[Federal Register Volume 74, Number 37 (Thursday, February 26, 2009)]
[Rules and Regulations]
[Pages 8704-8705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-4116]


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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.

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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.

[[Page 8705]]

Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) 
establishes requirements for Federal agencies to assess the effects of 
their regulatory actions on State, local, and tribal governments and 
the private sector. This rule contains no Federal mandates (under the 
regulatory provisions of title II of the UMRA) for State, local, and 
tribal governments or the private sector. Therefore, this rule is not 
subject to the requirements of sections 202 and 205 of 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 a substantial direct effect on States, or 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

    A Regulatory Flexibility Analysis has not been prepared since this 
regulation does not have an impact on 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 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. 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, or safety. Therefore, 
neither an Environmental Assessment nor an Environmental Impact 
Statement is needed.

Background

    On May 22, 2008, the 2008 Farm Bill was enacted. Section 12010 of 
the 2008 Farm Bill amended section 508(e) of the Federal Crop Insurance 
Act (Act) by removing paragraph (3), which has authorized AIPs to 
provide a premium discount to their insureds if they were able to 
deliver the crop insurance program for less money than they were paid 
in an administrative and operating expense reimbursement under section 
508(k) of the (Act) and the Standard Reinsurance Agreement. The 
provisions of the 2008 Farm Bill are very specific and do not allow 
FCIC any discretion regarding interpretation of the provisions or their 
implementation. Therefore, elimination of the provisions authorizing 
the payment of the premium discount necessitates the removal of the 
relevant provisions in 7 CFR part 400, subpart V related to the premium 
reduction plan.
    Good cause is shown to make this rule effective upon filing for 
public inspection at the Office of the Federal Register. Good cause 
exists when notice and comment and the 30-day delay in the effective 
date is impracticable, unnecessary, or contrary to the public interest. 
FCIC is merely making ministerial changes to the regulation 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. Therefore, 
good cause exists to make this change effective upon filing for public 
inspection at the Office of the Federal Register.

List of Subjects in 7 CFR Part 400

    Administrative practice and procedure, Crop insurance.

Final Rule

0
Accordingly, as set forth in the preamble, the Federal Crop Insurance 
Corporation amends 7 CFR Part 400 as follows:

PART 400--GENERAL ADMINISTRATIVE REGULATIONS

0
1. The authority citation for 7 CFR part 400 continues to read as 
follows:

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

Subpart V--Submission of Policies, Provisions of Policies and Rates 
of Premium

0
2. Revise the heading for subpart V to read as set forth above.

0
3. Revise section Sec.  400.700 to read as follows:


Sec.  400.700  Basis, purpose, and applicability.

    This subpart establishes guidelines for the submission of policies, 
plans of insurance, and rates of premium to the Board as authorized 
under section 508(h) of the Act and for nonreinsured supplemental 
policies in accordance with the SRA, and the roles and responsibilities 
of FCIC and the applicant. It also specifies the procedures for 
requesting reimbursement for research and development costs, and 
maintenance costs for products and the approval process.


Sec.  400.701  [Amended]

0
4. Revise section Sec.  400.701 by removing the definitions for 
``Administrative and operating (A&O) costs,'' ``Agent,'' ``Approved 
procedures,'' ``Compensation,'' ``Efficiency,'' ``Eligible crop 
insurance contract,'' ``Eligible producer,'' ``Managing General Agent 
(MGA),'' ``Plan of Operations,'' ``Premium discount,'' ``Profit sharing 
arrangement,'' ``Reduction in service,'' ``Standard Reinsurance 
Agreement (SRA),'' ``Third Party Administrator (TPA),'' ``Underwriting 
gain,'' and ``Unfair discrimination''.


Sec. Sec.  400.714-400.722  [Removed]

0
5. Remove sections Sec. Sec.  400.714 through 400.722.

    Signed in Washington, DC, on February 19, 2009.
William J. Murphy,
Acting Manager, Federal Crop Insurance Corporation.
[FR Doc. E9-4116 Filed 2-25-09; 8:45 am]
BILLING CODE 3410-08-P