3782 Federal Register / Vol. 65, No. 16 / Tuesday, January 25, 2000 / Rules and Regulations

List of Subjects in 7 CFR Part 400

Administrative practice and

procedures, Claims, Crop insurance,

Penalties.

Final Rule

Accordingly, as set forth in the

preamble, the Federal Crop Insurance

Corporation hereby amends 7 CFR part

400 as follows:

PART 400—GENERAL

ADMINISTRATIVE REGULATIONS

1. The authority citation for 7 CFR

part 400 continues to read as follows:

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

2. Section 400.169 is revised to read

as follows:

§ 400.169 Disputes.

(a) If the company believes that the

Corporation has taken an action that is

not in accordance with the provisions of

the Standard Reinsurance Agreement or

any reinsurance agreement with FCIC,

except compliance issues, it may

request the Deputy Administrator of

Insurance Services to make a final

administrative determination addressing

the disputed action. The Deputy

Administrator of Insurance Services will

render the final administrative

determination of the Corporation with

respect to the applicable actions. All

requests for a final administrative

determination must be in writing and

submitted within 45 days after receipt

after the disputed action.

(b) With respect to compliance

matters, the Compliance Field Office

renders an initial finding, permits the

company to respond, and then issues a

final finding. If the company believes

that the Compliance Field Office’s final

finding is not in accordance with the

applicable laws, regulations, custom or

practice of the insurance industry, or

FCIC approved policy and procedure, it

may request, the Deputy Administrator

of Compliance to make a final

administrative determination addressing

the disputed final finding. The Deputy

Administrator of Compliance will

render the final administrative

determination of the Corporation with

respect to these issues. All requests for

a final administrative determination

must be in writing and submitted within

45 days after receipt of the final finding.

(c) A company may also request

reconsideration by the Deputy

Administrator of Insurance Services of a

decision of the Corporation rendered

under any Corporation bulletin or

directive which bulletin or directive

does not interpret, explain, or restrict

the terms of the reinsurance agreement.

The company, if it disputes the

Corporation’s determination, must

request a reconsideration of that

determination in writing, within 45

days of the receipt of the determination.

The determinations of the Deputy

Administrator will be final and binding

on the company. Such determinations

will not be appealable to the Board of

Contract Appeals.

(d) Appealable final administrative

determinations of the Corporation under

paragraph (a) or (b) of this section may

be appealed to the Board of Contract

Appeals in accordance with the

provisions of subtitle A, part 24 of title

7 of the Code of Federal Regulations.

Signed in Washington, D.C., on January 18,

2000.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 00–1702 Filed 1–24–00; 8:45am]

BILLING CODE 3410–08–P

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 457

Common Crop Insurance Regulations;

Forage Production Crop Provisions;

and Forage Seeding Crop Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Final rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) finalizes specific

crop provisions for the insurance of

forage production and forage seeding.

The intended effect of this action is to

provide policy changes to better meet

the needs of the insured. The changes

will be effective for the 2001 and

subsequent crop years.

EFFECTIVE DATE: This rule is effective

February 24, 2000.

FOR FURTHER INFORMATION CONTACT:

Richard Brayton, Insurance

Management Specialist, Product

Development Division, Federal Crop

Insurance Corporation, United States

Department of Agriculture, 9435 Holmes

Road, Kansas City, MO, 64131,

telephone (816) 926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

This rule has been determined to be

exempt for the purpose of Executive

Order 12866 and, therefore, has not

been reviewed by the Office of

Management and Budget (OMB).

Paperwork Reduction Act of 1995

Pursuant to the Paperwork Reduction

Act of 1995 (44 U.S.C. chapter 35), the

collections of information in this rule

have been approved by the Office of

Management and Budget (OMB) under

control number 0563–0053 through

April 30, 2001.

Unfunded Mandates Reform Act of 1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA) establishes

requirements for Federal agencies to

assess the effects of their regulatory

actions on State, local, and tribal

governments and the private sector.

This rule contains no Federal mandates

(under the regulatory provisions of title

II of the UMRA) for State, local, and

tribal governments or the private sector.

Therefore, this rule is not subject to the

requirements of sections 202 and 205 of

the UMRA.

Executive Order 13132

The policies contained in this rule do

not have any substantial direct effect on

states, on the relationship between the

national government and the states, or

on the distribution of power and

responsibilities among the various

levels of government. Nor does this rule

impose substantial direct compliance

costs on state and local governments.

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.

Additionally, the regulation does not

require any action on the part of small

entities than is required on the part of

large entities. The amount of work

required of the insurance companies

will not increase because the

information used to determine

eligibility must already be collected

under the present policy. No additional

work is required as a result of this

action on the part of either the insured

or the insurance companies. 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

Federal Register / Vol. 65, No. 16 / Tuesday, January 25, 2000 / Rules and Regulations 3783

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.

National Performance Review

This regulatory action is being taken

as part of the National Performance

Review Initiative to eliminate

unnecessary or duplicate regulations

and improve those that remain in force.

Background

On Thursday, August 26, 1999, FCIC

published a notice of proposed

rulemaking in the Federal Register at 64

FR 46599–46603 to revise 7 CFR

457.117, Forage Production Crop

Insurance Provisions, 457.151 Forage

Seeding Crop Insurance Provisions, and

to delete 457.127 Forage Production

Winter Coverage Endorsement, effective

for the 2001 and succeeding crop years.

Following publication of the proposed

rule on August 26, 1999, the public was

afforded 30 days to submit written

comments and opinions. A total of 8

comments were received from 2

reinsured companies, a Pennsylvania

consulting firm, and the Pennsylvania

State Secretary of Agriculture. The

forage production comments received

and FCIC’s responses are as follows:

Comment: A reinsured company

stated the provisions still contains a

reference to the Winter Coverage

Endorsement in section 7(c).

Response: FCIC has deleted the

references.

Comment: A reinsured company

recommended that optional units

should not be available for forage

producers because production records

will need to be kept separate and, with

multiple cuttings throughout the season,

the insured would have to store or keep

production records by optional units if

a loss occurs.

Response: Producers are not required

to obtain optional units. Offering

optional units to forage producers will

likely increase participation in the crop

insurance program because there are

some producers that feel it is worth the

effort to maintain separate records, to

get the additional benefit of optional

units. Therefore, no change has been

made.

Comment: A reinsured company

asked whether the underwriting report

is still required?

Response: The farmer certification

and underwriting report is still required.

Comment: Reinsured companies, a

Pennsylvania consulting firm, and the

Pennsylvania Secretary of Agriculture

expressed concern that forage

production coverage should be raised to

the level of other crop programs by

providing quality adjustment provisions

as in other crop insurance programs.

Response: It is important to provide

quality protection to forage producers.

However, at this time, FCIC has not

been able to obtain the necessary data to

offer coverage nor have the rates been

established to cover the additional risks

that may affect the quality of the forage.

This would be a significant change that

will likely result in higher premiums.

FCIC will continue its effort to provide

quality adjustment. Therefore, no

change has been made.

Forage seeding comments and FCIC’s

responses are as follows:

Comment: A reinsured company

stated that Wisconsin was omitted from

the cancellation and termination dates

list in section 5 of the proposed rule.

Response: FCIC has added Wisconsin.

Comment: A reinsured company

recommended extending the forge

seeding deadline in Wisconsin. They

stated that a number of producers are

seeding forage later than May and

obtaining a successful stand. The

Special Provisions lists May as deadline

for seeding forage.

Response: FCIC welcomes producer

data that helps to establish the

appropriate seeding deadline for the

various areas. However, it is too late to

consider this information for the 2001

crop year. FCIC will consider this

information for future changes in the

deadlines. Therefore, no change has

been made.

In addition to the changes described

above, FCIC has made the following

changes to the Forage Production Crop

Provisions:

1. Section 1—Removed the definition

of ‘‘crop year’’ from the final rule. The

current regulation contains a more

accurate definition of ‘‘crop year.’’

2. Section 7(a)(4) and (5)—Removed

these provisions from the final rule

because section 7(a)(5) was duplicative

with section 7(a)(1) and section 7(a)(4)

was inconsistent with section 7(a)(2)

which stated that the insurance attaches

for Lassen, Modoc, Mono, Shasta and

Siskiyou Counties on April 15.

List of Subjects in 7 CFR Part 457

Crop insurance, Forage production,

Forage seeding, Reporting and

recordkeeping requirements.

Final Rule

Accordingly, as set forth in the

preamble, the Federal Crop Insurance

Corporation amends the Common Crop

Insurance Regulations (7 CFR part 457)

by amending 7 CFR 457.117, for the

2001 and succeeding crop years, to read

as follows:

PART 457–COMMON CROP

INSURANCE REGULATIONS

1. The authority citation for 7 CFR

part 457 continues to read as follows:

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

2. Amend 457.117 as follows:

Revise the heading and introductory

text;

b. In section 1 of the crop insurance

provisions delete the definitions of ‘‘fall

planted’’ and ‘‘spring planted,’’ add

definitions of ‘‘direct marketing’’ and

‘‘windrow’’ and revise the definition of

‘‘cutting;’’

c. In the crop insurance provisions

delete section 2 and redesignate sections

3 through 12 as 2 through 11;

d. In the crop insurance provisions

revise newly designated sections 4, 5,

6(a), 7(a), 7(b) introductory text and

7(b)(6), 8(b), 9, and 10(a); and

e. In the crop insurance provisions

add examples (1) and (2) in section

10(b); all to read as follows:

§ 457.117 Forage production crop

insurance provisions.

The Forage Production Crop

Insurance Provisions for the 2001 and

succeeding crop years are as follows:

* * * * *

1. Definitions.

* * * * *

Cutting. The severance of the forage

plant from its roots.

Direct marketing. Sale of the forage

crop directly to consumers without the

intervention of an intermediary such as

a wholesaler, shipper, buyer, or broker.

An example of direct marketing is

selling directly to other producers.

* * * * *

3784 Federal Register / Vol. 65, No. 16 / Tuesday, January 25, 2000 / Rules and Regulations

Windrow. Forage that is cut and

placed in a row.

* * * * *

4. Cancellation and Termination

Dates.

In accordance with section 2 of the

Basic Provisions, the cancellation and

termination dates are:

State

Cancellation/

termination

date

California, Nevada and Utah October 31;

All other states ....................... September

30.

5. Report of Acreage.

In lieu of the provisions of section

6(a) of the Basic Provisions, a report of

all insured acreage of forage production

must be submitted on or before each

forage production acreage reporting date

specified in the Special Provisions.

6. Insured Crop.

(a) In accordance with section 8 of the

Basic Provisions, the crop insured will

be all the forage in the county for which

a premium rate is provided by the

actuarial documents:

(1) In which you have a share; and

(2) That is grown during one or more

years after the year of establishment.

* * * * *

7. Insurance Period.

In lieu of the provisions of section 11

of the Basic Provisions:

(a) Insurance attaches on acreage with

an adequate stand for the calendar year

following the year of establishment for:

(1) All California counties accept

Lassen, Modoc, Mono, Shasta and

Siskiyou—December 1;

(2) Lassen, Modoc, Mono, Shasta and

Siskiyou Counties California, Colorado,

Idaho, Nebraska, Nevada, Oregon, Utah

and Washington—April 15;

(3) Iowa, Minnesota, Montana, New

Hampshire, New York, North Dakota,

Pennsylvania, Wisconsin, Wyoming,

and all other states—May 22;

(b) Insurance ends at the earliest of:

* * * * *

(6) The following dates of the crop

year:

(i) California counties of Lassen,

Modoc, Mono, Shasta and Siskiyou, and

all other states—October 15;

(ii) The last day of the 12th month

after the insured crop initially planted

in all California counties except Lassen,

Modoc, Mono, Shasta and Siskiyou.

* * * * *

8. Causes of Loss.

* * * * *

(b) In addition to the causes of loss

specifically excluded in section 12 of

the Basic Provisions, we will not insure

against damage of loss of production

that occurs after removal from the

windrow.

9. Duties in the event of Damage or

Loss.

In addition to the requirements of

section 14 of the Basic Provisions, the

following will apply:

(a) You must notify us within 3 days

of the date harvest should have started

if the insured crop will not be

harvested;

(b) You must notify us at least 15 days

before any production from any unit

will be sold by direct marketing unless

you have records verifying that the

forage was direct marketed. Failure to

give timely notice that production will

be sold by direct marketing will result

in an appraised amount of production to

count of not less than the production

guarantee per acre if such failure results

in our inability to make the required

appraisal;

(c) If you intend to claim an

indemnity on any unit, you must notify

us at least 15 days prior to the beginning

of harvest if you previously gave notice

in accordance with section 14 of the

Basic Provisions so that we may inspect

the damaged production. You must not

destroy the damaged crop until after we

have given you written consent to do so.

If you fail to meet the requirements of

this section, and such failure results in

our inability to inspect the damaged

production, all such production will be

considered undamaged and will be

included as production to count; and

(d) You must notify us at least 5 days

before grazing of insured forage begins

so we can conduct an appraisal to

determine production to count. Failure

to give timely notice that the acreage

will be grazed will result in an

appraised amount of production to

count of not less than the production

guarantee per acre.

10. Settlement of Claim.

(a) We will determine your loss on a

unit basis. In the event you are unable

to provide separate acceptable

production records:

(1) For any optional units, we will

combine all optional units for which

such production records were not

provided; or

(2) For any basic units, we will

allocate any commingled production to

such units in proportion to our liability

on the harvested acreage for the units.

(b) * * *

(7) * * *

Example 1

Assume you have a 100 percent share

in 100 acres of type A forage in the unit,

with a guarantee of 3.0 tons per acre and

a price election of $65.00 per ton. Due

to adverse weather you were only able

to harvest 50.0 tons. Your indemnity

would be calculated as follows:

1. 100 acres type A × 3 tons = 300 ton

guarantee;

2 & 3. 300 tons × $65 price election

= $19,500 total value guarantee;

4 & 5. 50 tons production to count ×

$65 price election = $3,250 total value

of production to count;

6. $19,500 value guarantee—$3,250 =

$16,250 loss; and

7. $16,250 × 100 percent share =

$16,250 indemnity payment.

Example 2

Assume you also have a 100 percent

share in 100 acres of type B forage in the

same unit, with a guarantee of 1.0 ton

per acre and a price election of $50.00

per ton. Due to adverse weather you

were only able to harvest 5.0 tons. Your

total indemnity for forage production for

both types A and B in the same unit

would be calculated as follows:

1. 100 acres × 3 tons = 300 ton

guarantee for type A; and 100 acres × 1

ton = 100 ton guarantee for type B;

2. 300 ton guarantee × $65 price

election = $19,500 total value of the

guarantee for type A; and 100 ton

guarantee × $50 price election = $5,000

total value of the guarantee for type B;

3. $19,500 + $5,000 = $24,500 total

value of the guarantee;

4. 50 tons × $65 price election =

$3,250 total value of production to

count for type A; and 5 tons × $50 price

election = $250 total value of

production to count for type B;

5. $3,250 + $250 = $ 3,500 total value

of production to count for types A and

B;

6. $24,500—$3,500 = $21,000 loss;

and

7. $21,000 loss × 100 percent share =

$21,000 indemnity payment.

* * * * *

3. Section 457.127 is removed and

reserved.

4. Amend 457.151 as follows:

a. Revise the introductory text;

b. In the crop insurance provisions

revise the definition in section 1 of

‘‘harvest’;

c. In the crop insurance provisions

redesignate sections 6 through 13 as 7

through 14;

d. In the crop insurance provisions

revise section 5 and redesignated

sections 7(b), 8, 11 introductory text,

11(a), 11(b), 13(a)(3);

e. In the crop insurance provisions

add a new section 6 and an example to

redesignated section 13(a)(3); all to read

as follows:

Federal Register / Vol. 65, No. 16 / Tuesday, January 25, 2000 / Rules and Regulations 3785

§ 457.151 Forage seeding crop insurance

provisions.

The Forage Seeding Crop Insurance

Provisions for the 2001 and succeeding

crop years are as follows:

* * * * *

1. Definitions.

* * * * *

Harvest. Severance of the forage plant

from its roots. Acreage that is only

grazed will not be considered harvested.

* * * * *

5. Cancellation and Termination

Dates.

In accordance with section 2 of the

Basic Provisions, the cancellation and

termination dates are:

State and county Cancellation/termination dates

California, Nevada, New

Hampshire, New York,

Pennsylvania and

Vermont.

July 31.

Montana, Minnesota, North

Dakota, South Dakota,

Wisconsin and Wyoming.

March 15.

6. Report of Acreage.

In lieu of the provisions of section

6(a) of the Basic Provisions, a report of

all insured acreage of forage seeding

must be submitted on or before each

forage seeding acreage report date

specified in the Special Provisions.

7. Insured Crop.

* * * * *

(b) That is planted during the current

crop year, or replanted during the

calendar year following planting, to

establish a normal stand of forage;

* * * * *

8. Insurable Acreage.

In addition to the provisions of

section 9 of the Basic Provisions:

(a) In California counties Lassen,

Modoc, Mono, Shasta, Siskiyou and all

other states, any acreage of the insured

crop damaged before the final planting

date, to the extent that such acreage has

less than 75 percent of a normal stand,

must be replanted unless we agree that

it is not practical to replant; and

(b) In California, unless otherwise

specified in the Special Provisions, any

acreage of the insured crop damaged

anytime during the crop year to the

extent that such acreage has less than 75

percent of a normal stand must be

replanted unless it cannot be replanted

and reach a normal stand within the

insurance period.

* * * * *

11. Replanting Payment.

In lieu of the provisions contained in

section 13 of the Basic Provisions:

(a) A replanting payment is allowed

if:

(1) In California, unless specified

otherwise in the Special Provisions,

acreage planted to the insured crop is

damaged by an insurable cause of loss

occurring within the insurance period to

the extent that less than 75 percent of

a normal stand remains and the crop

can reach maturity before the end of the

insurance period;

(2) In Lassen, Modoc, Mono, Shasta,

Siskiyou Counties, California, and all

other states:

(i) A replanting payment is allowed

only whenever the Special Provisions

designate both fall and spring final

planting dates;

(ii) The insured fall planted acreage is

damaged by an insurable cause of loss

to the extent that less than 75 percent

of a normal stand remains;

(iii) It is practical to replant;

(iv) We give written consent to

replant; and

(v) Such acreage is replanted the

following spring by the spring planting

date.

(b) The amount of the replanting

payment will be equal to 50 percent of

the amount of indemnity determined in

accordance with section 13 unless

otherwise specified in the Special

Provisions.

* * * * *

13. Settlement of Claim.

(a) * * *

(3) Multiplying the total acres with an

established stand for the insured acreage

of each type and practice in the unit by

the amount of insurance for the

applicable type and practice;

Example

Assume you have 100 percent share

in 30 acres of type A forage in the unit,

with an amount of insurance of $100.00

per acre. At the time of loss, the

following findings are established: 10

acres had a remaining stand of 75

percent or greater. You also have 20

acres of type B forage in the unit, with

an amount of insurance of $90.00 per

acre. 10 acres had with a remaining

stand of 75 percent or greater. Your

indemnity would be calculated as

follows:

1. 30 acres × $100.00 = $3,000

amount of insurance for type A;

20 acres × $90.00 = $1,800 amount of

insurance for type B;

2. $3,000 + $1,800 = $4,800 total

amount of insurance;

3. 10 acres with 75% stand or

greater × $100 = $1,000 production to

count for type A;

10 acres with 75% stand or greater ×

$90 = $900 production to count for type

B;

4. $1,000+$900 = $1,900 total

production to count;

5. $4,800¥$1,900 = $2,900 loss;

6. $2,900×100 percent share =

$2,900 indemnity payment.

* * * * *

Signed in Washington, DC, on January 18,

2000.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 00–1703 Filed 1–24–00; 8:45 am]

BILLING CODE 3410–08–P

FEDERAL RESERVE SYSTEM

12 CFR Part 225

[Regulation Y; Docket No. R–1057]

Bank Holding Companies and Change

in Bank Control

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Interim rule with request for

public comments.

SUMMARY: The Board of Governors of the

Federal Reserve System is adopting on

an interim basis effective March 11,

2000, and soliciting comment on a rule

that establishes procedures for bank

holding companies as well as foreign

banks that operate a branch, agency, or

commercial lending company in the

United States to elect to become

financial holding companies. The

interim rule includes amended

definitions of terms in existing Subpart

A that are applicable to the new

Subpart. The Board is promulgating this

rule to implement provisions of the

recently enacted Gramm-Leach-Bliley

Act that enable bank holding companies

and foreign banks that meet applicable

statutory requirements to become

financial holding companies and

thereby engage in a broader range of

financial and other activities than are

permissible for bank holding

companies.

The new Subpart sets forth the

procedures by which bank holding

companies and foreign banks may

submit to the Board an election to

become a financial holding company

and describes the period in which the

Board will act on financial holding

company elections. This Subpart also

enumerates the criteria that bank

holding companies and foreign banks

must meet in order to qualify as a

financial holding company. In addition,

the newly added sections set forth the

limitations that the Board will apply to

financial holding companies that fail to

maintain compliance with applicable

capital, management, and CRA criteria.