52304 Federal Register / Vol. 62, No. 194 / Tuesday, October 7, 1997 / Proposed Rules

Chemical Threshold by base

weight

(2) Distributions by person required to report under § 1310.03(c) ..................................................................................... 24 grams.

(3) All other domestic distributions (other than (F) (1) and (2)) ......................................................................................... 2.5 kilograms.

(4) Imports and Exports ...................................................................................................................................................... 2.5 kilograms.

4. Section 1310.05 is proposed to be amended by adding a new paragraph (e) to read as follows:

§ 1310.05 Reports.

* * * * *

(e) Each regulated person required to report pursuant to § 1310.03(c) shall either:

(1) Submit a written report,

containing the information set forth in

§ 1310.06(i), on or before the 15th day

of each month following the month in

which the distributions took place. The

report shall be submitted under

company letterhead, signed by the

person authorized to sign the

registration application forms on behalf

of the registrant, to the Chemical

Operations Section, Office of Diversion

Control, Drug Enforcement

Administration, Washington, D.C.

20537; or

(2) Upon request to and approval by

the Administration, submit the report in

electronic form, either via computer

disk or direct electronic data

transmission, in such form as the

Administration shall direct. Requests to

submit reports in electronic form should

be submitted to the Chemical

Operations Section, Office of Diversion

Control, Drug Enforcement

Administration, Washington, D.C.

20537, ATTN: Electronic Reporting.

5. Section 1310.06 is proposed to be

amended by adding a new paragraph (i)

to read as follows:

§ 13.10.06 Content of records and reports.

* * * * *

(i) Each monthly report required by

§ 1310.05(e) shall provide the following

information for each distribution:

(1) Supplier’s name and registration

number;

(2) Purchaser’s name and address;

(3) Name/address shipped to (if

different from purchaser’s name/

address);

(4) Name of the Chemical and total

amount shipped;

(5) Date of shipment;

(6) Product name (if drug product);

(7) Dosage form (if drug product);

(8) Dosage strength (if drug product);

(9) Number of dosage units (if drug

product);

(10) Package type (if drug product);

(11) Package quantity (if drug

product);

(12) Lot number (if drug product).

6. Section 1310.10 is proposed to be

amended by revising paragraph (d)

introductory text to read as follows:

§ 1310.10 Removal of the exemption of

drugs distributed under the Food, Drug, and

Cosmetic Act.

* * * * *

(d) Any manufacturer seeking

reinstatement of a particular drug

product that has been removed from an

exemption may apply to the

Administrator for reinstatement of the

exemption for that particular drug

product on the grounds that the

particular drug product is manufactured

and distributed in a manner that

prevents diversion. In determining

whether the exemption should be

reinstated the Administrator shall

consider:

* * * * *

Dated: September 26, 1997.

James S. Milford,

Acting Deputy Administrator.

[FR Doc. 97–26150 Filed 10–6–97; 8:45 am]

BILLING CODE 4410–09–M

FEDERAL EMERGENCY

MANAGEMENT AGENCY

44 CFR Part 61

RIN 3067–AC73

National Flood Insurance Program

(NFIP); Standard Flood Insurance

Policy

AGENCY: Federal Emergency

Management Agency (FEMA).

ACTION: Proposed rule.

SUMMARY: This proposed rule would

increase the amount of the deductible

under the Standard Flood Insurance

Policy—from $750 to $1,000—for

structures with subsidized coverage.

DATES: All comments received on or

before November 7, 1997 will be

considered before final action is taken

on the proposed rule.

ADDRESSES: Please submit any written

comments to the Rules Docket Clerk,

Office of General Counsel, Federal

Emergency Management Agency, 500 C

Street, S.W., room 840, Washington, DC

20472, (facsimile) 202–646–4536.

FOR FURTHER INFORMATION CONTACT:

Charles M. Plaxico, Jr., Federal

Emergency Management Agency,

Federal Insurance Administration, (202)

646–3422, (facsimile) (202) 646–4327.

SUPPLEMENTARY INFORMATION: This

proposal is the result of an ongoing

review and reappraisal of the National

Flood Insurance Program (NFIP) to

achieve greater administrative and fiscal

effectiveness in the NFIP’s operations.

The proposed amendment is also

intended to help the NFIP increase its

capability to build reserves for

catastrophic loss years. This can be

handled either by rate increases, or by

other means such as imposing coverage

limitations or increasing deductibles, or

by both.

Section 1308(b)(2) of the National

Flood Insurance Act of 1968, as

amended, charges the Director of FEMA

with the responsibility of establishing

‘‘chargeable premium rates’’ which are

‘‘ * * * adequate, on the basis of

accepted actuarial principles, to provide

reserves for anticipated losses, or if less

than such amount, consistent with the

objective of making flood insurance

available where necessary at reasonable

rates so as to encourage prospective

insureds to purchase such insurance

* * * ’’.

Since there have been three premium

increases in the last three years—two in

the subsidized premium rates and a

premium surcharge mandated by § 555

of the National Flood Insurance Reform

Act of 1994, for the addition of

increased cost of compliance coverage,

FEMA believes that the better approach

to enhancing fiscal soundness would be

by adjustment to the deductible

provisions for policies which are issued

using subsidized rates. Therefore, this

proposed rule would increase the

standard deductible for structures

covered by insurance at subsidized

premium rates from $750 to $1,000.

Concurrent with this proposed change,

insureds would be provided the option

to pay a higher premium at full-risk

rates to ‘‘buy back’’ a reduced

deductible under their Standard Flood

Insurance Policy (SFIP).
Federal Register / Vol. 62, No. 194 / Tuesday, October 7, 1997 / Proposed Rules 52305

New or renewed flood insurance

policies issued on and after May 1,

1998, for buildings and contents in

Emergency Program communities as

well as those policies issued for

buildings and/or contents in Regular

Program communities in Zones A, AO,

AH, A1–A30, AE, VO, V1–V30, VE, or

V, which are rated using subsidized

rates, would be subject to the higher

deductible of $1,000. These are

buildings which, because they were

built before the degree of flood risk had

been ascertained and depicted on a

Flood Insurance Rate Map (FIRM), are

subject to a greater exposure to flood

loss.

This proposed change to the

deductibles would provide a greater

flexibility to the Program and to the goal

of designing the Program with an eye

toward ‘‘* * * minimizing costs and

distributing burdens equitably among

those who will be protected by flood

insurance and the general public’’

(Section 1302(d) of the 1968 Act).

In summary, this proposal is intended

to balance the need for providing

reasonable rates to the public for flood

insurance as an incentive to purchase

insurance against the requirement that

the NFIP be flexible, minimize costs,

and distribute burdens among those

who will be protected by flood

insurance and the general public. Loss

cost savings, in a year equivalent to the

historical average, are projected to be

$6.3 million as a result of implementing

this proposed rule.

National Environmental Policy Act

Pursuant to section 102(2)(C) of the

National Environmental Policy Act of

1969, 42 U.S.C. 4371 et seq., and the

implementing regulations of the Council

on Environmental Quality, 40 CFR parts

1500–1508, FEMA is conducting an

environmental assessment of this

proposed rule. If the assessment

concludes that there will be a significant

impact on the human environment as a

result of the issuance of the proposed

rule, then an Environmental Impact

Statement will be prepared. Copies of

the environmental assessment, when

developed, will be available for

inspection through the Rules Docket

Clerk, Federal Emergency Management

Agency, room 840, 500 C St. SW.,

Washington, DC 20472.

Executive Order 12866, Regulatory

Planning and Review

This proposed rule is not a significant

regulatory action within the meaning of

§ 2(f) of E.O. 12866 of September 30,

1993, 58 FR 51735, but attempts to

adhere to the regulatory principles set

forth in E.O. 12866. The final rule has

been reviewed by the Office of

Management and Budget under E.O.

1266.

Paperwork Reduction Act

This proposed rule does not contain

a collection of information and therefore

is not subject to the provisions of the

Paperwork Reduction Act of 1995.

Executive Order 12612, Federalism

This proposed rule involves no

policies that have federalism

implications under E.O. 12612,

Federalism, dated October 26, 1987.

Executive Order 12778, Civil Justice

Reform

This proposed rule meets the

applicable standards of § 2(b)(2) of E.O.

12778.

List of Subjects in 44 CFR Part 61

Flood insurance.

Accordingly, 44 CFR Part 61 is

proposed to be amended as follows:

PART 61—INSURANCE COVERAGE

AND RATES

1. The authority citation for Part 61

continues to read as follows:

Authority: —42 U.S.C. 4001 et seq.;

Reorganization Plan No. 3 of 1978, 43 FR

41943, 3 CFR, 1978 Comp., p. 329; E.O.

12127 of Mar. 31, 1979, 44 FR 19367,3 CFR

1979 Comp., p. 376.

2. Paragraph C. of Article 7 of

Appendix A (l) is proposed to be revised

follows:

* * * * *

C. For any flood insurance policy

issued or renewed for property located

in an Emergency Program community or

for any property located in a Regular

Program community in Zones A, AO,

AH, A1–A30, AE, VO, V1–V30, VE, or

V where the rates available for buildings

built before the effective date of the

initial Flood insurance Rate Map or

December 31, 1994, whichever is later,

are used to compute the premium, the

amount of the deductible for each loss

occurrence is determined as follows: We

shall be liable only when such loss

exceeds $1,000, or the amount of any

other deductible which you selected

when you applied for this policy or

subsequently by endorsement.

* * * * *

2. Paragraph C. of Article 7 of

Appendix A (2) is proposed to be

revised as follows:

* * * * *

C. For any flood insurance policy

issued or renewed for a property located

in an Emergency Program community or

for any property located in a Regular

Program community in Zones A, AO,

AH, A1–A30, AE, VO, V1–V30, VE, or

V where the rates available for buildings

built before the effective date of the

initial Flood Insurance Rate Map or

December 31, 1994, whichever is later,

are used to compute the premium, the

amount of the deductible for each loss

occurrence is determined as follows: We

shall be liable only when such loss

exceeds $1,000, or the amount of any

other deductible which you selected

when you applied for this policy or

subsequently by endorsement.

* * * * *

2. Paragraph C. of Article 7 of

Appendix A(2) is proposed to be revised

as follows:

* * * * *

C. For any flood insurance policy

issued or renewed for a property located

in an Emergency Program community or

for any property located in a Regular

Program community in Zones A, AO,

AH, A1–A30, AE, VO, V1–V30, VE, or

V where the rates available for buildings

built before the effective date of the

initial Flood Insurance Rate Map or

December 31, 1994, whichever is later,

are used to compute the premium, the

amount of the deductible for each loss

occurrence is determined as follows:

The Insurer shall be liable only when

such loss exceeds $1,000, or the amount

of any other deductible which the

Insured selected when it applied for this

policy or subsequently by endorsement.

* * * * *

2. Paragraph C. of Article 7 of

Appendix A (3) is proposed to be

revised as follows:

* * * * *

C. For any flood insurance policy

issued or renewed for any property

located in Zones A, AO, AH, A1–A30,

AE, VO, V1–V30, VE, or V where the

rates available for buildings built before

the effective date of the initial Flood

Insurance Rate Map or December 31,

1994, whichever is later, are used to

compute the premium, the amount of

the deductible for each loss occurrence

is determined as follows: The Insurer

shall be liable only when such loss

exceeds $1,000, or the amount of any

other deductible which the Insured

selected when it applied for this policy

or subsequently by endorsement.

* * * * *

(Catalog of Federal Domestic Assistance No.

83.100, ‘‘Flood Insurance’’; No. 83.516,

‘‘Disaster Assistance’’)

Dated: September 26, 1997.

Edward T. Pasterick,

Acting Executive Administrator, Federal

Insurance Administration.

[FR Doc. 97–26527 Filed 10–6–97; 8:45 am]

BILLING CODE 6718–03–M