correct an unsafe condition on an aviation product. The aviation authority of Italy reports that the previous MCAI should not apply to newly redesigned and improved tail rotor blades. This AD requires the same inspections as the current AD but limits the applicability to only tail rotor blades with part numbers 109-0132-02-11, -15, and -121, with 400 or more hours time-in- service (TIS), installed, certificated in any category.

Airworthiness directives, BAE Systems (Operations) Limited Model BAe 146 and Avro 146 RJ airplanes: Airworthiness Directives; BAE Systems (Operations) Limited Model BAe 146 and Avro 146-RJ Airplanes, Federal Register, November 20, 2008, Volume 73, Number 225, Rules and Regulations, Page 70265, 14 CFR Part 39, Docket No. FAA-2008-0887, Directorate Identifier 2007-NM-336-AD, Amendment 39-15735, AD 2008-23-14, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 26, 2008. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of December 26, 2008.)

PURPOSE: This airworthiness directive (AD) requires actions intended to correct the unsafe condition described in the summary, below.

SUMMARY: The Federal Aviation Administration (FAA) adopts a new AD for BAE Systems (Operations) Limited Model BAe 146 and Avro 146-RJ airplanes. This AD results from mandatory continuing airworthiness information (MCAI) originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as: During inspection of undercarriage main beam sidestays, bolts attaching the undercarriage main beam sidestay to frame 29 were found with the heads of the bolts sheared off. Loose bolt assemblies were also found.

If sheared or loose bolts are not detected and replaced, a possible consequence is the collapse of the main landing gear. * * * * *

Airworthiness directives, Boeing Model 737-400, -500, -600, -700, -700C, -800, and -900 series airplanes: Airworthiness Directives; Boeing Model 737-400, -500, -600, -700, -700C, -800, and -900 Series Airplanes, Federal Register, November 25, 2008, Volume 73, Number 228, Rules and Regulations, Page 71541, 14 CFR Part 39, Docket No. FAA-2008-0152, Directorate Identifier 2007-NM-348-AD, Amendment 39-15745, AD 2008-24-05, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 30, 2008. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of December 30, 2008.)

PURPOSE: This airworthiness directive (AD) results from two reports on certain Boeing Model 737-400, -500, -600, -700, -700C, -800, and -900 series airplanes that the left and right windshield wipers stopped working in flight. This AD requires actions intended to prevent failure of the windshield wipers in wet weather, which could result in decreased visibility for the flightcrew.

SUMMARY: The Federal Aviation Administration (FAA) adopts a new AD for certain Boeing Model 737-400, -500, -600, -700, -700C, -800, and -900 series airplanes. This AD requires an inspection to determine the part and serial numbers of the windshield wiper motors for the pilot's and first officer's windshields, and doing applicable corrective actions.

Airworthiness directives, Boeing Model 757 airplanes: Airworthiness Directives; Boeing Model 757 Airplanes, Federal Register, November 25, 2008, Volume 73, Number 228, Rules and Regulations, Page 71534, 14 CFR Part 39, Docket No. FAA-2007-0289, Directorate Identifier 2007-NM-208-AD, Amendment 39-15740, AD 2008-23-19, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 30, 2008. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of December 30, 2008.) PURPOSE: This airworthiness directive (AD) results from a fuel system review of Boeing Model 757 airplanes conducted by the manufacturer. This AD requires actions intended to detect and correct improper wire bundle support installation and sleeving and to prevent improperly sealed fasteners in the main and center fuel tanks from becoming an ignition source, in the event of a fault current, which could result in a fuel tank explosion and consequent loss of the airplane.

SUMMARY: The Federal Aviation Administration (FAA) adopts a new AD for certain Boeing Model 757 airplanes. This AD requires sealing the fasteners on the front and rear spars inside the left and right main fuel tanks and on the rear spar and lower panel of the center fuel tank. This AD also requires inspections of the wire bundle support installations to verify if certain clamps are installed and if Teflon sleeving covers the wire bundles inside the left and right equipment cooling system bays, on the left and right rear spars, and on the left and right front spars; and corrective actions if necessary.

Airworthiness directives, Boeing Model 767 200, 300, and 400ER series airplanes: Airworthiness Directives; Boeing Model 767-200, -300, and -400ER Series Airplanes, Federal Register, November 20, 2008, Volume 73, Number 225, Rules and Regulations, Page 70267, 14 CFR Part 39, Docket No. FAA-2007-29045, Directorate Identifier 2007-NM-048-AD, Amendment 39-15736, AD 2008-23-15, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 26, 2008. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of December 26, 2008.)

PURPOSE: This airworthiness directive (AD) results from an in-flight entertainment (IFE) systems review in Boeing Model 767-200, -300, and -400ER series airplanes. This AD requires actions intended to ensure that the flightcrew is able to turn off electrical power to IFE systems and other non-essential electrical systems through a switch in the flight compartment. The flightcrew's inability to turn off power to IFE systems and other non-essential electrical systems during a non-normal or emergency situation could result in the inability to control smoke or fumes in the airplane flight deck or cabin.

SUMMARY: The FAA adopts a new airworthiness directive (AD) for certain Boeing Model 767-200, -300, and -400ER series airplanes. This AD requires installing new relay(s), circuit breakers as applicable, and wiring to allow the flightcrew to turn off electrical power to the IFE systems and certain circuit breakers through a utility bus switch, and doing other specified actions.

THIS REGULATION IS NOT FURTHER ANALYZED HERE. IF YOU NEED MORE INFORMATION, PLEASE SEE THE FULL TEXT OF THE REGULATION IN THE LINKED DOCUMENT. Airworthiness directives, Bombardier Model CL-600-2C10 (Regional Jet Series 700, 701 and 702), et al.: Airworthiness Directives; Bombardier Model CL- 600-2C10 (Regional Jet Series 700, 701 & 702), CL-600-2D15 (Regional Jet Series 705), and CL-600-2D24 (Regional Jet Series 900) Airplanes, Federal Register, November 25, 2008, Volume 73, Number 228, Rules and Regulations, Page 71532, 14 CFR Part 39, Docket No. FAA-2008-0911, Directorate Identifier 2008-NM-115-AD, Amendment 39-15739, AD 2008-23-18, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 30, 2008. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of December 30, 2008.)

SUMMARY: The Federal Aviation Administration (FAA) adopts a new AD for Bombardier Model CL-600-2C10 (Regional Jet Series 700, 701 & 702), CL-600-2D15 (Regional Jet Series 705), and CL-600-2D24 (Regional Jet Series 900) airplanes. This AD results from mandatory continuing airworthiness information (MCAI) originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as:

There have been several incidents of shorting and sparks due to de-icing fluid ingress into the cockpit of CL-600-2C10 and CL-600-2D24 aircraft. De-icing fluid can enter between the windshields and side windows, leading to possible damage to the electrical components and wires as it comes into contact with cockpit floodlight electrical connections.

De-icing fluid in contact with cockpit floodlight electrical connections can result in possible arcing and fire.

Airworthiness directives, Eclipse Aviation Corporation Model EA500 airplanes: Airworthiness Directives; Eclipse Aviation Corporation Model EA500 Airplanes, Federal Register, November 24, 2008, Volume 73, Number 227, Rules and Regulations, Page 70866, 14 CFR Part 39, Docket No. FAA-2008-1232, Directorate Identifier 2008-CE-070-AD, Amendment 39-15747, AD 2008-24-07, RIN 2120-AA64, Final rule, request for comments. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 4, 2008. The Federal Aviation Administration must receive any comments on this AD by January 23, 2009.)

PURPOSE: This airworthiness directive (AD) results from several incidents of engine surge in certain Eclipse Aviation Corporation (Eclipse) Model EA500 airplanes equipped with a Pratt and Whitney Canada, Corp. (PWC) PW610F-A engine. This AD requires actions intended to prevent hard carbon buildup on the static vane, which could result in engine surges. Engine surges may result in a necessary reduction in thrust and decreased power for the affected engine. In some cases, this could result in flight and landing under single-engine conditions.

SUMMARY: The Federal Aviation Administration (FAA) adopts a new AD for certain Eclipse Aviation Corporation (Eclipse) Model EA500 airplanes equipped with a Pratt and Whitney Canada, Corp. (PWC) PW610F-A engine. This AD requires you to incorporate operating limitations into Section 2, Limitations, of the airplane flight manual (AFM).

Airworthiness directives, Empresa Brasileira de Aeronautica S.A. (EMBRAER) Model ERJ 170 and ERJ 190 airplanes: Airworthiness Directives; Empresa Brasileira de Aeronautica S.A. (EMBRAER) Model ERJ 170 and ERJ 190 Airplanes, Federal Register, November 25, 2008, Volume 73, Number 228, Rules and Regulations, Page 71537, 14 CFR Part 39, Docket No. FAA-2008-0889, Directorate Identifier 2008-NM-092-AD, Amendment 39-15738, AD 2008-23-17, RIN 2120- AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 30, 2008. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of December 30, 2008.)

SUMMARY: The Federal Aviation Administration (FAA) adopts a new AD for Empresa Brasileira de Aeronautica S.A. (EMBRAER) Model ERJ 170 and ERJ 190 airplanes. This AD results from mandatory continuing airworthiness information (MCAI) originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as:

[E]scape slide system installation [was found with] * * * tie-down straps which are used for escape slide packing [having not been removed]. The non- removal of the tie-down straps does not allow the aircraft door to reach the fully open position and the consequent deployment of the escape slide system in a * * * emergency evacuation, affecting the occupying safety.

The unsafe condition is failure of an evacuation system, which could impede an emergency evacuation and increase the chance of injury to passengers and flightcrew during the evacuation.

Airworthiness directives, Eurocopter France Model AS355E, F, F1, F2, and N helicopters: Airworthiness Directives; Eurocopter France Model AS355E, F, F1, F2, and N Helicopters, Federal Register, November 25, 2008, Volume 73, Number 228, Rules and Regulations, Page 71530, 14 CFR Part 39, Docket No. FAA-2007-28691, Directorate Identifier 2006-SW-22-AD, Amendment 39-15744, AD 2008-24-04, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive is effective December 30, 2008. The incorporation by reference of certain publications listed in the regulations is approved by the Director of the Federal Register as of December 30, 2008.)

PURPOSE: This airworthiness directive (AD) results from additional cases of main gearbox (MGB) lubrication pump deterioration in Eurocopter France Model AS355E, F, F1, F2, and N helicopters and a further investigation that determined that all serial-numbered pumps might be affected and the development of an improved procedure that is more accurate for detecting oil pump wear earlier. This AD requires actions intended to implement improved procedures to detect a failing MGB oil pump, prevent failure of the MGB pump, seizure of the MGB, loss of drive to an engine and main rotor, and subsequent loss of control of the helicopter.

SUMMARY: The Federal Aviation Administration (FAA) supersedes an existing AD for Eurocopter France Model AS355E, F, F1, F2, and N helicopters. That AD currently requires certain checks of the magnetic chip detector plug (chip detector) and the MGB oil-sight glass, certain inspections of the lubrication pump (pump), and replacing the MGB and the pump with an airworthy MGB and pump, if necessary. Also, the AD requires that before a pump or MGB with any hours time-in-service (TIS) can be installed, it must meet the AD requirements. This AD adds all serial- numbered pumps to the applicability and requires using an improved procedure for detecting oil pump wear.

Airworthiness directives, Fokker Model F.28 Mark 0100 airplanes: Airworthiness Directives; Fokker Model F.28 Mark 0100 Airplanes, Federal Register, November 20, 2008, Volume 73, Number 225, Rules and Regulations, Page 70261, 14 CFR Part 39, Docket No. FAA-2008-0850, Directorate Identifier 2007-NM-342-AD, Amendment 39-15710, AD 2008-22-14, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 26, 2008. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of December 26, 2008.)

SUMMARY: The Federal Aviation Administration (FAA) supersedes an existing airworthiness directive (AD) for Fokker Model F.28 Mark 0100 airplanes. This AD results from mandatory continuing airworthiness information (MCAI) originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as:

* * * * * During recent inspections it was found that some * * * bolts, that connect the horizontal stabilizer control unit actuator with the dog-links, were broken. This condition, if not corrected, could lead to [the loss of the flight control input connection to the horizontal stabilizer and consequent] partial loss of control of the aircraft. * * * * *

Airworthiness directives, Gulfstream Aerospace LP Model Galaxy airplanes and Gulfstream 200 airplanes: Airworthiness Directives; Gulfstream Aerospace LP Model Galaxy Airplanes and Gulfstream 200 Airplanes, Federal Register, November 20, 2008, Volume 73, Number 225, Rules and Regulations, Page 70263, 14 CFR Part 39, Docket No. FAA-2008-0270, Directorate Identifier 2007-NM-255-AD, Amendment 39-15628, AD 2008-16-10, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 26, 2008. The Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD as of December 26, 2008.)

SUMMARY: The Federal Aviation Administration (FAA) adopts a new AD for Gulfstream Aerospace LP Model Galaxy airplanes and Gulfstream 200 airplanes. This AD results from mandatory continuing airworthiness information (MCAI) originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as:

The 3 supporting blocks [installed on hydraulic tubes] were made of Teflon, which is unsuitable material for this application. Excessive wear of the blocks was discovered on numerous aircraft, as well as several cases of chafing between the loosely supported tubes. In one case, hydraulic fluid was lost due to fatigue failure of an inadequately supported tube. Loss of hydraulic fluid causes subsequent multiple failures of hydraulically operated systems.

Multiple failures of hydraulically operated systems (for the flight air brake actuators, brake system, right thrust reverser, etc.) could result in reduced controllability of the airplane.

Airworthiness directives, Maule Aerospace Technology, Inc. M-4, M-5, M-6, and M-7 Series and Model M-8-235 airplanes: Airworthiness Directives; Maule Aerospace Technology, Inc. M-4, M-5, M-6, and M-7 Series and Model M-8-235 Airplanes, Federal Register, November 25, 2008, Volume 73, Number 228, Rules and Regulations, Page 71539, 14 CFR Part 39, Docket No. FAA-2008-0892, Directorate Identifier 2008-CE-049-AD, Amendment 39-15742, AD 2008-24-02, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 30, 2008. As of December 30, 2008, the Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD.)

PURPOSE: This airworthiness directive (AD) results from two reports of accidents in certain Maule Aerospace Technology, Inc. M-4, M-5, M-6, and M-7 series and Model M-8-235 airplanes where reversed elevator control rigging was a factor. This AD requires actions intended to reduce the likelihood of a mechanic rigging the elevator controls backwards, which could result in elevator movement in the opposite direction from control input. This condition could lead to loss of control.

SUMMARY: The Federal Aviation Administration (FAA) adopts a new AD for certain Maule Aerospace Technology, Inc. M-4, M-5, M-6, and M-7 series and Model M-8-235 airplanes. This AD requires you to paint the top of the rear elevator control horn, the elevator control cable end attached to the top of the rear control horn, the bottom of the forward elevator control horn, and the elevator control cable end attached to the bottom of the forward control horn. This AD also requires you to insert a supplement into your maintenance program (maintenance manual).

Airworthiness directives, Viking Air Limited DHC-6 series airplanes: Airworthiness Directives; Viking Air Limited DHC-6 Series Airplanes, Federal Register, November 25, 2008, Volume 73, Number 228, Rules and Regulations, Page 71528, 14 CFR Part 39, Docket No. FAA-2008-0891 Directorate Identifier 2008-CE-046-AD, Amendment 39-15741, AD 2008-24-01, RIN 2120-AA64, Final rule. [TEXT] [PDF] (This airworthiness directive (AD) is effective December 30, 2008. As of December 30, 2008, the Director of the Federal Register approved the incorporation by reference of certain publications listed in this AD.)

SUMMARY: The Federal Aviation Administration (FAA) adopts a AD for Viking Air Limited DHC-6 series airplanes. This AD results from mandatory continuing airworthiness information (MCAI) issued by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as:

Three instances have occurred in which the aircraft took off with pre-mod 6/1676 flight control gust locks still installed, sometimes with disastrous results.

Based on investigation, the FAA and National Transportation Safety Board (NTSB) believe that an attempted takeoff with the gust locks installed could be the cause of a recent accident in Hyannis, Massachusetts. THIS REGULATION IS NOT FURTHER ANALYZED HERE. IF YOU NEED MORE INFORMATION, PLEASE SEE THE FULL TEXT OF THE REGULATION IN THE LINKED DOCUMENT.

Amendment to Class E airspace, Windsor Locks, Bradley International Airport, CT: Amendment to Class E Airspace; Windsor Locks, Bradley International Airport, CT, Federal Register, November 20, 2008, Volume 73, Number 225, Rules and Regulations, Page 70270, 14 CFR Part 71, Docket No. FAA-2008-0817, Airspace Docket No. 08-ANE-101, Direct final rule, confirmation of effective date, correction. [TEXT] [PDF] (This direct final rule, confirmation of effective date, correction is effective 0901 UTC, November 20, 2008. The Director of the Federal Register approves this incorporation by reference action under Title 1, Code of Federal Regulations, Part 51, subject to the annual revision of Federal Aviation Administration Order 7400.9 and publication of conforming amendments.)

SUMMARY: The Federal Aviation Administration (FAA) confirms the effective date of a direct final rule published in the Federal Register (73 FR 56471) that revises the Class E Airspace at Windsor Locks, Bradley International Airport, CT (BDL) to provide for adequate controlled airspace for those aircraft using Instrument Approach Procedures previously defined using the CHUPP NDB. The CHUPP NDB has been decommissioned, and after evaluation of the extension to the Windsor Locks Class C airspace, the FAA determined that the Class E3 airspace should be retained and extended 1 mile to provide adequate controlled airspace for the Instrument Approach Procedures to BDL. In addition, this action corrects a minor error made in the Airspace Designation.

Establishment of Class E airspace, Napakiak, AK: Establishment of Class E Airspace; Napakiak, AK, Federal Register, November 20, 2008, Volume 73, Number 225, Rules and Regulations, Page 70271, 14 CFR Part 71, Docket No. FAA-2008- 0454, Airspace Docket No. 08-AAL-13, Final rule. [TEXT] [PDF] (This final rule is effective 0901 UTC, January 15, 2009. The Director of the Federal Register approves this incorporation by reference action under Title 1, Code of Federal Regulations, Part 51, subject to the annual revision of Federal Aviation Administration Order 7400.9 and publication of conforming amendments.)

SUMMARY: The Federal Aviation Administration (FAA) establishes Class E airspace at Napakiak, AK to provide adequate controlled airspace to contain aircraft executing Standard Instrument Approach Procedures (SIAPs). Two SIAPs are developed for the Napakiak Airport. This action establishes Class E airspace upward from 700 feet (ft.) and 1,200 ft. above the surface at Napakiak Airport, Napakiak, AK.

THIS REGULATION IS NOT FURTHER ANALYZED HERE. IF YOU NEED MORE INFORMATION, PLEASE SEE THE FULL TEXT OF THE REGULATION IN THE LINKED DOCUMENT. Establishment of Class E airspace, Shageluk, AK: Establishment of Class E Airspace; Shageluk, AK, Federal Register, November 20, 2008, Volume 73, Number 225, Rules and Regulations, Page 70272, 14 CFR Part 71, Docket No. FAA-2008- 0458, Airspace Docket No. 08-AAL-17, Final rule. [TEXT] [PDF] (This final rule is effective 0901 UTC, January 15, 2009. The Director of the Federal Register approves this incorporation by reference action under Title 1, Code of Federal Regulations, Part 51, subject to the annual revision of Federal Aviation Administration Order 7400.9 and publication of conforming amendments.)

SUMMARY: The Federal Aviation Administration (FAA) establishes Class E airspace at Shageluk, AK to provide adequate controlled airspace to contain aircraft executing Standard Instrument Approach Procedures (SIAPs). Two SIAPs are developed for the Shageluk Airport. This action establishes Class E airspace upward from 700 feet (ft.) and 1,200 ft. above the surface at Shageluk Airport, Shageluk, AK.

Parachute equipment and packing: Parachute Equipment and Packing, Federal Register, November 19, 2008, Volume 73, Number 224, Rules and Regulations, Page 69526, 14 CFR Parts 91 and 105, Docket No. FAA-2005-21829, Amendment Nos. 91- 305, 105-13, RIN 2120-AI85, Final rule. [TEXT] [PDF] (This final rule is effective December 19, 2008.)

SUMMARY: The Federal Aviation Administration (FAA) amends the regulations for the packing interval for certain types of parachutes. Currently, the FAA prohibits most parachutes from being used or carried aboard an aircraft and available for emergency use unless they have been packed within the previous 120 days. New reliability data from the parachute industry and other sources indicate that the packing interval should be increased; therefore, the FAA lengthens the interval from 120 to 180 days. This final rule revises the parachute packing interval and ensures safe use.

Revision of Class E airspace, Badami, AK: Revision of Class E Airspace; Badami, AK, Federal Register, November 20, 2008, Volume 73, Number 225, Rules and Regulations, Page 70273, 14 CFR Part 71, Docket No. FAA-2008-0956, Airspace Docket No. 08-AAL-26, Final rule. [TEXT] [PDF] (This final rule is effective 0901 UTC, January 15, 2009. The Director of the Federal Register approves this incorporation by reference action under Title 1, Code of Federal Regulations, Part 51, subject to the annual revision of Federal Aviation Administration Order 7400.9 and publication of conforming amendments.) SUMMARY: The Federal Aviation Administration (FAA) revises Class E airspace at Badami, AK to provide adequate controlled airspace to contain aircraft executing Standard Instrument Approach Procedures (SIAPs). Two SIAPs are being developed for the Badami Airport. Additionally, a textual Obstacle Departure Procedure (ODP) is being developed. This action revises existing Class E airspace upward from 700 feet (ft.) and 1,200 ft. above the surface at Badami Airport, Badami, AK.

Special conditions, Airbus A318, A319, A320 and A321 series airplanes, inflatable restraints: Special Conditions: Airbus A318, A319, A320 and A321 Series Airplanes; Inflatable Restraints, Federal Register, November 20, 2008, Volume 73, Number 225, Rules and Regulations, Page 70257, 14 CFR Part 25, Docket No. NM394, Special Conditions No. 25-375-SC, Final special conditions, request for comments. [TEXT] [PDF] (These special conditions are effective November 12, 2008. The Federal Aviation Administration must receive any comments by January 5, 2009.)

SUMMARY: The Federal Aviation Administration (FAA) issues these special conditions for the Airbus A318, A319, A320, and A321 series airplanes. These airplanes will have a novel or unusual design feature associated with a passenger restraint system that contains an integrated inflatable airbag installed on passenger seats. The applicable airworthiness regulations do not contain adequate or appropriate safety standards for this design feature. These special conditions contain the additional safety standards that the Administrator considers necessary to establish a level of safety equivalent to that established by the existing airworthiness standards.

THE SPECIAL CONDITIONS: The following special conditions are issued as part of the type certification basis for the Airbus A318, A319, A320 and A321 series airplanes, as modified by installation of inflatable restraints. 1. Seats with inflatable restraints. It must be shown that the inflatable restraints will deploy and provide protection under crash conditions where it is necessary to prevent serious head injury or head entrapment. The means of protection must take into consideration a range of stature from a two-year-old child to a ninety-fifth percentile male. The inflatable restraints must provide a consistent approach to energy absorption throughout that range. In addition, the following situations must be considered: (a) The seat occupant is holding an infant. (b) The seat occupant is a child in a child restraint device. (c) The seat occupant is a child not using a child restraint device. (d) The seat occupant is a pregnant woman. 2. The inflatable restraints must provide adequate protection for each occupant regardless of the number of occupants of the seat assembly, considering that unoccupied seats may have active seatbelts. 3. The design must prevent the inflatable restraints from being either incorrectly buckled or incorrectly installed such that the inflatable restraints would not properly deploy. Alternatively, it must be shown that such deployment is not hazardous to the occupant and will provide the required head injury protection. 4. It must be shown that the inflatable restraints system is not susceptible to inadvertent deployment as a result of wear and tear or inertial loads resulting from in-flight or ground maneuvers (including gusts and hard landings), likely to be experienced in service. 5. Deployment of the inflatable restraints must not introduce injury mechanisms to the seated occupant or result in injuries that could impede rapid egress. This assessment should include an occupant who is in the brace position when it deploys and an occupant whose belt is loosely fastened. 6. It must be shown that an inadvertent deployment that could cause injury to a standing or sitting person is improbable. 7. It must be shown that inadvertent deployment of the inflatable restraints, during the most critical part of the flight, will either not cause a hazard to the airplane or is extremely improbable. 8. It must be shown that the inflatable restraints will not impede rapid egress of occupants 10 seconds after its deployment. 9. If lithium non-rechargeable batteries are used to power the inflatable restraints, the batteries must be DO-227 and UL compliant. However, if rechargeable lithium batteries are used, additional special conditions may apply. 10. The inflatable restraints must function properly after loss of normal airplane electrical power and after a transverse separation of the fuselage at the most critical location. A separation at the location of the lap belt does not have to be considered. 11. It must be shown that the inflatable restraints will not release hazardous quantities of gas or particulate matter into the cabin. 12. The inflatable restraints installation must be protected from the effects of fire such that no hazard to occupants will result. 13. The system must be protected from lightning and HIRF. The threats specified in Special Conditions No. 25-ANM-23 are incorporated by reference for the purpose of measuring lightning and HIRF protection. For the purposes of complying with HIRF requirements, the inflatable lapbelt system is considered a critical system if its deployment could have a hazardous effect on the airplane; otherwise it is considered an essential system. 14. There must be a means for a crewmember to verify the integrity of the inflatable restraints activation system prior to each flight or it must be demonstrated to reliably operate between inspection intervals. 15. The inflatable material may not have an average burn rate of greater than 2.5 inches/minute when tested using the horizontal flammability test as defined in 14 CFR part 25, appendix F, part I, paragraph (b)(5).

THIS REGULATION IS NOT FURTHER ANALYZED HERE. IF YOU NEED MORE INFORMATION, PLEASE SEE THE FULL TEXT OF THE REGULATION IN THE LINKED DOCUMENT. ------

FEDERAL HIGHWAY ADMINISTRATION (FHWA)

Worker visibility: Worker Visibility, Federal Register, November 21, 2008 (Volume 73, Number 226, Rules and Regulations, Page 70593, 23 CFR Part 634, FHWA Docket No. FHWA-2008-0157, RIN 2125-AF28, Interim Final Rule (IFR). [TEXT] [PDF] (This interim final rule is effective November 24, 2008.) SUMMARY: The Federal Highway Administration (FHWA) revises its regulations to address safety concerns raised by the firefighting community regarding high-visibility safety apparel. Due to imminent safety implications to firefighters, the FHWA has determined that there is good cause under the Administrative Procedure Act to dispense with notice and opportunity for comment as it would be contrary to the public interest. Therefore, the FHWA issues an Interim Final Rule, effective immediately, under the Administrative Procedure Act, and revising the FHWA regulations accordingly.

FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION (FMCSA)

Hours of service of drivers: Hours of Service of Drivers, Federal Register, November 19, 2008, Volume 73, Number 224, Rules and Regulations, Page 69567, 49 CFR Parts 385 and 395, Docket No. FMCSA-2004-19608, RIN-2126-AB14, Final rule. [TEXT] [PDF] (This final rule is effective January 19, 2009. For access to the docket to read background documents or comments received, go to http://www.regulations.gov at any time or to the ground floor, room W12-140, U.S. Department of Transportation (DOT) Building, 1200 New Jersey Avenue, SE, Washington, DC, between 9 a.m. and 5 p.m. e.t., Monday through Friday, except Federal holidays. Anyone is able to search the electronic form of all comments received into any of the Federal Motor Carrier Safety Administration’s dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review the Department of Transportation’s complete Privacy Act Statement in the Federal Register published April 11, 2000 (65 FR 19476) or you may visit http://docketsinfo.dot.gov.)

SUMMARY: The Federal Motor Carrier Safety Administration (FMCSA or Agency) adopts as final the provisions of its December 17, 2007, interim final rule concerning hours of service (HOS) for commercial motor vehicle (CMV) drivers. This final rule allows CMV drivers to continue to drive up to 11 hours within a 14-hour, non- extendable window from the start of the workday, following at least 10 consecutive hours off duty (11-hour rule). This rule also allows motor carriers and drivers to continue to restart calculations of the weekly on-duty limits after the driver has at least 34 consecutive hours off duty (34-hour restart).

Regulatory agenda, semiannual regulatory agenda: Department Regulatory Agenda; Semiannual Summary, November 24, 2008, Volume 73, Number 227, Unified Agenda, Part X, 14 CFR Chs. I-III, 23 CFR Chs. I-III, 33 CFR Chs. I and IV, 46 CFR Chs. I-III, 48 CFR Ch. 12, 49 CFR Subtitle A, Chs. I-VI and Chs. X-XII, OST Docket 99-5129,Semiannual regulatory agenda. [TEXT] [PDF]

SUMMARY: The regulatory agenda is a semiannual summary of all current and projected rulemakings, reviews of existing regulations, and completed actions of the Department of Transportation (USDT or Department). The agenda provides the public with information about the USDT’s regulatory activity. It is expected that this information will enable the public to be more aware of and allow it to more effectively participate in the Department's regulatory activity. The public is also invited to submit comments on any aspect of this agenda.

THIS PROPOSED REGULATION IS NOT FURTHER ANALYZED HERE. IF YOU NEED MORE INFORMATION, PLEASE SEE THE FULL TEXT IN THE LINKED DOCUMENT.

FEDERAL AVIATION ADMINISTRATION (FAA)

Airworthiness directives, Boeing Model 767 airplanes: Airworthiness Directives; Boeing Model 767 Airplanes, Federal Register, November 21, 2008, Volume 73, Number 226, Proposed Rules, Page 70608, 14 CFR Part 39, Docket No. FAA-2007-27223, Directorate Identifier 2006-NM-224-AD, RIN 2120-AA64, Supplemental notice of proposed rulemaking (NPRM), reopening of comment period. [TEXT] [PDF] (The Federal Aviation Administration must receive any comments on this supplemental notice of proposed rulemaking by December 16, 2008.)

SUMMARY: The Federal Aviation Administration (FAA) revises an earlier proposed airworthiness directive (AD) for certain Boeing Model 767 airplanes. The original notice of proposed rulemaking (NPRM) would have required modifying the link arms of the number 2 windows in the flight compartment.

PURPOSE: The original NPRM resulted from reports of the number 2 windows opening during takeoff roll, which has resulted in aborted takeoffs in certain Boeing Model 767 airplanes. This supplemental NPRM would require an inspection of the number 2 windows to determine whether the link arms are in the over-center position. The results of the inspection would determine the need for the modification. This supplemental NPRM would also require the inspection and applicable corrective action following any rigging change or replacement of any number 2 window assembly. This supplemental NPRM would require actions intended to prevent the opening of the number 2 windows during takeoff roll, which could result in an aborted takeoff or an unscheduled landing, and adversely affect the flightcrew's ability to perform critical takeoff communication.

Proposed Establishment of Class D airspace, Branson, MO: Proposed Establishment of Class D Airspace; Branson, MO, Federal Register, November 20, 2008, Volume 73, Number 225, Proposed Rules, Page 70287, 14 CFR Part 71, Docket No. FAA-2008-1102, Airspace Docket No. 08-AGL-8, Notice of proposed rulemaking. [TEXT] [PDF] (Any comments must be received on or before January 5, 2009.)

SUMMARY: The Federal Aviation Administration (FAA) proposes to establish Class D airspace at Branson Airport, Branson, MO. The establishment of an air traffic control tower has made this action necessary for the safety of Instrument Flight Rule (IFR) operations at Branson Airport.

Proposed establishment of Class E airspace, Tower, MN: Proposed Establishment of Class E Airspace; Tower, MN, Federal Register, November 25, 2008, Volume 73, Number 228, Proposed Rules, Page 71569, 14 CFR Part 71, Docket No. FAA-2008-1186, Airspace Docket No. 08-AGL-12, Notice of proposed rulemaking. [TEXT] [PDF] (Any comments must be received on or before January 9, 2009.)

SUMMARY: The Federal Aviation Administration (FAA) proposes to establish Class E airspace at Tower, MN. Controlled airspace is to accommodate new Standard Instrument Approach Procedures (SIAPs) at Tower Municipal Airport, Tower, MN. The FAA takes this action to enhance the safety and management of Instrument Flight Rules (IFR) aircraft operations at Tower Municipal Airport.

Special conditions, Dassault Falcon 2000 series airplanes, Aircell Airborne Satcom equipment consisting of a wireless handset and associated base station, etc.: Special Conditions: Dassault Falcon 2000 Series Airplanes; Aircell Airborne Satcom Equipment Consisting of a Wireless Handset and Associated Base Station, With Lithium Battery Installations, Federal Register, November 20, 2008, Volume 73, Number 225, Proposed Rules, Page 70285, 14 CFR Part 25, Docket No. NM395, Notice No. 25-08-07-SC, Notice of proposed special conditions. [TEXT] [PDF] (The Federal Aviation Administration must receive any comments by January 5, 2009.)

SUMMARY: The Federal Aviation Administration (FAA) proposes special conditions for the Dassault Falcon 2000 series airplanes. These airplanes, as modified by Aircell LLC, will have a novel or unusual design feature associated with the Aircell airborne satcom equipment (ASE) which uses lithium battery technology. The applicable airworthiness regulations do not contain adequate or appropriate safety standards for this design feature. These proposed special conditions contain the additional safety standards that the Administrator considers necessary to establish a level of safety equivalent to that established by the existing airworthiness standards.

THIS PROPOSED REGULATION IS NOT FURTHER ANALYZED HERE. IF YOU NEED MORE INFORMATION, PLEASE SEE THE FULL TEXT IN THE LINKED DOCUMENT. Special conditions, General Electric Company GEnx-2B Model turbofan engines: Special Conditions: General Electric Company GEnx-2B Model Turbofan Engines, Federal Register, November 24, 2008, Volume 73, Number 227, Proposed Rules, Page 70926, 14 CFR Part 33, Docket No. NE129, Notice No. 33-08-01-SCI, Notice of proposed special conditions. [TEXT] [PDF] (The Federal Aviation Administration must receive any comments on or before December 24, 2008.)

SUMMARY: The Federal Aviation Administration (FAA) proposes special conditions for General Electric Company (GE) GEnx-2B67 and GEnx-2B69 model turbofan engines. The fan blades of these engines will have novel or unusual design features when compared to the state of technology envisioned in the Part 33 airworthiness standards. The applicable airworthiness regulations do not contain adequate or appropriate safety standards for these design features. These special conditions contain the added safety standards the Administrator considers necessary to establish a level of safety equivalent to that established by the existing airworthiness standards of 14 CFR Part 33.

FEDERAL TRANSIT ADMINISTRATION (FTA)

Buy America requirements, bi-metallic composite conducting rail: Buy America Requirements; Bi-Metallic Composite Conducting Rail, Federal Register, November 24, 2008, Volume 73, Number 227, Proposed Rules, Page 70950, 49 CFR Part 661, Docket No. FTA-2008-0057, RIN 2132-AA99, Notice of proposed rulemaking (NPRM). [TEXT] [PDF] (Any comments must be submitted on or before January 23, 2009. Late filed comments will be considered to the extent practicable.)

SUMMARY: Following the two recent Buy America rulemakings under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the Federal Transit Administration (FTA) received a petition for reconsideration of the treatment of bi-metallic composite conducting rail as a steel product that must be manufactured in the United States. The FTA's Buy America regulation treats both running rail and contact rail as a steel or iron product which must be manufactured entirely in the U.S. During the recent rulemakings, several commenters proposed that bi-metallic rail be instead categorized as “traction power equipment.” If adopted, the proposal would have changed the regulatory treatment of contact rail based on the rail's composition. As traction power equipment, bi-metallic rail would have been subject to a lower 60 percent domestic content requirement, in contrast to running rail made of steel and iron, which must contain 100 percent domestic content. In addition, as traction power equipment, bi-metallic rail would be subject only to “final assembly” in the United States, which may be a less rigorous process than the manufacturing process required for other forms of power rail, including steel and iron. Because the FTA believed adopting the proposal in the final rule would have altered the regulatory environment for affected parties who may have been unaware of the proposal, including manufacturers of steel and iron contact rail, without subjecting the issue to full notice-and-comment from all affected parties, the FTA declined to adopt the proposal, instead deferring action to this separate rulemaking. Through this Notice of Proposed Rulemaking (NRPM), the FTA proposes to amend its Buy America regulations to re-categorize bi-metallic composite conducting rail as “traction power equipment” which need only consist of 60 percent domestic content, with final assembly taking place in the United States.

TREASURY (USDT)

Regulations pertaining to mergers, acquisitions, and takeovers by foreign persons: Regulations Pertaining to Mergers, Acquisitions, and Takeovers by Foreign Persons, Federal Register, November 21, 2008, Volume 73, Number 226, Rules and Regulations, Page 70701, Part II, DEPARTMENT OF THE TREASURY, Office of Investment Security, 31 CFR Part 800, RIN 1505-AB88, Final rule. [TEXT] [PDF] (This final rule is effective December 22, 2008. For date of applicability, see Section 800.103 in the linked document.)

SUMMARY: The Department of the Treasury (USDT) amends regulations in Part 800 of 31 CFR that implement Section 721 of the Defense Production Act of 1950 (Section 721), as amended by the Foreign Investment and National Security Act of 2007, codified at 50 U.S.C. App. 2170. While the revised regulations retain many features of the prior regulations, a number of changes have been made to implement Section 721, increase clarity, reflect developments in business practices over the past several years, and make additional improvements based on experiences with the prior regulations.

DEFENSE PRODUCTION ACT OF 1950: The Act allows the President of the United States to suspend or prohibit any transaction which leads the President believes will allow a foreign person exercising control over a U.S. business might take action that threatens to impair the national security of the United States.

THE FOREIGN INVESTMENT AND NATIONAL SECURITY ACT OF 2007 (FINSA): FINSA authorizes the President to review mergers, acquisitions, and takeovers by or with any foreign person which could result in foreign control of any person engaged in interstate commerce in the United States, to determine the effects of such transactions on the national security of the United States. To this end the rule establishes the Committee on Foreign Investment in the United States (CFIUS or the Committee) and the role of executive branch departments, agencies, and offices in CFIUS’s review of transactions for national security concerns. FINSA specifies the following as members of CFIUS: The Secretary of the Treasury (who serves as chairperson), the Attorney General, and the Secretaries of Homeland Security, Commerce, Defense, State, and Energy. FINSA also provides that CFIUS may include, generally or on a case-by-case basis as the President deems appropriate, the heads of any other executive department, agency, or office. The President designated the U.S. Trade Representative and the Director of the Office of Science and Technology Policy as additional members of Committee and the President also directed that the following officials (or their designees) shall observe and, as appropriate, participate in and report to the President on CFIUS’s activities: The Director of the Office of Management and Budget, the Chairman of the Council of Economic Advisors, the Assistant to the President for National Security Affairs, the Assistant to the President for Economic Policy, and the Assistant to the President for Homeland Security and Counterterrorism. FINSA also establishes the Director of National Intelligence (DNI) and the Secretary of Labor as ex officio members of CFIUS. FINSA specifies that the DNI is to provide independent analyses of any national security threats posed by transactions and is to have no other policy role. FINSA further provides that, for each transaction before CFIUS, the Department of the Treasury shall designate, as appropriate, one or more lead agencies. The lead agency, on behalf of CFIUS, may negotiate, enter into or impose, monitor, and enforce mitigation agreements or conditions with parties to a transaction to address any threats to national security posed by the transaction. FINSA requires regulations to provide for an appropriate role for the Secretary of Labor with respect to mitigation agreements. FINSA also formalizes the process by which CFIUS conducts national security reviews of any transaction that could result in foreign control of a person engaged in interstate commerce in the United States, which FINSA refers to as a “covered transaction.” Specifically, FINSA provides for CFIUS review of covered transactions, which must be completed within 30 days, to determine the effect of the transaction on national security and to address any national security concerns. Subject to certain exceptions, FINSA requires an additional investigation, which must be completed within 45 days, in the following types of cases: 1. Where the transaction threatens to impair U.S. national security and that threat has not been mitigated prior to or during the 30-day review; 2. Where the transaction is a foreign government-controlled transaction; 3. Where the transaction results in foreign control over critical infrastructure that, in the determination of CFIUS, could impair national security, if that impairment has not been mitigated; or 4. Where the lead agency recommends, and CFIUS concurs, that an investigation be undertaken

CFIUS ACCOUNTABILITY: To ensure accountability for CFIUS decisions, FINSA requires that a senior-level official of the Department of the Treasury and of the lead agency certify to Congress, for any covered transaction on which CFIUS has concluded action that CFIUS has determined that there are no unresolved national security concerns. The certification must be made at a level no lower than an employee appointed by the President by and with the advice and consent of the Senate, for transactions on which CFIUS concludes action under section 721 after a review, and at the Deputy Secretary level or above for transactions on which CFIUS concludes action under section 721 after an investigation. Decisions made by the President on a transaction under section 721, must be announced publicly within 15 days of the completion of the investigation. DECISIONS OF NATIONAL SECURITY RISK: Where a covered transaction presents national security risks, FINSA provides statutory authority for CFIUS, or a lead agency acting on behalf of CFIUS, to enter into mitigation agreements with parties to the transaction or to impose conditions on the transaction to address such risks. This authority enables CFIUS to mitigate any national security risk posed by a transaction rather than recommending to the President that the transaction be prohibited because it could impair U.S. national security. FINSA also provides CFIUS with authority to impose civil penalties for violations of section 721, including violations of any mitigation agreement. CONGRESSIONAL OVERSIGHT: The rule increases CFIUS’s reporting to Congress concerning the work it has undertaken pursuant to section 721. CFIUS must provide annual reports on its work, including a list of the transactions it has reviewed or investigated in the preceding 12 months, analysis related to foreign direct investment and critical technologies, and a report on foreign direct investment from certain countries.

INTERNAL REVENUE SERVICE (IRS)

Section 1367 regarding open account debt, correction: Section 1367 Regarding Open Account Debt, Federal Register, November 25, 2008, Volume 73, Number 228, Rules and Regulations, Page 71545, 26 CFR Part 1, TD 9428, RIN 1545-BD72, Correction. [TEXT] [PDF]

CORRECTION: 26 CFR Part 1, Section 1.1367-2(e), is corrected as follows:

On page 62203, in the first column, in the sixth full paragraph, in the fourth line, in Section 1.1367-2(e), “Example 7” is corrected to read “Example 7”.

INTERNAL REVENUE SERVICE (IRS)

Alcohol fuel and biodiesel, renewable diesel, alternative fuel, diesel-water fuel emulsion, taxable fuel definitions, excise tax returns, hearing: Alcohol Fuel and Biodiesel; Renewable Diesel; Alternative Fuel; Diesel-Water Fuel Emulsion; Taxable Fuel Definitions; Excise Tax Returns; Hearing, Federal Register, November 20, 2008, Volume 73, Number 225, Proposed Rules, Page 70288, 26 CFR Part 1, REG-155087-05, RIN 1545-BF17, Notice of public hearing on proposed rulemaking. [TEXT] [PDF] (The public hearing is to be held February 9, 2009, at 10 a.m. The Internal Revenue Service must receive any outlines of the topics to be discussed at the public hearing by January 9, 2009.)

SUMMARY: The Internal Revenue Service (IRS) provides notice of public hearing on proposed regulations relating to credits and payments for alcohol mixtures, biodiesel mixtures, renewable diesel mixtures, alternative fuel mixtures, and alternative fuel sold for use or used as a fuel, as well as proposed regulations relating to the definition of gasoline and diesel fuel.

Employee stock purchase plans under Internal Revenue Code Section 423, hearing: Employee Stock Purchase Plans Under Internal Revenue Code Section 423; Hearing, Federal Register, November 24, 2008, Volume 73, Number 227, Proposed Rules, Page 70929, 26 CFR Part 1, REG-106251-08, RIN 1545-BH68, Notice of public hearing on proposed rulemaking. [TEXT] [PDF] (The public hearing is being held January 15, 2009, at 10 a.m. The Internal Revenue Service must receive outlines of the topics to be discussed at the public hearing by December 18, 2008.)

SUMMARY: The Internal Revenue Service (IRS) provides notice of public hearing on proposed regulations relating to options granted under an employee stock purchase plan as defined in Section 423 of the Internal Revenue Code. These proposed regulations affect certain taxpayers who participate in the transfer of stock under the exercise of options granted under an employee stock purchase plan.

Section 108 reduction of tax attributes for S Corporations, hearing cancellation: Section 108 Reduction of Tax Attributes for S Corporations; Hearing Cancellation, Federal Register, November 20, 2008, Volume 73, Number 225, Proposed Rules, Page 70289, 26 CFR Part 1, REG-102822-08, RIN 1545-BH54, Cancellation of notice of public hearing on proposed rulemaking. [TEXT] [PDF] (The public hearing, originally scheduled for December 8, 2008, at 10 a.m. is cancelled.)

SUMMARY: The Internal Revenue Service (IRS) cancels a public hearing on proposed rulemaking that provides guidance on the manner in which an S corporation reduces its tax attributes under Section 108(b) for taxable years in which the S corporation has discharge of indebtedness income that is excluded from gross income under Section 108(a).