[Federal Register Volume 63, Number 57 (Wednesday, March 25, 1998)]
[Rules and Regulations]
[Pages 14333-14334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7735]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 63, No. 57 / Wednesday, March 25, 1998 /
Rules and Regulations
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 401, 454, and 457
General Crop Insurance Regulations, Various Endorsements; Fresh
Market Tomato (Guaranteed Production Plan) Crop Insurance Regulations;
and Common Crop Insurance Regulations, Various Crop Insurance
Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) adopts
regulations for the General Crop Insurance Regulations; Canning and
Processing Tomato and Rice Endorsements; Fresh Market Tomato
(Guaranteed Production Plan) Crop Insurance Regulations; and the Common
Crop Insurance Regulations, Cotton, Coarse Grains (Corn, Grain Sorghum,
and Soybeans), Dry Bean, ELS Cotton, Sugar Beet, and Sunflower Seed
Crop Insurance Provisions, effective for the 1998 crop year only, for
counties and states with a November 30 contract change date. The
intended effect of this action is to extend the contract change date to
December 17, 1997.
EFFECTIVE DATE: This rule was effective November 26, 1997.
FOR FURTHER INFORMATION CONTACT: Louise Narber, Insurance Management
Specialist, Research and Development, Product Development Division,
Federal Crop Insurance Corporation, United States Department of
Agriculture, 9435 Holmes Road, Kansas City, MO 64131, telephone (816)
926-7730.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) determined this rule to
be not significant for the purposes of Executive Order 12866 and,
therefore, this rule has not been reviewed by OMB.
Paperwork Reduction Act of 1995
Under the provisions of the Paperwork Reduction Act of 1995 (44
U.S.C. chapter 35), there are no information collection requirements
contained in this rule.
Unfunded Mandates Reform Act of 1995
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.
L.104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments or the private sector. This rule contains no Federal
mandates (under the regulatory provisions of title II of the UMRA) for
State, local, and tribal governments or the private sector. Therefore,
this rule is not subject to the requirements of sections 202 and 205 of
the UMRA.
Executive Order 12612
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that this rule does not have sufficient federalism
implications to warrant the preparation of a Federalism Assessment. The
provisions contained in this rule will not have a substantial direct
effect on States or their political subdivisions or on the distribution
of power and responsibilities among the various levels of government.
Regulatory Flexibility Act
This regulation will not have a significant economic impact on a
substantial number of small entities. The extended contract change date
included in this rule will not impact small entities to a greater
extent than large entities. Under the current regulations, FCIC is
required to have changes in policy provisions at the agent's office by
November 30. If this date is not met, then the changes will not be
applicable until the next crop year. The administrative process has
delayed the implementation of the 1998 prevented planting and other
policy changes intended to simplify and streamline the process. This
regulation merely extended that date so that insurance companies and
producers can receive the benefit of these changes in the 1998 crop
year. The amount of work required of insurance companies delivering and
servicing these policies will not increase significantly from the
amount of work currently required. This rule does not have any greater
or lesser impact on the producer. Therefore, this action is determined
to be exempt from the provisions of the Regulatory Flexibility Act (5
U.S.C. 605), and no Regulatory Flexibility Analysis was prepared.
Federal Assistance Program
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
Executive Order 12372
This program is not subject to the provisions of Executive Order
12372, which require 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.
Executive Order 12988
This rule has been reviewed in accordance with Executive Order
12988 on civil justice reform. This rule was published as an interim
rule effective November 26, 1997. The rule was in the agents office by
November 30, 1997, so as to be effective for the 1998 crop year. The
provisions of this rule will not have retroactive effect prior to
November 26, 1997. 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 published at 7 CFR part
11 must be exhausted before action against FCIC for judicial review may
be brought.
Environmental Evaluation
This action is not expected to have a significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
National Performance Review
This regulatory action is being taken as part of the National
Performance Review Initiative to eliminate unnecessary or duplicative
regulations and improve those that remain in force.
Background
On Tuesday, December 2, 1997, FCIC published an interim rule in the
Federal Register at 62 FR 63631 to amend the General Crop Insurance
Regulations,
[[Page 14334]]
Various Endorsements; Fresh Market Tomato (Guaranteed Production Plan)
Crop Insurance Regulations; and Common Crop Insurance Regulations,
Various Crop Insurance Provisions by extending the contract change date
for certain 1998 spring crop counties and States. Since this rule
benefited the insured and insurance companies by improving coverage and
simplifying and streamlining the policies, good cause was found to make
the interim rule effective November 26, 1997, the date the interim rule
was placed on file for public inspection at the office at the Federal
Register.
Following publication of the interim rule, the public was afforded
27 days to submit written comments and opinions. Comments were received
from a reinsured company and legal counsel for a reinsured company. The
comments and FCIC's responses are as follows:
Comment: A reinsured company and legal counsel for a reinsured
company stated that FCIC's inability to propose and promulgate timely
changes in its regulations will adversely affect the reinsured
companies and their policyholders. Since the first crops affected by
the rule have a sales closing date of January 15, 1998, the commenters
state that there is not sufficient time for the companies to understand
the changes in the twelve policies FCIC has proposed to change, train
the trainers, have the trainers train the agents, have the agents
explain these changes to their insureds, and then to permit the
insureds to complete the reports required of them in a timely and
accurate manner. Also, when the insureds are late receiving the crop
insurance changes, it interrupts and delays their planning and
decisions. Receiving these changes late contributes to more obstacles
to be overcome by program providers and agents as opposed to the
mandate and goal of simplification. One of the commenters expects FCIC
to hold the reinsured company harmless for the consequences of FCIC's
errors and omissions. This commenter also stated that the reinsured
company reserves the right to accept, without penalty, late filed
applications, written agreements, acreage reports and any other
document that requires a belated amendment as a result of the FCIC's
delay regardless of whether the sales closing date is extended. The
commenter also stated that the reinsured company reserves the right to
challenge the legality of the FCIC's interim rule and final rule.
Response: It was crucial that better late and prevented planting
coverage be developed and implemented for the 1998 crop year. FCIC
spent months working with producers, farm organizations, commodity
groups, reinsured companies, an insurance service organization, and
agents to develop simplified prevented planting provisions that: (1)
Would protect producers when crops were prevented from being planted by
an insurable cause of loss, (2) would be actuarially sound, (3)
reinsured companies could quickly develop training plans to present to
employees and agents, and (4) would be simple enough for agents to
explain to the producers in a limited time frame. FCIC determined that
its efforts were successful and that neither insureds nor reinsured
companies would be adversely affected by extension of the contract
change date. The sales closing date of January 15, 1998, which is the
first sales closing date for the 1998 crop year, is only applicable to
a few counties and crops and few insureds were affected by the contract
change date extension. With respect to the sales closing date, neither
the Manager or any reinsured company has the authority to extend the
sales closing date. Further, nothing in the rule or the time of its
implementation should require any sales closing date extensions. Late
filed documents may only be accepted in accordance with applicable
regulations and FCIC approved procedures. If FCIC extends the contract
change date and the reinsured company does not feel prepared to sell a
policy prior to the sales closing date, then the company should not
sell the policy and the applicant should be advised to find another
agent. Therefore, no change has been made and the interim rule as
published on December 2, 1997, at 62 FR 63631 is adopted as a final
rule.
List of Subjects
7 CFR Part 401
Crop insurance, Canning and processing tomato, Rice.
7 CFR Part 454
Crop insurance, Fresh market tomato (guaranteed production plan).
7 CFR Part 457
Crop insurance, Cotton, Coarse grains (corn, grain sorghum, and
soybeans), Dry bean, ELS cotton, Sugar beet, Sunflower seed.
PART 457--[AMENDED]
The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 USC 1506(1), 1506(p).
Final Rule
Accordingly, for the reasons set forth in the preamble, the Federal
Crop Insurance Corporation adopts as a final rule, the interim rule as
published at 62 FR 63631 on December 2, 1997.
Signed in Washington, D.C., on March 18, 1998.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 98-7735 Filed 3-24-98; 8:45 am]
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