23200 Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Proposed Rules

Background

On February 9, 2001, Ayres

Corporation applied for a type

certificate for their new Model LM 200

‘‘Loadmaster.’’ The Model LM 200

operates with a multiengine/single

propeller propulsion system and fixed

landing gear. The system consists of two

turbine engines driving a single

propeller through a combining gearbox.

The aircraft is conventional, semimonocoque, aluminum construction

with a high cantilever wing, fixed gear,

mechanical and electro-mechanical

controls, and it will be unpressurized.

Certification will include single pilot

and IFR operations.

It is not possible for this airplane to

have literal compliance with some

commuter category flight test

regulations. The Model LM 200 must

comply with all commuter category

multiengine requirements; however,

since this propulsion system will result

in centerline thrust, this airplane will

not have a VMC or VMCG. The propeller

is independent of both or either engine

such that, with the failure of an engine,

the propeller will continue to operate

normally but with less torque input. The

propeller control system does have

failure modes independent of both

engines that need to be considered

when determining airplane

performance. 14 CFR part 23 does not

contain adequate or appropriate

requirements to address a multiengine/

single propeller design that results in

centerline thrust.

Type Certification Basis

Under the provisions of 14 CFR 21.17,

Ayres Corporation must show that the

Model LM 200 ‘‘Loadmaster’’ meets the

applicable provisions of part 23, as

amended by Amendments 23–1 through

23–53, thereto.

If the Administrator finds that the

applicable airworthiness regulations

(i.e., part 23) do not contain adequate or

appropriate safety standards for the

Ayres Corporation Model LM 200

‘‘Loadmaster’’ because of a novel or

unusual design feature, special

conditions are prescribed under the

provisions of § 21.16.

In addition to the applicable

airworthiness regulations and special

conditions, the Model LM 200 must

comply with the part 23 fuel vent and

exhaust emission requirements of 14

CFR part 34 and the part 23 noise

certification requirements of 14 CFR

part 36, and the FAA must issue a

finding of regulatory adequacy pursuant

to § 611 of Public Law 92–574, the

‘‘Noise Control Act of 1972.’’

Special conditions, as appropriate, are

issued in accordance with § 11.49 after

public notice, as required by §§ 11.28

and 11.29(b), and become part of the

type certification basis in accordance

with § 21.17(a)(2).

Special conditions are initially

applicable to the model for which they

are issued. Should the type certificate

for that model be amended later to

include any other model that

incorporates the same novel or unusual

design feature, the special conditions

would also apply to the other model

under the provisions of § 21.101(a)(1).

Novel or Unusual Design Features

The Model LM 200 will incorporate

the following novel or unusual design

features: The Model LM 200 will

operate with a multiengine/single

propeller propulsion system.

Applicability

As discussed above, these special

conditions are applicable to the Model

LM 200. Should Ayres Corporation

apply at a later date for a change to the

type certificate to include another

model incorporating the same novel or

unusual design feature, the special

conditions would apply to that model as

well under the provisions of

§ 21.101(a)(1).

Conclusion

This action affects only certain novel

or unusual design features on one model

of airplane. It is not a rule of general

applicability, and it affects only the

applicant who applied to the FAA for

approval of these features on the

airplane.

List of Subjects in 14 CFR Part 23

Aircraft, Aviation safety.

The authority citation for these

special conditions is as follows: 49

U.S.C. 106(g); 40113, 44701, 44702, and

44704; 14 CFR 21.16 and 21.17; and 14

CFR 11.28 and 11.29(b).

The Proposed Special Conditions

Accordingly, the Federal Aviation

Administration (FAA) proposes the

following special conditions as part of

the type certification basis for Ayres

Corporation Model LM 200 airplanes.

Flight Test Special Conditions

1. In addition to the requirements in

§ 23.51(c)(1)(i), VEF is also a propeller

control system failure speed where the

propeller primary control system fails to

the configuration most critical to

producing thrust, considering all single

point failures. The applicant must

establish VEF to be related to the stall

speed, and it must not be less than 1.05

VS1 or greater than 1.2 VS1.

2. In addition to the requirements in

§ 23.51(c)(3), to determine a single value

for VR, the applicant must determine

and use the most critical of either the

one engine inoperative (OEI)

configuration or the most critical failed

propeller primary control system

configuration, whichever is worse. The

failed propeller control system

configuration must consider all single

point failures with both engines

operating normally.

3. In addition to the requirement in

§ 23.51(c)(5), the applicant must

determine and use the most critical of

either the OEI configuration or the most

critical failed propeller primary control

system configuration, whichever is

worse. The failed propeller control

system must consider all single point

failures, with both engines operating

normally.

4. In § 23.63, where the OEI

configuration is required, the applicant

must also assume the condition where

both engines are operating normally and

the propeller primary control system

has failed. In the failed propeller

primary control system configuration,

the applicant must consider all single

point failures that result in a propeller

configuration most critical to producing

thrust.

5. In addition to the requirements in

§ 23.75(g), the applicant must also

determine the increase in landing

distance due to failure of the propeller

primary control system. This

configuration includes both engines

operating normally and the propeller

primary control system failed to the

most critical thrust producing condition

considering all single point failures.

Issued in Kansas City, Missouri, on April

25, 2001.

Michael K. Dahl,

Acting Manager, Small Airplane Directorate,

Aircraft Certification Service.

[FR Doc. 01–11470 Filed 5–7–01; 8:45 am]

BILLING CODE 4910–13–P

FEDERAL EMERGENCY

MANAGEMENT AGENCY

44 CFR Part 62

RIN 3067–AD17

National Flood Insurance Program

(NFIP); Pilot Project—Public Entity

Insurers

AGENCY: Federal Emergency

Management Agency (FEMA).

ACTION: Proposed rule.

SUMMARY: We (the Federal Insurance

Administration of FEMA) are proposing

to launch a three-year pilot project that

would permit intergovernmental riskVerDate 11<MAY>2000 16:15 May 07, 2001 Jkt 194001 PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 E:\FR\FM\08MYP1.SGM pfrm04 PsN: 08MYP1
Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Proposed Rules 23201

sharing pools sponsored by State

municipal leagues to sell flood

insurance to public entities under the

National Flood Insurance Program’s

Write Your Own (WYO) effort. We

would limit the participants in this pilot

effort to three such insurers that would

be able to provide flood insurance only

to public entities for their public

buildings. The participants in this pilot

effort would also have to comply with

comparable eligibility criteria and

performance standards for operations,

reporting, and customer service that we

require of private insurance companies

that participate under the WYO

program. This proposal includes the

eligibility criteria for participation in

the proposed pilot and an addendum to

the WYO Arrangement that would

construe the term ‘‘the company’’ used

in the Arrangement to mean not only

WYO companies but also the insurers

selected for this proposed pilot.

DATES: Please submit any comments on

this proposed rule by July 9, 2001.

FOR FURTHER INFORMATION CONTACT:

Edward T. Pasterick, Federal Emergency

Management Agency, Federal Insurance

Administration, 500 C Street SW.,

Washington, DC 20472, 202–646–3443,

(facsimile) 202–646–4335, or (email)

Edward.Pasterick@fema.gov.

SUPPLEMENTARY INFORMATION:

The NFIP’s Write Your Own Program:

Successes

Since 1983, when we (FIA)

established the WYO program, we have

worked in close partnership with

private insurance companies to serve a

national goal: to protect more of the

Nation’s property owners against flood

loss through insurance. The expertise of

our private insurance industry partners,

especially in marketing, underwriting,

and claims adjustment, has been

invaluable in helping us not only

provide a high level of customer service

to policyholders under the National

Flood Insurance Program (NFIP) but

also increase the number of property

owners covered by flood insurance—a

national objective. In fact, as the WYO

program has grown so has the number

of policyholders nationwide covered by

flood insurance. Our flood insurance

policy base has more than doubled since

the WYO program’s inception on

October 1, 1983, with policies

increasing from 1.9 million to more than

4.3 million policies in force today.

One of the inherent strengths of the

WYO program, and one of the reasons

for its success, is that private insurance

companies, writing property insurance

for other perils such as wind and fire,

provide convenient access to flood

insurance coverage for their customers

in need of flood insurance protection.

This model may also apply to the

unique relationship that public entity

insurers, especially State municipal

league-sponsored or other

intergovernmental risk-sharing pools,

such as those sponsored by school

districts and transit districts, enjoy with

local governments. Such public entity

insurers that already provide property

insurance coverage to public entities for

their public buildings may be in an

ideal position to provide the same high

level of customer service and easy

access to local governments in need of

flood insurance protection for their

public buildings. This is an avenue that

we would like to explore for the benefit

of public entities in need of flood

insurance protection.

Possible Expansion of the WYO

Program

We believe that there may be

considerable merit in expanding the

framework of the WYO program to

include not only our current

participants—the property insurance

companies that meet financial and

operating standards—but also other

insurers of public buildings, such as

State municipal league-sponsored and

other risk pools meeting comparable

standards that can serve the specialized

insurance market of public entities. By

permitting State municipal leaguesponsored and other intergovernmental

risk-sharing pools to sell flood

insurance, we would be providing

public entities with the same kind of

insurance channel that many use for

their other property insurance needs.

This proposal then would add, on a

pilot project basis, a new class of insurer

to the WYO program. Specifically, we

would add to § 62.23 and § 62.24

language that would authorize us to

launch the pilot project and enter into

an arrangement under the WYO

program with up to three State

municipal league-sponsored

intergovernmental risk-sharing pools to

sell flood insurance directly to

municipalities provided these

intergovernmental risk-sharing pools

meet comparable eligibility,

performance, and customer service

standards as we have established for the

private insurance companies. Our

proposed revision to § 62.24 includes

the criteria that the participants in the

pilot project would have to meet as a

condition for participation.

We would limit the three-year

proposed pilot to no more than three

State municipal league-sponsored

intergovernmental risk-sharing pools

that meet the eligibility criteria that we

include in the proposal. Should the

pilot succeed in increasing the number

of public buildings covered by flood

insurance while maintaining the

program’s standards for customer

service, we would be willing to broaden

the effort permanently to include other

intergovernmental risk-sharing pools,

such as those sponsored by school

districts and transit districts, that

provide property insurance to public

entities and that meet our eligibility

criteria. Such a pilot would also furnish

us with data and experience that would

help us improve operations should State

municipal league-sponsored and other

intergovernmental risk-sharing pools

become permanent adjuncts to the WYO

program.

It is our hope that the proposed pilot

project would provide local

governments with an accessible and

familiar channel to meet their flood

insurance needs through State

municipal league sponsored

intergovernmental risk-sharing pools

since these organizations meet and deal

with local governments daily. Such

intergovernmental risk-sharing pools

already provide expertise in a number of

areas such as risk management, and

these entities would be in a position to

better serve the needs of the localities by

providing and servicing flood coverage

to the locality for their public buildings.

Such organizations bring with them risk

management expertise and a unique

insight into the needs of their

customers—local public entities.

Scope of the Pilot Project

We propose, therefore, to launch a

pilot project beginning with the 2001–

2 Arrangement Year for the WYO

program that begins October 1, 2001.

The pilot project would enable up to

three State municipal league-sponsored

intergovernmental risk-sharing pools—

to be nominated by the National League

of Cities—to provide flood insurance to

communities to cover their public

buildings. Under the pilot project, the

participating State municipal leaguesponsored intergovernmental risksharing pools would provide flood

insurance only to the buildings of

public entities. Private buildings and

private personal property would remain

the exclusive marketing domain of the

private insurance companies

participating in the WYO program.

The proposed pilot project would be

for a period of three years, but we would

begin our analysis at the end of the

second year to determine whether the

pilot project is meeting our goals.

Specifically, we would determine

whether the participating State

municipal league-sponsored

23202 Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Proposed Rules

intergovernmental risk-sharing pools

had positioned themselves to write

flood insurance on a large number of

public buildings and whether they had

maintained the same level of customer

service and the same level of

performance that we require of

participating companies under the WYO

program. The analysis at the end of the

proposed pilot project would help us

determine whether the pilot project

should continue, and if so, whether we

should expand the program beyond the

limited participants of the pilot effort,

and whether we need to modify or

adjust the program based on project

experience.

National Environmental Policy Act

(NEPA)

NEPA imposes requirements for

considering the environmental impacts

of agency decisions. It requires that an

agency prepare an Environmental

Impact Statement (EIS) for ‘‘major

federal actions significantly affecting the

quality of the human environment.’’ If

an action may or may not have a

significant impact, the agency must

prepare an environmental assessment

(EA). If, as a result of this study, the

agency makes a Finding of No

Significant Impact (FONSI), no further

action is necessary. If it will have a

significant effect, then the agency uses

the EA to develop an EIS.

Categorical Exclusions. Agencies can

categorically identify actions (for

example, repair of a building damaged

by a disaster) that do not normally have

a significant impact on the environment.

The purpose of this proposed rule is to

launch a three-year pilot project that

would permit intergovernmental risksharing pools sponsored by State

municipal leagues to sell flood

insurance to public entities under the

National Flood Insurance Program’s

WYO effort.

Accordingly, we have determined that

this rule is excluded from the

preparation of an environmental

assessment or environmental impact

statement under 44 CFR 10.8(d)(2)(ii),

where the rule is related to actions that

qualify for categorical exclusion under

44 CFR 10.8(d)(2)(i), which addresses

the preparation, revision, and adoption

of regulations, directives, and other

guidance documents related to actions

that qualify for categorical exclusions.

We have not prepared an environmental

assessment or environmental impact

statement as defined by NEPA.

Executive Order 12866, Regulatory

Planning and Review

We have prepared and reviewed this

proposed rule under the provisions of

E.O. 12866, Regulatory Planning and

Review. Under Executive Order 12866,

58 FR 51735, October 4, 1993, a

significant regulatory action is subject to

OMB review and the requirements of

the Executive Order. The Executive

Order defines ‘‘significant regulatory

action’’ as one that is likely to result in

a rule that may:

(1) Have an annual effect on the

economy of $100 million or more or

adversely affect in a material way the

economy, a sector of the economy,

productivity, competition, jobs, the

environment, public health or safety, or

State, local, or tribal governments or

communities;

(2) Create a serious inconsistency or

otherwise interfere with an action taken

or planned by another agency;

(3) Materially alter the budgetary

impact of entitlements, grants, user fees,

or loan programs or the rights and

obligations of recipients thereof; or

(4) Raise novel legal or policy issues

arising out of legal mandates, the

President’s priorities, or the principles

set forth in the Executive Order.

For the reasons that follow we have

concluded that the proposed rule is

neither an economically significant nor

a significant regulatory action under the

Executive Order.

The proposed rule would accomplish

one primary purpose: to determine the

merit of permanently expanding the

WYO program to permit State municipal

league-sponsored intergovernmental

risk-sharing pools to sell flood

insurance to public entities to cover

their buildings against flood loss. The

proposed rule would permit us to

analyze the three-year pilot project to

determine the merit of permitting such

insurers to be eligible to sell flood

insurance permanently under the WYO

program. There are no major economic

impacts resulting from implementation

of this proposal. Rather, the proposed

rule would add a new marketing avenue

for writing flood insurance for public

buildings.

The Office of Management and Budget

has not reviewed this proposed rule

under the principles of Executive Order

12866.

Paperwork Reduction Act

In accordance with the provisions of

the Paperwork Reduction Act of 1995,

44 U.S.C. 3501 et seq., the Office of

Management and Budget (OMB)

approved the following collections of

information applicable to this proposed

rule:

1. Title: Write Your Own (WYO)

Program.

OMB Number: 3067–0169 (expires

March 31, 2002).

Affected Public: Business or Other For

Profit and State, Local or Tribal

Government.

Number of Respondents: 120. The

pilot limits the number of additional

participants to 3. Therefore, we do not

anticipate that there will be an overall

increase in the annual number of

respondents for this collection.

Estimated Hour Burden: 33 minutes

per respondent.

Estimated Total Annual Burden: 792

hours. We do not anticipate that there

will be an overall increase in the annual

burden hours for this collection.

Frequency of Response: Respondents

are required to submit the information

on a monthly basis.

2. Title: Write Your Own (WYO)

Company Participation Criteria; New

Applicants.

OMB Number: 3067–0259 (expires

April 30, 2002).

Affected Public: Business or Other For

Profit and State, Local or Tribal

Government.

Number of Respondents: 5. The pilot

limits the number of additional

participants to 3. Therefore, we do not

anticipate that there will be an overall

increase in the annual number of

respondents for this collection.

Estimated Hour Burden: 7 hours per

respondent.

Estimated Total Annual Burden: 35

hours. We do not anticipate that there

will be an overall increase in the annual

burden hours for this collection.

Frequency of Response: Respondents

are required to submit the information

one-time only.

The proposed rule will launch a 3-

year pilot project that would add

intergovernmental risk-sharing pools

sponsored by State municipal leagues as

a new category of insurer under the

Write Your Own (WYO) program. For

this pilot, the number of participants is

limited to three such insurers that

would be able to provide flood

insurance only to public entities for

their public buildings. The participants

must also comply with comparable

eligibility criteria and performance

standards for operations, reporting, and

customer service that we require of

private insurance companies that

participate in the WYO program. The

OMB approval for these collections

include the collections of information

referenced in § 62.23(a), titled

‘‘Financial Assistance/Subsidy

Arrangement,’’ appendix A, and

contained in § 62.24 of the proposed

rule.

The requirements under the Financial

Assistance/Subsidy Arrangement

(appendix A to part 62) include

standards for insurers participating in

Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Proposed Rules 23203

the Write Your Own program to

complete transactions, claims,

underwriting, customer service,

reporting, marketing, and handling

litigation to ensure adequate customer

service and to safeguard the use of

Federal funds drawn from the National

Flood Insurance Fund. The

requirements for financial control for

insurers participating in the Write Your

Own program (set forth in the Financial

Control Plan, appendix B to part 62)

include standards for: independent

auditing, auditing of flood insurance

financial statements, and monthly

reporting, as well as requirements by

FEMA’s Office of Financial Management

on Letter of Credit use.

Comments: We ask for your comments

on our need for this information, the

accuracy of our burden estimates, and

any methods you can suggest for

minimizing the burden on respondents,

including automated collection

techniques. Please send comments on

the collections of information described

above to the Office of Management and

Budget, Office of Information and

Regulatory Affairs; Attention: Desk

Officer for FEMA, 725 17th Street, NW.,

Washington, DC 20503. Written

comments should include the OMB

number (3067–0259) and may be

submitted up to July 9, 2001, but

comments will be most useful if

received by OMB within 30 days of the

Federal Register publication date. We

will also accept comments up to July 9,

2001. Written comments to us should be

addressed to the Chief, Records

Management Branch, Program Services

Division, Operations Support

Directorate, FEMA, 500 C Street, SW.,

Washington, DC 20472. We will respond

to any OMB or public comments on the

collections of information contained in

the proposed rule. For Additional Information Contact:

You may obtain a copy of the approved

OMB clearance packages for the

collections of information by mail at

FEMA, 500 C Street, SW., room 316,

Washington, DC 20472, by e-mail at

muriel.anderson@fema.gov, or by

calling (202) 646–2625.

Regulatory Flexibility Act

Under the Regulatory Flexibility Act

agencies must consider the impact of

their rulemakings on ‘‘small entities’’

(small businesses, small organizations

and local governments). When 5 U.S.C.

553 requires an agency to publish a

notice of proposed rulemaking, the Act

requires a regulatory flexibility analysis

for both the proposed rule and the final

rule if the rulemaking could ‘‘have a

significant economic impact on a

substantial number of small entities.’’

The Act also provides that if a

regulatory flexibility analysis is not

required, the agency must certify in the

rulemaking document that the

rulemaking will not ‘‘have a significant

economic impact on a substantial

number of small entities.’’ For the reasons that follow I certify

that a regulatory flexibility analysis is

not required for this rule because it

would not have a significant economic

impact on a substantial number of small

entities. This proposed rule revises the

National NFIP regulations to launch a

three-year pilot project that would

permit intergovernmental risk sharing

pools sponsored by State municipal

leagues to sell insurance to public

entities under the NFIP’s WYO Program.

We would limit the participants to three

such insurers that would be able to

provide flood insurance only to public

entities for public buildings.

Participation in the pilot program is

voluntary.

Executive Order 13132, Federalism

Executive Order 13132, Federalism,

dated August 4, 1999, sets forth

principles and criteria that agencies

must adhere to in formulating and

implementing policies that have

federalism implications, that is,

regulations that have substantial direct

effects on the States, or on the

distribution of power and

responsibilities among the various

levels of government. Federal agencies

must closely examine the statutory

authority supporting any action that

would limit the policymaking discretion

of the States, and to the extent

practicable, must consult with State and

local officials before implementing any

such action.

We have reviewed this proposed rule

under E.O. 13132 and have concluded

that the rule does not have federalism

implications as defined by the Executive

Order. The rule is a proposal to add a

new category of insurer under the WYO

program—an insurer that would provide

another marketing avenue to protect

public buildings from flood loss.

Inasmuch as the insurance benefits and

requirements derive from a Federal

statute and program exclusively

administered by the Federal

Government for the benefit of State,

local and tribal governments,

individuals, and not-for-profit

organizations, the rule neither limits nor

preempts any policymaking discretion

of the State that the State might

otherwise have. We have, nevertheless,

consulted with local officials, with the

National League of Cities, and with

several State municipal leagues. The Office of Management and Budget

has reviewed this rule under the

provisions of Executive Order 13132.

List of Subjects in 44 CFR Part 62

Flood insurance.

Accordingly, amend 44 CFR part 62 as

follows:

PART 62—SALE OF INSURANCE AND

ADJUSTMENT OF CLAIMS

1. The authority citation for Part 62

continues to read as follows:

Authority: 42 U.S.C. 4001 et seq.;

Reorganization Plan No. 3 of 1978, 43 FR

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

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

1979 Comp., p. 376.

2. Revise paragraphs (a) and (b) of

§ 62.23 to read as follows:

§ 62.23 WYO Companies Authorized

(a) Pursuant to section 1345 of the

Act, the Administrator may enter into

arrangements with individual private

sector property insurance companies or

other insurers whereby such companies

may offer flood insurance coverage

under the program to eligible applicants

for such insurance including

policyholders insured by them under

their own property business lines of

insurance pursuant to their customary

business practices including their usual

arrangements with agents and

producers, in any State in which such

WYO companies are authorized to

engage in the business of property

insurance. Arrangements entered into

by WYO Companies under this subpart

must be in the form and substance of the

standard arrangement, titled ‘‘Financial

Assistance/Subsidy Arrangement,’’ a

copy of which is included in appendix

A of this part and made a part of these

regulations.

(b) Any duly authorized insurer so

engaged in the Program shall be a WYO

Company. (The term ‘‘WYO Company’’

shall include the following kinds of

insurers: an association of local

governments, a State municipal leaguesponsored and other intergovernmental

risk-sharing pool for covering public

entity structures.)

* * * * *

3. Revise § 62.24 to read as follows:

§ 62.24 WYO Participation Criteria

New companies or organizations

eligible for the pilot project we describe

in paragraph (b) of this section that seek

to participate in the WYO program, as

well as former WYO companies seeking

to return to the WYO program, must

meet standards for financial capability

and stability for statistical and financial

reporting and for commitment to

program objectives.

23204 Federal Register / Vol. 66, No. 89 / Tuesday, May 8, 2001 / Proposed Rules

(a) To demonstrate the ability to meet

the financial requirements, a private

insurance company wishing to enter or

reenter the WYO program must:

(1) Be a licensed property insurance

company;

(2) Have a five (5) year history of

writing property insurance;

(3) Disclose any legal proceedings,

suspensions, judgments, settlements, or

agreements reached with any State

insurance department, State attorney

general, State corporation commission,

or the Federal Government during the

immediately prior five (5) years

regarding the company’s business

practices;

(4) Submit its most recent National

Association of Insurance Commissioners

(NAIC) annual statement;

(5) Submit, as data become available,

information to indicate that the

company meets or exceeds NAIC

standards for risk-based capital and

surplus; and

(6) Submit its last State or regional

audit, which should contain no material

negative findings.

(b) To demonstrate the ability to meet

the financial requirements, an

association of local governments, or a

State municipal league-sponsored

intergovernmental risk-sharing pool for

covering public entity structures,

wishing to enter the WYO pilot program

commencing on October 1, 2001, must:

(1) Have authority by a State to

provide property coverage to its

members;

(2) Have a five (5) year history of

writing property coverage;

(3) Disclose any legal proceedings,

suspensions, judgments, settlements, or

agreements reached with any State

insurance department, State attorney

general, State corporation commission,

or the Federal Government during the

immediate prior five (5) years regarding

the company’s business practices; and

(4) Submit its most recent two annual

audits from an independent accounting

firm performed in compliance with

generally accepted accounting

principles that show no material

negative findings; and submit, as data

become available, information to

indicate that the association or the pool

meets or exceeds standards comparable

to those of the NAIC for risk-based

capital and surplus.

(c) An applicant for entry or reentry

in the WYO program must also pass a

test to determine the applicant’s ability

to process flood insurance and meet the

Transaction Record Reporting and

Processing (TRRP) Plan requirements of

the WYO Financial Control Plan. Unless

the test requirement is waived, e.g.,

where the applicant’s reporting

requirements will be fulfilled by an

already qualified performer, the

applicant must prepare and submit test

output monthly tape(s) and monthly

financial statements and reconciliations

for processing by the NFIP Bureau and

Statistical Agent contractor. For test

purposes, no error tolerance will be

allowed. If the applicant fails the initial

test, a second test will be run, which the

applicant must pass to participate in the

Program.

(d) To satisfy the requirement for

commitment to Program goals,

including marketing of flood insurance

policies, the applicant shall submit

information concerning the company’s

plans for the WYO Program including

plans for the training and support of

producers and staff, marketing plans

and sales targets, and claims handling

and disaster response plans. Applicants

must also identify those aspects of their

planned flood insurance operations to

be performed by another organization,

managing agent, another WYO

Company, a WYO vendor, a service

bureau or related organization.

Applicants shall also name, in addition

to a Principal Coordinator, a corporate

officer point of contact—an individual,

e.g., at the level of Senior Executive

Vice President, who reports directly to

the Chief Executive Officer or the Chief

Operating Officer. Each applicant shall

furnish the latest available information

regarding the number of its fire, allied

lines, farmowners multiple peril,

homeowners multiple peril, and

commercial multiple peril policies in

force, by line. A private insurance

company applying for participation in

the WYO program shall also furnish its

Best’s Financial Size Category for the

purpose of setting marketing goals.

Appendix A to Part 62 [Amended]

3. Add the following ADDENDUM at

the end of Appendix A to Part 62:

* * * * *

Addendum to Appendix A to Part 62—

Federal Emergency Management

Agency, Federal Insurance

Administration, Financial Assistance/

Subsidy Arrangement

Note: This Addendum to Appendix A to

Part 62 applies only to public entity insurers

participating in the pilot project established

in § 62.24(b) that permits State municipal

league-sponsored intergovernmental risksharing pools to provide flood insurance to

public entities to cover public buildings.

‘‘Company’’ in the preceding Arrangement

includes ‘‘public entity insurer.’’

The references to ‘‘marketing guidelines’’

in Article II—Undertaking of the Company

and to ‘‘marketing goals’’ in Article III—Loss

Costs, Expenses, Expense Reimbursement,

and Premium Refunds shall apply only to the

private insurance companies participating in

the WYO program.

(Catalog of Federal Domestic Assistance No.

83.100, ‘‘Flood Insurance’’)

Dated: May 1, 2001.

Howard Leikin,

Acting Administrator, Federal Insurance

Administration.

[FR Doc. 01–11364 Filed 5–7–01; 8:45 am]

BILLING CODE 6718–03–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 54

[CC Docket No. 96–45, FCC 01–143]

Federal-State Joint Board on Universal

Service

AGENCY: Federal Communications

Commission.

ACTION: Notice of proposed rule.

SUMMARY: In this document, the

Commission proposes a revised method

for allocating discounts to schools and

libraries under the federal universal

service mechanism when there is

insufficient funding to support all

requests for internal connections. The

Commission also seeks comment on

proposed administrative modifications

to our rules to provide additional time

for recipients under the schools and

libraries universal service support

mechanism to implement contracts or

agreements with service providers for

non-recurring services.

DATES: Comments are due on or before

May 23, 2001. Reply comments are due

on or before May 30, 2001.

ADDRESSES: All filings must be sent to

the Commission’s Secretary, Magalie

Roman Salas, Office of the Secretary,

Federal Communications Commission,

445 12th Street, S.W., Washington, D.C.

20554. Parties should also send three

paper copies of their filings to Sheryl

Todd, Accounting Policy Division,

Common Carrier Bureau, Federal

Communications Commission, 445

Twelfth Street, S.W., Room 5–B540,

Washington, D.C. 20554. Parties who

choose to file by paper should also

submit their comments on diskette.

These diskettes should be submitted to

Sheryl Todd, Accounting Policy

Division, Common Carrier Bureau,

Federal Communications Commission,

445 Twelfth Street, S.W., Room 5–B540,

Washington, D.C. 20554. The diskette

should be clearly labeled with the

commenter’s name, proceeding,

including the lead docket number in the

proceeding (CC Docket No. 96–45), type