General Administrative Regulations; Mutual Consent Cancellation; Food Security Act of 1985, Implementation; Denial of Benefits; and Ineligibility for Programs Under the Federal Crop Insurance Act, 75799-75805 [2011-31085]
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Federal Register / Vol. 76, No. 233 / Monday, December 5, 2011 / Proposed Rules
full effects of a rule is widely dispersed
in society, members of the public are
likely to have useful information and
perspectives on the benefits and
burdens of existing requirements and
how regulatory obligations may be
updated, streamlined, revised, or
repealed to better achieve regulatory
objectives, while minimizing regulatory
burdens. Interested parties may also be
well-positioned to identify those rules
that are most in need of review and,
thus, assist the Department in
prioritizing and properly tailoring its
retrospective review process. In short,
engaging the public in an open,
transparent process is a crucial step in
DOE’s review of its existing regulations.
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List of Questions for Commenters
The following list of questions
represents an attempt by the Department
to assist in the formulation of comments
and is not intended to restrict the issues
that may be addressed. In addressing
these questions or others, DOE requests
that commenters identify with
specificity the regulation or reporting
requirement at issue, providing legal
citation where available. The
Department also requests that the
submitter provide, in as much detail as
possible, an explanation why a
regulation or reporting requirement
should be modified, streamlined,
expanded, or repealed, as well as
specific suggestions of ways the
Department can better achieve its
regulatory objectives.
(1) How can the Department best
promote meaningful periodic reviews of
its existing rules and how can it best
identify those rules that might be
modified, streamlined, expanded, or
repealed?
(2) What factors should the agency
consider in selecting and prioritizing
rules and reporting requirements for
review?
(3) Are there regulations that are or
have become unnecessary, ineffective,
or ill advised and, if so, what are they?
Are there rules that can simply be
repealed without impairing the
Department’s regulatory programs and,
if so, what are they?
(4) Are there rules or reporting
requirements that have become outdated
and, if so, how can they be modernized
to accomplish their regulatory objectives
better?
(5) Are there rules that are still
necessary, but have not operated as well
as expected such that a modified,
stronger, or slightly different approach
is justified?
(6) Does the Department currently
collect information that it does not need
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or use effectively to achieve regulatory
objectives?
(7) Are there regulations, reporting
requirements, or regulatory processes
that are unnecessarily complicated or
could be streamlined to achieve
regulatory objectives in more efficient
ways?
(8) Are there rules or reporting
requirements that have been overtaken
by technological developments? Can
new technologies be leveraged to
modify, streamline, or do away with
existing regulatory or reporting
requirements?
(9) How can the Department best
obtain and consider accurate, objective
information and data about the costs,
burdens, and benefits of existing
regulations? Are there existing sources
of data the Department can use to
evaluate the post-promulgation effects
of regulations over time? We invite
interested parties to provide data that
may be in their possession that
documents the costs, burdens, and
benefits of existing requirements.
(10) Are there regulations that are
working well that can be expanded or
used as a model to fill gaps in other
DOE regulatory programs?
The Department notes that this RFI is
issued solely for information and
program-planning purposes. While
responses to this RFI do not bind DOE
to any further actions related to the
response, all submissions will be made
publically available on https://
www.regulations.gov.
Issued in Washington, DC, on November
28, 2011.
Sean A. Lev,
Acting General Counsel, Department of
Energy.
[FR Doc. 2011–31115 Filed 12–2–11; 8:45 am]
BILLING CODE 6450–01–P
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 400
[Docket No. FCIC–11–0009]
RIN 0563–AC26
General Administrative Regulations;
Mutual Consent Cancellation; Food
Security Act of 1985, Implementation;
Denial of Benefits; and Ineligibility for
Programs Under the Federal Crop
Insurance Act
Federal Crop Insurance
Corporation, USDA.
ACTION: Proposed rule.
AGENCY:
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75799
The Federal Crop Insurance
Corporation (FCIC) proposes to amend
the General Administrative Regulations
to revise Subpart U—Ineligibility for
Programs under the Federal Crop
Insurance Act to eliminate
redundancies, improve clarity, remove
or update obsolete references, and add
references to other provisions regarding
ineligibility for Federal crop insurance.
In addition, FCIC proposes to remove
Subpart C—General Administrative
Regulations; Mutual Consent
Cancellation and Subpart F—Food
Security Act of 1985, Implementation;
Denial of Benefits. The changes will
apply for the 2013 and succeeding crop
years.
SUMMARY:
Written comments and opinions
on this proposed rule will be accepted
until close of business February 3, 2012
and will be considered when the rule is
to be made final. Comments on the
information collection requirements
must be received on or before February
3, 2012.
DATES:
FCIC prefers that comments
be submitted electronically through the
Federal eRulemaking Portal. You may
submit comments, identified by Docket
ID No. FCIC–11–0009, by any of the
following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Director, Product
Administration and Standards Division,
Risk Management Agency, United States
Department of Agriculture, P.O. Box
419205, Kansas City, MO 64133–6205.
All comments received, including
those received by mail, will be posted
without change to https://
www.regulations.gov, including any
personal information provided, and can
be accessed by the public. All comments
must include the agency name and
docket number or Regulatory
Information Number (RIN) for this rule.
For detailed instructions on submitting
comments and additional information,
see https://www.regulations.gov. If you
are submitting comments electronically
through the Federal eRulemaking Portal
and want to attach a document, we ask
that it be in a text-based format. If you
want to attach a document that is a
scanned Adobe PDF file, it must be
scanned as text and not as an image,
thus allowing FCIC to search and copy
certain portions of your submissions.
For questions regarding attaching a
document that is a scanned Adobe PDF
file, please contact the Risk
Management Agency (RMA) Web
Content Team at (816) 823–4694 or by
email at rmaweb.content@rma.usda.gov.
ADDRESSES:
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Privacy Act: Anyone is able to search
the electronic form of all comments
received for any dockets by the name of
the individual submitting the comment
(or signing the comment, if submitted
on behalf of an association, business,
labor union, etc.). You may review the
complete User Notice and Privacy
Notice for Regulations.gov at https://
www.regulations.gov/#!privacyNotice.
FOR FURTHER INFORMATION CONTACT:
Director, Product Administration and
Standards Division, at the Kansas City,
MO, address listed above, telephone
(816) 926–7387.
SUPPLEMENTARY INFORMATION:
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Executive Order 12866
The Office of Management and Budget
(OMB) has determined that this rule is
non-significant for the purpose of
Executive Order 12866 and, therefore, it
has not been reviewed by 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 March 31,
2012. However, FCIC is creating a new
package for the information collection
requirements necessary for
administering 7 CFR, part 400, subpart
U.
Accordingly, in accordance with the
Paperwork Reduction Act of 1995, RMA
is seeking comments from all interested
individuals and organizations on a new
information collection request
associated with 7 CFR, part 400, subpart
U—Ineligibility for Programs under the
Federal Crop Insurance Act.
You may submit comments, identified
by Docket ID No. FCIC–11–0009, by
going to the Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
Title: 7 CFR, part 400, subpart U—
Ineligibility for Programs under the
Federal Crop Insurance Act.
OMB Control Number: 0563—NEW.
Type of Request: New.
Abstract: The following mandates
require FCIC to identify persons who are
ineligible to participate in the Federal
crop insurance program administered
under the Federal Crop Insurance Act.
(1) Section 1764 of the Food Security
Act of 1985 (Pub. L. 99–198);
(2) 21 U.S.C., Chapter 13;
(3) Section 14211 of the Food,
Conservation, and Energy Act of 2008
(Pub. L. 110–246);
(4) Executive Order 12549; and
(5) 7 U.S.C. 1515.
The FCIC and Approved Insurance
Providers (AIPs) use the information
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collected to determine whether persons
seeking to obtain Federal crop insurance
coverage are ineligible for such coverage
according to the aforementioned
mandates. The purpose of collecting the
information is to ensure persons that are
ineligible for benefits under the Federal
crop insurance program are accurately
identified as such and do not obtain
benefits to which they are not eligible.
FCIC and RMA do not obtain
information used to identify a person as
ineligible for benefits under the Federal
crop insurance program directly from
the ineligible person. AIPs notify RMA
of persons with a delinquent debt
electronically through a secure
automated system. RMA (1) Sends
written notification to the person
informing them they are ineligible for
benefits under the Federal crop
insurance program; and (2) places that
person on the RMA Ineligible Tracking
System until the person regains
eligibility for such benefits.
RMAs Office of General Counsel
notifies RMA in writing of persons
convicted of controlled substance
violations. RMA (1) Sends written
notification to the person informing
them they are ineligible for benefits
under the Federal crop insurance
program; and (2) places that person on
RMAs Ineligible Tracking System until
the person regains eligibility for such
benefits.
Persons debarred, suspended or
disqualified by RMA are (1) Notified, in
writing, they are ineligible for benefits
under the Federal crop insurance
program; and (2) placed on RMAs
Ineligible Tracking System until the
person regains eligibility for such
benefits.
Information identifying persons who
are ineligible for benefits under the
Federal crop insurance program is made
available to all AIPs through RMAs
Ineligible Tracking System. The
Ineligible Tracking System is an
electronic system, maintained by RMA,
which identifies persons who are
ineligible to participate in the Federal
crop insurance program. The
information must be made available to
all AIPs to ensure ineligible persons
cannot circumvent the mandates by
switching from one AIP to another.
In addition, information identifying
persons who are debarred, suspended or
disqualified by RMA is provided to the
General Services Administration to be
included in the Excluded Parties List
System, an electronic system
maintained by the General Services
Administration that provides current
information about persons who are
excluded or disqualified from covered
transactions.
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Estimate of burden: Reporting burden
for the collection and transmission of
information by AIPs is estimated to
average 15 minutes per response.
Respondents: Approved Insurance
Providers.
Estimated number of respondents:
16 AIPs.
Estimated number of forms per
respondent: All information is obtained
electronically from AIPs.
Estimated total annual responses:
5,792 total from all respondents.
Estimated total annual respondent
burden: 1,448 total from all
respondents.
We are requesting comments on all
aspects of this information collection to
help us to:
(1) Evaluate whether the collection of
information is necessary for the proper
performance of the functions of the
agencies, including whether the
information will have practical utility;
(2) Evaluate the accuracy of the
agency’s estimate of burden including
the validity of the methodology and
assumptions used;
(3) Enhance the quality, utility and
clarity of the information to be
collected; and
(4) Minimize the burden of the
collection of information on those who
are to respond.
All comments in response to this
notice, including names and addresses
when provided, will be a matter of
public record. Comments will be
summarized and included in the request
for OMB approval.
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,
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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.
Executive Order 13175
This rule has been reviewed in
accordance with the requirements of
Executive Order 13175, Consultation
and Coordination with Indian Tribal
Governments. The review reveals that
this regulation will not have substantial
and direct effects on Tribal governments
and will not have significant Tribal
implications.
Regulatory Flexibility Act
FCIC certifies that this regulation will
not have a significant economic impact
on a substantial number of small
entities. Program requirements for the
Federal crop insurance program are the
same for all producers regardless of the
size of their farming operation.
However, FCIC does waive certain
administrative fees for limited resource
farmers to help ensure that small
entities are given the same opportunities
as large entities to obtain crop
insurance. This regulation provides the
rules regarding ineligibility for crop
insurance under the Act based on
actions or inactions of the producer,
such as violations of the Controlled
Substance Act, debarment from Federal
Government programs, and failure to
pay premiums and administrative fees
when due. As such, all producers are
treated equally under this regulation. A
Regulatory Flexibility Analysis has not
been prepared since this regulation does
not have an unduly burdening 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
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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.
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Executive Order 12988
This proposed 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.
List of Subjects in 7 CFR Part 400
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.
PART 400—GENERAL
ADMINISTRATIVE REGULATIONS
Background
FCIC proposes to revise 7 CFR part
400 by revising subpart U—Ineligibility
for Programs Under the Federal Crop
Insurance Act to eliminate
redundancies, improve clarity, remove
or update obsolete references, and
simplify the regulations regarding
ineligibility for Federal crop insurance.
The rule will also reflect the provisions
of the Controlled Substances Act and
the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
The Controlled Substance Act provides
that persons convicted of possession or
trafficking of controlled substances are
ineligible for certain Federal benefits,
including crop insurance. The Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 provides that
persons who are not a United States
citizen, United States non-citizen
national, or a qualified alien are
ineligible for certain Federal benefits,
including crop insurance.
The proposed rule also incorporates
the provisions formally contained in 7
CFR part 400, subpart F into subpart U
for efficiency and ease of use.
Accordingly, subpart F will be removed
and reserved.
Last, 7 CFR part 400, subpart C was
promulgated in 1992 to allow certain
crop insurance policies to be cancelled
when producers applied for crop
insurance believing they were required
to obtain such crop insurance in order
to participate in certain Commodity
Credit Corporation disaster payment
programs, but subsequently determined
that such crop insurance was not a
prerequisite. Amendments to the
Federal Crop Insurance Act and the
authorization and implementation of the
Noninsured Crop Assistance Program
have made the provisions of subpart C
obsolete. Accordingly, this rule will
remove and reserve subpart C. The
provisions will be effective for the 2013
and succeeding crop years.
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Administrative practice and
procedure, Crop insurance, Reporting
and recordkeeping requirements.
Accordingly, as set forth in the
preamble, the Federal Crop Insurance
Corporation proposes to amend 7 CFR
part 400 as follows:
1. The authority citation for 7 CFR
part 400 continues to read as follows:
Authority: 7 U.S.C. 1506(1), 1506(o).
Subpart C—[Removed and Reserved]
2. Remove and Reserve subpart C,
General Administrative Regulations;
Mutual Consent Cancellation.
Subpart F—[Removed and Reserved]
3. Remove and Reserve subpart F,
Food Security Act of 1985,
Implementation; Denial of Benefits.
4. Revise subpart U, Ineligibility for
Programs under the Federal Crop
Insurance Act, to read as follows:
Subpart U—Ineligibility for Programs
Under the Federal Crop Insurance Act
400.675
400.676
400.677
400.678
400.679
400.680
400.681
400.682
400.683
400.684
400.685
400.686
§ 400.675
Purpose.
[Reserved]
Definitions.
Applicability.
Criteria for ineligibility.
Controlled substance.
Written payment agreement.
Determination and notification.
Period of ineligibility.
Effect of ineligibility.
Criteria for regaining eligibility.
Administration and maintenance.
Purpose.
This rule prescribes conditions under
which a person may be determined to be
ineligible to participate in any program
administered under the authority of the
Federal Crop Insurance Act. This rule
also establishes the criteria for regaining
eligibility.
§ 400.676
[Reserved]
§ 400.677
Definitions.
Act means the Federal Crop Insurance
Act (7 U.S.C. 1501–1524).
Applicant means a person who has
submitted an application for crop
insurance coverage under the Act.
Approved Insurance Provider (AIP)
means a legal entity which has entered
into a Standard Reinsurance Agreement
with FCIC for the applicable reinsurance
year.
Authorized person means any current
or past officer, employee, elected
official, managing general agent, agent,
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or contractor of an AIP, FCIC, or any
other government agency whose duties
require access to the ITS to administer
the Act.
Controlled substance has the same
meaning provided in 7 CFR 3021.610.
Conviction means (1) a judgment or
any other determination of guilt of a
criminal offense by any court of
competent jurisdiction, whether entered
upon a verdict or plea, including a plea
of nolo contendere; or (2) any other
resolution that is the functional
equivalent of a judgment, including
probation before judgment and deferred
prosecution. A disposition without the
participation of the court is the
functional equivalent of a judgment
only if it includes an admission of guilt.
Date of delinquency means (1) the
termination date specified in the
applicable policy for administrative fees
and premiums owed for insurance
issued under the authority of the Act,
and any interest and penalties on those
amounts, if applicable; (2) the due date
specified in the notice to the person of
the amount due for any other amounts
due the AIP or FCIC for insurance
issued under the authority of the Act,
including but not limited to,
indemnities, prevented planting
payments, or replant payments found
not to have been earned or that were
overpaid, and any interest,
administrative fees, and penalties on
such amounts, if applicable. Payments
postmarked or received before the date
of delinquency by the AIP or its agent
for debts owed to the AIP, or by FCIC
for debts owed to FCIC, are not
delinquent.
Debt means an amount of money that
has been determined to be owed by any
person to FCIC or an AIP, excluding
money owed to an AIP’s agent, under
any program administered under the
Act. The debt may have arisen from
nonpayment of interest, penalties,
premium, or administrative fee;
overpayment of indemnity, prevented
planting or replant payment; cost of
collection; or other causes. A debt does
not include debts discharged in
bankruptcy or other debts which are
legally barred from collection.
Debtor means a person who owes a
debt and that debt is delinquent.
Delinquent debt means a debt that is
not satisfied on or before the date of
delinquency. To avoid delinquency, a
debtor may enter into a written payment
agreement acceptable to the AIP or FCIC
to pay any such debt as long as all
payments are made by the due dates
specified in such written payment
agreement. A delinquent debt does not
include debts discharged in bankruptcy,
other debts which are legally barred
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from collection, or any debt to an AIP’s
agent.
Employer Identification Number (EIN)
means a Tax Identification Number
issued by the Internal Revenue Service
used to identify a business entity, and
may also be referred to as a Federal Tax
Identification Number.
Excluded Parties List System (EPLS)
means a list maintained by the General
Services Administration that provides a
source of current information about
persons who are excluded or
disqualified from covered transactions,
including the date the person was
determined ineligible and the date the
period of ineligibility ends.
Federal Crop Insurance Corporation
(FCIC) means a wholly owned
government corporation within the
USDA.
Ineligible person means a person who
is denied participation in any program
administered under the authority of the
Act.
Ineligible Tracking System (ITS)
means an electronic system to identify
persons who are ineligible to participate
in any program pursuant to this subpart.
Meaningful opportunity to contest
means the opportunity for the insured to
resolve disagreements with a decision
by the AIP through requesting a review
of the decision by the AIP, mediation,
arbitration, and judicial review, as
applicable.
Person means an individual,
partnership, association, corporation,
estate, trust, or other legal entity, and
wherever applicable, a State, political
subdivision, or an agency of a State.
‘‘Person’’ does not include the United
States Government or any agency
thereof.
Qualified alien has the same meaning
provided in the Personal Responsibility
and Work Opportunity Reconciliation
Act of 1996 (8 U.S.C. 1641).
Reinsurance year means the period
beginning July 1 and ending on June 30
of the following year and, for reference
purposes, identified by reference to the
year containing June.
Settlement means a signed written
payment agreement between a debtor
and FCIC or the AIP to resolve a dispute
arising from a debt or other
administrative determination.
Social Security Number (SSN) means
an individual’s Social Security Number
as issued under the authority of the
Social Security Act.
Standard Reinsurance Agreement
(SRA) means a cooperative financial
assistance agreement between FCIC and
an AIP to deliver eligible crop insurance
contracts under the authority of the Act
and establishes the terms and
conditions under which FCIC will
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provide subsidy and reinsurance on
eligible crop insurance policies sold.
Substantial beneficial interest has the
same meaning as contained in the
applicable policy.
USDA means the United States
Department of Agriculture.
United States non-citizen national has
the same meaning provided in the
Personal Responsibility and Work
Opportunity Reconciliation Act of 1996
(8 U.S.C. 1408).
Written payment agreement means a
written document between a debtor and
the AIP or FCIC that is signed and dated
by all applicable parties to satisfy
financial obligations of the debtor with
scheduled installment payments under
conditions that modify the terms of the
original debt in accordance with
§ 400.681.
§ 400.678
Applicability.
This subpart applies to any program
administered under the authority of the
Act, including but not limited to:
(a) The catastrophic risk protection
plan of insurance;
(b) The additional coverage plans of
insurance as authorized under section
508(c) of the Act;
(c) Private insurance products
authorized under section 508(h) or
523(d) of the Act and reinsured by FCIC;
and
(d) Persons entering contracts or
cooperative agreements under sections
506(l), 522(c), 522(d), or 524(a) of the
Act.
§ 400.679
Criteria for ineligibility.
Except as otherwise provided, a
person is ineligible to participate in any
program administered under the
authority of the Act if the person meets
one or more of the following criteria:
(a) Has a delinquent debt.
(1) The existence and delinquency of
the debt must be verifiable.
(2) The person has to be provided a
meaningful opportunity to contest the
debt.
(3) If the person contests the debt,
such action does not delay or preclude:
(i) Determination or notification of
ineligibility in accordance with
§ 400.682;
(ii) Effect of the determination of
ineligibility;
(iii) Termination of the applicable
crop insurance policies; or
(iv) Ineligible persons being reported
in accordance with § 400.682 or the
ineligible persons being recorded in the
ITS.
(4) If the person is determined not to
owe the debt, eligibility is reinstated
retroactive to the date of the
determination of ineligibility, any
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applicable policies will be reinstated,
and any applicable indemnity,
prevented planting or replant payment
earned may be paid provided the person
has continued to comply with the terms
of the policy.
(b) Has been convicted of a controlled
substance violation according to
§ 400.680;
(c) Has been disqualified under
section 515(h) of the Act or has been
debarred or suspended under 7 CFR part
400 subpart R, or 7 CFR part 3017, or
a successor regulation. Ineligibility
determinations will not be stayed
pending review. However, reversal of
the determination of ineligibility will
reinstate eligibility retroactive to the
date of the determination of
ineligibility, and any policies will be
reinstated.
(d) Is not a United States citizen,
United States non-citizen national, or a
qualified alien. Such persons may not
be recorded in the ITS; however, such
persons are ineligible under the
provisions of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, 8 U.S.C.
1611;
(e) Has been convicted of a felony for
knowingly defrauding the United States
in connection with any program
administered by USDA; or
(f) Knowingly doing business with an
ineligible person in accordance with 7
CFR part 3017.
§ 400.680
Controlled substance.
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(a) This section implements section
1764 of the Food Security Act of 1985
(Pub. L. 99–198) and Chapter 13 of Title
21 requiring the denial of Federal
Benefits, including crop insurance, to
persons convicted of controlled
substance violations in accordance with
subsection (b).
(b) Notwithstanding any other
provision of law, a person will be
ineligible to participate in any program
authorized under the Act, as provided
in § 400.683, if the person is convicted
under Federal or State law of:
(1) Planting, cultivating, growing,
producing, harvesting, or storing a
controlled substance in any crop year;
or
(2) Possession of or trafficking in a
controlled substance.
§ 400.681
Written payment agreement.
(a) Written payment agreements shall:
(1) Require scheduled installment
payments that will allow for full
repayment of the debt within the time
frame allotted in paragraph (2);
(2) Not exceed two years in duration;
and
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(3) Not be modified, replaced, or
consolidated after it has been executed
in accordance with subsections (b).
(b) To avoid being determined to be
ineligible through the execution of a
written payment agreement:
(1) For a debt arising from any unpaid
premium, administrative fees, or
catastrophic risk protection fees:
(i) Only one written payment
agreement is permitted per termination
date. A written payment agreement may
cover multiple crops provided they all
have the same termination date; and
(ii) The written payment agreement
must be signed by both parties, the
debtor and the AIP or FCIC, as
applicable, on or before the termination
date specified in the applicable policy
to prevent an ineligible determination
for a delinquent debt.
(2) For all other debts, the written
payment agreement must be signed by
both parties, the debtor and the AIP or
FCIC, as applicable, on or before the due
date specified in the notice to the
person of the amount due to prevent an
ineligible determination for a
delinquent debt.
§ 400.682
Determination and notification.
(a) The AIP must send a written
notice of the debt to the person,
including the time frame in which the
debt must be paid, and provide the
person with a meaningful opportunity
to contest the amount or existence of the
debt.
(1) The AIP shall evaluate the
person’s response, if any, and determine
if the debt is owed and delinquent.
(2) Upon request by FCIC, the AIP
shall submit all documentation related
to the debt to FCIC.
(b) If an AIP or any other person has
evidence that a person meets any
criteria set forth in § 400.679, they must
immediately notify FCIC.
(c) After the AIP determines a person
has met one or more of the criteria in
§ 400.679 and notifies FCIC, FCIC will
issue and mail a Notice of Ineligibility
to the person’s last known address and
to the AIP. Notices sent to such address
will be conclusively presumed to have
been received by that person.
(d) The Notice of Ineligibility will
state the criteria upon which the
determination of ineligibility has been
based, a brief statement of the facts to
support the determination, the time
period of ineligibility, and the right to
appeal the determination to be placed
on the ITS in accordance with
subsection (e).
(e) Within 30 days of receiving the
Notice of Ineligibility, the ineligible
person may appeal FCIC’s
determination to be placed on ITS to the
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Sfmt 4702
75803
National Appeals Division in
accordance with 7 CFR part 11. The
existence and amount of the debt is
determined by the AIP, not FCIC;
therefore, those determinations are not
appealable to the National Appeals
Division.
(f) If the person appeals FCIC’s
determination to be placed on ITS to the
National Appeals Division, the AIP will
be notified and provided with an
opportunity to participate in the
proceeding, if permitted by 7 CFR part
11.
§ 400.683
Period of ineligibility.
(a) The beginning of the period of
ineligibility will be:
(1) For ineligibility as a result of a
delinquent debt, beginning on the date
stated in the applicable policy;
(2) For ineligibility as a result of a
conviction of the controlled substance
provisions, the beginning of the crop
year in which the person is convicted;
(3) For ineligibility as a result of a
disqualification, debarment, or
suspension, the date the person was
disqualified, debarred, or suspended by
debarring official, Administrative Law
Judge, or such other person authorized
to take such action; and
(4) For ineligibility as a result of a
felony conviction for knowingly
defrauding the United States in
connection with any program
administered by USDA, the crop year in
which the person is convicted.
(b) The duration of the period of
ineligibility will be:
(1) For ineligibility as a result of a
delinquent debt, until the debt has been
paid in full, discharged in bankruptcy,
or the person has executed a written
payment agreement.
(2) For ineligibility as a result of a
conviction of:
(i) Planting, cultivating, growing,
producing, harvesting, or storing a
controlled substance, for four crop years
succeeding the crop year in which the
person was convicted; and
(ii) Possession of a controlled
substance or trafficking in a controlled
substance, in addition to the time
imposed in subparagraph (i), until the
period of time imposed by a court has
expired.
(3) For ineligibility as a result of a
disqualification, debarment, or
suspension until the period of time of
disqualification, debarment, or
suspension, as applicable, has expired.
(4) For ineligibility as a result of not
being a United States citizen, United
States non-citizen national, or a
qualified alien, until the date such
person becomes a United States citizen,
United States non-citizen national, or a
qualified alien.
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(5) For ineligibility as a result of a
felony conviction for knowingly
defrauding the United States in
connection with any program
administered by USDA, permanent
unless otherwise determined by the
Secretary of Agriculture for a period of
not less than 10 years.
srobinson on DSK4SPTVN1PROD with PROPOSALS
§ 400.684
Effect of ineligibility.
(a) The effect of ineligibility depends
on the basis for the determination.
(1) Persons who are ineligible as a
result of a delinquent debt are ineligible
for crop insurance authorized under the
Act for a certain time period in
accordance with § 400.683.
(2) Persons who are ineligible as a
result of a suspension or debarment are
precluded from:
(i) Participating in all programs
authorized under the Act, including but
not limited to:
(A) Obtaining crop insurance;
(B) Acting as an agent, loss adjuster,
insurance provider, or other affiliate, as
defined in the Standard Reinsurance
Agreement;
(C) Entering into any contracts with
FCIC under sections 506(l) and section
522(c) of the Act; and
(D) Entering into any cooperative
agreements or partnerships under
sections 506(l), 522(d) and 524(a) of the
Act; and
(ii) Participating in any other covered
transaction as specified in 7 CFR part
3017, or a successor regulation.
(3) Persons who are ineligible because
of disqualification under section 515(h)
of the Act are precluded from
participating in all programs authorized
under the Act, indicated in paragraph
(2)(i), and those listed in section
515(h)(3)(B) and (C) of the Act.
(4) Persons who are ineligible because
of violation of the controlled substance
provisions or are not a United States
citizen, United States non-citizen
national, or a qualified alien are
precluded from participating in any
program authorized under the Act
indicated in paragraph (2)(i).
(5) Persons who are ineligible as a
result of a felony conviction for
knowingly defrauding the United States
in connection with any program
administered by USDA, are precluded
from participating in any program
offered by USDA.
(b) Once a person has been
determined to be ineligible:
(1) The person will be placed on the
ITS and may be reported to other
government agencies.
(2) If the ineligible person is an
individual:
(i) All crop insurance policies in
which the ineligible person is the sole
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insured will terminate and the person
will remain ineligible for crop insurance
for the applicable period specified in
§ 400.683.
(ii) The ineligible person must be
reported on all policies in which the
ineligible person has a substantial
beneficial interest in the applicant or
insured, and the insured share under
such policy will be reduced
commensurate with the ineligible
person’s substantial beneficial interest
in the applicant or insured for as long
as the ineligible person remains
ineligible in accordance with § 400.683.
(iii) All crop insurance policies in
which the ineligible person is insured as
landlord/tenant will terminate on the
next termination date. The other
person(s) on such policy may submit a
new application for crop insurance
coverage on or before the applicable
sales closing date to obtain insurance
coverage for the crop, if they are
otherwise eligible for such coverage.
(3) If the ineligible person is a general
or limited liability partnership and is
ineligible as a result of a delinquent
debt, all partners of the ineligible
general or limited liability partnership
will be ineligible.
(i) All crop insurance policies in
which the ineligible partnership or an
ineligible partner of the partnership is
the sole insured will terminate, and the
ineligible partnership and all partners of
the partnership will remain ineligible
for crop insurance for the applicable
period specified in § 400.683.
(ii) The ineligible partnership and all
ineligible partners in the partnership
must be reported on any other policy in
which they have a substantial beneficial
interest in the applicant or insured, and
the insured share under such policies
will be reduced commensurate with the
ineligible partnership or partners’
substantial beneficial interest in the
applicant or insured for as long as the
partnership or partners remain
ineligible in accordance with § 400.683.
(4) If the ineligible person is a joint
venture and is ineligible as a result of
a delinquent debt, all members of the
joint venture will be ineligible.
(i) All policies in which the joint
venture or a member of the joint venture
is the sole insured will terminate and
the joint venture and all members of the
joint venture will remain ineligible for
crop insurance for the applicable period
specified in § 400.683.
(ii) The joint venture and all members
of the joint venture must be reported on
any other policy in which they have a
substantial beneficial interest in the
applicant or insured, and the insured
share under such policies will be
reduced commensurate with the
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Fmt 4702
Sfmt 4702
ineligible person’s substantial beneficial
interest in the applicant or insured for
as long as the joint venture or members
remain ineligible in accordance with
§ 400.683.
(5) If the ineligible person is an
association, estate, trust, corporation,
limited liability company, limited
partnership, or other similar entity, and
is ineligible as a result of a delinquent
debt, any partners, members,
shareholders, administrators, executors,
trustees, or grantors may be individually
ineligible if the delinquent debt
occurred as a result of their actions or
inactions, as determined by the AIP or
FCIC.
(i) If determined ineligible, all
policies in which such person is the
sole insured will terminate, and the
person will remain ineligible for crop
insurance for the applicable period
specified in § 400.683.
(ii) The ineligible person must be
reported on any other policy in which
they have a substantial beneficial
interest in the applicant or insured, and
the insured share under such policies
will be reduced commensurate with the
ineligible person’s substantial beneficial
interest in the applicant or insured for
as long as the person remains ineligible
in accordance with § 400.683.
(6) If an applicant or insured is a
corporation, partnership, joint venture,
trust, corporation, limited liability
company, limited partnership, or other
similar entity that was created to
conceal the interest of an ineligible
person or to evade the ineligibility
determination of a person with a
substantial beneficial interest in the
applicant or insured, the policy will be
void.
(b) The spouse and minor child of an
individual insured is considered to be
the same as the individual for purposes
of this subpart and subject to the same
ineligibility except when:
(1) The individual is ineligible due to
a conviction of a controlled substance
violation in accordance with § 400.680;
(2) The individual is ineligible as a
result of a felony conviction for
knowingly defrauding the United States
in connection with any program
administered by USDA;
(3) The individual is ineligible
because they are not a United States
citizen, United States non-citizen
national, or a qualified alien;
(4) The individual is ineligible as a
result of a disqualification, debarment,
or suspension;
(5) The spouse can prove they are
legally separated or otherwise legally
separate under the applicable State
dissolution of marriage laws; or
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Federal Register / Vol. 76, No. 233 / Monday, December 5, 2011 / Proposed Rules
(6) The minor child has a separate
legal interest in such person or is
engaged in a separate farming operation
from the individual.
(c) When a policy is terminated in
accordance with this subpart:
(1) No indemnities or payments will
be paid for the crop year in which the
policy was terminated; and
(2) Any indemnities or payments
already made for the crop year in which
the policy was terminated will be
declared overpayments and must be
repaid in full.
(d) When the insured share of a policy
is reduced in accordance with this
subpart:
(1) Any indemnities or payments
commensurate with the share reduced
already made for the crop year in which
the reduction occurred will be declared
overpayments and must be repaid in
full; and
(2) Any premiums paid by the insured
commensurate with the share reduced
will be refunded.
(e) Any insurance written by an AIP
to any person who is ineligible under
the provisions of this subpart is not
eligible for reinsurance by FCIC. All
premium subsidies, expenses, or other
payments made by FCIC for insurance
written for any person who is ineligible
under the provisions of this subpart
must be immediately refunded to FCIC.
srobinson on DSK4SPTVN1PROD with PROPOSALS
§ 400.685
Criteria for regaining eligibility.
After the period of ineligibility as
specified in § 400.683 has ended, the
ineligible person is eligible to
participate in programs authorized
under the Act, provided the person
meets all eligibility requirements.
(a) After a person regains eligibility
for crop insurance, if their policy was
terminated the person must submit a
new application for crop insurance
coverage on or before the applicable
sales closing date to obtain insurance
coverage for the crop. If the date of
regaining eligibility occurs after the
applicable sales closing date for the crop
year, the person may not participate
until the following crop year unless that
crop policy allows for applications to be
accepted after the sales closing date.
(b) If a person who was determined
ineligible according to this subpart is
subsequently determined to be an
eligible person for crop insurance
through mediation, arbitration, appeal,
or judicial review, such person’s
policies will be reinstated effective at
the beginning of the crop year for which
the producer was determined ineligible,
and such person will be entitled to all
applicable benefits under such policies,
provided the person meets all eligibility
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requirements and complies with the
terms of the policy.
§ 400.686 Administration and
maintenance.
(a) Ineligible producer data will be
maintained in a system of records
established and maintained by the Risk
Management Agency in accordance with
the Privacy Act (5 U.S.C. 552a).
(1) The ITS contains identifying
information of the ineligible person,
including but not limited to, name,
address, telephone number, SSN or EIN,
reason for ineligibility, and time period
of ineligibility.
(2) Information in the ITS may be
used by an authorized person. The
information may be furnished to other
users as may be appropriate or required
by law or regulation, including but not
limited to, FCIC contracted agencies,
other government agencies, credit
reporting agencies, and collection
agencies, and in response to judicial
orders in the course of litigation. The
individual information may be made
available in the form of various reports
and notices.
(3) Supporting documentation
regarding the determination of
ineligibility and reinstatement or
regaining of eligibility will be
maintained by FCIC, or its contractors,
AIPs, Federal agencies, and State
agencies. This documentation will be
maintained and retained consistent with
the electronic information contained
within the ITS.
(b) Information may be entered into
the ITS by FCIC employees or
contractors, or AIPs.
(c) All persons applying for crop
insurance policies or with crop
insurance policies continuing from a
previous crop year, issued or reinsured
by FCIC, will be subject to validation of
their eligibility status against the ITS.
Applications, transfers, or benefits
approved and accepted are considered
approved or accepted subject to review
of eligibility status in accordance with
this subpart.
(d) AIPs, partners, cooperators, and
contracts must check to ensure that the
persons with whom they are doing
business are eligible to participate in the
programs authorized under the Act. The
ITS does not include all persons
ineligible to receive government
benefits, such as persons debarred,
disqualified or suspended from
receiving government benefits by an
agency other than FCIC. Other sources,
including but not limited to EPLS,
provide data on persons ineligible to
participate in programs authorized
under the Act.
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Frm 00008
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75805
Signed in Washington, DC, on November
22, 2011.
William J. Murphy,
Manager, Federal Crop Insurance
Corporation.
[FR Doc. 2011–31085 Filed 12–2–11; 8:45 am]
BILLING CODE 3410–08–P
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 457
[Docket No. FCIC–11–0007]
RIN 0563–AC36
Common Crop Insurance Regulations;
Prune Crop Insurance Provisions
Federal Crop Insurance
Corporation, USDA.
ACTION: Proposed rule.
AGENCY:
The Federal Crop Insurance
Corporation (FCIC) proposes to amend
the Common Crop Insurance
Regulations, Prune Crop Insurance
Provisions to remove the quality
adjustment provisions for substandard
prunes and to make other changes to
clarify policy provisions. The intended
effect of this action is to provide policy
changes, to clarify existing policy
provisions to better meet the needs of
the producers, and to reduce
vulnerability to program fraud, waste,
and abuse. The changes will apply for
the 2013 and succeeding crop years.
DATES: Written comments and opinions
on this proposed rule will be accepted
until close of business February 3, 2012
and will be considered when the rule is
to be made final.
ADDRESSES: FCIC prefers that comments
be submitted electronically through the
Federal eRulemaking Portal. You may
submit comments, identified by Docket
ID No. FCIC–11–0007, by any of the
following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Director, Product
Administration and Standards Division,
Risk Management Agency, United States
Department of Agriculture, P.O. Box
419205, Kansas City, MO 64133–6205.
All comments received, including
those received by mail, will be posted
without change to https://
www.regulations.gov, including any
personal information provided, and can
be accessed by the public. All comments
must include the agency name and
docket number or Regulatory
Information Number (RIN) for this rule.
For detailed instructions on submitting
SUMMARY:
E:\FR\FM\05DEP1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 233 (Monday, December 5, 2011)]
[Proposed Rules]
[Pages 75799-75805]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31085]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Federal Crop Insurance Corporation
7 CFR Part 400
[Docket No. FCIC-11-0009]
RIN 0563-AC26
General Administrative Regulations; Mutual Consent Cancellation;
Food Security Act of 1985, Implementation; Denial of Benefits; and
Ineligibility for Programs Under the Federal Crop Insurance Act
AGENCY: Federal Crop Insurance Corporation, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to
amend the General Administrative Regulations to revise Subpart U--
Ineligibility for Programs under the Federal Crop Insurance Act to
eliminate redundancies, improve clarity, remove or update obsolete
references, and add references to other provisions regarding
ineligibility for Federal crop insurance. In addition, FCIC proposes to
remove Subpart C--General Administrative Regulations; Mutual Consent
Cancellation and Subpart F--Food Security Act of 1985, Implementation;
Denial of Benefits. The changes will apply for the 2013 and succeeding
crop years.
DATES: Written comments and opinions on this proposed rule will be
accepted until close of business February 3, 2012 and will be
considered when the rule is to be made final. Comments on the
information collection requirements must be received on or before
February 3, 2012.
ADDRESSES: FCIC prefers that comments be submitted electronically
through the Federal eRulemaking Portal. You may submit comments,
identified by Docket ID No. FCIC-11-0009, by any of the following
methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Mail: Director, Product Administration and Standards
Division, Risk Management Agency, United States Department of
Agriculture, P.O. Box 419205, Kansas City, MO 64133-6205.
All comments received, including those received by mail, will be
posted without change to https://www.regulations.gov, including any
personal information provided, and can be accessed by the public. All
comments must include the agency name and docket number or Regulatory
Information Number (RIN) for this rule. For detailed instructions on
submitting comments and additional information, see https://www.regulations.gov. If you are submitting comments electronically
through the Federal eRulemaking Portal and want to attach a document,
we ask that it be in a text-based format. If you want to attach a
document that is a scanned Adobe PDF file, it must be scanned as text
and not as an image, thus allowing FCIC to search and copy certain
portions of your submissions. For questions regarding attaching a
document that is a scanned Adobe PDF file, please contact the Risk
Management Agency (RMA) Web Content Team at (816) 823-4694 or by email
at rmaweb.content@rma.usda.gov.
[[Page 75800]]
Privacy Act: Anyone is able to search the electronic form of all
comments received for any dockets by the name of the individual
submitting the comment (or signing the comment, if submitted on behalf
of an association, business, labor union, etc.). You may review the
complete User Notice and Privacy Notice for Regulations.gov at https://www.regulations.gov/#!privacyNotice.
FOR FURTHER INFORMATION CONTACT: Director, Product Administration and
Standards Division, at the Kansas City, MO, address listed above,
telephone (816) 926-7387.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
rule is non-significant for the purpose of Executive Order 12866 and,
therefore, it has not been reviewed by 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 March
31, 2012. However, FCIC is creating a new package for the information
collection requirements necessary for administering 7 CFR, part 400,
subpart U.
Accordingly, in accordance with the Paperwork Reduction Act of
1995, RMA is seeking comments from all interested individuals and
organizations on a new information collection request associated with 7
CFR, part 400, subpart U--Ineligibility for Programs under the Federal
Crop Insurance Act.
You may submit comments, identified by Docket ID No. FCIC-11-0009,
by going to the Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Title: 7 CFR, part 400, subpart U--Ineligibility for Programs under
the Federal Crop Insurance Act.
OMB Control Number: 0563--NEW.
Type of Request: New.
Abstract: The following mandates require FCIC to identify persons
who are ineligible to participate in the Federal crop insurance program
administered under the Federal Crop Insurance Act.
(1) Section 1764 of the Food Security Act of 1985 (Pub. L. 99-198);
(2) 21 U.S.C., Chapter 13;
(3) Section 14211 of the Food, Conservation, and Energy Act of 2008
(Pub. L. 110-246);
(4) Executive Order 12549; and
(5) 7 U.S.C. 1515.
The FCIC and Approved Insurance Providers (AIPs) use the
information collected to determine whether persons seeking to obtain
Federal crop insurance coverage are ineligible for such coverage
according to the aforementioned mandates. The purpose of collecting the
information is to ensure persons that are ineligible for benefits under
the Federal crop insurance program are accurately identified as such
and do not obtain benefits to which they are not eligible.
FCIC and RMA do not obtain information used to identify a person as
ineligible for benefits under the Federal crop insurance program
directly from the ineligible person. AIPs notify RMA of persons with a
delinquent debt electronically through a secure automated system. RMA
(1) Sends written notification to the person informing them they are
ineligible for benefits under the Federal crop insurance program; and
(2) places that person on the RMA Ineligible Tracking System until the
person regains eligibility for such benefits.
RMAs Office of General Counsel notifies RMA in writing of persons
convicted of controlled substance violations. RMA (1) Sends written
notification to the person informing them they are ineligible for
benefits under the Federal crop insurance program; and (2) places that
person on RMAs Ineligible Tracking System until the person regains
eligibility for such benefits.
Persons debarred, suspended or disqualified by RMA are (1)
Notified, in writing, they are ineligible for benefits under the
Federal crop insurance program; and (2) placed on RMAs Ineligible
Tracking System until the person regains eligibility for such benefits.
Information identifying persons who are ineligible for benefits
under the Federal crop insurance program is made available to all AIPs
through RMAs Ineligible Tracking System. The Ineligible Tracking System
is an electronic system, maintained by RMA, which identifies persons
who are ineligible to participate in the Federal crop insurance
program. The information must be made available to all AIPs to ensure
ineligible persons cannot circumvent the mandates by switching from one
AIP to another.
In addition, information identifying persons who are debarred,
suspended or disqualified by RMA is provided to the General Services
Administration to be included in the Excluded Parties List System, an
electronic system maintained by the General Services Administration
that provides current information about persons who are excluded or
disqualified from covered transactions.
Estimate of burden: Reporting burden for the collection and
transmission of information by AIPs is estimated to average 15 minutes
per response.
Respondents: Approved Insurance Providers.
Estimated number of respondents: 16 AIPs.
Estimated number of forms per respondent: All information is
obtained electronically from AIPs.
Estimated total annual responses: 5,792 total from all respondents.
Estimated total annual respondent burden: 1,448 total from all
respondents.
We are requesting comments on all aspects of this information
collection to help us to:
(1) Evaluate whether the collection of information is necessary for
the proper performance of the functions of the agencies, including
whether the information will have practical utility;
(2) Evaluate the accuracy of the agency's estimate of burden
including the validity of the methodology and assumptions used;
(3) Enhance the quality, utility and clarity of the information to
be collected; and
(4) Minimize the burden of the collection of information on those
who are to respond.
All comments in response to this notice, including names and
addresses when provided, will be a matter of public record. Comments
will be summarized and included in the request for OMB approval.
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,
[[Page 75801]]
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.
Executive Order 13175
This rule has been reviewed in accordance with the requirements of
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments. The review reveals that this regulation will not have
substantial and direct effects on Tribal governments and will not have
significant Tribal implications.
Regulatory Flexibility Act
FCIC certifies that this regulation will not have a significant
economic impact on a substantial number of small entities. Program
requirements for the Federal crop insurance program are the same for
all producers regardless of the size of their farming operation.
However, FCIC does waive certain administrative fees for limited
resource farmers to help ensure that small entities are given the same
opportunities as large entities to obtain crop insurance. This
regulation provides the rules regarding ineligibility for crop
insurance under the Act based on actions or inactions of the producer,
such as violations of the Controlled Substance Act, debarment from
Federal Government programs, and failure to pay premiums and
administrative fees when due. As such, all producers are treated
equally under this regulation. A Regulatory Flexibility Analysis has
not been prepared since this regulation does not have an unduly
burdening 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 proposed 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.
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
FCIC proposes to revise 7 CFR part 400 by revising subpart U--
Ineligibility for Programs Under the Federal Crop Insurance Act to
eliminate redundancies, improve clarity, remove or update obsolete
references, and simplify the regulations regarding ineligibility for
Federal crop insurance. The rule will also reflect the provisions of
the Controlled Substances Act and the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996. The Controlled Substance Act
provides that persons convicted of possession or trafficking of
controlled substances are ineligible for certain Federal benefits,
including crop insurance. The Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 provides that persons who are
not a United States citizen, United States non-citizen national, or a
qualified alien are ineligible for certain Federal benefits, including
crop insurance.
The proposed rule also incorporates the provisions formally
contained in 7 CFR part 400, subpart F into subpart U for efficiency
and ease of use. Accordingly, subpart F will be removed and reserved.
Last, 7 CFR part 400, subpart C was promulgated in 1992 to allow
certain crop insurance policies to be cancelled when producers applied
for crop insurance believing they were required to obtain such crop
insurance in order to participate in certain Commodity Credit
Corporation disaster payment programs, but subsequently determined that
such crop insurance was not a prerequisite. Amendments to the Federal
Crop Insurance Act and the authorization and implementation of the
Noninsured Crop Assistance Program have made the provisions of subpart
C obsolete. Accordingly, this rule will remove and reserve subpart C.
The provisions will be effective for the 2013 and succeeding crop
years.
List of Subjects in 7 CFR Part 400
Administrative practice and procedure, Crop insurance, Reporting
and recordkeeping requirements.
Accordingly, as set forth in the preamble, the Federal Crop
Insurance Corporation proposes to amend 7 CFR part 400 as follows:
PART 400--GENERAL ADMINISTRATIVE REGULATIONS
1. The authority citation for 7 CFR part 400 continues to read as
follows:
Authority: 7 U.S.C. 1506(1), 1506(o).
Subpart C--[Removed and Reserved]
2. Remove and Reserve subpart C, General Administrative
Regulations; Mutual Consent Cancellation.
Subpart F--[Removed and Reserved]
3. Remove and Reserve subpart F, Food Security Act of 1985,
Implementation; Denial of Benefits.
4. Revise subpart U, Ineligibility for Programs under the Federal
Crop Insurance Act, to read as follows:
Subpart U--Ineligibility for Programs Under the Federal Crop
Insurance Act
400.675 Purpose.
400.676 [Reserved]
400.677 Definitions.
400.678 Applicability.
400.679 Criteria for ineligibility.
400.680 Controlled substance.
400.681 Written payment agreement.
400.682 Determination and notification.
400.683 Period of ineligibility.
400.684 Effect of ineligibility.
400.685 Criteria for regaining eligibility.
400.686 Administration and maintenance.
Sec. 400.675 Purpose.
This rule prescribes conditions under which a person may be
determined to be ineligible to participate in any program administered
under the authority of the Federal Crop Insurance Act. This rule also
establishes the criteria for regaining eligibility.
Sec. 400.676 [Reserved]
Sec. 400.677 Definitions.
Act means the Federal Crop Insurance Act (7 U.S.C. 1501-1524).
Applicant means a person who has submitted an application for crop
insurance coverage under the Act.
Approved Insurance Provider (AIP) means a legal entity which has
entered into a Standard Reinsurance Agreement with FCIC for the
applicable reinsurance year.
Authorized person means any current or past officer, employee,
elected official, managing general agent, agent,
[[Page 75802]]
or contractor of an AIP, FCIC, or any other government agency whose
duties require access to the ITS to administer the Act.
Controlled substance has the same meaning provided in 7 CFR
3021.610.
Conviction means (1) a judgment or any other determination of guilt
of a criminal offense by any court of competent jurisdiction, whether
entered upon a verdict or plea, including a plea of nolo contendere; or
(2) any other resolution that is the functional equivalent of a
judgment, including probation before judgment and deferred prosecution.
A disposition without the participation of the court is the functional
equivalent of a judgment only if it includes an admission of guilt.
Date of delinquency means (1) the termination date specified in the
applicable policy for administrative fees and premiums owed for
insurance issued under the authority of the Act, and any interest and
penalties on those amounts, if applicable; (2) the due date specified
in the notice to the person of the amount due for any other amounts due
the AIP or FCIC for insurance issued under the authority of the Act,
including but not limited to, indemnities, prevented planting payments,
or replant payments found not to have been earned or that were
overpaid, and any interest, administrative fees, and penalties on such
amounts, if applicable. Payments postmarked or received before the date
of delinquency by the AIP or its agent for debts owed to the AIP, or by
FCIC for debts owed to FCIC, are not delinquent.
Debt means an amount of money that has been determined to be owed
by any person to FCIC or an AIP, excluding money owed to an AIP's
agent, under any program administered under the Act. The debt may have
arisen from nonpayment of interest, penalties, premium, or
administrative fee; overpayment of indemnity, prevented planting or
replant payment; cost of collection; or other causes. A debt does not
include debts discharged in bankruptcy or other debts which are legally
barred from collection.
Debtor means a person who owes a debt and that debt is delinquent.
Delinquent debt means a debt that is not satisfied on or before the
date of delinquency. To avoid delinquency, a debtor may enter into a
written payment agreement acceptable to the AIP or FCIC to pay any such
debt as long as all payments are made by the due dates specified in
such written payment agreement. A delinquent debt does not include
debts discharged in bankruptcy, other debts which are legally barred
from collection, or any debt to an AIP's agent.
Employer Identification Number (EIN) means a Tax Identification
Number issued by the Internal Revenue Service used to identify a
business entity, and may also be referred to as a Federal Tax
Identification Number.
Excluded Parties List System (EPLS) means a list maintained by the
General Services Administration that provides a source of current
information about persons who are excluded or disqualified from covered
transactions, including the date the person was determined ineligible
and the date the period of ineligibility ends.
Federal Crop Insurance Corporation (FCIC) means a wholly owned
government corporation within the USDA.
Ineligible person means a person who is denied participation in any
program administered under the authority of the Act.
Ineligible Tracking System (ITS) means an electronic system to
identify persons who are ineligible to participate in any program
pursuant to this subpart.
Meaningful opportunity to contest means the opportunity for the
insured to resolve disagreements with a decision by the AIP through
requesting a review of the decision by the AIP, mediation, arbitration,
and judicial review, as applicable.
Person means an individual, partnership, association, corporation,
estate, trust, or other legal entity, and wherever applicable, a State,
political subdivision, or an agency of a State. ``Person'' does not
include the United States Government or any agency thereof.
Qualified alien has the same meaning provided in the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996 (8
U.S.C. 1641).
Reinsurance year means the period beginning July 1 and ending on
June 30 of the following year and, for reference purposes, identified
by reference to the year containing June.
Settlement means a signed written payment agreement between a
debtor and FCIC or the AIP to resolve a dispute arising from a debt or
other administrative determination.
Social Security Number (SSN) means an individual's Social Security
Number as issued under the authority of the Social Security Act.
Standard Reinsurance Agreement (SRA) means a cooperative financial
assistance agreement between FCIC and an AIP to deliver eligible crop
insurance contracts under the authority of the Act and establishes the
terms and conditions under which FCIC will provide subsidy and
reinsurance on eligible crop insurance policies sold.
Substantial beneficial interest has the same meaning as contained
in the applicable policy.
USDA means the United States Department of Agriculture.
United States non-citizen national has the same meaning provided in
the Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (8 U.S.C. 1408).
Written payment agreement means a written document between a debtor
and the AIP or FCIC that is signed and dated by all applicable parties
to satisfy financial obligations of the debtor with scheduled
installment payments under conditions that modify the terms of the
original debt in accordance with Sec. 400.681.
Sec. 400.678 Applicability.
This subpart applies to any program administered under the
authority of the Act, including but not limited to:
(a) The catastrophic risk protection plan of insurance;
(b) The additional coverage plans of insurance as authorized under
section 508(c) of the Act;
(c) Private insurance products authorized under section 508(h) or
523(d) of the Act and reinsured by FCIC; and
(d) Persons entering contracts or cooperative agreements under
sections 506(l), 522(c), 522(d), or 524(a) of the Act.
Sec. 400.679 Criteria for ineligibility.
Except as otherwise provided, a person is ineligible to participate
in any program administered under the authority of the Act if the
person meets one or more of the following criteria:
(a) Has a delinquent debt.
(1) The existence and delinquency of the debt must be verifiable.
(2) The person has to be provided a meaningful opportunity to
contest the debt.
(3) If the person contests the debt, such action does not delay or
preclude:
(i) Determination or notification of ineligibility in accordance
with Sec. 400.682;
(ii) Effect of the determination of ineligibility;
(iii) Termination of the applicable crop insurance policies; or
(iv) Ineligible persons being reported in accordance with Sec.
400.682 or the ineligible persons being recorded in the ITS.
(4) If the person is determined not to owe the debt, eligibility is
reinstated retroactive to the date of the determination of
ineligibility, any
[[Page 75803]]
applicable policies will be reinstated, and any applicable indemnity,
prevented planting or replant payment earned may be paid provided the
person has continued to comply with the terms of the policy.
(b) Has been convicted of a controlled substance violation
according to Sec. 400.680;
(c) Has been disqualified under section 515(h) of the Act or has
been debarred or suspended under 7 CFR part 400 subpart R, or 7 CFR
part 3017, or a successor regulation. Ineligibility determinations will
not be stayed pending review. However, reversal of the determination of
ineligibility will reinstate eligibility retroactive to the date of the
determination of ineligibility, and any policies will be reinstated.
(d) Is not a United States citizen, United States non-citizen
national, or a qualified alien. Such persons may not be recorded in the
ITS; however, such persons are ineligible under the provisions of the
Personal Responsibility and Work Opportunity Reconciliation Act of
1996, 8 U.S.C. 1611;
(e) Has been convicted of a felony for knowingly defrauding the
United States in connection with any program administered by USDA; or
(f) Knowingly doing business with an ineligible person in
accordance with 7 CFR part 3017.
Sec. 400.680 Controlled substance.
(a) This section implements section 1764 of the Food Security Act
of 1985 (Pub. L. 99-198) and Chapter 13 of Title 21 requiring the
denial of Federal Benefits, including crop insurance, to persons
convicted of controlled substance violations in accordance with
subsection (b).
(b) Notwithstanding any other provision of law, a person will be
ineligible to participate in any program authorized under the Act, as
provided in Sec. 400.683, if the person is convicted under Federal or
State law of:
(1) Planting, cultivating, growing, producing, harvesting, or
storing a controlled substance in any crop year; or
(2) Possession of or trafficking in a controlled substance.
Sec. 400.681 Written payment agreement.
(a) Written payment agreements shall:
(1) Require scheduled installment payments that will allow for full
repayment of the debt within the time frame allotted in paragraph (2);
(2) Not exceed two years in duration; and
(3) Not be modified, replaced, or consolidated after it has been
executed in accordance with subsections (b).
(b) To avoid being determined to be ineligible through the
execution of a written payment agreement:
(1) For a debt arising from any unpaid premium, administrative
fees, or catastrophic risk protection fees:
(i) Only one written payment agreement is permitted per termination
date. A written payment agreement may cover multiple crops provided
they all have the same termination date; and
(ii) The written payment agreement must be signed by both parties,
the debtor and the AIP or FCIC, as applicable, on or before the
termination date specified in the applicable policy to prevent an
ineligible determination for a delinquent debt.
(2) For all other debts, the written payment agreement must be
signed by both parties, the debtor and the AIP or FCIC, as applicable,
on or before the due date specified in the notice to the person of the
amount due to prevent an ineligible determination for a delinquent
debt.
Sec. 400.682 Determination and notification.
(a) The AIP must send a written notice of the debt to the person,
including the time frame in which the debt must be paid, and provide
the person with a meaningful opportunity to contest the amount or
existence of the debt.
(1) The AIP shall evaluate the person's response, if any, and
determine if the debt is owed and delinquent.
(2) Upon request by FCIC, the AIP shall submit all documentation
related to the debt to FCIC.
(b) If an AIP or any other person has evidence that a person meets
any criteria set forth in Sec. 400.679, they must immediately notify
FCIC.
(c) After the AIP determines a person has met one or more of the
criteria in Sec. 400.679 and notifies FCIC, FCIC will issue and mail a
Notice of Ineligibility to the person's last known address and to the
AIP. Notices sent to such address will be conclusively presumed to have
been received by that person.
(d) The Notice of Ineligibility will state the criteria upon which
the determination of ineligibility has been based, a brief statement of
the facts to support the determination, the time period of
ineligibility, and the right to appeal the determination to be placed
on the ITS in accordance with subsection (e).
(e) Within 30 days of receiving the Notice of Ineligibility, the
ineligible person may appeal FCIC's determination to be placed on ITS
to the National Appeals Division in accordance with 7 CFR part 11. The
existence and amount of the debt is determined by the AIP, not FCIC;
therefore, those determinations are not appealable to the National
Appeals Division.
(f) If the person appeals FCIC's determination to be placed on ITS
to the National Appeals Division, the AIP will be notified and provided
with an opportunity to participate in the proceeding, if permitted by 7
CFR part 11.
Sec. 400.683 Period of ineligibility.
(a) The beginning of the period of ineligibility will be:
(1) For ineligibility as a result of a delinquent debt, beginning
on the date stated in the applicable policy;
(2) For ineligibility as a result of a conviction of the controlled
substance provisions, the beginning of the crop year in which the
person is convicted;
(3) For ineligibility as a result of a disqualification, debarment,
or suspension, the date the person was disqualified, debarred, or
suspended by debarring official, Administrative Law Judge, or such
other person authorized to take such action; and
(4) For ineligibility as a result of a felony conviction for
knowingly defrauding the United States in connection with any program
administered by USDA, the crop year in which the person is convicted.
(b) The duration of the period of ineligibility will be:
(1) For ineligibility as a result of a delinquent debt, until the
debt has been paid in full, discharged in bankruptcy, or the person has
executed a written payment agreement.
(2) For ineligibility as a result of a conviction of:
(i) Planting, cultivating, growing, producing, harvesting, or
storing a controlled substance, for four crop years succeeding the crop
year in which the person was convicted; and
(ii) Possession of a controlled substance or trafficking in a
controlled substance, in addition to the time imposed in subparagraph
(i), until the period of time imposed by a court has expired.
(3) For ineligibility as a result of a disqualification, debarment,
or suspension until the period of time of disqualification, debarment,
or suspension, as applicable, has expired.
(4) For ineligibility as a result of not being a United States
citizen, United States non-citizen national, or a qualified alien,
until the date such person becomes a United States citizen, United
States non-citizen national, or a qualified alien.
[[Page 75804]]
(5) For ineligibility as a result of a felony conviction for
knowingly defrauding the United States in connection with any program
administered by USDA, permanent unless otherwise determined by the
Secretary of Agriculture for a period of not less than 10 years.
Sec. 400.684 Effect of ineligibility.
(a) The effect of ineligibility depends on the basis for the
determination.
(1) Persons who are ineligible as a result of a delinquent debt are
ineligible for crop insurance authorized under the Act for a certain
time period in accordance with Sec. 400.683.
(2) Persons who are ineligible as a result of a suspension or
debarment are precluded from:
(i) Participating in all programs authorized under the Act,
including but not limited to:
(A) Obtaining crop insurance;
(B) Acting as an agent, loss adjuster, insurance provider, or other
affiliate, as defined in the Standard Reinsurance Agreement;
(C) Entering into any contracts with FCIC under sections 506(l) and
section 522(c) of the Act; and
(D) Entering into any cooperative agreements or partnerships under
sections 506(l), 522(d) and 524(a) of the Act; and
(ii) Participating in any other covered transaction as specified in
7 CFR part 3017, or a successor regulation.
(3) Persons who are ineligible because of disqualification under
section 515(h) of the Act are precluded from participating in all
programs authorized under the Act, indicated in paragraph (2)(i), and
those listed in section 515(h)(3)(B) and (C) of the Act.
(4) Persons who are ineligible because of violation of the
controlled substance provisions or are not a United States citizen,
United States non-citizen national, or a qualified alien are precluded
from participating in any program authorized under the Act indicated in
paragraph (2)(i).
(5) Persons who are ineligible as a result of a felony conviction
for knowingly defrauding the United States in connection with any
program administered by USDA, are precluded from participating in any
program offered by USDA.
(b) Once a person has been determined to be ineligible:
(1) The person will be placed on the ITS and may be reported to
other government agencies.
(2) If the ineligible person is an individual:
(i) All crop insurance policies in which the ineligible person is
the sole insured will terminate and the person will remain ineligible
for crop insurance for the applicable period specified in Sec.
400.683.
(ii) The ineligible person must be reported on all policies in
which the ineligible person has a substantial beneficial interest in
the applicant or insured, and the insured share under such policy will
be reduced commensurate with the ineligible person's substantial
beneficial interest in the applicant or insured for as long as the
ineligible person remains ineligible in accordance with Sec. 400.683.
(iii) All crop insurance policies in which the ineligible person is
insured as landlord/tenant will terminate on the next termination date.
The other person(s) on such policy may submit a new application for
crop insurance coverage on or before the applicable sales closing date
to obtain insurance coverage for the crop, if they are otherwise
eligible for such coverage.
(3) If the ineligible person is a general or limited liability
partnership and is ineligible as a result of a delinquent debt, all
partners of the ineligible general or limited liability partnership
will be ineligible.
(i) All crop insurance policies in which the ineligible partnership
or an ineligible partner of the partnership is the sole insured will
terminate, and the ineligible partnership and all partners of the
partnership will remain ineligible for crop insurance for the
applicable period specified in Sec. 400.683.
(ii) The ineligible partnership and all ineligible partners in the
partnership must be reported on any other policy in which they have a
substantial beneficial interest in the applicant or insured, and the
insured share under such policies will be reduced commensurate with the
ineligible partnership or partners' substantial beneficial interest in
the applicant or insured for as long as the partnership or partners
remain ineligible in accordance with Sec. 400.683.
(4) If the ineligible person is a joint venture and is ineligible
as a result of a delinquent debt, all members of the joint venture will
be ineligible.
(i) All policies in which the joint venture or a member of the
joint venture is the sole insured will terminate and the joint venture
and all members of the joint venture will remain ineligible for crop
insurance for the applicable period specified in Sec. 400.683.
(ii) The joint venture and all members of the joint venture must be
reported on any other policy in which they have a substantial
beneficial interest in the applicant or insured, and the insured share
under such policies will be reduced commensurate with the ineligible
person's substantial beneficial interest in the applicant or insured
for as long as the joint venture or members remain ineligible in
accordance with Sec. 400.683.
(5) If the ineligible person is an association, estate, trust,
corporation, limited liability company, limited partnership, or other
similar entity, and is ineligible as a result of a delinquent debt, any
partners, members, shareholders, administrators, executors, trustees,
or grantors may be individually ineligible if the delinquent debt
occurred as a result of their actions or inactions, as determined by
the AIP or FCIC.
(i) If determined ineligible, all policies in which such person is
the sole insured will terminate, and the person will remain ineligible
for crop insurance for the applicable period specified in Sec.
400.683.
(ii) The ineligible person must be reported on any other policy in
which they have a substantial beneficial interest in the applicant or
insured, and the insured share under such policies will be reduced
commensurate with the ineligible person's substantial beneficial
interest in the applicant or insured for as long as the person remains
ineligible in accordance with Sec. 400.683.
(6) If an applicant or insured is a corporation, partnership, joint
venture, trust, corporation, limited liability company, limited
partnership, or other similar entity that was created to conceal the
interest of an ineligible person or to evade the ineligibility
determination of a person with a substantial beneficial interest in the
applicant or insured, the policy will be void.
(b) The spouse and minor child of an individual insured is
considered to be the same as the individual for purposes of this
subpart and subject to the same ineligibility except when:
(1) The individual is ineligible due to a conviction of a
controlled substance violation in accordance with Sec. 400.680;
(2) The individual is ineligible as a result of a felony conviction
for knowingly defrauding the United States in connection with any
program administered by USDA;
(3) The individual is ineligible because they are not a United
States citizen, United States non-citizen national, or a qualified
alien;
(4) The individual is ineligible as a result of a disqualification,
debarment, or suspension;
(5) The spouse can prove they are legally separated or otherwise
legally separate under the applicable State dissolution of marriage
laws; or
[[Page 75805]]
(6) The minor child has a separate legal interest in such person or
is engaged in a separate farming operation from the individual.
(c) When a policy is terminated in accordance with this subpart:
(1) No indemnities or payments will be paid for the crop year in
which the policy was terminated; and
(2) Any indemnities or payments already made for the crop year in
which the policy was terminated will be declared overpayments and must
be repaid in full.
(d) When the insured share of a policy is reduced in accordance
with this subpart:
(1) Any indemnities or payments commensurate with the share reduced
already made for the crop year in which the reduction occurred will be
declared overpayments and must be repaid in full; and
(2) Any premiums paid by the insured commensurate with the share
reduced will be refunded.
(e) Any insurance written by an AIP to any person who is ineligible
under the provisions of this subpart is not eligible for reinsurance by
FCIC. All premium subsidies, expenses, or other payments made by FCIC
for insurance written for any person who is ineligible under the
provisions of this subpart must be immediately refunded to FCIC.
Sec. 400.685 Criteria for regaining eligibility.
After the period of ineligibility as specified in Sec. 400.683 has
ended, the ineligible person is eligible to participate in programs
authorized under the Act, provided the person meets all eligibility
requirements.
(a) After a person regains eligibility for crop insurance, if their
policy was terminated the person must submit a new application for crop
insurance coverage on or before the applicable sales closing date to
obtain insurance coverage for the crop. If the date of regaining
eligibility occurs after the applicable sales closing date for the crop
year, the person may not participate until the following crop year
unless that crop policy allows for applications to be accepted after
the sales closing date.
(b) If a person who was determined ineligible according to this
subpart is subsequently determined to be an eligible person for crop
insurance through mediation, arbitration, appeal, or judicial review,
such person's policies will be reinstated effective at the beginning of
the crop year for which the producer was determined ineligible, and
such person will be entitled to all applicable benefits under such
policies, provided the person meets all eligibility requirements and
complies with the terms of the policy.
Sec. 400.686 Administration and maintenance.
(a) Ineligible producer data will be maintained in a system of
records established and maintained by the Risk Management Agency in
accordance with the Privacy Act (5 U.S.C. 552a).
(1) The ITS contains identifying information of the ineligible
person, including but not limited to, name, address, telephone number,
SSN or EIN, reason for ineligibility, and time period of ineligibility.
(2) Information in the ITS may be used by an authorized person. The
information may be furnished to other users as may be appropriate or
required by law or regulation, including but not limited to, FCIC
contracted agencies, other government agencies, credit reporting
agencies, and collection agencies, and in response to judicial orders
in the course of litigation. The individual information may be made
available in the form of various reports and notices.
(3) Supporting documentation regarding the determination of
ineligibility and reinstatement or regaining of eligibility will be
maintained by FCIC, or its contractors, AIPs, Federal agencies, and
State agencies. This documentation will be maintained and retained
consistent with the electronic information contained within the ITS.
(b) Information may be entered into the ITS by FCIC employees or
contractors, or AIPs.
(c) All persons applying for crop insurance policies or with crop
insurance policies continuing from a previous crop year, issued or
reinsured by FCIC, will be subject to validation of their eligibility
status against the ITS. Applications, transfers, or benefits approved
and accepted are considered approved or accepted subject to review of
eligibility status in accordance with this subpart.
(d) AIPs, partners, cooperators, and contracts must check to ensure
that the persons with whom they are doing business are eligible to
participate in the programs authorized under the Act. The ITS does not
include all persons ineligible to receive government benefits, such as
persons debarred, disqualified or suspended from receiving government
benefits by an agency other than FCIC. Other sources, including but not
limited to EPLS, provide data on persons ineligible to participate in
programs authorized under the Act.
Signed in Washington, DC, on November 22, 2011.
William J. Murphy,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2011-31085 Filed 12-2-11; 8:45 am]
BILLING CODE 3410-08-P
