[Federal Register Volume 69, Number 132 (Monday, July 12, 2004)]
[Rules and Regulations]
[Pages 41756-41757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-15607]



[[Page 41756]]

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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 344

[Department of the Treasury Circular, Public Debt Series No. 3-72]


U.S. Treasury Securities--State and Local Government Series

AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.

ACTION: Interim rule with request for comments.

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SUMMARY: The Department of the Treasury (Treasury) is issuing an 
interim rule that updates the method by which owners of State and Local 
Government Series (SLGS) securities will obtain access to SLGSafe\SM\. 
SLGSafe is a secure Internet site where customers subscribe for SLGS 
securities.

DATES: Effective date August 11, 2004. To be considered, comments must 
be received on or before July 27, 2004.

ADDRESSES: You may submit comments, identified by Docket Number BPD-01-
04, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Agency Web site: http://www.publicdebt.treas.gov.
     E-mail: [email protected].
     Fax: 304-480-8601.
     Mail: Elizabeth Spears, Senior Attorney, Office of the 
Chief Counsel, Bureau of the Public Debt, Department of the Treasury, 
P.O. Box 1328, Parkersburg, WV 26106-1328.
     Hand Delivery/Courier: Elizabeth Spears, Senior Attorney, 
Office of the Chief Counsel, Bureau of the Public Debt, Department of 
the Treasury, 200 3rd St., G-15, Parkersburg, WV 26106-1328.
    Instructions: All submissions received must include ``Bureau of the 
Public Debt,'' and Docket Number BPD-01-04. All comments received will 
be posted without change to http://www.publicdebt.treas.gov.

FOR FURTHER INFORMATION CONTACT: Edward Gronseth, Deputy Chief Counsel, 
or Elizabeth Spears, Senior Attorney, Office of the Chief Counsel, 
Bureau of the Public Debt, 200 3rd St., G-15, Parkersburg, WV 26106-
1328, (304) 480-8692, [email protected].

SUPPLEMENTARY INFORMATION: 

I. Introduction

    Treasury is improving the method by which holders of State and 
Local Government Series (SLGS) securities will gain access to SLGSafe. 
We will replace the current Public Key Infrastructure (PKI) technology, 
which requires you to load a digital certificate on your personal 
computer, with log-on information, such as a Personal Identification 
Number (PIN) and password, which enables remote access to your SLGSafe 
portfolio regardless of your physical location.
    In the May 5, 2004, Quarterly Refunding Statement, Treasury 
announced proposed regulatory changes pertaining to trading activities. 
These changes will be published in a proposed rule that will be issued 
at a later date.
    This interim rule revises the following provisions:
    Section 344.3(c)(2)--Because digital certificates will no longer be 
issued, we deleted the reference to ``Public Debt's Certificate 
Practice Statement.''
    Section 344.3(c)(3), (e)--We changed the name of the ``SLGSafe 
Internet User's Guide'' to the ``SLGSafe User's Manual.''
    Section 344.3(f)(2), (3)--Under the current regulations, before an 
organization can obtain access to SLGSafe, a SLGSafe Access 
Administrator, and a backup administrator, must be appointed. The 
SLGSafe Application for Internet Access, PD F 4144-5 E, explains that 
the administrators are responsible for designating users, updating user 
information, renewing digital certificates, and forwarding user 
acknowledgements to us. Because we are replacing digital certificates 
with log-on information, it will no longer be necessary for 
organizations to appoint administrators. Each organization must ensure 
that only authorized users apply for SLGSafe access.
    Section 344.3(g)(1)--Currently, access to SLGSafe is obtained 
through digital certificates. We are replacing digital certificates 
with log-on information.
    Section 344.3(h)(1)--Currently, users sign an acknowledgement 
concerning digital certificate use. We are replacing digital 
certificates with log-on information. Users will be required to submit 
a signed acknowledgement concerning proper use of log-ons and security 
requirements.
    Section 344.3(h)(4)--We deleted references to Public Debt's 
Certificate Practice Statement and accompanying Treasury Policy 
regarding digital certificates.

II. Procedural Requirements

A. Executive Order 12866

    This rule is not a significant regulatory action as defined in E.O. 
12866, dated September 30, 1993, and is not a major rule under 5 U.S.C. 
804. Therefore, a regulatory assessment of anticipated benefits, costs, 
and regulatory alternatives is not required.

B. Determination To Issue an Interim Final Rule

    Because this rule relates to matters of public contract and 
procedures for United States securities, notice and public procedures 
are not required by 5 U.S.C. 553. In addition, Treasury finds that 
there is good cause why notice and public procedures are unnecessary 
because this rule merely updates the method of accessing SLGSafe in a 
manner that reduces burdens of using SLGSafe and imposes no substantive 
requirements on users of SLGSafe. The electronic subscription feature 
was announced in a Proposed Rule published in the Federal Register 61 
FR 39228, 39230, Jul. 26, 1996. The SLGSafe system became operational 
under an interim rule announced in the Federal Register 65 FR 55399, 
Sept. 13, 2000.

C. Regulatory Flexibility Act

    This rule relates to matters of public contract and procedures for 
United States securities. The notice and public procedures requirements 
of the Administrative Procedure Act, 5 U.S.C. 553(a)(2), are 
inapplicable. Since a notice of proposed rulemaking is not required, 
the provisions of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., 
do not apply.

D. Paperwork Reduction Act

    This rule does not alter the collection of information previously 
reviewed and approved by the Office of Management and Budget, under the 
requirements of the Paperwork Reduction Act, 44 U.S.C. 3507, under 
control number 1535-0091.

List of Subjects in 31 CFR Part 344

    Bonds, Government Securities, Securities.


0
For the reasons set forth in the preamble, we amend 31 CFR part 344 as 
follows:

PART 344--U.S. TREASURY SECURITIES--STATE AND LOCAL GOVERNMENT 
SERIES

0
1. The authority citation for part 344 is revised to read as follows:

    Authority: 26 U.S.C. 141 note; 31 U.S.C. 3102, 3103, 3104, and 
3121.

0
2. Amend Sec.  344.3 by revising paragraphs (c), (e), (f), (g)(1), 
(h)(1), and (h)(4), to read as follows:

[[Page 41757]]

Sec.  344.3  What special provisions apply to SLGSafe Internet 
transactions?

* * * * *
    (c) What special terms and conditions apply to SLGSafe? The 
following terms and conditions, which are downloadable from Public 
Debt's website and which may change from time to time, apply to SLGSafe 
transctions:
    (1) SLGSafe Application for Internet Access and SLGSafe User 
Acknowledgment; and
    (2) SLGSafe User's Manual.
* * * * *
    (e) What SLGSafe functions can I perform in each role? The role 
that you play in SLGSafe shall determine the functions that you will be 
allowed to perform. An explanation of the roles and functions is 
outlined in the SLGSafe User's Manual.
    (f) How do I apply for access to SLGSafe? You must apply for 
SLGSafe access before performing any Internet functions. To apply for 
SLGSafe Internet access, you must:
    (1) Submit to Public Debt a completed form, PD F 4144-5, SLGSafe 
Application for Internet Access;
    (2) Certify that the information on the SLGSafe Application is 
accurate;
    (3) Certify that you are authorized to perform the requested roles; 
and
    (4) Await our written approval of your SLGSafe Application before 
you, or anyone acting on your behalf, uses an electronic connection to 
access any of our services or to send any electronic messages.
    (g) * * *
    (1) Issue log-on information to each user that is authorized on 
your approved application; and
* * * * *
    (h) * * *
    (1) Sign, and send to Public Debt, a User Acknowledgement regarding 
the use of log-on information;
* * * * *
    (4) Agree that we may act on any electronic message to the same 
extent as if we had received a written instruction bearing the 
signature of your duly authorized officer;
* * * * *

    Dated: July 2, 2004.
Donald V. Hammond,
Fiscal Assistant Secretary.
[FR Doc. 04-15607 Filed 7-7-04; 3:17pm]
BILLING CODE 4810-39-P