[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3417 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3417

 To provide for a voluntary national insurance program to protect the 
 owners of domesticated cervidae against losses incurred as result of 
destroying animals or herds infected with, or exposed to, tuberculosis.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 28, 1993

  Mr. Allard introduced the following bill; which was referred to the 
                        Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
 To provide for a voluntary national insurance program to protect the 
 owners of domesticated cervidae against losses incurred as result of 
destroying animals or herds infected with, or exposed to, tuberculosis.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Emergency Cervidae 
Tuberculosis Protection Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Purpose and finding.
Sec. 3. Definitions.
Sec. 4. Administration of act.
Sec. 5. Emergency cervidae tuberculosis protection.-
Sec. 6. Insurance premiums.
Sec. 7. Deposit and investment of premiums received.
Sec. 8. Enforcement.
Sec. 9. Regulations.
Sec. 10. Authority to borrow funds from the Commodity Credit 
                            Corporation.
Sec. 11. Emergency limitations on the movement of cervidae in 
                            interstate commerce.
Sec. 12. Separability of provisions.
Sec. 13. Termination.

SEC. 2. PURPOSE AND FINDING.

    It is the purpose of this Act to provide for a voluntary national 
cervidae tuberculosis insurance program. Congress hereby finds that the 
commercial raising of cervidae in the United States either involves 
interstate commerce or affects interstate commerce.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Cervidae.--The term ``cervidae'' means any member of 
        the family of animals possessing antlers that are shed 
        annually, such as an elk, a deer, and a reindeer, except that 
        such term shall include the antlerless water deer.
            (2) Commerce.--The term ``commerce'' means transport--
                    (A) between any State, Territory, or possession, or 
                the District of Columbia, and any place outside 
                thereof;
                    (B) between points within the same State, 
                Territory, or possession, or the District of Columbia, 
                but through any place outside thereof; or
                    (C) within any Territory, possession, or the 
                District of Columbia.
            (3) Destruction.--The term ``destruction'' means the 
        slaughter of cervidae by a method approved by the Secretary.
            (4) Exposed.--The term ``exposed'', with respect to 
        tuberculosis, means any cervidae that is found, in such manner 
        as the Secretary may prescribe--
                    (A) to be part of a herd containing one or more 
                infected cervidae;
                    (B) to have moved from such a herd before the 
                infection in the herd is disclosed, but after the herd 
                became infected; or
                    (C) to have been exposed to tuberculosis by virtue 
                of being nursed by a tuberculosis infected dam.
            (5) Herd.--The term ``herd'' means--
                    (A) any group of cervidae maintained in a common 
                area for any purpose; or
                    (B) two or more groups of cervidae under common 
                ownership that are geographically separated but that 
                have an interchange or movement of cervidae.
            (6) Infected.--The term ``infected'', with respect to 
        tuberculosis, means any cervidae in which tuberculosis has been 
        determined to exist pursuant to regulations established by the 
        Secretary.
            (7) Insurance program.--The term ``insurance program'' 
        means the program of insurance established by the Secretary 
        under section 5.
            (8) Owner.--The term ``owner'' means any person who has a 
        legal or rightful title to cervidae and is engaged in the 
        business of buying, raising, or selling cervidae in interstate 
        commerce in the United States.
            (9) Person.--The term ``person'' includes individuals, 
        partnerships, corporations, and other legal entities.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (11) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, Guam, the Virgin Islands of the United States, American 
        Samoa, and any other territory or possession of the United 
        States.
            (12) Tuberculosis.--The term ``tuberculosis'' means the 
        contagious, infectious, and communicable disease caused by 
        Mycobacterium bovis.

SEC. 4. ADMINISTRATION OF ACT.

    (a) Delegation.--The Secretary of Agriculture shall administer this 
Act through the Animal and Plant Health Inspection Service of the 
Department of Agriculture.
    (b) Advisory Board.--
            (1) Purpose of board.--The Secretary shall consult with the 
        advisory board appointed pursuant to paragraph (2) whenever the 
        Secretary is establishing policy for the insurance program or 
        otherwise administering the insurance program.
            (2) Composition of board.--The advisory board shall consist 
        of five members selected by the Secretary. Three members 
        (including at least one elk producer and one deer producer) 
        shall be selected by the Secretary from a list of nine 
        candidates presented to the Secretary by domestic cervidae 
        producers who participate in the insurance program. These 
        candidates must also be cervidae producers who participate in 
        the insurance program. One member shall be selected by the 
        Secretary from among employees of the Department of 
        Agriculture. One member shall be selected by the Secretary in 
        such manner as the Secretary may determine.
            (3) Terms.--The members of the advisory board shall serve 
        two-year terms; except that the Secretary may appoint two of 
        the members initially appointed to the advisory board to serve 
        a one-year term.
            (4) Chairperson.--
                    (A) In general.--At the last meeting of the 
                advisory board for each year, the members of the 
                advisory board shall select one member to serve as the 
                chairperson of the advisory board for the next year. 
                The chairperson shall serve a one year term and shall 
                be responsible for the establishment of procedures for 
                the operation of the advisory board.
                    (B) Special rule.--For the year in which the 
                advisory board is first established, the members of the 
                advisory board shall select a chairperson at the first 
                meeting of the advisory board. The chairperson selected 
                pursuant to this subparagraph shall serve as 
                chairperson for the remainder of that year.
            (5) Termination.--The advisory board shall terminate at the 
        end of the 10-year period specified in section 13.

SEC. 5. EMERGENCY CERVIDAE TUBERCULOSIS PROTECTION.-

    (a) Insurance Program Authorized.--If the Secretary determines that 
sufficient actuarial data are available and that establishment of an 
insurance program is warranted, the Secretary may establish a voluntary 
national insurance program to compensate participating owners for the 
destruction of any cervidae found to be infected with or exposed to 
tuberculosis, as provided in this Act.
    (b) Participation Required for Indemnity Payments.--Indemnity 
payments shall not be provided under this Act to any owner who does not 
participate in the insurance program. In order to participate, the 
owner must agree to insure the entire herd of the owner. A herd shall 
not be eligible for coverage under the insurance program if the herd is 
under active investigation regarding infection with or exposure to 
tuberculosis, including traceback or quarantine for tuberculosis.
    (c) Effective Date of Coverage.--Coverage under the insurance 
program shall become effective upon the payment by the owner of--
            (1) the premium established by the Secretary for 
        participation in section 6; or
            (2) such portion of the premium as the Secretary may 
        require to initiate coverage.
    (d) Compensation for Destruction of Insured Cervidae.--
            (1) In general.--Except as provided in paragraph (2), 
        indemnity payments for the destruction of insured cervidae 
        shall be paid at rates established by the Secretary for the 
        insurance program, but not greater than 80 percent of the 
        declared market value of healthy cervidae at the time of the 
        destruction of the cervidae. The amount of compensation shall 
        be reduced by the salvage value and any other moneys received 
        by an owner for the destroyed cervidae.
            (2) Limitation.--The amount of compensation provided for 
        the destruction of insured cervidae may not exceed the actual 
        fair market value of healthy cervidae, as determined by the 
        Secretary, at the time of the destruction of the cervidae. 
        Coverage shall not be retroactive.

SEC. 6. INSURANCE PREMIUMS.

    (a) Rates.--Subject to subsection (b), the Secretary shall 
establish premiums for insurance coverage under this Act at such rates 
as the Secretary determines to be actuarially sufficient to cover 
claims under the insurance program and to establish a reasonable 
reserve against unforeseen losses in order to guarantee that the 
insurance program will be self-funding before the end of--
            (1) the 10-year period beginning on the date of the 
        enactment of this Act; or
            (2) such earlier termination date as the Secretary may 
        establish for the insurance program.
    (b) Maximum Premium.--The Secretary may not establish a premium 
under this Act for an owner in excess of two percent annually of the 
declared market value of the insured herd, as declared by the owner.
    (c) Time for Payment.--Premiums shall be paid at such time or times 
as the Secretary shall require.
    (d) Denial or Reduction of Claims.--
            (1) Limitation.--If the Secretary denies or reduces an 
        insurance claim under the insurance program, the Secretary 
        shall mail a notice of the denial or reduction to the claimant.
            (2) Appeal.--Not later than six months after the date the 
        notice is mailed, the claimant may bring an administrative 
        appeal before the Secretary to review the denial or reduction 
        of the claim.
            (3) Hearing.--If a claimant files an appeal, the Secretary 
        shall conduct a hearing on the record on the denial or 
        reduction of the claim.
            (4) Final order.--The denial or reduction of the claim 
        shall be treated as a final order that is reviewable under 
        chapter 158 of title 28, United States Code.

SEC. 7. DEPOSIT AND INVESTMENT OF PREMIUMS RECEIVED.

    (a) In General.--Premiums received under the insurance program that 
are not immediately required to be expended may be--
            (1) deposited in the Treasury of the United States or in 
        any bank approved by the Secretary of the Treasury, subject to 
        withdrawal by the Secretary of Agriculture at any time; or
            (2) with approval of the Secretary of the Treasury, 
        invested in obligations of the United States or in obligations 
        guaranteed as to principal and interest by the United States.
    (b) Federal Reserve Banks.--Subject to the approval of the 
Secretary of the Treasury, the Federal Reserve Banks shall act as 
depositories, custodians, and fiscal agents of the Secretary of 
Agriculture in the performance of the powers of the Secretary of 
Agriculture under this Act.
    (c) Repayment of Borrowed Funds.--At the end of the 10-year period 
specified in section 13, the Secretary shall repay, out of funds 
remaining for the insurance program, the Commodity Credit Corporation 
for all funds borrowed under section 10.
    (d) Rebate of Unused Funds.--Any funds remaining after making the 
repayment required under subsection (c) shall be rebated to policy 
holders on a pro rated basis according to the premium paid.

SEC. 8. ENFORCEMENT.

    In order to ensure the efficient execution of this Act, the 
provisions (including penalties) of sections 6, 8, 9, and 10 of the 
Federal Trade Commission Act (15 U.S.C. 46, 48, 49, and 50, 
respectively), shall apply to the jurisdiction, powers, and duties of 
the Secretary in enforcing this Act and to any person subject to Act, 
whether or not a corporation.

SEC. 9. REGULATIONS.

    The Secretary is authorized to issue such regulations as may be 
necessary to carry out the provisions of this Act.

SEC. 10. AUTHORITY TO BORROW FUNDS FROM THE COMMODITY CREDIT 
              CORPORATION.

    During the 10-year period specified in section 13, the Secretary 
may borrow, under such terms as determined by the Secretary, funds 
available to the Commodity Credit Corporation in an amount not to 
exceed $7,000,000 to carry out the insurance program.

SEC. 11. EMERGENCY LIMITATIONS ON THE MOVEMENT OF CERVIDAE IN 
              INTERSTATE COMMERCE.

    Because of the risk of spreading tuberculosis among cervidae and 
other uninfected livestock, the movement or sale of cervidae in 
interstate commerce shall be contingent upon proof of insurance 
obtained under this Act or a waiver signed by the owner releasing the 
Federal Government from liability for indemnity for the destruction of 
cervidae exposed to or infected with tuberculosis.

SEC. 12. SEPARABILITY OF PROVISIONS.

    The sections of this Act and subdivisions of sections are declared 
to be separable, and in the event any one or more of the sections or 
parts of the same of this Act be held to be unconstitutional, the same 
shall not affect the validity of other sections or parts of sections of 
this Act.

SEC. 13. TERMINATION.

    The insurance program authorized by this section shall terminate at 
the end of the 10-year period beginning on the date the Secretary first 
offers insurance under the program. Any insurance policy provided under 
the program that is still in effect upon the termination of the program 
shall remain in effect for the remainder of the term of the policy, 
except that no policy may be renewed after the termination date of the 
program.

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