[Federal Register Volume 59, Number 200 (Tuesday, October 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-25713]
[[Page Unknown]]
[Federal Register: October 18, 1994]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 400
General Administrative Regulations; Collection and Storage of
Social Security Account Numbers and Employer Identification Numbers
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Direct final rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) hereby amends
the substantial beneficial interest requirements set for any individual
who has an interest in the policyholder. Current provisions require an
individual who has a five percent or more interest in the policyholder
to submit a social security or employer identification number. FCIC
amends this provision by redefining and liberalizing substantial
beneficial interest as ten percent or more interest in the
policyholder. In addition, FCIC reduces, from five years to three
years, the record retention requirements imposed by this regulation.
DATES: This rule will be effective on November 17, 1994 unless FCIC
receives written adverse comments or written notice of intent to submit
adverse comments on or before November 7, 1994. If FCIC receives
written adverse comments or written notice of intent to submit adverse
comments, FCIC will publish a notice in the Federal Register
withdrawing this rule before the effective date.
ADDRESSES: Please send any adverse comments or notice of intent to
submit adverse comments to Mari L. Dunleavy, Regulatory and Procedural
Development Staff, Federal Crop Insurance Corporation, USDA,
Washington, DC 20250. Hand or messenger delivery may be made to Suite
500, 2101 L St. NW, Washington, DC 20037.
FOR FURTHER INFORMATION CONTACT:
Mari L. Dunleavy, Regulatory and Procedural Development Staff, Federal
Crop Insurance Corporation, USDA, Washington, DC 20250. Telephone (202)
254-8314.
SUPPLEMENTARY INFORMATION:
Effective Date
FCIC is publishing this rule without a prior proposal because FCIC
views this action as noncontroversial and anticipates no adverse public
comment. This rule will be effective, as published in this document, 30
days after the date of publication in the Federal Register unless FCIC
receives written adverse comments or written notice of intent to submit
adverse comments within 20 days of the date of publication of this rule
in the Federal Register.
Adverse comments are comments that suggest the rule should not be
adopted or that suggest the rule should be changed.
If FCIC receives written adverse comments or written notice of
intent to submit adverse comments, FCIC will publish a notice in the
Federal Register withdrawing this rule before the effective date. FCIC
will then publish a proposed rule for public comment. Following the
close of that comment period, the comments will be considered, and a
final rule addressing the comments will be published.
As discussed above, if FCIC receives no written adverse comments
nor written notice of intent to submit adverse comments within 20 days
of publication of this direct final rule, this direct final rule will
become effective 30 days following its publication. FCIC will publish a
notice to this effect in the Federal Register, before the effective
date of this direct final rule, confirming that it is effective on the
date indicated in this document.
Executive Orders, Regulatory Flexibility Act, and Paperwork Reduction
Act
This action has been reviewed under USDA procedures established by
Executive Order 12866 and Departmental Regulation 1512-1. This action
constitutes a review as to the need, currency, clarity, and
effectiveness of these regulations under those procedures. The sunset
review date established for these regulations is March 1, 1999.
This rule has been determined to be not significant for purposes of
Executive Order 12866 and therefore, has not been reviewed by the
Office of Management and Budget (OMB).
In accordance with the Paperwork Reduction Act of 1980 (44 U.S.C.
3501 et seq.), the information collection or recordkeeping requirements
included in this proposed rule can be found in 7 CFR 400 subpart H.
It has been determined under section 6(a) of Executive Order 12612,
Federalism, that this proposal does not have sufficient federalism
implications to warrant the preparation of a Federalism assessment. The
provisions contained in this rule will not have substantial direct
effects on states or their political subdivisions, or on the
distribution of power and responsibilities among the various levels of
government.
This rule has been reviewed in accordance with Executive Order
12778. The provisions of this proposed rule will preempt state and
local laws to the extent such state and local laws are inconsistent
herewith. The administrative appeal provisions located at 7 CFR part
400, subpart J must be exhausted before judicial action may be brought.
This action would not have a significant economic impact on a
substantial number of small businesses. This amendment liberalizes
paperwork requirements for the insureds and the companies delivering
Federal crop insurance. The current FCIC approved Privacy Act statement
on Company forms that includes reference to Substantial Beneficial
interest of five percent or more will not need to be revised by
companies as a result of this rule until such time as current stocks
are depleted and forms are reprinted. Therefore, this action is
determined to be exempt from the provisions of the Regulatory
Flexibility Act and no Regulatory Flexibility Analysis was prepared.
This program is listed in the Catalog of Federal Domestic
Assistance under No. 10.450.
This program is not subject to the provisions of Executive Order
12372 which requires 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.
The Office of General Counsel has determined that these regulations
meet the applicable standards provided in subsections 2(a) and 2(b)(2)
of Executive Order 12778. 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 located at
7 CFR part 400, subpart J must be exhausted before judicial action may
be brought.
This action is not expected to have any significant impact on the
quality of the human environment, health, and safety. Therefore,
neither an Environmental Assessment or an Environmental Impact
Statement is needed.
Background
FCIC is changing its requirement that individuals or entities who
hold or acquire a five percent or greater substantial beneficial
interest in the policyholder must submit social security or employer
identification numbers to individuals or entities who hold or acquire a
ten percent or greater interest in the policyholder. FCIC is changing
its requirement from five to ten percent because the number of crop
insurance policyholders with share interests ranging from five to ten
percent are relatively insignificant. In addition, by raising the
requirement for when the amount of substantial beneficial interest is
applicable, FCIC eliminates the burden of additional paperwork by
eliminating collection of social security or employer identification
data in order to secure agricultural program benefits on beneficial
interest relationships falling in the five to ten percent category.
FCIC is also changing its record keeping requirements from five to
three years. By eliminating two years, FCIC will reduce the paperwork
burden and storage of records beyond three years, which is consistent
with other policy and program requirements. FCIC does not believe that
a two-year reduction of insureds' record storage will jeopardize the
integrity of the crop insurance program.
List of Subjects in 7 CFR Part 400
Crop insurance, Social Security numbers, Reporting and
recordkeeping requirements.
Accordingly, the Federal Crop Insurance Corporation amends 7 CFR
part 400, subpart Q as follows:
PART 400--GENERAL ADMINISTRATIVE REGULATIONS
1. The authority citation for part 400 continues to read as
follows:
Authority: 7 U.S.C. 1506, 1508.
2. Section 400.402 is amended by revising paragraph (v) to read as
follows:
Sec. 400.402 Definitions.
* * * * *
(v) Substantial beneficial interest--an interest of ten percent
(10%) or more in an application or policyholder.
* * * * *
3. Section 400.411 is revised to read as follows:
Sec. 400.411 Record retention.
The reinsured insurance company, either direct or reinsured, will
retain all records of policyholders for a period of not less than three
(3) years from the date of a final action on a policy for the crop year
unless maintenance of specific records is requested by the Corporation.
Final actions on insurance policies include conclusion of such
insurance events such as renewal or termination of policy, completion
of loss adjustment, or satisfaction of claim. Companies are reminded
that the Statute of Limitation for FCIC contract claims requires that
litigation be instituted within six years of a breach of contract.
Destruction of records will not provide a defense to any action by the
Corporation against any Company.
Done in Washington, DC, on October 3, 1994.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 94-25713 Filed 10-17-94; 8:45 am]
BILLING CODE 3410-08-M
