9962 Federal Register / Vol. 76, No. 36 / Wednesday, February 23, 2011 / Rules and Regulations 

■ 2. Add new § 841.110 to read as 

follows: 

§ 841.110 Garnishment of FERS payments. 

FERS payments are not subject to 

execution, levy, attachment, 

garnishment or other legal process 

except as expressly provided by Federal 

law. 

■ 3. Add a new § 841.111 to read as 

follows: 

§ 841.111 Garnishment of payments after 

disbursement. 

(a) Payments that are covered by 5 

U.S.C. 8470(a) and made by direct 

deposit are subject to 31 CFR part 212, 

Garnishment of Accounts Containing 

Federal Benefit Payments. 

(b) This section may be amended only 

by a rulemaking issued jointly by the 

Department of the Treasury and the 

agencies defined as a ‘‘benefit agency’’ in 

31 CFR part 212. 

By the Department of the Treasury. 

Dated: February 3, 2011. 

Richard L. Gregg, 

Fiscal Assistant Secretary. 

By the Social Security Administration. 

Michael J. Astrue, 

Commissioner of Social Security. 

Dated: January 31, 2011. 

By the Department of Veterans Affairs. 

John R. Gingrich, 

Chief of Staff. 

By the Railroad Retirement Board. 

Beatrice Ezerski, 

Secretary to the Board. 

By the Office of Personnel Management. 

John Berry, 

Director. 

[FR Doc. 2011–3782 Filed 2–22–11; 8:45 am] 

BILLING CODE 4810–25–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Part 115 

RIN 3245–AG14 

Surety Bond Guarantee Program; 

Timber Sales 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Final rule. 

SUMMARY: The Small Business 

Administration (SBA) is issuing this 

final rule to amend its Surety Bond 

Guarantee Program rules to guarantee 

bid and performance bonds for timber 

sale contracts awarded by the Federal 

Government or other public and private 

landowners. 

DATES: This rule is effective on March 

25, 2011. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Barbara J. Brannan, Office of Surety 

Guarantees, 202–205–6545, e-mail: 

Barbara.brannan@sba.gov. 

SUPPLEMENTARY INFORMATION: SBA 

guarantees bonds for small contractors 

who cannot obtain surety bonds through 

the traditional commercial market. 

SBA’s guarantee provides surety 

companies with the incentive to bond 

these contractors, enabling them to bid 

on and be awarded more contracts. The 

Surety Bond Guarantee (SBG) Program 

consists of the Prior Approval Program 

and the Preferred Surety Bond (PSB) 

Program. In the Prior Approval Program, 

each bond guarantee application must 

be submitted to SBA individually for 

approval, while PSB sureties have the 

delegated authority to issue, monitor, 

and service bonds without SBA’s prior 

approval. 

The Forest Service of the U.S. 

Department of Agriculture (USDA), and 

other public and private entities that 

manage forests, may permit the 

harvesting of timber in exchange for the 

payment of an agreed upon sum of 

money. To bid on these timber sale 

contracts, the USDA and these other 

public and private entities may require 

the bidder to obtain a bond to ensure 

satisfactory compliance with the 

contract terms and conditions 

associated with forest management, 

such as the protection of natural 

resources, soil, water, erosion control 

and road maintenance. Unlike the 

typical contract for supplies or services 

where the Obligee pays the Principal for 

providing supplies or rendering 

services, the Principal in the timber sale 

contract (the harvester of the timber) 

pays the Obligee (e.g. the Federal 

Government) for the right to cut the 

designated trees. However, under the 

current definition of ‘‘Contract’’ in 13 

CFR 115.10, a contract for which SBA 

may issue a Surety Bond Guarantee 

cannot include a contract requiring any 

payment by the Principal to the Obligee. 

This final rule amends the definition of 

‘‘Contract’’ to permit SBA to issue bid or 

performance bond guarantees for 

contracts that require the Principal to 

pay the Obligee for harvesting timber or 

other forest products, such as biomass. 

This change applies to contracts 

involving forests managed by the U.S. 

Forest Service as well as other public 

and private entities. 

Discussion of Public Comments 

On October 15, 2010, SBA published 

the notice of proposed rulemaking with 

request for comments on this change to 

the SBG Program in the Federal 

Register. See 75 FR 63419. SBA 

received comments from four submitters 

before the comment period ended on 

November 15, 2010 and from two 

submitters after the comment period 

ended. SBA has considered all of the 

comments received. 

Three submitters stated that small 

businesses have difficulty or are unable 

to obtain bonding to bid on timber sale 

contracts. They expressed support for 

the proposed rule because it will enable 

small contractors to obtain bonding 

more easily, making it possible for them 

to bid against larger companies and 

compete for timber sale contracts. 

One submitter expressed concern that 

the fee assessed by SBA on the Principal 

for the bond may make it difficult or 

economically unfeasible for them to 

obtain timber sale contracts. SBA 

periodically reviews the program fees 

charged, which are established in the 

amounts SBA deems reasonable and 

necessary, in accordance with § 411(h) 

of the Small Business Investment Act of 

1958. 

One submitter suggested that SBA 

paperwork requirements, specifically 

the submission of SBA Form 990, Surety 

Bond Guarantee Agreement, with each 

bond could be cumbersome for timber 

sale bonds. However, SBA is not 

requiring any additional paperwork for 

timber sale bonds, and electronic 

application submission and processing 

is available in the Prior Approval 

Program. In addition, PSB sureties do 

not have to submit SBA Form 990 for 

any bond. The same submitter suggested 

that there is limited access to 

participating sureties in rural areas. SBA 

admitted six new sureties to the 

program in fiscal year 2010 and is 

working to expand access to the 

program. 

Lastly, one submitter suggested that 

SBA clarify its intent to exclude 

payment bonds from eligibility by 

changing the definition of Payment 

Bond. SBA agrees that payment bonds 

in connection with timber sale contracts 

should be excluded, as the guarantee on 

payment bonds under the SBG Program 

was not intended to reimburse the 

Obligee for amounts owed the Obligee 

by the Principal, but to cover the claims 

caused by the Principal’s failure to pay 

others furnishing supplies and materials 

for use in the performance of the 

Contract. SBA has added language to the 

rule to make it clear that the exception 

for timber sale contracts applies only to 

bid and performance bonds. Bid bonds 

are included because a small contractor 

may be required to submit a bid bond 

with its bid for the timber sale contract. 

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Federal Register / Vol. 76, No. 36 / Wednesday, February 23, 2011 / Rules and Regulations 9963 

The two comments that were received 

after the deadline have also been 

considered by SBA. Both submitters 

suggested that the regulation be 

amended to include contracts for the 

sale of biomass products to increase the 

number of contracts for which small 

businesses could obtain bonding. SBA 

agrees and has modified the definition 

of ‘‘Contract’’ in this final rule to clarify 

that this change applies to contracts for 

the sale of timber as well as other forest 

products, including biomass. 

Compliance With Executive Orders 

12866, 12988, and 13132, the 

Paperwork Reduction Act (44 U.S.C. Ch. 

35) and the Regulatory Flexibility Act (5 

U.S.C. 601–612) 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has determined that this rule 

does not constitute a significant 

regulatory action under Executive Order 

12866. This rule is also not a major rule 

under the Congressional Review Act. 

Executive Order 12988 

This action meets applicable 

standards set forth in Sections 3(a) and 

3(b)(2) of Executive Order 12988, Civil 

Justice Reform, to minimize litigation, 

eliminate ambiguity, and reduce 

burden. The action does not have 

retroactive or preemptive effect. 

Executive Order 13132 

For purposes of Executive Order 

13132, SBA has determined that this 

final rule will not have substantial, 

direct effects on the States, on the 

relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, for the 

purpose of Executive Order 13132, 

Federalism, SBA has determined that 

this final rule has no federalism 

implications warranting preparation of a 

federalism assessment. 

Paperwork Reduction Act, 44 U.S.C., 

Ch. 35 

SBA has determined that this final 

rule does not impose additional 

reporting or recordkeeping requirements 

under the Paperwork Reduction Act, 44 

U.S.C., Chapter 35. 

Regulatory Flexibility Act, 5 U.S.C. 601– 

612 

The Regulatory Flexibility Act (RFA), 

5 U.S.C. 601, requires administrative 

agencies to consider the effect of their 

actions on small entities, small nonprofit enterprises, and small local 

governments. Pursuant to the RFA, 

when an agency issues a rulemaking, 

the agency must prepare a regulatory 

flexibility analysis which describes the 

impact of the rule on small entities. 

However, section 605 of the RFA allows 

an agency to certify a rule, in lieu of 

preparing an analysis, if the rulemaking 

is not expected to have a significant 

economic impact on a substantial 

number of small entities. Within the 

meaning of RFA, SBA certifies that this 

rule will not have a significant 

economic impact on a substantial 

number of small entities. There are 

seventeen Sureties that participate in 

the SBA program, and no part of this 

final rule would impose any significant 

additional cost or burden on them. 

List of Subjects in 13 CFR Part 115 

Claims, Small businesses, Surety 

bonds. 

For the reasons stated in the 

preamble, the Small Business 

Administration amends 13 CFR Part 115 

as follows: 

PART 115—SURETY BOND 

GUARANTEE 

■ 1. The authority citation for part 115 

continues to read as follows: 

Authority: 5 U.S.C. app. 3, 15 U.S.C. 687b, 

687c, 694b, 694b note, Pub. L. 106–554; and 

Pub. L. 108–447, Div. K, Sec. 203. 

■ 2. Amend § 115.10 by revising the 

third sentence of the definition of 

‘‘Contract’’ to read as follows. 

§ 115.10 Definitions. 

* * * * * 

Contract * * * A contract does not 

include a permit, subdivision contract, 

lease, land contract, evidence of debt, 

financial guarantee (e.g., a contract 

requiring any payment by the Principal 

to the Obligee, except for contracts in 

connection with bid and performance 

bonds for the sale of timber and/or other 

forest products, such as biomass, that 

require the Principal to pay the 

Obligee), warranty of performance or 

efficiency, warranty of fidelity, or 

release of lien (other than for claims 

under a guaranteed bond). * * * 

* * * * * 

Karen G. Mills, 

Administrator. 

[FR Doc. 2011–4010 Filed 2–22–11; 8:45 am] 

BILLING CODE 8025–01–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–0892; Directorate 

Identifier 2010–NE–32–AD; Amendment 39– 

16615; AD 2011–05–06] 

RIN 2120–AA64 

Airworthiness Directives; Thielert 

Aircraft Engines GmbH Models TAE 

125–02–99 and TAE 125–02–114 

Reciprocating Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for the 

products listed above. This AD results 

from mandatory continuing 

airworthiness information (MCAI) 

issued by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 

condition as: 

Service experience has shown that fracture 

of the timing chain has occurred due to chain 

wear. This condition, if not corrected, could 

lead to in-flight cases of engine shutdown. 

We are issuing this AD to prevent 

engine in-flight shutdown leading to 

loss of control of the airplane by 

requiring life limits for the timing chain. 

DATES: This AD becomes effective 

March 30, 2011. 

ADDRESSES: The Docket Operations 

office is located at Docket Management 

Facility, U.S. Department of 

Transportation, 1200 New Jersey 

Avenue, SE., West Building Ground 

Floor, Room W12–140, Washington, DC 

20590–0001. 

FOR FURTHER INFORMATION CONTACT: 

Alan Strom, Aerospace Engineer, Engine 

Certification Office, FAA, Engine & 

Propeller Directorate, 12 New England 

Executive Park, Burlington, MA 01803; 

e-mail: alan.strom@faa.gov; telephone 

(781) 238–7143; fax (781) 238–7199. 

SUPPLEMENTARY INFORMATION: 

Discussion 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 to include an AD that would 

apply to the specified products. That 

NPRM was published in the Federal 

Register on October 28, 2010 (75 FR 

66342). That NPRM proposed to correct 

an unsafe condition for the specified 

products. The MCAI states: 

Service experience has shown that fracture 

of the timing chain has occurred due to chain 

WReier-Aviles on DSKDVH8Z91PROD with RULES