40630 Federal Register / Vol. 63, No. 146 /Thursday, July 30, 1998 /Rules and Regulations

5. In § 70.80, the chart is revised to

read as follows:

§ 70.80 General.

* * * * *

Containers in lot Containers in sample

1–4 ............................ All.

5–50 .......................... 4.

51–100 ...................... 5.

101–200 .................... 6.

201–400 .................... 7.

401–600 .................... 8.

For each additional

100 containers, or

fraction thereof, in

excess of 600 containers.

Include one additional

container.

6. In § 70.110, paragraph (b) is revised

to read as follows:

§ 70.110 Requirements for sanitation,

facilities, and operating procedures in

official plants.

* * * * *

(b) With respect to grading services,

there shall be a minimum of 100-foot

candles of light intensity at grading

stations; and acceptable means, when

necessary, of maintaining control and

identity of products segregated for

quality, class, condition, weight, lot, or

any other factor which may be used to

distinguish one type of product from

another.

Dated: July 23, 1998.

Enrique E. Figueroa,

Administrator, Agricultural Marketing

Service.

[FR Doc. 98–20321 Filed 7–29–98; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 400 and 402

RIN 0563–AB68

General Administrative Regulations,

Subpart U; and Catastrophic Risk

Protection Endorsement; Regulations

for the 1999 and Subsequent

Reinsurance Years

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Interim rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) amends the General

Administrative Regulations, Subpart

U—Ineligibility for Programs Under the

Federal Crop Insurance Act and the

Catastrophic Risk Protection

Endorsement to conform with the

statutory mandates of the Agricultural

Research, Extension, and Education

Reform Act of 1998 (1998 Research Act).

EFFECTIVE DATE: This rule is effective

July 1, 1998. Written comments and

opinions on this rule will be accepted

until the close of business September

28, 1998, and will be considered when

the rule is to be made final.

ADDRESSES: Interested persons are

invited to submit written comments to

the Director, Product Development

Division, Federal Crop Insurance

Corporation, United States Department

of Agriculture, 9435 Holmes Road,

Kansas City, MO 64131. A copy of each

response will be available for public

inspection and copying from 7:00 a.m.

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

Friday, except holidays, at the above

address.

FOR FURTHER INFORMATION CONTACT:

Louise Narber, Insurance Management

Specialist, Research and Development,

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

economically significant for the

purposes of Executive Order 12866 and,

therefore, has been reviewed by the

Office of Management and Budget

(OMB).

This action amends FCIC’s regulations

in accordance with the 1998 Research

Act. This rule is being published on an

emergency basis so that affected

producers have the opportunity to make

timely decisions regarding their

insurance plans for the 1999 crop year

for crops with sales closing dates

subsequent to the enactment of the 1998

Research Act. The 1998 Research Act

was signed by the President on June 23,

1998. The first sales closing date

subsequent to the date of signing is July

31, 1998, for raisins in California. This

emergency situation makes timely

compliance with sections 6 (3)(B)(ii)

and (3)(C) of Executive Order 12866

impractical due to the short time to

make this rule effective prior to that

sales closing date. FCIC will complete

the required cost-benefit analysis within

90 days of the publication of this rule

in the Federal Register and will make

such analysis available to the public.

Small Business Regulatory Enforcement

Fairness Act of 1996 (Pub. L. 104–121,

5 U.S.C. Secs. 801–808)

This rule has been designated by the

Office of Information and Regulatory

Affairs, OMB, as a major rule under the

Small Business Regulatory Enforcement

Fairness Act of 1996 (Small Business

Act). However, section 808 of the Small

Business Act exempts a rule from the 60

day delay in effectiveness of a rule

where an agency for good cause finds

that notice and public procedure are

impracticable, unnecessary, or contrary

to the public interest. The Administrator

of the Risk Management Agency (RMA)

has determined that there is good cause

for making this rule effective less than

60 days after submission of the rule to

each House of Congress and to the

Comptroller General because a delay

would be contrary to the public interest.

There are producers affected by this

rule that must make critical risk

management decisions and the deadline

for the first 1999 crop year decisions is

less than 60 days from the July 1, 1998,

effective date of the 1998 Research Act.

A delay in the effective date of this rule

will create instability and inequity

within the program as producers

attempt to determine whether they are

affected and it will create separate

classes of producers who are subjected

to the increased administrative fees and

those who are not.

Further, RMA was required to revise

the Standard Reinsurance Agreement

before the July 1, 1998, start of the 1999

reinsurance year to implement the

provisions of the 1998 Research Act. If

this rule is delayed, it will create

administrative problems for the 1999

reinsurance year because the reinsured

companies will be subject to the

provisions of the 1998 Research Act but

some of their insureds will not.

Paperwork Reduction Act of 1995

Under the provisions of the

Paperwork Reduction Act of 1995 (44

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

information for this rule have been

previously approved by the Office of

Management and Budget (OMB) under

control number 0563–0053 through

October 31, 2000. The amendments set

forth in this rule do not revise the

content or alter the frequency of

reporting for any of the forms or

information collections cleared under

the above-referenced docket.

Unfunded Mandates Reform Act of

1995

Title II of the Unfunded Mandates

Reform Act of 1995 (UMRA), 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 UMRA) for State,

local, and tribal governments or the
Federal Register / Vol. 63, No. 146 /Thursday, July 30, 1998 /Rules and Regulations 40631

private sector. Therefore, this rule is not

subject to the requirements of sections

202 and 205 of UMRA.

Executive Order 12612

It has been determined under section

6(a) of Executive Order 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 regulation does not require any

more action on the part of the small

entities than is required on the part of

large entities. Therefore, this action is

determined to be exempt from the

provisions of the Regulatory Flexibility

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

Flexibility Analysis was prepared.

Federal Assistance Program

This program is listed in the Catalog

of Federal Domestic Assistance under

No. 10.450.

Executive Order 12372

This program is not subject to the

provisions of Executive Order 12372

which require intergovernmental

consultation with State and local

officials. See the Notice related to 7 CFR

part 3015, subpart V, published at 48 FR

29115, June 24, 1983.

Executive Order 12988

This rule has been reviewed in

accordance with Executive Order 12988

on civil justice reform. The provisions

of this rule will not have a retroactive

effect. The provisions of this rule will

preempt State and local laws to the

extent such State and local laws are

inconsistent herewith. The

administrative appeal provisions

published at 7 CFR part 11 must be

exhausted before any action for judicial

review of any determination made by

FCIC may be brought.

Environmental Evaluation

This action is not expected to have a

significant economic impact on the

quality of the human environment,

health, and safety. Therefore, neither an

Environmental Assessment nor an

Environmental Impact Statement is

needed.

Background

This interim rule implements

revisions to this part mandated by the

Federal Crop Insurance Act, as amended

by the 1998 Research Act, enacted June

23, 1998. The 1998 Research Act

requires the provisions be implemented

for the 1999 and subsequent reinsurance

years. Crop insurance policies with a

sales closing date prior to the effective

date of this rule will not be affected by

these provisions until the 2000

reinsurance year. Crop insurance

policies with a sales closing date on or

after the effective date of this rule will

have revised administrative fees. Since

the changes to the policy made by this

rule are required by statute, it is

impractical and contrary to the public

interest to publish this rule for notice

and comment prior to making the rule

effective. However, comments are

solicited for 60 days after the date of

publication in the Federal Register and

will be considered by FCIC before this

rule is made final.

FCIC amends subpart U by revising

the definition of ‘‘debt’’ to remove the

provision that states that a debt does not

include the nonpayment of catastrophic

risk protection coverage administrative

fees.

FCIC amends the Catastrophic Risk

Protection Endorsement as follows:

1. Section 1—Revise the definition of

‘‘administrative fee’’ for clarity.

2. Section 2—Delete the provisions

regarding the termination of the policy

for failure to pay catastrophic risk

protection (CAT) administrative fees

since those provisions have now been

incorporated into the Basic Provisions.

3. Section 6—Revise this section to

specify that the administrative fee for

CAT coverage for each crop in the

county will be $10 plus the greater of

either $50 or 10 percent of the premium

under your CAT policy. Also revise the

date CAT fees will be due to coincide

with when the premium is due for

additional coverage. This rule

eliminates all references to refunding

administrative fees in the event that the

producer decided to change coverage

levels prior to the sales closing date

since fees would not have been paid.

Also, this rule makes the provisions

concerning the payment of

administrative fees in the year of

application consistent with the payment

of administrative fees for limited

coverage. This rule also eliminates the

termination provisions since they have

been incorporated into the Basic

Provisions.

List of Subjects in 7 CFR Parts 400 and

402

Administrative practice and

procedure, Claims, Crop insurance;

Fraud, Reporting and record keeping

requirements; Catastrophic risk

protection endorsement, Insurance

provisions.

Interim Rule

Accordingly, as set forth in the

preamble, the Federal Crop Insurance

Corporation amends 7 CFR parts 400

and 402 as follows:

PART 400—GENERAL

ADMINISTRATIVE REGULATIONS—

SUBPART U—INELIGIBILITY FOR

PROGRAMS UNDER THE FEDERAL

CROP INSURANCE ACT

1. The authority citation for 7 CFR

part 400 continues to read as follows:

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

2. In § 400.677, revise the definition of

‘‘debt’’ to read as follows:

§ 400.677 Definitions.

* * * * *

Debt. An amount of money which has

been determined by an appropriate

agency official to be owed, by any

person, to FCIC or an insurance

provider under any program

administered under the Act based on

evidence submitted by the insurance

provider. The debt may have arisen

from an overpayment, premium or

administrative fee nonpayment, interest,

penalties, or other causes.

* * * * *

PART 402—CATASTROPHIC RISK

PROTECTION ENDORSEMENT;

REGULATIONS FOR THE 1999 AND

SUBSEQUENT REINSURANCE YEARS

3. The authority citation for 7 CFR

part 402 continues to read as follows:

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

4. The part heading is revised as set

forth above.

5. Revise the introductory text of

§ 402.4 to read as follows:

§ 402.4 Catastrophic Risk Protection

Endorsement Provisions

The Catastrophic Risk Protection

Endorsement Provisions for the 1999

and succeeding reinsurance years are as

follows:

* * * * *

6. In § 402.4, amend the endorsement

provisions as follows:

A. In section 1, revise the definition

of ‘‘administrative fee’’ to read as

follows:
40632 Federal Register / Vol. 63, No. 146 /Thursday, July 30, 1998 /Rules and Regulations

§ 402.4 Catastrophic Risk Protection

Endorsement Provisions.

* * * * *

Catastrophic Risk Protection Endorsement

* * * * *

1. Definitions.

* * * * *

Administrative fee. An amount the

producer must pay for catastrophic coverage

each crop year on a per crop and county basis

as specified in section 6.

B. Remove section 2(d).

C. Revise section 6(b) to read as

follows:

* * * * *

6. Annual Premium and Administrative

Fees

* * * * *

(b) In return for catastrophic risk protection

coverage, you must pay an administrative fee

to the insurance provider within 30 days

after you have been billed (You will be billed

by the billing date stated in the Special

Provisions);

(1) The administrative fee owed for each

crop in the county is equal to $10 plus the

greater of either $50 or 10 percent of the

premium subsidy provided for the

catastrophic risk protection coverage.

(2) Payment of an administrative fee will

not be required if you file a bona fide zero

acreage report on or before the acreage

reporting date for the crop (if you falsely file

a zero acreage report you may be subject to

criminal and administrative sanctions).

* * * * *

D. Remove section 6(e).

E. Redesignate section 6(f) as section

6(e) and revise to read as follows:

* * * * *

(e) If the administrative fee is not paid

when due, you, and all persons with an

insurable interest in the crop under the same

contract, may be ineligible for certain other

USDA program benefits as set out in section

12, and all such benefits already received for

the crop year must be refunded.

* * * * *

Signed in Washington, D.C., on July 24,

1998.

Kenneth D. Ackerman,

Manager, Federal Crop Insurance

Corporation.

[FR Doc. 98–20352 Filed 7–27–98; 5:10 pm]

BILLING CODE 3410–08–P

DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 400 and 457

RIN 0563–AB67

General Administrative Regulations,

Subpart T-Federal Crop Insurance

Reform, Insurance Implementation;

Regulations for the 1999 and

Subsequent Reinsurance Years; and

the Common Crop Insurance

Regulations; Basic Provisions; and

Various Crop Insurance Provisions

AGENCY: Federal Crop Insurance

Corporation, USDA.

ACTION: Interim rule.

SUMMARY: The Federal Crop Insurance

Corporation (FCIC) amends subpart T in

the General Administrative Regulations

and the Common Crop Insurance

Regulations, Basic Provisions, to

conform with the statutory mandates of

the Agricultural Research, Extension,

and Education Reform Act of 1998 (1998

Research Act) and to move those

provisions that are terms of insurance

from subpart T into the Basic

Provisions. In this rule, FCIC will also

remove those provisions of subpart T

that have been moved to the Basic

Provisions.

EFFECTIVE DATE: This rule is effective

July 1, 1998. Written comments and

opinions on this rule will be accepted

until the close of business September

28, 1998, and will be considered when

the rule is to be made final.

ADDRESSES: Interested persons are

invited to submit written comments to

the Director, Product Development

Division, Federal Crop Insurance

Corporation, United States Department

of Agriculture, 9435 Holmes Road,

Kansas City, MO 64131. A copy of each

response will be available for public

inspection and copying from 7:00 a.m.

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

Friday, except holidays, at the above

address.

FOR FURTHER INFORMATION CONTACT:

Louise Narber, Insurance Management

Specialist, Research and Development,

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

economically significant for the

purposes of Executive Order 12866 and,

therefore, has been reviewed by the

Office of Management and Budget

(OMB).

This action amends FCIC’s regulations

in accordance with the 1998 Research

Act. This rule is being published on an

emergency basis so that affected

producers have the opportunity to make

timely decisions regarding their

insurance plans for the 1999 crop year

for crops with sales closing dates

subsequent to the enactment of the 1998

Research Act. The 1998 Research Act

was signed by the President on June 23,

1998. The first sales closing date

subsequent to the date of signing is July

31, 1998, for raisins in California. This

emergency situation makes timely

compliance with sections 6 (3)(B)(ii)

and (3)(C) of Executive Order 12866

impractical due to the short time to

make this rule effective prior to that

sales closing date. FCIC will complete

the required cost-benefit analysis within

90 days of the publication of this rule

in the Federal Register and will make

such analysis available to the public.

Small Business Regulatory Enforcement

Fairness Act of 1996 (Pub. L. 104–121,

5 U.S.C. Secs. 801–808)

This rule has been designated by the

Office of Information and Regulatory

Affairs, OMB, as a major rule under the

Small Business Regulatory Enforcement

Fairness Act of 1996 (Small Business

Act). However, section 808 of the Small

Business Act exempts a rule from the 60

day delay in effectiveness of a rule

where an agency for good cause finds

that notice and public procedure are

impracticable, unnecessary, or contrary

to the public interest. The Administrator

of the Risk Management Agency (RMA)

has determined that there is good cause

for making this rule effective less than

60 days after submission of the rule to

each House of Congress and to the

Comptroller General because a delay

would be contrary to the public interest.

There are producers affected by this

rule that must make critical risk

management decisions and the deadline

for the first 1999 crop year decisions is

less than 60 days from the July 1, 1998,

effective date of the 1998 Research Act.

A delay in the effective date of this rule

will create instability and inequity

within the program as producers

attempt to determine whether they are

affected and it will create separate

classes of producers who are subjected

to the increased administrative fees and

those who are not.

Further, RMA was required to revise

the Standard Reinsurance Agreement

before the July 1, 1998, start of the 1999

reinsurance year to implement the

provisions of the 1998 Research Act. If

this rule is delayed, it will create