Catastrophic Risk Protection Endorsement and the Group Risk Plan of Insurance Regulations, 36407-36408 [08-1395]

Agencies

• DEPARTMENT OF AGRICULTURE
• Federal Crop Insurance Corporation

[Federal Register Volume 73, Number 125 (Friday, June 27, 2008)]
[Rules and Regulations]
[Pages 36407-36408]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-1395]



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Federal Register / Vol. 73, No. 125 / Friday, June 27, 2008 / Rules 
and Regulations

[[Page 36407]]


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DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Parts 402 and 407

RIN 0563-AC17


Catastrophic Risk Protection Endorsement and the Group Risk Plan 
of Insurance Regulations

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Final rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) amends the 
Catastrophic Risk Protection Endorsement (7 CFR 402.4) (CAT 
Endorsement), and the Group Risk Plan Common Policy (7 CFR 407.9) (GRP 
policy) to incorporate changes in the administrative fees for 
catastrophic risk protection mandated by the Food, Conservation, and 
Energy Act of 2008 (Farm Bill 2008).

DATES: Effective Date: This rule is effective June 25, 2008.

FOR FURTHER INFORMATION CONTACT: Erin Albright, Risk Management 
Specialist, Product Management, Product Administration and Standards 
Division, Risk Management Agency, United States Department of 
Agriculture, Beacon Facility--Mail Stop 0812, PO 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 0563-0053 through June 
30, 2008.

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 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

    FCIC certifies that this regulation will not have a significant 
economic impact on a substantial number of small entities. 
Administrative fee requirements for the Federal crop insurance program 
are the same for all producers regardless of the size of their 
operations. Whether a producer has 10 acres or 100 acres there is no 
difference in the administrative fee requirements. To ensure crop 
insurance is available to small entities, the Federal Crop Insurance 
Act authorizes FCIC to waive collection of administrative fees from 
limited resource farmers. FCIC believes this change helps ensure that 
small entities are given the same opportunities as large entities to 
manage their risks through the use of crop insurance. 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 12006 of 
the 2008 Farm Bill requires that each producer pay an administrative 
fee for catastrophic risk protection (CAT) in the amount of $300 per 
crop per county. The provisions are very specific and mandate certain 
terms that do not allow FCIC any discretion in the provisions or their 
implementation. Currently, the administrative fee for catastrophic risk 
protection is $100 per crop per county. Further, that section expressly

[[Page 36408]]

authorizes cooperative and trade associations to pay the administrative 
fee for CAT coverage under certain circumstances. Provisions have been 
modified to allow such associations to pay the CAT administrative fee.
    To effectuate this mandated change, FCIC is revising the CAT 
Endorsement and the GRP policy.
    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 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. Further, the 
next applicable contract change date, the date by which changes to the 
policy must be made to have them effective for the next crop year, is 
June 30, 2008. Therefore, there is no time to conduct a notice and 
comment rulemaking.
    For the reasons stated above, good cause exists to make these 
policy changes effective upon filing for public inspection at the 
Office of the Federal Register.

List of Subjects in 7 CFR Parts 402 and 407

    Crop insurance, Reporting and recordkeeping requirements.

Final Rule

0
Accordingly, as set forth in the preamble, the Federal Crop Insurance 
Corporation amends 7 CFR parts 402 and 407 effective for the 2009 and 
succeeding crop years for all crops with a 2009 crop year contract 
change date on or after the effective date of this rule, and for the 
2010 and succeeding crop years for all crops with a 2009 crop year 
contract change date prior to the effective date of this rule, as 
follows:

PART 402--CATASTROPHIC RISK PROTECTION ENDORSEMENT

0
1. The authority citation for 7 CFR Part 402 continues to read as 
follows:

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


0
2. Amend Sec.  402.4:
0
a. By removing the introductory text; and
0
b. In section 6, by revising the introductory text of paragraph (b) and 
paragraph (b)(1) to read as follows:


Sec.  402.4  Catastrophic Risk Protection Endorsement Provisions.

* * * * *
    6. Annual Premium and Administrative Fees.
* * * * *
    (b) In return for catastrophic risk protection coverage, you must 
pay an administrative fee to us within 30 days after you have been 
billed, unless otherwise authorized in the Federal Crop Insurance Act 
(You will be billed by the date stated in the Special Provisions);
    (1) The administrative fee owed is $300 for each crop in the county 
unless otherwise specified in the Special Provisions.
* * * * *

PART 407--GROUP RISK PLAN OF INSURANCE REGULATIONS

0
1. The authority citation for 7 CFR Part 407 continues to read as 
follows:

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


0
2. Revise the part heading as set forth above.
0
3. Amend Sec.  407.9:
0
a. By removing the introductory text; and
0
b. In section 8 by revising the introductory text of paragraph (a) and 
paragraph (a)(1) to read as follows:


Sec.  407.9  Group risk plan common policy.

* * * * *
    8. Administrative Fees and Annual Premium.
    (a) If you obtain a catastrophic risk protection GRP policy, you 
will pay an administrative fee, unless otherwise authorized in the Act:
    (1) Of $300 per crop per county unless otherwise specified in the 
Special Provisions;
* * * * *

    Signed in Washington, DC, on June 24, 2008.
Eldon Gould,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 08-1395 Filed 6-25-08; 11:42 am]
BILLING CODE 3410-08-P