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Federal Register / Vol. 71, No.

200 / Tuesday, October 17, 2006 / Rules and Regulations 60847

Foam, IBR approved for for the Installation of Standpipe and updating obsolete contact information
§ 1915.507(d)(3). Hose Systems (incorporated by and references in the regulation.
(xiv) NFPA 17–2002, Standard for Dry reference, see § 1915.5);
Chemical Extinguishing Systems, IBR DATES: This rule is effective on October
(2) Automatic sprinkler systems
approved for § 1915.507(d)(4). 17, 2006.
according to NFPA 25–2002 Standard
(xv) NFPA 12–2005, Standard on for the Inspection, Testing, and FOR FURTHER INFORMATION CONTACT: Rose
Carbon Dioxide Extinguishing Systems, Maintenance of Water-based Fire M. Miller, Manager, Surety Bond
IBR approved for § 1915.507(d)(5). Protection Systems, (incorporated by Branch, at 202–874–6850 or
(xvi) NFPA 12A–2004, Standard on reference, see § 1915.5), and either (i) rose.miller@fms.treas.gov; or William
Halon 1301 Fire Extinguishing Systems, NFPA 13–2002 Standard for the Erle, Senior Counsel, at 202–874–6680
IBR approved for § 1915.507(d)(5). Installation of Sprinkler Systems or william.erle@fms.treas.gov.
(xvii) NFPA 2001–2004, Standard on (incorporated by reference, see
Clean Agent Fire Extinguishing SUPPLEMENTARY INFORMATION:
§ 1915.5), or (ii) NFPA 750–2003
Systems, IBR approved for Standard on Water Mist Fire Protection Background
§ 1915.507(d)(5). Systems (incorporated by reference, see
(xviii) NFPA 1403–2002, Standard on § 1915.5); 31 U.S.C. 9306 was amended
Live Fire Training Evolutions, IBR (3) Fixed extinguishing systems that November 29, 1999 to allow a surety
approved for § 1915.508(d)(8). use water or foam as the extinguishing corporation to appoint a State official as
■ 3. Amend § 1915.505 to revise its process agent. This means that surety
agent according to NFPA 15–2001
paragraph (e)(3)(v) to read as follows: corporations conducting business in
Standard for Water Spray Fixed Systems
§ 1915.505 Fire response. for Fire Protection (incorporated by more than one judicial district in a state
reference, see § 1915.5) and NFPA 11– can appoint a State official to receive
* * * * * service of process on the corporation,
(e) * * * 2005 Standard for Low-, Medium-, and
(3) * * * High-Expansion Foam (incorporated by thereby saving surety corporations from
(v) Provide only SCBA that meet the reference, see § 1915.5); having to appoint an agent in each
requirements of NFPA 1981–2002 judicial district of that State. Prior to the
* * * * *
Standard on Open-Circuit Self- amendment, a surety did not have the
(5) Fixed extinguishing systems using
Contained Breathing Apparatus for Fire option of appointing a State official as
gas as the extinguishing agent according
and Emergency Services (incorporated its process agent to satisfy the service of
to NFPA 12–2005 Standard on Carbon
by reference, see § 1915.5); and process requirement. This revised rule
Dioxide Extinguishing Systems
makes the regulation at 31 CFR Part 224
* * * * * (incorporated by reference, see
consistent with 31 U.S.C. 9306 by
■ 4. Amend § 1915.507 to revise § 1915.5); NFPA 12A–2004 Standard on
providing for the appointment of State
paragraphs (b)(1), (b)(2), (c)(6), (d)(1), Halon 1301 Fire Extinguishing Systems
officials as process agents.
(d)(2), (d)(3), and (d)(5) to read as (incorporated by reference, see
follows: § 1915.5); and NFPA 2001–2004 An additional change relates to the
Standard on Clean Agent Fire requirement currently found in 31 CFR
§ 1915.507 Land-side fire protection 224.2(a)(3) which requires that an agent
Extinguishing Systems (incorporated by
system. be appointed for service of process ‘‘in
reference, see § 1915.5).
* * * * * the District of Columbia where the bond
(b) * * * [FR Doc. E6–17124 Filed 10–16–06; 8:45 am]
is returnable and filed.’’ This
(1) The employer must select, install, BILLING CODE 4510–26–P
requirement applies to all surety
inspect, maintain, and test all portable corporations whether or not the
fire extinguishers according to NFPA corporation contemplates the writing of
10–2002 Standard for Portable Fire DEPARTMENT OF THE TREASURY bonds in favor of the United States to be
Extinguishers (incorporated by undertaken within the District of
reference, see § 1915.5). Fiscal Service Columbia. Requiring companies to
(2) The employer is permitted to use appoint an agent in the District of
Class II or Class III hose systems, in 31 CFR Part 224 Columbia, when they are not
accordance with NFPA 10–2002 RIN–1510–AB08 incorporated in the District of Columbia,
(incorporated by reference, see and do not write bonds in the District
§ 1915.5), as portable fire extinguishers Federal Process Agents of Surety of Columbia, is an unnecessary financial
if the employer selects, installs, Corporations burden on the companies. FMS can see
inspects, maintains, and tests those no benefit to the Federal government in
systems according to the specific AGENCY: Financial Management Service,
Fiscal Service, Treasury. maintaining this requirement since, as a
recommendations in NFPA 14–2003 matter of practice, Federal bonds are not
Standard for the Installation of ACTION: Final rule.
necessarily returnable and filed in the
Standpipe and Hose Systems District of Columbia. The revised rule
(incorporated by reference, see SUMMARY: The Financial Management
Service (FMS) is revising its regulation eliminates this requirement.
§ 1915.5).
(c) * * * governing the appointment of Federal The sample power of attorney form
(6) Select, install, inspect, maintain, process agents of surety corporations to currently found in 31 CFR 224.4 is
and test all automatic fire detection allow for the appointment of a state replaced with a reference to the Surety
systems and emergency alarms official as a process agent. We are also Bond Branch Web page. Moving the
according to NFPA 72–2002 National revising the regulation by removing the form to the Web page will allow the
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Fire Alarm Code (incorporated by requirement that all surety corporations sample power of attorney form to be
reference, see § 1915.5) appoint a process agent in the District updated more easily. Also, it will
(d) * * * of Columbia, regardless of whether the provide surety corporations with easy
(1) Standpipe and hose systems surety corporation provides bonds in access to an electronic version of the
according to NFPA 14–2003 Standard the District of Columbia. Finally, we are form.

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60848 Federal Register / Vol. 71, No. 200 / Tuesday, October 17, 2006 / Rules and Regulations

Finally, 31 CFR 224.6 currently states 224.5 Who may a surety corporation District Court at the main office in each
that a listing of the divisional offices of appoint to be a process agent? judicial district with the required
the court in each judicial district may be 224.6 Where can I find a sample power of number of authenticated copies of the
attorney form?
obtained from the Surety Bond Branch, 224.7 Where can I find a list of United
power of attorney for each divisional
Financial Management Service, U.S. States district court offices? office of the court within that judicial
Department of the Treasury. This 224.8 When must a surety corporation district.
information is available directly from appoint a new process agent?
the U.S. Courts. Therefore, the § 224.6 Where can I find a sample power
Authority: 31 U.S.C. 9306 and 9307. of attorney form?
regulation is revised to provide the
contact information for the U.S. Courts. § 224.1 What does this part cover? The Surety Bond Branch provides a
This part provides guidance on when sample form on its Web page located at:
Regulatory Analyses http://www.fms.treas.gov/c570. While
a surety corporation must appoint a
Administrative Procedure Act. We did service of process agent and how the use of the sample form is not required,
not publish a Notice of Proposed surety corporation complies with this any power of attorney provided should
Rulemaking (NPRM) for this regulation. requirement. be substantially the same as the sample
Under 5 U.S.C. 553(b)(B), a rule is form.
exempt from notice and comment § 224.2 Definitions.
§ 224.7 Where can I find a list of United
rulemaking requirements if the agency For purposes of this regulation: States district court offices?
finds that notice and public comment (a) Principal means the person or
are unnecessary or contrary to the entity required to provide a surety bond. A list of the divisional offices of the
public interest. This rule reflects (b) Process agent means a resident court in each judicial district may be
provisions that are already in effect as agent for service of process. obtained from the Federal Judiciary,
a matter of law. The changes will have (c) State means a State, the District of U.S. Courts Web page at http://
no substantive effect on the public; Columbia, or a territory or possession of www.uscourts.gov, or by mail by writing
therefore, it is unnecessary to publish an the United States. to: Office of Public Affairs,
NPRM. Likewise, for the same reasons a Administrative Office of the U.S. Courts,
§ 224.3 When may a surety corporation Washington, DC 20544.
delayed effective date is not required. provide a bond without appointing a
Clarity of Regulations. Executive process agent? § 224.8 When must a surety corporation
Order 12866 requires each agency to A surety corporation may provide a appoint a new process agent?
write regulations that are easy to bond without appointing a process The surety corporation must
understand. We invite comment on how agent when the State where the bond is immediately appoint a new process
to make this rule clearer. For example, filed, the State where the principal agent whenever the authority of a
you may wish to discuss: (1) Whether resides, and the State where the surety process agent is terminated by reason of
we have organized the material to suit corporation is incorporated are the revocation, disability, removal from the
your needs; (2) whether the same. district, or any other cause.
requirements of the rule are clear; or (3)
whether there is something else we § 224.4 When must a surety corporation Dated: October 11, 2006.
could do to make this rule easier to appoint a process agent? Kenneth R. Papaj,
understand. A surety corporation must appoint a Commissioner.
Executive Order 12866. FMS has process agent when either the State [FR Doc. E6–17225 Filed 10–16–06; 8:45 am]
determined that this regulation is not a where the bond is filed or the State BILLING CODE 4810–35–P
significant action as defined in where the principal resides is different
Executive Order 12866. Therefore, a from the State where the surety
regulatory assessment is not required. corporation is incorporated. In such a DEPARTMENT OF THE TREASURY
Regulatory Flexibility Act. Because no case, the surety corporation must
notice of proposed rulemaking is appoint a process agent in each such Fiscal Service
required, the provisions of the State that is different from the State
Regulatory Flexibility Act (5 U.S.C. 601 where the surety is incorporated. 31 CFR Part 256
et seq.) do not apply.
§ 224.5 Who may a surety corporation
appoint to be a process agent? RIN 1510–AA52
List of Subjects in 31 CFR Part 224 A surety corporation may appoint Obtaining Payments From the
Bonding, Insurance, Insurance either of the following as process Judgment Fund and Under Private
companies, Sureties, Surety bonds, agent—(a) An official of the State who Relief Bills
Process agents. is authorized or appointed under the
■ For the reasons set forth in the law of that jurisdiction to receive AGENCY: Financial Management Service,
preamble, 31 CFR part 224 is revised as service of process on the surety Fiscal Service, Treasury.
follows: corporation; or ACTION: Final rule.
(b) An individual who resides in the
PART 224—FEDERAL PROCESS jurisdiction of the district court for the SUMMARY: The Financial Management
AGENTS OF SURETY CORPORATIONS district in which a surety bond is filed Service (FMS) is revising 31 CFR part
and who is appointed by the surety 256, governing how Federal government
Sec. corporation by means of a power of agencies (agencies) obtain payments
224.1 What does this part cover? attorney. A certified copy of the power from the Judgment Fund, 31 U.S.C.
224.2 Definitions.
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224.3 When may a surety corporation


of attorney must be filed with the clerk 1304, and how individuals obtain
provide a bond without appointing a of the district court for the district in payments under private relief acts. The
process agent? which a surety bond is to be provided. revision reflects current rules and
224.4 When must a surety corporation In addition, the surety corporation must procedures; it does not include any
appoint a process agent? provide the clerk of the United States substantive changes.

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