[Federal Register Volume 67, Number 125 (Friday, June 28, 2002)]
[Rules and Regulations]
[Pages 43525-43526]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-16482]



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 Rules and Regulations
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  Federal Register / Vol. 67, No. 125 / Friday, June 28, 2002 / Rules 
and Regulations  

[[Page 43525]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AB87


Common Crop Insurance Regulations

AGENCY: Federal Crop Insurance Corporation.

ACTION: Interim rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the 
Common Crop Insurance Regulations, Small Grains Crop Provisions (7 CFR 
457.101) and Canola and Rapeseed Crop Insurance Provisions (7 CFR 
457.161) to implement the quality loss adjustment procedures contained 
in section 10003 of the Farm Security and Rural Investment Act of 2002 
(Public Law 107-171).

DATES: This rule is effective June 26, 2002. Written comments and 
opinions on this interim rule will be accepted until close of business 
August 27, 2002 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 August 27, 2002.

ADDRESSES: Interested persons are invited to submit written comments to 
the Director, Product Development Division, Risk Management Agency, 
United States Department of Agriculture, 6501 Beacon Drive, Stop 0812, 
Kansas City, MO 64133. Comments titled ``Common Crop Insurance 
Regulations, Small Grains Crop Provisions'' may be sent via the 
Internet to: [email protected]. A copy of each response will 
be available for public inspection and copying from 7 a.m. to 4:30 
p.m., CST, Monday through Friday, except holidays, at the above 
address.

FOR FURTHER INFORMATION CONTACT: Timothy Hoffmann, Director, Product 
Development Division, Risk Management Agency, at the Kansas City, MO, 
address listed above, telephone (816) 926-3707.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    The Office of Management and Budget (OMB) has determined that this 
rule is not significant for the purpose of Executive Order 12866 and, 
therefore, it has not been reviewed by OMB.

Paperwork Reduction Act of 1995

    Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 
35), the collections of information in this rule have been approved by 
the Office of Management and Budget (OMB) under control number 0563-
0053 through February 28, 2005.

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 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 UMRA.

Executive Order 13132

    It has been determined under section 1(a) of Executive Order 13132, 
Federalism, that this rule does not have sufficient implications to 
warrant consultation with the States. The provisions contained in this 
rule will not have a substantial direct effect on States, or on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.

Regulatory Flexibility Act

    This regulation will not have a significant 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. 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. 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. With respect to any action taken by FCIC under 
the terms of the crop insurance policy, the administrative appeal 
provisions published at 7 CFR part 11 must be exhausted before any 
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.

Background

    On May 13, 2002, the Farm Security and Rural Investment Act of 2002 
was enacted. Section 10003 of the Farm Security and Rural Investment 
Act of 2002 requires that FCIC accept evidence of quality of 
agricultural commodities that are delivered to warehouse operators that 
are: (1) Licensed under the United States Warehouse Act; (2) licensed 
under State law and have entered into a storage agreement with the 
Commodity Credit Corporation; or (3) not licensed under State law, but 
are in compliance with State law regarding warehouses, and have entered 
into a commodity storage agreement with the

[[Page 43526]]

Commodity Credit Corporation. Currently, for the purposes of quality 
adjustment, all samples must be analyzed by a grain grader licensed 
under the authority of the United States Grain Standards Act or the 
United States Warehouse Act.
    Since the changes to the quality adjustment provisions for certain 
crops are required by section 10003 of the Farm Security and Rural 
Investment Act of 2002, and such changes need to be made by the June 
30, 2002, contract change date to be effective for the 2003 crop year, 
it is impractical and contrary to the public interest to publish this 
rule for notice and comment prior to making this rule effective. 
However, comments are solicited for 60 days after the date of 
publication in the Federal Register and will be considered by FCIC 
before this rule is made final.
    1. FCIC amends section 11(d)(3)(iv) of the Small Grains Crop 
Provisions to add language to permit quality adjustment by the other 
statutorily authorized entities.
    2. FCIC amends section 12(d)(3)(iv) of the Canola and Rapeseed Crop 
Insurance Provisions to add language to permit quality adjustment by 
the other statutorily authorized entities.

List of Subjects in 7 CFR Part 457

    Common Crop Insurance Regulations.

Interim Rule

    Accordingly, for the reasons set forth in the preamble, the Federal 
Crop Insurance Corporation amends 7 CFR part 457, Common Crop Insurance 
Regulations, for the 2003 and succeeding crop years, as follows:

PART 457--COMMON CROP INSURANCE REGULATIONS

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

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

    2. Amend Sec. 457.101 as follows:
    a. Revise the introductory text to read as set forth below;
    b. Amend section 11(d)(3)(iii) of the crop insurance provisions by 
removing ``and'' at the end thereof; and
    c. Revise section 11(d)(3)(iv) and add section 11(d)(3)(v) of the 
crop insurance provisions, to read as follows:


Sec. 457.101  Small grains crop insurance.

    The small grains crop insurance provisions for the 2003 and 
succeeding crop years are as follows:

UNITED STATES DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

* * * * *

11. Settlement of Claim.

* * * * *
    (d) * * *
    (3) * * *
    (iv) With regard to deficiencies in quality (except test weight, 
which may be determined by our loss adjustor), the samples are 
analyzed by:
    (A) A grain grader licensed under the United States Grain 
Standards Act or the United States Warehouse Act;
    (B) A grain grader licensed under State law and employed by a 
warehouse operator who has a storage agreement with the Commodity 
Credit Corporation; or
    (C) A grain grader not licensed under State law, but who is 
employed by a warehouse operator who has a commodity storage 
agreement with the Commodity Credit Corporation and is in compliance 
with State law regarding warehouses; and
    (v) With regard to substances or conditions injurious to human 
or animal health, the samples analyzed by a laboratory approved by 
us.
* * * * *

    3. Amend Sec. 457.161 as follows:
    a. Revise the introductory text to read as set forth below;
    b. Amend section 12(d)(3)(iii) of the crop insurance provisions by 
removing ``and'' at the end thereof; and
    c. Revise section 12(d)(3)(iv) and add section 12(d)(3)(v) of the 
crop insurance provisions, to read as follows:


Sec. 457.161  Canola and rapeseed crop insurance provisions.

    The canola and rapeseed crop insurance provisions for the 2003 and 
succeeding crop years are as follows:

UNITED STATES DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

* * * * *

12. Settlement of Claim.

* * * * *
    (d) * * *
    (3) * * *
    (iv) With regard to deficiencies in quality, the samples are 
analyzed by:
    (A) A grain grader licensed under the United States Grain 
Standards Act or the United States Warehouse Act;
    (B) A grain grader licensed under State law and employed by a 
warehouse operator who has a storage agreement with the Commodity 
Credit Corporation; or
    (C) A grain grader not licensed under State law, but who is 
employed by a warehouse operator who has a commodity storage 
agreement with the Commodity Credit Corporation and is in compliance 
with State law regarding warehouses; and
    (v) With regard to substances or conditions injurious to human 
or animal health, the samples analyzed by a laboratory approved by 
us.
* * * * *

    Signed in Washington, DC on June 26, 2002.
Ross J. Davidson, Jr.,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 02-16482 Filed 6-26-02; 3:16 pm]
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