Vol. 136, No. 48 — November 30, 2002

Foreign Institutions Subject to Canadian Residency Requirements Regulations (Insurance Companies)

Statutory Authority

Insurance Companies Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see the Access to Basic Banking Services Regulations.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 1021 (see footnote a)  of the Insurance Companies Act (see footnote b) , proposes to make the annexed Foreign Institutions Subject to Canadian Residency Requirements Regulations (Insurance Companies).

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mr. Gerry Salembier, Financial Sector Policy Branch, Department of Finance, 15th Floor, East Tower, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0G5.

Ottawa, November 28, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

FOREIGN INSTITUTIONS SUBJECT TO THE CANADIAN RESIDENCY REQUIREMENTS REGULATIONS (INSURANCE COMPANIES)

PRESCRIBED HOLDING BODY CORPORATE

1. For the purpose of subsection 167(2) of the Insurance Companies Act, a holding body corporate of a foreign institution is prescribed if

(a) the holding body corporate is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province; and

(b) the holding body corporate and entities it controls are, when viewed as a whole, engaged primarily in the business of providing financial services.

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

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Foreign Institutions Subject to Canadian Residency Requirements Regulations (Trust and Loan Companies)

Statutory Authority

Trust and Loan Companies Act

Sponsoring Department

Department of Finance

REGULATORY IMPACT ANALYSIS STATEMENT

For the Regulatory Impact Analysis Statement, see the Access to Basic Banking Services Regulations.

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 531 (see footnote c)  of the Trust and Loan Companies Act (see footnote d) , proposes to make the annexed Foreign Institutions Subject to Canadian Residency Requirements Regulations (Trust and Loan Companies).

Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mr. Gerry Salembier, Financial Sector Policy Branch, Department of Finance, 15th Floor, East Tower, L'Esplanade Laurier, 140 O'Connor Street, Ottawa, Ontario K1A 0G5.

Ottawa, November 28, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

FOREIGN INSTITUTIONS SUBJECT TO CANADIAN RESIDENCY REQUIREMENTS REGULATIONS (TRUST AND LOAN COMPANIES)

PRESCRIBED HOLDING BODY CORPORATE

1. For the purpose of subsection 163(2) of the Trust and Loan Companies Act, a holding body corporate of a foreign institution is prescribed if

(a) the holding body corporate is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province; and

(b) the holding body corporate, and entities it controls are, when viewed as a whole, engaged primarily in the business of providing financial services.

COMING INTO FORCE

2. These Regulations come into force on the day on which they are registered.

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Regulations Amending the Canadian Aviation Regulations (Part V)

Statutory Authority

Aeronautics Act

Sponsoring Department

Department of Transport

REGULATORY IMPACT ANALYSIS STATEMENT

Description

These proposed Regulations Amending the Canadian Aviation Regulations (Part V) will clarify certain existing requirements and introduce a record keeping requirement for approved maintenance organizations (AMOs).

Clarifying amendments are proposed for two sections in Subpart 71 (Aircraft Maintenance Requirements) and for Schedule II (Specialized Maintenance), which is attached to Subpart 71 of Part V.

Section 571.02 (Maintenance and Elementary Work Performance Rules) sets forth the rules by which a person performing maintenance or elementary work on an aeronautical product must abide. A proposed amendment to section 571.02 will specify that, when a measuring device or test equipment is being used and calibration requirements have been published by the manufacturer of the device or equipment, the person who is using the device or equipment must ensure that it is calibrated by means traceable to a national standard. At present, this section requires only that the calibration must be performed in conformity with a national standard. The proposed wording is more precise and will lead to greater accuracy in calibrating measuring devices or test equipment used in aircraft maintenance work.

A proposed editorial change in section 571.06 (Repairs and Modifications) will replace the provision that prohibits the making of a part to be offered for sale by stating specifically that a part may only be made for installation by the person or organization who made the part.

Schedule II (Specialized Maintenance) of Subpart 71 (Aircraft Maintenance Requirements) lists the tasks which must be performed, as provided in section 571.04 (Specialized Maintenance), in accordance with a maintenance policy manual established by the holder of an approved maintenance organization (AMO) certificate or the equivalent foreign document under the laws of a state that is party to an agreement with Canada which provides for recognition of the work to be performed. The proposed revisions to Schedule II of Subpart 71 will detail what work on avionics equipment and in the maintenance of instruments is not considered to be specialized maintenance and, therefore, need not be performed in accordance with the provisions of section 571.04. An information note will be added to Standard section 571.04 (Specialized Maintenance) to clarify the proposed revisions to Schedule II with respect to avionics equipment.

A proposed new section 573.15 (Technical Records) with an accompanying Standard section 573.15 will introduce a requirement for an AMO certificate holder to maintain records for work which is performed by the organization on aeronautical products. The records will have to be kept for at least two years beginning on the date that the maintenance release was signed. The accompanying Standard will set forth the details of which records must be retained and under what conditions. At present, there is no requirement under the CARs or associated standards for AMOs to retain records of the work which they perform on aeronautical products.

Alternatives

No alternatives to regulatory action are available to clarify existing requirements in the Canadian Aviation Regulations, or to introduce a record keeping requirement for approved maintenance organizations.

Benefits and Costs

Throughout the development of the aviation regulations and standards, Transport Canada applies risk management concepts. Where there are risk implications, the analysis of these proposed amendments has concluded that the imputed risk is acceptable in light of the expected benefits.

The proposed amendments to clarify the intent in sections 571.02 (Maintenance and Elementary Work Performance Rules) and 571.06 (Repairs and Modifications) and to Schedule II (Specialized Maintenance) of Subpart 71 are not expected to require significant changes to current practices and procedures. The benefit-cost impact of these proposals will be minimal.

Currently, Standard section 573.10 (Maintenance Policy Manual) requires the AMO to provide in the maintenance policy manual (MPM) details of the methods used to record the work performed, as well as a detailed description of the system used to ensure that all maintenance tasks applicable to the work requested of the AMO have been completed as required by the relevant sections of the regulations. The proposed requirement for record-keeping in AMOs will require the retention of these existing records rather than the creation of new records. As stated in the information note attached to the proposed new Standard section 573.15 (Technical Records), the aircraft technical records which will have to be retained under this proposal are copies of those which must be passed to the aircraft owner upon completion of maintenance. The remaining maintenance records which must be retained are generally work cards, inspection sheets, etc. which the organization would normally produce as part of a control procedure within their own shop. For both types of records, the requirement for retention will maintain traceability of work performed for the Quality Assurance Program and other regulatory requirements which the AMO must satisfy. The retention requirement may be fulfilled by electronic storage where the precautions detailed in the proposed standard have been taken. Although some costs will be incurred by AMOs where these records have not previously been retained, they are expected to be justified by improvement in assurance of the quality of the performance of maintenance work which will be allowed by record retention. The benefit-cost impact of this provision is expected to be positive.

Consultation

These proposed amendments have been consulted with members of the Part V Aircraft Maintenance and Manufacturing Technical Committee of the Canadian Aviation Regulation Advisory Council (CARAC). The actively participating members of this Technical Committee include the Aerospace Industries Association of Canada, Air Canada, the Air Transport Association of Canada, the American Owners and Pilots Association-Canada, Bell Helicopter Textron Canada, Bombardier, Canadian Airlines International Ltd., the Canadian Association of Aviation Distributors and Maintenance Organizations, the Canadian Aviation Maintenance Council, the Canadian Business Aircraft Association, the Canadian Federation of Aircraft Maintenance Engineer Associations, the Canadian Owners and Pilots Association, the Canadian Sports Aviation Council, Canadore College, Centennial College, the Department of Justice, the Department of National Defence, the Experimental Aircraft Association — Canadian Council, Field Aviation Co. Inc., Flight Safety Canada, Hope Aero, Innotech Aviation, the International Association of Machinists and Aerospace Workers, the National Training Association, the Northern Alberta Institute of Technology, the Ontario Aircraft Maintenance Engineer Association, Pratt and Whitney Canada, the Recreational Aircraft Association Canada, Spar Aviation Services, the Transportation Safety Board of Canada, the Ultralight Pilots Association of Canada, and the Western Aircraft Maintenance Engineer Association.

The Aircraft Maintenance and Manufacturing Technical Committee reviewed these proposed amendments to the CARs at meetings in 1999. One dissent was expressed to the proposed inclusion of the on-board entertainment system on large commercial aeroplanes among the items the repair of which is considered specialized maintenance of avionics equipment in Schedule II to Subpart 71. The inclusion of an item in the list of items requiring specialized maintenance requires that maintenance on such an item can only be signed off by an aircraft maintenance engineer (AME) with an avionics rating. The dissenter argued that such a rating is not required to perform maintenance on an on-board entertainment system. There were no dissents to the remaining proposals. The consensus of the Technical Committee was to recommend the adoption of these proposed amendments.

The proposed amendments were presented at the Civil Aviation Regulatory Committee (CARC), which is composed of senior managers in the Civil Aviation Directorate of the Department of Transport, in June and December 1999 and in March 2000. The dissent outlined above to the inclusion of passenger-entertainment systems in the list of equipment requiring specialized maintenance under Schedule II of Subpart 71 was presented to CARC at the meeting in December 1999. The CARC members accepted the dissent and modified the proposed Schedule as presented to them to allow for appropriate treatment of maintenance of passenger entertainment systems as set forth in subparagraph 4(1)(f) of the Schedule as currently proposed. With this revision the members of CARC approved the proposed amendments.

Compliance and Enforcement

These regulations will generally be enforced through the assessment of monetary penalties imposed under section 7.6 to 8.2 of the Aeronautics Act, through suspension or cancellation of a Canadian aviation document or through judicial action introduced by way of summary conviction as per section 7.3 of the Aeronautics Act.

Contact

Chief, Regulatory Affairs, AARBH, Transport Canada, Safety and Security, Place de Ville, Tower C, Ottawa, Ontario K1A 0N8, (613) 993-7284 or 1-800-305-2059 (Telephone, general inquiries), (613) 990-1198 (Facsimile), www.tc.gc.ca (Internet address).

PROPOSED REGULATORY TEXT

Notice is hereby given that the Governor in Council, pursuant to section 4.9 (see footnote e)  of the Aeronautics Act, proposes to make the annexed Regulations Amending the Canadian Aviation Regulations (Part V).

Interested persons may make representations with respect to the proposed Regulations to the Minister of Transport within 30 days after the date of publication of this notice. All such representations should cite the Canada Gazette, Part I, and the date of publication of this notice. Each representation must be in writing and be sent to the Chief, Regulatory Affairs (AARBH), Civil Aviation, Safety and Security Group, Department of Transport, Place de Ville, Tower C, 330 Sparks Street, Ottawa, Ontario K1A 0N8. (General inquiries - tel.: (613) 993-7284 or 1-800-305-2059; fax: (613) 990-1198; Internet address: http://www.tc.gc.ca.)

Persons making representations should identify any of those representations the disclosure of which should be refused under the Access to Information Act, in particular under sections 19 and 20 of that Act, and should indicate the reasons why and the period during which the representations should not be disclosed. They should also identify any representations for which there is consent to disclosure for the purposes of that Act.

Ottawa, November 28, 2002

EILEEN BOYD
Assistant Clerk of the Privy Council

REGULATIONS AMENDING THE CANADIAN AVIATION REGULATIONS (PART V)

AMENDMENTS

1. Paragraph 571.02(2)(b) of the Canadian Aviation Regulations (see footnote 1)  is replaced by the following:

(b) if calibration requirements are published by the manufacturer of the measuring device or test equipment, is calibrated by means traceable to a national standard.

2. Paragraph 571.06(4)(b) of the Regulations is replaced by the following:

(b) installed by a person or organization other than the person or organization that made the part.

3. Schedule II to Subpart 71 of Part V of the Regulations is replaced by the following:

SCHEDULE II
(Section 571.04)

SPECIALIZED MAINTENANCE

The following tasks constitute the specialized maintenance referred to in section 571.04 of these Regulations.

Airframe

1. (1) The modification, repair or replacement by riveting, bonding or laminating, or the making of any of the following airframe parts is structural specialized maintenance:

(a) a box beam;

(b) a wing stringer or chord member;

(c) a spar;

(d) a spar flange;

(e) a member of a truss-type beam;

(f) the web of a beam;

(g) a keel or chine member of a flying boat hull or a float;

(h) a corrugated sheet compression member in a wing or tail surface;

(i) a wing main rib;

(j) a wing or tail surface brace strut;

(k) an engine mount;

(l) a fuselage longeron or frame;

(m) a member of a side truss, horizontal truss or bulkhead;

(n) a seat support brace or bracket, excluding the replacement of seat rails;

(o) a seat rail replacement for transport category aircraft;

(p) a landing gear strut or brace strut;

(q) an axle;

(r) a wheel; and

(s) a ski or ski pedestal, excluding the replacement of a low-friction coating.

(2) The modification or repair of any of the following parts of an airframe is structural specialized maintenance:

(a) aircraft skin, or the skin of an aircraft float, if the work requires the use of a support, jig or fixture;

(b) aircraft skin that is subject to pressurization loads, if the damage to the skin measures more than 15 cm (6 inches) in any direction;

(c) a load-bearing part of a control system, including a control column, pedal, shaft, quadrant, bellcrank, torque tube, control horn and forged or cast bracket, but excluding

(i) the swaging of a repair splice or cable fitting, and

(ii) the replacement of a push-pull tube end fitting that is attached by riveting; and

(d) any other structure that a manufacturer has identified as a primary structure in its maintenance manual, structural repair manual or any instructions for continuing airworthiness.

Engine

2. Any of the following types of tasks is engine specialized maintenance:

(a) the reassembly of a multi-part engine crankshaft or a crankshaft equipped with a dynamic counterweight system;

(b) the reassembly of the crankcase of a reciprocating engine that is equipped with an integral supercharger or a propeller reduction gear;

(c) the overhaul of a reciprocating engine that is equipped with an integral or turbo supercharger; and

(d) the overhaul of a turbine engine or turbine engine module.

Propeller

3. Any of the following types of propeller repair, if the work is beyond the limits recommended in the manufacturer's maintenance manual or service instructions for service in the field is propeller specialized maintenance:

(a) the re-contouring, twisting, shortening or straightening of a propeller blade or the blending of damage thereto;

(b) the repair or machining of a propeller hub, excluding the removal of surface corrosion or application of a protective coating;

(c) the reinstallation of a metal leading edge sheath or tip of a wooden blade;

(d) the replacement of the outer protective coating on a wooden blade, excluding the restoration of varnish;

(e) the repair of an elongated propeller attachment or propeller blade attachment bolt hole;

(f) the inlaying of a repair patch on a wooden blade;

(g) the repair of a composite blade; and

(h) an overhaul or repair involving the reassembly of a controllable-pitch propeller, excluding the reassembly of a propeller that has been disassembled for shipping purposes, or the replacement of seals.

Avionics

4. (1) The repair of avionics components and systems is avionics specialized maintenance, except for:

(a) repairs of wiring and connectors;

(b) replacement of connectors and electrical components with identical or equivalent items;

(c) replacement of antennas with identical or equivalent items;

(d) replacement of integral fuses and lighting components when the line replaceable unit (LRU) is designed for flight-line replacement of these components;

(e) replacement of an avionics LRU provided that any testing required can be done using standard test equipment, built-in test equipment (BITE) or equipment specified in the aircraft manufacturer's instructions for continuing airworthiness;

(f) on-site maintenance of passenger entertainment systems performed in accordance with the applicable instructions in the maintenance manual of the aircraft or systems manufacturer or the manufacturer's instructions for continuing airworthiness; and

(g) routine maintenance that is described in the aircraft manufacturer's maintenance manual or instructions for continuing airworthiness or performed in accordance with currently recognized industry practices for service in the field.

(2) Any avionics system installation or modification is avionics specialized maintenance except for:

(a) installation of ELT systems conforming to TSO C91/C91a;

(b) installation of single VHF communication or single integrated navigation/communication systems that are not interfaced with any other system, other than an intercom system;

(c) installation of VFR long-range navigation systems which are not interfaced with any other systems;

(d) modifications to existing avionics installations, where no additional test requirements are imposed on the affected system other than those which would be required following routine maintenance of that system;

(e) installation of instruments which are not interfaced with any other systems; and

(f) replacement of an avionics LRU where equivalency is maintained, and where no additional test requirements are imposed on the affected system other than those which would be required following routine maintenance of that system.

Instrument

5. Maintenance of instruments, other than display devices whose operation is integrated with an appliance to which another category of specialized maintenance applies, if the work is beyond the limits recommended in the manufacturer's maintenance manual or service instructions for service in the field, is instrument specialized maintenance.

Component

6. Any of the following types of maintenance of an appliance or component, where the work is beyond the limits recommended in the manufacturer's maintenance manual or service instructions for service in the field, is component specialized maintenance:

(a) the reassembling of valves that are activated electrically or through the use of controlled fluid pressure;

(b) the calibrating or flow checking of any fuel metering or air metering component, other than a float-type carburettor;

(c) the overhaul of any pressure-type fuel, oil, pneumatic or hydraulic pump;

(d) a repair involving the disassembly of speed-regulating devices, including an engine or propeller governor or a constant-speed drive;

(e) the overhaul of a rotor head, transmission or any mechanism used to transmit power to the rotors of a tilt-wing aircraft or helicopter;

(g) the rewinding of the field coil or armature of an electrical accessory;

(h) the overhaul of an aircraft magneto; and

(i) the patch repair of a bladder-type fuel tank.

Welding

7. The welding of the following parts is welding specialized maintenance:

(a) any part of the primary structure, including a wheel, an axle and a passenger restraint or cargo restraint system;

(b) any part of an aircraft system, including a fuel tank, an oil tank and a pneumatic or hydraulic container; and

(c) any structural or dynamic engine part.

Non-destructive Testing (NDT)

8. Any required inspection of an aeronautical product that uses liquid penetrant, magnetic particle, radiographic, ultrasonic or eddy current methods, unless the inspection is performed under Appendix K to Standard 571 — Maintenance, is Non-Destructive Testing (NDT) Specialized Maintenance.

4. The Regulations are amended by adding the following after section 573.14:

Technical Records

573.15 An approved maintenance organization (AMO) certificate holder shall maintain records in accordance with section 573.15 of Standard 573 — Approved Maintenance Organizations for work performed on all aeronautical products maintained and keep those records for at least two years beginning on the date that the maintenance release was signed.

COMING INTO FORCE

5. These Regulations come into force on the day on which they are registered.

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Footnote a 

S.C. 2001, c. 9, s. 465

Footnote b 

S.C. 1991, c. 47

Footnote c 

S.C. 2001, c. 9, s. 569

Footnote d 

S.C. 1991, c. 45

Footnote e 

S.C. 1992, c. 4, s. 7

Footnote 1 

SOR/96-433

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