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

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Rules and Regulations Federal Register

8703 

Vol. 74, No. 37 

Thursday, February 26, 2009 

DEPARTMENT OF AGRICULTURE 

Federal Crop Insurance Corporation 

7 CFR Part 400 

RIN 0563–AC18 

General Administrative Regulations; 

Appeal Procedure 

AGENCY: Federal Crop Insurance 

Corporation, USDA. 

ACTION: Final rule. 

SUMMARY: The Federal Crop Insurance 

Corporation (FCIC) is amending the 

General Administrative Regulation, 

Appeal Procedure. This final rule 

incorporates a requirement mandated by 

the Food, Conservation, and Energy Act 

of 2008 (2008 Farm Bill) that allows 

producers to use both mediation and the 

informal administrative appeal process 

in their appeals of decisions by FCIC 

and making minor non-substantive 

changes for clarity. 

DATES: Effective Date: This rule is 

effective February 26, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Cynthia Simpson, Director, Risk 

Management Agency Appeals, 

Litigation, and Legal Liaison Staff, 1400 

Independence Avenue, SW., Stop 0806, 

Washington, DC 20250, telephone (202) 

720–0642. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has determined that this rule is 

non-significant for the purpose of 

Executive Order 12866 and, therefore, it 

has not been reviewed by OMB. 

Paperwork Reduction Act of 1995 

This rule does not constitute a 

collection of information under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. chapter 35). 

E-Government Act Compliance 

FCIC is committed to complying with 

the E-Government Act of 2002, to 

promote the use of the Internet and 

other information technologies to 

provide increased opportunities for 

citizen access to Government 

information and services, and for other 

purposes. 

Unfunded Mandates Reform Act of 

1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA) establishes 

requirements for Federal agencies to 

assess the effects of their regulatory 

actions on State, local, and tribal 

governments and the private sector. 

This rule contains no Federal mandates 

(under the regulatory provisions of title 

II of the UMRA) for State, local, and 

tribal governments or the private sector. 

Therefore, this rule is not subject to the 

requirements of section 202 and 205 of 

the UMRA. 

Executive Order 13132 

It has been determined under section 

1(a) of Executive Order 13132, 

Federalism, that this rule does not have 

sufficient implications to warrant 

consultation with the States. The 

provisions contained in this rule will 

not have substantial direct effect on 

States, on the relationship between the 

national government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. 

Regulatory Flexibility Act 

FCIC certifies that this regulation will 

not have a significant economic impact 

on a substantial number of small 

entities. All producers will have access 

to the same appeals process regardless 

of the size of their farming operation. A 

Regulatory Flexibility Analysis has not 

been prepared since this regulation does 

not have a significant impact on a 

substantial number of small entities, 

and, therefore, this regulation is exempt 

from the provisions of the Regulatory 

Flexibility Act (5 U.S.C. 605). 

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 provision 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 to the extent 

such State and local laws are 

inconsistent herewith. With respect to 

any direct action taken by FCIC or to 

require the insurance provider to take 

specific action under the terms of the 

crop insurance policy, the 

administrative appeal provisions 

published at 7 CFR part 11 must be 

exhausted before any action against 

FCIC for judicial review 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 

Pursuant to 7 CFR part 400, subpart 

J, any producer (individual or entity) 

who has applied for, or whose rights to 

participate in or receive a payment or 

benefit under the Federal crop 

insurance program, may contest an 

adverse decision rendered by the Risk 

Management Agency on behalf of FCIC. 

Prior to the enactment of the 2008 Farm 

Bill, a producer who disagreed with an 

adverse decision by RMA had three 

avenues in which to contest RMA’s 

adverse decision—administrative 

review, mediation or appeal directly to 

the National Appeals Division (NAD). 

The participant could seek an 

administrative review or mediation, but 

not both. If the participant disagreed 

with an administrative review or 

mediation determination, the 

participant could appeal that 

determination to NAD. 

Section 12032 of the 2008 Farm Bill 

allows a participant to choose both 

administrative review and mediation. 

However, a participant is not required to 

use both administrative review and 

mediation. Section 12032 merely 

provides the participant with an 

8704 Federal Register / Vol. 74, No. 37 / Thursday, February 26, 2009 / Rules and Regulations 

additional opportunity at the 

administrative level to resolve adverse 

decisions. If the participant disagrees 

with an administrative review and/or 

mediation determination, the 

participant can appeal that 

determination to NAD. The provisions 

have been modified to allow these 

changes to the appeal procedure. 

The rule is also being revised to add 

the provisions regarding matters of 

general applicability and their 

appealability to NAD that were 

erroneously removed from this subpart 

when it was last revised. Congress, in 7 

U.S.C. 6992(d) expressly states that 

decisions must be adverse to the 

individual to be appealable to NAD and 

that matters of general applicability are 

not subject to appeal. 

Good cause is shown to make this rule 

effective upon publication at the Office 

of the Federal Register. Good cause 

exists when notice and comment and 30 

day delay in the effective date is 

impracticable, unnecessary, or contrary 

to the public interest. 

FCIC is merely making ministerial 

changes to the policy that are mandated 

by the 2008 Farm Bill. There is no 

discretion given to FCIC in the terms 

contained in this rule or their 

implementation. 

For the reasons stated above, good 

cause exists to make these policy 

changes effective upon publication at 

the Office of the Federal Register. 

List of Subject in 7 CFR Part 400 

General Administrative Regulations. 

Final Rule 

■ Accordingly, as set forth in the 

preamble, the Federal Crop Insurance 

Corporation amends 7 CFR part 400 

subpart J as follows: 

PART 400—GENERAL 

ADMINISTRATIVE REGULATIONS 

■ 1. The authority citation for 7 CFR 

part 400 is revised to read as follows: 

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

■ 2. Amend § 400.90 as follows: 

■ A. Amend the definition of ‘‘Agency’’ 

by removing ‘‘RSO’’ and adding in its 

place ‘‘RO’’ and by removing ‘‘FOSD’’ 

and adding in its place ‘‘FAOB’’; 

■ B. In the definition of ‘‘Appellant’’ 

revise the first sentence; 

■ C. Remove the definition of ‘‘FOSD’’; 

■ D. Add a definition of the term 

‘‘FAOB’’; 

■ E. Remove the definition of ‘‘RSO’’; 

and 

■ F. Add a definition of ‘‘RO’’. 

The additions and revisions read as 

follows: 

§ 400.90 Definitions. 

* * * * * 

Appellant. Any participant who 

requests an administrative review or 

mediation, or both, of an adverse 

decision of the Agency in accordance 

with this subpart. * * * 

* * * * * 

FAOB. Financial and Accounting 

Operations Branch. 

* * * * * 

RO. The Regional Office established 

by the agency for the purpose of 

providing program and underwriting 

services for private insurance 

companies reinsured by FCIC under the 

Act and for FCIC insurance contracts 

delivered through FSA offices. 

* * * * * 

■ 3. Amend § 400.91 as follows: 

■ A. Amend paragraph (c) introductory 

text by adding the phrase ‘‘or both,’’ 

after ‘‘mediation,’’; 

■ B. Amend paragraph (d) by removing 

the word ‘‘or’’ and adding in its place 

the word ‘‘and’’; and 

■ C. Add new paragraph (e) to read as 

follows: 

§ 400.91 Applicability. 

* * * * * 

(e) Notwithstanding any other 

provision, this subpart does not apply to 

any decision made by the Agency that 

is generally applicable to all similarly 

situated program participants. Such 

decisions are also not appealable to 

NAD. If the Agency determines that a 

decision is not appealable because it is 

a matter of general applicability, the 

participant must obtain a review by the 

Director of NAD in accordance with 7 

CFR 11.6(a) of the Agency’s 

determination that the decision is not 

appealable before the participant may 

file suit against the Agency. 

§ 400.93 [Amended] 

■ 4. Amend paragraph (a) in § 400.93 by 

removing the phrase ‘‘, but not both’’. 

§ 400.94 [Amended] 

■ 5. Amend paragraph (a) of § 400.94 by 

removing the phrase ‘‘instead of’’ and 

adding in its place the phrase ‘‘in 

addition to’’. 

Signed in Washington, DC on February 19, 

2009. 

William J. Murphy, 

Acting Manager, Federal Crop Insurance 

Corporation. 

[FR Doc. E9–4114 Filed 2–25–09; 8:45 am] 

BILLING CODE 3410–08–P 

DEPARTMENT OF AGRICULTURE 

Federal Crop Insurance Corporation 

7 CFR Part 400 

RIN 0563–AC20 

General Administrative Regulations; 

Submissions of Policies, Provisions of 

Policies, Rates of Premium and 

Premium Reduction Plans 

AGENCY: Federal Crop Insurance 

Corporation, USDA. 

ACTION: Final rule. 

SUMMARY: The Federal Crop Insurance 

Corporation (FCIC) amends General 

Administrative Regulations, Subpart 

V—Submission of Policies, Provisions 

of Policies, Rates of Premium and 

Premium Reduction Plans to remove 

provisions that allow approved 

insurance providers (AIP) to offer 

premium reduction plans. The authority 

for such premium reductions has been 

eliminated in the Food, Conservation, 

and Energy Act of 2008 (2008 Farm 

Bill). 

DATES: Effective Date: This rule is 

effective February 25, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Leiann Nelson, Economist, Product 

Management, Product Administration 

and Standards Division, Risk 

Management Agency, United States 

Department of Agriculture, Beacon 

Facility—Mail Stop 0812, P.O. Box 

419205, Kansas City, MO 64141–6205, 

telephone (816) 926–7730. 

SUPPLEMENTARY INFORMATION: 

Executive Order 12866 

This rule has been determined to be 

non-significant for the purposes of 

Executive Order 12866 and, therefore, it 

has not been reviewed by the Office of 

Management and Budget (OMB). 

Paperwork Reduction Act of 1995 

Pursuant to the provisions of the 

Paperwork Reduction Act of 1995 (44 

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

information in this rule have been 

approved by OMB under control 

number 0563–0064. 

E-Government Act Compliance 

FCIC is committed to complying with 

the E-Government Act of 2002, to 

promote the use of the Internet and 

other information technologies to 

provide increased opportunities for 

citizen access to Government 

information and services, and for other 

purposes.