General Administrative Regulations; Subpart X-Interpretations of Statutory Provisions, Policy Provisions, and Procedures, 14030-14033 [2015-06224]

Agencies

• DEPARTMENT OF AGRICULTURE
• Federal Crop Insurance Corporation

[Federal Register Volume 80, Number 52 (Wednesday, March 18, 2015)]
[Proposed Rules]
[Pages 14030-14033]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-06224]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 80, No. 52 / Wednesday, March 18, 2015 / 
Proposed Rules

[[Page 14030]]



DEPARTMENT OF AGRICULTURE

Federal Crop Insurance Corporation

7 CFR Part 400

[Docket No. FCIC-14-0001]
RIN 0563-AC45


General Administrative Regulations; Subpart X--Interpretations of 
Statutory Provisions, Policy Provisions, and Procedures

AGENCY: Federal Crop Insurance Corporation, USDA.

ACTION: Proposed rule.

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SUMMARY: The Federal Crop Insurance Corporation (FCIC) proposes to 
revise the General and Administrative Regulation Subpart X--
Interpretations of Statutory and Regulatory Provisions, to incorporate 
interpretations of procedures previously issued and administered in 
accordance with Manager's Bulletin MGR-05-018 and to provide a 
mechanism for interpretations of policy provisions that are not 
codified in the Code of Federal Regulations. The intended effect of 
this action is to provide requestors with information on how to request 
a final agency determination or an interpretation of FCIC procedures 
within one administrative regulation, bring consistency and clarity to 
the processes used, and to clarify existing provisions.

DATES: Written comments and opinions on this proposed rule will be 
accepted until close of business April 17, 2015 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-14-0001, 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 RMA Web 
Content Team at (816) 823-4694 or by email at 
rmaweb.content@rma.usda.gov.
    Privacy Act: Anyone is able to search the electronic form of all 
comments received for any dockets by the name of the person 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: Product Management, Product 
Administration and Standards Division, Risk Management Agency, United 
States Department of Agriculture, Beacon Facility, Stop 0812, Room 421, 
PO Box 419205, Kansas City, MO 64141-6205, telephone (816) 926- 7730.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

    This rule has been determined to be not significant for the 
purposes of Executive Order 12866 and, therefore, it has not been 
reviewed by the 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 the Office of Management and Budget (OMB) under 
control number 0563-0055.

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), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. This rule contains no Federal 
mandates (under the regulatory provisions of title II of the UMRA) for 
State, local, and tribal governments or the private sector. Therefore, 
this rule is not subject to the requirements of sections 202 and 205 of 
UMRA.

Executive Order 13132

    It has been determined under section 1(a) of Executive Order 13132, 
Federalism, that this rule does not have sufficient implications to 
warrant consultation with the States. The provisions contained in this 
rule will not have a substantial direct effect on States, or on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.

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. The 
regulation does not require any more action on the part of the small 
entities than is required on the part of large entities. A Regulatory 
Flexibility Analysis has not been prepared since

[[Page 14031]]

this regulation does not have an impact on small entities, and, 
therefore, this regulation is exempt from the provisions of the 
Regulatory Flexibility Act (5 U.S.C. 605).

Federal Assistance Program

    This program is listed in the Catalog of Federal Domestic 
Assistance under No. 10.450.

Executive Order 12372

    This program is not subject to the provisions of Executive Order 
12372, which require intergovernmental consultation with State and 
local officials. See the Notice related to 7 CFR part 3015, subpart V, 
published at 48 FR 29115, June 24, 1983.

Executive Order 12988

    This 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. Interpretations of statutory and regulatory 
provisions are matters of general applicability and, therefore, no 
administrative appeals process is available and judicial review may 
only be brought to challenge the interpretation after seeking a 
determination of appealability by the Director of the National Appeals 
Division in accordance with 7 CFR part 11. Interpretations of procedure 
or policy provisions not codified in the Code of Federal Regulations 
are administratively appealable and the appeal provisions published at 
7 CFR part 11 must be exhausted before any action for judicial review 
may be brought against FCIC.

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 the General and Administrative Regulations 
Subpart X--Interpretations of Statutory and Regulatory Provisions to 
provide requestors with information on how to request a final agency 
determination and an interpretation of procedures or policy provisions 
not codified in the Code of Federal Regulations within one 
administrative regulation. There are provisions in policies not 
codified in the Code of Federal Regulations that are identical to those 
in the Common Crop Insurance Basic Provisions (Basic Provisions) or 
Crop Provisions codified in the Code of Federal Regulations. In such 
instances, the requestor sought an interpretation of the applicable 
provision in the Basic Provisions and that interpretation was 
applicable to all policies that contained an identical provision. 
Nothing in this rule changes this process. However, there are numerous 
policies with provisions that are not codified in the Code of Federal 
Regulations in any policy. For these policy provisions, this rule 
provides a mechanism to obtain an interpretation of such provision.
    The rule will also clarify existing provisions, eliminate 
redundancies, remove or update obsolete references, simplify the 
regulation to address final agency determinations and interpretations 
of procedures or policy provisions not codified in the Code of Federal 
Regulations in the same regulation, simplify program administration, 
and improve clarity of the requestor and FCIC obligations. The proposed 
rule also incorporates the information formerly contained in Manager's 
Bulletin MGR-05-018 into subpart X for efficiency and ease of use. 
Manager's Bulletin MGR-05-018 currently provides criteria for 
requesting an interpretation of procedures when a requestor seeks an 
interpretation of the meaning or applicability of procedure used in 
administering the Federal crop insurance program. Accordingly, 
Manager's Bulletin MGR-05-018 will no longer be used upon issuance of 
the final rule to this proposed rule.
    The proposed rule amends the language to be consistent where 
possible and revises the regulation in plain language for ease of 
readability by the requestor.

List of Subjects in 7 CFR Part 400

    Administrative practice and procedure, crop insurance, reporting 
and recordkeeping requirements.

Proposed Rule

    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

0
1. The authority citation for 7 CFR part 400 continues to read as 
follows:

    Authority:  7 U.S.C. 1506(1), 1506(o).

0
2. Revise Sec.  Subpart X as follows:

Subpart X--Interpretations of Statutory Provisions, Policy 
Provisions, and Procedures

Sec.
400.765 Definitions.
400.766 Basis and Applicability.
400.767 Requestor Obligations.
400.768 FCIC Obligations.


Sec.  400.765  Definitions.

    Act. The Federal Crop Insurance Act, 7 U.S.C. 1501-1524.
    FCIC. The Federal Crop Insurance Corporation, a wholly owned 
government corporation within the United States Department of 
Agriculture.
    Final Agency Determination. An interpretation of provisions of the 
Act, regulations, or any policy provision that is codified in the 
Federal Register.
    Participant. Any applicant for Federal crop insurance, an insured, 
or a private insurance company with a reinsurance agreement with FCIC 
or their agent, loss adjuster, employee or contractor.
    Policy. The agreement to insure an agricultural commodity reinsured 
by FCIC under the provisions of the Federal Crop Insurance Act which 
consists of the accepted application, the applicable Basic Provisions, 
the Crop Provisions, the Special Provisions, the Commodity Exchange 
Price Provisions, if applicable, other amendments, endorsements, or 
options, the actuarial documents for the insured agricultural 
commodity, the Catastrophic Risk Protection Endorsement, if applicable, 
and the applicable regulations published in 7 CFR chapter IV.
    Procedure. All FCIC issued handbooks, manuals, memoranda, and 
bulletins for any crop insurance policy reinsured by FCIC.
    RMA. The Risk Management Agency, an agency of the United States 
Department of Agriculture.
    You. The requestor of a final agency determination or 
interpretation of procedure or policy provision not codified in the 
Code of Federal Regulations.


Sec.  400.766  Basis and Applicability.

    (a) The regulations contained in this subpart prescribe the rules 
and criteria for obtaining a final agency determination or an 
interpretation of a procedure or policy provision not codified in the 
Code of Federal Regulations.
    (1) FCIC will provide a final agency determination or an 
interpretation of procedure or policy provision not codified in the 
Code of Federal Regulations, as applicable, for policy provisions or 
procedures that were in effect during the four most recent

[[Page 14032]]

calendar years from the calendar year in which your request was 
submitted. For example, for a request received in the 2014 calendar 
year, FCIC will consider requests for the 2014, 2013, 2012, and 2011.
    (2) If FCIC determines a request is outside the scope of crop years 
authorized in paragraph (a)(1) of this section, you will be notified 
within 30 days of the date of receipt by FCIC.
    (3) If the policy provisions or procedures have changed for the 
time period you seek an interpretation you must submit a separate 
request for each policy provision or procedure by year. For example, if 
you seek an interpretation of section 6(b) of the Small Grains Crop 
Provisions for the 2012 through 2015 crop years but the policy 
provisions were revised starting with the 2014 crop year. You must 
submit two requests, one for the 2012 and 2013 crop years and another 
for the 2014 and 2015 crop years.
    (b) With respect to a Final Agency Determination:
    (1) All final agency determinations issued by FCIC are binding on 
all participants in the Federal crop insurance program for the crop 
years the policy provisions are in effect. Unless appealed in 
accordance with paragraph (2), failure of the National Appeals 
Division, arbitrator, or mediator to adhere to the final agency 
determination provided under this subpart will result in the 
nullification of any award or agreement in arbitration or mediation.
    (2) All final agency determinations are considered matters of 
generally applicable and are not appealable to the National Appeals 
Division.
    (i) Before obtaining judicial review of any final agency 
determination, you must obtain an administrative final determination 
from the Director of the National Appeals Division on the issue of 
whether the final agency determination is a matter of general 
applicability.
    (ii) Any appeal of a final agency determination must be in 
accordance with 7 CFR 400.766(c)(4).
    (c) With respect to an interpretation of procedure or policy 
provision not codified in the Code of Federal Regulations:
    (1) If either you or any other does not agree with the written 
interpretation of procedure or policy provision not codified in the 
Code of Federal Regulations provided by FCIC, a request for 
administrative review may be filed in accordance with 7 CFR, part 400, 
subpart J. If you seek an administrative review from FCIC, such request 
must be submitted in in accordance with Sec.  400.767(a).
    (2) FCIC will not accept requests for administrative review from 
the National Appeals Division, a mediator or arbitrator.
    (3) The RMA Office of the Deputy Administrator for Product 
Management will make a determination on the request for administrative 
review not later than 30 days after receipt of the request.
    (4) Regardless of whether you have sought administrative review, 
you may appeal an interpretation of procedure made by FCIC to the 
National Appeals Division in accordance with 7 CFR part 11.


Sec.  400.767  Requestor Obligations.

    (a) All requests for a final agency determination or an 
interpretation of procedure or policy provision not codified in the 
Code of Federal Regulations submitted under this subpart must:
    (1) Be submitted to the Deputy Administrator using the format 
provided on RMA's Web site at https://www.rma.usda.gov/regs/533/section533.html through one of the following methods:
    (i) In writing by certified mail or overnight delivery, to the 
Deputy Administrator, Risk Management Agency, United States Department 
of Agriculture, Beacon Facility, Stop 0801, Room 421, P.O. Box 419205, 
Kansas City, MO 64141-6205;
    (ii) By facsimile at (816) 926-1803; or
    (iii) By electronic mail at subpartx@rma.usda.gov;
    (2) State whether you are seeking a final agency determination or 
an interpretation of procedure or policy provision not codified in the 
Code of Federal Regulations;
    (3) Identify and quote the specific provision in the Act, 
regulations, procedure, or policy provision for which you are 
requesting a final agency determination or an interpretation of 
procedure or policy provision not codified in the Code of Federal 
Regulations;
    (4) Contain no more than one request for an interpretation (You 
must make separate requests for each provision if more than one 
provision is at issue. For example, if there is a dispute with the 
interpretation of section 3 of the Loss Adjustment Manual, then one 
request for an interpretation is required. If there is a dispute with 
the interpretation of section 3 of the Loss Adjustment Manual and 
section 2 of the Macadamia Nut Loss Adjustment Standards Handbook, then 
two separate requests for an interpretation are required);
    (5) State the crop, crop year(s), and plan of insurance applicable 
to the request;
    (6) State the name, address, and telephone number of a contact 
person for the request; and
    (7) Contain your detailed interpretation of the specific provision 
of the Act, regulations, procedure, or policy provision for which the 
request for interpretation is being requested.
    (b) You may request a final agency determination or an 
interpretation of procedure or policy provision not codified in the 
Code of Federal Regulations, as applicable, only if you have legally 
filed or formally initiated a judicial review, mediation, or 
arbitration.
    (1) You must identify the type of proceeding (e.g. mediation, 
arbitration, or litigation) in which the interpretation will be used, 
and the date the proceeding is scheduled to begin, or the earliest 
possible date the proceeding would likely begin if a specific date has 
not been established;
    (2) The name, address, telephone number, and if applicable, fax 
number, or email address of a contact person for both parties to the 
proceeding;
    (3) Requests must be submitted not later than 90 days before the 
date the mediation, arbitration or litigation proceeding in which the 
interpretation will be used is scheduled to begin.
    (i) If the rules of the court, mediation, or arbitration require 
the interpretation prior to the date the proceeding begins, add 90 days 
to the number of days required prior to the proceeding. For example, if 
a court requires the interpretation 20 days prior to the date the 
proceeding begins, you must submit the request 110 days before the 
proceeding is scheduled to begin.
    (ii) Failure to timely submit a request for a final agency 
determination may result in:
    (A) FCIC issuing a determination that no interpretation could be 
made because the request was not timely submitted; and
    (B) Nullification of any agreement or award in accordance with the 
applicable Basic Provisions.
    (iii) If during the mediation, arbitration, or litigation 
proceeding, an issue arises that requires a final agency determination 
or an interpretation of procedure or policy provision not codified in 
the Code of Federal Regulations, the mediator, arbitrator, judge, or 
magistrate must promptly request a final agency determination or an 
interpretation of procedure or policy provision not codified in the 
Code of Federal Regulations in accordance with Sec.  400.767(a).

[[Page 14033]]

    (4) FCIC at its sole discretion may authorize personnel to provide 
an oral or written interpretation, as appropriate; and
    (5) Any decision or settlement resulting from such mediation, 
arbitration, or litigation proceeding before FCIC provides its 
interpretation may not be binding on the parties.
    (c) If multiple parties are involved and have opposing 
interpretations a joint request for a final agency determination or an 
interpretation of procedure or policy provision not codified in the 
Code of Federal Regulations including both requestor interpretations in 
one request is encouraged. If multiple insured persons are parties to 
the proceedings, and the request for a final agency determination or an 
interpretation of procedure or policy provision not codified in the 
Code of Federal Regulations applies to all parties, one request may be 
submitted for all insured persons instead of separate requests for each 
person. In this case, the information required in this section must be 
provided for each person.


Sec.  400.768  FCIC Obligations.

    (a) FCIC reserves the right to not provide a final agency 
determination or an interpretation of procedure or policy provision not 
codified in the Code of Federal Regulations for any request regarding, 
or that contains specific factual information to situations or cases, 
such as acts or failures to act of any participant under the terms of a 
policy, procedure, or any reinsurance agreement.
    (1) Regardless of whether or not FCIC accepts a request, FCIC will 
not consider specific factual information to situations or cases in any 
final agency determination.
    (2) FCIC will not consider any examples provided in your 
interpretation because those are fact specific and could be construed 
as a finding of fact by FCIC. If an example is required to illustrate 
an interpretation, FCIC will provide the example in the interpretation.
    (b) If, in the sole judgment of FCIC, the request is unclear, 
ambiguous, or incomplete, FCIC will not provide a final agency 
determination or an interpretation of procedure or policy provision not 
codified in the Code of Federal Regulations but notify you within 30 
days of the date of receipt by FCIC that the request is unclear, 
ambiguous, or incomplete.
    (c) If FCIC notifies you that a request is unclear, ambiguous or 
incomplete under Sec.  400.768(b), the 90 day time period for FCIC to 
provide a response is stopped on the date FCIC notifies you. On the 
date FCIC receives a clear, complete, and unambiguous request, FCIC has 
the balance of the days remaining in the 90 day period to provide a 
response to you. For example, FCIC receives a request for a final 
agency determination on January 10. On February 10, FCIC notifies you 
the request is unclear. On March 10, FCIC receives a clarified request 
that meets all requirements for FCIC to provide a final agency 
determination. FCIC has sixty days from March 10, the balance of the 90 
day period, to provide a response.
    (d) FCIC reserves the right to modify the request for a final 
agency determination into an interpretation of procedure or policy 
provision not codified in the Code of Federal Regulations as needed if 
the request pertains to procedures or uncodified policy provisions and 
contains the information required in Sec.  400.767.
    (e) FCIC will provide you a written final agency determination or 
an interpretation of procedure or policy provision not codified in the 
Code of Federal Regulations within 90 days of the date of receipt for a 
request that meets all requirements in Sec.  400.767.
    (f) If FCIC does not provide a response within 90 days of receipt 
of a request, you may assume your interpretation is correct for the 
applicable crop year. However, your interpretation shall not be 
considered generally applicable and shall not be binding on any other 
program participants. Additionally, in the case of a joint request for 
a final agency determination or an interpretation of procedure or 
policy provision not codified in the Code of Federal Regulations, if 
FCIC does not provide a response within 90 days, neither party may 
assume their interpretations are correct.
    (g) FCIC will publish all final agency determinations as specially 
numbered documents on the RMA Web site because they are generally 
applicable to all program participants.
    (h) FCIC will not publish any interpretation of procedure or policy 
provision not codified in the Code of Federal Regulations because they 
are only applicable to the parties in the dispute. You are responsible 
for providing copies of the interpretation of procedure or policy 
provision not codified in the Code of Federal Regulations to all other 
parties involved in the proceeding.
    (i) When issuing an interpretation, FCIC will not evaluate the 
insured, approved insurance provider, agent or loss adjuster as it 
relates to the performance of following FCIC policy provisions or 
procedures. Interpretations will not include any analysis of whether 
the insured, approved insurance provider, agent, or loss adjuster was 
in compliance with the policy provision or procedure in question.

    Signed in Washington, DC, on March 5, 2015.
Brandon Willis,
Manager, Federal Crop Insurance Corporation.
[FR Doc. 2015-06224 Filed 3-17-15; 8:45 am]
 BILLING CODE 3410-08-P