[Federal Register Volume 63, Number 170 (Wednesday, September 2, 1998)]
[Proposed Rules]
[Pages 46706-46708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23522]



[[Page 46706]]

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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457


Common Crop Insurance Regulations; Grape Crop Insurance 
Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
amend the Grape Crop Insurance Provisions to: (1) allow grape producers 
in Idaho, Oregon, and Washington to select one price election and one 
coverage level for each varietal group specified in the Special 
Provisions; and (2) provide year-round coverage in California, Idaho, 
Mississippi, Oregon, Texas, and Washington for insureds with no break 
in coverage from the prior crop year. The intended effect of this 
action is to provide policy changes to better meet the needs of the 
insured.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business October 2, 1998 and will be considered 
when the rule is to be made final. The comment period for information 
collections under the Paperwork Reduction Act of 1995 continues through 
November 2, 1998.

ADDRESSES: Interested persons are invited to submit written comments to 
the Director, Product Development Division, Federal Crop Insurance 
Corporation, United States Department of Agriculture, 9435 Holmes Road, 
Kansas City, MO 64131. A copy of each response will be available for 
public inspection and copying from 7:00 a.m. to 4:30 p.m., CDT, Monday 
through Friday, except holidays, at the above address.

FOR FURTHER INFORMATION CONTACT: Stephen Hoy, Insurance Management 
Specialist, 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

    This rule has been determined to be exempt for the purposes of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget (OMB).

Paperwork Reduction Act of 1995

    This rule proposes to amend the information collection requirements 
previously approved by OMB under OMB control number 0563-0053 through 
October 31, 2000. This rule proposes to: (1) allow grape producers in 
Idaho, Oregon, and Washington to select one price election and one 
coverage level for each varietal group specified in the Special 
Provisions, and (2) provide year-round crop insurance coverage for 
grapes in California, Idaho, Mississippi, Oregon, Texas, and 
Washington. All of the forms cleared under OMB control number 0563-0053 
represent the minimum information necessary to determine eligibility 
and losses qualifying for a payment due to grape coverage.
    Revised reporting estimates and requirements for usage of OMB 
control number 0563-0053 will be submitted to OMB for approval under 
the provisions of 44 U.S.C. chapter 35. The comment period for 
information collections under the Paperwork Reduction Act of 1995 
continues through November 2, 1998.
    The FCIC is seeking comments on the following information 
collection request (ICR).
    Title: Multiple Peril Crop Insurance.
    Respondents/Affected Entities: Parties affected by the information 
collection requirements included in this rule are grape producers.
    Abstract: This rule improves the existing grape policy by: (1) 
allowing grape producers in Idaho, Oregon, and Washington to select one 
price election and one coverage level for each varietal group specified 
in the Special Provisions, and (2) providing crop insurance coverage in 
California, Idaho, Mississippi, Oregon, Texas, and Washington during 
the period when no coverage currently exists. FCIC believes the 
proposed policy will provide better crop insurance coverage to grape 
producers.
    Estimate of Burden: Public reporting burden for the collection of 
information on all forms for the insurance of grapes is estimated at 
51.1 minutes per participant because of the high degree of automation 
associated with the data collection.
    Respondents: Grape producers.
    Estimated Number of Respondents: 11,201.
    Estimated Number of Responses Per Respondent: 2.5.
    Estimated Total Annual Burden on Respondents: 3,842 hours.
    FCIC is requesting comments on the following: (a) whether the 
proposed collection of information is necessary for the proper 
performance of the functions of the agency, including whether the 
information has practical utility; (b) the accuracy of the agency's 
estimate of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and (d) ways to minimize the burden of the collection of 
information on respondents, including through the use of automated 
collection techniques or other forms of information gathering 
technology.
    Comments regarding paperwork reduction should be submitted to the 
Desk Officer for Agriculture, Office of Information and Regulatory 
Affairs, Office of Management and Budget, Washington, D.C. 20503.
    The Office of Management and Budget (OMB) is required to make a 
decision concerning the collections of information contained in this 
rule between 30 and 60 days after submission to OMB. Therefore, a 
comment to OMB is best assured of having full effect if OMB receives it 
within 30 days of publication. This does not affect the deadline for 
the public to comment on the rule.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. This rule contains no Federal 
mandates (under the regulatory provisions of title II of UMRA) for 
State, local, and tribal governments or the private sector. Thus, this 
rule is not subject to the requirements of sections 202 and 205 of 
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. New provisions included in this 
rule will not impact small entities to a greater extent than large 
entities. Under the current regulations, a producer is required to 
complete an application and an acreage report. If the crop is damaged 
or destroyed, the insured is required to give notice of loss and 
provide the necessary information to complete a claim for indemnity. 
This regulation

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does not alter those requirements. The amount of work required of the 
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. The provisions of this rule will not 
have a retroactive effect. 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 any action for judicial 
review of any determination made by FCIC may be brought.

Environmental Evaluation

    This action is not expected to have a significant economic impact 
on the quality of the human environment, health, and safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

Background

    FCIC proposes to amend the Common Crop Insurance Regulations (7 CFR 
part 457) by revising 7 CFR 457.138 effective for the 2000 and 
succeeding crop years. The principal changes to the provisions for 
insuring grapes are as follows:
    1. Section 3--Add provisions to allow grape producers in Idaho, 
Oregon, and Washington to select one coverage level and one price 
election for each varietal group designated in the Special Provisions. 
Previously, the Special Provisions for these states did not always 
allow different price elections or coverage levels by varietal group, 
in which case the coverage level and price election designated by the 
insured applied to all grapes in the county. In addition, a provision 
is added to specify that, in California, Idaho, Mississippi, Oregon, 
Texas, and Washington, the insured's elected or assigned coverage level 
or the ratio of the insured's price election to the maximum price 
election offered may not be increased after coverage begins if a cause 
of loss that could or will reduce the yield of the insured crop is 
evident prior to the time that the change in coverage is requested. 
This limitation will preclude insureds with continuous coverage from 
increasing the liability on their insured acreage following a cause of 
loss that could or will reduce the yield of the crop.
    2. Section 9--Specify that, in California, Idaho, Mississippi, 
Oregon, Texas, and Washington, for each subsequent crop year this 
policy remains continuously in force (policy cancellation that results 
solely from transferring to a different insurance provider for a 
subsequent crop year will not be considered a break in continuous 
coverage), coverage begins on the day immediately following the end of 
the insurance period for the prior crop year. According to the Common 
Crop Insurance Policy, the insurance period ends on the earliest of: 
(1) total destruction of the insured crop on the unit; (2) harvest of 
the unit; (3) the calendar date contained in the Crop Provisions for 
the end of the insurance period; (4) abandonment of the crop on the 
unit; or (5) as otherwise specified in the crop provisions. The current 
Grape Crop Provisions specify calendar dates for the beginning and end 
of the insurance period, thereby establishing a minimum time period 
during which no insurance coverage exists between crop years in 
California, Idaho, Mississippi, Oregon, Texas, and Washington. This 
rule proposes to eliminate any lapse in insurance coverage between crop 
years regardless of when insurance coverage ends for the crop year.

List of Subjects in 7 CFR Part 457

    Crop insurance, Grape.

Proposed Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation proposes to amend 7 CFR part 457 as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE 
1998 AND SUBSEQUENT CONTRACT YEARS

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

    Authority: 7 U.S.C. 1506(l), 1506(p).

    2. Section 457.138 is revised by amending the introductory text to 
read as follows:


Sec. 457.138  Grape Crop Insurance Provisions.

    The grape crop insurance provisions for the 2000 and succeeding 
crop years are as follows:
* * * * *
    3. In Sec. 457.138, sections 3(b) and 3(c) are amended and a new 
section 3(f) is added to read as follows:
    3. Insurance Guarantees, Coverage Levels, and Prices for 
Determining Indemnities.
* * * * *
    (b) In Idaho, Oregon, and Washington, you may select only one price 
election and only one coverage level for each varietal group specified 
in the Special Provisions.
    (c) In all states except California, Idaho, Oregon, and Washington, 
you may select only one price election and only one coverage level for 
all the grapes in the county insured under this policy unless the 
Special Provisions provide different price elections by varietal group, 
in which case you may select one price election for each varietal group 
designated in the Special Provisions. The price elections you choose 
for each varietal group must have the same percentage relationship to 
the maximum price offered by us for each varietal group. For example, 
if you choose 100 percent of the maximum price election for one 
varietal group, you must also choose 100 percent of the maximum price 
election for all other varietal groups.
    (d) * * *
    (e) * * *
    (f) In California, Idaho, Mississippi, Oregon, Texas, and 
Washington, you may not increase your elected or assigned coverage 
level or the ratio of your price election to the maximum price election 
we offer after coverage begins if a cause of loss that could or will 
reduce the yield of the insured crop is evident prior to the time that 
you request a change in coverage.
* * * * *
    4. In Sec. 457.138, section 9(a)(2) is redesignated as 9(a)(3) and 
a new section 9(a)(2) is added to read as follows:
    9. Insurance Period.
    (a) * * *
    (1) * * *
    (2) In California, Idaho, Mississippi, Oregon, Texas, and 
Washington, for each subsequent crop year that the policy remains 
continuously in force, coverage begins on the day immediately following 
the end of the insurance

[[Page 46708]]

period for the prior crop year. Policy cancellation that results solely 
from transferring to a different insurance provider for a subsequent 
crop year will not be considered a break in continuous coverage.
* * * * *
    Signed in Washington, D.C., on July 16, 1998.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 98-23522 Filed 9-1-98; 8:45 am]
BILLING CODE 3410-08-P