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

54339

Vol. 62, No. 202

Monday, October 20, 1997

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 401 and 457

General Crop Insurance Regulations,

Canning and Processing Tomato

Endorsement; and Common Crop

Insurance Regulations, Processing

Tomato 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

processing tomatoes. The provisions

will be used in conjunction with the

Common Crop Insurance Policy Basic

Provisions, which contain standard

terms and conditions common to most

crops. The intended effect of this action

is to provide policy changes to better

meet the needs of the insured, include

the current canning and processing

tomato endorsement with the Common

Crop Insurance Policy for ease of use

and consistency of terms, and to restrict

the effect of the current canning and

processing tomato endorsement to the

1997 and prior crop years.

EFFECTIVE DATE: November 19, 1997.

FOR FURTHER INFORMATION CONTACT:

Richard Brayton, Insurance

Management Specialist, Research and

Development, Product Development

Division, Federal Crop Insurance

Corporation, United States Department

of Agriculture, 9435 Holmes Road,

Kansas City, MO 6413, telephone (816)

926–7730.

SUPPLEMENTARY INFORMATION:

Executive Order No. 12866

The Office of Management and Budget

(OMB) has determined this rule to be

exempt for the purposes of Executive

Order 12866, and therefore, this rule has

not been reviewed by OMB.

Paperwork Reduction Act of 1995

Following publication of the proposed

rule, the public was afforded 60 days to

submit written comments and opinions

on information collection requirements

currently being reviewed by OMB

pursuant to the Paperwork Reduction

Act of 1995 (44 U.S.C. Chapter 35)

under OMB control number 0563–0053.

No public comments were received.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), Public

Law 104–4, 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 No. 12612

It has been determined under section

6(a) of Executive Order No. 12612,

Federalism, that this rule does not have

sufficient federalism implications to

warrant the preparation of a Federalism

Assessment. The provisions contained

in this rule will not have a substantial

direct effect on States or their political

subdivisions, or on the distribution of

power and responsibilities among the

various levels of government.

Regulatory Flexibility Act

This regulation will not have a

significant economic impact on a

substantial number of small entities.

The amount of work required of

insurance companies will not increase

because the information used to

determine eligibility is already

maintained at their office and the other

information required is already being

gathered as a result of the present

policy. No additional actions are

required as a result of this action on the

part of either the producer or the

reinsured company. Additionally, the

regulation does not require any 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 No. 12372

This program is not subject to the

provisions of Executive Order No.

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 No. 12988

This final 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 prior to the effective date. 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 may be brought.

Environmental Evaluation

This action is not expected to have a

significant 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 duplicative regulations

and improve those that remain in force.

Background

On Monday, June 23, 1997, FCIC

published a proposed rule in the

Federal Register at 62 FR 33763–33768

to add to the Common Crop Insurance

Regulations (7 CFR part 457), a new

section, 7 CFR 457.160, Processing

Tomato Crop Insurance Provisions. The

new provisions will be effective for the

1998 and succeeding crop years. These

provisions will replace and supersede

the current provisions for insuring

canning and processing tomatoes found

at 7 CFR part 401 (Canning and

Processing Tomato Endorsement). FCIC
54340 Federal Register / Vol. 62, No. 202 / Monday, October 20, 1997 / Rules and Regulations

also amends 7 CFR 401.114 to limit its

effect to the 1997 and prior crop years.

Following publication of that

proposed rule, the public was afforded

30 days to submit written comments

and opinions. A total of 62 comments

were received from an insurance service

organization, reinsured companies,

agents, a California Tomato Growers

Association, and tomato growers. The

comments received, and FCIC’s

responses are as follows:

Comment: An insurance service

organization recommended that a

number of definitions common to most

crops be removed from the crop

provisions and placed into the Basic

Provisions.

Response: FCIC agrees and is

currently in the regulatory review

process that will move commonly used

definitions from the crop provisions to

the Basic Provisions and this rule will

be revised to delete the definitions

when the Basic Provisions are published

as a final rule.

Comment: A reinsured company and

a crop insurance agent recommended

changing the sales closing date in

California from January 15 to February

28. The commenter indicated that the

sales closing date of January 15 causes

inefficiency because it differs from the

February 28 sales closing date for most

other spring crops.

Response: The Federal Crop Insurance

Reform Act of 1994 required the sales

closing date to be moved from February

15 to January 15. This date cannot be

extended without appropriate legislative

changes. Therefore, no change has been

made.

Comment: An insurance service

organization recommended changing

the definition of ‘‘bypassed acreage’’ to

read as follows: ‘‘Land on which

production is ready for harvest but is

left unharvested in favor of harvesting

other fields.’’

Response: The definition of bypassed

acreage has been revised to clarify that

land on which production is ready for

harvest but the processor elects not to

accept such production so it is not

harvested.

Comment: An insurance service

organization expressed concern with the

definition of ‘‘good farming practice,’’

which makes reference to cultural

practices generally in use in the county

and that are recognized by the

Cooperative State Research, Education,

and Extension Service (CSREES) as

compatible with agronomic and weather

conditions in the county. The comment

questioned whether cultural practices

exist that are not necessarily recognized

(or possible known) by the CSREES. The

comment suggested changing the term

‘‘county’’ to ‘‘area.’’

Response: FCIC believes that the

CSREES recognizes farming practices

that are considered acceptable for

producing processing tomatoes. If a

producer is following practices not

recognized as acceptable by the

CSREES, such recognition can be sought

by interested parties. Although cultural

practices recognized by the CSREES

may only pertain to specific areas

within a county, the actuarial

documents are on a county basis. No

change has been made.

Comment: An insurance service

organization recommended changing

the definition of ‘‘planted acreage’’ so

that either initially or replanted acreage

must be planted in rows to be

considered planted.

Response: FCIC agrees and has

amended the definition as suggested.

The definition of replanting has also

been changed accordingly.

Comment: An insurance service

organization recommended that the

definition of ‘‘replanting’’ be clarified by

inserting ‘‘processing tomato’’ between

the last two words (‘‘successful’’ and

‘‘crop’’) in the sentence.

Response: To be consistent with

language contained in the proposed rule

of the Basic Provisions, FCIC has

revised the definition to clarify that

‘‘replanting’’ is performing the cultural

practices necessary to prepare the land

to replace the seed or plants of the

damaged or destroyed crop and then

replacing the seed or plants in the

insured acreage.

Comment: An insurance service

organization recommended that the

definition of ‘‘timely planted’’ be

clarified by inserting the word

‘‘initially’’ at the beginning of the

definition.

Response: To be consistent with

language contained in the proposed rule

of the Basic Provisions, FCIC believes

the definition is clearly stated.

Therefore, no change has been made.

Comment: An insurance service

organization, a reinsured company,

insurance agents, a tomato growers

association, and a tomato grower

disagreed with the provisions that

remove ‘‘units by share’’ in California

(section 2(a.). The comments indicated

that: (1) Unit division by share is no

more difficult to administer for tomatoes

than it is for other crops in California;

(2) The change will give producers a

greater incentive to purchase CAT than

buy-up, since the CAT Endorsement

allows basic units by share; and (3)

Inequitable loss payments between

tenants and landlords would result.

Response: FCIC agrees that optional

units based on share should be

provided. Section 2(a) has been deleted

and the remaining sections have been

redesignated accordingly. The language

in 8(b) is intended to cover a producer

who has a crop share agreement, who

rents, or who owns acreage. This should

be separate from the unit issue.

Comment: An insurance service

organization, reinsured companies, a

grower association, insurance agents,

and tomato producers stated that section

2(b) eliminates optional units for nearly

all California producers since most

contracts are written for a specific

amount of production. Removal of this

benefit will have a detrimental impact

on producers who had optional units in

the past. For example: A producer with

6,000 contracted tons, 200 acres of land,

an approved yield of 30 tons per acre,

and a production guarantee of 22.5 tons

per acre, receives no benefit if only one

unit is allowed and 4,500 tons of

tomatoes are produced. However, if two

100 acre units are allowed, the first unit

produces 3,000 tons and the second unit

produces 1,500 tons (4,500 total tons),

an indemnity based on 750 tons would

be allowed on the second unit.

Response: FCIC agrees that optional

units should remain available in

California and has amended section 2(b)

(redesignated 2(a)) accordingly.

Premium rates also will reflect adoption

of this change.

Comment: An insurance service

organization and reinsured companies

indicated that the ‘‘earlier of’’ * * *

aspect of section 3(b) eliminates the

need for item (1). Item (2), the acreage

reporting date, will always be earlier

than item (1) (August 20). One comment

questioned why the provision allows

until August 20 to obtain signed

contracts in all but a few counties in

California.

Response: Section 3(b) was not

intended to indicate the earlier of item

(1) or (2). It was intended to indicate the

earlier of August 20 or the date of

damage only in those counties with a

July 15 acreage reporting date, and the

earlier of the acreage reporting date or

the date of damage in all other counties.

In years of high production, it is

common for contracts in northern

California counties to be signed as late

as August 20. The provision was

designed to accommodate this practice

and permit insurance to continue for all

contracted tonnage. The provision has

been clarified accordingly.

Comment: Five comments from

reinsured companies asked why section

3(c) was changed to reduce the price

election rather than the production

guarantee.
Federal Register / Vol. 62, No. 202 / Monday, October 20, 1997 / Rules and Regulations 54341

Response: The Federal Crop Insurance

Act authorizes FCIC to reduce the

payment to producers who elect

catastrophic coverage for acreage that is

not harvested or for any other costs that

are not incurred if the crop is lost prior

to harvest. The change is in compliance

with this provision of law.

Comment: An insurance service

organization and a reinsured company

stated that provisions in section 6 that

require the producer to provide a copy

of the processor contract no later than

the acreage reporting date: (1) Could

allow producers to wait until the

acreage reporting date to decide if they

want coverage; and (2) will be nearly

impossible to implement since

processor contracts will not be finalized

by the dates specified in section 3.

Response: Virtually all processor

contracts should be completed within

the time frame provided for in the

policy. Production covered by contracts

completed after these time frames will

not be insured. Therefore, no change has

been made.

Comment: A reinsured company

questioned why the price election for

unharvested acreage is used in the

premium calculations in section 7.

Response: The provision should have

referred to the price election for the

third (final) stage. The provision has

been revised accordingly.

Comment: An insurance service

organization and a reinsured company

stated that section 8(b) is confusing and

seems to indicate that the landlord does

not have a share unless the landlord’s

name is written on the tomato contract.

Another reinsured company interpreted

the provision to mean that a tenant

cannot have a share since that person

does not retain possession of the

acreage.

Response: The language in 8(b) is

intended to cover a producer who has

a crop share arrangement, who rents, or

who owns acreage. The provision has

been clarified by indicating that control

of the acreage is retained rather than

possession.

Comment: An insurance service

organization stated that section 8(a)(4)

would allow coverage by written

agreement or Special Provisions on

tomatoes following tomatoes in either of

the two previous years, interplanted

with another crop or planted into an

established grass or legume and asked if

these practices would ever be allowed

by the processor contract. The comment

indicated that consideration should be

given to inserting some of this language

into the Basic Provisions since it is

duplicated in most Crop Provisions.

Response: Some processor contracts

may not stipulate rotation or planting

practices. Therefore, the provisions have

been retained to limit insurance when a

crop is interplanted, planted into a grass

or legume, or is planted in an unusual

rotation. These provisions vary among

Crop Provisions and therefore, should

not be moved to the Basic Provisions.

Therefore, no change has been made.

Comment: An insurance service

organization and a reinsured company

questioned whether the provisions in

sections 10(a) and (b) that end the

insurance period on the date sufficient

production is harvested to fulfill the

producers processor contract: (a)

Eliminate unit division benefits or (b)

conflict with the provision in section

12(a) that states ‘‘We will determine

your loss on a unit basis.’’ The

commenters questioned whether

production to count from an appraisal

prior to harvest would be included

when determining fulfillment of the

processor contract. The insurance

service organization questioned whether

the insured would know when enough

production is harvested to fulfill the

processor contract. This commenter

asked if production exceeding the

contracted amount is considered

production to count for APH or loss

adjustment or whether the processor

settlement sheet is the only acceptable

record. One commenter also questioned

whether ‘‘delivered to’’ is the same as

‘‘acceptable by’’ the processor.

Response: Sections 10(a) and (b) do

not eliminate unit division provisions or

conflict with section 14(a). All

indemnities will be paid on a unit basis.

Once acreage is harvested and the

processor contract is fulfilled, the

insurance period ends. If there is

unharvested production and the

processor contract has not been

fulfilled, due to an insured cause of loss

is still covered. Appraised acreage will

not be used to determine whether the

contract has been fulfilled and the

insurance period ends, although it will

be used to determine production to

count and in determining the producer’s

APH. When determining production to

count, only the harvested production

shown on the settlement sheet or

rejected as a result of uninsured cause

of loss will be used. FCIC has revised

section 10(a) to clarify that insurance

ceases ‘‘the date you harvest sufficient

production to fulfill your processor

contract if your processor contract

stipulates a specific amount of

production to be delivered.’’ The

contract is not fulfilled if the production

is not accepted by the processor.

However, rejected production maybe

considered as production to count

unless damaged by an insurable cause of

loss occurring during the insurance

period. Further, records are maintained

as production is delivered to the

processor. Therefore, the insured should

know when the contract is fulfilled.

Comment: An insurance service

organization questioned the summary of

changes to the proposed rule in section

13(a)(2). The commenter stated the

summary of changes says ‘‘the producer

must give notice on or before the date

the tomatoes should be harvested if any

acreage on a unit will not be harvested,’’

but the provision states the producer

must give notice ‘‘not later than 48

hours after: (1) Total destruction of the

tomatoes in the unit; or (2)

Discontinuance of harvest on a unit on

which production remains.

Response: FCIC agrees that the

summary was in error and the

provisions as proposed are correct.

Comment: An insurance service

organization questioned the notification

requirement in section 13(b), which

states that the insured must notify the

insurance provider ‘‘within 3 days of

the date harvest should have started on

any acreage that will not be

harvested...’’ The commenter stated

there is a difference between notice

‘‘within 3 days’’ as the policy provision

indicates and ‘‘on or before’’ as item 21

of the summary of changes indicates.

The commenter also asked how the date

tomatoes should have been harvested

will be determined.

Response: The summary of changes

was not correct. It should have

indicated ‘‘within 3 days after the date

harvest should have started....’’ The

insured is best able to assess the date

tomatoes should be harvested based on

the maturity of the crop. Therefore, no

change has been made.

Comment: An insurance service

organization stated that the language in

13(c) does not address timely notice if

damage is discovered less than 15 days

prior to harvest.

Response: The notice requirement in

section 13 are in addition to the

requirements in section 14 of the Basic

Provisions that require notice of loss

within 72 hours of initial discovery of

damage. Notice within this time period

would be required if damage is

discovered less than 15 days before

harvest. If damage is discovered during

harvest, notice must be given

immediately. FCIC believes that these

provisions, as a whole, are adequate.

Therefore, no change has been made.

Comment: An insurance service

organization stated that section

14(c)(1)(iii) should not allow the

insured to defer settlement and wait for

a later, generally lower appraisal,

especially on crops that have a short

‘‘shelf life.’’
54342 Federal Register / Vol. 62, No. 202 / Monday, October 20, 1997 / Rules and Regulations

Response: A later appraisal will only

be necessary if the insurance provider

agrees that such an appraisal would

result in a more accurate determination

and if the producer continues to care for

the crop. If the producer does not

continue to care for the crop, the

original appraisal will be used.

Therefore, no change has been made.

Comment: A reinsured company

recommended removal of the

requirement to renew written

agreements each year if there are no

significant changes to the farming

operation.

Response: Written agreements are

intended to supplement policy terms or

permit insurance in unusual situations

that require modification of the

otherwise standard insurance

provisions. If such practices continue

from year to year, they should be

incorporated into the policy or Special

Provisions. It is important to minimize

written agreement exceptions to assure

that the insured is well aware of the

specific terms of the policy. FCIC has

proposed that the written agreement

provision be included in the Basic

Provisions. Therefore, no change has

been made.

In addition to the changes described

above, FCIC has made minor editorial

changes and has amended the following

Processing Tomato Provisions:

1. The paragraph preceding section 1

is amended to include the Catastrophic

Risk Protection Endorsement.

2. Section 1—Added a definition of

‘‘approved yield’’. The definitions of

‘‘bypassed acreage,’’ ‘‘planted acreage’’

‘‘practical to replant’’ ‘‘production

guarantee (per acre)’’ and ‘‘replanting’’

have been revised for clarification.

3. Removed the reference to ‘‘written

agreement’’ in section 2(a) of the

proposed rule and added it to section

2(e)(4) of the final rule to clarify which

provisions may be revised by written

agreement.

4. Section 2(a)—Added provisions to

clarify that no indemnity will be paid

for any loss of production on any unit

if the insured produced a crop sufficient

to fulfill the processor contracts forming

the basis for the guarantee, and any

indemnity will be limited to the amount

necessary to compensate for loss in

yield at the price elected between

production to count and the contract

requirements.

5. Section 3(b)—Has been revised for

clarification.

6. Section 3(e)—Added provisions to

clarify when appraised production on

bypassed acreage not bypassed due to

an insurable cause of loss will be used

when determining the producer’s

approved yield.

7. Section 3(f)—Added provisions to

clarify when acreage is bypassed

because it was damage by an insurable

cause of loss to the extent that the

processor cannot use the product will be

considered to have a zero yield when

determining your approved yield.

8. Section 6—Clarify a producer must

provide a copy of all processor contracts

to us on or before the acreage reporting

date in all counties, unless otherwise

specified in the Special Provisions.

9. Sections 8(b), (c)(1), (2), and (3)—

Have been revised for clarification.

10. Section 10(a)—Revised to conform

this provision with other processing

crop provisions, which specify that once

the processor contract has been fulfilled,

the insurance period will end if the

processor contract stipulates a specific

amount of production.

11. Section 10(b)—Clarify that the

insurance period will end when the

crop should have been harvested.

12. Section 11(a)(5)—Clarified the

wildlife cause of loss by deleting the

language ‘‘unless proper measures to

control wildlife have not been taken’’ to

be consistent with other crop

provisions.

13. Section 11(a)(ii)—Has been

revised for clarification.

14. Section 11(a)(9)—Deleted this

provision because it is unnecessary

since other listed causes of loss are what

results in physical damage.

15. Section 11(b)(4)—Deleted this

provision since such damage would

occur outside the insurance period

specified in section 10.

16. Section 13(b)—Clarified that the

insured must give notice of loss within

3 days after the date harvest should

have started is the acreage will not be

harvested. The insured must also

provide documentation stating why the

acreage was bypassed.

17. Section 14(b)(1) thru (7)—Revised

and added an example of settlement of

claim.

18. Section 14(c)(E)—Deleted this

provision as proposed.

19. Section 14(c)(iii)—Added

provisions to clarify production on

acreage that is bypassed unless the

acreage was bypassed due to an insured

cause of loss which resulted in

production which would not be

acceptable under the terms of the

processor contract. 14(c)(iii) as proposed

has been redesignated as 14(c)(iv).

20. Section 14(d)—Clarified that once

harvest has begun on acreage covered by

a processor contract that specifies the

number of tons to be delivered, the total

indemnity payable will be limited to an

amount based on the lesser of the

guaranteed tons, or the tons remaining

unfulfilled under the processor contract.

21. Section 15—Added statement that

late and prevented planting is not

applicable to processing tomatoes.

22. Section 16—Written agreements

had been redesignated. Clarify when

provisions of the policy may be altered

by written agreement.

List of Subjects in CFR Parts 401 and

457

Crop insurance, Canning and

processing tomato endorsement,

Processing tomato.

Final Rule

Accordingly, for the reasons set forth

in the preamble, the Federal Crop

Insurance Corporation hereby amends 7

CFR parts 401 and 457 as follows:

PART 401—GENERAL CROP

INSURANCE REGULATIONS

1. The authority citation for 7 CFR

part 401 is revised to read as follows:

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

2. Section 401.114 introductory text is

revised to read as follows:

§ 401.114 Canning and processing tomato

endorsement.

The provisions of the Canning and

Processing Tomato Crop Insurance

Endorsement for the 1988 through the

1997 crop years are as follows:

* * * * *

PART 457—COMMON CROP

INSURANCE REGULATIONS;

REGULATIONS FOR THE 1994 AND

SUBSEQUENT CONTRACT YEARS

3. The authority citation for 7 CFR

part 457 continues to read as follows:

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

4. Section 457.160 is added to read as

follows:

§ 457.160 Processing tomato crop

insurance provisions.

The Processing Tomato Crop

Insurance Provisions for the 1998 and

succeeding crop years are as follows:

FCIC policies:

UNITED STATES DEPARTMENT OF

AGRICULTURE

Federal Crop Insurance Corporation

Reinsured policies:

(Appropriate title for insurance provider)

Both FCIC and reinsured polices:

Processing Tomato Crop Provisions

If a conflict exists among the policy

provisions the order of priority is as follows:

(1) the Catastrophic Risk Protection

Endorsement, if applicable; (2) the Special

Provisions; (3) these Crop Provisions; and (4)

the Basic Provisions (§ 457.8) with (1)

controlling (2) etc.
Federal Register / Vol. 62, No. 202 / Monday, October 20, 1997 / Rules and Regulations 54343

1. Definitions

Acre. 43,560 square feet of land on which

row widths do not exceed 6 feet, or the land

on which at least 7,260 linear feet rows are

planted if row widths exceed 6 feet.

Approved yield. The yield determined in

accordance with 7 CFR part 400, subpart (g).

Bypassed acreage. Land on which

production is ready for harvest but the

processor elects not to accept such

production so it is not harvested.

Days. Calendar days.

FSA. The Farm Service Agency, an agency

of the United States Department of

Agriculture, or a successor agency.

Final planting date. The date contained in

the Special Provisions for the insured crop by

which the crop must initially be planted in

order to be insured for the full production

guarantee.

First fruit set. The reproductive stage of the

plant at which 30 percent of the plants have

produced a fruit that has reached a minimum

of one inch in diameter.

Good farming practices. The cultural

practices generally in use in the county for

the crop to make normal progress toward

maturity and produce at least the yield used

to determine the production guarantee and

are those required by the tomato processor

contract with the processing company, and

are those recognized by the Cooperative State

Research, Education, and Extension Service

as compatible with agronomic and weather

conditions in the county.

Harvest. The severance of tomatoes from

the vines.

Interplanted. Acreage on which two or

more crops are planted in a manner that does

not permit separate agronomic maintenance

or harvest of the insured crop.

Irrigated practice. A method of producing

a crop by which water is artificially applied

during the growing season by appropriate

systems and at the proper times, with the

intention of providing the quantity of water

needed to produce at least the yield used to

establish the irrigated production guarantee

on the irrigated acreage planted to the

insured crop.

Plant stand. The number of plants per acre

considered to be normal for the applicable

tomato variety and growing area.

Planted acreage. Land in which seed or

plants have been placed by a machine

appropriate for the insured crop and planting

method, at the correct depth, into a seedbed

that has been properly prepared for the

planting method and production practice.

Tomatoes must initially be placed in rows to

be considered planted. Acreage planted in

any other manner will not be insurable

unless otherwise provided by the Special

Provisions or by written agreement.

Practical to replant. In lieu of the

definition of ‘‘Practical to replant’’ contained

in section 1 of the Basic Provisions, practical

to replant is defined as our determination,

after loss or damage to the insured crop,

based on factors, including but not limited to

moisture availability, marketing window,

condition of the field, and time to crop

maturity, that replanting the insured crop

will allow the crop to attain maturity prior

to the calendar date for the end of the

insurance period. It will not be considered

practical to replant unless the replanted

acreage can produce at least 75% of the

approved yield, and the processor agrees in

writing that it will accept the production

from the replanted acreage.

Processor. Any business enterprise

regularly engaged in processing tomatoes for

human consumption, that possesses all

licenses and permits for processing tomatoes

required by the state in which it operates,

and that possesses facilities, or has

contractual access to such facilities, with

enough equipment to accept and process

contracted processing tomatoes within a

reasonable amount of time after harvest.

Processor contract. A written agreement

between the producer and a processor,

containing at a minimum:

(a) The producer’s commitment to plant

and grow processing tomatoes, and to deliver

the tomato production to the processor;

(b) The processor’s commitment to

purchase all the production stated in the

processor contract; and

(c) A price per ton that will be paid for the

production.

Production guarantee (per acre). The

number of tons determined by multiplying

the approved yield per acre by the coverage

level percentage you elect.

Replanting. Performing the cultural

practices necessary to prepare the land to

replace the seed or plants of the damaged or

destroyed crop and then replacing the seed

or plants in the insured acreage.

Timely planted. Planted on or before the

final planting date designated in the Special

Provisions for the insured crop in the county.

Ton. Two thousand (2,000) pounds

avoirdupois.

USDA. United States Department of

Agriculture.

Written agreement. A written document

that alters designated terms of this policy in

accordance with section 16.

2. Unit Division

(a) Unless limited by the Special

Provisions, a basic unit, as defined in section

in section 1 of the Basic Provisions, may be

divided into optional units if, for each

optional unit, you meet all the conditions of

this section. Notwithstanding the provisions

of this section on unit division, no indemnity

will be paid for any loss of production on any

unit if the insured produced a crop sufficient

to fulfill the processor contracts forming the

basis for the guarantee, and any indemnity

will be limited to the amount necessary to

compensate for loss in yield at the price

elected between production to count and the

contract requirements.

(b) Basic units may not be divided into

optional units on any basis other than as

described in this section.

(c) If you do not comply fully with these

provisions, we will combine all optional

units that are not in compliance with these

provisions into the basic unit from which

they were formed. We will combine the

optional units at any time we discover that

you have failed to comply with these

provisions. If failure to comply with these

provisions is determined to be inadvertent,

and the optional units are combined into a

basic unit, that portion of the additional

premium paid for the optional units that

have been combined will be refunded to you.

(d) All optional units you selected for the

crop year must be identified on the acreage

report for that crop year.

(e) The following requirements must be

met for each optional unit:

(1) You must have provided records by the

production reporting date, which can be

independently verified, of planted acreage

and production for each optional unit for at

least the last crop year used to determine

your production guarantee;

(2) You must plant the crop in a manner

that results in a clear and discernable break

in the planting pattern at the boundaries of

each optional unit;

(3) For each crop year, records of marketed

production or measurement of stored

production from each optional unit must be

maintained in such a manner that permits us

to verify the production from each optional

unit, or the production from each unit must

be kept separate until loss adjustment is

completed by us; and

(4) Each optional unit must meet one or

more of the following criteria, as applicable,

unless otherwise specified by written

agreement:

(i) Optional units by Section, Section

Equivalent, or FSA Farm Serial Number:

Optional units may be established if each

optional unit is located in a separate legally

identified section. In the absence of sections,

we may consider parcels of land legally

identified by other methods of measure, such

as Spanish grants, as the equivalent of their

sections for unit purposes. In areas that have

not been surveyed using sections are

equivalent systems, or in areas where such

systems exist but boundaries are not readily

discernable, each optional unit must be

located in a separate farm identified by a

single FSA Farm Serial Number.

(ii) Optional Units on Acreage Including

Both Irrigated and Non-irrigated Practices: In

addition to, or instead of, establishing

optional units by section, section equivalent,

or FSA Farm Serial Number, optional units

may be based on irrigated acreage and nonirrigated acreage (in those counties where

‘‘non-irrigated’’ practice is allowed in the

actuarial table) if both are located in the same

section, section equivalent, or FSA Farm

Serial Number. To qualify as separate

irrigated and non-irrigated optional units, the

non-irrigated acreage may not continue into

the irrigated acreage in the same rows or

planting pattern. The irrigated acreage may

not extend beyond the point at which the

irrigation system can deliver the quantity of

water needed to produce the yield on which

the guarantee is based, except the corners of

a field in which a center-pivot irrigation

system is used will be considered as irrigated

acreage if separate acceptable records of

production from the corners are not

provided. If the corners of a field in which

a center-pivot irrigation system is used do

not qualify as a separate non-irrigated

optional unit, they will be a part of the unit

containing the irrigated acreage. Nonirrigated acreage that is not a part of a field

in which a center-pivot irrigation system is

used may qualify as a separate optional unit

provided that all other requirements of this

section are met.
54344 Federal Register / Vol. 62, No. 202 / Monday, October 20, 1997 / Rules and Regulations

(iii) Optional Units on Separate Acreage

Planted to Tomatoes: In California only, in

addition to or instead of establishing optional

units by section, section equivalent, or FSA

Farm Serial Number, optional units may be

established if acreage planted to tomatoes is

separated by a field that is not planted to

tomatoes, or by a permanent boundary such

as a permanent waterway, fence, public road

or woodland. Such optional unit must

consist of the minimum number of acres

stated in the Special Provisions. Acreage

planted to tomatoes that is less than the

minimum number of acres required will

attach to the closest unit within the section,

section equivalent or FSA Farm Serial

Number.

3. Insurance Guarantees, Coverage Levels,

and Prices for Determining Indemnities

In addition to the requirements of section

3 of the Basic Provisions:

(a) You may select only one price election

for all the processing tomatoes in the county

insured under this policy unless the Special

Provisions provide different price elections

by type. The percentage of the maximum

price election you choose for one type will

be applicable to all other types insured under

this policy. For example, if you choose 100

percent of the maximum price election for

one type, you must also choose 100 percent

of the maximum price election for all other

types.

(b) Liability under this policy will not

exceed the number of tons required to be

accepted by the processor under a processor

contract in effect on or before:

(1) The earlier of August 20 or the date of

damage to the insured crop in all counties

with an acreage reporting date of July 15; or

(2) The earlier of the acreage reporting date

or the date of damage in all other counties.

(Exclude indemnities that occur in stage one

and replant payments.)

(c) The price election used to determine

the amount of an indemnity is progressive by

stage and increases, at specified intervals, to

the price used for final stage losses. Stages

will be determined on an acre basis. The

stages and applicable price elections are:

(1) First stage is from planting until first

fruit set. If any acreage of the insured crop

is destroyed in this stage, the price used to

establish the amount of any indemnity owed

for such acreage will be 50 percent of your

price election;

(2) Second stage is from the first fruit set

until harvest. If any acreage of the insured

crop is destroyed in this stage, the price used

to establish the amount of any indemnity

owed for such acreage will be 80 percent of

your price election; and

(3) Third stage (final stage) is harvested

acreage. The price election used in this stage

to establish the amount of any indemnity

owed will be 100 percent of your price

election.

(d) Any acreage of tomatoes damaged to the

extent, that the majority of producers in the

area would not normally further care for the

tomatoes, will be deemed to have been

destroyed even though you may continue to

care for it. The price election used to

determine the amount of an indemnity will

be that applicable to the stage in which the

tomatoes were destroyed.

(e) The appraised production from

bypassed acreage that could have been

accepted by the processor will be included

when determining your approved yield.

(f) Acreage that is bypassed because it was

damaged by an insurable cause of loss to the

extent that the processor cannot use the

product will be considered to have a zero

yield when determining your approved yield.

4. Contract Changes

In accordance with section 4 of the Basic

Provisions, the contract change date is

August 31 preceding the cancellation date for

California and November 30 preceding the

cancellation date for all other states.

5. Cancellation and Termination Dates

In accordance with section 2 of the Basic

Provisions, the cancellation and termination

dates are January 15 in California and March

15 in all other states.

6. Report of Acreage

In addition to the provisions of section 6

of the Basic Provisions, you must provide a

copy of all processor contracts to us on or

before the acreage reporting date in all

counties, unless otherwise specified in the

Special Provisions.

7. Annual Premium

In lieu of the premium amount

determinations contained in section 7 of the

Basic Provisions, the annual premium

amount per acre is determined by

multiplying the production guarantee per

acre by the price election for the third (final)

stage; by the premium rate; by the insured

acreage; by the applicable share at the time

of planting; and ultimately by any applicable

premium adjustment factors contained in the

Actuarial Table.

8. Insured Crop

(a) In accordance with section 8 of the

Basic Provisions, the crop insured will be all

the tomatoes in the county for which a

premium rate is provided by the actuarial

table:

(1) In which you have a share;

(2) That are planted for harvest as

processing tomatoes;

(3) That are grown under, and in

accordance with, the requirements of a

processor contract executed on or before

August 20 in all counties with an acreage

reporting date of July 15, or on or before the

acreage reporting date in all other counties,

and are not excluded from the processor

contract for or during the crop year; and

(4) That are not (unless allowed by the

Special Provisions or by written agreement):

(i) Grown on acreage on which tomatoes

were grown in either of the two previous

years, except in California;

(ii) Interplanted with another crop; or

(iii) Planted into an established grass or

legume.

(b) You will be considered to have a share

in the insured crop if, under the processor

contract, you retain control of the acreage on

which the tomatoes are grown, you are at risk

of loss, and the processor contract provides

for delivery of processing tomatoes under

specified conditions and at a stipulated price.

(c) A tomato producer who is also a

processor may establish an insurable interest

if the following requirements are met:

(1) The processor must comply with these

Crop Provisions;

(2) Prior to the sales closing date, the Board

of Directors or officers of the processor must

execute and adopt a resolution that contains

the same terms as an acceptable processor

contract. Such resolution will be considered

a contract under this policy; and

(3) Our inspection provides that the

processing facilities comply with the

definition of a processor contained in these

Crop Provisions.

9. Insurable Acreage

In addition to the provisions of section 9

of the Basic Provisions:

(a) Any acreage of the insured crop that is

damaged before the final planting date, to the

extent that the majority of producers in the

area would normally not further care for the

crop, must be replanted unless we agree that

it is not practical to replant; and

(b) We will not insure any acreage that

does not meet the rotation requirements, if

applicable, contained in the Special

Provisions.

10. Insurance Period

In lieu of the provisions contained in

section 11 of the Basic Provisions, regarding

the end of the insurance period, insurance

ceases at the earlier of the date:

(a) You harvest sufficient production to

fulfill your processor contract if the processor

contract stipulates a specific amount of

production to be delivered;

(b) The tomatoes should have been

harvested but was not harvested;

(c) The tomatoes were abandoned;

(d) Harvest was completed;

(e) Final adjustment of a loss was

completed; or

(f) The following calendar date for the end

of the insurance period

(1) October 20 in California; and

(2) October 10 in all other states.

11. Causes of Loss

In accordance with the provisions of

section 12 of the Basic Provisions:

(a) Insurance is provided only against the

following causes of loss that occur during the

insurance period:

(1) Adverse weather conditions, including:

(i) Excessive moisture that prevents the

harvesting equipment from entering the field

or that prevents the timely operation of

harvesting equipment; and

(ii) Abnormally hot or cold temperatures

that cause an unexpected number of acres

over a large producing area to be ready for

harvest at the same time, affecting the timely

harvest of a large number of such acres or the

processing of such production being beyond

the capacity of the processor, either of which

causes the acreage to be bypassed;

(2) Fire;

(3) Insects, but not damage due to

insufficient or improper application of pest

control measures;

(4) Plant disease, but not damage due to

insufficient or improper application of

disease control measures;

(5) Wildlife;

(6) Earthquake;

(7) Volcanic eruption; or

(8) Failure of the irrigation water supply,

if due to a cause of loss contained in sections
Federal Register / Vol. 62, No. 202 / Monday, October 20, 1997 / Rules and Regulations 54345

11(a)(1) through (7) that occurs during the

insurance period.

(b) In addition to the causes of loss

excluded by section 12 of the Basic

Provisions, we will not insure against any

loss of production due to:

(1) Acreage being bypassed, if the acreage

is bypassed because:

(i) The breakdown or non-operation of

equipment or facilities; or

(ii) The availability of a crop insurance

payment. We may deny any indemnity

immediately in such circumstance or, if an

indemnity has been paid, require you to

repay it to us with interest at any time

acreage was bypassed due to the availability

of a crop insurance payment;

(2) The processing tomatoes not being

timely harvested, unless such delay in

harvesting is solely and directly due to an

insured cause of loss; or

(3) Your failure to follow the requirements

contained in the processor contract.

12. Replanting Payment

(a) In accordance with section 13 of the

Basic Provisions, a replanting payment is

allowed if the crop sustained a loss

exceeding 50 percent of the plant stand and

it is practical to replant.

(b) The maximum amount of the replanting

payment per acre will be the lesser of 20

percent of the production guarantee or three

tons, multiplied by your third stage (final)

price election, multiplied by your share.

13. Duties in the Event of Damage or Loss

In addition to the notice required by

section 14 of the Basic Provisions, you must

give us notice:

(a) Not later than 48 hours after:

(1) Total destruction of the tomatoes in the

unit; or

(2) Discontinuance of harvest on a unit on

which unharvested production remains;

(b) Within 3 days after the date harvest

should have started on any acreage that will

not be harvested. You must also provide

acceptable documentation of the reason the

acreage was bypassed. Failure to provide

such documentation will result in our

determination that the acreage was bypassed

due to an uninsured cause of loss. If the crop

will not be harvested and you wish to destroy

the crop, you must leave representative

samples of the unharvested crop for our

inspection. The samples must be at least 10

feet wide and extend the entire length of each

field in the unit. The samples must not be

destroyed until the earlier of our inspection

or 15 days after notice is given to us; and

(c) At least 15 days prior to the beginning

of harvest if you intend to claim an

indemnity on any unit, or immediately if

damage is discovered during the 15 day

period or during harvest, so that we may

inspect the damaged production. If you fail

to notify us and such failure results in our

inability to inspect the damaged production,

we will consider all such production to be

undamaged and include it as production to

count. You are not required to delay harvest.

14. 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) In the event of loss or damage covered

by this policy, we will settle your claim by:

(1) Multiplying the insured acreage by its

respective production guarantee, by type if

applicable;

(2) Multiplying each result of section

14(b)(1) by the respective price election, by

type if applicable;

(3) Totaling the results of section 14(b)(2)

if there are more than one type;

(4) Multiplying the total production to

counted (see section 14(c)), for each type if

applicable, by its respective price election;

(5) Totaling the results of section 14(b)(4)

if there are more than one type;

(6) Subtracting the result of section 14(b)(4)

from the result of section 14(b)(2) if there is

only one type or subtracting the result of

section 14(b)(5) from the result of section

14(b)(3) if there are more than one type; and

(7) Multiplying the result of section

14(b)(6) by your share.

For example:

You have a 100 percent share in 50 acres

of type A processing tomatoes in the unit,

with a guarantee of 18.8 tons per acre and a

price election of $50.00 per ton. You are only

able to harvest 10.0 tons. Your indemnity

would be calculated as follows:

(1) 50.0 acres × 18.8 tons = 940.0 tons

guarantee;

(2) 940.0 tons × $50.00 price election =

$47,000.00 value guarantee;

(4) 10.0 tons × $50.00 price election =

$500.00 value of production to count;

(6) $47,000.00¥$500.00 = $46,500.00 loss;

and

(7) $46,500 × 100 percent = $46,500.00

indemnity payment.

You also have a 100 percent share in 50

acres of type B processing tomatoes in the

same unit, with a guarantee of 15.0 tons per

acre and a price election of $35.00 per ton.

You are only able to harvest 5.0 tons. Your

total indemnity for both types A and B would

be calculated as follows:

(1) 50.0 acres × 18.8 tons = 940.0 ton

guarantee for type A and 50.0 acres × 15.0

tons = 750.0 ton guarantee for type B;

(2) 940.0 ton guarantee × $50.00 price

election = $47,000.00 value of guarantee for

type A and 750.0 ton guarantee × $35.00 =

$26,500.00 value of guarantee for type B;

(3) $47,000.00 + $26,500.00=$72,500.00

total value of guarantee;

(4) 10.0 tons × $50.00 price

election=$500.00 value of production to

count for type A and 5.0 tons × $35.00 price

election=$175.00 value of production to

count for type B;

(5) $500.00 + $175.00=$675.00 total value

of production to count;

(6) $72,500.00¥$675.00=$71,575.00 loss;

and

(7) $71,575 loss × 100 percent=$71,575.00

indemnity payment.

(c) The total production to count, specified

in tons, from all insurable acreage on the unit

will include:

(1) All appraised production as follows:

(i) Not less than the production guarantee

for acreage:

(A) That is abandoned;

(B) Put to another use without our consent;

(C) That is damaged solely by uninsured

causes; or

(D) For which you fail to provide

production records that are acceptable to us.

(ii) Production lost due to uninsured

causes;

(iii) Production on acreage that is bypassed

unless the acreage was bypassed due to an

insured cause of loss which resulted in

production which would not be acceptable

under the terms of the processor contract;

(iv) Potential production on insured

acreage that you intend to put to another use

or abandoned, if you and we agree on the

appraised amount of production. Upon such

agreement, the insurance period for that

acreage will end when you put the acreage

to another use or abandon the crop. If

agreement on the appraised amount of

production is not reached:

(A) If you do not elect to continue to care

for the crop, we may give you consent to put

the acreage to another use if you agree to

leave intact, and provide sufficient care for,

representative samples of the crop in

locations acceptable to us, (The amount of

production to count for such acreage will be

based on the harvested production or

appraisals from the samples at the time

harvest should have occurred. If you do not

leave the required samples intact, or you fail

to provide sufficient care for the samples, our

appraisal made prior to giving you consent to

put the acreage to another use will be used

to determine the amount of production to

count); or

(B) If you elect to continue to care for the

crop, the amount of production to count for

the acreage will be the harvested production,

or our reappraisal if additional damage

occurs and the crop is not harvested;

(2) All harvested production (in tons)

delivered to the processor which meets the

quality requirements of the processor

contract (expressed as usable or payable

weight).

(3) All harvested tomato production

delivered to processor which does not meet

the quality requirements of the processor

contract due to not being timely delivered.

(d) Once harvest has begun on any acreage

covered by a processor contract that specifies

the number of tons to be delivered, the total

indemnity payable will be limited to an

amount based on the lesser of the guaranteed

tons, or the tons remaining unfulfilled under

the processor contract.

15. Late and Prevented Planting

The late and prevented planting provisions

of the Basic Provisions are not applicable.

16. Written Agreements.

Terms of this policy which are specifically

designated for the use of written agreements

may be altered by written agreement in

accordance with the following:

(a) You must apply in writing for each

written agreement no later than the sales

closing date, except as provided in section

16(e);

(b) The application for a written agreement

must contain all variable terms of the
54346 Federal Register / Vol. 62, No. 202 / Monday, October 20, 1997 / Rules and Regulations

contract between you and us that will be in

effect if the written agreement is not

approved;

(c) If approved, the written agreement will

include all variable terms of the contract,

including, but not limited to, crop type or

variety, the guarantee, premium rate, and

price election;

(d) Each written agreement will only be

valid for one year (If the written agreement

is not specifically renewed the following

year, insurance coverage for subsequent crop

years will be in accordance with the printed

policy); and

(e) An application for a written agreement

submitted after the sales closing date may be

approved if, after physical inspection of the

acreage, it is determined that no loss has

occurred and the crop is insurable in

accordance with the policy and written

agreement provisions.

Signed in Washington, D.C., on October 10,

1997.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 97–27652 Filed 10–17–97; 8:45 am]

BILLING CODE 3410–08–P

DEPARTMENT OF JUSTICE

Immigration and Naturalization Service

8 CFR Parts 213a and 299

[INS No. 1807–96]

RIN 1115–AE58

Affidavits of Support on Behalf of

Immigrants

AGENCY: Immigration and Naturalization

Service, Justice.

ACTION: Interim rule with request for

comments.

SUMMARY: This rule amends the

Immigration and Naturalization Service

(Service) regulations by establishing that

an individual (the sponsor) who files an

affidavit of support under section 213A

of the Immigration and Nationality Act

(the Act) on behalf of an intending

immigrant incurs an obligation that may

be enforced by a civil action. This rule

also specifies the procedures that

Federal, State, or local agencies or

private entities must follow to seek

reimbursement from the sponsor for

provision of means-tested public

benefits, and provides procedures of

imposing the civil penalty provided for

under section 213A of the Act, if the

sponsor fails to give notice of any

change of address. This rule is necessary

to ensure that sponsors of aliens meet

their obligations under section 213A of

the Act.

DATES: Effective Date: This interim rule

is effective on December 19, 1997.

Comment Date: Written comments

must be submitted on or before February

17, 1998.

ADDRESSES: Please submit written

comments, in triplicate, to the Director,

Policy Directives and Instructions

Branch, Immigration and Naturalization

Service, 425 I Street NW., Room 5307,

Washington, DC 20536. To ensure

proper handling, please reference INS

No. 1807–96 on your correspondence.

Comments are available for public

inspection at the above address by

calling (202) 514–3048 to arrange for an

appointment.

FOR FURTHER INFORMATION CONTACT:

Miriam J. Hetfield, Office of

Adjudications, Immigration and

Naturalization Service, 425 I Street NW.,

Room 3214, Washington, DC 20536;

telephone (202) 514–5014; or Lisa S.

Roney, Office of Policy and Planning,

425 I Street NW., Room 6052,

Washington, DC 20536; telephone (202)

514–3242.

SUPPLEMENTARY INFORMATION: On

September 30, 1996, the President

approved enactment of the Illegal

Immigration Reform and Immigrant

Responsibility Act of 1996 (IIRIRA),

Public Law 104–208. Section 531(a) of

IIRIRA amends section 212(a)(4) of the

Act to provide that an alien is

inadmissible as an alien likely to

become a public charge if the alien is

seeking an immigrant visa, admission as

an immigrant, or adjustment of status as:

(a) An immediate relative, (b) a familybased immigrant, or (c) an employmentbased immigrant, of a relative if the

alien is the petitioning employer or

owns a significant ownership interest in

the entity that is the petitioning

employer. To overcome this ground of

inadmissibility, the alien must be the

beneficiary of an affidavit of support

filed under the new section 213A of the

Act. Section 213A of the Act specifies

the conditions that must be met in order

for an affidavit of support to be

sufficient to overcome the public charge

inadmissibility ground.

Under 531(b) of IIRIRA, the new

affidavit of support will be required for

all applications for immigrant visas or

for adjustment of status filed on or after

December 19, 1997. Section 531(b) of

IIRIRA excuses an applicant for

admission from the affidavit of support

requirement if the applicant had ‘‘an

official interview with an immigration

officer’’ before December 19, 1997.

Because of the massive administrative

burden that would result from requiring

aliens who obtain immigrant visas

before December 19, 1997, but do not

apply for admission until on or after

December 19, 1997, this interim rule

designates Consular Officers as

Immigration Officers, solely for

purposes of section 531 of IIRIRA and

this new part 213a. Thus, an alien who

is issued an immigrant visa before

December 19, 1997 will not be required

to present an affidavit of support that

complies with the requirements of

section 213A of the Act, even if the

alien does not apply for admission until

December 19, 1997, or later.

Under section 213A of the Act, Form

I–864, Affidavit of Support Under

Section 213A of the Act, is a legally

enforceable contract between the

sponsor and the Federal Government,

for the benefit of the sponsored

immigrant and of any Federal, State, or

local government agency or private

entity that provides the sponsored

immigrant with any means-tested public

benefit. The sponsor must sign the Form

I–864 before a notary public or a United

States Immigration Officer or Consular

Officer. By executing Form I–864, the

sponsor agrees to provide the financial

support necessary to maintain the

sponsored immigrant at an income that

is at least 125 percent of the Federal

poverty line, unless the obligation has

terminated. The sponsor also agrees to

reimburse any agencies which provide

means-tested public benefits to a

sponsored immigrant. The sponsor

must, under civil penalty, notify the

Service and the State(s) in which the

sponsored immigrant(s) reside of any

change in the sponsor’s address. Should

the sponsored immigrant obtain any

means-tested public benefit, with

certain exceptions, the agency that

provides the means-tested public benefit

may, after first making a written request

for reimbursement, sue the sponsor in

Federal or State court to recover the

unreimbursed costs of the means-tested

public benefit, including costs of

collection and legal fees. This interim

rule implements section 213A of the Act

by adding a new 8 CFR part 213a.

Intending immigrants who require an

affidavit of support under section 213A

of the Act

Under section 212(a)(4)(C) of the Act,

all family-sponsored immigrants,

including immediate relatives, are

inadmissible unless the petitioner has

executed an affidavit of support under

section 213A of the Act. Aliens who

immigrate under the classification for

battered spouses and children and

widow/widowers (see sections

204(a)(1)(A) (ii), (iii), or (iv) and

204(a)(1)(B) (ii) or (iii) of the Act) do not

require a Form I–864 to overcome the

public charge ground of inadmissibility.

The Act also provides that certain

employment-based immigrants under

section 203(b) of the Act are