(e) FUNDING OF LIVESTOCK PILOT PROGRAMS.

(1) AUTHORIZATION OF APPROPRIATIONS.— Section 516(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended

(A) by striking "years" and inserting "years the following:";

(B) by capitalizing the first letter of the first word of each subparagraph;

(C) by striking "; and" at the end of subparagraph (A) and inserting a period; and

(D) by adding at the end the following new subparagraph:

"(C) Costs associated with the conduct of livestock pilot programs carried out under section 508(h)(10), subject to subparagraph (F) of such section.".

(2) USE OF INSURANCE FUND.-Section 516(b)(1) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(1)) is amended

(A) by striking "including-" and inserting "including the following:";

(B) by capitalizing the first letter of the first word of each subparagraph;

(C) by striking the semicolon at the end of subparagraph (A) and inserting a period;

(D) by striking "; and" at the end of subparagraph (B) and inserting a period; and

(E) by adding at the end the following new subparagraph:

"(D) Costs associated with the conduct of livestock pilot programs carried out under section 508(h)(10), subject to subparagraph (F) of such section.".

SEC. 106. COST OF PRODUCTION AS A PRICE ELECTION.

Section 508(c)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(c)(5)) is amended

(1) by striking "The Corporation shall establish a price" in the matter preceding subparagraph (A) and inserting "For purposes of this title, the Corporation shall establish or approve a price";

(2) by striking "or" at the end of subparagraph (A);

(3) by striking the period at the end of subparagraph (B) and inserting "; or"; and

(4) by adding at the end the following— "(C) 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).".

SEC. 107. PREMIUM DISCOUNTS FOR GOOD PER

FORMANCE.

Section 508(d) of the Federal Crop Insurance Act (7 U.S.C. 1508(d)) is amended by adding at the end the following new paragraph: "(3) PREMIUM DISCOUNTS.

"(A) PERFORMANCE-BASED DISCOUNT.—The Corporation may provide a performancebased 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.

"(B) DISCOUNT FOR REDUCED PRICE FOR CERTAIN COMMODITIES.-A producer who insured wheat, barley, oats, or rye during at least 2 of the 1995 through 1999 crop years may be eligible to receive an additional 20 percent premium discount on the producer-paid premium for any 2000 crop policy if the producer demonstrates that the producer's wheat, barley, oats, or rye crop was subjected to a discounted price due to Scab or Vomitoxin damage, or both, during any 2 years of that period. The 2000 insured crop or crops need not be wheat, barley, oats, or rye to qualify for the discount under this subparagraph. The 2 years of insurance and the 2 years of discounted prices need not be the same.". SEC. 108. OPTIONS FOR CATASTROPHIC RISK

PROTECTION.

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 new paragraph:

COV

"(3) ALTERNATIVE CATASTROPHIC ERAGE. Beginning with the 2000 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 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 for purposes of subsection (e)(2)(A).".

SEC. 109. AUTHORITY FOR NONPROFIT ASSOCIATIONS TO PAY FEES ON BEHALF OF PRODUCERS.

Section 508(b)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended by adding at the end the following new subparagraph:

"(F) PAYMENT OF FEES ON BEHALF OF PRO

DUCERS.

"(i) PAYMENT AUTHORIZED.-Notwithstanding any other subparagraph of this paragraph, a cooperative association of agricultural producers or a nonprofit trade association may pay to the Corporation, on behalf of a member of the association who consents to be insured under such an arrangement, all or a portion of the fees imposed under subparagraphs (A) and (B) for catastrophic risk protection.

"(ii) TREATMENT OF LICENSING FEES.-A licensing fee or other payment made by the insurance provider to the cooperative association or trade association in connection with the issuance of catastrophic risk protection or additional coverage under this section to members of the cooperative association or trade association shall not be considered to be a rebate to the members if the members are informed in advance of the fee or payment.

"(iii) SELECTION OF PROVIDER; DELIVERY.— Nothing in this subparagraph shall be construed so as to limit the ability of a producer to choose the licensed insurance agent or other approved insurance provider from whom the member will purchase a policy or plan of insurance or to refuse coverage for which a payment is offered to be made under clause (i). 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.

“(iv) ADDITIONAL COVERAGE ENCOURAGED.— Cooperatives and trade associations 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 such member producers.".

SEC. 110. ELECTIONS REGARDING PREVENTED PLANTING COVERAGE.

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amended by inserting after paragraph (7), as added by section 104, the following new paragraph:

"(8) PREVENTED PLANTING COVERAGE.— "(A) ELECTION NOT TO RECEIVE COVERAGE.— “(i) ELECTION.-A producer may elect not to receive coverage for prevented planting of an agricultural commodity.

“(ii) REDUCTION.-In the case of an election under clause (i), the Corporation shall provide a reduction in the premium payable by the producer for a plan of insurance in an

amount equal to the premium for the prevented planting coverage, as determined by the Corporation.

"(B) EQUAL COVERAGE.-For each agricultural commodity for which prevented planting coverage is available, the Corporation shall offer an equal percentage level of prevented planting coverage.

"(C) AREA CONDITIONS REQUIRED FOR PAYMENT. -The Corporation shall limit prevented planting payments to producers to those situations in which producers in the area in which the farm is located are generally affected by the conditions that prevent an agricultural commodity from being planted.

"(D) SUBSTITUTE COMMODITY.—

“(i) AUTHORITY TO PLANT.-Subject to clause (iv), a producer who has prevented planting coverage and who is eligible to receive an indemnity under such coverage may plant an agricultural commodity, other than the commodity covered by the prevented planting coverage, on the acreage originally prevented from being planted.

"(ii) NONAVAILABILITY OF INSURANCE.—A substitute agricultural commodity planted as authorized by clause (i) for harvest in the same crop year shall not be eligible for coverage under a policy or plan of insurance under this title or for noninsured crop disaster assistance under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333). For purposes of subsection (b)(7) only, the substitute commodity shall be deemed to have at least catastrophic risk protection so as to satisfy the requirements of that subsection.

“(iii) EFFECT ON ACTUAL PRODUCTION HISTORY. If a producer plants a substitute agricultural commodity as authorized by clause (i) for a crop year, the Corporation shall assign the producer a recorded yield, for that crop year for the commodity that was prevented from being planting, equal to 60 percent of the producer's actual production history for such commodity for purposes of determining the producer's actual production history for subsequent crop years.

"(iv) EFFECT ON PREVENTED PLANTING PAYMENT.-If a producer plants a substitute agricultural commodity as authorized by clause (i) before the latest planting date established by the Corporation for the agricultural commodity prevented from being planted, the Corporation shall not make a prevented planting payment with regard to the commodity prevented from being planted.". SEC. 111. LIMITATIONS UNDER NONINSURED CROP DISASTER ASSISTANCE PROGRAM.

(b) LIMITATION.-Section 196(i) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333(i)) is amended— (1) in paragraph (1)(B)—

(A) by striking "GROSS REVENUES" in the subparagraph heading and inserting "ADJUSTED GROSS INCOME"; and

(B) by striking "gross revenue" and "gross revenues" each place they appear and inserting "adjusted gross income"; and

(2) by striking paragraph (4) and inserting the following new paragraph:

“(4) LIMITATION.-A person who has qualifying adjusted gross income in excess of $2,000,000 during the taxable year shall not be eligible to receive any noninsured crop disaster assistance payment under this section.".

SEC. 112. QUALITY GRADE LOSS ADJUSTMENT.

Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amended by inserting after paragraph (8), as added by section 110, the following new paragraph:

"(9) QUALITY GRADE LOSS ADJUSTMENT.— Consistent with subsection (m)(4), by the 2000 crop year, the Corporation shall enter into a contract to analyze its quality loss ad

justment procedures and make such adjustments as may be necessary to more accurately reflect local quality discounts that are applied to agricultural commodities insured under this title, taking into consideration the actuarial soundness of the adjustment and the prevention of fraud, waste and abuse.".

TITLE II—IMPROVING PROGRAM
INTEGRITY

SEC. 201. LIMITATION ON DOUBLE INSURANCE. Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) is amended by inserting after paragraph (9), as added by section 112, the following new paragraph:

"(10) LIMITATION ON DOUBLE INSURANCE.— "(A) RESTRICTED TO CATASTROPHIC RISK PROTECTION.-Except for situations covered by subparagraph (B), no policy or plan of insurance may be offered under this title for more than one agricultural commodity planted on the same acreage in the same crop year unless the coverage for the additional crop is limited to catastrophic risk protection available under subsection (b).

"(B) EXCEPTION FOR DOUBLE-CROPPING.—A policy or plan of insurance may be offered under this title for an agricultural commodity and for an additional agricultural commodity when both agricultural commodities are normally harvested within the same crop year on the same acreage if the following conditions are met:

"(i) There is an established practice of double-cropping in the area and the additional agricultural commodity is customarily double-cropped in the area with the first agricultural commodity, as determined by the Corporation.

"(ii) A policy or plan of insurance for the first agricultural commodity and the additional agricultural commodity is available under this title.

"(iii) The additional commodity is planted on or before the final planting date or late planting date for that additional commodity, as established by the Corporation.". SEC. 202. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY.

(a) ADDITIONAL METHODS.-Section 506(q) of the Federal Crop Insurance Act (7 U.S.C. 1506(q)) is amended

(1) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3):

(2) by inserting after the subsection heading the following new paragraph (1):

"(1) PURPOSE.-The purpose of this subsection is to improve compliance with the Federal crop insurance program and to improve program integrity."; and

(3) by adding at the end the following new paragraphs:

"(4) RECONCILING PRODUCER INFORMATION.— The Secretary shall develop and implement a coordinated plan for the Corporation and the Administrator of 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 2000 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.

"(5) IDENTIFICATION AND ELIMINATION OF FRAUD, WASTE, AND ABUSE.—

"(A) 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—

"(i) conducting fact finding relative to allegations of program fraud, waste, and abuse, both at the request of the Corporation or on

its own initiative after consultation with the Corporation;

"(ii) reporting any allegation of fraud, waste, and abuse or identified program vulnerabilities to the Corporation in a timely manner; and

"(iii) 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.

"(B) USE OF FIELD INFRASTRUCTURE.—The plan required by this paragraph shall use the field infrastructure of the Farm Service Agency, and the Secretary shall ensure that relevant Farm Service Agency personnel are appropriately trained for any responsibilities assigned to them under the plan. At a minimum, such personnel shall receive the same level of training and pass the same basic competency tests as required of loss adjusters of approved insurance providers.

"(C) MAINTENANCE OF PROVIDER EFFORT; COOPERATION. The activities of the Farm Service Agency under this paragraph do not affect the responsibility of approved insurance providers to conduct any audits of claims or other program reviews required by the Corporation. If an insurance provider reports to the Corporation that it suspects intentional misrepresentation, fraud, waste, or abuse, the Corporation shall make a determination and provide a written response within 90 days after receiving the report. The insurance provider and the Corporation shall take coordinated action in any case where misrepresentation, fraud, waste, or abuse has oc

curred.

"(6) CONSULTATION WITH STATE COMMITTEES. The Corporation shall establish a mechanism under which State committees of the Farm Service Agency are consulted concerning policies and plans of insurance offered in a State under this title.

"(7) ANNUAL REPORT ON COMPLIANCE EFFORTS. 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 containing findings relative to the efforts undertaken pursuant to paragraphs (4) and (5). The report shall identify specific occurrences of waste, fraud, and abuse and contain an outline of actions that have been or are being taken to eliminate the identified waste, fraud, and abuse.".

(b) TECHNICAL CORRECTION.-Paragraph (3) of section 506(q) of the Federal Crop Insurance Act (7 U.S.C. 1506(q)), as redesignated by subsection (a), is amended by striking "this subsection" and inserting "this paragraph".

SEC. 203. SANCTIONS FOR FALSE INFORMATION.

(a) AUTHORIZED SANCTIONS.-Section 506(n) of the Federal Crop Insurance Act (7 U.S.C. 1506(n)) is amended

(1) in the subsection heading, by striking “PENALTIES” and inserting "SANCTIONS FOR VIOLATIONS";

(2) by redesignating paragraph (2) as paragraph (3) and, in such paragraph, by striking "PENALTY" and "assessing penalties" and inserting "SANCTION" and "imposing a sanction", respectively; and

(3) by striking paragraph (1) and inserting the following new paragraphs:

"(1) FALSE INFORMATION.-If a producer, an agent, a loss adjuster, an approved insurance provider, or any other person 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, the Corporation may, after notice and an opportunity for a hearing on the record, impose one or more of the sanctions specified in paragraph (2).

"(2) AUTHORIZED SANCTIONS.-The following sanctions may be imposed for a violation under paragraph (1):

"(A) The Corporation may impose a civil fine for each violation 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

“(ii) $10,000.

"(B) If the violation is committed by a producer, the producer may be disqualified for a period of up to 5 years from

"(i) participating in, or receiving any benefit provided under this title, the noninsured crop disaster assistance program under section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333), the Agricultural Market Transition Act (7 U.S.C. 7201 et seq.), the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.), the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), or the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.);

"(ii) receiving any loan made, insured, or guaranteed under the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.);

"(iii) receiving any benefit provided, or indemnity made available, under any other law to assist a producer of an agricultural commodity due to a crop loss or a decline in commodity prices; or

"(iv) receiving any cost share assistance for conservation or any other assistance provided under title XII of the Food Security Act (16 U.S.C. 3801 et seq.).

"(C) If the violation is committed by an agent, loss adjuster, approved insurance provider, or any other person (other than a producer), the violator may be disqualified for a period of up to 5 years from participating in, or receiving any benefit provided under this title.

"(D) If the violation is committed by a producer, the Corporation may require the producer to forfeit any premium owed under the policy, notwithstanding a denial of claim or collection of an overpayment, if the false or inaccurate information was material.".

(b) DISCLOSURE OF SANCTIONS.-Section 506(n) of the Federal Crop Insurance Act (7 U.S.C. 1506(n)) is amended by adding at the end the following new paragraph:

"(4) DISCLOSURE OF SANCTIONS.-Each policy or plan of insurance under this title shall prominently indicate indicate the sanctions prescribed under paragraph (2) for willfully and intentionally providing false or inaccurate information to the Corporation or to an approved insurance provider.".

SEC. 204. 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 new subsection:

"(c) PROTECTION OF CONFIDENTIAL INFORMATION.

"(1) AUTHORIZED DISCLOSURE.-In the case of information furnished by a producer to participate in or receive any benefit under this title, 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 the information to the public, unless the information has been transformed into a statistical or aggregate form that does not allow the identification of the person who supplied particular information.

"(2) VIOLATIONS; PENALTIES.-Subsection (c) of section 1770 of the Food Security Act of 1985 (7 U.S.C. 2276) shall apply with respect to the release of information collected in any manner or for any purpose prohibited by paragraph (1).".

SEC. 205. RECORDS AND REPORTING.

(a) CONDITION OF OBTAINING COVERAGE.— Section 508(f)(3)(A) of the Federal Crop Insurance Act (7 U.S.C. 1508(f)(3)(A)) is amended by striking "provide, to the extent required by the Corporation, records acceptable to the Corporation of historical acreage and production of the crops for which the insurance is sought" and inserting "provide annually records acceptable to the Secretary regarding crop acreage, acreage yields, and production for each agricultural commodity insured under this title".

(b) COORDINATION OF RECORDS.-Section 506(h) of the Federal Crop Insurance Act (7 U.S.C. 1506(h)) 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 new paragraph:

"(2) COORDINATION AND USE OF RECORDS.— "(A) COORDINATION BETWEEN AGENCIES.— The Secretary shall ensure that recordkeeping and reporting requirements under this title and section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333) are coordinated by the Corporation and the Farm Service Agency to avoid duplication of such records, to streamline procedures involved with the submission of such records, and to enhance the accuracy of such records.

"(B) USE OF RECORDS.-Notwithstanding section 502(c), records submitted in accordance with this title and section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333) shall be available to agencies and local offices of the Department, appropriate State and Federal agencies and divisions, and approved insurance providers for use in carrying out this title and such section 196 as well as other agricultural programs and related responsibilities.".

(c) NONINSURED CROP DISASTER ASSISTANCE PROGRAM. Section 196(b) of the Federal Agriculture Improvement and Reform Act of 1996 (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, acting through the Agency, records of crop acreage, acreage yields, and production for each eligible crop."; and

(2) in paragraph (3), by inserting "annual” after "shall provide".

SEC. 206. COMPLIANCE WITH STATE LICENSING

REQUIREMENTS.

Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508) is amended by adding at the end the following new subsection:

"(0) COMPLIANCE WITH STATE LICENSING REQUIREMENTS.-Any person who sells or solicits the purchase of a policy or plan of insurance under this title, including catastrophic risk protection, in any State shall be licensed and otherwise qualified to do business in that State.".

TITLE III-ADMINISTRATION SEC. 301. BOARD OF DIRECTORS OF CORPORATION.

(a) CHANGE IN COMPOSITION.-Section 505 of the Federal Crop Insurance Act (7 U.S.C. 1505) is amended by striking the section heading, "SEC. 505.", and subsection (a) and inserting the following:

"SEC. 505. MANAGEMENT OF CORPORATION. "(a) BOARD OF DIRECTORS.—

"(1) ESTABLISHMENT.-The management of the Corporation shall be vested in a Board of Directors subject to the general supervision of the Secretary.

"(2) COMPOSITION.-The Board shall consist of only the following members:

"(A) The manager of the Corporation, who shall serve as a nonvoting ex officio member.

"(B) The Under Secretary of Agriculture responsible for the Federal crop insurance program.

"(C) One additional Under Secretary of Agriculture (as designated by the Secretary). "(D) The Chief Economist of the Department of Agriculture.

"(E) One person experienced in the crop insurance business.

"(F) One person experienced in the regulation of insurance.

"(G) Four active producers who are policy holders, are from different geographic areas of the United States, and represent a crosssection of agricultural commodities grown in the United States. At least one of the four shall be a specialty crop producer.

“(3) APPOINTMENT OF PRIVATE SECTOR MEMBERS. The members of the Board described in subparagraphs (E), (F), and (G) of paragraph (2)

"(A) shall be appointed by, and hold office at the pleasure of, the Secretary; and "(B) shall not be otherwise employed by the Federal Government.

"(4) CHAIRPERSON.-The Board shall select a member of the Board to serve as Chairperson.".

(b) EFFECTIVE DATE.-The amendment made by subsection (a) shall take effect 30 days after the date of the enactment of this Act.

(c) EFFECT ON EXISTING BOARD.—A member of the Board of Directors of the Federal Crop Insurance Corporation on the effective date specified in subsection (b) may continue to serve as a member of the Board until the earlier of the following:

(1) The date the replacement Board is appointed.

(2) The end of the 180-day period beginning on the effective date specified in subsection (b).

SEC. 302. PROMOTION OF SUBMISSION OF POLICIES AND RELATED MATERIALS.

(a) REIMBURSEMENT AUTHORITY.-Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)), as amended by section 105(a) of this Act, is amended by inserting after paragraph (5) the following new paragraph: "(6) REIMBURSEMENT OF RESEARCH, DEVELOPMENT, AND MAINTENANCE COSTS.

"(A) REIMBURSEMENT PROVIDED.-Subject to the conditions of this paragraph, the Corporation shall provide a payment to reimburse an applicant for research, development, and maintenance costs directly related to a policy or other material that is"(i) submitted to, and approved by, the Board under this subsection for reinsurance; and

"(ii) if applicable, offered for sale to producers.

"(B) DURATION.-Payments under subparagraph (A) may be made available beginning in fiscal year 2001. Payments with respect to the maintenance of an approved policy or other material may be provided for a period of not more than 4 reinsurance years following Board approval. Upon the expiration of that 4-year period, or earlier upon the agreement of the Corporation and the person receiving the payment, the Corporation shall assume responsibility for maintenance of a successful policy, as determined by the Corporation based on the market share attained by the policy, the total number of policies sold, the total amount of premium paid, and the performance of the policy in the States where the policy is sold.

"(C) TREATMENT OF PAYMENT.-Payments made under subparagraph (A) for a policy or other material shall be considered as payment in full for the research and development conducted with regard to the policy or material and any property rights to the policy or material.

"(D) REIMBURSEMENT AMOUNT.-The Corporation shall determine the amount of the

payment under subparagraph (A) for an approved policy or other material based on the complexity of the policy or material and the size of the area in which the policy or material is expected to be used.".

(b) ISSUANCE OF REGULATIONS.-Not later than October 1, 2000, the Corporation shall issue final regulations to carry out the amendment made by subsection (a). SEC. 303. RESEARCH AND DEVELOPMENT, INCLUDING CONTRACTS REGARDING UNDERSERVED COMMODITIES.

(a) SUPPORT FOR PRIVATE RESEARCH AND DEVELOPMENT.-Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m)) is amended by adding at the end the following new paragraph:

"(4) PRIVATE RESEARCH AND DEVELOPMENT OF POLICIES AND OTHER MATERIALS.—

"(A) USE OF REIMBURSEMENT AUTHORITY.— To encourage and promote the necessary research and development for policies, plans of insurance, and related materials, including policies, plans, and materials under the livestock pilot programs under subsection (h)(10), the Corporation shall make full use of private resources by providing payment for research and development for approved policies and plans of insurance, and related materials, pursuant to subsection (h)(6). "(B) CONTRACTS FOR UNDERSERVED COMMODITIES.

"(i) DEVELOPMENT OF PRODUCTS AND RELATED MATERIALS.-In the event the Corporation determines that an agricultural commodity, including a specialty crop, is not adequately served by policies and plans of insurance and related materials submitted under subsection (h) or any other provision of this title, the Corporation may enter into a contract, under procedures prescribed by the Corporation, directly with any person or entity with experience in crop insurance or farm or ranch risk management, including universities, providers of crop insurance, and trade and research organizations, to carry out research and development for policies and plans of insurance and related materials for that agricultural commodity without regard to the limitations contained in this title.

"(ii) TYPES OF CONTRACTS.-A contract under this subparagraph may provide for research and development regarding new or expanded policies and plans of insurance and related materials, including policies based on adjusted gross income, cost-of-production, quality losses, and an intermediate base program with a higher coverage and cost than catastrophic risk protection.

"(iii) DELAYED EFFECTIVE DATE FOR CONTRACTS.-A contract entered into under this subparagraph may not take effect before October 1, 2000.

"(iv) USE OF RESULTING POLICIES AND PLANS. The Corporation may offer any policy or plan of insurance developed under this subparagraph that is approved by the Board.

"(C) CONTRACT FOR REVENUE COVERAGE PLAN. The Corporation shall enter into a contract for research and development regarding one or more revenue coverage plans designed to enable producers to take maximum advantage of fluctuations in market prices and thereby maximize revenue realized from the sale of a crop. Such a plan may include market instruments currently available or may involve the development of new instruments to achieve this goal. Not later than 15 months after the date of the enactment of this paragraph, the Corporation shall submit to Congress a report containing the results of the contract.".

(b) RELIANCE ON PRIVATE DEVELOPMENT OF NEW POLICIES.-Section 508(m)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508(m)(2)) is amended

(1) by striking "EXCEPTION.-No action" and inserting

"(2) EXCEPTIONS.—

"(A) PRIVATE AVAILABILITY.-No action"; and

(2) by adding at the end the following new subparagraph:

"(B) PROHIBITED RESEARCH AND DEVELOPMENT BY CORPORATION.-Notwithstanding paragraphs (1) and (5), on and after October 1, 2000, the Corporation shall not conduct research and development for any new policy or plan of insurance for an agricultural commodity offered under this title. Any policy or plan of insurance developed by the Corporation under this title before that date shall, at the discretion of the Corporation, continue to be offered for sale to producers.".

(c) PARTNERSHIPS FOR RISK MANAGEMENT DEVELOPMENT AND

IMPLEMENTATION.-Section 508(m) of the Federal Crop Insurance Act (7 U.S.C. 1508(m)) is amended by inserting after paragraph (4), as added by subsection (a), the following new paragraph:

"(5) PARTNERSHIPS FOR RISK MANAGEMENT DEVELOPMENT AND IMPLEMENTATION.—

"(A) PURPOSE.-The purpose of this paragraph is to authorize the Corporation to enter into partnerships with public and private entities for the purpose of increasing the availability of loss mitigation, financial, and other risk management tools for crop producers, with priority given to risk management tools for producers of agricultural commodities covered by section 196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333) and specialty and underserved commodity producers.

"(B) AUTHORITY.-Subject to subparagraphs (D) and (E), the Corporation may enter into partnerships with the Cooperative State Research, Education, and Extension Service, the Agricultural Research Service, the National Oceanic Atmospheric Administration, and other appropriate public and private entities with demonstrated capabilities in developing and implementing risk management and marketing options for specialty crops and underserved commodities.

"(C) OBJECTIVES.-The Corporation may enter into a partnership under subparagraph (B)—

"(i) to enhance the notice and timeliness of notice of weather conditions that could negatively affect crop yields, quality, and final product use in order to allow producers to take preventive actions to increase end-product profitability and marketability and to reduce the possibility of crop insurance claims;

"(ii) to develop a multifaceted approach to pest management and fertilization to decrease inputs, decrease environmental exposure, and increase application efficiency;

"(iii) to develop or improve techniques for planning, breeding, planting, growing, maintaining, harvesting, storing, shipping, and marketing that will address quality and quantity challenges associated with year-toyear and regional variations;

"(iv) to clarify labor requirements and assist producers in complying with requirements to better meet the physically intense and time-compressed planting, tending, and harvesting requirements associated with the production of specialty crops and underserved commodities;

"(v) to provide assistance to State foresters or equivalent officials for the prescribed use of burning on private forest land for the prevention, control, and suppression of fire;

"(vi) to provide producers with training and informational opportunities so that they will be better able to use financial management, crop insurance, marketing contracts, and other existing and emerging risk management tools; and

"(vii) to develop other risk management tools to further increase economic and production stability.

"(D) FUNDING SOURCE.-If the Corporation determines that the entire amount available to provide reimbursement payments under subsection (h) and contract payments under paragraph (4) (in this subparagraph referred to as 'reimbursement and contract payments') for a fiscal year is not needed for such purposes, the Corporation may use a portion of the excess amount to carry out this paragraph, subject to the following:

"(i) During fiscal years 2001 through 2004, amounts available for reimbursement and contract payments may be used to carry out this paragraph only if the total amount to be used for reimbursement and contract payments is less than $44,000,000 for fiscal year 2001, $47,000,000 for fiscal year 2002, $50,000,000 for fiscal year 2003, and $52,000,000 for fiscal year 2004.

"(ii) During fiscal years 2001 through 2004, the total amount used to carry out this paragraph for a fiscal year may not exceed the difference between the amount specified in clause (i) for that fiscal year and the amount actually used for reimbursement and contract payments.

"(E) DELAYED AUTHORITY.-The Corporation may not enter into a partnership under the authority of this paragraph before October 1, 2000.".

SEC. 304. FUNDING FOR REIMBURSEMENT AND RESEARCH AND DEVELOPMENT.

(a) EXPENDITURES.-Section 508(h)(6) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(6)), as added by section 302(a) of this Act, is amended by adding at the end the following new subparagraph:

"(E) EXPENDITURES.

"(i) SPECIALTY CROPS.-Of the total amount made available to provide payments under this paragraph and subsection (m)(4)(B) for a fiscal year, $25,000,000 shall be reserved for research and development contracts under subsection (m)(4)(B). The Corporation may use a portion of the reserved. amount for other purposes under this paragraph, with priority given to underserved commodities, if the Corporation determines that the entire amount is not needed for such contracts. If the reserved amount is insufficient for a fiscal year, the Corporation may use amounts in excess of the reserved amount for such contracts.

"(ii) LIMITATION.-In providing payments under this paragraph and subsection (m)(4)(B), the Corporation shall not obligate or expend more than $55,000,000 during any fiscal year.".

(b) FUNDING.

(1) AUTHORIZATION OF APPROPRIATIONS.— Section 516(a)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(a)(2)) is amended by adding at the end the following new subparagraph:

"(D) Costs associated with the reimbursement for research, development, and maintenance costs of approved policies and other materials provided under section 508(h)(6) and contracting for research and development under section 508(m)(4)(B).”.

(2) USE OF INSURANCE FUND.-Section 516(b)(1) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(1)) is amended by adding at the end the following new subparagraph:

"(E) Reimbursement for research, development, and maintenance costs of approved policies and other materials provided under section 508(h)(6) and contracting for research and development under section

508(m)(4)(B).". SEC. 305. BOARD CONSIDERATION OF SUBMITTED POLICIES AND MATERIALS.

(a) PERSONS AUTHORIZED TO SUBMIT.-Section 508(h)(1) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(1)) is amended by insert

ing after "a person" the following: "(including an approved insurance provider, a college or university, a cooperative or trade association, or any other person)".

(b) SALE BY APPROVED INSURANCE PROVIDERS.-Section 508(h)(3) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(3)) is amended by inserting after "for sale" the following: "by approved insurance providers".

(c) TIME PERIODS FOR APPROVAL OR DISAPPROVAL.-Section 508(h)(4)(A) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)(4)(A)), as amended by section 105(c), is amended

and

(1) in clause (iii), as redesignated by section 105(c), by striking "of the applicant." and all that follows through the end of the clause inserting ", and such application, as modified, shall be considered by the Board in the manner provided in clause (iv) within the 30-day period beginning on the date the modified application is submitted. Any notification of intent to disapprove a policy or other material submitted under this subsection shall be accompanied by a complete explanation as to the reasons for the Board's intention to deny approval."; and

(2) by striking clause (iv), as redesignated by section 105(c), and inserting the following new clause:

"(iv) Not later than 120 days after a policy or other material is submitted under this subsection, the Board shall make a determination to approve or disapprove such policy or material. Any determination by the Board to disapprove any policy or other material shall be accompanied by a complete, explanation of the reasons for the Board's decision to deny approval. In the event the Board fails to make a determination within the prescribed time period, the submitted policy or other material shall be deemed approved by the Board for the initial reinsurance year designated for the policy or material, except in the case where the Board and the applicant agree to an extension.".

(d) FUNDING TO EXPEDITE CONSIDERATION.— Effective October 1, 2000, section 516(b)(2) of the Federal Crop Insurance Act (7 U.S.C. 1516(b)(2)) is amended

(1) by striking "RESEARCH AND DEVELOPMENT EXPENSES.-" and inserting "POLICY CONSIDERATION EXPENSES.-"; and

(2) in subparagraph (A), by striking "research and development expenses of the Corporation" and inserting "costs associated with considering for approval or disapproval policies and other materials under subsections (h) and (m)(4) of section 508, costs associated with implementing such subsection (m)(4), and costs to contract out for assistance in considering such policies and other materials".

SEC. 306. CONTRACTING FOR RATING OF PLANS OF INSURANCE. Section 507(c)(2) of the Federal Crop Insurance Act (7 U.S.C. 1507(c)(2)) is amended(1) by striking "actuarial, loss adjustment," and inserting "actuarial services, services relating to loss adjustment and rating plans of insurance,"; and

(2) by inserting after "private sector" the following: "and to enable the Corporation to concentrate on regulating the provision of insurance under this title and evaluating new products and materials submitted under section 508(h)”.

SEC. 307. ELECTRONIC AVAILABILITY OF CROP INSURANCE INFORMATION. Section 508(a)(5) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)(5)) is amended(1) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii) and moving such clauses 2 ems to the right;

(2) by striking "The Corporation" and inserting the following:

"(A) AVAILABLE INFORMATION.-The Corporation"; and

(3) by adding at the end the following new subparagraph:

"(B) USE OF ELECTRONIC METHODS.-The Corporation shall make the information described in subparagraph (A) available electronically to producers and approved insurance providers. To the maximum extent practicable, the Corporation shall also allow producers and approved insurance providers to use electronic methods to submit information required by the Corporation.".

SEC. 308. FEES FOR USE OF NEW POLICIES AND PLANS OF INSURANCE.

Section 508(h) of the Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended by adding at the end the following new paragraph:

"(11) FEES FOR NEW POLICIES AND PLANS OF INSURANCE.

“(A) AUTHORITY TO IMPOSE FEE.-Effective beginning with fiscal year 2001, if a person develops a new policy or plan of insurance and does not apply for reimbursement of research, development, and maintenance costs under paragraph (6), the person shall have the right to receive a fee from any approved insurance provider that elects to sell the new policy or plan of insurance. Notwithstanding paragraph (5), once the right to collect a fee is asserted with respect to a new policy or plan of insurance, no approved insurance provider may offer the new policy or plan of insurance in the absence of a fee agreement with the person who developed the policy or plan.

"(B) DEFINITION. For purposes of this paragraph only, the term 'new policy or plan of insurance' means a policy or plan of insurance that was approved by the Board on or after October 1, 2000, and was not available at the time the policy or plan of insurance was approved by the Board.

"(C) AMOUNT.-The amount of the fee that is payable by an approved insurance provider to offer a new policy or a plan of insurance under subparagraph (A) shall be an amount that is determined by the person that developed the new policy or plan of insurance, subject to the approval of the Board under subparagraph (D).

"(D) APPROVAL.-The Board shall approve the amount of a fee determined under subparagraph (C) for a new policy or plan of insurance unless the Board can demonstrate that the fee amount

"(i) is unreasonable in relation to the research and development costs associated with the new policy or plan of insurance; and "(ii) unnecessarily inhibits the use of the new policy or plan of insurance.". SEC. 309. CLARIFICATION OF PRODUCER REQUIREMENT ΤΟ FOLLOW GOOD FARMING PRACTICES.

Section 508(a)(3)(C) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)(3)(C)) is amended by inserting after "good farming practices" the following: ", including scientifically sound sustainable and organic farming practices".

SEC. 310. REIMBURSEMENTS AND RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.

(a) REIMBURSEMENT RATE CHANGES.(1) CAT LOSS ADJUSTMENT.-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". (2) REIMBURSEMENT FOR ADMINISTRATIVE AND OPERATING COSTS.-Section 508(k)(4)(A)(ii) of the Federal Crop Insurance Act (7 U.S.C. 1508(k)(4)(A)(ii)) is amended by striking "24.5 percent" and inserting "24 percent".

(3) APPLICATION OF AMENDMENTS.-The amendments made by this subsection shall apply with respect to the 2001 and subsequent reinsurance years.

(b) RENEGOTIATION.-Effective for the 2002 reinsurance year, the Federal Crop Insurance Corporation may renegotiate the Standard Reinsurance Agreement.

TITLE IV-EFFECTIVE DATE AND
IMPLEMENTATION

SEC. 401. EFFECTIVE DATE.

Except as provided in sections 301(b) and 305(d), this Act and the amendments made by this Act shall take effect on the date of the enactment of this Act. The actual implementation by the Secretary of Agriculture and the Federal Crop Insurance Corporation of an amendment made by this Act shall depend on the terms of the amendment or, in the absence of an express implementation date in the amendment, the special rules specified in section 402.

SEC. 402. SPECIAL RULES REGARDING IMPLEMENTATION OF CERTAIN AMENDMENTS.

(a) IMPLEMENTATION FOR 2000 CROP YEAR.The amendments made by the following sections of this Act shall apply beginning with the 2000 crop year:

(1) Section 104, relating to review and adjustment in rating methodologies.

(2) Section 106, relating to cost of production as a price election.

(3) Section 107, relating to premium discounts for good performance.

(4) Section 202, relating to improving program compliance and integrity.

(5) Section 203, relating to sanctions for false information.

(6) Section 204, relating to protection of confidential information.

(7) Section 205, relating to records and reporting.

(8) Section 206, relating to compliance with State licensing requirements.

(9) Section 309, relating to requirement to follow good farming practices. (b) IMPLEMENTATION

FOR

FISCAL YEAR

2000. The amendments made by the following sections of this Act shall apply beginning with fiscal year 2000:

(1) Section 105(a), relating to repeal of obsolete pilot programs.

(2) Subsections (a), (b), and (c) of section 305, relating to Board consideration of submitted policies and materials.

(3) Section 306, relating to contracting for rating plans of insurance.

(4) Section 307, relating to electronic availability of crop insurance information.

(c) IMPLEMENTATION FOR 2001 CROP YEAR.The amendments made by the following sections of this Act shall apply beginning with the 2001 crop year:

(1) Section 101, relating to premium schedule for additional coverage.

(2) Section 102, relating to premium schedule for other plans of insurance.

(3) Section 103(b), relating to adjustment in production history to reflect pest control. (4) Section 109, relating to authority for nonprofit associations to pay fees on behalf of producers.

(5) Section 110, relating to elections regarding prevented planting coverage.

(6) Section 111, relating to limitations under noninsured crop disaster assistance program.

(7) Section 201, relating to limitation on double insurance.

(d) IMPLEMENTATION FOR FISCAL YEAR 2001. The amendments made by the following sections of this Act shall apply beginning with fiscal year 2001:

(1) Section 105(b), relating to general requirements applicable to pilot programs. (2) Section 304, relating to funding for reimbursement and research and development. SEC. 403. SAVINGS CLAUSE.

The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) and section 196 of the Federal Agriculture Improvement and Reform Act of

1996 (7 U.S.C. 7333), as in effect on day before the date of the enactment of this Act, shall continue to apply with respect to the 1999 crop year and shall apply with respect to the 2000 crop year, to the extent the application of an amendment made by this Act is delayed under section 402 or by the terms of the amendment.

SEC. 404. SENSE OF THE CONGRESS.

It is the Sense of the Congress that the Department of Agriculture should ensure the full participation of minority and limited-resource farmers and ranchers in the programs operating under the Federal Crop Insurance Act, as amended by the Agriculture Risk Protection Act of 1999.

The bill, as amended, was ordered to be engrossed and read a third time, was read a third time by title, and passed.

A motion to reconsider the vote whereby said bill was passed was, by unanimous consent, laid on the table.

Ordered, That the Clerk request the concurrence of the Senate in said bill. 1104.10 CLERK TO CORRECT

ENGROSSMENT

On motion of Mr. COMBEST, by unanimous consent,

Ordered, That in the engrossment of the foregoing bill the Clerk be authorized to correct section numbers, punctuation, citations, and cross references and to make such technical and conforming changes as may be necessary to reflect the actions of the House in amending the bill.

¶104.11 RECESS 3:42 P.M.

The SPEAKER pro tempore, Mr. COOKSEY, pursuant to clause 12 of rule I, declared the House in recess at 3 o'clock and 42 minutes p.m., subject to the call of the Chair.

104.12 AFTER RECESS 4:43 P.M.

The SPEAKER pro tempore, Mr. SESSIONS, called the House to order. 1104.13 PROVIDING FOR THE

CONSIDERATION OF H.R. 2910

Mrs. MYRICK, by direction of the Committee on Rules, reported (Rept. No. 106-347) the resolution (H. Res. 312) providing for consideration of the bill (H.R. 2910) to amend title 49, United States Code, to authorize appropriations for the National Transportation Safety Board for fiscal years 2000, 2001, and 2002, and for other purposes.

When said resolution and report were referred to the House Calendar and ordered printed.

104.14 PROVIDING FOR THE

CONSIDERATION OF H.R. 2436

Mrs. MYRICK, by direction of the Committee on Rules, reported (Rept. No. 106-348) the resolution (H. Res. 313) providing for consideration of the bill (H.R. 2436) to amend title 18, United States Code, and the Uniform Code of Military Justice to protect unborn children from assault and murder, and for other purposes.

When said resolution and report were referred to the House Calendar and ordered printed.