[Federal Register Volume 83, Number 53 (Monday, March 19, 2018)]
[Rules and Regulations]
[Pages 11867-11869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05466]


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DEPARTMENT OF AGRICULTURE

Farm Service Agency

7 CFR Part 761


Revision of Delegation of Authority for the State Executive 
Director (SED) for the Farm Loan Programs

AGENCY: Farm Service Agency, Department of Agriculture (USDA).

ACTION: Final rule.

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SUMMARY: This document amends the delegations of authority from the 
Farm Service Agency (FSA) Deputy Administrator of Farm Loan Programs 
(FLP). The change will specify that the Deputy Administrator 
redelegates certain authority to the State Executive Directors (SED). 
The change will also specify that SEDs may redelegate the authority to 
a Farm Loan Chief, Farm Loan Specialist, District Director, Farm Loan 
Manager, Senior Farm Loan Officer, Farm Loan Officer, Loan Analyst, 
Loan Resolution Specialist, or Program Technician to perform loan 
activities. This will ensure that certain loan documents can be signed 
off locally instead of requiring the FLP Deputy Administrator to have 
to sign off on certain loan documents.

DATES: Effective: March 19, 2018.

FOR FURTHER INFORMATION CONTACT: Bruce Mair; telephone: (202) 720-1645. 
Persons with disabilities who require alternative means for 
communication should contact the USDA Target Center at (202) 720-2600.

SUPPLEMENTARY INFORMATION: 

Background

    FSA makes and services a variety of direct and guaranteed loans to 
the nation's farmers and ranchers who are unable to obtain private 
commercial credit at reasonable rates and terms. FSA also provides 
direct loan customers with credit counseling and supervision to enhance 
their opportunity for success. FSA direct and guaranteed loan 
applicants are often beginning farmers and socially disadvantaged 
farmers who do not qualify for conventional loans because of 
insufficient net worth or established farmers who have suffered 
financial setbacks due to natural disasters or economic downturns. FSA 
tailors direct and guaranteed loans to a customer's needs and may be 
used to buy farmland and to finance agricultural production.
    The Consolidated Farm and Rural Development Act of 1972, as 
amended, (CONACT) (7 U.S.C. 1921-2009dd-7)) authorizes FSA's Direct and 
Guaranteed Farm Loan Programs.

Redelegation to and by SEDs

    As part of loan servicing, various real estate documents must be 
signed by FSA and the files must be on public record in certain states. 
Some of the real estate documents that FSA signs include, but are not 
limited to, lien satisfactions, partial releases, and subordinations. 
FSA's intent has always been for the real estate documents to be signed 
by FSA officials at the local level. In the past, the regulations in 7 
CFR part 1900 included specific wording concerning which employees were 
delegated with signature authority. In 2007, when FSA streamlined the 
FLP regulations, 7 CFR 761.1 broadened the regulatory text concerning 
FLP delegations, but the original intent as to who would have the 
authority to sign the real estate documents did not change. FSA 
recently determined that more specificity in 7 CFR 761.1 regarding the 
delegation of authority would be helpful and is therefore revising the 
regulation.
    FSA is amending the regulation in 7 CFR part 761 regarding the 
delegation of authority for the Deputy of Administrator of FLP to 
specify that the Deputy Administrator of FLP redelegates certain loan 
making and servicing authority to SEDs and when there is no loss to 
FSA, the SEDs may redelegate the authority to the Farm Loan Chief, Farm 
Loan Specialist, District Director, Farm Loan Manager, Senior Farm Loan 
Officer, Farm Loan Officer, Loan Analyst, Loan Resolution Specialist, 
or Program Technician. The revised delegation will clarify the 
authority for the Acting SED and other authorized officials to sign 
certain loan documents and to perform other loan activities for SEDs.

Notice and Comment

    In general, the Administrative Procedure Act (5 U.S.C. 553) 
requires that a notice of proposed rulemaking be published in the 
Federal Register and interested persons be given an opportunity to 
participate in the rulemaking through submission of written data, 
views, or arguments with or without opportunity for oral presentation, 
except that when the rule involves a matter relating to public 
property, loans, grants, benefits, or contracts section 553 does not 
apply. This rule involves matters relating to loans and is therefore 
being published as a final rule without the prior opportunity for 
comments.

Effective Date

    The Administrative Procedure Act (5 U.S.C. 553) provides generally 
that

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before rules are issued by Government agencies, the rule is required to 
be published in the Federal Register, and the required publication of a 
substantive rule is to be not less than 30 days before its effective 
date. However, as noted above, one of the exceptions is that section 
553 does not apply to rulemaking that involves a matter relating to 
loans. Therefore, because this rule relates to loans, the 30-day 
effective period requirement in section 553 does not apply. This final 
rule is effective when published in the Federal Register.

Executive Orders 12866, 13563, 13771, and 13777

    Executive Order 12866, ``Regulatory Planning and Review,'' and 
Executive Order 13563, ``Improving Regulation and Regulatory Review,'' 
direct agencies to assess all costs and benefits of available 
regulatory alternatives and, if regulation is necessary, to select 
regulatory approaches that maximize net benefits (including potential 
economic, environmental, public health and safety effects, distributive 
impacts, and equity). Executive Order 13563 emphasized the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility. Executive Order 13777, 
``Enforcing the Regulatory Reform Agenda,'' established a federal 
policy to alleviate unnecessary regulatory burdens on the American 
people.
    In section 3(d), Executive Order 12866 defines ``regulation'' or 
``rule.'' In the definition, it specifically does not include 
regulations or rules that are limited to agency organization, 
management, or personnel matters. This rule relates to internal agency 
management; therefore, it is exempt from the provisions of Executive 
Order 12866.
    Executive Order 13771, ``Reducing Regulation and Controlling 
Regulatory Costs,'' requires that in order to manage the private costs 
required to comply with Federal regulations that for every new 
significant or economically significant regulation issued, the new 
costs must be offset by the elimination of at least two prior 
regulations. This rule does not rise to the level required to comply 
with Executive Order 13771.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA, 
Pub. L. 104-121), generally requires an agency to prepare a regulatory 
flexibility analysis of any rule whenever an agency is required by the 
Administrative Procedure Act or any other law to publish a proposed 
rule, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
This rule is not subject to the Regulatory Flexibility Act because FSA 
is not required by the Administrative Procedure Act or any other law to 
publish a proposed rule for this rulemaking.

Environmental Review

    The environmental impacts of this final rule have been considered 
in a manner consistent with the provisions of the National 
Environmental Policy Act (NEPA, 42 U.S.C. 4321-4347), the regulations 
of the Council on Environmental Quality (40 CFR parts 1500-1508), and 
the FSA regulations for compliance with NEPA (7 CFR part 799). FSA has 
determined that the provisions identified in this final rule are 
administrative in nature, solely relating to internal agency 
management, and do not constitute a major Federal action that would 
significantly affect the quality of the human environment, individually 
or cumulatively. Provisions for signature authorities are purely 
administrative and would not alter any environmental impacts associated 
with any loans. Therefore, as this rule presents administrative 
clarifications only, FSA will not prepare an environmental assessment 
or environmental impact statement for this regulatory action.

Executive Order 12372

    Executive Order 12372, ``Intergovernmental Review of Federal 
Programs,'' requires consultation with State and local officials that 
would be directly affected by proposed Federal financial assistance. 
The objectives of Executive Order 12372 are to foster an 
intergovernmental partnership and a strengthened Federalism, by relying 
on State and local processes for State and local government 
coordination and review of proposed Federal Financial assistance and 
direct Federal development. For reasons specified in the final rule 
related notice regarding 7 CFR part 3015, subpart V (48 FR 29115, June 
24, 1983), the programs and activities within this rule are excluded 
from the scope of Executive Order 12372, which requires 
intergovernmental consultation with State and local officials.

Executive Order 12988

    This rule has been reviewed under Executive Order 12988, ``Civil 
Justice Reform.'' This rule will not preempt State or local laws, 
regulations, or policies unless they represent an irreconcilable 
conflict with this rule. The rule will not have a retroactive effect. 
Before any judicial action may be brought regarding the provisions of 
this rule, the administrative appeal provisions of 7 CFR parts 11 and 
780 are to be exhausted.

Executive Order 13132

    This rule has been reviewed under Executive Order 13132, 
``Federalism.'' The policies contained in this rule do not have any 
substantial direct effect on States, on the relationship between the 
Federal government and the States, or the distribution of power and 
responsibilities among the various levels of government, except as 
required by law. Nor will this rule impose substantial direct 
compliance costs on State and local governments. Therefore, 
consultation with the States is not required.

Executive Order 13175

    This rule has been reviewed in accordance with the requirements of 
Executive Order 13175, ``Consultation and Coordination with Indian 
Tribal Governments.'' Executive Order 13175 requires Federal agencies 
to consult and coordinate with tribes on a government-to-government 
basis on policies that have tribal implications, including regulations, 
legislative comments or proposed legislation, and other policy 
statements or actions that have substantial direct effects on one or 
more Indian tribes, on the relationship between the Federal government 
and Indian tribes or on the distribution of power and responsibilities 
between the Federal government and Indian tribes.
    FSA has assessed the impact of this rule on Indian tribes and 
determined that this rule does not, to our knowledge, have tribal 
implications that require tribal consultation under Executive Order 
13175. If a Tribe requests consultation, FSA will work with the USDA 
Office of Tribal Relations to ensure meaningful consultation is 
provided.

Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Pub. L. 
104-4) requires Federal agencies to assess the effects of their 
regulatory actions on State, local, or Tribal governments, or the 
private sector. Agencies generally must prepare a written statement, 
including a cost-benefit analysis, for proposed and final rules with 
Federal mandates that may result in expenditures of $100 million or 
more in any 1 year for State, local, or Tribal governments, in the 
aggregate, or

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to the private sector. UMRA generally requires agencies to consider 
alternatives and adopt the more cost effective or least burdensome 
alternative that achieves the objectives of the rule. This rule 
contains no Federal mandates, as defined in Title II of UMRA, for 
State, local, and Tribal governments or private sector. Therefore, this 
rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3520), the rule does not change the approved information 
collection approved under OMB control number 0560-0238, General Program 
Administration.

E-Government Act Compliance

    FSA is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services and other purposes.

List of Subjects in 7 CFR Part 761

    Accounting, Loan programs--agriculture, Rural areas.

    For reasons discussed above, FSA amends 7 CFR chapter VII as 
follows:

PART 761--FARM LOAN PROGRAMS; GENERAL PROGRAM ADMINISTRATION

0
1. The authority citation for part 761 continues to read as follows:

    Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.

0
2. Revise Sec.  761.1(b) to read as follows:


Sec.  761.1  Introduction.

* * * * *
    (b) The Deputy Administrator:
    (1) Delegates to each State Executive Director within the State 
Executive Director's jurisdiction the authority, and in the absence of 
the State Executive Director, the person acting in that position, to 
act for, on behalf of, and in the name of the United States of America 
or the Farm Service Agency to do and perform acts necessary in 
connection with making and guaranteeing loans, such as, but not limited 
to, making advances, servicing loans and other indebtedness, and 
obtaining, servicing, and enforcing or releasing security and other 
instruments related to the loan. For actions that do not result in a 
loss to the Farm Service Agency, a State Executive Director may 
redelegate authorities received under this paragraph to a Farm Loan 
Chief, Farm Loan Specialist, District Director, Farm Loan Manager, or 
Senior Farm Loan Officer, Farm Loan Officer, Loan Analyst, Loan 
Resolution Specialist, or Program Technician.
    (2) May establish procedures for further redelegation or limitation 
of authority.
* * * * *

Steven J. Peterson,
Acting Administrator, Farm Service Agency.
[FR Doc. 2018-05466 Filed 3-16-18; 8:45 am]
BILLING CODE 3410-01-P