[Federal Register Volume 79, Number 8 (Monday, January 13, 2014)]
[Rules and Regulations]
[Pages 2075-2084]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-31357]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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Federal Register / Vol. 79, No. 8 / Monday, January 13, 2014 / Rules
and Regulations
[[Page 2075]]
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Parts 400, 407 and 457
[Docket No. FCIC-11-0009]
RIN 0563-AC26
General Administrative Regulations; Mutual Consent Cancellation;
Food Security Act of 1985, Implementation; Denial of Benefits; and
Ineligibility for Programs Under the Federal Crop Insurance Act
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) finalizes the
General Administrative Regulations to revise regulations addressing
Ineligibility for Programs under the Federal Crop Insurance Act. The
intended effect of this action is to eliminate redundancies, improve
clarity, remove or update obsolete references, and add references to
other provisions regarding ineligibility for Federal crop insurance.
DATES: Effective date: This rule is effective February 12, 2014.
Applicability date: The changes will apply for the 2015 and
succeeding crop years for all crops with a contract change date after
February 12, 2014.
FOR FURTHER INFORMATION CONTACT: Tim Hoffmann, Product Administration
and Standards Division, Risk Management Agency, United States
Department of Agriculture, Beacon Facility, Stop 0812, Room 421, P.O.
Box 419205, Kansas City, MO 64141-6205, telephone (816) 926-7730.
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
In accordance with section 3507(d) of the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the information collection or
recordkeeping requirements included in this final rule, which were
filed under 0563-0085, have been submitted for approval to the Office
of Management and Budget (OMB). When OMB notifies us of its decision,
if approval is denied, we will publish a document in the Federal
Register providing notice of what action we plan to take.
E-Government Act Compliance
FCIC is committed to complying with the E-Government Act of 2002,
to promote the use of the Internet and other information technologies
to provide increased opportunities for citizen access to Government
information and services, and for other purposes.
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.
Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments. The review reveals that this regulation will not have
substantial and direct effects on Tribal governments and will not have
significant Tribal implications.
Regulatory Flexibility Act
FCIC certifies that this regulation will not have a significant
economic impact on a substantial number of small entities. Program
requirements for the Federal crop insurance program are the same for
all producers regardless of the size of their farming operation.
However, FCIC does waive certain administrative fees for limited
resource farmers to help ensure that small entities are given the same
opportunities as large entities to obtain crop insurance. This
regulation provides the rules regarding ineligibility for crop
insurance under the Act based on actions or inactions of the producer,
such as violations of the Controlled Substance Act, debarment from
Federal government programs, and failure to pay premiums and
administrative fees when due. As such, all producers are treated
equally under this regulation. A Regulatory Flexibility Analysis has
not been prepared since this regulation does not have an unduly
burdening impact on small entities, and therefore, this regulation is
exempt from the provisions of the Regulatory Flexibility Act (5 U.S.C.
605).
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.
[[Page 2076]]
Environmental Evaluation
This action is not expected to have a significant economic impact
on the quality of the human environment, health, or safety. Therefore,
neither an Environmental Assessment nor an Environmental Impact
Statement is needed.
Background
This rule finalizes changes to 7 CFR part 400 by revising subpart
U--Ineligibility for Programs Under the Federal Crop Insurance Act that
were published by FCIC on December 5, 2011, as a notice of proposed
rulemaking in the Federal Register at 76 FR 75799--75805. The public
was afforded 61 days to submit comments after the regulation was
published in the Federal Register.
A total of 25 comments were received from 4 commenters. The
commenters were insurance providers and an insurance service
organization.
The public comments received regarding the proposed rule and FCIC's
responses to the comments are as follows:
General Comment
Comment: A commenter questioned whether the provisions in the
proposed rule would apply only to convictions that occur after the
effective date of the final rule.
Response: Yes. The laws and regulations in effect at the time of a
conviction will apply.
Section 400.677 Definitions
Comment: A commenter stated the definition of ``conviction'' is
vague, will lead to delays in determinations, and is unclear what the
effective date of the conviction will be for purposes of determining
ineligibility.
Response: FCIC does not agree the definition of ``conviction'' is
vague or will result in delays in determinations. The definition only
defines the term; it does not include provisions regarding the
effective date or consequences of a conviction. The effective date and
duration of ineligibility due to a conviction is provided in section
400.683. No changes were made as a result of this comment.
Comment: A commenter questioned the phrase ``functional equivalent
of a judgment'' within the definition of ``conviction,'' and states the
definition of the term ``conviction'' should be limited to ``criminal
judgments.''
Response: FCIC agrees the reference to other resolutions that are
the functional equivalent of a judgment is not necessary because the
definition already includes the phrase ``a judgment or any other
determination of guilt.'' The commenter did not define ``criminal
judgment'' or state how it would differ from the proposed definition of
``conviction'' which includes ``a judgment or any other determination
of guilt of a criminal offense by any court of competent
jurisdiction.'' Accordingly, the reference to other resolutions that
are the functional equivalent of a judgment were removed in the final
rule; however, no change was made to limit the definition to ``criminal
judgments.''
Comment: A commenter questioned what role the Excluded Parties List
System (EPLS) plays in the Ineligible Tracking System (ITS) for the
insurance provider.
Response: The EPLS and ITS are separate sources of data, each with
a separate function and purpose. ITS is a list of persons who have been
determined to be ineligible for crop insurance because of various
reasons related to the crop insurance program. This list is created and
maintained by FCIC. The EPLS is a list of persons who have met the
criteria for inclusion and whose names were submitted by all government
agencies to the General Services Administration (GSA). GSA creates and
maintains the EPLS. Therefore, to the extent that FCIC reports to GSA
ineligible persons who meet the criteria for inclusion in the EPLS,
there is some overlap of the two lists. However, there are persons on
the EPLS who may not appear on the ITS because of violations related to
other government programs. Similarly, there are persons included on the
ITS who do not appear on the ELPS because they do not meet the criteria
from inclusion. There is no role for the insurance provider regarding
submitting data to the EPLS. However, insurance providers are precluded
from insuring or doing business with anyone on the ITS or the EPLS.
Therefore, the insurance provider is required to check both the ITS and
EPLS to ensure that it is not insuring or doing business with an
ineligible person.
Comment: A commenter questioned whether the definition of the EPLS
will change how the insurance provider transmits or receives
information.
Response: The rule does not provide instructions regarding how
insurance providers transmit or receive any applicable information
regarding the EPLS. Since the ELPS is maintained by GSA, GSA will
provide information to the public on how it can be accessed. This rule
is just intended to provide notice to the insurance providers that they
do need to access to EPLS to ensure that it is not insuring or doing
business with an ineligible person.
Comment: A commenter questioned the timeframe for the ``meaningful
opportunity to contest'' and whether the definition of ``meaningful
opportunity to contest'' is a change from the notification process
provided in the 2011 Ineligible Tracking System Handbook that allows 30
days from the date of Notice of Debt for the insured to challenge the
debt.
Response: Nothing in this rule is intended to change the
established time frames for filing for mediation, arbitration or
judicial review contained in existing regulations, policy provisions,
and procedures. To the extent that any time frame will be changed, such
change will occur in the applicable regulation, policy provision, or
procedure. Therefore, no changes have been made as a result of this
comment.
Comment: A commenter questioned whether the term ``Livestock Price
Reinsurance Agreement'' should be defined and whether the provisions of
the rule apply to policies covered under the Livestock Price
Reinsurance Agreement.
Response: The provisions contained within 7 CFR, part 400, subpart
U apply to all policies insured under the Federal Crop Insurance Act,
including those reinsured under the Livestock Price Reinsurance
Agreement. FCIC agrees the term ``Livestock Price Reinsurance
Agreement'' should be defined in the final rule. The definition was
added and the term was referenced where applicable in the final rule.
Section 400.679 Criteria for Ineligibility
Comment: A few commenters stated the provisions in section
400.679(d) should apply only to individuals and not to all ``persons''
as defined in the rule.
Response: FCIC agrees and has made the changes in section 400.679
and other applicable sections in the final rule.
Comment: A commenter stated the references to the regulations at 7
CFR part 3017 are incorrect because those regulations are obsolete and
have been replaced with 2 CFR part 180 and 2 CFR part 417.
Response: FCIC agrees 7 CFR part 3017 is obsolete. All references
to 7 CFR part 3017 have been corrected in the final rule to reference 2
CFR part 180 and 2 CFR part 417. Further, these are no longer the only
provisions related to debarment since permanent debarment has been
added by the 2008 Farm Bill. Therefore, FCIC has clarified the
[[Page 2077]]
provisions in section 400.679 to make the distinction between
suspensions and debarments under 2 CFR part 180 and 2 CFR part 417 and
debarments under 7 U.S.C. 2209j.
Comment: A few commenters stated sections 400.679(c) and (f) are
vague, ambiguous, and impose an unnecessary administrative burden on
insurance providers and insured producers. They state subsection (f) is
ambiguous because it is unclear whether the phrase ``ineligible
person,'' refers to persons made ineligible under 2 CFR part 417,
previously 7 CFR part 3017, or all persons ineligible under section
400.679 of the proposed rule. They also state the phrase ``knowingly
doing business'' will impose an unnecessary administrative burden on
the insurance providers if it is applied to ineligible persons outside
of 2 CFR part 180 and 2 CFR part 417.
Response: The phrase ``ineligible person'' in section 400.679(f) of
the proposed rule referred to persons found ineligible under 2 CFR part
180 and 2 CFR part 417, previously 7 CFR part 3017, and 7 U.S.C. 2209j,
as a result of the 2008 Farm Bill. The language in the final rule has
been amended to refer to persons debarred or suspended under 2 CFR part
180, 2 CFR part 417, and 7 U.S.C. 2209j to provide more clarity. With
respect to the burdens, both 2 CFR parts 180 and 417 makes it clear
that knowingly doing business with an ineligible person can subject a
person to debarment. This applies to all persons, including insurance
providers so FCIC cannot change the requirement or exempt insurance
providers. As part of normal business operations, insurance providers
must be in compliance with USDA regulations, policies and procedures
regarding debarment, suspension and eligibility. FCIC has revised the
provisions to clarify that it only applies to knowingly doing business
with debarred persons as required by the debarment regulations and
statutes.
Comment: A commenter stated section 400.679(e) should be eliminated
or limit its application to those persons who have been listed in the
EPLS.
Response: FCIC understands that there may be problems of
identifying persons who have committed crimes for knowingly defrauding
the United States. Further, as drafted, the proposed rule presumed that
permanent debarment was automatic after such a conviction but there is
still a process that must be followed for the Secretary to debar a
person and once that process is completed, the debarred person will be
reported to the EPLS. In addition, to make clear that this applies to
persons listed on the EPLS, FCIC has referenced debarments under 2 CFR
part 180, 2 CFR part 417, and 7 U.S.C. 2209j.
Section 400.680 Controlled Substance
Comment: A commenter questioned the logic of barring someone
convicted of a controlled substance violation from obtaining Federal
crop insurance. The commenter stated there is no statutory authority
for barring someone convicted of possession of or trafficking in a
controlled substance, and the references to such in the rule should be
deleted. The commenter stated that Chapter 13 of Title 21 is not
applicable to the Federal crop insurance program because eligibility
for Federal crop insurance is contingent upon various ``payments'' and
the term ``Federal benefit'' does not include any benefit for which
payments are required for eligibility.
Response: FCIC disagrees that there is no statutory authority for
barring someone convicted of possession of or trafficking in a
controlled substance. The statutory provisions of Chapter 13 of Title
21 regarding convictions for the possession of or trafficking in a
controlled substance are applicable to Federal crop insurance because
eligibility for Federal crop insurance is not contingent upon any
payment. Therefore, no changes have been made as a result of this
comment.
Comment: A commenter stated that convictions for possession of or
trafficking a controlled substance do not result in automatic denial of
Federal benefits, or denial of such benefits for a set amount of time,
according to Title 21. The determination regarding the denial of
Federal benefits and for how long is at the court's discretion;
therefore, section 400.680 is incorrect.
Response: FCIC agrees the language in the proposed rule was
inaccurate regarding automatic denial of benefits under the Act for
conviction of the possession of or trafficking in controlled
substances. The final rule has been amended to be consistent with the
provisions of Title 21 regarding such convictions.
Section 400.682 Determination and Notification
Comment: A commenter questioned whether National Appeals Division
(NAD) appealable disputes are changing.
Response: Neither the proposed rule or final rule change appealable
disputes under the NAD regulations.
Section 400.683 Period of Ineligibility
Comment: A commenter stated the term ``crop year'' for determining
when ineligibility begins for a person convicted of a controlled
substance violation is vague and needs to be further defined or
expanded.
Response: The proposed rule did not define the term ``crop year.''
The term ``crop year'' is defined in the policy for applicable
commodities, and the public was not provided the opportunity to comment
on those definitions under the proposed rule. In addition, the
applicability of the term ``crop year'' regarding persons convicted
under Federal or State law of planting, cultivation, growing,
producing, harvesting or storing a controlled substance is statutory.
Comment: A commenter stated they understood that they, as an
insurance provider, would deny coverage to an applicant who is not a
United States citizen, United States non-citizen national, or a
qualified alien, but were not aware of any obligation or requirement to
report such individuals as part of the ITS process.
Response: Sections 400.682 and 400.684 of the proposed rule did
provide that insurance providers must notify FCIC of applicants who are
not a United States citizen, United States non-citizen national, or a
qualified alien and that such individuals would be placed on the ITS.
FCIC agrees that insurance providers are not required to report
individuals who are not a United States citizen, United States non-
citizen national, or a qualified alien to FCIC. FCIC also agrees that
such individuals are not placed on ITS if the sole reason they are
ineligible is because they are not a United States citizen, United
States non-citizen national, or a qualified alien. The final rule has
been amended to remove the reporting requirement of such individuals
and the reference that such individuals would be placed on the ITS.
Section 400.684 Effect of Ineligibility
Comment: A couple of commenters stated the proposed rule had two
subsections labeled ``b'' under section 400.684.
Response: FCIC agrees and has made the applicable changes in the
final rule.
Comment: A commenter stated they agree with the consolidation of
the provisions in 7 CFR, part 400, subpart F, into 7 CFR, part 400,
subpart U, to eliminate redundancies. However, the commenter also
stated the provisions in 7 CFR, part 400, subpart F, that allowed
insurance providers to continue to receive reinsurance if the insurance
provider follows all the regulations and procedures were not retained
and consolidated in the proposed rule. The commenter stated the
elimination of those provisions could result in an insurance provider
being penalized
[[Page 2078]]
even though it had followed all of the applicable regulations and
procedures.
Response: FCIC agrees the provisions of 7 CFR, part 400, subpart F,
regarding the continuation of reinsurance in cases involving controlled
substance violations where the insurance provider followed all FCIC
procedures and regulations should have been retained and consolidated
in the proposed rule. The applicable provisions have been added to the
final rule.
Comment: A commenter stated that subsections 400.684(b)(3) and (4),
for general and limited liability partnerships and joint ventures,
respectively, are the same and could be combined.
Response: FCIC agrees the provisions for general partnerships,
limited liability partnerships and joint ventures are repetitive and
although legally there may be distinctions between these entities, they
are being treated the same for the purposes of this final rule.
Therefore, FCIC has combined the provisions and renumbers the
subsequent provisions accordingly.
Comment: A few commenters stated section 400.684(b)(5)(redesignated
as 400.684(b)(4)) is ambiguous, denies appeal rights and liability
protections to insured producers and insurance providers, could
adversely affect a person's eligibility for program benefits even when
that person is not a party to a contract, and that FCIC should revise
or eliminate the subsection because it creates a burden that outweighs
the potential benefits.
Response: FCIC does not agree the subsection is ambiguous, denies
any appeal rights or liability protections or could affect a person who
is not a party to the applicable policy. The provision applies to
different types of entities and specifies that it applies to the
persons who are in control of the actions of such entities or are
responsible for the action or inaction that resulted in the
ineligibility. Since entities have no ability to take action except
through the persons conducting the business of the entity, it is
appropriate to hold such individuals responsible for their actions or
inactions. Further, appeal rights will be afforded such individuals the
same as they would for any other person determined to be ineligible.
While certain state laws protect individuals within certain entities,
the crop insurance program is funded with taxpayer dollars and FCIC has
the responsibility to ensure those dollars are properly spent. The
provisions are necessary to ensure the integrity of the Federal crop
insurance program and prevent producers from circumventing their
ineligibility by hiding behind the fa[ccedil]ade of an entity.
Therefore, no changes have been made as a result of this comment.
Section 400.686 Administration and Maintenance
Comment: A commenter stated that subsection 400.686(d) should be
rewritten to read ``AIPs must check to ensure that the persons with
whom they are doing business are eligible to participate in the
programs authorized under the Act. The ITS does not include all persons
ineligible to receive government benefits, such as persons debarred,
disqualified or suspended from receiving government benefits as a
result of being listed in EPLS.''
Response: FCIC disagrees with the commenters suggested changes. The
provision applies to all participants in the program, and that includes
not only insurance providers but it also includes partners,
cooperators, and contractors, to ensure that the persons with whom they
are doing business are eligible to participate in the programs
authorized under the Act. The provision has been clarified to specify
that insurance providers, partners, cooperators, and contractors must
check ITS and other sources, such as the EPLS, to identify ineligible
persons. Further, there appears to be some confusion regarding the
EPLS. The EPLS is a source of information about certain persons who are
ineligible for certain benefits or transactions. The government agency
that reported the person to EPLS actually determined the person's
ineligibility.
In addition to the changes described above, FCIC has made minor
editorial changes, revisions to specific sections of 7 CFR, part 400,
subpart U, and revisions to 7 CFR, parts 407 and 457 as follows:
Part 400, Subpart U
1. Revised the definition of ``debt'' and ``delinquent debt'' for
consistency with Sec. 400.682 and Sec. 400.684 regarding debtors that
file bankruptcy. The definitions in the proposed rule were in conflict
with the existing provisions regarding the eligibility of a person in
bankruptcy in section 400.683(b)(1). The final rule clarifies that only
discharge of the debt in bankruptcy will restore eligibility.
2. Revised Sec. 400.682(a) because of the inconsistency in the
proposed rule regarding bankruptcy. The intent of the proposed rule was
to specify that filing for bankruptcy did not make a person eligible
for crop insurance. To be eligible the debt must be discharged in
bankruptcy. However, nothing in this rule was intended to abrogate any
existing bankruptcy laws regarding the collection of a debt while the
producer is in bankruptcy. Therefore, FCIC has clarified that a debtor
who has filed for bankruptcy may be notified of the amount of debt owed
and their ineligibility for insurance; however, no request for payment
of the debt can be made, unless approved in writing by the Office of
General Counsel. The clarified language will ensure that insurance
providers do not request payment of a debt when they are aware the
debtor has filed bankruptcy.
3. Revised Sec. 400.683 to distinguish between suspensions and
debarments under 2 CFR part 180 and 2 CFR part 417 and debarments under
7 U.S.C. 2209j because the effective date for each is different and
that was not clear in the proposed rule.
4. Revised Sec. 400.684(a)(1) to clarify that filing bankruptcy
does not make an ineligible person eligible for crop insurance or
preclude the ineligible person from being placed on the ITS. There was
an inconsistency in the proposed rule and the intent was to not allow
debtors to be eligible for insurance until their debt was discharged in
bankruptcy and FCIC had revised the provisions to be consistent. This
does not change the law regarding the collection of debts from persons
in bankruptcy so FCIC has clarified that while insurance providers are
precluded from requesting payment of the debt once a person files
bankruptcy, such filing does not make the person eligible to obtain
crop insurance.
5. Revised Sec. 400.684(b)(3) to include limited partnerships and
limited liability companies. The proposed rule impacted partners and
members of limited partnerships and limited liability companies
differently than members of limited liability partnerships, which was
not the intent of FCIC. In addition, the proposed rule created program
vulnerability because it would allow certain partners and members to
evade ineligibility determinations. The revision will address the
program vulnerability and ensure equal treatment of partners and
members of limited partnerships, limited liability partnerships, and
limited liability companies. Also revised Sec. 400.684(b)(3) to
include references to joint ventures because although they may be
legally different, they are treated the same as of limited
partnerships, limited liability partnerships, and limited liability
companies for the purposes of this rule. As a result, Sec.
400.684(b)(4) has been deleted and Sec. 400.684(b)(5) has been
redesignated as Sec. 400.684(b)(4).
[[Page 2079]]
6. Revised Sec. 400.684(b)(5) (redesignated Sec. 400.684(b)(4))
to remove limited partnerships and limited liability companies. The
proposed rule impacted partners and members of limited partnerships and
limited liability companies differently than members of limited
liability partnerships, which was not the intent of FCIC. In addition,
the proposed rule created program vulnerability because it would allow
certain partners and members to evade ineligibility determinations. The
revision will address the program vulnerability and ensure equal
treatment of partners and members of limited partnerships, limited
liability partnerships, and limited liability companies.
Part 407, Area Risk Insurance Policy Basic Provisions
1. Revise sections 2(k) and (p) to be consistent with the
provisions in 7 CFR, part 400, subpart U. After it had published the
proposed rule for 7 CFR, part 400, subpart U, FCIC discovered the Area
Risk Insurance Policy Basic Provisions regarding debt for persons in
bankruptcy were inconsistent with the existing provisions.
Part 457, Common Crop Insurance Policy Basic Provisions
1. Revise section 2(f) to be consistent with the provisions in 7
CFR, part 400, subpart U. After it had published the proposed rule for
7 CFR, part 400, subpart U, FCIC discovered the Common Crop insurance
Policy Basic Provisions regarding debt for persons in bankruptcy were
inconsistent with the existing provisions.
List of Subjects in 7 CFR Part 400, 407 and 457
Administrative practice and procedure, crop insurance, reporting
and recordkeeping requirements.
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation amends 7 CFR parts 400, 407 and 457 as follows:
PART 400--GENERAL ADMINISTRATIVE REGULATIONS
0
1. The authority citation for 7 CFR part 400 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(o).
Subpart C [Removed and Reserved]
0
2. Remove and reserve subpart C.
Subpart F [Removed and Reserved]
0
3. Remove and reserve subpart F.
0
4. Revise subpart U to read as follows:
Subpart U--Ineligibility for Programs Under the Federal Crop Insurance
Act
400.675 Purpose.
400.676 [Reserved]
400.677 Definitions.
400.678 Applicability.
400.679 Criteria for ineligibility.
400.680 Controlled substance.
400.681 Written payment agreement.
400.682 Determination and notification.
400.683 Period of ineligibility.
400.684 Effect of ineligibility.
400.685 Criteria for regaining eligibility.
400.686 Administration and maintenance.
Subpart U--Ineligibility for Programs Under the Federal Crop
Insurance Act
Sec. 400.675 Purpose.
This subpart prescribes conditions under which a person may be
determined to be ineligible to participate in any program administered
under the authority of the Federal Crop Insurance Act. This subpart
also establishes the criteria for regaining eligibility.
Sec. 400.676 [Reserved]
Sec. 400.677 Definitions.
As used in this subpart:
Act means the Federal Crop Insurance Act (7 U.S.C. 1501-1524).
Applicant means a person who has submitted an application for crop
insurance coverage under the Act.
Authorized person means any current or past officer, employee,
elected official, managing general agent, agent, or contractor of an
insurance provider, FCIC, or any other government agency whose duties
require access to the ITS to administer the Act.
Controlled substance has the same meaning provided in 7 CFR
3021.610.
Conviction means a judgment or any other determination of guilt of
a criminal offense by any court of competent jurisdiction, whether
entered upon a verdict or plea, including a plea of no contest.
Date of delinquency means: The termination date specified in the
applicable policy for administrative fees and premiums owed for
insurance issued under the authority of the Act, and any interest and
penalties on those amounts, if applicable; and the due date specified
in the notice to the person of the amount due for any other amounts due
the insurance provider or FCIC for insurance issued under the authority
of the Act. Other amounts due include, but are not limited to,
indemnities, prevented planting payments, or replant payments found not
to have been earned or that were overpaid, premium billed with a due
date after the termination date for the crop year in which premium is
earned, and any interest, administrative fees, and penalties on such
amounts, if applicable. Payments postmarked or received before the date
of delinquency by the insurance provider or its agent for debts owed to
the insurance provider, or by FCIC for debts owed to FCIC, are not
delinquent.
Debt means an amount of money that has been determined to be owed
by any person to FCIC or an insurance provider, excluding money owed to
an insurance provider's agent, under any program administered under the
Act. The debt may have arisen from nonpayment of interest, penalties,
premium, or administrative fee; overpayment of indemnity, prevented
planting or replant payment; cost of collection; or other causes. A
debt does not include debts discharged in bankruptcy.
Debtor means a person who owes a debt and that debt is delinquent.
Delinquent debt means a debt that is not satisfied on or before the
date of delinquency. To avoid delinquency or ineligibility due to a
delinquent debt, a debtor may enter into a written payment agreement
acceptable to the insurance provider or FCIC to pay any such debt as
long as all payments are made by the due dates specified in such
written payment agreement. A delinquent debt does not include debts
discharged in bankruptcy or any debt to an insurance provider's agent.
Employer Identification Number (EIN) means a Tax Identification
Number issued by the Internal Revenue Service used to identify a
business entity, and may also be referred to as a Federal Tax
Identification Number.
Excluded Parties List System (EPLS) means a list maintained by the
General Services Administration that provides a source of current
information about persons who are excluded or disqualified from covered
transactions, including the date the person was determined ineligible
and the date the period of ineligibility ends.
Federal Crop Insurance Corporation (FCIC) means a wholly owned
government corporation within the USDA.
Ineligible person means a person who is denied participation in any
program administered under the authority of the Act.
Ineligible Tracking System (ITS) means an electronic system to
identify persons who are ineligible to participate in any program
pursuant to this subpart.
Insurance Provider means a legal entity which has entered into a
Standard Reinsurance Agreement, Livestock Price Reinsurance Agreement,
or other reinsurance agreement, as
[[Page 2080]]
applicable, with FCIC for the applicable reinsurance year.
Livestock Price Reinsurance Agreement means a cooperative financial
assistance agreement between FCIC and an insurance provider to deliver
eligible livestock price insurance contracts under the authority of the
Act and establishes the terms and conditions under which FCIC will
provide subsidy and reinsurance on eligible livestock price insurance
policies sold.
Meaningful opportunity to contest means the opportunity for the
insured to resolve disagreements with a decision by the insurance
provider through requesting a review of the decision by the insurance
provider, mediation, arbitration, or judicial review, as applicable.
Person means an individual, partnership, association, corporation,
estate, trust, or other legal entity, and wherever applicable, a State
or political subdivision or agency of a State. ``Person'' does not
include the United States Government or any agency thereof.
Qualified alien has the same meaning provided in the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1641).
Social Security Number (SSN) means an individual's Social Security
Number as issued under the authority of the Social Security Act.
Standard Reinsurance Agreement (SRA) means a cooperative financial
assistance agreement between FCIC and an insurance provider to deliver
eligible crop insurance contracts under the authority of the Act and
establishes the terms and conditions under which FCIC will provide
subsidy and reinsurance on eligible crop insurance policies sold.
Substantial beneficial interest has the same meaning as contained
in the applicable policy.
USDA means the United States Department of Agriculture.
United States non-citizen national has the same meaning provided in
the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (8 U.S.C. Sec. 1408).
Written payment agreement means a written document between a debtor
and the insurance provider, or FCIC, that is signed and dated by all
applicable parties to satisfy financial obligations of the debtor with
scheduled installment payments under conditions that modify the terms
of the original debt in accordance with Sec. 400.681.
Sec. 400.678 Applicability.
This subpart applies to any program administered under the
authority of the Act, including but not limited to:
(a) The catastrophic risk protection plan of insurance;
(b) The additional coverage plans of insurance as authorized under
section 508(c) of the Act;
(c) Private insurance products authorized under section 508(h) or
523(d) of the Act and reinsured by FCIC; and
(d) Persons entering contracts or cooperative agreements under
sections 506(l), 522(c), 522(d), or 524(a) of the Act.
Sec. 400.679 Criteria for ineligibility.
Except as otherwise provided, a person is ineligible to participate
in any program administered under the authority of the Act if the
person meets one or more of the following criteria:
(a) Has a delinquent debt:
(1) The existence and delinquency of the debt must be verifiable.
(2) The person has to be provided a meaningful opportunity to
contest the debt.
(3) If the person contests the debt, such action does not delay or
preclude:
(i) Effect of the determination of ineligibility;
(ii) Determination or notification of ineligibility in accordance
with Sec. 400.682;
(iii) Termination of the applicable crop insurance policies; or
(iv) Ineligible persons being reported in accordance with Sec.
400.682 or the ineligible persons being recorded in the ITS.
(4) If the person is determined not to owe the debt, eligibility is
reinstated retroactive to the date of the determination of
ineligibility, any applicable policies will be reinstated, and any
applicable indemnity, prevented planting or replant payment earned may
be paid provided the person has continued to comply with the terms of
the policy;
(b) Is an individual and has been convicted of a controlled
substance violation according to Sec. 400.680;
(c) Has been disqualified under section 515(h) of the Act.;
(d) Is an individual and is not a United States citizen, United
States non-citizen national, or a qualified alien. Such individuals may
not be recorded in the ITS; however, such individuals are ineligible
under the provisions of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996, 8 U.S.C. 1611;
(e) Has been suspended or debarred for committing a crime specified
in 2 CFR part 180 or 2 CFR part 417, or 7 U.S.C. 2209j (Ineligibility
determinations will not be stayed pending review. However, reversal of
the determination of ineligibility will reinstate eligibility
retroactive to the date of the determination of ineligibility, and any
applicable policies will be reinstated); or
(f) Has been debarred for knowingly doing business with a person
debarred or suspended under 2 CFR part 180 or 2 CFR part 417 or 7
U.S.C. 2209j.
Sec. 400.680 Controlled substance.
(a) This section implements section 1764 of the Food Security Act
of 1985 (Pub. L. 99-198) and Chapter 13 of Title 21 requiring the
denial of Federal Benefits, including crop insurance, to individuals
convicted of controlled substance violations in accordance with
paragraphs (b) and (c) of this section.
(b) Notwithstanding any other provision of law, an individual will
be ineligible to participate in any program authorized under the Act,
as provided in Sec. 400.683, if the individual is convicted under
Federal or State law of planting, cultivating, growing, producing,
harvesting, or storing a controlled substance in any crop year.
(c) Notwithstanding any other provision of law, an individual may,
as determined by the court, be ineligible to participate in any program
authorized under the Act, as provided in Sec. 400.683, if the person
is convicted under Federal or State law of possession of or trafficking
in a controlled substance.
Sec. 400.681 Written payment agreement.
(a) Written payment agreements shall:
(1) Require scheduled installment payments that will allow for full
repayment of the debt within the time frame allotted in paragraph
(a)(2) of this section;
(2) Not exceed two years in duration; and
(3) Not be modified, replaced, or consolidated after it has been
executed in accordance with paragraph (b) of this section.
(b) To avoid being determined to be ineligible through the
execution of a written payment agreement:
(1) For a debt arising from any unpaid premium, administrative
fees, or catastrophic risk protection fees:
(i) Only one written payment agreement is permitted per termination
date. A written payment agreement may cover multiple crops provided
they all have the same termination date; and
(ii) The written payment agreement must be signed by both parties,
the debtor and the insurance provider or FCIC, as applicable, on or
before the
[[Page 2081]]
termination date specified in the applicable policy to prevent an
ineligible determination for a delinquent debt.
(2) For all other debts, the written payment agreement must be
signed by both parties, the debtor and the insurance provider or FCIC,
as applicable, on or before the due date specified in the notice to the
person of the amount due to prevent an ineligible determination for a
delinquent debt.
Sec. 400.682 Determination and notification.
(a) The insurance provider must send a written notice of the debt
to the person, including the time frame in which the debt must be paid,
and provide the person with a meaningful opportunity to contest the
amount or existence of the debt. Once a debtor has filed bankruptcy and
the insurance provider is formally informed of such through the court
or the debtor, no request for payment of the debt can be made, unless
approved in writing by the Office of General Counsel. The debtor may be
notified of the amount of debt and ineligibility for crop insurance.
(1) The insurance provider shall evaluate the person's response, if
any, and determine if the debt is owed and delinquent.
(2) Upon request by FCIC, the insurance provider shall submit all
documentation related to the debt to FCIC.
(b) If an insurance provider or any other person has evidence that
a person meets criteria set forth in Sec. 400.679(a), (b), (c), (e) or
(f), they must immediately notify FCIC.
(c) After the insurance provider determines a person has met one or
more of the criteria in Sec. 400.679 and notifies FCIC, FCIC will
issue and mail a Notice of Ineligibility to the person's last known
address and to the insurance provider. Notices sent to such address
will be conclusively presumed to have been received by that person.
(d) The Notice of Ineligibility will state the criteria upon which
the determination of ineligibility has been based, a brief statement of
the facts to support the determination, the time period of
ineligibility, and the right to appeal the determination to be placed
on the ITS in accordance with paragraph (e) of this section.
(e) Within 30 days of receiving the Notice of Ineligibility, the
ineligible person may appeal FCIC's determination to be placed on ITS
to the National Appeals Division in accordance with 7 CFR part 11. The
existence and amount of the debt is determined by the insurance
provider, not FCIC; therefore, those determinations are not appealable
to the National Appeals Division.
(f) If the person appeals FCIC's determination to be placed on ITS
to the National Appeals Division, the insurance provider will be
notified and provided with an opportunity to participate in the
proceeding, if permitted by 7 CFR part 11.
Sec. 400.683 Period of ineligibility.
(a) The beginning of the period of ineligibility will be:
(1) For ineligibility as a result of a delinquent debt, beginning
on the date stated in the applicable policy;
(2) For ineligibility as a result of a conviction under Federal or
State law of:
(i) Planting, cultivating, growing, producing, harvesting, or
storing a controlled substance, the beginning of the crop year in which
the individual is convicted; or
(ii) Possession of or trafficking in a controlled substance, the
beginning of the crop year in which the individual is convicted, unless
determined otherwise by the court.
(3) For ineligibility as a result of a disqualification, debarment,
or suspension under 515(h) of the Act, 2 CFR part 180, 2 CFR part 417,
the date the person was disqualified, debarred, or suspended by
debarring official, Administrative Law Judge, or such other person
authorized to take such action; and
(4) For debarment under 7 U.S.C. 2209j, the beginning of the crop
year in which the person is convicted.
(b) The duration of the period of ineligibility will be:
(1) For ineligibility as a result of a delinquent debt, until the
debt has been paid in full discharged in bankruptcy, or the person has
executed a written payment agreement.
(2) For ineligibility as a result of a conviction under Federal or
State law of:
(i) Planting, cultivating, growing, producing, harvesting, or
storing a controlled substance, four crop years succeeding the crop
year in which the person was convicted; and
(ii) Possession of a controlled substance or trafficking in a
controlled substance, in addition to the time of ineligibility imposed
in paragraph (b)(2)(i) of this section, until the period of time
imposed by a court has expired.
(3) For ineligibility as a result of a disqualification, debarment,
or suspension under section 515(h) of the Act, or 2 CFR part 180 and 2
CFR part 417 until the period of time of disqualification, debarment,
or suspension, as applicable, has expired.
(4) For ineligibility as a result of not being a United States
citizen, United States non-citizen national, or a qualified alien,
until the date such individual becomes a United States citizen, United
States non-citizen national, or a qualified alien.
(5) For ineligibility as a result of a conviction falling under 7
U.S.C. 2209j, permanent unless otherwise determined by the Secretary of
Agriculture for a period of not less than 10 years.
Sec. 400.684 Effect of ineligibility.
(a) The effect of ineligibility depends on the basis for the
determination.
(1) Persons who are ineligible as a result of a delinquent debt are
ineligible for crop insurance authorized under the Act for a certain
time period in accordance with Sec. 400.683. Filing for bankruptcy
does not make the person eligible for crop insurance or preclude the
ineligible person from being placed on the ITS in accordance with Sec.
400.684(b)(1).
(2) Persons who are ineligible as a result of a suspension or
debarment are precluded from:
(i) Participating in all programs authorized under the Act,
including but not limited to:
(A) Obtaining crop insurance;
(B) Acting as an agent, loss adjuster, insurance provider, or
affiliate, as defined in the Standard Reinsurance Agreement or
Livestock Price Reinsurance Agreement, or successor agreements;
(C) Entering into any contracts with FCIC under sections 506(l) and
section 522(c) of the Act; and
(D) Entering into any cooperative agreements or partnerships under
sections 506(l), 522(d) and 524(a) of the Act; and
(ii) Participating in any other covered transaction as specified in
2 CFR part 180 and 2 CFR part 417.
(3) Persons who are ineligible because of disqualification under
section 515(h) of the Act are precluded from participating in all
programs authorized under the Act indicated in paragraph (a)(2)(i) of
this section, and those listed in section 515(h)(3)(B) and (C) of the
Act.
(4) Individuals who are ineligible because of a conviction of a
violation of the controlled substance provisions or are not a United
States citizen, United States non-citizen national, or a qualified
alien are precluded from participating in any program authorized under
the Act indicated in paragraph (a)(2)(i) of this section.
(5) Persons who are ineligible as a result of a conviction falling
under 7 U.S.C. 2209j, are precluded from
[[Page 2082]]
participating in any program offered by USDA.
(b) Once a person has been determined to be ineligible:
(1) The ineligible person will be placed on the ITS and may be
reported to other government agencies, unless the ineligible person is
an individual and the sole reason for ineligibility is because the
individual is not a United States citizen, United States non-citizen
national, or qualified alien.
(2) If the ineligible person is an individual:
(i) All crop insurance policies in which the ineligible person is
the sole insured will terminate if the person is ineligible for any
reason other than a controlled substance violation, or be void if the
person is ineligible due to conviction of a controlled substance
violation according to Sec. 400.680, and the person will remain
ineligible for crop insurance for the applicable period specified in
Sec. 400.683; and
(ii) The ineligible person must be reported on all policies in
which the ineligible person has a substantial beneficial interest in
the applicant or insured, and the insured share under such policy will
be reduced commensurate with the ineligible person's substantial
beneficial interest in the applicant or insured for as long as the
ineligible person remains ineligible in accordance with Sec. 400.683.
(3) If the ineligible person is a general partnership, limited
partnership, limited liability partnership, limited liability company,
or joint venture and is ineligible as a result of:
(i) A delinquent debt:
(A) All partners or members of the ineligible general partnership,
limited partnership, limited liability partnership, limited liability
company, or joint venture will be ineligible;
(B) The ineligible general partnership, limited partnership,
limited liability partnership, limited liability company, or joint
venture and all partners and members of the ineligible general
partnership, limited partnership, limited liability partnership,
limited liability company, or joint venture will remain ineligible for
crop insurance for the applicable period specified in Sec. 400.683;
(C) All crop insurance policies in which the ineligible general
partnership, limited partnership, limited liability partnership,
limited liability company, or joint venture is the sole insured will
terminate;
(D) All crop insurance policies in which the ineligible partner or
member is the sole insured will terminate; and
(E) The ineligible general partnership, limited partnership,
limited liability partnership, limited liability company, or joint
venture and all ineligible partners or members must be reported on any
other policy in which they have a substantial beneficial interest in
the applicant or insured, and the insured share under such policies
will be reduced commensurate with the ineligible general partnership,
limited partnership, limited liability partnership, limited liability
company, or joint venture or the ineligible partners' or members'
substantial beneficial interest in the applicant or insured for as long
as they remain ineligible in accordance with Sec. 400.683; or
(ii) Meeting the criteria specified in Sec. 400.679(c), (e) or
(f):
(A) All crop insurance policies in which the ineligible general
partnership, limited partnership, limited liability partnership,
limited liability company, or joint venture is the sole insured will
terminate, and the ineligible general partnership, limited partnership,
limited liability partnership, limited liability company, or joint
venture will remain ineligible for crop insurance for the applicable
period specified in Sec. 400.683; and
(B) The ineligible general partnership, limited partnership,
limited liability partnership, limited liability company, or joint
venture must be reported on any other policy in which it has a
substantial beneficial interest in the applicant or insured, and the
insured share under such policies will be reduced commensurate with the
ineligible general partnership's, limited partnership's, limited
liability partnership's, limited liability company's, or joint
venture's substantial beneficial interest in the applicant or insured
for as long as it remains ineligible in accordance with Sec. 400.683.
(4) If the ineligible person is an association, estate, trust,
corporation, or other similar entity, and is ineligible as a result of:
(i) A delinquent debt:
(A) Any partners, members, shareholders, administrators, executors,
trustees, or grantors may be individually ineligible if the delinquent
debt occurred as a result of their actions or inactions, as determined
by the insurance provider or FCIC;
(B) All policies in which the ineligible association, estate,
trust, corporation, or other similar entity is the sole insured will
terminate, and it will remain ineligible for crop insurance for the
applicable period specified in Sec. 400.683.
(C) The ineligible association, estate, trust, corporation, or
other similar entity must be reported on any other policy in which it
has a substantial beneficial interest in the applicant or insured, and
the insured share under such policies will be reduced commensurate with
the ineligible entity's substantial beneficial interest in the
applicant or insured for as long as the person remains ineligible in
accordance with Sec. 400.683;
(D) All policies in which a partner, member, shareholder,
administrator, executor, trustee, or grantor determined ineligible
according to Sec. 400.684(b)(4)(i)(A) is the sole insured will
terminate, and the person will remain ineligible for crop insurance for
the applicable period specified in Sec. 400.683; and
(E) The ineligible partner, member, shareholder, administrator,
executor, trustee, or grantor must be reported on any other policy in
which they have a substantial beneficial interest in the applicant or
insured, and the insured share under such policies will be reduced
commensurate with the ineligible person's substantial beneficial
interest in the applicant or insured for as long as the person remains
ineligible in accordance with Sec. 400.683; or
(ii) Meeting the criteria specified in Sec. 400.679(c), (e) or
(f):
(A) All crop insurance policies in which the ineligible
association, estate, trust, corporation, or other similar entity is the
sole insured will terminate, and the ineligible association, estate,
trust, corporation, or other similar entity will remain ineligible for
crop insurance for the applicable period specified in Sec. 400.683;
and
(B) The ineligible association, estate, trust, corporation, or
other similar entity must be reported on any other policy in which it
has a substantial beneficial interest in the applicant or insured, and
the insured share under such policies will be reduced commensurate with
the ineligible association, estate, trust, corporation, or other
similar entity's substantial beneficial interest in the applicant or
insured for as long as it remains ineligible in accordance with Sec.
400.683.
(5) If an applicant or insured is a corporation, partnership, joint
venture, trust, corporation, limited liability company, limited
liability partnership, limited partnership, or other similar entity
that was created to conceal the interest of an ineligible person or to
evade the ineligibility determination of a person with a substantial
beneficial interest in the applicant or insured, the policy will be
void.
(6) All crop insurance policies in which the ineligible person is
insured as landlord/tenant will terminate on the next termination date.
The other person(s) on such policy may submit a new application for
crop insurance
[[Page 2083]]
coverage on or before the applicable sales closing date to obtain
insurance coverage for the crop, if they are otherwise eligible for
such coverage.
(c) The spouse and minor child of an individual insured is
considered to be the same as the individual for purposes of this
subpart and subject to the same ineligibility, except when:
(1) The individual is ineligible due to a conviction of a
controlled substance violation in accordance with Sec. 400.680;
(2) The individual is ineligible as a result of a felony conviction
for knowingly defrauding the United States in connection with any
program administered by USDA;
(3) The individual is ineligible because they are not a United
States citizen, United States non-citizen national, or a qualified
alien;
(4) The individual is ineligible as a result of a disqualification,
debarment, or suspension;
(5) The spouse can prove they are legally separated or otherwise
legally separate under the applicable State dissolution of marriage
laws; or
(6) The minor child has a separate legal interest in such person or
is engaged in a separate farming operation from the individual.
(d) Notwithstanding Sec. 400.684(f), when a policy is voided in
accordance with this subpart:
(1) No indemnities or payments will be paid for the voided policy;
(2) Any indemnities or payments already made for the voided policy
will be declared overpayments and must be repaid in full; and
(3) No premiums will be due and any premium paid will be refunded
except when the policy is void due to a conviction of a controlled
substance violation according to Sec. 400.680, in which case the
insured will still be required to pay 20 percent of the premium the
insured would otherwise be required to pay to offset costs in the
servicing of the policy.
(e) When the insured share of a policy is reduced in accordance
with this subpart:
(1) Any indemnities or payments commensurate with the share reduced
already made will be declared overpayments and must be repaid in full;
and
(2) Any premiums paid by the insured commensurate with the share
reduced will be refunded.
(f) Any insurance written by an insurance provider to any person
who is ineligible under the provisions of this subpart is not eligible
for reinsurance by FCIC. All premium subsidies, expenses, or other
payments made by FCIC for insurance written for any person who is
ineligible under the provisions of this subpart must be immediately
refunded to FCIC. However, with regard to policies that would be void
due to a conviction of a controlled substance violation according to
Sec. 400.680, if the insurance provider follows the procedures of FCIC
and the requirements of the regulations, reinsurance will continue to
be provided under the reinsurance agreement on the policy unless it is
shown that the agent or insurance provider had knowledge of the facts
which would indicate ineligibility on the part of the insured and
failed to act on that knowledge.
Sec. 400.685 Criteria for regaining eligibility.
After the period of ineligibility as specified in Sec. 400.683 has
ended, the ineligible person is eligible to participate in programs
authorized under the Act, provided the person meets all eligibility
requirements.
(a) After a person regains eligibility for crop insurance when
their policy was terminated or voided, the person must submit a new
application for crop insurance coverage on or before the applicable
sales closing date to obtain insurance coverage for the crop. If the
date of regaining eligibility occurs after the applicable sales closing
date for the crop, the person may not participate until the following
year unless that crop policy allows for applications to be accepted
after the sales closing date.
(b) If a person who was determined ineligible according to this
subpart is subsequently determined to be an eligible person for crop
insurance through mediation, arbitration, appeal, or judicial review,
such person's policies will be reinstated effective at the beginning of
the crop year for which the producer was determined ineligible, and
such person will be entitled to all applicable benefits under such
policies, provided the person meets all eligibility requirements and
complies with the terms of the policy.
Sec. 400.686 Administration and maintenance.
(a) Ineligible producer data will be maintained in a system of
records established and maintained by the Risk Management Agency in
accordance with the Privacy Act (5 U.S.C. 552a).
(1) The ITS contains identifying information of the ineligible
person, including but not limited to, name, address, telephone number,
SSN or EIN, reason for ineligibility, and time period of ineligibility.
(2) Information in the ITS may be used by an authorized person. The
information may be furnished to other users as may be appropriate or
required by law or regulation, including but not limited to, FCIC
contracted agencies, other government agencies, credit reporting
agencies, and collection agencies, and in response to judicial orders
in the course of litigation. The individual information may be made
available in the form of various reports and notices.
(3) Supporting documentation regarding the determination of
ineligibility and reinstatement or regaining of eligibility will be
maintained by FCIC, or its contractors, insurance providers, Federal
agencies, and State agencies. This documentation will be maintained and
retained consistent with the electronic information contained within
the ITS.
(b) Information may be entered into the ITS by FCIC employees or
contractors, or insurance providers.
(c) All persons applying for crop insurance policies or with an
existing policy, issued or reinsured by FCIC, will be subject to
validation of their eligibility status against the ITS. Applications,
transfers, or benefits approved and accepted are considered approved or
accepted subject to review of eligibility status in accordance with
this subpart.
(d) Insurance providers, partners, cooperators, and contractors
must check to ensure that the persons with whom they are doing business
are eligible to participate in the programs authorized under the Act.
Insurance providers, partners, cooperators, and contractors must check
the ITS but the ITS may not include all persons ineligible to receive
government benefits, such as persons debarred, disqualified or
suspended from receiving government benefits by an agency other than
FCIC. Insurance providers, partners, cooperators, and contractors must
check other sources that contain ineligible persons, including but not
limited to EPLS, or successor list, provide data on persons ineligible
to participate in programs authorized under the Act.
PART 407--AREA RISK PROTECTION INSURANCE REGULATIONS
0
5. The authority citation for 7 CFR part 407 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(o).
0
6. Amend Sec. 407.9 as follows:
0
a. Amend section 2(k)(1)(i)(B) by adding the word ``or'' after the
semicolon at the end;
0
b. Amend section 2(k)(1)(i)(C) by removing the phrase ``; or'' and
adding a period in its place;
0
c. Remove section 2(k)(1)(i)(D);
[[Page 2084]]
0
d. Amend section 2(k)(1)(ii) by removing the phrase ``2(k)(2)(i)(A),
(B), (D) or (E)'' and adding the phrase ``2(k)(2)(i)(A), (B) or (D)''
in its place;
0
e. Amend section 2(k)(2)(i)(C) by adding the word ``or'' after the
semicolon at the end;
0
f. Amend section 2(k)(2)(i)(D) by removing the phrase ``; or'' and
adding a period in its place;
0
g. Remove section 2(k)(2)(i)(E);
0
h. Amend section 2(k)(2)(ii) by removing the phrase ``2(k)(2)(i)(A),
(B), (D) or (E)'' and adding the phrase ``2(k)(2)(i)(A), (B) or (D)''
in its place;
0
i. Revise section 2(k)(3)(iii); and
0
j. Amend section 2(p)(2) by removing the phrase ``or you file a
petition to discharge the debt in bankruptcy'' in the last sentence and
adding the phrase ``or you have your debts discharged in bankruptcy''
in its place.
The revised text reads as follows:
Sec. 407.9 Area risk protection insurance policy.
* * * * *
2. Life of Policy, Cancellation, and Termination.
* * * * *
(k) * * *
(3) * * *
(iii) Have your debts discharged in bankruptcy.
* * * * *
PART 457--COMMON CROP INSURANCE REGULATIONS
0
7. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
0
8. Amend Sec. 457.8 as follows:
0
a. Amend section 2(f)(1)(i)(B) by adding the word ``or'' after the
semicolon at the end;
0
b. Amend section 2(f)(1)(i)(C) by removing the phrase ``; or'' and
adding a period in its place;
0
c. Remove section 2(f)(1)(i)(D);
0
d. Amend section 2(f)(1)(ii) by removing the phrase ``2(f)(2)(i)(A),
(B), (D) or (E)'' and adding the phrase ``2(f)(2)(i)(A), (B) or (D)''
in its place;
0
e. Amend section 2(f)(2)(i)(C) by adding the word ``or'' after the
semicolon at the end;
0
f. Amend section 2(f)(2)(i)(D) by removing the phrase ``; or'' and
adding a period in its place;
0
g. Remove section 2(f)(2)(i)(E);
0
h. Amend section 2(f)(2)(ii) by removing the phrase ``2(f)(2)(i)(A),
(B), (D) or (E)'' and adding the phrase ``2(f)(2)(i)(A), (B) or (D)''
in its place;
0
i. Revise section 2(f)(3)(iii); and
0
j. Amend section 2(f)(5) by removing the phrase ``or you file a
petition to discharge the debt in bankruptcy'' in the last sentence and
adding the phrase ``or you have your debts discharged in bankruptcy''
in its place.
The revised text reads as follows:
Sec. 457.8 The application and policy.
* * * * *
2. Life of Policy, Cancellation, and Termination.
* * * * *
(f) * * *
(3) * * *
(iii) Have your debts discharged in bankruptcy.
* * * * *
Signed in Washington, DC, on December 20, 2013.
Brandon Willis,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2013-31357 Filed 1-10-14; 8:45 am]
BILLING CODE 3410-08-P