[Federal Register Volume 64, Number 179 (Thursday, September 16, 1999)]
[Rules and Regulations]
[Pages 50245-50246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23796]



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 Rules and Regulations
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  Federal Register / Vol. 64, No. 179 / Thursday, September 16, 1999 / 
Rules and Regulations  

[[Page 50245]]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 400

RIN 0563-AB74


General Administrative Regulations; Interpretations of Statutory 
and Regulatory Provisions

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) is amending the 
General Administrative Regulations to implement the statutory mandates 
of section 533 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (1998 Research Act). The intended effect of this 
final rule is to provide procedures for responding to requests for 
final agency interpretations regarding any provision of the Federal 
Crop Insurance Act (Act) or any regulation promulgated thereunder.

EFFECTIVE DATE: This rule is effective September 16, 1999.

FOR FURTHER INFORMATION CONTACT: Marian Jenkins, Assistant Deputy 
Administrator for Regional Service Offices, Federal Crop Insurance 
Corporation, United States Department of Agriculture, Stop Code 0805, 
1400 Independence Avenue, SW, Washington, DC 20250-0805., telephone 
(202) 720-5290.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

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

Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501 et seq.), the information collection and record keeping 
requirements included in this final rule have been submitted for 
approval to OMB. OMB has assigned control number 0563-0055 to the 
information collection and record keeping requirements.

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
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. Therefore, 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. The regulation does not require 
any more action on the part of the small entities than is required on 
the part of large entities. 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 and 7 CFR 400.169 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

    This rule finalizes the procedures required by the 1998 Research 
Act, enacted June 23, 1998. On Monday, December 21, 1998, FCIC 
published an interim rule in the Federal Register at 63 FR 70312-70313 
to establish procedures under which FCIC will provide a final agency 
determination in response to an inquiry regarding the interpretation of 
any provision of the Act or any regulation promulgated thereunder.
    Following publication of the interim rule, the public was afforded 
60 days to submit written comments. A total of four comments were 
received from one reinsured company. The comments received and FCIC's 
responses are as follows:
    Comment: The reinsured company stated that the sentence in the 
Background section that read ``Since these procedures are required by 
statute, it is impractical and contrary to the public interest to 
publish this rule for notice and comment prior to making the rule 
effective'' is incorrect. The comment further states that section 533 
of the 1998 Research Act does not require FCIC to establish procedures 
under which FCIC will provide a final agency determination.
    Response: The 1998 Research Act specifically requires FCIC to 
establish procedures under which FCIC shall provide a final agency 
determination

[[Page 50246]]

not later than 180 days after enactment of the subsection.
    Comment: The reinsured company stated that FCIC may not make its 
rule retroactive. Retroactive rule making requires specific statutory 
authority. By its retroactive rule making, the FCIC clouds every 
determination it made for the past four years.
    Response: The fact that reinsured companies can seek interpretation 
of provisions that previously existed does not mean that the rule is 
retroactive. This rule is intended to provide the mechanism for FCIC to 
consider requests for interpretation and this mechanism was not given a 
retroactive effect. Since Congress has mandated FCIC to provide such 
interpretation, there can be no avoidance of the consequences of their 
issuance on previous decisions, regardless of when such decisions were 
made. To limit requests to the interpretation of only new statutory or 
regulatory provisions would essentially render Section 533 of the 1998 
Research Act ineffective.
    Comment: The reinsured company states that Sec. 400.768(g) is 
confusing. The suggestion was made that the subsection should be 
divided into two subsections, with the first, subsection (g), 
applicable to reinsured companies and should state ``All final agency 
determinations that are not appealable to the National Appeals Division 
(NAD) are considered matters of general applicability.'' The second 
sentence of the current subsection (g) should be designated subsection 
(h) and identified as applicable to participants other than ``a private 
insurance company with a reinsurance agreement with FCIC or their 
agents, loss adjusters, employees or contractors.''
    Response: There is nothing in this subsection that affects the 
jurisdiction of NAD and NAD has no authority to hear disputes between 
reinsured companies and FCIC. Therefore, by its very terms, the 
provision is limited to persons other than reinsured companies. 
Therefore, no change has been made.
    Comment: The reinsured company states the word ``person'' in 
Sec. 400.768(g) is not defined and it should be limited to 
policyholders and applicants for crop insurance.
    Response: It is unnecessary since the NAD regulations are only 
applicable to participants as defined in 7 CFR part 11. Therefore, no 
change has been made. Section 400.765(b) has been revised by FCIC to 
clarify the applicable regulations for which a final agency 
determination will be provided.

List of Subjects in 7 CFR Part 400

    Administrative practice and procedure.

Final Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation is adopting the interim rule amending 7 CFR part 
400 which was published at 63 FR 70312 in the Federal Register of 
December 21, 1998 as final with the following changes:

PART 400--GENERAL ADMINISTRATIVE REGULATIONS

Subpart X--Interpretations of Statutory and Regulatory Provisions

    1. The authority citation for 7 CFR part 400 continues to read as 
follows:

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

    2. Revise Sec. 400.765(b) to read as follows:


Sec. 400.765  Basis and applicability.

* * * * *
    (b) Requesters may seek interpretations of those provisions of the 
Act and the regulations promulgated thereunder that are in effect for 
the crop year in which the request under this subpart is being made and 
the three previous crop years.
* * * * *


Sec. 400.767  [Amended]

    3. Amend Sec. 400.767(a)(1), to remove the word ``faximile'' and to 
add the word ``facsimile'.

    Signed in Washington, DC, on September 7, 1999.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 99-23796 Filed 9-15-99; 8:45 am]
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