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 under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

40483

Vol. 65, No. 127

Friday, June 30, 2000

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 402, 407, and 457

RIN 0563–AB81

Catastrophic Risk Protection

Endorsement; Regulations for the 1999

and Subsequent Reinsurance Years;

Group Risk Plan of Insurance

Regulations for the 2000 and

Succeeding Crop Years, and the

Common Crop Insurance Regulations;

Basic Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Interim rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) amends the

Catastrophic Risk Protection

Endorsement (7 CFR part 402), the

Group Risk Plan of Insurance

Regulations (7 CFR part 407), and the

Common Crop Insurance Regulations,

Basic Provisions (7 CFR part 457) to

revise those provisions affected by the

changes in the administrative fees and

subsidies and the substitution of yields

in the producer’s actual production

history mandated by the Agricultural

Risk Protection Act of 2000.

EFFECTIVE DATE: This rule is effective

June 28, 2000. Written comments and

opinions on this rule will be accepted

until the close of business August 29,

2000 and will be considered when the

rule is to be made final.

ADDRESSES: Interested persons are

invited to submit written comments to

the Director, Product Development

Division, Federal Crop Insurance

Corporation, United States Department

of Agriculture, 6501 Beacon Drive, Stop

0812, Room 421, Kansas City, MO.

Comments titled ‘‘Administrative

Fees Due to Legislation’’ may be sent via

the Internet to

DirectorPDD@rm.fcic.usda.gov. A copy

of each response will be available for

public inspection and copying from 7:00

a.m. to 4:30 p.m., CDT, Monday through

Friday, except holidays, at the above

address.

FOR FURTHER INFORMATION CONTACT: For

further information and a copy of the

Cost Benefit Analysis, contact Louise

Narber, Insurance Management

Specialist, Research and Development,

Product Development Division, Federal

Crop Insurance Corporation, at the

Kansas City, MO, address listed above,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be

significant for the purposes of Executive

Order 12866 and, therefore, is subject to

review by the Office of Management and

Budget (OMB).

Cost Benefit Analysis

In accordance with section 6(a)(3)(D)

of Executive Order 12866, the Office of

Information and Regulatory Affairs,

OMB, has been notified Congress has

specified that the changes made by this

rule are to be effective for the 2001 crop

year and that to make this rule effective

for the 2001 crop year fall planted crops,

this rule must be published by the June

30, 2000, contract change date. A

preliminary Cost-Benefit Analysis has

been done and is available to interested

parties at the Kansas City address above.

In summary, the Cost Benefit Analysis

found that the benefits provided

outweigh associated costs. The crop

insurance policy changes contained in

this rule are required under the

Agricultural Risk Protection Act of

2000. The analysis finds that the

increases in the administrative fees for

the catastrophic risk protection level of

coverage from $60 per crop per county

to $100 per crop per county, for

additional coverage from $20 per crop

per county to $30 per crop per county,

and for limited coverage from $50 per

crop per county, not to exceed $200 per

county, and $600 for all counties, to $30

per crop per county with no limits may

modestly increase the costs to producers

but they will also reduce the overall

costs of the program to taxpayers. The

analysis also finds that giving producers

the option of replacing certain yields in

their actual production history (APH)

with 60 percent of the transitional yield

for the county will result in greater

coverage for producers that have been

hardest hit by disasters. Based on the

cost benefit analysis and the

requirements of the Agricultural Risk

Protection Act of 2000, FCIC finds this

regulation is in the best interest of the

overall crop insurance program.

Small Business Regulatory Enforcement

Fairness Act of 1996

This rule has been designated by the

Office of Information and Regulatory

Affairs, OMB, as a major rule under the

Small Business Regulatory Enforcement

Fairness Act of 1996 (Small Business

Act). Pursuant to section 808(2), the

Manager of FCIC has determined that

there is good cause for making this rule

effective less than 60 days after

submission of the rule to each House of

Congress and to the Comptroller

General. Congress has specified that the

changes made by this rule are to be

effective for the 2001 crop year. To be

effective for 2001 crop year fall planted

crops, the changes must be effective by

the June 30, 2000, contract change date.

Failure to implement this rule by the

June 30 contract change date will result

in the disparate treatment of producers

with 2001 crop year crops. Therefore,

delay of the implementation of this rule

to comply with the notice and public

procedure requirements of the Small

Business Act would be contrary to the

public interest.

Paperwork Reduction Act of 1995

Under the provisions of the

Paperwork Reduction Act of 1995 (44

U.S.C. chapter 35), the collections of

information for this rule have been

previously approved by OMB under

control number 0563–0053 through

April 30, 2001. The amendments set

forth in this rule do not revise the

content or alter the frequency of

reporting for any of the forms or

information collections cleared under

the above-referenced docket.

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 UMRA) for State, local, and tribal

governments or the private sector.

40484 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Rules and Regulations

Therefore, this rule is not subject to the

requirements of sections 202 and 205 of

UMRA.

Executive Order 13132

The provisions contained in this rule

will not have a substantial direct effect

on States, the relationship between the

national government and the States, or

on the distribution of power and

responsibilities among the various

levels of government. Therefore,

consultation with the States is not

required.

Regulatory Flexibility Act

This regulation will not have a

significant economic impact on a

substantial number of small entities.

The regulation does not require any

more action on the part of the small

entities than is required on the part of

large entities. Therefore, this action is

determined to be exempt from the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 605) and no Regulatory

Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance under

No. 10.450.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372

which require intergovernmental

consultation with State and local

officials. See the Notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115, June 24, 1983.

Executive Order 12988

This rule has been reviewed in

accordance with Executive Order 12988

on civil justice reform. The provisions

of this rule will not have a retroactive

effect. The provisions of this rule will

preempt State and local laws to the

extent such State and local laws are

inconsistent herewith. The

administrative appeal provisions

published at 7 CFR part 11 must be

exhausted before any action for judicial

review of any determination made by

FCIC may be brought.

Environmental Evaluation

This action is not expected to have a

significant economic impact on the

quality of the human environment,

health, and safety. Therefore, neither an

Environmental Assessment nor an

Environmental Impact Statement is

needed.

Background

This interim rule implements the

changes to the crop insurance policies

mandated by the Agricultural Risk

Protection Act of 2000. The Agricultural

Risk Protection Act of 2000 requires the

provisions to be implemented for the

2001 and subsequent crop years. Crop

insurance policies with a contract

change date prior to the effective date of

this rule will not be affected by these

provisions. Crop insurance policies with

a contract change date on or after the

effective date of this rule will receive

insurance under the terms of their

policy as revised by this rule. Since the

changes to the policy made by this rule

are required by statute, and the changes

must be made by the June 30, 2000,

contract change date to be fully

implemented for the 2001 crop year, it

is contrary to the public interest to

publish this rule for notice and

comment prior to making the 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 the Catastrophic Risk

Protection Endorsement to revise the

definition of ‘‘approved yield’’ to allow

for the substitution of 60 percent of the

transitional yield, change the

administrative fee from $60 to $100,

revise the requirement that the producer

pay the administrative fee, and remove

all references to limited coverage

because, as a result of changes to the

subsidy levels and administrative fee,

there is no longer a distinction between

limited and additional coverage.

2. FCIC amends the Group Risk Plan

of Insurance Basic Provisions to remove

all references to limited coverage

because, as a result of changes to the

subsidy levels and administrative fee,

there is no longer a distinction between

limited and additional coverage; revise

the definition of ‘‘additional coverage’’

to incorporate limited coverage; change

the administrative fee from $60 to $100

for catastrophic risk protection

coverage, remove all references to

administrative fees for limited coverage,

change the administrative fee from $20

to $30 for all coverages in excess of

catastrophic risk protection; and revise

the requirement that the producer pay

the administrative fee.

3. FCIC amends the Common Crop

Insurance Regulations, Basic Provisions

to remove all references to limited

coverage because, as a result of changes

to the subsidy levels and administrative

fee, there is no longer a distinction

between limited and additional

coverage; revise the definition of

‘‘additional coverage’’ to incorporate

limited coverage and the definition of

‘‘approved yield’’ to allow for the

substitution of 60 percent of the

transitional yield; remove all references

to administrative fees for limited

coverage, and change the administrative

fee from $20 to $30 for all coverages in

excess of catastrophic risk protection;

and revise the requirement that the

producer pay the administrative fee.

List of Subjects in 7 CFR Parts 402, 407,

and 457

Catastrophic risk protection

endorsement, Insurance provisions.

Interim Rule

Accordingly, as set forth in the

preamble, the Federal Crop Insurance

Corporation amends 7 CFR parts 402,

407, and 457 as follows:

PART 402—CATASTROPHIC RISK

PROTECTION ENDORSEMENT

1. The authority citation for 7 CFR

part 402 continues to read as follows:

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

2. Amend part 402 to revise the part

heading as set forth above;

3. Amend § 402.4 as follows:

a. Revise the introductory text of the

Catastrophic Risk Protection

Endorsement;

b. Amend section 1 of the

Catastrophic Risk Protection

Endorsement by revising the definition

of ‘‘approved yield;’’

c. Amend section 6 of the

Catastrophic Risk Protection

Endorsement to revise the introductory

text of paragraph (b) and paragraph

(b)(1);

d. Amend section 7(a) of the

Catastrophic Risk Protection

Endorsement by deleting the words

‘‘limited or’’ from the first and last

sentence and removing the phrase

‘‘unless the maximum administrative

fee would be exceeded’’ from the last

sentence.

§ 402.4 Catastrophic Risk Protection

Endorsement Provisions.

The Catastrophic Risk Protection

Endorsement Provisions for the 2001

and succeeding crop years are as

follows:

* * * * *

1. Definitions

* * * * *

Approved yield. The amount of

production per acre computed in

accordance with FCIC’s actual

production history program (7 CFR part

400, subpart G) or for crops not

included under 7 CFR part 400, subpart

G, the yield used to determine the

guarantee in accordance with the Crop

Provisions or the Special Provisions,

and any adjustments elected in

Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Rules and Regulations 40485

accordance with section 36 of the Basic

Provisions.

* * * * *

6. Annual Premium and

Administrative Fees

* * * * *

(b) In return for catastrophic risk

protection coverage, you must pay an

administrative fee to the insurance

provider within 30 days after you have

been billed by us, unless otherwise

specified in 7 CFR part 400 (You will be

billed by the date stated in the Special

Provisions);

(1) The administrative fee owed is

$100 for each crop in the county.

* * * * *

PART 407—GROUP RISK PLAN OF

INSURANCE REGULATIONS FOR THE

2001 AND SUCCEEDING CROP YEARS

1. The authority citation for 7 CFR

part 407 continues to read as follows:

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

2. Amend part 407 to revise the part

heading as set forth above;

3. Amend § 407.9 as follows:

a. Revise the introductory text;

b. Amend the seventh introductory

paragraph of Group Risk Plan Common

Policy by removing the words, ‘‘limited

or’’;

c. Revise the definition of ‘‘additional

coverage’’ in section 1 of the ‘‘Group

Risk Plan of Insurance Basic

Provisions’’;

d. Amend section 1 of the Group Risk

Plan of Insurance Basic Provisions by

removing the definition of ‘‘limited

coverage’’;

e. Amend section 1 of the Group Risk

Plan of Insurance Basic Provisions by

removing the phrase ‘‘as limited and

maximum amounts per acre’’ from the

definition of ‘‘subsidy’’;

f. Amend section 4(a) of the Group

Risk Plan of Insurance Basic Provisions

by removing the words ‘‘limited and’’

from the second sentence.

g. Amend section 5(a) of the Group

Risk Plan of Insurance Basic Provisions

by removing the words ‘‘limited and’’

from the second sentence.

h. Revise the introductory text of

section 8(a) and paragraph 8(a)(1) of the

Group Risk Plan of Insurance Basic

Provisions;

i. Revise sections 8(b) and (c) of the

Group Risk Plan of Insurance Basic

Provisions;

j. Amend section 8(d) of the Group

Risk Plan of Insurance Basic Provisions

by removing the words ‘‘limited and’’;

k. Amend section 8(e) of the Group

Risk Plan of Insurance Basic Provisions

by removing ’’, limited,’’; and

l. Amend the example (after section

20 of the Group Risk Plan of Insurance

Basic Provisions) by removing the last

sentence of the first paragraph and the

word ‘‘limited’’ from the second

sentence of the third paragraph.

The revised paragraphs read as

follows:

§ 407.9 Group risk plan common policy.

The provisions of the Group Risk Plan

Common Policy for the 2001 and

succeeding crop years are as follows:

* * * * *

Group Risk Plan of Insurance Basic

Provisions

1. Definitions.

* * * * *

Additional coverage. For GRP, an

amount of protection greater than

catastrophic risk protection. The

protection is on a per acre basis as

specified in the actuarial documents for

the crop, practice, and type.

* * * * *

8. Administrative Fees and Annual

Premium

(a) If you obtain a catastrophic risk

protection GRP policy, you will pay an

administrative fee, unless otherwise

specified in 7 CFR part 400:

(1) Of $100 per crop per county;

* * * * *

(b) If you obtain an additional

coverage GRP policy, you will pay an

administrative fee:

(1) Of $30 per crop per county;

(2) Payable to the insurance provider

on the billing date for the crop.

(c) Limited resource farmers as

defined in 7 CFR 457.8 may apply for

a waiver of administrative fees.

* * * * *

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(1), 1506(p).

2. Amend § 457.8 in the Common

Crop Insurance Policy under Terms and

Conditions, Basic Provisions to:

a. Revise the definitions of

‘‘Additional coverage’’ and ‘‘Approved

yield’’ in section 1 of the Basic

Provisions;

b. Amend section 1 of the Basic

Provisions by deleting, ‘‘limited,’’ from

the definition of ‘‘administrative fee’’;

c. Amend section 1 of the Basic

Provisions by deleting the definition of

‘‘Limited coverage’’;

d. Amend section 2(i) of the Basic

Provisions by deleting, ‘‘ limited,’’;

e. Amend the introductory text of

section 3(f) of the Basic Provisions by

deleting, ‘‘limited’’;

f. Amend section 3(f)(1) of the Basic

Provisions by removing ‘‘a limited

coverage policy’’ and adding in its place

‘‘an additional coverage policy’’;

g. Amend section 3(f)(2) of the Basic

Provisions by removing ‘‘limited or’’

(three times) and revising ‘‘policies’’ to

read ‘‘policy’’;

h. Revise section 7(e)(1) of the Basic

Provisions;

i. Remove sections 7(e)(2) and 7 (e)(6)

of the Basic Provisions and redesignate

paragraphs (e)(3) through (5) as (e)(2)

through (4).

j. Amend redesignated section 7(e)(4)

of the Basic Provisions by removing the

phrase ‘‘for limited coverage’’;

k. Amend section 17(g) of the Basic

Provisions by replacing ‘‘a limited or’’

with ‘‘an’’; and

l. Amend section 35(a) of the Basic

Provisions by replacing ‘‘a limited or’’

with ‘‘an’’.

m. Add a new section 36 of the Basic

Provisions.

The revised and added paragraphs

read as follows:

§ 457.8 The application and policy.

* * * * *

Terms and Conditions

Basic Provisions

1. Definitions.

* * * * *

Additional coverage. A level of

coverage greater than catastrophic risk

protection.

* * * * *

Approved yield. The actual

production history (APH) yield

determined in accordance with 7 CFR

part 400, subpart G, including any

adjustments elected under section 36.

* * * * *

7. Annual Premium and

Administrative Fees

* * * * *

(e) *–*–*

(1) You, unless otherwise authorized

in 7 CFR part 400, must pay an

administrative fee each crop year of $30

per crop per county for all levels of

coverage in excess of catastrophic risk

protection.

* * * * *

36. Substitution of Yields.

You may elect to exclude actual

yields used to calculate the APH yield

that are less than 60 percent of the

applicable transitional yield (T-yield),

as defined in 7 CFR 400.52. Each

excluded actual yield will be replaced

with a yield equal to 60 percent of the

applicable T-yield for the county. The

replacement yields will be used in the

same manner as actual yields for the

purpose of calculating the APH yield.

Premium rates for approved yields that

are adjusted under this section will be

40486 Federal Register / Vol. 65, No. 127 / Friday, June 30, 2000 / Rules and Regulations

based on the producer’s yield prior to

replacing the actual yields or such other

basis as determined appropriate by

FCIC.

Signed in Washington, D.C., on June 27,

2000.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 00–16583 Filed 6–28–00; 10:03 am]

BILLING CODE 3410–08–P

FARM CREDIT ADMINISTRATION

12 CFR Parts 612 and 614

RIN 3052–AB95

Standards of Conduct; Loan Policies

and Operations

AGENCY: Farm Credit Administration

(FCA).

ACTION: Direct final rule with

opportunity to comment.

SUMMARY: The FCA is rewriting its

Standards of Conduct regulations in

plain language so that they are easier to

understand. This direct final rule does

not change the requirements of the

existing regulations.

DATES: Unless we receive significant

adverse comment by July 31, 2000, these

regulations will be effective 30 days

after publication in the Federal Register

during which either or both Houses of

Congress are in session. The FCA will

publish a document in the Federal

Register to establish the actual effective

date. If we receive significant adverse

comment on an amendment, paragraph,

or section of this rule, and that

provision can be addressed separately

from the rest of the rule, we will

withdraw that amendment, paragraph,

or section and adopt as final those

provisions of the rule that are not the

subject of a significant adverse

comment. In that case, we will tell you

how we expect to continue with

rulemaking on the provisions that were

the subject of a significant adverse

comment.

ADDRESSES: You may send comments by

electronic mail to ‘‘reg-comm@fca.gov’’

or through the Pending Regulations

section of our Web site at

‘‘www.fca.gov.’’ You may also send

comments to Patricia W. DiMuzio,

Director, Regulation and Policy

Division, Office of Policy and Analysis,

Farm Credit Administration, 1501 Farm

Credit Drive, McLean, Virginia 22102–

5090 or by fax to (703) 734–5784. You

may review copies of all comments we

receive in the Office of Policy and

Analysis, Farm Credit Administration.

FOR FURTHER INFORMATION CONTACT:

Dale Aultman, Policy Analyst, Office of

Policy and Analysis, Farm Credit

Administration, McLean, VA 22102–

5090, (703) 883–4498, TDD (703) 883–

4444,

or

Howard Rubin, Attorney, Office of

General Counsel, Farm Credit

Administration, McLean, VA 22102–

5090, (703) 883–4020, TDD (703) 883–

4444.

SUPPLEMENTARY INFORMATION:

I. Objective

The objective of our proposed

amendment is to rewrite the Standards

of Conduct regulations to make them

easier for the Farm Credit System

(System) to understand and to better

explain our expectations for high

standards of honesty and integrity. We

are also amending one of our other

regulations so it correctly references our

Standards of Conduct regulations.

II. Background

A. Reasons for Plain Language

We are amending these regulations so

you can read and understand them

easily. We are guided by a Presidential

memorandum dated June 1, 1998,

requiring the Federal Government’s

writing to be in plain language.

Eventually we will rewrite all of our

regulations in plain language.

B. Public Comments

On August 18, 1998, we published a

notice in the Federal Register that asked

you to identify existing regulations and

policies that impose unnecessary

burdens on the System. See 63 FR

44176. We received comments from four

Farm Credit banks, a jointly managed

production credit association/Federal

land credit association, and the Farm

Credit Council on Standards of Conduct

issues. Most of the commenters asked

that we rewrite the Standards of

Conduct regulations in plain language.

This direct final rule addresses their

request and clarifies our regulations.

Director, officer, and employee

requirements are now in individual

subparts so those persons can find the

regulations that apply to them more

easily. In addition, we clarify our

existing regulations stating that

directors, officers, and employees may

be subject to civil money penalties and

suspensions if they violate their duties.

One Farm Credit Bank asked that we

remove our prohibition against Farm

Credit bank or agricultural credit bank

(collectively, bank) officers also working

at an association affiliated with that

bank. We are not removing this

prohibition because persons serving in a

dual role may not be able to meet the

goals and fiduciary duties of both the

bank and association.

One bank asked that officers and

employees be allowed to act as real

estate agents and insurance sales agents

when not working at the System

institution. The bank did note that those

employees must not be allowed to

transact business with directors, other

officers or employees, borrowers, or

loan applicants. We are not removing

these prohibitions because System

institutions have a direct or indirect

involvement in many real estate

transactions and also sell insurance.

This involvement could cause actual

conflicts of interest. Even if there is not

an actual conflict of interest, System

institutions must avoid the appearance

of a conflict of interest that could result

if their officers or employees sold real

estate or insurance.

Another bank asked that System

employees without supervisory or

decision-making authorities be exempt

from disclosure requirements. The

preamble to our Standards of Conduct

rule published in the Federal Register

on May 13, 1994, stated that System

institution boards may exempt

employees from disclosures when they

have a substantial degree of supervision

and a low level of responsibility. See 59

FR 24893. We have rewritten our

regulation to include this guidance.

III. Direct Final Rule

We are amending these regulations by

a direct final rulemaking. The

Administrative Procedure Act, 5 U.S.C.

551–59, et seq. (APA), supports direct

final rulemaking, which allows Federal

agencies to enact noncontroversial

regulations more quickly, without the

usual notice and comment period. This

process lets us develop, review, and

publish a final rule quickly and gives

the public an opportunity to comment

or object.

In a direct final rulemaking, we tell

you the rule will become effective on a

specified date unless we receive

significant adverse comment during the

comment period. If we receive

significant adverse comment on an

amendment, paragraph, or section of

this rule, and that provision can be

addressed separately from the rest of the

rule, we will withdraw that amendment,

paragraph, or section and adopt as final

those provisions of the rule that are not

the subject of a significant adverse

comment. In that case, we will tell you

how we expect to continue with

rulemaking on the provisions that were

the subject of a significant adverse

comment.