[Federal Register Volume 63, Number 170 (Wednesday, September 2, 1998)]
[Proposed Rules]
[Pages 46706-46708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23522]
[[Page 46706]]
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DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
Common Crop Insurance Regulations; Grape Crop Insurance
Provisions
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to
amend the Grape Crop Insurance Provisions to: (1) allow grape producers
in Idaho, Oregon, and Washington to select one price election and one
coverage level for each varietal group specified in the Special
Provisions; and (2) provide year-round coverage in California, Idaho,
Mississippi, Oregon, Texas, and Washington for insureds with no break
in coverage from the prior crop year. The intended effect of this
action is to provide policy changes to better meet the needs of the
insured.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business October 2, 1998 and will be considered
when the rule is to be made final. The comment period for information
collections under the Paperwork Reduction Act of 1995 continues through
November 2, 1998.
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: Stephen Hoy, Insurance Management
Specialist, 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 exempt for the purposes of
Executive Order 12866 and, therefore, has not been reviewed by the
Office of Management and Budget (OMB).
Paperwork Reduction Act of 1995
This rule proposes to amend the information collection requirements
previously approved by OMB under OMB control number 0563-0053 through
October 31, 2000. This rule proposes to: (1) allow grape producers in
Idaho, Oregon, and Washington to select one price election and one
coverage level for each varietal group specified in the Special
Provisions, and (2) provide year-round crop insurance coverage for
grapes in California, Idaho, Mississippi, Oregon, Texas, and
Washington. All of the forms cleared under OMB control number 0563-0053
represent the minimum information necessary to determine eligibility
and losses qualifying for a payment due to grape coverage.
Revised reporting estimates and requirements for usage of OMB
control number 0563-0053 will be submitted to OMB for approval under
the provisions of 44 U.S.C. chapter 35. The comment period for
information collections under the Paperwork Reduction Act of 1995
continues through November 2, 1998.
The FCIC is seeking comments on the following information
collection request (ICR).
Title: Multiple Peril Crop Insurance.
Respondents/Affected Entities: Parties affected by the information
collection requirements included in this rule are grape producers.
Abstract: This rule improves the existing grape policy by: (1)
allowing grape producers in Idaho, Oregon, and Washington to select one
price election and one coverage level for each varietal group specified
in the Special Provisions, and (2) providing crop insurance coverage in
California, Idaho, Mississippi, Oregon, Texas, and Washington during
the period when no coverage currently exists. FCIC believes the
proposed policy will provide better crop insurance coverage to grape
producers.
Estimate of Burden: Public reporting burden for the collection of
information on all forms for the insurance of grapes is estimated at
51.1 minutes per participant because of the high degree of automation
associated with the data collection.
Respondents: Grape producers.
Estimated Number of Respondents: 11,201.
Estimated Number of Responses Per Respondent: 2.5.
Estimated Total Annual Burden on Respondents: 3,842 hours.
FCIC is requesting comments on the following: (a) whether the
proposed collection of information is necessary for the proper
performance of the functions of the agency, including whether the
information has practical utility; (b) the accuracy of the agency's
estimate of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information gathering
technology.
Comments regarding paperwork reduction should be submitted to the
Desk Officer for Agriculture, Office of Information and Regulatory
Affairs, Office of Management and Budget, Washington, D.C. 20503.
The Office of Management and Budget (OMB) is required to make a
decision concerning the collections of information contained in this
rule between 30 and 60 days after submission to OMB. Therefore, a
comment to OMB is best assured of having full effect if OMB receives it
within 30 days of publication. This does not affect the deadline for
the public to comment on the rule.
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 private sector. Thus, 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. New provisions included in this
rule will not impact small entities to a greater extent than large
entities. Under the current regulations, a producer is required to
complete an application and an acreage report. If the crop is damaged
or destroyed, the insured is required to give notice of loss and
provide the necessary information to complete a claim for indemnity.
This regulation
[[Page 46707]]
does not alter those requirements. The amount of work required of the
insurance companies delivering and servicing these policies will not
increase significantly from the amount of work currently required. This
rule does not have any greater or lesser impact on the producer.
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
FCIC proposes to amend the Common Crop Insurance Regulations (7 CFR
part 457) by revising 7 CFR 457.138 effective for the 2000 and
succeeding crop years. The principal changes to the provisions for
insuring grapes are as follows:
1. Section 3--Add provisions to allow grape producers in Idaho,
Oregon, and Washington to select one coverage level and one price
election for each varietal group designated in the Special Provisions.
Previously, the Special Provisions for these states did not always
allow different price elections or coverage levels by varietal group,
in which case the coverage level and price election designated by the
insured applied to all grapes in the county. In addition, a provision
is added to specify that, in California, Idaho, Mississippi, Oregon,
Texas, and Washington, the insured's elected or assigned coverage level
or the ratio of the insured's price election to the maximum price
election offered may not be increased after coverage begins if a cause
of loss that could or will reduce the yield of the insured crop is
evident prior to the time that the change in coverage is requested.
This limitation will preclude insureds with continuous coverage from
increasing the liability on their insured acreage following a cause of
loss that could or will reduce the yield of the crop.
2. Section 9--Specify that, in California, Idaho, Mississippi,
Oregon, Texas, and Washington, for each subsequent crop year this
policy remains continuously in force (policy cancellation that results
solely from transferring to a different insurance provider for a
subsequent crop year will not be considered a break in continuous
coverage), coverage begins on the day immediately following the end of
the insurance period for the prior crop year. According to the Common
Crop Insurance Policy, the insurance period ends on the earliest of:
(1) total destruction of the insured crop on the unit; (2) harvest of
the unit; (3) the calendar date contained in the Crop Provisions for
the end of the insurance period; (4) abandonment of the crop on the
unit; or (5) as otherwise specified in the crop provisions. The current
Grape Crop Provisions specify calendar dates for the beginning and end
of the insurance period, thereby establishing a minimum time period
during which no insurance coverage exists between crop years in
California, Idaho, Mississippi, Oregon, Texas, and Washington. This
rule proposes to eliminate any lapse in insurance coverage between crop
years regardless of when insurance coverage ends for the crop year.
List of Subjects in 7 CFR Part 457
Crop insurance, Grape.
Proposed Rule
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation proposes to amend 7 CFR part 457 as follows:
PART 457--COMMON CROP INSURANCE REGULATIONS; REGULATIONS FOR THE
1998 AND SUBSEQUENT CONTRACT YEARS
1. The authority citation for 7 CFR part 457 continues to read as
follows:
Authority: 7 U.S.C. 1506(l), 1506(p).
2. Section 457.138 is revised by amending the introductory text to
read as follows:
Sec. 457.138 Grape Crop Insurance Provisions.
The grape crop insurance provisions for the 2000 and succeeding
crop years are as follows:
* * * * *
3. In Sec. 457.138, sections 3(b) and 3(c) are amended and a new
section 3(f) is added to read as follows:
3. Insurance Guarantees, Coverage Levels, and Prices for
Determining Indemnities.
* * * * *
(b) In Idaho, Oregon, and Washington, you may select only one price
election and only one coverage level for each varietal group specified
in the Special Provisions.
(c) In all states except California, Idaho, Oregon, and Washington,
you may select only one price election and only one coverage level for
all the grapes in the county insured under this policy unless the
Special Provisions provide different price elections by varietal group,
in which case you may select one price election for each varietal group
designated in the Special Provisions. The price elections you choose
for each varietal group must have the same percentage relationship to
the maximum price offered by us for each varietal group. For example,
if you choose 100 percent of the maximum price election for one
varietal group, you must also choose 100 percent of the maximum price
election for all other varietal groups.
(d) * * *
(e) * * *
(f) In California, Idaho, Mississippi, Oregon, Texas, and
Washington, you may not increase your elected or assigned coverage
level or the ratio of your price election to the maximum price election
we offer after coverage begins if a cause of loss that could or will
reduce the yield of the insured crop is evident prior to the time that
you request a change in coverage.
* * * * *
4. In Sec. 457.138, section 9(a)(2) is redesignated as 9(a)(3) and
a new section 9(a)(2) is added to read as follows:
9. Insurance Period.
(a) * * *
(1) * * *
(2) In California, Idaho, Mississippi, Oregon, Texas, and
Washington, for each subsequent crop year that the policy remains
continuously in force, coverage begins on the day immediately following
the end of the insurance
[[Page 46708]]
period for the prior crop year. Policy cancellation that results solely
from transferring to a different insurance provider for a subsequent
crop year will not be considered a break in continuous coverage.
* * * * *
Signed in Washington, D.C., on July 16, 1998.
Kenneth D. Ackerman,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 98-23522 Filed 9-1-98; 8:45 am]
BILLING CODE 3410-08-P
