[Federal Register: December 31, 2003 (Volume 68, Number 250)]
[Rules and Regulations]
[Page 75453-75455]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31de03-24]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
Federal Emergency Management Agency
44 CFR Part 62
RIN 1660-AA29
National Flood Insurance Program (NFIP); Assistance to Private
Sector Property Insurers; Extension of Term of Arrangement
AGENCY: Federal Emergency Management Agency (FEMA). Emergency
Preparedness and Response Directorate, Department of Homeland Security.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: FEMA is changing the current Financial Assistance/Subsidy
Arrangement (the Arrangement) to extend its term of October 1, 2002,
through December 31, 2003, to a term of October 1, 2002, through May 1,
2004. The Arrangement defines the duties and responsibilities of
insurers that sell and service insurance under the Write Your Own (WYO)
program. It also identifies the responsibilities of the Government to
provide financial and technical assistance to these insurers.
DATES: Effective January 1, 2004. Comments on this interim final rule,
should be received on or before March 1, 2004.
ADDRESSES: Please send your comments to the Rules Docket Clerk, Office
of the General Counsel, Federal Emergency Management Agency, 500 C
Street, SW., Room 840, Washington, DC 20472, (facsimile) 202-646-4536,
or (e-mail) rules@fema.gov.
FOR FURTHER INFORMATION CONTACT: Edward L. Connor, FEMA, 500 C Street,
SW., Washington, DC 20472, 202-646-3429 (Phone), 202-646-3445
(facsimile), or Edward.Connor@dhs.gov (e-mail).
SUPPLEMENTARY INFORMATION: On August 9, 2002, FEMA published in the
Federal Register, 67 FR 51768, a final rule to revise the effective
date of the Arrangement to agree with the new Arrangement year
beginning October 1, 2002, and ending September 30, 2003.
FEMA had planned to make significant changes in the Arrangement
regarding litigation issues effective October 1, 2003. The proposed
rule for these changes was not published until October 14, 2003, 68 FR
59146. As an interim measure, an interim final rule was published
September 5, 2003, 68 FR 52700, extending the Arrangement term
beginning October 1, 2002, to December 31, 2003. No comments were
received
[[Page 75454]]
on that interim final rule. It was anticipated that comments on the
October 14, 2003, proposed rule could be reviewed and a final rule
published effective January 1, 2004. However, as the final rule for
these changes has not yet been published in the Federal Register, it is
not feasible to complete the rulemaking for an effective date of
January 1, 2004. WYO insurers need to receive an offer to enter into
the Arrangement each year well in advance of the beginning of the
Arrangement year. By extending the current Arrangement for an
additional four months, the revised Arrangement with the litigation
changes can be effective May 1, 2004, instead of postponing these
changes to October 1, 2004. WYO insurers can always elect to cease
participation in the WYO program at any time, so any insurer not
desiring to participate for the additional four months of this
extension may cease participation as of January 1, 2004.
Under this extension of the current Arrangement, the expense
allowance provided for in Article III.B of APPENDIX A TO PART 62--
FEDERAL EMERGENCY MANAGEMENT AGENCY, FEDERAL INSURANCE ADMINISTRATION,
FINANCIAL ASSISTANCE/SUBSIDY ARRANGEMENT will remain the same for the
additional four months as it is now, including the additional expense
allowance of up to two percentage points for meeting marketing goals.
This additional expense allowance will be based on the period October
1, 2002, through April 1, 2004.
National Environmental Policy Act
This interim final rule falls within the exclusion category 44 CFR
part 10.8(d)(2)(ii), which addresses the preparation, revision, and
adoption of regulations, directives, and other guidance documents
related to actions that qualify for categorical exclusions. Qualifying
for this exclusion and because no other extraordinary circumstances
have been identified, this interim final rule will not require the
preparation of either an environmental assessment or environmental
impact statement as defined by the National Environmental Policy Act.
Executive Order 12866, Regulatory Planning and Review
We have prepared and reviewed this rule under the provisions of
E.O. 12866, Regulatory Planning and Review. Under Executive Order
12866, 58 FR 51735, October 4, 1993, a significant regulatory action is
subject to an Office of Management and Budget (OMB) review and the
requirements of the Executive Order. The Executive Order defines
``significant regulatory action'' as one that is likely to result in a
rule that may:
(1) have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities;
(2) create a serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) materially alter the budgetary impact of entitlements, grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the Executive Order.
For the reasons that follow we have concluded that this interim
final rule is neither an economically significant nor a significant
regulatory action under the Executive Order. The interim final rule
will not have an annual effect on the economy of $100 million or more
or adversely affect in a material way the economy, the insurance
sector, competition, or other sectors of the economy. It will create no
serious inconsistency or otherwise interfere with an action taken or
planned by another agency. It will not materially alter the budgetary
impact of entitlements, grants, user fees, or loan programs or the
rights and obligations of recipients thereof. Nor does it raise novel
legal or policy issues arising out of legal mandates, the President's
priorities, or the principles set forth in the Executive Order.
OMB has not reviewed this rule under the principles of Executive
Order 12866.
Paperwork Reduction Act
This interim final rule does not contain a collection of
information and it is therefore not subject to the provisions of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).
Executive Order 13132, Federalism
Executive Order 13132, Federalism, dated August 4, 1999, sets forth
principles and criteria that agencies must adhere to in formulating and
implementing policies that have federalism implications, that is,
regulations that have substantial direct effects on the States, or on
the distribution of power and responsibilities among the various levels
of government. Federal agencies must closely examine the statutory
authority supporting any action that would limit the policymaking
discretion of the States, and to the extent practicable, must consult
with State and local officials before implementing any such action.
We have reviewed this rule under E.O. 13132 and have concluded that
the rule does not have federalism implications as defined by the
Executive Order. We have determined that the rule does not
significantly affect the rights, roles, and responsibilities of States,
and involves no preemption of State law nor does it limit State
policymaking discretion.
Executive Order 12778, Civil Justice Reform
This interim final rule meets the applicable standards of section
2(b)(2) of E.O. 12778.
Administrative Procedure Act Statement
In general, FEMA publishes a rule for public comment before issuing
a final rule, under the Administrative Procedure Act, 5 U.S.C. 533 and
44 CFR 1.12. The Administrative Procedure Act, however, provides an
exception from that general rule where the agency for good cause finds
the procedures for comment and response contrary to public interest.
The public benefit of this rule is the continuation of the WYO
arrangement without interruption. Therefore, we believe it is contrary
to the public interest to delay the benefits of this rule. In
accordance with the Administrative Procedure Act, 5 U.S.C. 553(d)(3),
we find that there is good cause for the interim final rule to be
published without prior public comment and without a full 30-day
delayed effective date.
List of Subjects in 44 CFR Part 62
Flood insurance.
0
Accordingly, we amend 44 CFR Part 62 as follows:
PART 62--SALE OF INSURANCE AND ADJUSTMENT OF CLAIMS
0
1. The authority citation for part 62 continues to read as follows:
Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31,
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.
0
2. In Appendix A to part 62, revise the first sentence of Article V,
Section A to read as follows:
[[Page 75455]]
Appendix A to Part 62--Federal Emergency Management Agency, Federal
Insurance Administration, Financial Assistance/Subsidy Arrangement
Article V * * *
A. This Arrangement shall be effective for the period October 1,
2002 through May 1, 2004. * * *
* * * * *
Dated: December 23, 2003.
Michael D. Brown,
Under Secretary, Emergency Preparedness and Response, Department of
Homeland Security.
[FR Doc. 03-32198 Filed 12-30-03; 8:45 am]
BILLING CODE 9110-12-P