[Federal Register Volume 59, Number 171 (Tuesday, September 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21908]


  Federal Register / Vol. 59, No. 171 / Tuesday, September 6, 1994 /
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[[Page Unknown]]

[Federal Register: September 6, 1994]


                                                   VOL. 59, NO. 171

                                         Tuesday, September 6, 1994

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

 

Common Crop Insurance Regulations

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Interim final rule.

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SUMMARY: Most of the funding for delivery of the Federal crop insurance 
program for Fiscal Year 1995 is contained within the Federal Crop 
Insurance Reform Act of 1994. Although the Reform Act is moving through 
Congress, it has not yet been enacted and the fall planted crop 
cancellation date is approaching. Although Federal Programs are, by 
law, subject to the availability of appropriations, that is not 
explicitly stated in the regulations. This rule makes it clear that 
continuation of crop insurance policies reinsured by FCIC are subject 
to the availability of appropriations.

DATES: Effective date: This rule is effective August 31, 1994.
    Comments should be submitted by November 7, 1994.

ADDRESSES: Written comments on this interim final rule should be sent 
to Mari L. Dunleavy, Regulatory and Procedural Development Staff, 
Federal Crop Insurance Corporation USDA, Washington, D.C. 20250 or 
delivered to Suite 500, 2101 L Street, N.W., Washington, D.C.

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 these regulations under 
those procedures. The sunset review date established for these 
regulations remains January 1, 1996.
    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).
    It has been determined under section 6(a) of the Executive Order 
12612, Federalism that this rule 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.
    This action will not have a significant economic impact on a 
substantial number of small entities. The rule would not increase the 
amount of work required by reinsured companies and their agents, and 
provides a mechanism for the uninterrupted coverage to the 
policyholders. 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 the General Counsel determined 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.
    It has been determined that an emergency situation exists requiring 
immediate effectiveness of the rule without the opportunity for public 
notice and comment. If all fall planted crop insurance policies were 
canceled and then rewritten when sufficient funds were available, it 
would require a significant increase in time and inconvenience on the 
part of the policyholder and the company.
    Most of the funding for delivery of the Federal crop insurance 
program for Fiscal Year 1995 is contained within the Federal Crop 
Insurance Reform Act of 1994 and the 1995 Fiscal Year Agricultural 
Appropriation Act. Although both are moving through Congress, they have 
not yet been enacted and the fall planted crop cancellation date is 
approaching. Therefore, insurance companies have been put in a position 
where they may soon be required to cancel fall planted crop insurance 
policies. This rule provides that the policies effectiveness depends on 
appropriations. Every crop insurance policy reinsured by FCIC contains 
a provision that states that all provisions of the policy and the 
rights and responsibilities of the parties are specifically subject to 
the Federal Crop Insurance Act (the ``Act''). Since funds to deliver 
the Federal crop insurance program are authorized by the Act, if 
insufficient funds are appropriated under the Act, the policies would 
be rendered ineffective. Therefore, this rule does not materially 
change any term or provision of the policy, nor any provision of law.
    FCIC is soliciting written public comment on this interim final 
rule for 60 days following its publication. This rule will be scheduled 
for review so that any amendment to the rule required as a result of 
such public comment may be published as quickly as possible.
    Written comments received pursuant to this rule will be made 
available for public inspection and copying in suite 500, 2101 L Street 
N.W., Washington, D.C. during regular business hours, Monday through 
Friday.

List of Subjects in 7 CFR Part 457

    Crop insurance.

Interim Final 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 for the 1995 crop year only (7 CFR part 457) as follows:
    1. The authority citation for 7 CFR part 457 continues to read as 
follows:

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

    2. 7 CFR part 457 is amended by adding a new Sec. 457.9 to read as 
follows:


Sec. 457.9  Appropriation contingency.

    Notwithstanding the cancellation date stated in the policy, if 
there are insufficient funds appropriated by the Congress to deliver 
the crop insurance program, the policy will automatically terminate 
without liability.

    Done in Washington, D.C. on August 31, 1994.
Robert Fenton,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-21908 Filed 8-31-94; 4:24 pm]
BILLING CODE 3410-08-M