[Federal Register Volume 59, Number 148 (Wednesday, August 3, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18875]


  Federal Register / Vol. 59, No. 148 / Wednesday, August 3, 1994 /
  
[[Page Unknown]]

[Federal Register: August 3, 1994]


                                                   VOL. 59, NO. 148

                                          Wednesday, August 3, 1994

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 406

 

Nursery Crop Insurance Regulations

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends 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.

EFFECTIVE DATE: August 3, 1994.

FOR FURTHER INFORMATION CONTACT:
Mari L. Dunleavy, Regulatory and Procedural Development, Federal Crop 
Insurance Corporation, U.S. Department of Agriculture, Washington, DC 
20250, telephone (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 not 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.
    Following publication of this rule as proposed, the public was 
given 15 days in which to submit comments, data, and opinions. No 
comments were received, however, a non-substantive change has been made 
to the amended language. Accordingly, this rule is hereby issued as 
final.

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.

List of Subjects in 7 CFR Part 406

    Crop Insurance, Nursery, Premium deferred.

Final 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 amends 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. Interest will begin to accrue on 
March 31 of the crop year. Premium will be delinquent on the 
termination date.
* * * * *
    Done in Washington, DC, on July 20, 1994.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-18875 Filed 8-2-94; 8:45 am]
BILLING CODE 3410-08-M