[Federal Register Volume 59, Number 113 (Tuesday, June 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14312]


[[Page Unknown]]

[Federal Register: June 14, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 457

 

Common Crop Insurance Regulations; Regulations for the 1994 and 
Subsequent Crop Years

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
amend the Common Crop Insurance Regulations. The number of years a 
policy does not earn a premium without policy termination is proposed 
to be changed from one year to three years. The intended effect of this 
amendment is to allow a producer to rotate crops without policy 
cancellation. The arbitration procedures would apply to all 
disagreements on factual determinations and be in accordance with the 
rules of the American Arbitration Association. Currently, the 
arbitration procedures apply only to disagreement on production to be 
counted. The intended effect of this amendment is to broaden the 
applicability of arbitration procedures to other possible disagreements 
under such policies.

DATES: Written comments, data, and opinions on this proposed rule must 
be submitted no later than August 15, 1994 to be sure of consideration.

ADDRESSES: Written comments on this proposed rule should be sent to 
Mari L. Dunleavy, Regulatory and Procedural Development Staff, Federal 
Crop Insurance Corporation, USDA, Washington, DC 20250 or delivered to 
suite 500, 2101 L Street, NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Mari L. Dunleavy, 202-254-8314.

SUPPLEMENTARY INFORMATION: This action has been reviewed under USDA 
procedures established by Executive Order 12866 and Departmental 
Regulation 1512-1. This action constitutes a review as to the need, 
currency, clarity, and effectiveness of these regulations under those 
procedures. The sunset review date established for these regulations is 
November 1, 1999.
    A summary of this rule has been submitted to the Office of 
Management and Budget (OMB) to be determined if it meets the 
requirements of a ``significant regulation'' as defined by Executive 
Order 12866.
    Executive Order 12612, Federalism. This proposal does not have 
sufficient federalism implications to warrant the preparation of a 
Federalism Assessment. The policies and procedures contained in this 
rule will not have substantial direct effects on states or their 
political subdivisions, or on the distribution of power and 
responsibilities among the various levels of government.
    Under Section 605 of the Regulatory Flexibility Act (5 U.S.C. 601 
through 612) these regulations will not have a significant impact on a 
substantial number of small entities. The regulatory revision is 
limited to reinsured companies and their agents and crop producers 
insured under the Federal Crop Insurance Act, as amended (7 U.S.C. 1501 
et seq.). Therefore, this action is determined to be exempt from the 
provisions of the Regulatory Flexibility Act and no Regulatory 
Flexibility Analysis was prepared.
    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.450.
    This program is not subject to the provisions of Executive Order 
12372 which requires intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.
    The Office of General Counsel has certified to OMB that these 
regulations meet the applicable standards provided in subsections 2(a) 
and 2(b)(2) of Executive Order 12778. The provisions of this rule will 
preempt state and local laws to the extent such state and local laws 
are inconsistent herewith. The administrative appeal provisions located 
at 7 CFR part 400, subpart J must be exhausted before judicial action 
may be brought.
    This action is not expected to have any significant impact on the 
quality of the human environment, health, and safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

List of Subjects in 7 CFR Part 457

    Crop insurance.

Proposed Rule

    Pursuant to the authority contained in the Federal Crop Insurance 
Act, as amended (7 U.S.C. 1501 et seq.), the Federal Crop Insurance 
Corporation hereby proposes to amend the Common Crop Insurance 
Regulations, (7 CFR part 457) as follows:

PART 457--[AMENDED]

    1. The authority citation for 7 CFR part 457 continues to read as 
follows:

    Authority: 7 U.S.C. 1506, 1516.

    2. Section 457.8 is amended by revising subsection 2.(e) and 
section 17 of the Common Crop Insurance Policy to read as follows:


Sec. 457.8  The application and policy.

* * * * *
2. Life of Policy, Cancellation, and Termination
* * * * *
    (e) Your Policy will terminate if no premium is earned for 3 
consecutive years.
* * * * *

17. Arbitration

    If you and we fail to agree on any factual determination, 
disagreement will be resolved, in accordance with the rules of the 
American Arbitration Association. Failure to agree with any factual 
determination made by the Federal Crop Insurance Corporation (FCIC) 
must be resolved through the FCIC appeal regulation at 7 CFR part 400, 
subpart J.
* * * * *
Done in Washington, DC on May 11, 1994.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-14312 Filed 6-13-94; 8:45 am]
BILLING CODE 3410-08-M