[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: 94-14402]
[[Page Unknown]]
[Federal Register: June 14, 1994]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 406
Nursery Crop Insurance Regulations
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to
amend the Nursery Crop Insurance regulations effective for the 1995 and
succeeding crop years, by allowing a six month delay in the payment of
premiums. The premium billing date will be extended for up to six
months from September 30, to March 31 of the subsequent year insurance
attaches.
DATES: Written comments, data, and opinions on this rule must be
submitted no later than June 29, 1994, to be sure of consideration.
ADDRESSES: Mari L. Dunleavy, Regulatory and Procedural Development,
Federal Crop Insurance Corporation, U.S. Department of Agriculture,
Washington, DC 20250, telephone (202) 254-8314. Hand messenger delivery
may be made to, Suite 500, 2101 L Street, NW., Washington, DC. Comments
received may be viewed and copied at Suite 503, 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 does not constitute a review as to the
need, currency, clarity, and effectiveness of the regulations affected
by this rule under those procedures. The sunset review date established
for these regulations is October 1, 1994.
This rule has been determined to be ``not significant'' for
purposes of Executive Order 12866, and therefore has not been reviewed
by the Office of Management and Budget (OMB).
This action will not increase the federal paperwork burden for
individuals, small businesses, and other persons. The action will not
have a significant economic effect on the producers served by this
voluntary crop insurance program because this action liberalizes the
terms of the nursery crop insurance contract for the insured. Extending
credit to producers may have a minor economic effect on the insurer
only if producers do no pay their premium. However, based on past
experience, non-payment of nursery crop premiums has been
insignificant. For years in which premium payment have been deferred,
only two disputes over premium payment have occurred. This represents
less than one percent of the total nursery crop policies purchased. As
these disputes have not yet been resolved, all premiums may potentially
be paid. Further FCIC will administratively extend the date for payment
by the reinsured company when necessary to be consistent with the final
date the insured is required to submit premium payment. 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.
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.
This amendment does not contain information collections that
require clearance by the Office of Management and Budget under the
provisions of 44 U.S.C. chapter 35, the Paperwork Reduction Act.
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that the policies and procedures contained in this rule do
not have sufficient federalism implications to warrant the preparation
of a Federalism Assessment. The policies and procedures in this rule
will not have an increased substantial direct effect on states or their
political subdivisions, or on the distribution of power and
responsibilities among the various levels of government.
This rule has been reviewed in accordance with Executive Order
12778. The provisions of this rule are not retroactive and will preempt
state and local laws to the extent such state and local laws are
inconsistent therewith. The administrative appeal provisions located at
7 CFR part 400, subpart J must be exhausted before judicial action may
be brought for actions taken under this policy or before any
proceedings for the imposition of civil penalties under 7 U.S.C. 1506
or under the Program Fraud Civil Remedies may be effective.
Because it is urgent that insurance companies and producers be
notified as soon as possible, and because of the need to file actuarial
tables on time, public comments will be accepted for 15 days after
publication of this rule.
Background
The nursery crop insurance policy is the only Federal crop
insurance policy that requires premium payment in full prior to
insurance attachment. Premium for other Federal crop insurance policies
can be paid later, usually at or near harvest. FCIC took such action
for the 1993 and 1994 crop years. Discontinuing this practice would be
burdensome to the insured, therefore, FCIC intends to continue to allow
the later payment of premiums. The insurance premium will be changed
from September 30 preceding the crop year, to March 31 of the crop
year.
Written comments received pursuant to this proposed rule will be
made available for public inspection and copying in suite 500, 2101 L
Street, NW., Washington DC during regular business hours, Monday
through Friday.
List of Subjects in 7 CFR Part 406
Crop Insurance, Nursery, Premium deferred.
Proposed Rule
Accordingly, 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 Nursery Crop
Insurance Regulations (7 CFR part 406) effective for the 1995 and
subsequent crop years, by amending the provisions for coverage. This
rule amends the regulations set forth herein in the following
instances:
1. The authority citation for 7 CFR part 406 continues to read as
follows:
Authority: 7 U.S.C. 1506, 1516.
2. Section 406.7 is amended in the contract by revising subsection
5. (a) to read as follows:
Sec. 406.7 The application and policy.
* * * * *
5. Annual Premium.
a. The annual premium is earned and payable on or before September
30 preceding each crop year and will be earned in full when the policy
becomes effective. The date for payment of the premium will be deferred
until March 31 of the crop year.
* * * * *
Done in Washington, DC on June 2, 1994.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-14402 Filed 6-13-94; 8:45 am]
BILLING CODE 3410-08-M