[Federal Register Volume 65, Number 16 (Tuesday, January 25, 2000)]
[Rules and Regulations]
[Pages 3781-3782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1702]



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 Rules and Regulations
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  Federal Register / Vol. 65, No. 16 / Tuesday, January 25, 2000 / 
Rules and Regulations  

[[Page 3781]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 400


General Administrative Regulations; Reinsurance Agreement--
Standards for Approval; Regulations for the 1997 and Subsequent 
Reinsurance Years

AGENCY:  Federal Crop Insurance Corporation, USDA.

ACTION:  Final rule.

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SUMMARY:  The Federal Crop Insurance Corporation (FCIC) is revising the 
General Administrative Regulations, Subpart-L Reinsurance Agreement--
Standards for Approval; Regulations for the 1997 and Subsequent 
Reinsurance Years. The intended effect of this rule is to clarify the 
time frame in which all requests for a final agency determination must 
be submitted.

EFFECTIVE DATES:  This rule is effective January 25, 2000.

FOR FURTHER INFORMATION CONTACT:  Heyward Baker, Director, Reinsurance 
Services Division, telephone (202) 720-4232.

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

    It has been determined by OMB that this rule is exempt from the 
information collection requirement contained under the Paperwork 
Reduction Act of 1995 (44 U.S.C. chapter 35).

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. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

Executive Order 13132

    The policies contained in this rule do not have any substantial 
direct effect on states, on the relationship between the national 
government and the states, or on the distribution of power and 
responsibilities among the various levels of government. Nor does this 
rule impose substantial direct compliance costs on state and local 
governments. Therefore, consultation with the states is not required.

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 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

    On August 22, 1988, FCIC has implemented a process in cases when it 
suspects a violation of the provisions of the Standard Reinsurance 
Agreement where it provides the applicable reinsured company with a 
copy of initial findings, allowed the reinsured company to respond, and 
then issued a final determination. If the reinsured company disputed 
the final determination, the reinsured company was required to appeal 
within 45 days of receipt of the determination to the Deputy Manager of 
FCIC.
    On May 1, 1995, FCIC revised this appeals process and now when a 
reinsured company disputed the final determination it was required to 
request a final agency determination from the Director of Compliance. 
The process also stated that the reinsured company ``may'' request the 
final agency determination within 45 days. A controversy has arisen 
with respect to whether the 45 day time frame is mandatory or 
permissive. Although FCIC has always treated the 45 day time frame as 
mandatory under both the old and new process, and the reinsured 
companies have routinely complied with this requirement, FCIC is 
revising the language to make it clear that the 45 day time frame is a 
mandatory requirement.
    FCIC is also revising the section to have all requests for a final 
agency determination be submitted to the Deputy Administrator for 
Insurance Services or the Deputy Administrator for Compliance to be in 
conformance with the renaming of titles in the recent reorganization.
    The changes in this rule do not change current requirements as 
understood by the reinsured companies and FCIC. This rule is merely 
interpretative and, therefore, exempt from the requirements for notice 
and comment and the 30 day delay in the effectiveness of this rule.

[[Page 3782]]

List of Subjects in 7 CFR Part 400

    Administrative practice and procedures, Claims, Crop insurance, 
Penalties.

Final Rule

    Accordingly, as set forth in the preamble, the Federal Crop 
Insurance Corporation hereby amends 7 CFR part 400 as follows:

PART 400--GENERAL ADMINISTRATIVE REGULATIONS

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

    Authority: 7 U.S.C. 1506(1), 1506(p).

    2. Section 400.169 is revised to read as follows:


Sec. 400.169  Disputes.

    (a) If the company believes that the Corporation has taken an 
action that is not in accordance with the provisions of the Standard 
Reinsurance Agreement or any reinsurance agreement with FCIC, except 
compliance issues, it may request the Deputy Administrator of Insurance 
Services to make a final administrative determination addressing the 
disputed action. The Deputy Administrator of Insurance Services will 
render the final administrative determination of the Corporation with 
respect to the applicable actions. All requests for a final 
administrative determination must be in writing and submitted within 45 
days after receipt after the disputed action.
    (b) With respect to compliance matters, the Compliance Field Office 
renders an initial finding, permits the company to respond, and then 
issues a final finding. If the company believes that the Compliance 
Field Office's final finding is not in accordance with the applicable 
laws, regulations, custom or practice of the insurance industry, or 
FCIC approved policy and procedure, it may request, the Deputy 
Administrator of Compliance to make a final administrative 
determination addressing the disputed final finding. The Deputy 
Administrator of Compliance will render the final administrative 
determination of the Corporation with respect to these issues. All 
requests for a final administrative determination must be in writing 
and submitted within 45 days after receipt of the final finding.
    (c) A company may also request reconsideration by the Deputy 
Administrator of Insurance Services of a decision of the Corporation 
rendered under any Corporation bulletin or directive which bulletin or 
directive does not interpret, explain, or restrict the terms of the 
reinsurance agreement. The company, if it disputes the Corporation's 
determination, must request a reconsideration of that determination in 
writing, within 45 days of the receipt of the determination. The 
determinations of the Deputy Administrator will be final and binding on 
the company. Such determinations will not be appealable to the Board of 
Contract Appeals.
    (d) Appealable final administrative determinations of the 
Corporation under paragraph (a) or (b) of this section may be appealed 
to the Board of Contract Appeals in accordance with the provisions of 
subtitle A, part 24 of title 7 of the Code of Federal Regulations.

    Signed in Washington, D.C., on January 18, 2000.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 00-1702 Filed 1-24-00; 8:45am]
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