Unknown. Final rule

5,818 words·~26 min read·/register/2004/05/26/04-11844

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2004-05-26.xml --- 69 102 Wednesday, May 26, 2004 Contents Administration Administration on Aging See Aging Administration AID Agency for International Development NOTICES Agency information collection activities; proposals, submissions, and approvals, 29918 04-11870 Aging Aging Administration NOTICES Grants and cooperative agreements; availability, etc.: Pension Counseling and Information Program, 29949-29950 04-11823 Agricultural Agricultural Marketing Service PROPOSED RULES Research and promotion programs:

Organic producers and marketers; exemption from assessments for research and promotion activities, 29907 04-11878 Agriculture Agriculture Department See Agricultural Marketing Service Alcohol Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 29978 04-11767 Arts Arts and Humanities, National Foundation See National Foundation on the Arts and the Humanities Census Census Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 29919-29920 04-11824 Centers Centers for Disease Control and Prevention NOTICES Grants and cooperative agreements; availability, etc.:

Spina bifida information and resource development programs, 29950-29953 04-11871 West Nile virus infection effect on human pregnancy outcomes, 29953-29957 04-11872 Meetings: Healthcare Infection Control Practices Advisory Committee; correction, 29958 04-11874 Tuberculosis Elimination Advisory Council, 29958 04-11873 Centers Centers for Medicare & Medicaid Services NOTICES Privacy Act: Computer matching programs, 29958-29959 04-11937 Coast Guard Coast Guard RULES Drawbridge operations:

Texas, 29864-29865 04-11893 Commerce Commerce Department See Census Bureau See Industry and Security Bureau See International Trade Administration See National Oceanic and Atmospheric Administration See Patent and Trademark Office See Technology Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 04-11826 29918-29919 04-11908 04-11910 Corporation Corporation for National and Community Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 29930 04-11868 Defense Defense Department See Navy Department Drug Drug Enforcement Administration NOTICES *Applications, hearings, determinations, etc.:* Boehringer Ingelheim Chemicals, Inc., 29978-29979 04-11818 04-11820 Varian, Inc., 29979 04-11819 Education Education Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 29932-29933 04-11866 04-11867 Special education and rehabilitative services:

Special demonstration programs; positive psychology model demonstration projects, 30137-30140 04-11928 Employee Employee Benefits Security Administration RULES Group health plans; access, portability, and renewability requirements: Health care continuation coverage, 30083-30112 04-11796 NOTICES Meetings: Employee Welfare and Pension Benefit Plans Advisory Council, 29979-29980 04-11821 Energy Energy Department See Federal Energy Regulatory Commission NOTICES Electricity export and import authorizations, permits, etc.:

UBS AG, London Branch, 29933-29934 04-11905 Environmental statements; availability, etc.: Baja California Power, Inc. and Sempra Energy Resources Transmission Lines; hearings, 29934 04-11904 EPA Environmental Protection Agency RULES Air quality implementation plans; approval and promulgation; various States: California, 29880-29882, 30005-30036 04-11667 04-11769 North Carolina, 30037-30040 04-11768 Pesticides; tolerances in food, animal feeds, and raw agricultural commodities:

Imidacloprid, 30041-30081 04-11779 04-11780 Isoxadifen-ethyl, 29882-29890 04-11561 Ultramarine blue, 29890-29894 04-11672 PROPOSED RULES Air quality implementation plans; approval and promulgation; various States: California, 29913 04-11770 NOTICES Meetings: Acute Exposure Guideline Levels for Hazardous Substances National Advisory Committee, 29939-29940 04-11671 Pesticide, food, and feed additive petitions: K-I Chemical U.S.A., Inc., 29940-29945 04-11562 Reports and guidance documents; availability, etc.:

Pesticides— MGK Repellent 326; registration eligibility decision, 29945-29947 04-11778 Executive Executive Office of the President See Presidential Documents Farm Farm Credit Administration RULES Farm credit system: Loan policies and operations, etc.— Other financial institutions; funding access, 29852-29863 04-11849 FAA Federal Aviation Administration PROPOSED RULES Airworthiness directives: Raytheon, 29910-29912 04-11877 Airworthiness standards: Transport category airplanes— Flight crew alerting, 29910 04-11896 NOTICES Aeronautical land-use assurance; waivers:

Shenandoah Valley Regional Airport, VA, 30001-30002 04-11897 04-11898 FCC Federal Communications Commission RULES Common carrier services: Satellite communications— International Bureau Filing System; electronic filing requirements, 29894-29903 04-11790 PROPOSED RULES Common carrier services: Presubscribed interexchange carrier charges, 29913-29917 04-11657 Radio stations; table of assignments: California, 29917 04-11919 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation filings, 29937-29938 E4-1217 Meetings:

KeySpan LNG, L.P.; Providence, RI; site visit, 29938 E4-1216 Off-the-record communications, 29938-29939 E4-1213 *Applications, hearings, determinations, etc.:* Ameren Services Co., 29935 E4-1212 Dominion Transmission, Inc., 29935 E4-1211 National Fuel Gas Supply Corp., 29936 E4-1214 Questar Pipeline Co., 29936 E4-1210 Tennessee Gas Pipeline Co., 29936-29937 E4-1209 Trailblazer Pipeline Co., 29937 E4-1215 Federal Highway Federal Highway Administration NOTICES Environmental statements; notice of intent:

Atchison County, KA and Buchanan County, MO, 30002 04-11822 FMC Federal Maritime Commission NOTICES Ocean transportation intermediary licenses: Best International Shipping, Inc., et al., 29947 04-11920 CTSI Logistics, Inc., et al., 29947-29948 04-11922 IFF, Inc., et al., 29948 04-11921 Federal Reserve Federal Reserve System NOTICES Banks and bank holding companies: Formations, acquisitions, and mergers, 29948-29949 04-11846 Permissible nonbanking activities, 29949 04-11845 Federal Retirement Federal Retirement Thrift Investment Board RULES Thrift Savings Plan:

Funds withdrawal; court orders and legal processes, and loan program, 29849-29852 04-11844 Food Food and Drug Administration PROPOSED RULES Public health security and bioterrorism: Food importation; sampling services and private laboratories requirements Correction, 29912 04-11827 NOTICES Reports and guidance documents; availability, etc.: BA and BE testing samples; handling and retention, 29959-29960 04-11828 Geological Geological Survey NOTICES Patent licenses; non-exclusive, exclusive, or partially exclusive:

Sequoia Scientific, Inc., 29970 04-11830 Health Health and Human Services Department See Aging Administration See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration Health Health Resources and Services Administration NOTICES Meetings: Maternal and Child Health Research Grants Review Committee, 29960 04-11829 Homeland Homeland Security Department See Coast Guard See Transportation Security Administration Housing Housing and Urban Development Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 29969-29970 04-11847 Industry Industry and Security Bureau NOTICES Agency information collection activities; proposals, submissions, and approvals, 29920 04-11825 Interior Interior Department See Geological Survey See Reclamation Bureau See Surface Mining Reclamation and Enforcement Office International International Trade Administration NOTICES Antidumping:

Brake rotors from— China, 29920-29921 04-11916 Freshwater crawfish tail meat from— China, 29921-29922 04-11917 Glycine from— China, 29922 04-11914 Outboard engines from— Japan, 29922-29923 04-11915 Stainless steel wire rods from— India, 29923-29925 04-11913 International International Trade Commission NOTICES Import investigations: Automotive measuring devices, products containing same, and bezels, 29971 04-11863 Home vacuum packaging products, 29971-29972 04-11864 Power amplifier chips, broadband turner chips, transceiver chips, and products containing same, 29972 04-11865 Reports and guidance documents; availability, etc.:

Administrative Protective Orders; summary of commission practice, 29972-29978 04-11862 Justice Justice Department See Alcohol, Tobacco, Firearms, and Explosives Bureau See Drug Enforcement Administration Labor Labor Department See Employee Benefits Security Administration NOTICES Organization, functions, and authority delegations: Internal equal employment opportunity programs, 30133-30135 04-11869 National Credit National Credit Union Administration PROPOSED RULES Credit unions:

Health savings accounts; Federal credit unions acting as trustees and custodians, 29907-29910 04-11903 National Foundation National Foundation on the Arts and the Humanities NOTICES Meetings: Combined Arts Advisory Panel, 29980 04-11932 Fellowships Advisory Panel, 29980 04-11933 Leadership Initiatives Advisory Panel, 29980-29981 04-11934 04-11935 National National Institute for Literacy NOTICES Meetings: Advisory Board, 29981 04-11931 NIH National Institutes of Health NOTICES Meetings:

National Eye Institute, 29960-29961 04-11836 04-11837 National Heart, Lung, and Blood Institute, 29961 04-11831 National Institute of Allergy and Infectious Diseases, 29963-29964 04-11839 National Institute of Nursing Research, 29961 04-11832 National Institute on Aging, 29962-29963 04-11835 National Institute on Alcohol Abuse and Alcoholism, 29963 04-11838 National Institute on Drug Abuse, 29961-29962 04-11833 04-11834 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management:

West Coast States and Western Pacific fisheries— Pacific whiting, 29905-29906 04-11924 NOTICES Agency information collection activities; proposals, submissions, and approvals, 04-11909 29926-29927 04-11911 Reports and guidance documents; availability, etc.: Atlantic highly migratory species (Atlantic tunas, swordfish, and sharks) and Atlantic billfish fishery management plans; amendments; meetings, 29927 04-11912 National Science National Science Foundation NOTICES Meetings: Business and Operations Advisory Committee, 29981-29982 04-11888 National Transportation National Transportation Safety Board NOTICES Meetings;

Sunshine Act, 29982 04-11968 Navy Navy Department NOTICES Environmental statements; record of decision: Naval Air Weapons Station China Lake, CA, 29931-29932 04-11906 Nuclear Nuclear Regulatory Commission NOTICES *Applications, hearings, determinations, etc.:* Duke Energy Corp., 29982-29983 04-11853 Nuclear Management Co., LLC, 29983-29984 04-11854 Overseas Overseas Private Investment Corporation NOTICES Agency information collection activities; proposals, submissions, and approvals, 04-11850 29984-29985 04-11851 Meetings;

Sunshine Act, 29985 04-12023 Patent Patent and Trademark Office RULES Practice and procedure: Power of attorney practice clarification and assignment rules revisions, 29865-29880 04-11761 Presidential Presidential Documents PROCLAMATIONS *Special observances:* National Maritime Day (Proc. 7789), 29845-29846 04-12071 National Safe Boating Week (Proc. 7790), 29847-29848 04-12072 Reclamation Reclamation Bureau NOTICES Environmental statements; availability, etc.: Platte River Recovery Implementation Program, NE, 29970-29971 04-11938 Research Research and Special Programs Administration RULES Hazardous materials:

Incident reporting requirements and incident report form; revisions; correction, 30113-30132 04-11398 Pipeline safety: Hazardous liquid transportation— Gas transmission pipelines; integrity management in high consequence areas; correction, 29903-29904 04-11789 SEC Securities and Exchange Commission PROPOSED RULES Securities: National market system; joint industry plans; amendments, 30141-30149 04-11879 NOTICES Self-regulatory organizations; proposed rule changes: Chicago Stock Exchange, Inc., 29986-29989 04-11842 04-11880 National Association of Securities Dealers, Inc., 29990-29997 04-11843 04-11884 New York Stock Exchange, Inc., 29998 04-11881 Pacific Exchange, Inc., 29999-30000 04-11883 Philadelphia Stock Exchange, Inc., 30000-30001 04-11882 *Applications, hearings, determinations, etc.:* Atlas Pipeline Partners, L.P., 29985-29986 04-11841 Bentley Pharmaceuticals, Inc., 29986 04-11840 Substance Substance Abuse and Mental Health Services Administration NOTICES Grants and cooperative agreements; availability, etc.:

Mental Health Services Center— Networking and Certifying Suicide Prevention Hotlines, 29964-29968 04-11940 Surface Surface Mining Reclamation and Enforcement Office RULES Permanent program and abandoned mine land reclamation plan submissions: Missouri Correction, 29864 04-11707 Technology Technology Administration NOTICES Business development missions: Northern Ireland and Republic of Ireland; senior-level U.S. technology-sector leaders; applications request, 29928-29930 04-11929 Transportation Transportation Department See Federal Aviation Administration See Federal Highway Administration See Research and Special Programs Administration Transportation Transportation Security Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 29968-29969 04-11891 04-11892 Treasury Treasury Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 30002-30003 04-11899 04-11900 04-11901 Separate Parts In This Issue Part II Environmental Protection Agency, 30005-30036 04-11667 Part III Environmental Protection Agency, 30037-30040 04-11768 Part IV Environmental Protection Agency, 30041-30081 04-11779 04-11780 Part V Labor Department, Employee Benefits Security Administration, 30083-30112 04-11796 Part VI Transportation Department, Research and Special Programs Administration, 30113-30132 04-11398 Part VII Labor Department, 30133-30135 04-11869 Part VIII Education Department, 30137-30140 04-11928 Part IX Securities and Exchange Commission, 30141-30149 04-11879 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 69 102 Wednesday, May 26, 2004 Rules and Regulations FEDERAL RETIREMENT THRIFT INVESTMENT BOARD 5 CFR Parts 1650, 1653, 1655 and 1690 Methods of Withdrawing Funds From the Thrift Savings Plan; Court Orders and Legal Processes Affecting Thrift Savings Plan Accounts;

Loan Program; Thrift Savings Plan AGENCY: Federal Retirement Thrift Investment Board. ACTION: Final rule. SUMMARY: The Executive Director of the Federal Retirement Thrift Investment Board (Board) is amending the court order regulations to remove attorneys from the list of permissible court order payees and to require non-English court orders to be accompanied by a certified English translation. The Executive Director is revising the TSP loan regulations to assess a $50 fee on new TSP loans, restrict a participant to a single general purpose loan at any time, and implement a 60-day waiting period between the date a participant repays a loan and the date the TSP will accept an application for a new loan of the same type.

Finally, the Executive Director is clarifying the regulations pertaining to powers of attorney documents, guardianship orders, and conservatorship orders. DATES: This final rule is effective July 1, 2004. FOR FURTHER INFORMATION CONTACT: Patrick J. Forrest on

(202)942-1661. SUPPLEMENTARY INFORMATION: The Executive Director administers the TSP, which was established by the Federal Employees' Retirement System Act of 1986 (FERSA), Pub. L. 99-335, 100 Stat. 514. The TSP provisions of FERSA have been codified, as amended, largely at 5 U.S.C. 8351 and 8401-79. The TSP is a tax-deferred retirement savings plan for Federal civilian employees and members of the uniformed services. The TSP is similar to cash or deferred arrangements established for private-sector employees under section 401(k) of the Internal Revenue Code (26 U.S.C. 401(k)). On April 7, 2004, the Executive Director published this rule in proposed form in the **Federal Register** (69 FR 18294). The Executive Director requested comments on the proposed rule and received sixty-eight comments on the loan program changes. One comment came from a Federal employees' union, one came from a commercial entity, and the remaining came from TSP participants. The commercial entity asked the Board to clarify proposed sections 1655.21, 1690.12 and 1690.13; they are clarified in the final rule. One of the participants also commented favorably about the proposed changes to the court order, guardianship order, conservatorship order, and power of attorney regulations. Union Comment A Federal employees' union commented that the Federal Employees' Retirement System was designed to place more of the risk and financial burden of saving for retirement on the Federal employees and that, in exchange, those employees receive “direct access” to their retirement savings “to use them as they see fit.” By making it more difficult and expensive for participants to use their own savings, the union continued, the Board is “breaking a promise made to federal employees upon the inception of the Thrift Savings Plan.” The union concluded that the Board is attempting to dictate the financial needs of participants beyond the current reasonable loan restrictions. The union also wrote that with recent low mortgage rates, participants need TSP loans to invest in real property. There can be no question that the money in the TSP belongs to the TSP participants; however, the TSP was created by the Federal Employees' Retirement System Act of 1986 (FERSA) and exists to provide retirement income to participants and their beneficiaries. To encourage the growth of TSP accounts, Congress exempted TSP contributions and earnings from Federal income taxation until they are withdrawn from the TSP. Just as importantly, Congress also protected TSP accounts from dissipation by restricting the ability of anyone, including the participant, to access the money in the TSP. For example, a creditor generally cannot access the money in the participant's account. With respect to participants' access, FERSA only allows in-service withdrawals in cases of financial hardship or, if the participant is still employed, on one occasion after reaching 59 1/2 . *See* 5 U.S.C. 8433(h). Congress also placed restrictions on TSP loans to prevent the dissipation of retirement savings. FERSA requires the TSP to follow the Internal Revenue Code provisions that apply to private sector retirement plan loans. 5 U.S.C. 8433(g)(3). Among other things, those provisions set a maximum dollar amount for loans, require continuous loan payments, require the TSP to charge interest on TSP loans, and limit the length of time over which a loan can be repaid. Initially, FERSA limited the reasons for which a loan could be taken; Congress eliminated this “purpose” test in 1996 in favor of the current rule allowing a general purpose loan. Therefore, it is incorrect to conclude that Congress gave participants “direct access” to the savings in their TSP accounts “to use them as they see fit.” FERSA states only that a participant “may apply to the Board for permission to borrow from [his or her] account.” 5 U.S.C. 8433(g)(1). The Executive Director, therefore, must establish the conditions under which a loan request will be granted. 5 U.S.C. 8433(g)(2). Consistent with the purpose of the TSP, these policies must promote saving for retirement. The Executive Director has determined that the current loan program has allowed many participants to use the TSP as a source of ready cash, which can be detrimental to long-term retirement savings. The Executive Director concluded that it is appropriate to limit access to a TSP loan to reinforce the importance of borrowing from the TSP only as a last resort. With respect to the union's comment that participants need TSP loans to invest in real estate, the Executive Director is not changing the rules applicable to TSP residential loans. Finally, the union commented that a $50 loan fee was inappropriate because it makes the TSP loan program more expensive. The fee will not increase the expense of the loan program, except to the participant who obtains a loan. Currently, every participant pays the costs of administering the loan program, even those who have never taken a loan. However, the Executive Director has determined that the costs of the loan program should, instead, be borne by the approximately 620,000 participants who use the TSP loan program, rather than by the 2.6 million participants who do not. By way of comparison, most private sector retirement plans charge loan fees. Of those that do, more than 70 percent charge a loan fee of $50 or more. Participant Comments Every comment received from a participant addressed the proposed $50 loan fee. Thirty-one participants objected to the proposed fee. Many wrote that the fee is unnecessary because they assume (incorrectly) that either the interest charged on TSP loans pays for the expenses of the loan program, that the Department of Agriculture provides recordkeeping services for the TSP free of charge, or that the Board receives an appropriation from Congress to pay the TSP's administrative expenses. Other participants oppose the fee because they assume the Board will use the extra funds to hide TSP administrative expenses or even that the Board will divert the loan fees for non-TSP purposes. As explained below, none of these assumptions is true. Although the TSP charges each participant interest on his or her loan, the interest collected is deposited into the participant's account, it is not used to pay TSP administrative expenses. 5 CFR 1655.9(c). Furthermore, although the TSP recordkeeper is a component of a Federal agency, its Congressional appropriations do not pay the TSP's administrative expenses. Rather, the Board pays the Department of Agriculture for the cost of its services, including the costs of administering the TSP loan program. The Board does not receive an annual appropriation to pay these expenses, or any other TSP expense; rather, the Board pays all TSP expenses with funds that belong to the TSP participants. 5 U.S.C. 8437(c)(3), 8437(d), and 8439(a)(3). TSP administrative expenses cost each participant approximately .07 percent of his or her account balance each year. Although some participants asked the Board to retain the policy of charging the loan program's expenses to all participants, as explained above, the Executive Director has determined that it is more equitable if the costs of the loan program are borne by the participants who use the program. One participant asked if the TSP would charge the loan fee even if the loan application were rejected. The loan fee is not an application fee; it will cover the costs of processing and servicing the loan. Therefore, as explained in final § 1655.21, the TSP will deduct the loan fee from the loan proceeds only when it issues a loan. One participant also commented that the TSP should only charge the loan fee once because a participant should only pay for “underwriting” approval once. There is no underwriting approval in the TSP loan program. In contrast, thirty-eight participants wrote that the loan fee is appropriate, primarily because it will lower the cost of administering the TSP to those who do not use the loan program. Some participants asked the Board to charge a fee greater than $50 or to base the amount of the fee on the dollar amount of the loan. The Board will not base the loan fee on the dollar amount of the loan because the fee is intended only to pay the administrative costs of a TSP loan, which do not vary with the size of the loan. Several participants also suggested that the TSP eliminate the loan program altogether. The Board will not eliminate the loan program because it is an important benefit that the TSP is required by FERSA to provide. Some participants asked the Board to charge fees for other TSP transactions, such as interfund transfers and in-service withdrawals. The Executive Director does not plan to charge transaction fees in addition to the loan fee; however, decreasing the cost of the program for participants is an important consideration and the Executive Director does review all costs from time to time to determine whether they are appropriate. Forty-three participants commented on the Executive Director's proposal to limit participants to a single general purpose loan; thirty-three objected to the change. Most wrote that the Board should not impose any restrictions on their ability to use their own money. As explained in the answer to the union comment, the Executive Director's proposal is consistent with the purpose of the TSP, which is to grow retirement savings. Many commenters oppose limiting participants to a single general purpose loan because they want to borrow from their TSP accounts to pay for medical and dental expenses, home repair or improvement, car repairs, or school tuition. Other participants oppose the changes because they want to use TSP loans to pay off high interest credit cards or as capital to start a business. The loan program changes will not prevent a participant from obtaining a TSP loan to pay such expenses. Rather, the changes will limit a participant to a single general purpose loan. This purpose of this limitation is to promote the use of the TSP as a retirement savings plan and to reinforce the importance of borrowing from the TSP as a last resort. The TSP is a retirement savings plan, not a savings account that should be used to finance short-term needs, refinance consumer debt or start a business. A participant who may need money in the near future and who does not have adequate savings should consider those short-term needs carefully before deciding how much to contribute to the TSP. Several commenters who oppose limiting participants to a single general purpose loan also wrote that the TSP is a necessary source of emergency funds in the case of financial hardship. However, TSP funds remain available if a participant can qualify for financial hardship in-service withdrawals. Forty participants commented on the 60-day waiting period between paying off a loan and receiving another of the same type; thirty-one of them oppose the change. Those who stated a reason for opposing the change (other than those reasons discussed above) believe it unreasonably limits their ability to obtain a loan or is simply designed to discourage loans. Before proposing the 60 day waiting period, the Executive Director undertook a study of the loan program; that study revealed that an increasing number of participants repeatedly pay off one loan and simultaneously apply for another. These participants are apparently using the TSP as an ongoing vehicle for financing their living expenses, rather than as a retirement savings plan. The waiting period is designed to correct this abusive practice. The waiting period also solves an administrative problem. Many participants simultaneously submit a new loan application with a loan payoff check. In such a case, the TSP cannot process the new loan application until it processes and deposits the loan payoff check, waits for it to clear, posts the funds to the participant's account, and closes the loan. Given the enormous volume (900,000) of TSP loans that are in existence, it is not administratively reasonable to manually manage large numbers of pending loan applications until the outstanding loan is closed and a new loan request can be processed. A limited waiting period, clearly communicated to participants and equitably applied, provides a systematic solution to this administrative problem. Several commenters questioned the Board's decision to advertise an implementation date for the loan program changes before receiving comments on the proposed rule. Others asked the Board to delay implementation of the new rules. The Executive Director publicly announced the loan program changes in mid-2003 for a mid-2004 implementation date; since then, he has made numerous public statements about his intent to change the loan program. In addition, the Board announced the changes on the TSP Web site, the Thriftline, and in a one-time written notice mailed to every participant with an outstanding TSP loan. Before publishing the proposed loan regulations in the **Federal Register** , the Executive Director discussed the changes in Congressional hearings, the January 2004 TSP *Highlights* (a TSP publication), the April 2004 TSP *Highlights,* numerous press interviews, and sought the advice of the Employee Thrift Advisory Council (ETAC). The ETAC is a 15-member body established by FERSA to advise the Board on TSP matters. ETAC members represent members of the Uniformed Services and Federal and postal employees, both active and retired, at all levels of government, from wage earners to senior executives. The Board also welcomes the opportunity to review and respond to comments from participants who take an active interest in the TSP and wish to offer suggestions. Some participants who read the *Highlights* or news reports wrote letters to the Agency and the Agency fully considered their comments. Additionally, the Executive Director formally solicited comments from participants when he published the proposed loan regulations. The comment process allows the Board to address any misunderstandings about the proposed loan changes, to learn if there are unanticipated legal or policy impediments to the proposed changes, and to hear suggestions about how better to implement the proposed changes. Although the comments received did not cause the Executive Director to make any changes to the proposed loan rules, he did carefully consider all comments received. Section 1655.2 Proposed § 1655.2(c) explains the general rule that a participant must be eligible to contribute to the TSP before he or she can apply for a TSP loan. It also explains an exception to that rule (a participant can apply for a loan if his or her TSP contributions were suspended when he or she obtained a financial hardship in-service withdrawal). However, proposed § 1655.2(c) did not explain a second exception. Specifically, a participant can apply for a loan if he or she is not eligible to make TSP contributions because the participant stopped contributing to the TSP and is not yet eligible to resume contributing. Final § 1655.2(c) explains this exception. The Executive Director is publishing the proposed rule as a final rule with several other clarifying changes to proposed sections 1655.21, 1690.12 and 1690.13. Regulatory Flexibility Act I certify that these regulations will not have a significant economic impact on a substantial number of small entities. They will affect only employees of the Federal Government. Paperwork Reduction Act I certify that these regulations do not require additional reporting under the criteria of the Paperwork Reduction Act of 1980. Unfunded Mandates Reform Act of 1995 Pursuant to the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 602, 632, 653, 1501-1571, the effects of this regulation on State, local, and tribal governments and the private sector have been assessed. This regulation will not compel the expenditure in any one year of $100 million or more by State, local, and tribal governments, in the aggregate, or by the private sector. Therefore, a statement under § 1532 is not required. Submission to Congress and the General Accounting Office Pursuant to 5 U.S.C. 810(a)(1)(A), the Board submitted a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States before publication of this rule in the **Federal Register** . This rule is not a major rule as defined at 5 U.S.C. 814(2). List of Subjects 5 CFR Parts 1650, 1653 and 1690 Employee benefit plans, Government employees, Pensions, Retirement. 5 CFR Part 1655 Employee benefit plans, Government employees, Military personnel, Pensions, Retirement. Dated: May 20, 2004. Gary A. Amelio, Executive Director Federal Retirement Thrift Investment Board. For the reasons set forth in the preamble, the Board amends 5 CFR chapter VI as follows: PART 1650—METHODS OF WITHDRAWING FUNDS FROM THE THRIFT SAVINGS PLAN 1. The authority citation for part 1650 continues to read as follows: Authority: 5 U.S.C. 8351, 8433, 8434, 8435, 8474(b)(5), and 8474(c)(1). Subpart G—Spousal Rights § 1650.61 [Amended] 2. Amend § 1650.61 by removing “§ 1650.64” from paragraph

(b)and “§ 1650.65” from paragraph (c)(1), and adding in their places “this subpart''. § 1650.62 [Amended] 3. Amend § 1650.62 by removing “§ 1650.64” from paragraph

(b)and “§ 1650.65” from paragraph (c), and adding in their places “this subpart''. § 1650.64 [Amended] 4. Amend § 1650.64 by removing “§ 1650.64” from paragraph (a)(1) and adding in its place “this subpart''. PART 1653—COURT ORDERS AND LEGAL PROCESSES AFFECTING THRIFT SAVINGS PLAN ACCOUNTS 5. The authority citation for part 1653 is revised to read as follows: Authority: 5 U.S.C. 8435, 8436(b), 8437(e), 8439(a)(3), 8467, 8474(b)(5) and 8474(c)(1). Subpart A—Retirement Benefits Court Orders 6. Amend section 1653.2 by revising paragraph (a)(4) to read as follows: § 1653.2 Qualifying retirement benefits court orders.

(a)* * *

(4)A court order can require a payment only to a spouse, former spouse, child or dependent of a participant. 7. Amend section 1653.3 by revising the last sentence of paragraph

(b)introductory text to read as follows: § 1653.3 Processing retirement benefits court orders.

(b)* * * To be complete, a court order must be written in English or be accompanied by a certified English translation and contain all pages and attachments; it must also provide (or be accompanied by a document that provides): PART 1655—LOAN PROGRAM 8. The authority citation for part 1655 is revised to read as follows: Authority: 5 U.S.C. 8433(g), 8439(a)(3) and 8474. 9. Revise section 1655.2 to read as follows: § 1655.2 Eligibility for loans. A participant can apply for a TSP general purpose or residential loan if:

(a)More than 60 calendar days have elapsed since the participant has repaid in full a TSP loan of the same type.

(b)The participant is in pay status;

(c)The participant is eligible to contribute to the TSP (or would be eligible to contribute but for the suspension of the participant's contributions because he or she obtained a financial hardship in-service withdrawal or because he or she stopped contributing to the TSP and is not yet eligible to resume contributing);

(d)The participant has at least $1,000 in employee contributions and attributable earnings in his or her account; and

(e)The participant has not had a TSP loan declared a taxable distribution within the last 12 months for any reason other than a separation from Government service. 10. Amend section 1655.4 by revising the second sentence to read as follows: § 1655.4 Number of loans. * * * One of the two outstanding loans may be a residential loan and the other one may be a general purpose loan. * * * 11. Revise paragraph

(b)of section 1655.11 to read as follows: § 1655.11 Loan acceptance.

(b)The participant has the maximum number of loans outstanding under § 1655.4; 12. Add a new section 1655.21 to read as follows: § 1655.21 Loan fee. The TSP will charge a participant a $50.00 loan fee when it disburses the loan and will deduct the fee from the proceeds of the loan. PART 1690—THRIFT SAVINGS PLAN 13. The authority citation for Part 1690 continues to read as follows: Authority: 5 U.S.C. 8474. 14. Revise section 1690.12 to read as follows: § 1690.12 Power of attorney.

(a)A participant or beneficiary can appoint an agent to conduct business with the TSP on his or her behalf by using a power of attorney (POA). The agent is called an attorney-in-fact. The TSP must approve a POA before the agent can conduct business with the TSP; however, the TSP will accept a document that was signed by the agent before the TSP approved the POA. The TSP will approve a POA if it meets the following conditions:

(1)The POA must give the agent either general or specific powers, as explained in paragraphs

(b)and

(c)of this section;

(2)A notary public or other official authorized by law to administer oaths or affirmations must authenticate, attest, acknowledge, or certify the participant's or beneficiary's signature on the POA; and

(3)The POA must be submitted to the TSP recordkeeper for approval.

(b)*General power of attorney.* A general POA gives an agent unlimited authority to conduct business with the TSP, including the authority to sign any TSP-related document. By way of example, a POA grants such authority by authorizing the agent to act on behalf of the participant or beneficiary with respect to “all matters,” “personal property,” “Federal Government retirement benefits,” or “business transactions.”

(c)*Specific power of attorney.* A specific power of attorney gives an agent the authority to conduct specific TSP transactions. A specific POA must expressly describe the authority it grants. By way of example, a specific POA may authorize an agent to “obtain information about my TSP account” or “borrow or withdraw funds from my TSP account.” 15. Revise section 1690.13 to read as follows: § 1690.13 Guardianship and conservatorship orders.

(a)A court order can authorize an agent to conduct business with the TSP on behalf of an incapacitated participant or beneficiary. The agent is called a guardian or conservator and the incapacitated person is called a ward. The TSP must approve a court order before an agent can conduct business with the TSP; however, the TSP will accept a document that was signed by the agent before the TSP approved the court order. The TSP will approve a court order appointing an agent if the following conditions are met:

(1)A court of competent jurisdiction (as defined at 5 CFR 1690.1) must have issued the court order;

(2)The court order must give the agent either general or specific powers, as explained in paragraphs

(b)and

(c)of this section;

(3)The agent must satisfy the TSP that he or she meets any precondition specified in the court order, such as a bonding requirement;

(4)The court order must be submitted to the TSP record keeper for approval.

(b)*General grant of authority.* A general grant of authority gives a guardian or conservator unlimited authority to conduct business with the TSP, including the authority to sign any TSP-related document. By way of example, an order gives a general grant authority by appointing a “guardian of the ward's estate,” by permitting a guardian to “conduct business transactions” for the ward, or by authorizing a guardian to care for the ward's “personal property” or “Federal Government retirement benefits.”

(c)*Specific grant of authority.* A specific grant of authority gives a guardian or conservator authority to conduct specific TSP transactions. Such an order must expressly describe the authority it grants. By way of example, an order may authorize an agent to “obtain information about the ward's TSP account” or “borrow or withdraw funds from the ward's TSP account.” [FR Doc. 04-11844 Filed 5-25-04; 8:45 am]

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