[Federal Register Volume 75, Number 165 (Thursday, August 26, 2010)]
[Rules and Regulations]
[Pages 52459-52461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-21197]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Parts 317, 351, 353, and 359


Regulations Governing Agencies for Issue of United States Savings 
Bonds; Offering of United States Savings Bonds, Series EE; Regulations 
Governing Definitive United States Savings Bonds, Series EE and HH; 
Offering of United States Savings Bonds, Series I

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

ACTION: Final rule.

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SUMMARY: Treasury is discontinuing the issuance of definitive (paper) 
savings bonds through payroll savings plans.

DATES: Effective Date: The amendments to 31 CFR 351.47 and 31 CFR 
359.35 are effective on October 1, 2010; all other amendments are 
effective on January 1, 2011.

ADDRESSES: You can download this Final Rule at the following Internet 
addresses: http://www.publicdebt.treas.gov, http://www.gpo.gov, or 
http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Elisha Whipkey, Director, Division of 
Program Administration, Office of Retail Securities, Bureau of the 
Public Debt, at (304) 480-6319 or [email protected].
    Ann Fowler, Attorney-Adviser, Susan Sharp, Attorney-Adviser, Dean 
Adams, Assistant Chief Counsel, Edward Gronseth, Deputy Chief Counsel, 
Office of the Chief Counsel, Bureau of the

[[Page 52460]]

Public Debt, at (304) 480-8692 or [email protected].

SUPPLEMENTARY INFORMATION: United States Savings Bonds are non-
marketable Treasury securities which have been sold continuously since 
March 1935. Savings bonds were introduced as a means of encouraging 
broad public participation in government financing by making Treasury 
securities available in small denominations specially tailored to the 
small investor. Today, savings bonds continue to be an important 
savings and investment tool for individuals, and Treasury is committed 
to offering savings bonds to the public as efficiently as possible.
    In order to reduce costs, to increase the reliability and security 
of transactions by moving from paper to electronics, and to minimize 
the Treasury's impact on the environment, Treasury is discontinuing the 
issuance of definitive (paper) savings bonds through payroll savings 
plans. Treasury will eliminate the option to purchase paper savings 
bonds through payroll deductions for United States government employees 
on October 1, 2010, and for all other employees on January 1, 2011. 
This policy covers only paper savings bonds purchased through payroll 
sales; individuals will still be able to purchase paper savings bonds 
at financial institutions for themselves and as gifts. Payroll savers 
will be encouraged to continue their purchases through 
TreasuryDirect[supreg], a web-based system that allows investors to buy 
and hold electronic savings bonds. Transitioning employees to 
electronic payroll purchases saves employers administrative costs and 
allows employees to manage their own savings bond accounts.

Procedural Requirements

    Executive Order 12866. This rule is not a significant regulatory 
action pursuant to Executive Order 12866.
    Administrative Procedure Act (APA). Because this rule relates to 
United States securities, which are contracts between Treasury and the 
owner of the security, this rule falls within the contract exception to 
the APA, 5 U.S.C. 553(a)(2). As a result, the notice, public comment, 
and delayed effective date provisions of the APA are inapplicable to 
this rule.
    Regulatory Flexibility Act. The provisions of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., do not apply to this rule 
because, pursuant to 5 U.S.C. 553(a)(2), it is not required to be 
issued with notice and opportunity for public comment.
    Paperwork Reduction Act (PRA). There is no new collection of 
information contained in this final rule that would be subject to the 
PRA, 44 U.S.C. 3501 et seq. Under the PRA, an agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information unless it displays a valid Office of Management and Budget 
control number. The Office of Management and Budget already has 
approved all collections of information in 31 CFR Part 353 (OMB No. 
1535-0009, 1535-0023, 1535-0063) and Part 359 (OMB No. 1535-0111).
    Congressional Review Act (CRA). This rule is not a major rule 
pursuant to the CRA, 5 U.S.C. 801 et seq., because it is a minor 
amendment that is expected to decrease costs for taxpayers and for 
employers; therefore, this rule is not expected to lead to any of the 
results listed in 5 U.S.C. 804(2). This rule may take immediate effect 
after we submit a copy of it to Congress and the Comptroller General.

List of Subjects

31 CFR Part 317

    Bonds, Electronic funds transfers, Federal Reserve System, 
Government securities, Securities.

31 CFR Part 351

    Bonds, Federal Reserve System, Government securities.

31 CFR Part 353

    Banks and banking, Government securities, Federal Reserve system.

31 CFR Part 359

    Bonds, Federal Reserve system, Government securities, Securities.

0
Accordingly, for the reasons set out in the preamble, 31 CFR Chapter 
II, Subchapter B, is amended as follows:

PART 317--REGULATIONS GOVERNING AGENCIES FOR ISSUE OF UNITED STATES 
SAVINGS BONDS.

0
1. Revise the authority citation for part 317 to read as follows:

    Authority: 5 U.S.C. 301; 12 U.S.C. 391; 12 U.S.C. 1767; and 31 
U.S.C. 3105.


0
2. Amend Sec.  317.1 by revising paragraph (c)(2) to read as follows:


Sec.  317.1  Definitions.

* * * * *
    (c) * * *
    (2) Each organization that is authorized to inscribe bonds sold 
over-the-counter.
* * * * *


Sec.  317.2  [Amended]

0
3. Amend Sec.  317.2 by removing paragraph (c), and redesignating 
paragraph (d) as paragraph (c).

0
4. Amend Sec.  317.3(a) by revising the second sentence to read as 
follows:


Sec.  317.3  Procedure for qualifying and serving as issuing agent.

    (a) * * * However, if an organization seeks qualification under 
Sec.  317.2(c), it shall make application directly to the Bureau of the 
Public Debt for approval by the Commissioner of the Bureau of the 
Public Debt. * * *
* * * * *

0
5. Amend Sec.  317.7 by revising the first sentence to read as follows:


Sec.  317.7  Obtaining and accounting for bond stock.

    An issuing agent that is authorized to inscribe bonds sold over-
the-counter may obtain bond stock from the designated Federal Reserve 
Bank. * * *


Sec.  317.8  [Amended]

0
6. In Sec.  317.8, remove the Appendix to Sec.  317.8.

PART 351--OFFERING OF UNITED STATES SAVINGS BONDS, SERIES EE

0
7. The authority citation for part 351 continues to read as follows:

    Authority:  5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105.


Sec.  351.46  [Amended]

0
8. Amend Sec.  351.46 by removing footnote 2.
0
9. Revise Sec.  351.47 to read as follows:


Sec.  351.47  May I purchase definitive Series EE savings bonds through 
a payroll savings plan?

    Treasury discontinued the issuance of definitive Series EE savings 
bonds through a payroll savings plan:
    (a) Effective October 1, 2010, for United States government 
employees, and
    (b) Effective January 1, 2011, for all other employees.


Sec.  351.70  [Amended]

0
10. Amend Sec.  351.70 by redesignating footnote 3 as footnote 2.

PART 353--REGULATIONS GOVERNING DEFINITIVE UNITED STATES SAVINGS 
BONDS, SERIES EE AND HH

0
11. The authority citation for part 353 continues to read as follows:

    Authority:  5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105, 3125.


0
12. Amend Sec.  353.6 by:

[[Page 52461]]

0
a. Redesignating paragraph (d) as paragraph (e);
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b. Redesignating paragraph (c) as paragraph (d);
0
c. Redesignating paragraph (b)(4) as paragraph (c) and revising it to 
read as follows:


Sec.  353.6  Restrictions on registration.

* * * * *
    (c) Nonresident aliens. A nonresident alien may be designated co-
owner or beneficiary or, on authorized reissue, owner, unless the 
nonresident alien is a resident of an area with respect to which the 
Department of the Treasury restricts or regulates the delivery of 
checks drawn against funds of the United States or its agencies or 
instrumentalities. See Department of the Treasury Circular No. 655, 
current revision (31 CFR part 211). Registration is not permitted in 
any form which includes the name of any alien who is a resident of any 
restricted area.
* * * * *

PART 359--OFFERING OF UNITED STATES SAVINGS BONDS, SERIES I

0
13. The authority citation for part 359 continues to read as follows:

    Authority:  5 U.S.C. 301; 12 U.S.C. 391; 31 U.S.C. 3105.


Sec.  359.34  [Amended]

0
14. Amend Sec.  359.34 by removing footnote 4.

0
15. Revise Sec.  359.35 to read as follows:


Sec.  359.35  May I purchase definitive Series I savings bonds through 
a payroll savings plan?

    Treasury discontinued the issuance of definitive Series I savings 
bonds through a payroll savings plan:
    (a) Effective October 1, 2010, for United States government 
employees, and
    (b) Effective January 1, 2011, for all other employees.


Sec.  359.55  [Amended]

0
16. Amend Sec.  359.55 by redesignating footnote 5 as footnote 4.

Richard L. Gregg,
Fiscal Assistant Secretary.
[FR Doc. 2010-21197 Filed 8-25-10; 8:45 am]
BILLING CODE 4810-39-P