[Federal Register Volume 67, Number 169 (Friday, August 30, 2002)]
[Rules and Regulations]
[Pages 55689-55691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22258]



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 Rules and Regulations
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  Federal Register / Vol. 67, No. 169 / Friday, August 30, 2002 / Rules 
and Regulations  

[[Page 55689]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

RIN 0563-AB89


Common Crop Insurance Regulations

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Interim rule.

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

SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the 
Common Crop Insurance Regulations: Sunflower Seed Crop Insurance 
Provisions (7 CFR 457.108), Coarse Grains Crop Insurance Provisions (7 
CFR 457.113), Safflower Crop Insurance Provisions (7 CFR 457.125), Dry 
Pea Crop Insurance Provisions (7 CFR 457.140), Rice Crop Insurance 
Provisions (7 CFR 457.141), and Dry Bean Crop Insurance Provisions (7 
CFR 457.150) 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 August 28, 2002. Written comments and 
opinions on this interim rule will be accepted until close of business 
October 29, 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 October 29, 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, Various 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., DST, 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 the 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 
(2002 Farm Bill) was enacted. Section 10003 of the 2002 Farm Bill 
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)

[[Page 55690]]

not licensed under State law, but are in compliance with State law 
regarding warehouses, and have entered into a commodity storage 
agreement with the Commodity Credit Corporation. Currently, for the 
purposes of quality adjustment, all samples must be analyzed by a grain 
grader licensed under the authority of either, the United States Grain 
Standards Act or United States Agricultural Marketing 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 2002 Farm Bill, and such 
changes need to be made by the August 31, 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) of the Sunflower Seed Crop 
Insurance Provisions to add language to permit quality adjustment by 
the other statutorily authorized entities.
    2. FCIC amends section 11(e)(3) of the Coarse Grains Crop Insurance 
Provisions to add language to permit quality adjustment by the other 
statutorily authorized entities.
    3. FCIC amends section 11(d)(3) of the Safflower Crop Insurance 
Provisions to add language to permit quality adjustment by the other 
statutorily authorized entities.
    4. FCIC amends section 12(e)(2) of the Dry Pea Crop Insurance 
Provisions to add language to permit quality adjustment by the other 
statutorily authorized entities.
    5. FCIC amends section 12(d)(3) of the Rice Crop Insurance 
Provisions to add language to permit quality adjustment by the other 
statutorily authorized entities.
    6. FCIC amends section 13(e)(3) of the Dry Bean Crop Insurance 
Provisions to add language to permit quality adjustment by the other 
statutorily authorized entities.

List of Subjects in 7 CFR Part 457

    Crop insurance.

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


Sec. 457.108  Sunflower seed crop insurance provisions.

    The sunflower seed 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) * * *
    (iii) 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
    (iv) With regard to substances or conditions injurious to human or 
animal health, the samples are analyzed by a laboratory approved by us.
* * * * *

    3. Amend Sec. 457.113 as follows:
    a. Revise the introductory text to read as set forth below;
    b. Amend section 11(e)(3)(ii) of the crop insurance provisions by 
removing ``and'' at the end thereof; and
    c. Revise section 11(e)(3)(iii) and add section 11(e)(3)(iv) of the 
crop insurance provisions, to read as follows:


Sec. 457.113  Coarse grains crop insurance provisions.

    The coarse 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.
* * * * *
    (e) * * *
    (3) * * *
    (iii) With regard to deficiencies in quality (except test weight, 
which may be determined by our loss adjuster), 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
    (iv) With regard to substances or conditions injurious to human or 
animal health, the samples are analyzed by a laboratory approved by us.
* * * * *

    4. Amend Sec. 457.125 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. 457.125  Safflower crop insurance provisions.

    The safflower 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 adjuster), the samples are analyzed 
by:
    (A) A grader licensed under the United States Agricultural 
Marketing Act or the United States Warehouse Act;
    (B) A grader licensed under State law and employed by a warehouse 
operator who has a storage agreement with the Commodity Credit 
Corporation; or

[[Page 55691]]

    (C) A 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 are analyzed by a laboratory approved by us.
* * * * *

    5. Amend Sec. 457.140 as follows:
    a. Revise the introductory text to read as set forth below;
    b. Amend section 12(e)(2)(iii) of the crop insurance provisions by 
removing ``and'' at the end thereof; and
    c. Revise section 12(e)(2)(iv) and add section 12(e)(2)(v) of the 
crop insurance provisions, to read as follows:


Sec. 457.140  Dry pea crop insurance provisions.

    The dry pea 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.
* * * * *
    (e) * * *
    (2) * * *
    (iv) With regard to deficiencies in quality (except test weight, 
which may be determined by our loss adjuster), the samples are analyzed 
by:
    (A) A grader licensed under the United States Agricultural 
Marketing Act or the United States Warehouse Act;
    (B) A grader licensed under State law and employed by a warehouse 
operator who has a storage agreement with the Commodity Credit 
Corporation; or
    (C) A 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 are analyzed by a laboratory approved by us.
* * * * *

    6. Amend Sec. 457.141 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. 457.141  Rice crop insurance provisions.

    The rice 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 (except test weight, 
which may be determined by our loss adjuster), the samples are analyzed 
by:
    (A) A grader licensed under the United States Agricultural 
Marketing Act or the United States Warehouse Act;
    (B) A grader licensed under State law and employed by a warehouse 
operator who has a storage agreement with the Commodity Credit 
Corporation; or
    (C) A 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 are analyzed by a laboratory approved by us.
* * * * *

    7. Amend Sec. 457.150 as follows:
    a. Revise the introductory text to read as set forth below;
    b. Amend section 13(e)(3)(iii) of the crop insurance provisions by 
removing ``and'' at the end thereof; and
    c. Revise section 13(e)(3)(iv) and add section 13(e)(3)(v) of the 
crop insurance provisions, to read as follows:


Sec. 457.150  Dry bean crop insurance provisions.

    The dry bean crop insurance provisions for the 2003 and succeeding 
crop years are as follows:

United States Department of Agriculture

Federal Crop Insurance Corporation

* * * * *
    13. Settlement of Claim.
* * * * *
    (e) * * *
    (3) * * *
    (iv) With regard to deficiencies in quality (except test weight, 
which may be determined by our loss adjuster), the samples are analyzed 
by:
    (A) A grader licensed under the United States Agricultural 
Marketing Act or the United States Warehouse Act;
    (B) A grader licensed under State law and employed by a warehouse 
operator who has a storage agreement with the Commodity Credit 
Corporation; or
    (C) A 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 are analyzed by a laboratory approved by us.
* * * * *

    Signed in Washington, DC on August 27, 2002.
Byron E. Anderson,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. 02-22258 Filed 8-28-02; 8:58 am]
BILLING CODE 3410-08-P