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CONFERENCE REPORT ON H.R. 2559, AGRICULTURAL RISK PROTECTION ACT OF 2000
(House of Representatives - May 24, 2000)

Text of this article available as: TXT PDF [Pages H3763-H3804] CONFERENCE REPORT ON H.R. 2559, AGRICULTURAL RISK PROTECTION ACT OF 2000 Mr. COMBEST submitted the following conference report and statement on the bill (H.R. 2559) to amend the Federal Crop Insurance Act to strengthen the safety net for agricultural producers by providing greater access to more affordable risk management tools and improved protection from production and income loss, to improve the efficiency and integrity of the Federal crop insurance program, and for other purposes. Conference Report (H. Rept. 106-639) The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 2559), to amend the Federal Crop Insurance Act to strengthen the safety net for agricultural producers by providing greater access to more affordable risk management tools and improved protection from production and income loss, to improve the efficiency and integrity of the Federal crop insurance program, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the Senate amendment, insert the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Agricultural Risk Protection Act of 2000''. (b) Table of Contents.--The table of contents of this Act is as follows: TITLE I--CROP INSURANCE COVERAGE Subtitle A--Crop Insurance Coverage Sec. 101. Premium schedule for additional coverage. Sec. 102. Premium schedule for other plans of insurance. Sec. 103. Catastrophic risk protection. Sec. 104. Administrative fee for additional coverage. Sec. 105. Assigned yields and actual production history adjustments. Sec. 106. Review and adjustment in rating methodologies. Sec. 107. Quality adjustment. Sec. 108. Double insurance and prevented planting. Sec. 109. Noninsured crop disaster assistance program. Subtitle B--Improving Program Integrity Sec. 121. Improving program compliance and integrity. Sec. 122. Protection of confidential information. Sec. 123. Good farming practices. Sec. 124. Records and reporting. Subtitle C--Research and Pilot Programs Sec. 131. Research and development. Sec. 132. Pilot programs. Sec. 133. Education and risk management assistance. Sec. 134. Options pilot program. Subtitle D--Administration Sec. 141. Relation to other laws. Sec. 142. Management of Corporation. Sec. 143. Contracting for rating of plans of insurance. Sec. 144. Electronic availability of crop insurance information. Sec. 145. Adequate coverage for States. Sec. 146. Submission of policies and materials to Board. Sec. 147. Funding. Sec. 148. Standard Reinsurance Agreement. Subtitle E--Miscellaneous Sec. 161. Limitation on revenue coverage for potatoes. Sec. 162. Crop insurance coverage for cotton and rice. Sec. 163. Indemnity payments for certain producers. Sec. 164. Sense of Congress regarding the Federal crop insurance program. Sec. 165. Sense of Congress on rural America, including minority and limited-resource farmers. Subtitle F--Effective Dates and Implementation Sec. 171. Effective dates. Sec. 172. Regulations. Sec. 173. Savings clause. TITLE II--AGRICULTURAL ASSISTANCE Subtitle A--Market Loss Assistance Sec. 201. Market loss assistance. Sec. 202. Oilseeds. Sec. 203. Specialty crops. Sec. 204. Other commodities. Sec. 205. Payments in lieu of loan deficiency payments. Sec. 206. Expansion of producers eligible for loan deficiency payments. Subtitle B--Conservation Sec. 211. Conservation assistance. Sec. 212. Condition on development of Little Darby National Wildlife Refuge, Ohio. Subtitle C--Research Sec. 221. Carbon cycle research. Sec. 222. Tobacco research for medicinal purposes. Sec. 223. Research on soil science and forest health management. Sec. 224. Research on waste streams from livestock production. Sec. 225. Improved storage and management of livestock and poultry waste. Sec. 226. Ethanol research pilot plant. Sec. 227. Bioinformatics Institute for Model Plant Species. Subtitle D--Agricultural Marketing Sec. 231. Value-added agricultural product market development grants. Subtitle E--Nutrition Programs Sec. 241. Calculation of minimum amount of commodities for school lunch requirements. Sec. 242. School lunch data. Sec. 243. Child and adult care food program integrity. Sec. 244. Adjustments to WIC program. Subtitle F--Other Programs Sec. 251. Authority to provide loan in connection with boll weevil eradication. Sec. 252. Animal disease control. Sec. 253. Emergency loans for seed producers. Sec. 254. Temporary suspension of authority to combine certain offices. Sec. 255. Farm operating loan eligibility. Sec. 256. Water systems for rural and Native villages in Alaska. Sec. 257. Crop and pasture flood compensation program. Sec. 258. Flood mitigation near Pierre, South Dakota. Sec. 259. Restoration of eligibility for crop loss assistance. Subtitle G--Administration Sec. 261. Funding. Sec. 262. Obligation period. Sec. 263. Regulations. Sec. 264. Paygo adjustment. Sec. 265. Commodity Credit Corporation reimbursement. TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000 Sec. 301. Short title. Sec. 302. Findings. Sec. 303. Definitions. Sec. 304. Cooperation and coordination in biomass research and development. Sec. 305. Biomass Research and Development Board. Sec. 306. Biomass Research and Development Technical Advisory Committee. Sec. 307. Biomass Research And Development Initiative. Sec. 308. Administrative support and funds. Sec. 309. Reports. Sec. 310. Termination of authority. TITLE IV--PLANT PROTECTION ACT Sec. 401. Short title. Sec. 402. Findings. Sec. 403. Definitions. [[Page H3764]] Subtitle A--Plant Protection Sec. 411. Regulation of movement of plant pests. Sec. 412. Regulation of movement of plants, plant products, biological control organisms, noxious weeds, articles, and means of conveyance. Sec. 413. Notification and holding requirements upon arrival. Sec. 414. General remedial measures for new plant pests and noxious weeds. Sec. 415. Declaration of extraordinary emergency and resulting authorities. Sec. 416. Recovery of compensation for unauthorized activities. Sec. 417. Control of grasshoppers and mormon crickets. Sec. 418. Certification for exports. Subtitle B--Inspection and Enforcement Sec. 421. Inspections, seizures, and warrants. Sec. 422. Collection of information. Sec. 423. Subpoena authority. Sec. 424. Penalties for violation. Sec. 425. Enforcement actions of attorney general. Sec. 426. Court jurisdiction. Subtitle C--Miscellaneous Provisions Sec. 431. Cooperation. Sec. 432. Buildings, land, people, claims, and agreements. Sec. 433. Reimbursable agreements. Sec. 434. Regulations and orders. Sec. 435. Protection for mail handlers. Sec. 436. Preemption. Sec. 437. Severability. Sec. 438. Repeal of superseded laws. Subtitle D--Authorization of Appropriations Sec. 441. Authorization of appropriations. Sec. 442. Transfer authority. TITLE V--INSPECTION ANIMALS Sec. 501. Civil penalty. Sec. 502. Subpoena authority. TITLE I--CROP INSURANCE Subtitle A--Crop Insurance Coverage SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE. (a) Expected Market Price.--Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (5) and inserting the following: ``(5) Expected market price.-- ``(A) Establishment or approval.--For the purposes of this title, the Corporation shall establish or approve the price level (referred to in this title as the `expected market price') of each agricultural commodity for which insurance is offered. ``(B) General rule.--Except as otherwise provided in subparagraph (C), the expected market price of an agricultural commodity shall be not less than the projected market price of the agricultural commodity, as determined by the Corporation. ``(C) Other authorized approaches.--The expected market price of an agricultural commodity-- ``(i) may be based on the actual market price of the agricultural commodity at the time of harvest, as determined by the Corporation; ``(ii) in the case of revenue and other similar plans of insurance, may be the actual market price of the agricultural commodity, as determined by the Corporation; ``(iii) in the case of cost of production or similar plans of insurance, shall be the projected cost of producing the agricultural commodity, as determined by the Corporation; or ``(iv) in the case of other plans of insurance, may be an appropriate amount, as determined by the Corporation.''. (b) Premium Amounts.--Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)) is amended-- (1) in paragraph (2), by striking subparagraphs (B) and (C) and inserting the following: ``(B) In the case of additional coverage equal to or greater than 50 percent of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount of the premium shall-- ``(i) be sufficient to cover anticipated losses and a reasonable reserve; and ``(ii) include an amount for operating and administrative expenses, as determined by the Corporation, on an industry- wide basis as a percentage of the amount of the premium used to define loss ratio.''; and (2) by adding at the end the following: ``(3) Performance-based discount.--The Corporation may provide a performance-based premium discount for a producer of an agricultural commodity who has good insurance or production experience relative to other producers of that agricultural commodity in the same area, as determined by the Corporation.''. (c) Payment Schedule.--Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended-- (1) in the matter preceding the subparagraphs, by striking ``The amount'' and inserting ``Subject to paragraph (4), the amount''; and (2) by striking subparagraphs (B) and (C) and inserting the following: ``(B) In the case of additional coverage equal to or greater than 50 percent, but less than 55 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 67 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(C) In the case of additional coverage equal to or greater than 55 percent, but less than 65 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 64 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(D) In the case of additional coverage equal to or greater than 65 percent, but less than 75 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 59 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(E) In the case of additional coverage equal to or greater than 75 percent, but less than 80 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 55 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(F) In the case of additional coverage equal to or greater than 80 percent, but less than 85 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 48 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(G) Subject to subsection (c)(4), in the case of additional coverage equal to or greater than 85 percent of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 38 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.''. (d) Temporary Prohibition on Continuous Coverage.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by striking paragraph (4) and inserting the following: ``(4) Temporary prohibition on continuous coverage.-- Notwithstanding paragraph (2), during each of the 2001 through 2005 reinsurance years, additional coverage under subsection (c) shall be available only in 5 percent increments beginning at 50 percent of the recorded or appraised average yield.''. (e) Premium Payment Disclosure.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following: ``(5) Premium payment disclosure.--Each policy or plan of insurance under this title shall prominently indicate the dollar amount of the portion of the premium paid by the Corporation.''. (f) Conforming Amendment.--Section 508(g)(2)(D) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by striking ``(as provided in subsection (e)(4))''. SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE. (a) Premium Schedule.--Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended-- (1) in paragraph (2), by striking the second sentence; and (2) by striking paragraph (5) and inserting the following: ``(5) Premium schedule.-- ``(A) Payment by corporation.--In the case of a policy or plan of insurance developed and approved under this subsection or section 522, or conducted under section 523 (other than a policy or plan of insurance applicable to livestock), the Corporation shall pay a portion of the premium of the policy or plan of insurance that is equal to-- ``(i) the percentage, specified in subsection (e) for a similar level of coverage, of the total amount of the premium used to define loss ratio; and ``(ii) an amount for administrative and operating expenses determined in accordance with subsection (k)(4). ``(B) Transitional schedule.--Effective only during the 2001 reinsurance year, in the case of a policy or plan of insurance developed and approved under this subsection or section 522, or conducted under section 523 (other than a policy or plan of insurance applicable to livestock), and first approved by the Board after the date of enactment of this subparagraph, the payment by the Corporation of a portion of the premium of the policy may not exceed the dollar amount that would otherwise be authorized under subsection (e) (consistent with subsection (c)(5), as in effect on the day before the date of enactment of this subparagraph).''. [[Page H3765]] (b) Reimbursement Rate.--Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding at the end the following: ``(C) Other reductions.--Beginning with the 2002 reinsurance year, in the case of a policy or plan of insurance approved by the Board that was not reinsured during the 1998 reinsurance year but, had it been reinsured, would have received a reduced rate of reimbursement during the 1998 reinsurance year, the rate of reimbursement for administrative and operating costs established for the policy or plan of insurance shall take into account the factors used to determine the rate of reimbursement for administrative and operating costs during the 1998 reinsurance year, including the expected difference in premium and actual administrative and operating costs of the policy or plan of insurance relative to an individual yield policy or plan of insurance and other appropriate factors, as determined by the Corporation.''. SEC. 103. CATASTROPHIC RISK PROTECTION. (a) Alternative Coverage.--Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended by striking paragraph (3) and inserting the following: ``(3) Alternative catastrophic coverage.--Beginning with the 2001 crop year, the Corporation shall offer producers of an agricultural commodity the option of selecting either of the following: ``(A) The catastrophic risk protection coverage available under paragraph (2)(A). ``(B) An alternative catastrophic risk protection coverage that-- ``(i) indemnifies the producer on an area yield and loss basis if such a policy or plan of insurance is offered for the agricultural commodity in the county in which the farm is located; ``(ii) provides, on a uniform national basis, a higher combination of yield and price protection than the coverage available under paragraph (2)(A); and ``(iii) the Corporation determines is comparable to the coverage available under paragraph (2)(A) for purposes of subsection (e)(2)(A).''. (b) Administrative Fee.-- (1) Revised fee.--Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended-- (A) in subparagraph (A), by striking ``$50'' and inserting ``$100''; (B) by striking subparagraph (B); and (C) in subparagraph (C), by striking ``amounts required under subparagraphs (A) and (B)'' and inserting ``administrative fee required by this paragraph''. (2) Conforming amendment.--Section 748 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (as contained in section 101(a) of division A of Public Law 105-277; 7 U.S.C. 1508 note), is amended by striking ``$50'' and inserting ``$100''. (c) Payment of Administrative Fee on Behalf of Producers.-- Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)), as amended by subsection (b)(1)(B), is amended by inserting after subparagraph (A) the following: ``(B) Payment on behalf of producers.-- ``(i) Payment authorized.--If State law permits a licensing fee or other payment to be paid by an insurance provider to a cooperative association or trade association and rebated to a producer with catastrophic risk protection or additional coverage, a cooperative association or trade association located in that State may pay, on behalf of a member of the association in that State or a contiguous State who consents to be insured under such an arrangement, all or a portion of the administrative fee required by this paragraph for catastrophic risk protection. ``(ii) Treatment of licensing fees.--A licensing fee or other payment made by an insurance provider to the cooperative association or trade association in connection with the issuance of catastrophic risk protection or additional coverage to members of the cooperative association or trade association shall be subject to the laws regarding rebates of the State in which the fee or other payment is made. ``(iii) Selection of provider.--Nothing in this subparagraph limits the option of a producer to select the licensed insurance agent or other approved insurance provider from whom the producer will purchase a policy or plan of insurance or to refuse coverage for which a payment is offered to be made under clause (i). ``(iv) Delivery of insurance.--A policy or plan of insurance for which a payment is made under clause (i) shall be delivered by a licensed insurance agent or other approved insurance provider. ``(v) Additional coverage encouraged.--A cooperative association or trade association, and any approved insurance provider with whom a licensing fee or other arrangement under this subparagraph is made, shall encourage producer members to purchase appropriate levels of additional coverage in order to meet the risk management needs of the member producers. ``(vi) Report.--Not later than April 1, 2002, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that evaluates-- ``(I) the operation of this subparagraph; and ``(II) the impact of this subparagraph on participation in the Federal crop insurance program, including the impact on levels of coverage purchased.''. (d) Reimbursement Rate Change.--Section 508(b)(11) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by striking ``11 percent'' and inserting ``8 percent''. SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE. Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (10) and inserting the following: ``(10) Administrative fee.-- ``(A) Fee required.--If a producer elects to purchase coverage for a crop at a level in excess of catastrophic risk protection, the producer shall pay an administrative fee for the additional coverage of $30 per crop per county. ``(B) Use of fees; waiver.--Subparagraphs (D) and (E) of subsection (b)(5) shall apply with respect to the collection and use of administrative fees under this paragraph.''. SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY ADJUSTMENTS. (a) Assigned Yields.--Section 508(g)(2)(B) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended-- (1) by striking ``assigned a yield'' and inserting ``assigned-- ``(i) a yield''; (2) by striking the period at the end and inserting ``; or''; and (3) by adding at the end the following: ``(ii) a yield determined by the Corporation, in the case of-- ``(I) a producer that has not had a share of the production of the insured crop for more than 2 crop years, as determined by the Secretary; ``(II) a producer that produces an agricultural commodity on land that has not been farmed by the producer; or ``(III) a producer that rotates a crop produced on a farm to a crop that has not been produced on the farm.''. (b) Actual Production History Adjustments.--Section 508(g) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)) is amended by adding at the end the following: ``(4) Adjustment in actual production history to establish insurable yields.-- ``(A) Application.--This paragraph shall apply whenever the Corporation uses the actual production records of the producer to establish the producer's actual production history for an agricultural commodity for any of the 2001 and subsequent crop years. ``(B) Election to use percentage of transitional yield.-- If, for 1 or more of the crop years used to establish the producer's actual production history of an agricultural commodity, the producer's recorded or appraised yield of the commodity was less than 60 percent of the applicable transitional yield, as determined by the Corporation, the Corporation shall, at the election of the producer-- ``(i) exclude any of such recorded or appraised yield; and ``(ii) replace each excluded yield with a yield equal to 60 percent of the applicable transitional yield. ``(C) Premium adjustment.--In the case of a producer that makes an election under subparagraph (B), the Corporation shall adjust the premium to reflect the risk associated with the adjustment made in the actual production history of the producer. ``(5) Adjustment to reflect increased yields from successful pest control efforts.-- ``(A) Situations justifying adjustment.--The Corporation shall develop a methodology for adjusting the actual production history of a producer when each of the following apply: ``(i) The producer's farm is located in an area where systematic, area-wide efforts have been undertaken using certain operations or measures, or the producer's farm is a location at which certain operations or measures have been undertaken, to detect, eradicate, suppress, or control, or at least to prevent or retard the spread of, a plant disease or plant pest, including a plant pest (as defined in section 102 of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 147a)). ``(ii) The presence of the plant disease or plant pest has been found to adversely affect the yield of the agricultural commodity for which the producer is applying for insurance. ``(iii) The efforts described in clause (i) have been effective. ``(B) Adjustment amount.--The amount by which the Corporation adjusts the actual production history of a producer of an agricultural commodity shall reflect the degree to which the success of the systematic, area-wide efforts described in subparagraph (A), on average, increases the yield of the commodity on the producer's farm, as determined by the Corporation.''. SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES. Section 508(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(i)) is amended-- (1) by striking ``The Corporation'' and inserting the following: ``(1) In general.--The Corporation''; and (2) by adding at the end the following: ``(2) Review of rating methodologies.--To maximize participation in the Federal crop insurance program and to ensure equity for producers, the Corporation shall periodically review the methodologies employed for rating plans of insurance under this title consistent with section 507(c)(2). ``(3) Analysis of rating and loss history.--The Corporation shall analyze the rating and loss history of approved policies and plans of insurance for agricultural commodities by area. ``(4) Premium adjustment.--If the Corporation makes a determination that premium rates are excessive for an agricultural commodity in an area relative to the requirements of subsection (d)(2) for that area, then, for the 2002 crop year (and as necessary thereafter), the Corporation shall make appropriate adjustments in the premium rates for that area for that agricultural commodity.''. SEC. 107. QUALITY ADJUSTMENT. Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by striking subsection (m) and inserting the following: [[Page H3766]] ``(m) Quality Loss Adjustment Coverage.-- ``(1) Effect of coverage.--If a policy or plan of insurance offered under this title includes quality loss adjustment coverage, the coverage shall provide for a reduction in the quantity of production of the agricultural commodity considered produced during a crop year, or a similar adjustment, as a result of the agricultural commodity not meeting the quality standards established in the policy or plan of insurance. ``(2) Additional quality loss adjustment.-- ``(A) Producer option.--Notwithstanding any other provision of law, in addition to the quality loss adjustment coverage available under paragraph (1), the Corporation shall offer producers the option of purchasing quality loss adjustment coverage on a basis that is smaller than a unit with respect to an agricultural commodity that satisfies each of the following: ``(i) The agricultural commodity is sold on an identity- preserved basis. ``(ii) All quality determinations are made solely by the Federal agency designated to grade or classify the agricultural commodity. ``(iii) All quality determinations are made in accordance with standards published by the Federal agency in the Federal Register. ``(iv) The discount schedules that reflect the reduction in quality of the agricultural commodity are established by the Secretary. ``(B) Basis for adjustment.--Under this paragraph, the Corporation shall set the quality standards below which quality losses will be paid based on the variability of the grade of the agricultural commodity from the base quality for the agricultural commodity. ``(3) Review of criteria and procedures.--The Corporation shall contract with a qualified person to review the quality loss adjustment procedures of the Corporation so that the procedures more accurately reflect local quality discounts that are applied to agricultural commodities insured under this title. Based on the review, the Corporation shall make adjustments in the procedures, taking into consideration the actuarial soundness of the adjustment and the prevention of fraud, waste, and abuse.''. SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING. The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended by inserting after section 508 (7 U.S.C. 1508) the following: ``SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING. ``(a) Definitions.--In this section: ``(1) First crop.--The term `first crop' means the first crop of the first agricultural commodity planted for harvest, or prevented from being planted, on specific acreage during a crop year and insured under this title. ``(2) Second crop.--The term `second crop' means a second crop of the same agricultural commodity as the first crop, or a crop of a different agricultural commodity following the first crop, planted on the same acreage as the first crop for harvest in the same crop year, except the term does not include a replanted crop. ``(3) Replanted crop.--The term `replanted crop' means any agricultural commodity replanted on the same acreage as the first crop for harvest in the same crop year if the replanting is required by the terms of the policy of insurance covering the first crop. ``(b) Double Insurance.-- ``(1) Options on loss to first crop.--Except as provided in subsections (d) and (e), if a first crop insured under this title in a crop year has a total or partial insurable loss, the producer of the first crop may elect 1 of the following options: ``(A) No second crop planted.--The producer may-- ``(i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) collect an indemnity payment that is equal to 100 percent of the insurable loss for the first crop. ``(B) Second crop planted.--The producer may-- ``(i) plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the insurable loss for the first crop. ``(2) Effect of no loss to second crop.--If a producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer may collect an indemnity payment for the first crop that is equal to-- ``(A) 100 percent of the insurable loss for the first crop; less ``(B) the amount previously collected under paragraph (1)(B)(ii). ``(3) Premium for first crop if second crop planted.-- ``(A) Initial premium.--If a producer makes an election under paragraph (1)(B), the producer shall be responsible for a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity. ``(B) Effect of no loss to second crop.--If the producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer shall be responsible for a premium for the first crop that is equal to-- ``(i) the full premium owed by the producer for the first crop; less ``(ii) the amount of premium previously paid under subparagraph (A). ``(c) Prevented Planting Coverage.-- ``(1) Options on loss to first crop.--Except as provided in subsections (d) and (e), if a first crop insured under this title in a crop year is prevented from being planted, the producer of the first crop may elect 1 of the following options: ``(A) No second crop planted.--The producer may-- ``(i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) subject to paragraph (4), collect an indemnity payment that is equal to 100 percent of the prevented planting guarantee for the acreage for the first crop. ``(B) Second crop planted.--The producer may-- ``(i) plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) subject to paragraphs (4) and (5), collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the prevented planting guarantee for the acreage for the first crop. ``(2) Premium for first crop if second planted.--If the producer makes an election under paragraph (1)(B), the producer shall pay a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity. ``(3) Effect on actual production history.--Except in the case of double cropping described in subsection (d), if a producer make an election under paragraph (1)(B) for a crop year, the Corporation shall assign the producer a recorded yield for that crop year for the first crop equal to 60 percent of the producer's actual production history for the agricultural commodity involved, for purposes of determining the producer's actual production history for subsequent crop years. ``(4) Area conditions required for payment.--The Corporation shall limit prevented planting payments for producers to those situations in which other producers, in the area where a first crop is prevented from being planted is located, are also generally affected by the conditions that prevented the first crop from being planted. ``(5) Planting date.--If a producer plants the second crop before the latest planting date established by the Corporation for the first crop, the Corporation shall not make a prevented planting payment with regard to the first crop. ``(d) Exception for Established Double Cropping Practices.--A producer may receive full indemnity payments on 2 or more crops planted for harvest in the same crop year and insured under this title if each of the following conditions are met: ``(1) There is an established practice of planting 2 or more crops for harvest in the same crop year in the area, as determined by the Corporation. ``(2) An additional coverage policy or plan of insurance is offered with respect to the agricultural commodities planted on the same acreage for harvest in the same crop year in the area. ``(3) The producer has a history of planting 2 or more crops for harvest in the same crop year or the applicable acreage has historically had 2 or more crops planted for harvest in the same crop year. ``(4) The second or more crops are customarily planted after the first crop for harvest on the same acreage in the same year in the area. ``(e) Subsequent Crops.--Except in the case of double cropping described in subsection (d), if a producer elects to plant a crop (other than a replanted crop) subsequent to a second crop on the same acreage as the first crop and second crop for harvest in the same crop year, the producer shall not be eligible for insurance under this title, or noninsured crop assistance under section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333), for the subsequent crop.''. SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM. (a) Operation and Administration of Program.--Section 196(a)(2) of the Agricultural Market Transition Act (7 U.S.C. 7333(a)(2)) is amended by adding at the end the following: ``(C) Combination of similar types or varieties.--At the option of the Secretary, all types or varieties of a crop or commodity, described in subparagraphs (A) and (B), may be considered to be a single eligible crop under this section.''. (b) Timely Application.--Section 196(b)(1) of the Agricultural Market Transition Act (7 U.S.C. 7333(b)(1)) is amended in the second sentence by striking ``at such time as the Secretary may require'' and inserting ``not later than 30 days before the beginning of the coverage period, as determined by the Secretary''. (c) Records and Reports.--Section 196(b) of the Agricultural Market Transition Act (7 U.S.C. 7333(b)) is amended-- (1) by striking paragraph (2) and inserting the following: ``(2) Records.--To be eligible for assistance under this section, a producer shall provide annually to the Secretary records of crop acreage, acreage yields, and production for each crop, as required by the Secretary.''; and (2) in paragraph (3), by inserting ``annual'' after ``shall provide''. (d) Loss Requirements.--Section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333) is amended by striking subsection (c) and inserting the following: ``(c) Loss Requirements.-- ``(1) Cause.--To be eligible for assistance under this section, a producer of an eligible crop shall have suffered a loss of a noninsured commodity as the result of a cause described in subsection (a)(3). ``(2) Assistance.--On making a determination described in subsection (a)(3), the Secretary shall provide assistance under this section to producers of an eligible crop that have suffered a loss as a result of the cause described in subsection (a)(3). ``(3) Prevented planting.--Subject to paragraph (1), the Secretary shall make a prevented planting noninsured crop disaster assistance payment if the producer is prevented from [[Page H3767]] planting more than 35 percent of the acreage intended for the eligible crop because of drought, flood, or other natural disaster, as determined by the Secretary. ``(4) Area trigger.--The Secretary shall provide assistance to individual producers without any requirement of an area loss.''. (e) Service Fee.--Section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333) is amended by adding at the end the following: ``(k) Service Fee.-- ``(1) In general.--To be eligible to receive assistance for an eligible crop for a crop year under this section, a producer shall pay to the Secretary (at the time at which the producer submits the application under subsection (b)(1)) a service fee for the eligible crop in an amount that is equal to the lesser of-- ``(A) $100 per crop per county; or ``(B) $300 per producer per county, but not to exceed a total of $900 per producer. ``(2) Waiver.--The Secretary shall waive the service fee required under paragraph (1) in the case of a limited resource farmer, as defined by the Secretary. ``(3) Use.--The Secretary shall deposit service fees collected under this subsection in the Commodity Credit Corporation Fund.''. Subtitle B--Improving Program Integrity SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY. (a) Additional Methods of Ensuring Program Compliance and Integrity.--Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1514) is amended to read as follows: ``SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY. ``(a) Purpose.-- ``(1) In general.--The purpose of this section is to improve compliance with, and the integrity of, the Federal crop insurance program. ``(2) Role of insurance providers.--The Corporation shall work actively with approved insurance providers to address program compliance and integrity issues as such issues develop. ``(b) Notification of Compliance Problems.-- ``(1) Notification of errors, omissions, and failures.--The Corporation shall notify in writing an approved insurance provider of any error, omission, or failure to follow Corporation regulations or procedures for which the approved insurance provider may be responsible and which may result in a debt owed the Corporation. ``(2) Time for notification.--Notice under paragraph (1) shall be given within 3 years after the end of the insurance period during which the error, omission, or failure is alleged to have occurred, except that this time limitation shall not apply with respect to an error, omission, or procedural violation that is willful or intentional. ``(3) Effect of failure to timely notify.--Except as provided in paragraph (2), the failure to timely provide the notice required under this subsection shall relieve the approved insurance provider from the debt owed the Corporation. ``(c) Reconciling Producer Information.--The Secretary shall develop and implement a coordinated plan for the Corporation and the Farm Service Agency to reconcile all relevant information received by the Corporation or the Farm Service Agency from a producer who obtains crop insurance coverage under this title. Beginning with the 2001 crop year, the Secretary shall require that the Corporation and the Farm Service Agency reconcile such producer-derived information on at least an annual basis in order to identify and address any discrepancies. ``(d) Identification and Elimination of Fraud, Waste, and Abuse.-- ``(1) FSA monitoring program.--The Secretary shall develop and implement a coordinated plan for the Farm Service Agency to assist the Corporation in the ongoing monitoring of programs carried out under this title, including-- ``(A) at the request of the Corporation or, subject to paragraph (2), on its own initiative if the Farm Service Agency has reason to suspect the existence of program fraud, waste, or abuse, conducting fact finding relative to allegations of program fraud, waste, or abuse; ``(B) reporting to the Corporation, in writing in a timely manner, the results of any fact finding conducted pursuant to subparagraph (A), any allegation of fraud, waste, or abuse, and any identified program vulnerabilities; and ``(C) assisting the Corporation and approved insurance providers in auditing a statistically appropriate number of claims made under any policy or plan of insurance under this title. ``(2) FSA inquiry.--If, within 5 calendar days after receiving a report submitted under paragraph (1)(B), the Corporation does not provide a written response that describes the intended actions of the Corporation, the Farm Service Agency may conduct its own inquiry into the alleged program fraud, waste, or abuse on approval from the State director of the Farm Service Agency of the State in which the alleged fraud, waste, or abuse occurred. If as a result of the inquiry, the Farm Service Agency concludes further investigation is warranted, but the Corporation declines to proceed with the investigation, the Farm Service Agency may refer the matter to the Inspector General of the Department of Agriculture. ``(3) Use of field infrastructure.--The plan required by paragraph (1) shall provide for the use of the field infrastructure of the Farm Service Agency. The Secretary shall ensure that relevant Farm Service Agency personnel are appropriately trained for any responsibilities assigned to the personnel under the plan. At a minimum, the personnel shall receive the same level of training and pass the same basic competency tests as required of loss adjusters of approved insurance providers. ``(4) Maintenance of provider effort.-- ``(A) In general.--The activities of the Farm Service Agency under this subsection do not affect the responsibility of approved insurance providers to conduct any audits of claims or other program reviews required by the Corporation. ``(B) Notification of providers.--The Corporation shall notify the appropriate approved insurance provider of a report from the Farm Service Agency regarding alleged program fraud, waste, or abuse, unless the provider is suspected to be included in, or a party to, the alleged fraud, waste, or abuse. ``(C) Response.--An approved insurance provider that receives a notice under subparagraph (B) shall submit a report to the Corporation, within an appropriate time period determined by the Secretary, describing the actions taken by the provider to investigate the allegations of program fraud, waste, or abuse contained in the notice. ``(5) Corporation response to provider reports.-- ``(A) Prompt response.--If an approved insurance provider reports to the Corporation that the approved insurance provider suspects intentional misrepresentation, fraud, waste, or abuse, the Corporation shall make a determination and provide, within 90 calendar days after receiving the report, a written response that describes the intended actions of the Corporation. ``(B) Cooperative effort.--The approved insurance provider and the Corporation shall take coordinated action in any case where misrepresentation, fraud, waste, or abuse is alleged. ``(C) Failure to timely respond.--If the Corporation fails to respond as required by subparagraph (A), an approved insurance provider may request the Farm Service Agency to assist the provider in an inquiry into the alleged program fraud, waste, or abuse. ``(e) Consultation with State FSA Committees.--The Secretary shall establish procedures under which the Corporation shall consult with the State committee of the Farm Service Agency for a State with respect to policies, plans of insurance, and material related to such policies or plans of insurance (including applicable sales closing dates, assigned yields, and transitional yields) offered in that State under this title. ``(f) Detection of Disparate Performance.-- ``(1) Covered activities.--The Secretary shall establish procedures under which the Corporation will be able to identify the following: ``(A) Any agent engaged in the sale of coverage offered under this title where the loss claims associated with such sales by the agent are equal to or greater than 150 percent (or an appropriate percentage specified by the Corporation) of the mean for all loss claims associated with such sales by all other agents operating in the same area, as determined by the Corporation. ``(B) Any person performing loss adjustment services relative to coverage offered under this title where such loss adjustments performed by the person result in accepted or denied claims equal to or greater than 150 percent (or an appropriate percentage specified by the Corporation) of the mean for accepted or denied claims (as applicable) for all other persons performing loss adjustment services in the same area, as determined by the Corporation. ``(2) Review.-- ``(A) Review required.--The Corporation shall conduct a review of any agent identified pursuant to paragraph (1)(A), and any person identified pursuant to paragraph (1)(B), to determine whether the higher loss claims associated with the agent or the higher number of accepted or denied claims (as applicable) associated with the person are the result of fraud, waste, or abuse. ``(B) Remedial action.--The Corporation shall take appropriate remedial action with respect to any occurrence of fraud, waste, or abuse identified in a review conducted under this paragraph. ``(3) Oversight of agents and loss adjusters.--The Corporation shall develop procedures to require an annual review by an approved insurance provider of the performance of each agent and loss adjuster used by the approved insurance provider. The Corporation shall oversee the conduct of annual reviews and may consult with an approved insurance provider regarding any remedial action that is determined to be necessary as a result of the annual review of an agent or loss adjuster. ``(g) Submission of Information to Corporation to Support Compliance Efforts.-- ``(1) Types of information required.--The Secretary shall establish procedures under which approved insurance providers shall submit to the Corporation the following information with respect to each policy or plan of insurance offered under this title: ``(A) The name and identification number of the insured. ``(B) The agricultural commodity to be insured. ``(C) The elected coverage level, including the price election, of the insured. ``(2) Time for submission.--The information required by paragraph (1) with respect to a policy or plan of insurance shall be submitted so as to ensure receipt by the Corporation not later than the Saturday of the week containing the calendar day that is 30 days after the applicable sales closing date for the crop to be insured. ``(h) Sanctions for Program Noncompliance and Fraud.-- ``(1) False information.--A producer, agent, loss adjuster, approved insurance provider, or other person that willfully and intentionally provides any false or inaccurate information to the Corporation or to an approved insurance provider with respect to a policy or plan of insurance under this title may, after notice and an opportunity for a hearing on the record, be subject to 1 or more of the sanctions described in paragraph (3). [[Page H3768]] ``(2) Compliance.--A person may, after notice and an opportunity for a hearing on the record, be subject to 1 or more of the sanctions described in paragraph (3) if the person is a producer, agent, loss adjuster, approved insurance provider, or other person that willfully and intentionally fails to comply with a requirement of the Corporation. ``(3) Authorized sanctions.--If the Secretary determines that a person covered by this subsection has committed a material violation under paragraph (1) or (2), the following sanctions may be imposed: ``(A) Civil fines.--A civil fine may be imposed for each violation in an amount not to exceed the greater of-- ``(i) the amount of the pecuniary gain obtained as a result of the false or inaccurate information provided or the noncompliance with a requirement of this title; or ``(ii) $10,000. ``(B) Producer disqualification.--In the case of a violation committed by a producer, the producer may be disqualified for a period of up to 5 years from receiving any monetary or nonmonetary benefit provided under each of the following: ``(i) This title. ``(ii) The Agricultural Market Transition Act (7 U.S.C. 7201 et seq.), including the noninsured crop disaster assistance program under section 196 of that Act (7 U.S.C. 7333). ``(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.). ``(iv) The Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.). ``(v) The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.). ``(vi) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.). ``(vii) The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.). ``(viii) Any law that provides assistance to a producer of an agricultural commodity affected by a crop loss or a decline in the prices of agricultural commodities. ``(C) Disqualification of other persons.--In the case of a violation committed by an agent, loss adjuster, approved insurance provider, or other person (other than a producer), the violator may be disqualified for a period of up to 5 years from participating in any program, or receiving any benefit, under this title. ``(4) Assessment of sanction.--The Secretary shall consider the gravity of the violation of the person covered by this subsection in determining-- ``(A) whether to impose a sanction under this subsection; and ``(B) the type and amount of the sanction to be imposed. ``(5) Disclosure of sanctions.--Each policy or plan of insurance under this title shall provide notice describing the sanctions prescribed under paragraph (3) for willfully and intentionally-- ``(A) providing false or inaccurate information to the Corporation or to an approved insurance provider; or ``(B) failing to comply with a requirement of the Corporation. ``(6) Insurance fund.--Any funds collected under this subsection shall be deposited into the insurance fund established under section 516(c). ``(i) Annual Report on Program Compliance and Integrity Efforts.-- ``(1) Report required.--The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report describing the operation of this section during the preceding year and efforts undertaken by the Secretary and the Corporation to carry out this section. ``(2) Information regarding fraud, waste, and abuse.--The report shall identify specific occurrences of waste, fraud, or abuse and contain an outline of actions that have been or are being taken to eliminate the identified waste, fraud, or abuse. ``(j) Information Management.-- ``(1) Systems upgrades.--The Secretary shall upgrade the information management systems of the Corporation used in the administration and enforcement and this title. In upgrading the systems, the Secretary shall ensure that new hardware and software are compatible with the hardware and software used by other agencies of the Department to maximize data sharing and promote the purpose of this section. ``(2) Use of available information technologies.--The Secretary shall use the information technologies known as data mining and data warehousing and other available information technologies to administer and enforce this title. ``(3) Use of private sector.--The Secretary may enter into contracts to use private sector expertise and technological resources in implementing this subsection. ``(k) Funding.-- ``(1) Available funds.--To carry out this section and sections 502(c), 506(h), 508(a)(3)(B), and 508(f)(3)(A), the Corporation may use, from amounts made available from the insurance fund established under section 516(c), not more than $23,000,000 during the period of fiscal years 2001 through 2005, of which not more than $9,000,000 shall be available for fiscal year 2001. ``(2) Prohibition.--None of the funds made available under paragraph (1) may be used to pay the salaries of employees of the Corporation.''. (b) Conforming Amendment.--Section 506 of the Federal Crop Insurance Act (7 U.S.C. 1506) is amended-- (1) by striking subsection (q); and (2) by redesignating subsections (r) and (s) as subsections (q) and (r), respectively. SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION. Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is amended by adding at the end the following: ``(c) Protection of Confidential Information.-- ``(1) General prohibition against disclosure.--Except as provided in paragraph (2), the Secretary, any other officer or employee of the Department or an agency thereof, an approved insurance provider and its employees and contractors, and any other person may not disclose to the public information furnished by a producer under this title. ``(2) Authorized disclosure.-- ``(A) Disclosure in statistical or aggregate form.-- Information described in paragraph (1) may be disclosed to the public if the information has been transformed into a statistical or aggregate form that does not allow the identification of the person who supplied particular information. ``(B) Consent of producer.--A producer may consent to the disclosure of information described in paragraph (1). The participation of the producer in, and the receipt of any benefit by the producer under, this title or any other program administered by the Secretary may not be conditioned on the producer providing consent under this paragraph. ``(3) Violations; penalties.--Section 1770(c) of the Food Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect to the release of information collected in any manner or for any purpose prohibited by this subsection.''. SEC. 123. GOOD FARMING PRACTICES. Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amended by striking paragraph (3) and inserting the following: ``(3) Exclusion of losses due to certain actions of producer.-- ``(A) Exclusions.--Insurance provided under this subsection shall not cover losses due to-- ``(i) the neglect or malfeasance of the producer; ``(ii) the failure of the producer to reseed to the same crop in such areas and under such circumstances as it is customary to reseed; or ``(iii) the failure of the producer to follow good farming practices, including scientifically sound sustainable and organic farming practices. ``(B) Good farming practices.-- ``(i) Informal administrative process.--A producer shall have the rig

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CONFERENCE REPORT ON H.R. 2559, AGRICULTURAL RISK PROTECTION ACT OF 2000
(House of Representatives - May 24, 2000)

Text of this article available as: TXT PDF [Pages H3763-H3804] CONFERENCE REPORT ON H.R. 2559, AGRICULTURAL RISK PROTECTION ACT OF 2000 Mr. COMBEST submitted the following conference report and statement on the bill (H.R. 2559) to amend the Federal Crop Insurance Act to strengthen the safety net for agricultural producers by providing greater access to more affordable risk management tools and improved protection from production and income loss, to improve the efficiency and integrity of the Federal crop insurance program, and for other purposes. Conference Report (H. Rept. 106-639) The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 2559), to amend the Federal Crop Insurance Act to strengthen the safety net for agricultural producers by providing greater access to more affordable risk management tools and improved protection from production and income loss, to improve the efficiency and integrity of the Federal crop insurance program, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the Senate amendment, insert the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Agricultural Risk Protection Act of 2000''. (b) Table of Contents.--The table of contents of this Act is as follows: TITLE I--CROP INSURANCE COVERAGE Subtitle A--Crop Insurance Coverage Sec. 101. Premium schedule for additional coverage. Sec. 102. Premium schedule for other plans of insurance. Sec. 103. Catastrophic risk protection. Sec. 104. Administrative fee for additional coverage. Sec. 105. Assigned yields and actual production history adjustments. Sec. 106. Review and adjustment in rating methodologies. Sec. 107. Quality adjustment. Sec. 108. Double insurance and prevented planting. Sec. 109. Noninsured crop disaster assistance program. Subtitle B--Improving Program Integrity Sec. 121. Improving program compliance and integrity. Sec. 122. Protection of confidential information. Sec. 123. Good farming practices. Sec. 124. Records and reporting. Subtitle C--Research and Pilot Programs Sec. 131. Research and development. Sec. 132. Pilot programs. Sec. 133. Education and risk management assistance. Sec. 134. Options pilot program. Subtitle D--Administration Sec. 141. Relation to other laws. Sec. 142. Management of Corporation. Sec. 143. Contracting for rating of plans of insurance. Sec. 144. Electronic availability of crop insurance information. Sec. 145. Adequate coverage for States. Sec. 146. Submission of policies and materials to Board. Sec. 147. Funding. Sec. 148. Standard Reinsurance Agreement. Subtitle E--Miscellaneous Sec. 161. Limitation on revenue coverage for potatoes. Sec. 162. Crop insurance coverage for cotton and rice. Sec. 163. Indemnity payments for certain producers. Sec. 164. Sense of Congress regarding the Federal crop insurance program. Sec. 165. Sense of Congress on rural America, including minority and limited-resource farmers. Subtitle F--Effective Dates and Implementation Sec. 171. Effective dates. Sec. 172. Regulations. Sec. 173. Savings clause. TITLE II--AGRICULTURAL ASSISTANCE Subtitle A--Market Loss Assistance Sec. 201. Market loss assistance. Sec. 202. Oilseeds. Sec. 203. Specialty crops. Sec. 204. Other commodities. Sec. 205. Payments in lieu of loan deficiency payments. Sec. 206. Expansion of producers eligible for loan deficiency payments. Subtitle B--Conservation Sec. 211. Conservation assistance. Sec. 212. Condition on development of Little Darby National Wildlife Refuge, Ohio. Subtitle C--Research Sec. 221. Carbon cycle research. Sec. 222. Tobacco research for medicinal purposes. Sec. 223. Research on soil science and forest health management. Sec. 224. Research on waste streams from livestock production. Sec. 225. Improved storage and management of livestock and poultry waste. Sec. 226. Ethanol research pilot plant. Sec. 227. Bioinformatics Institute for Model Plant Species. Subtitle D--Agricultural Marketing Sec. 231. Value-added agricultural product market development grants. Subtitle E--Nutrition Programs Sec. 241. Calculation of minimum amount of commodities for school lunch requirements. Sec. 242. School lunch data. Sec. 243. Child and adult care food program integrity. Sec. 244. Adjustments to WIC program. Subtitle F--Other Programs Sec. 251. Authority to provide loan in connection with boll weevil eradication. Sec. 252. Animal disease control. Sec. 253. Emergency loans for seed producers. Sec. 254. Temporary suspension of authority to combine certain offices. Sec. 255. Farm operating loan eligibility. Sec. 256. Water systems for rural and Native villages in Alaska. Sec. 257. Crop and pasture flood compensation program. Sec. 258. Flood mitigation near Pierre, South Dakota. Sec. 259. Restoration of eligibility for crop loss assistance. Subtitle G--Administration Sec. 261. Funding. Sec. 262. Obligation period. Sec. 263. Regulations. Sec. 264. Paygo adjustment. Sec. 265. Commodity Credit Corporation reimbursement. TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000 Sec. 301. Short title. Sec. 302. Findings. Sec. 303. Definitions. Sec. 304. Cooperation and coordination in biomass research and development. Sec. 305. Biomass Research and Development Board. Sec. 306. Biomass Research and Development Technical Advisory Committee. Sec. 307. Biomass Research And Development Initiative. Sec. 308. Administrative support and funds. Sec. 309. Reports. Sec. 310. Termination of authority. TITLE IV--PLANT PROTECTION ACT Sec. 401. Short title. Sec. 402. Findings. Sec. 403. Definitions. [[Page H3764]] Subtitle A--Plant Protection Sec. 411. Regulation of movement of plant pests. Sec. 412. Regulation of movement of plants, plant products, biological control organisms, noxious weeds, articles, and means of conveyance. Sec. 413. Notification and holding requirements upon arrival. Sec. 414. General remedial measures for new plant pests and noxious weeds. Sec. 415. Declaration of extraordinary emergency and resulting authorities. Sec. 416. Recovery of compensation for unauthorized activities. Sec. 417. Control of grasshoppers and mormon crickets. Sec. 418. Certification for exports. Subtitle B--Inspection and Enforcement Sec. 421. Inspections, seizures, and warrants. Sec. 422. Collection of information. Sec. 423. Subpoena authority. Sec. 424. Penalties for violation. Sec. 425. Enforcement actions of attorney general. Sec. 426. Court jurisdiction. Subtitle C--Miscellaneous Provisions Sec. 431. Cooperation. Sec. 432. Buildings, land, people, claims, and agreements. Sec. 433. Reimbursable agreements. Sec. 434. Regulations and orders. Sec. 435. Protection for mail handlers. Sec. 436. Preemption. Sec. 437. Severability. Sec. 438. Repeal of superseded laws. Subtitle D--Authorization of Appropriations Sec. 441. Authorization of appropriations. Sec. 442. Transfer authority. TITLE V--INSPECTION ANIMALS Sec. 501. Civil penalty. Sec. 502. Subpoena authority. TITLE I--CROP INSURANCE Subtitle A--Crop Insurance Coverage SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE. (a) Expected Market Price.--Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (5) and inserting the following: ``(5) Expected market price.-- ``(A) Establishment or approval.--For the purposes of this title, the Corporation shall establish or approve the price level (referred to in this title as the `expected market price') of each agricultural commodity for which insurance is offered. ``(B) General rule.--Except as otherwise provided in subparagraph (C), the expected market price of an agricultural commodity shall be not less than the projected market price of the agricultural commodity, as determined by the Corporation. ``(C) Other authorized approaches.--The expected market price of an agricultural commodity-- ``(i) may be based on the actual market price of the agricultural commodity at the time of harvest, as determined by the Corporation; ``(ii) in the case of revenue and other similar plans of insurance, may be the actual market price of the agricultural commodity, as determined by the Corporation; ``(iii) in the case of cost of production or similar plans of insurance, shall be the projected cost of producing the agricultural commodity, as determined by the Corporation; or ``(iv) in the case of other plans of insurance, may be an appropriate amount, as determined by the Corporation.''. (b) Premium Amounts.--Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)) is amended-- (1) in paragraph (2), by striking subparagraphs (B) and (C) and inserting the following: ``(B) In the case of additional coverage equal to or greater than 50 percent of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount of the premium shall-- ``(i) be sufficient to cover anticipated losses and a reasonable reserve; and ``(ii) include an amount for operating and administrative expenses, as determined by the Corporation, on an industry- wide basis as a percentage of the amount of the premium used to define loss ratio.''; and (2) by adding at the end the following: ``(3) Performance-based discount.--The Corporation may provide a performance-based premium discount for a producer of an agricultural commodity who has good insurance or production experience relative to other producers of that agricultural commodity in the same area, as determined by the Corporation.''. (c) Payment Schedule.--Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended-- (1) in the matter preceding the subparagraphs, by striking ``The amount'' and inserting ``Subject to paragraph (4), the amount''; and (2) by striking subparagraphs (B) and (C) and inserting the following: ``(B) In the case of additional coverage equal to or greater than 50 percent, but less than 55 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 67 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(C) In the case of additional coverage equal to or greater than 55 percent, but less than 65 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 64 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(D) In the case of additional coverage equal to or greater than 65 percent, but less than 75 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 59 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(E) In the case of additional coverage equal to or greater than 75 percent, but less than 80 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 55 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(F) In the case of additional coverage equal to or greater than 80 percent, but less than 85 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 48 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(G) Subject to subsection (c)(4), in the case of additional coverage equal to or greater than 85 percent of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 38 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.''. (d) Temporary Prohibition on Continuous Coverage.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by striking paragraph (4) and inserting the following: ``(4) Temporary prohibition on continuous coverage.-- Notwithstanding paragraph (2), during each of the 2001 through 2005 reinsurance years, additional coverage under subsection (c) shall be available only in 5 percent increments beginning at 50 percent of the recorded or appraised average yield.''. (e) Premium Payment Disclosure.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following: ``(5) Premium payment disclosure.--Each policy or plan of insurance under this title shall prominently indicate the dollar amount of the portion of the premium paid by the Corporation.''. (f) Conforming Amendment.--Section 508(g)(2)(D) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by striking ``(as provided in subsection (e)(4))''. SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE. (a) Premium Schedule.--Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended-- (1) in paragraph (2), by striking the second sentence; and (2) by striking paragraph (5) and inserting the following: ``(5) Premium schedule.-- ``(A) Payment by corporation.--In the case of a policy or plan of insurance developed and approved under this subsection or section 522, or conducted under section 523 (other than a policy or plan of insurance applicable to livestock), the Corporation shall pay a portion of the premium of the policy or plan of insurance that is equal to-- ``(i) the percentage, specified in subsection (e) for a similar level of coverage, of the total amount of the premium used to define loss ratio; and ``(ii) an amount for administrative and operating expenses determined in accordance with subsection (k)(4). ``(B) Transitional schedule.--Effective only during the 2001 reinsurance year, in the case of a policy or plan of insurance developed and approved under this subsection or section 522, or conducted under section 523 (other than a policy or plan of insurance applicable to livestock), and first approved by the Board after the date of enactment of this subparagraph, the payment by the Corporation of a portion of the premium of the policy may not exceed the dollar amount that would otherwise be authorized under subsection (e) (consistent with subsection (c)(5), as in effect on the day before the date of enactment of this subparagraph).''. [[Page H3765]] (b) Reimbursement Rate.--Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding at the end the following: ``(C) Other reductions.--Beginning with the 2002 reinsurance year, in the case of a policy or plan of insurance approved by the Board that was not reinsured during the 1998 reinsurance year but, had it been reinsured, would have received a reduced rate of reimbursement during the 1998 reinsurance year, the rate of reimbursement for administrative and operating costs established for the policy or plan of insurance shall take into account the factors used to determine the rate of reimbursement for administrative and operating costs during the 1998 reinsurance year, including the expected difference in premium and actual administrative and operating costs of the policy or plan of insurance relative to an individual yield policy or plan of insurance and other appropriate factors, as determined by the Corporation.''. SEC. 103. CATASTROPHIC RISK PROTECTION. (a) Alternative Coverage.--Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended by striking paragraph (3) and inserting the following: ``(3) Alternative catastrophic coverage.--Beginning with the 2001 crop year, the Corporation shall offer producers of an agricultural commodity the option of selecting either of the following: ``(A) The catastrophic risk protection coverage available under paragraph (2)(A). ``(B) An alternative catastrophic risk protection coverage that-- ``(i) indemnifies the producer on an area yield and loss basis if such a policy or plan of insurance is offered for the agricultural commodity in the county in which the farm is located; ``(ii) provides, on a uniform national basis, a higher combination of yield and price protection than the coverage available under paragraph (2)(A); and ``(iii) the Corporation determines is comparable to the coverage available under paragraph (2)(A) for purposes of subsection (e)(2)(A).''. (b) Administrative Fee.-- (1) Revised fee.--Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended-- (A) in subparagraph (A), by striking ``$50'' and inserting ``$100''; (B) by striking subparagraph (B); and (C) in subparagraph (C), by striking ``amounts required under subparagraphs (A) and (B)'' and inserting ``administrative fee required by this paragraph''. (2) Conforming amendment.--Section 748 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (as contained in section 101(a) of division A of Public Law 105-277; 7 U.S.C. 1508 note), is amended by striking ``$50'' and inserting ``$100''. (c) Payment of Administrative Fee on Behalf of Producers.-- Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)), as amended by subsection (b)(1)(B), is amended by inserting after subparagraph (A) the following: ``(B) Payment on behalf of producers.-- ``(i) Payment authorized.--If State law permits a licensing fee or other payment to be paid by an insurance provider to a cooperative association or trade association and rebated to a producer with catastrophic risk protection or additional coverage, a cooperative association or trade association located in that State may pay, on behalf of a member of the association in that State or a contiguous State who consents to be insured under such an arrangement, all or a portion of the administrative fee required by this paragraph for catastrophic risk protection. ``(ii) Treatment of licensing fees.--A licensing fee or other payment made by an insurance provider to the cooperative association or trade association in connection with the issuance of catastrophic risk protection or additional coverage to members of the cooperative association or trade association shall be subject to the laws regarding rebates of the State in which the fee or other payment is made. ``(iii) Selection of provider.--Nothing in this subparagraph limits the option of a producer to select the licensed insurance agent or other approved insurance provider from whom the producer will purchase a policy or plan of insurance or to refuse coverage for which a payment is offered to be made under clause (i). ``(iv) Delivery of insurance.--A policy or plan of insurance for which a payment is made under clause (i) shall be delivered by a licensed insurance agent or other approved insurance provider. ``(v) Additional coverage encouraged.--A cooperative association or trade association, and any approved insurance provider with whom a licensing fee or other arrangement under this subparagraph is made, shall encourage producer members to purchase appropriate levels of additional coverage in order to meet the risk management needs of the member producers. ``(vi) Report.--Not later than April 1, 2002, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that evaluates-- ``(I) the operation of this subparagraph; and ``(II) the impact of this subparagraph on participation in the Federal crop insurance program, including the impact on levels of coverage purchased.''. (d) Reimbursement Rate Change.--Section 508(b)(11) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by striking ``11 percent'' and inserting ``8 percent''. SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE. Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (10) and inserting the following: ``(10) Administrative fee.-- ``(A) Fee required.--If a producer elects to purchase coverage for a crop at a level in excess of catastrophic risk protection, the producer shall pay an administrative fee for the additional coverage of $30 per crop per county. ``(B) Use of fees; waiver.--Subparagraphs (D) and (E) of subsection (b)(5) shall apply with respect to the collection and use of administrative fees under this paragraph.''. SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY ADJUSTMENTS. (a) Assigned Yields.--Section 508(g)(2)(B) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended-- (1) by striking ``assigned a yield'' and inserting ``assigned-- ``(i) a yield''; (2) by striking the period at the end and inserting ``; or''; and (3) by adding at the end the following: ``(ii) a yield determined by the Corporation, in the case of-- ``(I) a producer that has not had a share of the production of the insured crop for more than 2 crop years, as determined by the Secretary; ``(II) a producer that produces an agricultural commodity on land that has not been farmed by the producer; or ``(III) a producer that rotates a crop produced on a farm to a crop that has not been produced on the farm.''. (b) Actual Production History Adjustments.--Section 508(g) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)) is amended by adding at the end the following: ``(4) Adjustment in actual production history to establish insurable yields.-- ``(A) Application.--This paragraph shall apply whenever the Corporation uses the actual production records of the producer to establish the producer's actual production history for an agricultural commodity for any of the 2001 and subsequent crop years. ``(B) Election to use percentage of transitional yield.-- If, for 1 or more of the crop years used to establish the producer's actual production history of an agricultural commodity, the producer's recorded or appraised yield of the commodity was less than 60 percent of the applicable transitional yield, as determined by the Corporation, the Corporation shall, at the election of the producer-- ``(i) exclude any of such recorded or appraised yield; and ``(ii) replace each excluded yield with a yield equal to 60 percent of the applicable transitional yield. ``(C) Premium adjustment.--In the case of a producer that makes an election under subparagraph (B), the Corporation shall adjust the premium to reflect the risk associated with the adjustment made in the actual production history of the producer. ``(5) Adjustment to reflect increased yields from successful pest control efforts.-- ``(A) Situations justifying adjustment.--The Corporation shall develop a methodology for adjusting the actual production history of a producer when each of the following apply: ``(i) The producer's farm is located in an area where systematic, area-wide efforts have been undertaken using certain operations or measures, or the producer's farm is a location at which certain operations or measures have been undertaken, to detect, eradicate, suppress, or control, or at least to prevent or retard the spread of, a plant disease or plant pest, including a plant pest (as defined in section 102 of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 147a)). ``(ii) The presence of the plant disease or plant pest has been found to adversely affect the yield of the agricultural commodity for which the producer is applying for insurance. ``(iii) The efforts described in clause (i) have been effective. ``(B) Adjustment amount.--The amount by which the Corporation adjusts the actual production history of a producer of an agricultural commodity shall reflect the degree to which the success of the systematic, area-wide efforts described in subparagraph (A), on average, increases the yield of the commodity on the producer's farm, as determined by the Corporation.''. SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES. Section 508(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(i)) is amended-- (1) by striking ``The Corporation'' and inserting the following: ``(1) In general.--The Corporation''; and (2) by adding at the end the following: ``(2) Review of rating methodologies.--To maximize participation in the Federal crop insurance program and to ensure equity for producers, the Corporation shall periodically review the methodologies employed for rating plans of insurance under this title consistent with section 507(c)(2). ``(3) Analysis of rating and loss history.--The Corporation shall analyze the rating and loss history of approved policies and plans of insurance for agricultural commodities by area. ``(4) Premium adjustment.--If the Corporation makes a determination that premium rates are excessive for an agricultural commodity in an area relative to the requirements of subsection (d)(2) for that area, then, for the 2002 crop year (and as necessary thereafter), the Corporation shall make appropriate adjustments in the premium rates for that area for that agricultural commodity.''. SEC. 107. QUALITY ADJUSTMENT. Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by striking subsection (m) and inserting the following: [[Page H3766]] ``(m) Quality Loss Adjustment Coverage.-- ``(1) Effect of coverage.--If a policy or plan of insurance offered under this title includes quality loss adjustment coverage, the coverage shall provide for a reduction in the quantity of production of the agricultural commodity considered produced during a crop year, or a similar adjustment, as a result of the agricultural commodity not meeting the quality standards established in the policy or plan of insurance. ``(2) Additional quality loss adjustment.-- ``(A) Producer option.--Notwithstanding any other provision of law, in addition to the quality loss adjustment coverage available under paragraph (1), the Corporation shall offer producers the option of purchasing quality loss adjustment coverage on a basis that is smaller than a unit with respect to an agricultural commodity that satisfies each of the following: ``(i) The agricultural commodity is sold on an identity- preserved basis. ``(ii) All quality determinations are made solely by the Federal agency designated to grade or classify the agricultural commodity. ``(iii) All quality determinations are made in accordance with standards published by the Federal agency in the Federal Register. ``(iv) The discount schedules that reflect the reduction in quality of the agricultural commodity are established by the Secretary. ``(B) Basis for adjustment.--Under this paragraph, the Corporation shall set the quality standards below which quality losses will be paid based on the variability of the grade of the agricultural commodity from the base quality for the agricultural commodity. ``(3) Review of criteria and procedures.--The Corporation shall contract with a qualified person to review the quality loss adjustment procedures of the Corporation so that the procedures more accurately reflect local quality discounts that are applied to agricultural commodities insured under this title. Based on the review, the Corporation shall make adjustments in the procedures, taking into consideration the actuarial soundness of the adjustment and the prevention of fraud, waste, and abuse.''. SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING. The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended by inserting after section 508 (7 U.S.C. 1508) the following: ``SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING. ``(a) Definitions.--In this section: ``(1) First crop.--The term `first crop' means the first crop of the first agricultural commodity planted for harvest, or prevented from being planted, on specific acreage during a crop year and insured under this title. ``(2) Second crop.--The term `second crop' means a second crop of the same agricultural commodity as the first crop, or a crop of a different agricultural commodity following the first crop, planted on the same acreage as the first crop for harvest in the same crop year, except the term does not include a replanted crop. ``(3) Replanted crop.--The term `replanted crop' means any agricultural commodity replanted on the same acreage as the first crop for harvest in the same crop year if the replanting is required by the terms of the policy of insurance covering the first crop. ``(b) Double Insurance.-- ``(1) Options on loss to first crop.--Except as provided in subsections (d) and (e), if a first crop insured under this title in a crop year has a total or partial insurable loss, the producer of the first crop may elect 1 of the following options: ``(A) No second crop planted.--The producer may-- ``(i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) collect an indemnity payment that is equal to 100 percent of the insurable loss for the first crop. ``(B) Second crop planted.--The producer may-- ``(i) plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the insurable loss for the first crop. ``(2) Effect of no loss to second crop.--If a producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer may collect an indemnity payment for the first crop that is equal to-- ``(A) 100 percent of the insurable loss for the first crop; less ``(B) the amount previously collected under paragraph (1)(B)(ii). ``(3) Premium for first crop if second crop planted.-- ``(A) Initial premium.--If a producer makes an election under paragraph (1)(B), the producer shall be responsible for a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity. ``(B) Effect of no loss to second crop.--If the producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer shall be responsible for a premium for the first crop that is equal to-- ``(i) the full premium owed by the producer for the first crop; less ``(ii) the amount of premium previously paid under subparagraph (A). ``(c) Prevented Planting Coverage.-- ``(1) Options on loss to first crop.--Except as provided in subsections (d) and (e), if a first crop insured under this title in a crop year is prevented from being planted, the producer of the first crop may elect 1 of the following options: ``(A) No second crop planted.--The producer may-- ``(i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) subject to paragraph (4), collect an indemnity payment that is equal to 100 percent of the prevented planting guarantee for the acreage for the first crop. ``(B) Second crop planted.--The producer may-- ``(i) plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) subject to paragraphs (4) and (5), collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the prevented planting guarantee for the acreage for the first crop. ``(2) Premium for first crop if second planted.--If the producer makes an election under paragraph (1)(B), the producer shall pay a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity. ``(3) Effect on actual production history.--Except in the case of double cropping described in subsection (d), if a producer make an election under paragraph (1)(B) for a crop year, the Corporation shall assign the producer a recorded yield for that crop year for the first crop equal to 60 percent of the producer's actual production history for the agricultural commodity involved, for purposes of determining the producer's actual production history for subsequent crop years. ``(4) Area conditions required for payment.--The Corporation shall limit prevented planting payments for producers to those situations in which other producers, in the area where a first crop is prevented from being planted is located, are also generally affected by the conditions that prevented the first crop from being planted. ``(5) Planting date.--If a producer plants the second crop before the latest planting date established by the Corporation for the first crop, the Corporation shall not make a prevented planting payment with regard to the first crop. ``(d) Exception for Established Double Cropping Practices.--A producer may receive full indemnity payments on 2 or more crops planted for harvest in the same crop year and insured under this title if each of the following conditions are met: ``(1) There is an established practice of planting 2 or more crops for harvest in the same crop year in the area, as determined by the Corporation. ``(2) An additional coverage policy or plan of insurance is offered with respect to the agricultural commodities planted on the same acreage for harvest in the same crop year in the area. ``(3) The producer has a history of planting 2 or more crops for harvest in the same crop year or the applicable acreage has historically had 2 or more crops planted for harvest in the same crop year. ``(4) The second or more crops are customarily planted after the first crop for harvest on the same acreage in the same year in the area. ``(e) Subsequent Crops.--Except in the case of double cropping described in subsection (d), if a producer elects to plant a crop (other than a replanted crop) subsequent to a second crop on the same acreage as the first crop and second crop for harvest in the same crop year, the producer shall not be eligible for insurance under this title, or noninsured crop assistance under section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333), for the subsequent crop.''. SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM. (a) Operation and Administration of Program.--Section 196(a)(2) of the Agricultural Market Transition Act (7 U.S.C. 7333(a)(2)) is amended by adding at the end the following: ``(C) Combination of similar types or varieties.--At the option of the Secretary, all types or varieties of a crop or commodity, described in subparagraphs (A) and (B), may be considered to be a single eligible crop under this section.''. (b) Timely Application.--Section 196(b)(1) of the Agricultural Market Transition Act (7 U.S.C. 7333(b)(1)) is amended in the second sentence by striking ``at such time as the Secretary may require'' and inserting ``not later than 30 days before the beginning of the coverage period, as determined by the Secretary''. (c) Records and Reports.--Section 196(b) of the Agricultural Market Transition Act (7 U.S.C. 7333(b)) is amended-- (1) by striking paragraph (2) and inserting the following: ``(2) Records.--To be eligible for assistance under this section, a producer shall provide annually to the Secretary records of crop acreage, acreage yields, and production for each crop, as required by the Secretary.''; and (2) in paragraph (3), by inserting ``annual'' after ``shall provide''. (d) Loss Requirements.--Section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333) is amended by striking subsection (c) and inserting the following: ``(c) Loss Requirements.-- ``(1) Cause.--To be eligible for assistance under this section, a producer of an eligible crop shall have suffered a loss of a noninsured commodity as the result of a cause described in subsection (a)(3). ``(2) Assistance.--On making a determination described in subsection (a)(3), the Secretary shall provide assistance under this section to producers of an eligible crop that have suffered a loss as a result of the cause described in subsection (a)(3). ``(3) Prevented planting.--Subject to paragraph (1), the Secretary shall make a prevented planting noninsured crop disaster assistance payment if the producer is prevented from [[Page H3767]] planting more than 35 percent of the acreage intended for the eligible crop because of drought, flood, or other natural disaster, as determined by the Secretary. ``(4) Area trigger.--The Secretary shall provide assistance to individual producers without any requirement of an area loss.''. (e) Service Fee.--Section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333) is amended by adding at the end the following: ``(k) Service Fee.-- ``(1) In general.--To be eligible to receive assistance for an eligible crop for a crop year under this section, a producer shall pay to the Secretary (at the time at which the producer submits the application under subsection (b)(1)) a service fee for the eligible crop in an amount that is equal to the lesser of-- ``(A) $100 per crop per county; or ``(B) $300 per producer per county, but not to exceed a total of $900 per producer. ``(2) Waiver.--The Secretary shall waive the service fee required under paragraph (1) in the case of a limited resource farmer, as defined by the Secretary. ``(3) Use.--The Secretary shall deposit service fees collected under this subsection in the Commodity Credit Corporation Fund.''. Subtitle B--Improving Program Integrity SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY. (a) Additional Methods of Ensuring Program Compliance and Integrity.--Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1514) is amended to read as follows: ``SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY. ``(a) Purpose.-- ``(1) In general.--The purpose of this section is to improve compliance with, and the integrity of, the Federal crop insurance program. ``(2) Role of insurance providers.--The Corporation shall work actively with approved insurance providers to address program compliance and integrity issues as such issues develop. ``(b) Notification of Compliance Problems.-- ``(1) Notification of errors, omissions, and failures.--The Corporation shall notify in writing an approved insurance provider of any error, omission, or failure to follow Corporation regulations or procedures for which the approved insurance provider may be responsible and which may result in a debt owed the Corporation. ``(2) Time for notification.--Notice under paragraph (1) shall be given within 3 years after the end of the insurance period during which the error, omission, or failure is alleged to have occurred, except that this time limitation shall not apply with respect to an error, omission, or procedural violation that is willful or intentional. ``(3) Effect of failure to timely notify.--Except as provided in paragraph (2), the failure to timely provide the notice required under this subsection shall relieve the approved insurance provider from the debt owed the Corporation. ``(c) Reconciling Producer Information.--The Secretary shall develop and implement a coordinated plan for the Corporation and the Farm Service Agency to reconcile all relevant information received by the Corporation or the Farm Service Agency from a producer who obtains crop insurance coverage under this title. Beginning with the 2001 crop year, the Secretary shall require that the Corporation and the Farm Service Agency reconcile such producer-derived information on at least an annual basis in order to identify and address any discrepancies. ``(d) Identification and Elimination of Fraud, Waste, and Abuse.-- ``(1) FSA monitoring program.--The Secretary shall develop and implement a coordinated plan for the Farm Service Agency to assist the Corporation in the ongoing monitoring of programs carried out under this title, including-- ``(A) at the request of the Corporation or, subject to paragraph (2), on its own initiative if the Farm Service Agency has reason to suspect the existence of program fraud, waste, or abuse, conducting fact finding relative to allegations of program fraud, waste, or abuse; ``(B) reporting to the Corporation, in writing in a timely manner, the results of any fact finding conducted pursuant to subparagraph (A), any allegation of fraud, waste, or abuse, and any identified program vulnerabilities; and ``(C) assisting the Corporation and approved insurance providers in auditing a statistically appropriate number of claims made under any policy or plan of insurance under this title. ``(2) FSA inquiry.--If, within 5 calendar days after receiving a report submitted under paragraph (1)(B), the Corporation does not provide a written response that describes the intended actions of the Corporation, the Farm Service Agency may conduct its own inquiry into the alleged program fraud, waste, or abuse on approval from the State director of the Farm Service Agency of the State in which the alleged fraud, waste, or abuse occurred. If as a result of the inquiry, the Farm Service Agency concludes further investigation is warranted, but the Corporation declines to proceed with the investigation, the Farm Service Agency may refer the matter to the Inspector General of the Department of Agriculture. ``(3) Use of field infrastructure.--The plan required by paragraph (1) shall provide for the use of the field infrastructure of the Farm Service Agency. The Secretary shall ensure that relevant Farm Service Agency personnel are appropriately trained for any responsibilities assigned to the personnel under the plan. At a minimum, the personnel shall receive the same level of training and pass the same basic competency tests as required of loss adjusters of approved insurance providers. ``(4) Maintenance of provider effort.-- ``(A) In general.--The activities of the Farm Service Agency under this subsection do not affect the responsibility of approved insurance providers to conduct any audits of claims or other program reviews required by the Corporation. ``(B) Notification of providers.--The Corporation shall notify the appropriate approved insurance provider of a report from the Farm Service Agency regarding alleged program fraud, waste, or abuse, unless the provider is suspected to be included in, or a party to, the alleged fraud, waste, or abuse. ``(C) Response.--An approved insurance provider that receives a notice under subparagraph (B) shall submit a report to the Corporation, within an appropriate time period determined by the Secretary, describing the actions taken by the provider to investigate the allegations of program fraud, waste, or abuse contained in the notice. ``(5) Corporation response to provider reports.-- ``(A) Prompt response.--If an approved insurance provider reports to the Corporation that the approved insurance provider suspects intentional misrepresentation, fraud, waste, or abuse, the Corporation shall make a determination and provide, within 90 calendar days after receiving the report, a written response that describes the intended actions of the Corporation. ``(B) Cooperative effort.--The approved insurance provider and the Corporation shall take coordinated action in any case where misrepresentation, fraud, waste, or abuse is alleged. ``(C) Failure to timely respond.--If the Corporation fails to respond as required by subparagraph (A), an approved insurance provider may request the Farm Service Agency to assist the provider in an inquiry into the alleged program fraud, waste, or abuse. ``(e) Consultation with State FSA Committees.--The Secretary shall establish procedures under which the Corporation shall consult with the State committee of the Farm Service Agency for a State with respect to policies, plans of insurance, and material related to such policies or plans of insurance (including applicable sales closing dates, assigned yields, and transitional yields) offered in that State under this title. ``(f) Detection of Disparate Performance.-- ``(1) Covered activities.--The Secretary shall establish procedures under which the Corporation will be able to identify the following: ``(A) Any agent engaged in the sale of coverage offered under this title where the loss claims associated with such sales by the agent are equal to or greater than 150 percent (or an appropriate percentage specified by the Corporation) of the mean for all loss claims associated with such sales by all other agents operating in the same area, as determined by the Corporation. ``(B) Any person performing loss adjustment services relative to coverage offered under this title where such loss adjustments performed by the person result in accepted or denied claims equal to or greater than 150 percent (or an appropriate percentage specified by the Corporation) of the mean for accepted or denied claims (as applicable) for all other persons performing loss adjustment services in the same area, as determined by the Corporation. ``(2) Review.-- ``(A) Review required.--The Corporation shall conduct a review of any agent identified pursuant to paragraph (1)(A), and any person identified pursuant to paragraph (1)(B), to determine whether the higher loss claims associated with the agent or the higher number of accepted or denied claims (as applicable) associated with the person are the result of fraud, waste, or abuse. ``(B) Remedial action.--The Corporation shall take appropriate remedial action with respect to any occurrence of fraud, waste, or abuse identified in a review conducted under this paragraph. ``(3) Oversight of agents and loss adjusters.--The Corporation shall develop procedures to require an annual review by an approved insurance provider of the performance of each agent and loss adjuster used by the approved insurance provider. The Corporation shall oversee the conduct of annual reviews and may consult with an approved insurance provider regarding any remedial action that is determined to be necessary as a result of the annual review of an agent or loss adjuster. ``(g) Submission of Information to Corporation to Support Compliance Efforts.-- ``(1) Types of information required.--The Secretary shall establish procedures under which approved insurance providers shall submit to the Corporation the following information with respect to each policy or plan of insurance offered under this title: ``(A) The name and identification number of the insured. ``(B) The agricultural commodity to be insured. ``(C) The elected coverage level, including the price election, of the insured. ``(2) Time for submission.--The information required by paragraph (1) with respect to a policy or plan of insurance shall be submitted so as to ensure receipt by the Corporation not later than the Saturday of the week containing the calendar day that is 30 days after the applicable sales closing date for the crop to be insured. ``(h) Sanctions for Program Noncompliance and Fraud.-- ``(1) False information.--A producer, agent, loss adjuster, approved insurance provider, or other person that willfully and intentionally provides any false or inaccurate information to the Corporation or to an approved insurance provider with respect to a policy or plan of insurance under this title may, after notice and an opportunity for a hearing on the record, be subject to 1 or more of the sanctions described in paragraph (3). [[Page H3768]] ``(2) Compliance.--A person may, after notice and an opportunity for a hearing on the record, be subject to 1 or more of the sanctions described in paragraph (3) if the person is a producer, agent, loss adjuster, approved insurance provider, or other person that willfully and intentionally fails to comply with a requirement of the Corporation. ``(3) Authorized sanctions.--If the Secretary determines that a person covered by this subsection has committed a material violation under paragraph (1) or (2), the following sanctions may be imposed: ``(A) Civil fines.--A civil fine may be imposed for each violation in an amount not to exceed the greater of-- ``(i) the amount of the pecuniary gain obtained as a result of the false or inaccurate information provided or the noncompliance with a requirement of this title; or ``(ii) $10,000. ``(B) Producer disqualification.--In the case of a violation committed by a producer, the producer may be disqualified for a period of up to 5 years from receiving any monetary or nonmonetary benefit provided under each of the following: ``(i) This title. ``(ii) The Agricultural Market Transition Act (7 U.S.C. 7201 et seq.), including the noninsured crop disaster assistance program under section 196 of that Act (7 U.S.C. 7333). ``(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.). ``(iv) The Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.). ``(v) The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.). ``(vi) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.). ``(vii) The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.). ``(viii) Any law that provides assistance to a producer of an agricultural commodity affected by a crop loss or a decline in the prices of agricultural commodities. ``(C) Disqualification of other persons.--In the case of a violation committed by an agent, loss adjuster, approved insurance provider, or other person (other than a producer), the violator may be disqualified for a period of up to 5 years from participating in any program, or receiving any benefit, under this title. ``(4) Assessment of sanction.--The Secretary shall consider the gravity of the violation of the person covered by this subsection in determining-- ``(A) whether to impose a sanction under this subsection; and ``(B) the type and amount of the sanction to be imposed. ``(5) Disclosure of sanctions.--Each policy or plan of insurance under this title shall provide notice describing the sanctions prescribed under paragraph (3) for willfully and intentionally-- ``(A) providing false or inaccurate information to the Corporation or to an approved insurance provider; or ``(B) failing to comply with a requirement of the Corporation. ``(6) Insurance fund.--Any funds collected under this subsection shall be deposited into the insurance fund established under section 516(c). ``(i) Annual Report on Program Compliance and Integrity Efforts.-- ``(1) Report required.--The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report describing the operation of this section during the preceding year and efforts undertaken by the Secretary and the Corporation to carry out this section. ``(2) Information regarding fraud, waste, and abuse.--The report shall identify specific occurrences of waste, fraud, or abuse and contain an outline of actions that have been or are being taken to eliminate the identified waste, fraud, or abuse. ``(j) Information Management.-- ``(1) Systems upgrades.--The Secretary shall upgrade the information management systems of the Corporation used in the administration and enforcement and this title. In upgrading the systems, the Secretary shall ensure that new hardware and software are compatible with the hardware and software used by other agencies of the Department to maximize data sharing and promote the purpose of this section. ``(2) Use of available information technologies.--The Secretary shall use the information technologies known as data mining and data warehousing and other available information technologies to administer and enforce this title. ``(3) Use of private sector.--The Secretary may enter into contracts to use private sector expertise and technological resources in implementing this subsection. ``(k) Funding.-- ``(1) Available funds.--To carry out this section and sections 502(c), 506(h), 508(a)(3)(B), and 508(f)(3)(A), the Corporation may use, from amounts made available from the insurance fund established under section 516(c), not more than $23,000,000 during the period of fiscal years 2001 through 2005, of which not more than $9,000,000 shall be available for fiscal year 2001. ``(2) Prohibition.--None of the funds made available under paragraph (1) may be used to pay the salaries of employees of the Corporation.''. (b) Conforming Amendment.--Section 506 of the Federal Crop Insurance Act (7 U.S.C. 1506) is amended-- (1) by striking subsection (q); and (2) by redesignating subsections (r) and (s) as subsections (q) and (r), respectively. SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION. Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is amended by adding at the end the following: ``(c) Protection of Confidential Information.-- ``(1) General prohibition against disclosure.--Except as provided in paragraph (2), the Secretary, any other officer or employee of the Department or an agency thereof, an approved insurance provider and its employees and contractors, and any other person may not disclose to the public information furnished by a producer under this title. ``(2) Authorized disclosure.-- ``(A) Disclosure in statistical or aggregate form.-- Information described in paragraph (1) may be disclosed to the public if the information has been transformed into a statistical or aggregate form that does not allow the identification of the person who supplied particular information. ``(B) Consent of producer.--A producer may consent to the disclosure of information described in paragraph (1). The participation of the producer in, and the receipt of any benefit by the producer under, this title or any other program administered by the Secretary may not be conditioned on the producer providing consent under this paragraph. ``(3) Violations; penalties.--Section 1770(c) of the Food Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect to the release of information collected in any manner or for any purpose prohibited by this subsection.''. SEC. 123. GOOD FARMING PRACTICES. Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amended by striking paragraph (3) and inserting the following: ``(3) Exclusion of losses due to certain actions of producer.-- ``(A) Exclusions.--Insurance provided under this subsection shall not cover losses due to-- ``(i) the neglect or malfeasance of the producer; ``(ii) the failure of the producer to reseed to the same crop in such areas and under such circumstances as it is customary to reseed; or ``(iii) the failure of the producer to follow good farming practices, including scientifically sound sustainable and organic farming practices. ``(B) Good farming practices.-- ``(i) Informal administrative process.--A producer shall ha

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CONFERENCE REPORT ON H.R. 2559, AGRICULTURAL RISK PROTECTION ACT OF 2000
(House of Representatives - May 24, 2000)

Text of this article available as: TXT PDF [Pages H3763-H3804] CONFERENCE REPORT ON H.R. 2559, AGRICULTURAL RISK PROTECTION ACT OF 2000 Mr. COMBEST submitted the following conference report and statement on the bill (H.R. 2559) to amend the Federal Crop Insurance Act to strengthen the safety net for agricultural producers by providing greater access to more affordable risk management tools and improved protection from production and income loss, to improve the efficiency and integrity of the Federal crop insurance program, and for other purposes. Conference Report (H. Rept. 106-639) The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 2559), to amend the Federal Crop Insurance Act to strengthen the safety net for agricultural producers by providing greater access to more affordable risk management tools and improved protection from production and income loss, to improve the efficiency and integrity of the Federal crop insurance program, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the Senate amendment, insert the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Agricultural Risk Protection Act of 2000''. (b) Table of Contents.--The table of contents of this Act is as follows: TITLE I--CROP INSURANCE COVERAGE Subtitle A--Crop Insurance Coverage Sec. 101. Premium schedule for additional coverage. Sec. 102. Premium schedule for other plans of insurance. Sec. 103. Catastrophic risk protection. Sec. 104. Administrative fee for additional coverage. Sec. 105. Assigned yields and actual production history adjustments. Sec. 106. Review and adjustment in rating methodologies. Sec. 107. Quality adjustment. Sec. 108. Double insurance and prevented planting. Sec. 109. Noninsured crop disaster assistance program. Subtitle B--Improving Program Integrity Sec. 121. Improving program compliance and integrity. Sec. 122. Protection of confidential information. Sec. 123. Good farming practices. Sec. 124. Records and reporting. Subtitle C--Research and Pilot Programs Sec. 131. Research and development. Sec. 132. Pilot programs. Sec. 133. Education and risk management assistance. Sec. 134. Options pilot program. Subtitle D--Administration Sec. 141. Relation to other laws. Sec. 142. Management of Corporation. Sec. 143. Contracting for rating of plans of insurance. Sec. 144. Electronic availability of crop insurance information. Sec. 145. Adequate coverage for States. Sec. 146. Submission of policies and materials to Board. Sec. 147. Funding. Sec. 148. Standard Reinsurance Agreement. Subtitle E--Miscellaneous Sec. 161. Limitation on revenue coverage for potatoes. Sec. 162. Crop insurance coverage for cotton and rice. Sec. 163. Indemnity payments for certain producers. Sec. 164. Sense of Congress regarding the Federal crop insurance program. Sec. 165. Sense of Congress on rural America, including minority and limited-resource farmers. Subtitle F--Effective Dates and Implementation Sec. 171. Effective dates. Sec. 172. Regulations. Sec. 173. Savings clause. TITLE II--AGRICULTURAL ASSISTANCE Subtitle A--Market Loss Assistance Sec. 201. Market loss assistance. Sec. 202. Oilseeds. Sec. 203. Specialty crops. Sec. 204. Other commodities. Sec. 205. Payments in lieu of loan deficiency payments. Sec. 206. Expansion of producers eligible for loan deficiency payments. Subtitle B--Conservation Sec. 211. Conservation assistance. Sec. 212. Condition on development of Little Darby National Wildlife Refuge, Ohio. Subtitle C--Research Sec. 221. Carbon cycle research. Sec. 222. Tobacco research for medicinal purposes. Sec. 223. Research on soil science and forest health management. Sec. 224. Research on waste streams from livestock production. Sec. 225. Improved storage and management of livestock and poultry waste. Sec. 226. Ethanol research pilot plant. Sec. 227. Bioinformatics Institute for Model Plant Species. Subtitle D--Agricultural Marketing Sec. 231. Value-added agricultural product market development grants. Subtitle E--Nutrition Programs Sec. 241. Calculation of minimum amount of commodities for school lunch requirements. Sec. 242. School lunch data. Sec. 243. Child and adult care food program integrity. Sec. 244. Adjustments to WIC program. Subtitle F--Other Programs Sec. 251. Authority to provide loan in connection with boll weevil eradication. Sec. 252. Animal disease control. Sec. 253. Emergency loans for seed producers. Sec. 254. Temporary suspension of authority to combine certain offices. Sec. 255. Farm operating loan eligibility. Sec. 256. Water systems for rural and Native villages in Alaska. Sec. 257. Crop and pasture flood compensation program. Sec. 258. Flood mitigation near Pierre, South Dakota. Sec. 259. Restoration of eligibility for crop loss assistance. Subtitle G--Administration Sec. 261. Funding. Sec. 262. Obligation period. Sec. 263. Regulations. Sec. 264. Paygo adjustment. Sec. 265. Commodity Credit Corporation reimbursement. TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000 Sec. 301. Short title. Sec. 302. Findings. Sec. 303. Definitions. Sec. 304. Cooperation and coordination in biomass research and development. Sec. 305. Biomass Research and Development Board. Sec. 306. Biomass Research and Development Technical Advisory Committee. Sec. 307. Biomass Research And Development Initiative. Sec. 308. Administrative support and funds. Sec. 309. Reports. Sec. 310. Termination of authority. TITLE IV--PLANT PROTECTION ACT Sec. 401. Short title. Sec. 402. Findings. Sec. 403. Definitions. [[Page H3764]] Subtitle A--Plant Protection Sec. 411. Regulation of movement of plant pests. Sec. 412. Regulation of movement of plants, plant products, biological control organisms, noxious weeds, articles, and means of conveyance. Sec. 413. Notification and holding requirements upon arrival. Sec. 414. General remedial measures for new plant pests and noxious weeds. Sec. 415. Declaration of extraordinary emergency and resulting authorities. Sec. 416. Recovery of compensation for unauthorized activities. Sec. 417. Control of grasshoppers and mormon crickets. Sec. 418. Certification for exports. Subtitle B--Inspection and Enforcement Sec. 421. Inspections, seizures, and warrants. Sec. 422. Collection of information. Sec. 423. Subpoena authority. Sec. 424. Penalties for violation. Sec. 425. Enforcement actions of attorney general. Sec. 426. Court jurisdiction. Subtitle C--Miscellaneous Provisions Sec. 431. Cooperation. Sec. 432. Buildings, land, people, claims, and agreements. Sec. 433. Reimbursable agreements. Sec. 434. Regulations and orders. Sec. 435. Protection for mail handlers. Sec. 436. Preemption. Sec. 437. Severability. Sec. 438. Repeal of superseded laws. Subtitle D--Authorization of Appropriations Sec. 441. Authorization of appropriations. Sec. 442. Transfer authority. TITLE V--INSPECTION ANIMALS Sec. 501. Civil penalty. Sec. 502. Subpoena authority. TITLE I--CROP INSURANCE Subtitle A--Crop Insurance Coverage SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE. (a) Expected Market Price.--Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (5) and inserting the following: ``(5) Expected market price.-- ``(A) Establishment or approval.--For the purposes of this title, the Corporation shall establish or approve the price level (referred to in this title as the `expected market price') of each agricultural commodity for which insurance is offered. ``(B) General rule.--Except as otherwise provided in subparagraph (C), the expected market price of an agricultural commodity shall be not less than the projected market price of the agricultural commodity, as determined by the Corporation. ``(C) Other authorized approaches.--The expected market price of an agricultural commodity-- ``(i) may be based on the actual market price of the agricultural commodity at the time of harvest, as determined by the Corporation; ``(ii) in the case of revenue and other similar plans of insurance, may be the actual market price of the agricultural commodity, as determined by the Corporation; ``(iii) in the case of cost of production or similar plans of insurance, shall be the projected cost of producing the agricultural commodity, as determined by the Corporation; or ``(iv) in the case of other plans of insurance, may be an appropriate amount, as determined by the Corporation.''. (b) Premium Amounts.--Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)) is amended-- (1) in paragraph (2), by striking subparagraphs (B) and (C) and inserting the following: ``(B) In the case of additional coverage equal to or greater than 50 percent of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount of the premium shall-- ``(i) be sufficient to cover anticipated losses and a reasonable reserve; and ``(ii) include an amount for operating and administrative expenses, as determined by the Corporation, on an industry- wide basis as a percentage of the amount of the premium used to define loss ratio.''; and (2) by adding at the end the following: ``(3) Performance-based discount.--The Corporation may provide a performance-based premium discount for a producer of an agricultural commodity who has good insurance or production experience relative to other producers of that agricultural commodity in the same area, as determined by the Corporation.''. (c) Payment Schedule.--Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended-- (1) in the matter preceding the subparagraphs, by striking ``The amount'' and inserting ``Subject to paragraph (4), the amount''; and (2) by striking subparagraphs (B) and (C) and inserting the following: ``(B) In the case of additional coverage equal to or greater than 50 percent, but less than 55 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 67 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(C) In the case of additional coverage equal to or greater than 55 percent, but less than 65 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 64 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(D) In the case of additional coverage equal to or greater than 65 percent, but less than 75 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 59 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(E) In the case of additional coverage equal to or greater than 75 percent, but less than 80 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 55 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(F) In the case of additional coverage equal to or greater than 80 percent, but less than 85 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 48 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(G) Subject to subsection (c)(4), in the case of additional coverage equal to or greater than 85 percent of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 38 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.''. (d) Temporary Prohibition on Continuous Coverage.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by striking paragraph (4) and inserting the following: ``(4) Temporary prohibition on continuous coverage.-- Notwithstanding paragraph (2), during each of the 2001 through 2005 reinsurance years, additional coverage under subsection (c) shall be available only in 5 percent increments beginning at 50 percent of the recorded or appraised average yield.''. (e) Premium Payment Disclosure.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following: ``(5) Premium payment disclosure.--Each policy or plan of insurance under this title shall prominently indicate the dollar amount of the portion of the premium paid by the Corporation.''. (f) Conforming Amendment.--Section 508(g)(2)(D) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by striking ``(as provided in subsection (e)(4))''. SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE. (a) Premium Schedule.--Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended-- (1) in paragraph (2), by striking the second sentence; and (2) by striking paragraph (5) and inserting the following: ``(5) Premium schedule.-- ``(A) Payment by corporation.--In the case of a policy or plan of insurance developed and approved under this subsection or section 522, or conducted under section 523 (other than a policy or plan of insurance applicable to livestock), the Corporation shall pay a portion of the premium of the policy or plan of insurance that is equal to-- ``(i) the percentage, specified in subsection (e) for a similar level of coverage, of the total amount of the premium used to define loss ratio; and ``(ii) an amount for administrative and operating expenses determined in accordance with subsection (k)(4). ``(B) Transitional schedule.--Effective only during the 2001 reinsurance year, in the case of a policy or plan of insurance developed and approved under this subsection or section 522, or conducted under section 523 (other than a policy or plan of insurance applicable to livestock), and first approved by the Board after the date of enactment of this subparagraph, the payment by the Corporation of a portion of the premium of the policy may not exceed the dollar amount that would otherwise be authorized under subsection (e) (consistent with subsection (c)(5), as in effect on the day before the date of enactment of this subparagraph).''. [[Page H3765]] (b) Reimbursement Rate.--Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding at the end the following: ``(C) Other reductions.--Beginning with the 2002 reinsurance year, in the case of a policy or plan of insurance approved by the Board that was not reinsured during the 1998 reinsurance year but, had it been reinsured, would have received a reduced rate of reimbursement during the 1998 reinsurance year, the rate of reimbursement for administrative and operating costs established for the policy or plan of insurance shall take into account the factors used to determine the rate of reimbursement for administrative and operating costs during the 1998 reinsurance year, including the expected difference in premium and actual administrative and operating costs of the policy or plan of insurance relative to an individual yield policy or plan of insurance and other appropriate factors, as determined by the Corporation.''. SEC. 103. CATASTROPHIC RISK PROTECTION. (a) Alternative Coverage.--Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended by striking paragraph (3) and inserting the following: ``(3) Alternative catastrophic coverage.--Beginning with the 2001 crop year, the Corporation shall offer producers of an agricultural commodity the option of selecting either of the following: ``(A) The catastrophic risk protection coverage available under paragraph (2)(A). ``(B) An alternative catastrophic risk protection coverage that-- ``(i) indemnifies the producer on an area yield and loss basis if such a policy or plan of insurance is offered for the agricultural commodity in the county in which the farm is located; ``(ii) provides, on a uniform national basis, a higher combination of yield and price protection than the coverage available under paragraph (2)(A); and ``(iii) the Corporation determines is comparable to the coverage available under paragraph (2)(A) for purposes of subsection (e)(2)(A).''. (b) Administrative Fee.-- (1) Revised fee.--Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended-- (A) in subparagraph (A), by striking ``$50'' and inserting ``$100''; (B) by striking subparagraph (B); and (C) in subparagraph (C), by striking ``amounts required under subparagraphs (A) and (B)'' and inserting ``administrative fee required by this paragraph''. (2) Conforming amendment.--Section 748 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (as contained in section 101(a) of division A of Public Law 105-277; 7 U.S.C. 1508 note), is amended by striking ``$50'' and inserting ``$100''. (c) Payment of Administrative Fee on Behalf of Producers.-- Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)), as amended by subsection (b)(1)(B), is amended by inserting after subparagraph (A) the following: ``(B) Payment on behalf of producers.-- ``(i) Payment authorized.--If State law permits a licensing fee or other payment to be paid by an insurance provider to a cooperative association or trade association and rebated to a producer with catastrophic risk protection or additional coverage, a cooperative association or trade association located in that State may pay, on behalf of a member of the association in that State or a contiguous State who consents to be insured under such an arrangement, all or a portion of the administrative fee required by this paragraph for catastrophic risk protection. ``(ii) Treatment of licensing fees.--A licensing fee or other payment made by an insurance provider to the cooperative association or trade association in connection with the issuance of catastrophic risk protection or additional coverage to members of the cooperative association or trade association shall be subject to the laws regarding rebates of the State in which the fee or other payment is made. ``(iii) Selection of provider.--Nothing in this subparagraph limits the option of a producer to select the licensed insurance agent or other approved insurance provider from whom the producer will purchase a policy or plan of insurance or to refuse coverage for which a payment is offered to be made under clause (i). ``(iv) Delivery of insurance.--A policy or plan of insurance for which a payment is made under clause (i) shall be delivered by a licensed insurance agent or other approved insurance provider. ``(v) Additional coverage encouraged.--A cooperative association or trade association, and any approved insurance provider with whom a licensing fee or other arrangement under this subparagraph is made, shall encourage producer members to purchase appropriate levels of additional coverage in order to meet the risk management needs of the member producers. ``(vi) Report.--Not later than April 1, 2002, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that evaluates-- ``(I) the operation of this subparagraph; and ``(II) the impact of this subparagraph on participation in the Federal crop insurance program, including the impact on levels of coverage purchased.''. (d) Reimbursement Rate Change.--Section 508(b)(11) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by striking ``11 percent'' and inserting ``8 percent''. SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE. Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (10) and inserting the following: ``(10) Administrative fee.-- ``(A) Fee required.--If a producer elects to purchase coverage for a crop at a level in excess of catastrophic risk protection, the producer shall pay an administrative fee for the additional coverage of $30 per crop per county. ``(B) Use of fees; waiver.--Subparagraphs (D) and (E) of subsection (b)(5) shall apply with respect to the collection and use of administrative fees under this paragraph.''. SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY ADJUSTMENTS. (a) Assigned Yields.--Section 508(g)(2)(B) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended-- (1) by striking ``assigned a yield'' and inserting ``assigned-- ``(i) a yield''; (2) by striking the period at the end and inserting ``; or''; and (3) by adding at the end the following: ``(ii) a yield determined by the Corporation, in the case of-- ``(I) a producer that has not had a share of the production of the insured crop for more than 2 crop years, as determined by the Secretary; ``(II) a producer that produces an agricultural commodity on land that has not been farmed by the producer; or ``(III) a producer that rotates a crop produced on a farm to a crop that has not been produced on the farm.''. (b) Actual Production History Adjustments.--Section 508(g) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)) is amended by adding at the end the following: ``(4) Adjustment in actual production history to establish insurable yields.-- ``(A) Application.--This paragraph shall apply whenever the Corporation uses the actual production records of the producer to establish the producer's actual production history for an agricultural commodity for any of the 2001 and subsequent crop years. ``(B) Election to use percentage of transitional yield.-- If, for 1 or more of the crop years used to establish the producer's actual production history of an agricultural commodity, the producer's recorded or appraised yield of the commodity was less than 60 percent of the applicable transitional yield, as determined by the Corporation, the Corporation shall, at the election of the producer-- ``(i) exclude any of such recorded or appraised yield; and ``(ii) replace each excluded yield with a yield equal to 60 percent of the applicable transitional yield. ``(C) Premium adjustment.--In the case of a producer that makes an election under subparagraph (B), the Corporation shall adjust the premium to reflect the risk associated with the adjustment made in the actual production history of the producer. ``(5) Adjustment to reflect increased yields from successful pest control efforts.-- ``(A) Situations justifying adjustment.--The Corporation shall develop a methodology for adjusting the actual production history of a producer when each of the following apply: ``(i) The producer's farm is located in an area where systematic, area-wide efforts have been undertaken using certain operations or measures, or the producer's farm is a location at which certain operations or measures have been undertaken, to detect, eradicate, suppress, or control, or at least to prevent or retard the spread of, a plant disease or plant pest, including a plant pest (as defined in section 102 of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 147a)). ``(ii) The presence of the plant disease or plant pest has been found to adversely affect the yield of the agricultural commodity for which the producer is applying for insurance. ``(iii) The efforts described in clause (i) have been effective. ``(B) Adjustment amount.--The amount by which the Corporation adjusts the actual production history of a producer of an agricultural commodity shall reflect the degree to which the success of the systematic, area-wide efforts described in subparagraph (A), on average, increases the yield of the commodity on the producer's farm, as determined by the Corporation.''. SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES. Section 508(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(i)) is amended-- (1) by striking ``The Corporation'' and inserting the following: ``(1) In general.--The Corporation''; and (2) by adding at the end the following: ``(2) Review of rating methodologies.--To maximize participation in the Federal crop insurance program and to ensure equity for producers, the Corporation shall periodically review the methodologies employed for rating plans of insurance under this title consistent with section 507(c)(2). ``(3) Analysis of rating and loss history.--The Corporation shall analyze the rating and loss history of approved policies and plans of insurance for agricultural commodities by area. ``(4) Premium adjustment.--If the Corporation makes a determination that premium rates are excessive for an agricultural commodity in an area relative to the requirements of subsection (d)(2) for that area, then, for the 2002 crop year (and as necessary thereafter), the Corporation shall make appropriate adjustments in the premium rates for that area for that agricultural commodity.''. SEC. 107. QUALITY ADJUSTMENT. Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by striking subsection (m) and inserting the following: [[Page H3766]] ``(m) Quality Loss Adjustment Coverage.-- ``(1) Effect of coverage.--If a policy or plan of insurance offered under this title includes quality loss adjustment coverage, the coverage shall provide for a reduction in the quantity of production of the agricultural commodity considered produced during a crop year, or a similar adjustment, as a result of the agricultural commodity not meeting the quality standards established in the policy or plan of insurance. ``(2) Additional quality loss adjustment.-- ``(A) Producer option.--Notwithstanding any other provision of law, in addition to the quality loss adjustment coverage available under paragraph (1), the Corporation shall offer producers the option of purchasing quality loss adjustment coverage on a basis that is smaller than a unit with respect to an agricultural commodity that satisfies each of the following: ``(i) The agricultural commodity is sold on an identity- preserved basis. ``(ii) All quality determinations are made solely by the Federal agency designated to grade or classify the agricultural commodity. ``(iii) All quality determinations are made in accordance with standards published by the Federal agency in the Federal Register. ``(iv) The discount schedules that reflect the reduction in quality of the agricultural commodity are established by the Secretary. ``(B) Basis for adjustment.--Under this paragraph, the Corporation shall set the quality standards below which quality losses will be paid based on the variability of the grade of the agricultural commodity from the base quality for the agricultural commodity. ``(3) Review of criteria and procedures.--The Corporation shall contract with a qualified person to review the quality loss adjustment procedures of the Corporation so that the procedures more accurately reflect local quality discounts that are applied to agricultural commodities insured under this title. Based on the review, the Corporation shall make adjustments in the procedures, taking into consideration the actuarial soundness of the adjustment and the prevention of fraud, waste, and abuse.''. SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING. The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended by inserting after section 508 (7 U.S.C. 1508) the following: ``SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING. ``(a) Definitions.--In this section: ``(1) First crop.--The term `first crop' means the first crop of the first agricultural commodity planted for harvest, or prevented from being planted, on specific acreage during a crop year and insured under this title. ``(2) Second crop.--The term `second crop' means a second crop of the same agricultural commodity as the first crop, or a crop of a different agricultural commodity following the first crop, planted on the same acreage as the first crop for harvest in the same crop year, except the term does not include a replanted crop. ``(3) Replanted crop.--The term `replanted crop' means any agricultural commodity replanted on the same acreage as the first crop for harvest in the same crop year if the replanting is required by the terms of the policy of insurance covering the first crop. ``(b) Double Insurance.-- ``(1) Options on loss to first crop.--Except as provided in subsections (d) and (e), if a first crop insured under this title in a crop year has a total or partial insurable loss, the producer of the first crop may elect 1 of the following options: ``(A) No second crop planted.--The producer may-- ``(i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) collect an indemnity payment that is equal to 100 percent of the insurable loss for the first crop. ``(B) Second crop planted.--The producer may-- ``(i) plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the insurable loss for the first crop. ``(2) Effect of no loss to second crop.--If a producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer may collect an indemnity payment for the first crop that is equal to-- ``(A) 100 percent of the insurable loss for the first crop; less ``(B) the amount previously collected under paragraph (1)(B)(ii). ``(3) Premium for first crop if second crop planted.-- ``(A) Initial premium.--If a producer makes an election under paragraph (1)(B), the producer shall be responsible for a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity. ``(B) Effect of no loss to second crop.--If the producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer shall be responsible for a premium for the first crop that is equal to-- ``(i) the full premium owed by the producer for the first crop; less ``(ii) the amount of premium previously paid under subparagraph (A). ``(c) Prevented Planting Coverage.-- ``(1) Options on loss to first crop.--Except as provided in subsections (d) and (e), if a first crop insured under this title in a crop year is prevented from being planted, the producer of the first crop may elect 1 of the following options: ``(A) No second crop planted.--The producer may-- ``(i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) subject to paragraph (4), collect an indemnity payment that is equal to 100 percent of the prevented planting guarantee for the acreage for the first crop. ``(B) Second crop planted.--The producer may-- ``(i) plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) subject to paragraphs (4) and (5), collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the prevented planting guarantee for the acreage for the first crop. ``(2) Premium for first crop if second planted.--If the producer makes an election under paragraph (1)(B), the producer shall pay a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity. ``(3) Effect on actual production history.--Except in the case of double cropping described in subsection (d), if a producer make an election under paragraph (1)(B) for a crop year, the Corporation shall assign the producer a recorded yield for that crop year for the first crop equal to 60 percent of the producer's actual production history for the agricultural commodity involved, for purposes of determining the producer's actual production history for subsequent crop years. ``(4) Area conditions required for payment.--The Corporation shall limit prevented planting payments for producers to those situations in which other producers, in the area where a first crop is prevented from being planted is located, are also generally affected by the conditions that prevented the first crop from being planted. ``(5) Planting date.--If a producer plants the second crop before the latest planting date established by the Corporation for the first crop, the Corporation shall not make a prevented planting payment with regard to the first crop. ``(d) Exception for Established Double Cropping Practices.--A producer may receive full indemnity payments on 2 or more crops planted for harvest in the same crop year and insured under this title if each of the following conditions are met: ``(1) There is an established practice of planting 2 or more crops for harvest in the same crop year in the area, as determined by the Corporation. ``(2) An additional coverage policy or plan of insurance is offered with respect to the agricultural commodities planted on the same acreage for harvest in the same crop year in the area. ``(3) The producer has a history of planting 2 or more crops for harvest in the same crop year or the applicable acreage has historically had 2 or more crops planted for harvest in the same crop year. ``(4) The second or more crops are customarily planted after the first crop for harvest on the same acreage in the same year in the area. ``(e) Subsequent Crops.--Except in the case of double cropping described in subsection (d), if a producer elects to plant a crop (other than a replanted crop) subsequent to a second crop on the same acreage as the first crop and second crop for harvest in the same crop year, the producer shall not be eligible for insurance under this title, or noninsured crop assistance under section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333), for the subsequent crop.''. SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM. (a) Operation and Administration of Program.--Section 196(a)(2) of the Agricultural Market Transition Act (7 U.S.C. 7333(a)(2)) is amended by adding at the end the following: ``(C) Combination of similar types or varieties.--At the option of the Secretary, all types or varieties of a crop or commodity, described in subparagraphs (A) and (B), may be considered to be a single eligible crop under this section.''. (b) Timely Application.--Section 196(b)(1) of the Agricultural Market Transition Act (7 U.S.C. 7333(b)(1)) is amended in the second sentence by striking ``at such time as the Secretary may require'' and inserting ``not later than 30 days before the beginning of the coverage period, as determined by the Secretary''. (c) Records and Reports.--Section 196(b) of the Agricultural Market Transition Act (7 U.S.C. 7333(b)) is amended-- (1) by striking paragraph (2) and inserting the following: ``(2) Records.--To be eligible for assistance under this section, a producer shall provide annually to the Secretary records of crop acreage, acreage yields, and production for each crop, as required by the Secretary.''; and (2) in paragraph (3), by inserting ``annual'' after ``shall provide''. (d) Loss Requirements.--Section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333) is amended by striking subsection (c) and inserting the following: ``(c) Loss Requirements.-- ``(1) Cause.--To be eligible for assistance under this section, a producer of an eligible crop shall have suffered a loss of a noninsured commodity as the result of a cause described in subsection (a)(3). ``(2) Assistance.--On making a determination described in subsection (a)(3), the Secretary shall provide assistance under this section to producers of an eligible crop that have suffered a loss as a result of the cause described in subsection (a)(3). ``(3) Prevented planting.--Subject to paragraph (1), the Secretary shall make a prevented planting noninsured crop disaster assistance payment if the producer is prevented from [[Page H3767]] planting more than 35 percent of the acreage intended for the eligible crop because of drought, flood, or other natural disaster, as determined by the Secretary. ``(4) Area trigger.--The Secretary shall provide assistance to individual producers without any requirement of an area loss.''. (e) Service Fee.--Section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333) is amended by adding at the end the following: ``(k) Service Fee.-- ``(1) In general.--To be eligible to receive assistance for an eligible crop for a crop year under this section, a producer shall pay to the Secretary (at the time at which the producer submits the application under subsection (b)(1)) a service fee for the eligible crop in an amount that is equal to the lesser of-- ``(A) $100 per crop per county; or ``(B) $300 per producer per county, but not to exceed a total of $900 per producer. ``(2) Waiver.--The Secretary shall waive the service fee required under paragraph (1) in the case of a limited resource farmer, as defined by the Secretary. ``(3) Use.--The Secretary shall deposit service fees collected under this subsection in the Commodity Credit Corporation Fund.''. Subtitle B--Improving Program Integrity SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY. (a) Additional Methods of Ensuring Program Compliance and Integrity.--Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1514) is amended to read as follows: ``SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY. ``(a) Purpose.-- ``(1) In general.--The purpose of this section is to improve compliance with, and the integrity of, the Federal crop insurance program. ``(2) Role of insurance providers.--The Corporation shall work actively with approved insurance providers to address program compliance and integrity issues as such issues develop. ``(b) Notification of Compliance Problems.-- ``(1) Notification of errors, omissions, and failures.--The Corporation shall notify in writing an approved insurance provider of any error, omission, or failure to follow Corporation regulations or procedures for which the approved insurance provider may be responsible and which may result in a debt owed the Corporation. ``(2) Time for notification.--Notice under paragraph (1) shall be given within 3 years after the end of the insurance period during which the error, omission, or failure is alleged to have occurred, except that this time limitation shall not apply with respect to an error, omission, or procedural violation that is willful or intentional. ``(3) Effect of failure to timely notify.--Except as provided in paragraph (2), the failure to timely provide the notice required under this subsection shall relieve the approved insurance provider from the debt owed the Corporation. ``(c) Reconciling Producer Information.--The Secretary shall develop and implement a coordinated plan for the Corporation and the Farm Service Agency to reconcile all relevant information received by the Corporation or the Farm Service Agency from a producer who obtains crop insurance coverage under this title. Beginning with the 2001 crop year, the Secretary shall require that the Corporation and the Farm Service Agency reconcile such producer-derived information on at least an annual basis in order to identify and address any discrepancies. ``(d) Identification and Elimination of Fraud, Waste, and Abuse.-- ``(1) FSA monitoring program.--The Secretary shall develop and implement a coordinated plan for the Farm Service Agency to assist the Corporation in the ongoing monitoring of programs carried out under this title, including-- ``(A) at the request of the Corporation or, subject to paragraph (2), on its own initiative if the Farm Service Agency has reason to suspect the existence of program fraud, waste, or abuse, conducting fact finding relative to allegations of program fraud, waste, or abuse; ``(B) reporting to the Corporation, in writing in a timely manner, the results of any fact finding conducted pursuant to subparagraph (A), any allegation of fraud, waste, or abuse, and any identified program vulnerabilities; and ``(C) assisting the Corporation and approved insurance providers in auditing a statistically appropriate number of claims made under any policy or plan of insurance under this title. ``(2) FSA inquiry.--If, within 5 calendar days after receiving a report submitted under paragraph (1)(B), the Corporation does not provide a written response that describes the intended actions of the Corporation, the Farm Service Agency may conduct its own inquiry into the alleged program fraud, waste, or abuse on approval from the State director of the Farm Service Agency of the State in which the alleged fraud, waste, or abuse occurred. If as a result of the inquiry, the Farm Service Agency concludes further investigation is warranted, but the Corporation declines to proceed with the investigation, the Farm Service Agency may refer the matter to the Inspector General of the Department of Agriculture. ``(3) Use of field infrastructure.--The plan required by paragraph (1) shall provide for the use of the field infrastructure of the Farm Service Agency. The Secretary shall ensure that relevant Farm Service Agency personnel are appropriately trained for any responsibilities assigned to the personnel under the plan. At a minimum, the personnel shall receive the same level of training and pass the same basic competency tests as required of loss adjusters of approved insurance providers. ``(4) Maintenance of provider effort.-- ``(A) In general.--The activities of the Farm Service Agency under this subsection do not affect the responsibility of approved insurance providers to conduct any audits of claims or other program reviews required by the Corporation. ``(B) Notification of providers.--The Corporation shall notify the appropriate approved insurance provider of a report from the Farm Service Agency regarding alleged program fraud, waste, or abuse, unless the provider is suspected to be included in, or a party to, the alleged fraud, waste, or abuse. ``(C) Response.--An approved insurance provider that receives a notice under subparagraph (B) shall submit a report to the Corporation, within an appropriate time period determined by the Secretary, describing the actions taken by the provider to investigate the allegations of program fraud, waste, or abuse contained in the notice. ``(5) Corporation response to provider reports.-- ``(A) Prompt response.--If an approved insurance provider reports to the Corporation that the approved insurance provider suspects intentional misrepresentation, fraud, waste, or abuse, the Corporation shall make a determination and provide, within 90 calendar days after receiving the report, a written response that describes the intended actions of the Corporation. ``(B) Cooperative effort.--The approved insurance provider and the Corporation shall take coordinated action in any case where misrepresentation, fraud, waste, or abuse is alleged. ``(C) Failure to timely respond.--If the Corporation fails to respond as required by subparagraph (A), an approved insurance provider may request the Farm Service Agency to assist the provider in an inquiry into the alleged program fraud, waste, or abuse. ``(e) Consultation with State FSA Committees.--The Secretary shall establish procedures under which the Corporation shall consult with the State committee of the Farm Service Agency for a State with respect to policies, plans of insurance, and material related to such policies or plans of insurance (including applicable sales closing dates, assigned yields, and transitional yields) offered in that State under this title. ``(f) Detection of Disparate Performance.-- ``(1) Covered activities.--The Secretary shall establish procedures under which the Corporation will be able to identify the following: ``(A) Any agent engaged in the sale of coverage offered under this title where the loss claims associated with such sales by the agent are equal to or greater than 150 percent (or an appropriate percentage specified by the Corporation) of the mean for all loss claims associated with such sales by all other agents operating in the same area, as determined by the Corporation. ``(B) Any person performing loss adjustment services relative to coverage offered under this title where such loss adjustments performed by the person result in accepted or denied claims equal to or greater than 150 percent (or an appropriate percentage specified by the Corporation) of the mean for accepted or denied claims (as applicable) for all other persons performing loss adjustment services in the same area, as determined by the Corporation. ``(2) Review.-- ``(A) Review required.--The Corporation shall conduct a review of any agent identified pursuant to paragraph (1)(A), and any person identified pursuant to paragraph (1)(B), to determine whether the higher loss claims associated with the agent or the higher number of accepted or denied claims (as applicable) associated with the person are the result of fraud, waste, or abuse. ``(B) Remedial action.--The Corporation shall take appropriate remedial action with respect to any occurrence of fraud, waste, or abuse identified in a review conducted under this paragraph. ``(3) Oversight of agents and loss adjusters.--The Corporation shall develop procedures to require an annual review by an approved insurance provider of the performance of each agent and loss adjuster used by the approved insurance provider. The Corporation shall oversee the conduct of annual reviews and may consult with an approved insurance provider regarding any remedial action that is determined to be necessary as a result of the annual review of an agent or loss adjuster. ``(g) Submission of Information to Corporation to Support Compliance Efforts.-- ``(1) Types of information required.--The Secretary shall establish procedures under which approved insurance providers shall submit to the Corporation the following information with respect to each policy or plan of insurance offered under this title: ``(A) The name and identification number of the insured. ``(B) The agricultural commodity to be insured. ``(C) The elected coverage level, including the price election, of the insured. ``(2) Time for submission.--The information required by paragraph (1) with respect to a policy or plan of insurance shall be submitted so as to ensure receipt by the Corporation not later than the Saturday of the week containing the calendar day that is 30 days after the applicable sales closing date for the crop to be insured. ``(h) Sanctions for Program Noncompliance and Fraud.-- ``(1) False information.--A producer, agent, loss adjuster, approved insurance provider, or other person that willfully and intentionally provides any false or inaccurate information to the Corporation or to an approved insurance provider with respect to a policy or plan of insurance under this title may, after notice and an opportunity for a hearing on the record, be subject to 1 or more of the sanctions described in paragraph (3). [[Page H3768]] ``(2) Compliance.--A person may, after notice and an opportunity for a hearing on the record, be subject to 1 or more of the sanctions described in paragraph (3) if the person is a producer, agent, loss adjuster, approved insurance provider, or other person that willfully and intentionally fails to comply with a requirement of the Corporation. ``(3) Authorized sanctions.--If the Secretary determines that a person covered by this subsection has committed a material violation under paragraph (1) or (2), the following sanctions may be imposed: ``(A) Civil fines.--A civil fine may be imposed for each violation in an amount not to exceed the greater of-- ``(i) the amount of the pecuniary gain obtained as a result of the false or inaccurate information provided or the noncompliance with a requirement of this title; or ``(ii) $10,000. ``(B) Producer disqualification.--In the case of a violation committed by a producer, the producer may be disqualified for a period of up to 5 years from receiving any monetary or nonmonetary benefit provided under each of the following: ``(i) This title. ``(ii) The Agricultural Market Transition Act (7 U.S.C. 7201 et seq.), including the noninsured crop disaster assistance program under section 196 of that Act (7 U.S.C. 7333). ``(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.). ``(iv) The Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.). ``(v) The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.). ``(vi) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.). ``(vii) The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.). ``(viii) Any law that provides assistance to a producer of an agricultural commodity affected by a crop loss or a decline in the prices of agricultural commodities. ``(C) Disqualification of other persons.--In the case of a violation committed by an agent, loss adjuster, approved insurance provider, or other person (other than a producer), the violator may be disqualified for a period of up to 5 years from participating in any program, or receiving any benefit, under this title. ``(4) Assessment of sanction.--The Secretary shall consider the gravity of the violation of the person covered by this subsection in determining-- ``(A) whether to impose a sanction under this subsection; and ``(B) the type and amount of the sanction to be imposed. ``(5) Disclosure of sanctions.--Each policy or plan of insurance under this title shall provide notice describing the sanctions prescribed under paragraph (3) for willfully and intentionally-- ``(A) providing false or inaccurate information to the Corporation or to an approved insurance provider; or ``(B) failing to comply with a requirement of the Corporation. ``(6) Insurance fund.--Any funds collected under this subsection shall be deposited into the insurance fund established under section 516(c). ``(i) Annual Report on Program Compliance and Integrity Efforts.-- ``(1) Report required.--The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report describing the operation of this section during the preceding year and efforts undertaken by the Secretary and the Corporation to carry out this section. ``(2) Information regarding fraud, waste, and abuse.--The report shall identify specific occurrences of waste, fraud, or abuse and contain an outline of actions that have been or are being taken to eliminate the identified waste, fraud, or abuse. ``(j) Information Management.-- ``(1) Systems upgrades.--The Secretary shall upgrade the information management systems of the Corporation used in the administration and enforcement and this title. In upgrading the systems, the Secretary shall ensure that new hardware and software are compatible with the hardware and software used by other agencies of the Department to maximize data sharing and promote the purpose of this section. ``(2) Use of available information technologies.--The Secretary shall use the information technologies known as data mining and data warehousing and other available information technologies to administer and enforce this title. ``(3) Use of private sector.--The Secretary may enter into contracts to use private sector expertise and technological resources in implementing this subsection. ``(k) Funding.-- ``(1) Available funds.--To carry out this section and sections 502(c), 506(h), 508(a)(3)(B), and 508(f)(3)(A), the Corporation may use, from amounts made available from the insurance fund established under section 516(c), not more than $23,000,000 during the period of fiscal years 2001 through 2005, of which not more than $9,000,000 shall be available for fiscal year 2001. ``(2) Prohibition.--None of the funds made available under paragraph (1) may be used to pay the salaries of employees of the Corporation.''. (b) Conforming Amendment.--Section 506 of the Federal Crop Insurance Act (7 U.S.C. 1506) is amended-- (1) by striking subsection (q); and (2) by redesignating subsections (r) and (s) as subsections (q) and (r), respectively. SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION. Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is amended by adding at the end the following: ``(c) Protection of Confidential Information.-- ``(1) General prohibition against disclosure.--Except as provided in paragraph (2), the Secretary, any other officer or employee of the Department or an agency thereof, an approved insurance provider and its employees and contractors, and any other person may not disclose to the public information furnished by a producer under this title. ``(2) Authorized disclosure.-- ``(A) Disclosure in statistical or aggregate form.-- Information described in paragraph (1) may be disclosed to the public if the information has been transformed into a statistical or aggregate form that does not allow the identification of the person who supplied particular information. ``(B) Consent of producer.--A producer may consent to the disclosure of information described in paragraph (1). The participation of the producer in, and the receipt of any benefit by the producer under, this title or any other program administered by the Secretary may not be conditioned on the producer providing consent under this paragraph. ``(3) Violations; penalties.--Section 1770(c) of the Food Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect to the release of information collected in any manner or for any purpose prohibited by this subsection.''. SEC. 123. GOOD FARMING PRACTICES. Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amended by striking paragraph (3) and inserting the following: ``(3) Exclusion of losses due to certain actions of producer.-- ``(A) Exclusions.--Insurance provided under this subsection shall not cover losses due to-- ``(i) the neglect or malfeasance of the producer; ``(ii) the failure of the producer to reseed to the same crop in such areas and under such circumstances as it is customary to reseed; or ``(iii) the failure of the producer to follow good farming practices, including scientifically sound sustainable and organic farming practices. ``(B) Good farming practices.-- ``(i) Informal administrative process.--A producer shall have the rig

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CONFERENCE REPORT ON H.R. 2559, AGRICULTURAL RISK PROTECTION ACT OF 2000
(House of Representatives - May 24, 2000)

Text of this article available as: TXT PDF [Pages H3763-H3804] CONFERENCE REPORT ON H.R. 2559, AGRICULTURAL RISK PROTECTION ACT OF 2000 Mr. COMBEST submitted the following conference report and statement on the bill (H.R. 2559) to amend the Federal Crop Insurance Act to strengthen the safety net for agricultural producers by providing greater access to more affordable risk management tools and improved protection from production and income loss, to improve the efficiency and integrity of the Federal crop insurance program, and for other purposes. Conference Report (H. Rept. 106-639) The committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H.R. 2559), to amend the Federal Crop Insurance Act to strengthen the safety net for agricultural producers by providing greater access to more affordable risk management tools and improved protection from production and income loss, to improve the efficiency and integrity of the Federal crop insurance program, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: That the House recede from its disagreement to the amendment of the Senate and agree to the same with an amendment as follows: In lieu of the matter proposed to be inserted by the Senate amendment, insert the following: SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Agricultural Risk Protection Act of 2000''. (b) Table of Contents.--The table of contents of this Act is as follows: TITLE I--CROP INSURANCE COVERAGE Subtitle A--Crop Insurance Coverage Sec. 101. Premium schedule for additional coverage. Sec. 102. Premium schedule for other plans of insurance. Sec. 103. Catastrophic risk protection. Sec. 104. Administrative fee for additional coverage. Sec. 105. Assigned yields and actual production history adjustments. Sec. 106. Review and adjustment in rating methodologies. Sec. 107. Quality adjustment. Sec. 108. Double insurance and prevented planting. Sec. 109. Noninsured crop disaster assistance program. Subtitle B--Improving Program Integrity Sec. 121. Improving program compliance and integrity. Sec. 122. Protection of confidential information. Sec. 123. Good farming practices. Sec. 124. Records and reporting. Subtitle C--Research and Pilot Programs Sec. 131. Research and development. Sec. 132. Pilot programs. Sec. 133. Education and risk management assistance. Sec. 134. Options pilot program. Subtitle D--Administration Sec. 141. Relation to other laws. Sec. 142. Management of Corporation. Sec. 143. Contracting for rating of plans of insurance. Sec. 144. Electronic availability of crop insurance information. Sec. 145. Adequate coverage for States. Sec. 146. Submission of policies and materials to Board. Sec. 147. Funding. Sec. 148. Standard Reinsurance Agreement. Subtitle E--Miscellaneous Sec. 161. Limitation on revenue coverage for potatoes. Sec. 162. Crop insurance coverage for cotton and rice. Sec. 163. Indemnity payments for certain producers. Sec. 164. Sense of Congress regarding the Federal crop insurance program. Sec. 165. Sense of Congress on rural America, including minority and limited-resource farmers. Subtitle F--Effective Dates and Implementation Sec. 171. Effective dates. Sec. 172. Regulations. Sec. 173. Savings clause. TITLE II--AGRICULTURAL ASSISTANCE Subtitle A--Market Loss Assistance Sec. 201. Market loss assistance. Sec. 202. Oilseeds. Sec. 203. Specialty crops. Sec. 204. Other commodities. Sec. 205. Payments in lieu of loan deficiency payments. Sec. 206. Expansion of producers eligible for loan deficiency payments. Subtitle B--Conservation Sec. 211. Conservation assistance. Sec. 212. Condition on development of Little Darby National Wildlife Refuge, Ohio. Subtitle C--Research Sec. 221. Carbon cycle research. Sec. 222. Tobacco research for medicinal purposes. Sec. 223. Research on soil science and forest health management. Sec. 224. Research on waste streams from livestock production. Sec. 225. Improved storage and management of livestock and poultry waste. Sec. 226. Ethanol research pilot plant. Sec. 227. Bioinformatics Institute for Model Plant Species. Subtitle D--Agricultural Marketing Sec. 231. Value-added agricultural product market development grants. Subtitle E--Nutrition Programs Sec. 241. Calculation of minimum amount of commodities for school lunch requirements. Sec. 242. School lunch data. Sec. 243. Child and adult care food program integrity. Sec. 244. Adjustments to WIC program. Subtitle F--Other Programs Sec. 251. Authority to provide loan in connection with boll weevil eradication. Sec. 252. Animal disease control. Sec. 253. Emergency loans for seed producers. Sec. 254. Temporary suspension of authority to combine certain offices. Sec. 255. Farm operating loan eligibility. Sec. 256. Water systems for rural and Native villages in Alaska. Sec. 257. Crop and pasture flood compensation program. Sec. 258. Flood mitigation near Pierre, South Dakota. Sec. 259. Restoration of eligibility for crop loss assistance. Subtitle G--Administration Sec. 261. Funding. Sec. 262. Obligation period. Sec. 263. Regulations. Sec. 264. Paygo adjustment. Sec. 265. Commodity Credit Corporation reimbursement. TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000 Sec. 301. Short title. Sec. 302. Findings. Sec. 303. Definitions. Sec. 304. Cooperation and coordination in biomass research and development. Sec. 305. Biomass Research and Development Board. Sec. 306. Biomass Research and Development Technical Advisory Committee. Sec. 307. Biomass Research And Development Initiative. Sec. 308. Administrative support and funds. Sec. 309. Reports. Sec. 310. Termination of authority. TITLE IV--PLANT PROTECTION ACT Sec. 401. Short title. Sec. 402. Findings. Sec. 403. Definitions. [[Page H3764]] Subtitle A--Plant Protection Sec. 411. Regulation of movement of plant pests. Sec. 412. Regulation of movement of plants, plant products, biological control organisms, noxious weeds, articles, and means of conveyance. Sec. 413. Notification and holding requirements upon arrival. Sec. 414. General remedial measures for new plant pests and noxious weeds. Sec. 415. Declaration of extraordinary emergency and resulting authorities. Sec. 416. Recovery of compensation for unauthorized activities. Sec. 417. Control of grasshoppers and mormon crickets. Sec. 418. Certification for exports. Subtitle B--Inspection and Enforcement Sec. 421. Inspections, seizures, and warrants. Sec. 422. Collection of information. Sec. 423. Subpoena authority. Sec. 424. Penalties for violation. Sec. 425. Enforcement actions of attorney general. Sec. 426. Court jurisdiction. Subtitle C--Miscellaneous Provisions Sec. 431. Cooperation. Sec. 432. Buildings, land, people, claims, and agreements. Sec. 433. Reimbursable agreements. Sec. 434. Regulations and orders. Sec. 435. Protection for mail handlers. Sec. 436. Preemption. Sec. 437. Severability. Sec. 438. Repeal of superseded laws. Subtitle D--Authorization of Appropriations Sec. 441. Authorization of appropriations. Sec. 442. Transfer authority. TITLE V--INSPECTION ANIMALS Sec. 501. Civil penalty. Sec. 502. Subpoena authority. TITLE I--CROP INSURANCE Subtitle A--Crop Insurance Coverage SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE. (a) Expected Market Price.--Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (5) and inserting the following: ``(5) Expected market price.-- ``(A) Establishment or approval.--For the purposes of this title, the Corporation shall establish or approve the price level (referred to in this title as the `expected market price') of each agricultural commodity for which insurance is offered. ``(B) General rule.--Except as otherwise provided in subparagraph (C), the expected market price of an agricultural commodity shall be not less than the projected market price of the agricultural commodity, as determined by the Corporation. ``(C) Other authorized approaches.--The expected market price of an agricultural commodity-- ``(i) may be based on the actual market price of the agricultural commodity at the time of harvest, as determined by the Corporation; ``(ii) in the case of revenue and other similar plans of insurance, may be the actual market price of the agricultural commodity, as determined by the Corporation; ``(iii) in the case of cost of production or similar plans of insurance, shall be the projected cost of producing the agricultural commodity, as determined by the Corporation; or ``(iv) in the case of other plans of insurance, may be an appropriate amount, as determined by the Corporation.''. (b) Premium Amounts.--Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)) is amended-- (1) in paragraph (2), by striking subparagraphs (B) and (C) and inserting the following: ``(B) In the case of additional coverage equal to or greater than 50 percent of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount of the premium shall-- ``(i) be sufficient to cover anticipated losses and a reasonable reserve; and ``(ii) include an amount for operating and administrative expenses, as determined by the Corporation, on an industry- wide basis as a percentage of the amount of the premium used to define loss ratio.''; and (2) by adding at the end the following: ``(3) Performance-based discount.--The Corporation may provide a performance-based premium discount for a producer of an agricultural commodity who has good insurance or production experience relative to other producers of that agricultural commodity in the same area, as determined by the Corporation.''. (c) Payment Schedule.--Section 508(e)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)(2)) is amended-- (1) in the matter preceding the subparagraphs, by striking ``The amount'' and inserting ``Subject to paragraph (4), the amount''; and (2) by striking subparagraphs (B) and (C) and inserting the following: ``(B) In the case of additional coverage equal to or greater than 50 percent, but less than 55 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 67 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(C) In the case of additional coverage equal to or greater than 55 percent, but less than 65 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 64 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(D) In the case of additional coverage equal to or greater than 65 percent, but less than 75 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 59 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(E) In the case of additional coverage equal to or greater than 75 percent, but less than 80 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 55 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(F) In the case of additional coverage equal to or greater than 80 percent, but less than 85 percent, of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 48 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses. ``(G) Subject to subsection (c)(4), in the case of additional coverage equal to or greater than 85 percent of the recorded or appraised average yield indemnified at not greater than 100 percent of the expected market price, or a comparable coverage for a policy or plan of insurance that is not based on individual yield, the amount shall be equal to the sum of-- ``(i) 38 percent of the amount of the premium established under subsection (d)(2)(B)(i) for the coverage level selected; and ``(ii) the amount determined under subsection (d)(2)(B)(ii) for the coverage level selected to cover operating and administrative expenses.''. (d) Temporary Prohibition on Continuous Coverage.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by striking paragraph (4) and inserting the following: ``(4) Temporary prohibition on continuous coverage.-- Notwithstanding paragraph (2), during each of the 2001 through 2005 reinsurance years, additional coverage under subsection (c) shall be available only in 5 percent increments beginning at 50 percent of the recorded or appraised average yield.''. (e) Premium Payment Disclosure.--Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) is amended by adding at the end the following: ``(5) Premium payment disclosure.--Each policy or plan of insurance under this title shall prominently indicate the dollar amount of the portion of the premium paid by the Corporation.''. (f) Conforming Amendment.--Section 508(g)(2)(D) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(D)) is amended by striking ``(as provided in subsection (e)(4))''. SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE. (a) Premium Schedule.--Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended-- (1) in paragraph (2), by striking the second sentence; and (2) by striking paragraph (5) and inserting the following: ``(5) Premium schedule.-- ``(A) Payment by corporation.--In the case of a policy or plan of insurance developed and approved under this subsection or section 522, or conducted under section 523 (other than a policy or plan of insurance applicable to livestock), the Corporation shall pay a portion of the premium of the policy or plan of insurance that is equal to-- ``(i) the percentage, specified in subsection (e) for a similar level of coverage, of the total amount of the premium used to define loss ratio; and ``(ii) an amount for administrative and operating expenses determined in accordance with subsection (k)(4). ``(B) Transitional schedule.--Effective only during the 2001 reinsurance year, in the case of a policy or plan of insurance developed and approved under this subsection or section 522, or conducted under section 523 (other than a policy or plan of insurance applicable to livestock), and first approved by the Board after the date of enactment of this subparagraph, the payment by the Corporation of a portion of the premium of the policy may not exceed the dollar amount that would otherwise be authorized under subsection (e) (consistent with subsection (c)(5), as in effect on the day before the date of enactment of this subparagraph).''. [[Page H3765]] (b) Reimbursement Rate.--Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)) is amended by adding at the end the following: ``(C) Other reductions.--Beginning with the 2002 reinsurance year, in the case of a policy or plan of insurance approved by the Board that was not reinsured during the 1998 reinsurance year but, had it been reinsured, would have received a reduced rate of reimbursement during the 1998 reinsurance year, the rate of reimbursement for administrative and operating costs established for the policy or plan of insurance shall take into account the factors used to determine the rate of reimbursement for administrative and operating costs during the 1998 reinsurance year, including the expected difference in premium and actual administrative and operating costs of the policy or plan of insurance relative to an individual yield policy or plan of insurance and other appropriate factors, as determined by the Corporation.''. SEC. 103. CATASTROPHIC RISK PROTECTION. (a) Alternative Coverage.--Section 508(b) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)) is amended by striking paragraph (3) and inserting the following: ``(3) Alternative catastrophic coverage.--Beginning with the 2001 crop year, the Corporation shall offer producers of an agricultural commodity the option of selecting either of the following: ``(A) The catastrophic risk protection coverage available under paragraph (2)(A). ``(B) An alternative catastrophic risk protection coverage that-- ``(i) indemnifies the producer on an area yield and loss basis if such a policy or plan of insurance is offered for the agricultural commodity in the county in which the farm is located; ``(ii) provides, on a uniform national basis, a higher combination of yield and price protection than the coverage available under paragraph (2)(A); and ``(iii) the Corporation determines is comparable to the coverage available under paragraph (2)(A) for purposes of subsection (e)(2)(A).''. (b) Administrative Fee.-- (1) Revised fee.--Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended-- (A) in subparagraph (A), by striking ``$50'' and inserting ``$100''; (B) by striking subparagraph (B); and (C) in subparagraph (C), by striking ``amounts required under subparagraphs (A) and (B)'' and inserting ``administrative fee required by this paragraph''. (2) Conforming amendment.--Section 748 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999 (as contained in section 101(a) of division A of Public Law 105-277; 7 U.S.C. 1508 note), is amended by striking ``$50'' and inserting ``$100''. (c) Payment of Administrative Fee on Behalf of Producers.-- Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)), as amended by subsection (b)(1)(B), is amended by inserting after subparagraph (A) the following: ``(B) Payment on behalf of producers.-- ``(i) Payment authorized.--If State law permits a licensing fee or other payment to be paid by an insurance provider to a cooperative association or trade association and rebated to a producer with catastrophic risk protection or additional coverage, a cooperative association or trade association located in that State may pay, on behalf of a member of the association in that State or a contiguous State who consents to be insured under such an arrangement, all or a portion of the administrative fee required by this paragraph for catastrophic risk protection. ``(ii) Treatment of licensing fees.--A licensing fee or other payment made by an insurance provider to the cooperative association or trade association in connection with the issuance of catastrophic risk protection or additional coverage to members of the cooperative association or trade association shall be subject to the laws regarding rebates of the State in which the fee or other payment is made. ``(iii) Selection of provider.--Nothing in this subparagraph limits the option of a producer to select the licensed insurance agent or other approved insurance provider from whom the producer will purchase a policy or plan of insurance or to refuse coverage for which a payment is offered to be made under clause (i). ``(iv) Delivery of insurance.--A policy or plan of insurance for which a payment is made under clause (i) shall be delivered by a licensed insurance agent or other approved insurance provider. ``(v) Additional coverage encouraged.--A cooperative association or trade association, and any approved insurance provider with whom a licensing fee or other arrangement under this subparagraph is made, shall encourage producer members to purchase appropriate levels of additional coverage in order to meet the risk management needs of the member producers. ``(vi) Report.--Not later than April 1, 2002, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report that evaluates-- ``(I) the operation of this subparagraph; and ``(II) the impact of this subparagraph on participation in the Federal crop insurance program, including the impact on levels of coverage purchased.''. (d) Reimbursement Rate Change.--Section 508(b)(11) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(11)) is amended by striking ``11 percent'' and inserting ``8 percent''. SEC. 104. ADMINISTRATIVE FEE FOR ADDITIONAL COVERAGE. Section 508(c) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)) is amended by striking paragraph (10) and inserting the following: ``(10) Administrative fee.-- ``(A) Fee required.--If a producer elects to purchase coverage for a crop at a level in excess of catastrophic risk protection, the producer shall pay an administrative fee for the additional coverage of $30 per crop per county. ``(B) Use of fees; waiver.--Subparagraphs (D) and (E) of subsection (b)(5) shall apply with respect to the collection and use of administrative fees under this paragraph.''. SEC. 105. ASSIGNED YIELDS AND ACTUAL PRODUCTION HISTORY ADJUSTMENTS. (a) Assigned Yields.--Section 508(g)(2)(B) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)(2)(B)) is amended-- (1) by striking ``assigned a yield'' and inserting ``assigned-- ``(i) a yield''; (2) by striking the period at the end and inserting ``; or''; and (3) by adding at the end the following: ``(ii) a yield determined by the Corporation, in the case of-- ``(I) a producer that has not had a share of the production of the insured crop for more than 2 crop years, as determined by the Secretary; ``(II) a producer that produces an agricultural commodity on land that has not been farmed by the producer; or ``(III) a producer that rotates a crop produced on a farm to a crop that has not been produced on the farm.''. (b) Actual Production History Adjustments.--Section 508(g) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)) is amended by adding at the end the following: ``(4) Adjustment in actual production history to establish insurable yields.-- ``(A) Application.--This paragraph shall apply whenever the Corporation uses the actual production records of the producer to establish the producer's actual production history for an agricultural commodity for any of the 2001 and subsequent crop years. ``(B) Election to use percentage of transitional yield.-- If, for 1 or more of the crop years used to establish the producer's actual production history of an agricultural commodity, the producer's recorded or appraised yield of the commodity was less than 60 percent of the applicable transitional yield, as determined by the Corporation, the Corporation shall, at the election of the producer-- ``(i) exclude any of such recorded or appraised yield; and ``(ii) replace each excluded yield with a yield equal to 60 percent of the applicable transitional yield. ``(C) Premium adjustment.--In the case of a producer that makes an election under subparagraph (B), the Corporation shall adjust the premium to reflect the risk associated with the adjustment made in the actual production history of the producer. ``(5) Adjustment to reflect increased yields from successful pest control efforts.-- ``(A) Situations justifying adjustment.--The Corporation shall develop a methodology for adjusting the actual production history of a producer when each of the following apply: ``(i) The producer's farm is located in an area where systematic, area-wide efforts have been undertaken using certain operations or measures, or the producer's farm is a location at which certain operations or measures have been undertaken, to detect, eradicate, suppress, or control, or at least to prevent or retard the spread of, a plant disease or plant pest, including a plant pest (as defined in section 102 of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 147a)). ``(ii) The presence of the plant disease or plant pest has been found to adversely affect the yield of the agricultural commodity for which the producer is applying for insurance. ``(iii) The efforts described in clause (i) have been effective. ``(B) Adjustment amount.--The amount by which the Corporation adjusts the actual production history of a producer of an agricultural commodity shall reflect the degree to which the success of the systematic, area-wide efforts described in subparagraph (A), on average, increases the yield of the commodity on the producer's farm, as determined by the Corporation.''. SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES. Section 508(i) of the Federal Crop Insurance Act (7 U.S.C. 1508(i)) is amended-- (1) by striking ``The Corporation'' and inserting the following: ``(1) In general.--The Corporation''; and (2) by adding at the end the following: ``(2) Review of rating methodologies.--To maximize participation in the Federal crop insurance program and to ensure equity for producers, the Corporation shall periodically review the methodologies employed for rating plans of insurance under this title consistent with section 507(c)(2). ``(3) Analysis of rating and loss history.--The Corporation shall analyze the rating and loss history of approved policies and plans of insurance for agricultural commodities by area. ``(4) Premium adjustment.--If the Corporation makes a determination that premium rates are excessive for an agricultural commodity in an area relative to the requirements of subsection (d)(2) for that area, then, for the 2002 crop year (and as necessary thereafter), the Corporation shall make appropriate adjustments in the premium rates for that area for that agricultural commodity.''. SEC. 107. QUALITY ADJUSTMENT. Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by striking subsection (m) and inserting the following: [[Page H3766]] ``(m) Quality Loss Adjustment Coverage.-- ``(1) Effect of coverage.--If a policy or plan of insurance offered under this title includes quality loss adjustment coverage, the coverage shall provide for a reduction in the quantity of production of the agricultural commodity considered produced during a crop year, or a similar adjustment, as a result of the agricultural commodity not meeting the quality standards established in the policy or plan of insurance. ``(2) Additional quality loss adjustment.-- ``(A) Producer option.--Notwithstanding any other provision of law, in addition to the quality loss adjustment coverage available under paragraph (1), the Corporation shall offer producers the option of purchasing quality loss adjustment coverage on a basis that is smaller than a unit with respect to an agricultural commodity that satisfies each of the following: ``(i) The agricultural commodity is sold on an identity- preserved basis. ``(ii) All quality determinations are made solely by the Federal agency designated to grade or classify the agricultural commodity. ``(iii) All quality determinations are made in accordance with standards published by the Federal agency in the Federal Register. ``(iv) The discount schedules that reflect the reduction in quality of the agricultural commodity are established by the Secretary. ``(B) Basis for adjustment.--Under this paragraph, the Corporation shall set the quality standards below which quality losses will be paid based on the variability of the grade of the agricultural commodity from the base quality for the agricultural commodity. ``(3) Review of criteria and procedures.--The Corporation shall contract with a qualified person to review the quality loss adjustment procedures of the Corporation so that the procedures more accurately reflect local quality discounts that are applied to agricultural commodities insured under this title. Based on the review, the Corporation shall make adjustments in the procedures, taking into consideration the actuarial soundness of the adjustment and the prevention of fraud, waste, and abuse.''. SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING. The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is amended by inserting after section 508 (7 U.S.C. 1508) the following: ``SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING. ``(a) Definitions.--In this section: ``(1) First crop.--The term `first crop' means the first crop of the first agricultural commodity planted for harvest, or prevented from being planted, on specific acreage during a crop year and insured under this title. ``(2) Second crop.--The term `second crop' means a second crop of the same agricultural commodity as the first crop, or a crop of a different agricultural commodity following the first crop, planted on the same acreage as the first crop for harvest in the same crop year, except the term does not include a replanted crop. ``(3) Replanted crop.--The term `replanted crop' means any agricultural commodity replanted on the same acreage as the first crop for harvest in the same crop year if the replanting is required by the terms of the policy of insurance covering the first crop. ``(b) Double Insurance.-- ``(1) Options on loss to first crop.--Except as provided in subsections (d) and (e), if a first crop insured under this title in a crop year has a total or partial insurable loss, the producer of the first crop may elect 1 of the following options: ``(A) No second crop planted.--The producer may-- ``(i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) collect an indemnity payment that is equal to 100 percent of the insurable loss for the first crop. ``(B) Second crop planted.--The producer may-- ``(i) plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the insurable loss for the first crop. ``(2) Effect of no loss to second crop.--If a producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer may collect an indemnity payment for the first crop that is equal to-- ``(A) 100 percent of the insurable loss for the first crop; less ``(B) the amount previously collected under paragraph (1)(B)(ii). ``(3) Premium for first crop if second crop planted.-- ``(A) Initial premium.--If a producer makes an election under paragraph (1)(B), the producer shall be responsible for a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity. ``(B) Effect of no loss to second crop.--If the producer makes an election under paragraph (1)(B) and the producer does not suffer an insurable loss to the second crop, the producer shall be responsible for a premium for the first crop that is equal to-- ``(i) the full premium owed by the producer for the first crop; less ``(ii) the amount of premium previously paid under subparagraph (A). ``(c) Prevented Planting Coverage.-- ``(1) Options on loss to first crop.--Except as provided in subsections (d) and (e), if a first crop insured under this title in a crop year is prevented from being planted, the producer of the first crop may elect 1 of the following options: ``(A) No second crop planted.--The producer may-- ``(i) elect to not plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) subject to paragraph (4), collect an indemnity payment that is equal to 100 percent of the prevented planting guarantee for the acreage for the first crop. ``(B) Second crop planted.--The producer may-- ``(i) plant a second crop on the same acreage for harvest in the same crop year; and ``(ii) subject to paragraphs (4) and (5), collect an indemnity payment established by the Corporation for the first crop, but not to exceed 35 percent of the prevented planting guarantee for the acreage for the first crop. ``(2) Premium for first crop if second planted.--If the producer makes an election under paragraph (1)(B), the producer shall pay a premium for the first crop that is commensurate with the indemnity paid under paragraph (1)(B)(ii). The Corporation shall adjust the total premium for the first crop to reflect the reduced indemnity. ``(3) Effect on actual production history.--Except in the case of double cropping described in subsection (d), if a producer make an election under paragraph (1)(B) for a crop year, the Corporation shall assign the producer a recorded yield for that crop year for the first crop equal to 60 percent of the producer's actual production history for the agricultural commodity involved, for purposes of determining the producer's actual production history for subsequent crop years. ``(4) Area conditions required for payment.--The Corporation shall limit prevented planting payments for producers to those situations in which other producers, in the area where a first crop is prevented from being planted is located, are also generally affected by the conditions that prevented the first crop from being planted. ``(5) Planting date.--If a producer plants the second crop before the latest planting date established by the Corporation for the first crop, the Corporation shall not make a prevented planting payment with regard to the first crop. ``(d) Exception for Established Double Cropping Practices.--A producer may receive full indemnity payments on 2 or more crops planted for harvest in the same crop year and insured under this title if each of the following conditions are met: ``(1) There is an established practice of planting 2 or more crops for harvest in the same crop year in the area, as determined by the Corporation. ``(2) An additional coverage policy or plan of insurance is offered with respect to the agricultural commodities planted on the same acreage for harvest in the same crop year in the area. ``(3) The producer has a history of planting 2 or more crops for harvest in the same crop year or the applicable acreage has historically had 2 or more crops planted for harvest in the same crop year. ``(4) The second or more crops are customarily planted after the first crop for harvest on the same acreage in the same year in the area. ``(e) Subsequent Crops.--Except in the case of double cropping described in subsection (d), if a producer elects to plant a crop (other than a replanted crop) subsequent to a second crop on the same acreage as the first crop and second crop for harvest in the same crop year, the producer shall not be eligible for insurance under this title, or noninsured crop assistance under section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333), for the subsequent crop.''. SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM. (a) Operation and Administration of Program.--Section 196(a)(2) of the Agricultural Market Transition Act (7 U.S.C. 7333(a)(2)) is amended by adding at the end the following: ``(C) Combination of similar types or varieties.--At the option of the Secretary, all types or varieties of a crop or commodity, described in subparagraphs (A) and (B), may be considered to be a single eligible crop under this section.''. (b) Timely Application.--Section 196(b)(1) of the Agricultural Market Transition Act (7 U.S.C. 7333(b)(1)) is amended in the second sentence by striking ``at such time as the Secretary may require'' and inserting ``not later than 30 days before the beginning of the coverage period, as determined by the Secretary''. (c) Records and Reports.--Section 196(b) of the Agricultural Market Transition Act (7 U.S.C. 7333(b)) is amended-- (1) by striking paragraph (2) and inserting the following: ``(2) Records.--To be eligible for assistance under this section, a producer shall provide annually to the Secretary records of crop acreage, acreage yields, and production for each crop, as required by the Secretary.''; and (2) in paragraph (3), by inserting ``annual'' after ``shall provide''. (d) Loss Requirements.--Section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333) is amended by striking subsection (c) and inserting the following: ``(c) Loss Requirements.-- ``(1) Cause.--To be eligible for assistance under this section, a producer of an eligible crop shall have suffered a loss of a noninsured commodity as the result of a cause described in subsection (a)(3). ``(2) Assistance.--On making a determination described in subsection (a)(3), the Secretary shall provide assistance under this section to producers of an eligible crop that have suffered a loss as a result of the cause described in subsection (a)(3). ``(3) Prevented planting.--Subject to paragraph (1), the Secretary shall make a prevented planting noninsured crop disaster assistance payment if the producer is prevented from [[Page H3767]] planting more than 35 percent of the acreage intended for the eligible crop because of drought, flood, or other natural disaster, as determined by the Secretary. ``(4) Area trigger.--The Secretary shall provide assistance to individual producers without any requirement of an area loss.''. (e) Service Fee.--Section 196 of the Agricultural Market Transition Act (7 U.S.C. 7333) is amended by adding at the end the following: ``(k) Service Fee.-- ``(1) In general.--To be eligible to receive assistance for an eligible crop for a crop year under this section, a producer shall pay to the Secretary (at the time at which the producer submits the application under subsection (b)(1)) a service fee for the eligible crop in an amount that is equal to the lesser of-- ``(A) $100 per crop per county; or ``(B) $300 per producer per county, but not to exceed a total of $900 per producer. ``(2) Waiver.--The Secretary shall waive the service fee required under paragraph (1) in the case of a limited resource farmer, as defined by the Secretary. ``(3) Use.--The Secretary shall deposit service fees collected under this subsection in the Commodity Credit Corporation Fund.''. Subtitle B--Improving Program Integrity SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY. (a) Additional Methods of Ensuring Program Compliance and Integrity.--Section 515 of the Federal Crop Insurance Act (7 U.S.C. 1514) is amended to read as follows: ``SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY. ``(a) Purpose.-- ``(1) In general.--The purpose of this section is to improve compliance with, and the integrity of, the Federal crop insurance program. ``(2) Role of insurance providers.--The Corporation shall work actively with approved insurance providers to address program compliance and integrity issues as such issues develop. ``(b) Notification of Compliance Problems.-- ``(1) Notification of errors, omissions, and failures.--The Corporation shall notify in writing an approved insurance provider of any error, omission, or failure to follow Corporation regulations or procedures for which the approved insurance provider may be responsible and which may result in a debt owed the Corporation. ``(2) Time for notification.--Notice under paragraph (1) shall be given within 3 years after the end of the insurance period during which the error, omission, or failure is alleged to have occurred, except that this time limitation shall not apply with respect to an error, omission, or procedural violation that is willful or intentional. ``(3) Effect of failure to timely notify.--Except as provided in paragraph (2), the failure to timely provide the notice required under this subsection shall relieve the approved insurance provider from the debt owed the Corporation. ``(c) Reconciling Producer Information.--The Secretary shall develop and implement a coordinated plan for the Corporation and the Farm Service Agency to reconcile all relevant information received by the Corporation or the Farm Service Agency from a producer who obtains crop insurance coverage under this title. Beginning with the 2001 crop year, the Secretary shall require that the Corporation and the Farm Service Agency reconcile such producer-derived information on at least an annual basis in order to identify and address any discrepancies. ``(d) Identification and Elimination of Fraud, Waste, and Abuse.-- ``(1) FSA monitoring program.--The Secretary shall develop and implement a coordinated plan for the Farm Service Agency to assist the Corporation in the ongoing monitoring of programs carried out under this title, including-- ``(A) at the request of the Corporation or, subject to paragraph (2), on its own initiative if the Farm Service Agency has reason to suspect the existence of program fraud, waste, or abuse, conducting fact finding relative to allegations of program fraud, waste, or abuse; ``(B) reporting to the Corporation, in writing in a timely manner, the results of any fact finding conducted pursuant to subparagraph (A), any allegation of fraud, waste, or abuse, and any identified program vulnerabilities; and ``(C) assisting the Corporation and approved insurance providers in auditing a statistically appropriate number of claims made under any policy or plan of insurance under this title. ``(2) FSA inquiry.--If, within 5 calendar days after receiving a report submitted under paragraph (1)(B), the Corporation does not provide a written response that describes the intended actions of the Corporation, the Farm Service Agency may conduct its own inquiry into the alleged program fraud, waste, or abuse on approval from the State director of the Farm Service Agency of the State in which the alleged fraud, waste, or abuse occurred. If as a result of the inquiry, the Farm Service Agency concludes further investigation is warranted, but the Corporation declines to proceed with the investigation, the Farm Service Agency may refer the matter to the Inspector General of the Department of Agriculture. ``(3) Use of field infrastructure.--The plan required by paragraph (1) shall provide for the use of the field infrastructure of the Farm Service Agency. The Secretary shall ensure that relevant Farm Service Agency personnel are appropriately trained for any responsibilities assigned to the personnel under the plan. At a minimum, the personnel shall receive the same level of training and pass the same basic competency tests as required of loss adjusters of approved insurance providers. ``(4) Maintenance of provider effort.-- ``(A) In general.--The activities of the Farm Service Agency under this subsection do not affect the responsibility of approved insurance providers to conduct any audits of claims or other program reviews required by the Corporation. ``(B) Notification of providers.--The Corporation shall notify the appropriate approved insurance provider of a report from the Farm Service Agency regarding alleged program fraud, waste, or abuse, unless the provider is suspected to be included in, or a party to, the alleged fraud, waste, or abuse. ``(C) Response.--An approved insurance provider that receives a notice under subparagraph (B) shall submit a report to the Corporation, within an appropriate time period determined by the Secretary, describing the actions taken by the provider to investigate the allegations of program fraud, waste, or abuse contained in the notice. ``(5) Corporation response to provider reports.-- ``(A) Prompt response.--If an approved insurance provider reports to the Corporation that the approved insurance provider suspects intentional misrepresentation, fraud, waste, or abuse, the Corporation shall make a determination and provide, within 90 calendar days after receiving the report, a written response that describes the intended actions of the Corporation. ``(B) Cooperative effort.--The approved insurance provider and the Corporation shall take coordinated action in any case where misrepresentation, fraud, waste, or abuse is alleged. ``(C) Failure to timely respond.--If the Corporation fails to respond as required by subparagraph (A), an approved insurance provider may request the Farm Service Agency to assist the provider in an inquiry into the alleged program fraud, waste, or abuse. ``(e) Consultation with State FSA Committees.--The Secretary shall establish procedures under which the Corporation shall consult with the State committee of the Farm Service Agency for a State with respect to policies, plans of insurance, and material related to such policies or plans of insurance (including applicable sales closing dates, assigned yields, and transitional yields) offered in that State under this title. ``(f) Detection of Disparate Performance.-- ``(1) Covered activities.--The Secretary shall establish procedures under which the Corporation will be able to identify the following: ``(A) Any agent engaged in the sale of coverage offered under this title where the loss claims associated with such sales by the agent are equal to or greater than 150 percent (or an appropriate percentage specified by the Corporation) of the mean for all loss claims associated with such sales by all other agents operating in the same area, as determined by the Corporation. ``(B) Any person performing loss adjustment services relative to coverage offered under this title where such loss adjustments performed by the person result in accepted or denied claims equal to or greater than 150 percent (or an appropriate percentage specified by the Corporation) of the mean for accepted or denied claims (as applicable) for all other persons performing loss adjustment services in the same area, as determined by the Corporation. ``(2) Review.-- ``(A) Review required.--The Corporation shall conduct a review of any agent identified pursuant to paragraph (1)(A), and any person identified pursuant to paragraph (1)(B), to determine whether the higher loss claims associated with the agent or the higher number of accepted or denied claims (as applicable) associated with the person are the result of fraud, waste, or abuse. ``(B) Remedial action.--The Corporation shall take appropriate remedial action with respect to any occurrence of fraud, waste, or abuse identified in a review conducted under this paragraph. ``(3) Oversight of agents and loss adjusters.--The Corporation shall develop procedures to require an annual review by an approved insurance provider of the performance of each agent and loss adjuster used by the approved insurance provider. The Corporation shall oversee the conduct of annual reviews and may consult with an approved insurance provider regarding any remedial action that is determined to be necessary as a result of the annual review of an agent or loss adjuster. ``(g) Submission of Information to Corporation to Support Compliance Efforts.-- ``(1) Types of information required.--The Secretary shall establish procedures under which approved insurance providers shall submit to the Corporation the following information with respect to each policy or plan of insurance offered under this title: ``(A) The name and identification number of the insured. ``(B) The agricultural commodity to be insured. ``(C) The elected coverage level, including the price election, of the insured. ``(2) Time for submission.--The information required by paragraph (1) with respect to a policy or plan of insurance shall be submitted so as to ensure receipt by the Corporation not later than the Saturday of the week containing the calendar day that is 30 days after the applicable sales closing date for the crop to be insured. ``(h) Sanctions for Program Noncompliance and Fraud.-- ``(1) False information.--A producer, agent, loss adjuster, approved insurance provider, or other person that willfully and intentionally provides any false or inaccurate information to the Corporation or to an approved insurance provider with respect to a policy or plan of insurance under this title may, after notice and an opportunity for a hearing on the record, be subject to 1 or more of the sanctions described in paragraph (3). [[Page H3768]] ``(2) Compliance.--A person may, after notice and an opportunity for a hearing on the record, be subject to 1 or more of the sanctions described in paragraph (3) if the person is a producer, agent, loss adjuster, approved insurance provider, or other person that willfully and intentionally fails to comply with a requirement of the Corporation. ``(3) Authorized sanctions.--If the Secretary determines that a person covered by this subsection has committed a material violation under paragraph (1) or (2), the following sanctions may be imposed: ``(A) Civil fines.--A civil fine may be imposed for each violation in an amount not to exceed the greater of-- ``(i) the amount of the pecuniary gain obtained as a result of the false or inaccurate information provided or the noncompliance with a requirement of this title; or ``(ii) $10,000. ``(B) Producer disqualification.--In the case of a violation committed by a producer, the producer may be disqualified for a period of up to 5 years from receiving any monetary or nonmonetary benefit provided under each of the following: ``(i) This title. ``(ii) The Agricultural Market Transition Act (7 U.S.C. 7201 et seq.), including the noninsured crop disaster assistance program under section 196 of that Act (7 U.S.C. 7333). ``(iii) The Agricultural Act of 1949 (7 U.S.C. 1421 et seq.). ``(iv) The Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.). ``(v) The Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.). ``(vi) Title XII of the Food Security Act of 1985 (16 U.S.C. 3801 et seq.). ``(vii) The Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.). ``(viii) Any law that provides assistance to a producer of an agricultural commodity affected by a crop loss or a decline in the prices of agricultural commodities. ``(C) Disqualification of other persons.--In the case of a violation committed by an agent, loss adjuster, approved insurance provider, or other person (other than a producer), the violator may be disqualified for a period of up to 5 years from participating in any program, or receiving any benefit, under this title. ``(4) Assessment of sanction.--The Secretary shall consider the gravity of the violation of the person covered by this subsection in determining-- ``(A) whether to impose a sanction under this subsection; and ``(B) the type and amount of the sanction to be imposed. ``(5) Disclosure of sanctions.--Each policy or plan of insurance under this title shall provide notice describing the sanctions prescribed under paragraph (3) for willfully and intentionally-- ``(A) providing false or inaccurate information to the Corporation or to an approved insurance provider; or ``(B) failing to comply with a requirement of the Corporation. ``(6) Insurance fund.--Any funds collected under this subsection shall be deposited into the insurance fund established under section 516(c). ``(i) Annual Report on Program Compliance and Integrity Efforts.-- ``(1) Report required.--The Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate an annual report describing the operation of this section during the preceding year and efforts undertaken by the Secretary and the Corporation to carry out this section. ``(2) Information regarding fraud, waste, and abuse.--The report shall identify specific occurrences of waste, fraud, or abuse and contain an outline of actions that have been or are being taken to eliminate the identified waste, fraud, or abuse. ``(j) Information Management.-- ``(1) Systems upgrades.--The Secretary shall upgrade the information management systems of the Corporation used in the administration and enforcement and this title. In upgrading the systems, the Secretary shall ensure that new hardware and software are compatible with the hardware and software used by other agencies of the Department to maximize data sharing and promote the purpose of this section. ``(2) Use of available information technologies.--The Secretary shall use the information technologies known as data mining and data warehousing and other available information technologies to administer and enforce this title. ``(3) Use of private sector.--The Secretary may enter into contracts to use private sector expertise and technological resources in implementing this subsection. ``(k) Funding.-- ``(1) Available funds.--To carry out this section and sections 502(c), 506(h), 508(a)(3)(B), and 508(f)(3)(A), the Corporation may use, from amounts made available from the insurance fund established under section 516(c), not more than $23,000,000 during the period of fiscal years 2001 through 2005, of which not more than $9,000,000 shall be available for fiscal year 2001. ``(2) Prohibition.--None of the funds made available under paragraph (1) may be used to pay the salaries of employees of the Corporation.''. (b) Conforming Amendment.--Section 506 of the Federal Crop Insurance Act (7 U.S.C. 1506) is amended-- (1) by striking subsection (q); and (2) by redesignating subsections (r) and (s) as subsections (q) and (r), respectively. SEC. 122. PROTECTION OF CONFIDENTIAL INFORMATION. Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502) is amended by adding at the end the following: ``(c) Protection of Confidential Information.-- ``(1) General prohibition against disclosure.--Except as provided in paragraph (2), the Secretary, any other officer or employee of the Department or an agency thereof, an approved insurance provider and its employees and contractors, and any other person may not disclose to the public information furnished by a producer under this title. ``(2) Authorized disclosure.-- ``(A) Disclosure in statistical or aggregate form.-- Information described in paragraph (1) may be disclosed to the public if the information has been transformed into a statistical or aggregate form that does not allow the identification of the person who supplied particular information. ``(B) Consent of producer.--A producer may consent to the disclosure of information described in paragraph (1). The participation of the producer in, and the receipt of any benefit by the producer under, this title or any other program administered by the Secretary may not be conditioned on the producer providing consent under this paragraph. ``(3) Violations; penalties.--Section 1770(c) of the Food Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect to the release of information collected in any manner or for any purpose prohibited by this subsection.''. SEC. 123. GOOD FARMING PRACTICES. Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amended by striking paragraph (3) and inserting the following: ``(3) Exclusion of losses due to certain actions of producer.-- ``(A) Exclusions.--Insurance provided under this subsection shall not cover losses due to-- ``(i) the neglect or malfeasance of the producer; ``(ii) the failure of the producer to reseed to the same crop in such areas and under such circumstances as it is customary to reseed; or ``(iii) the failure of the producer to follow good farming practices, including scientifically sound sustainable and organic farming practices. ``(B) Good farming practices.-- ``(i) Informal administrative process.--A producer shall ha