[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2559 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 20, 1999

   Mr. Combest (for himself, Mr. Ewing, Mr. Barrett of Nebraska, Mr. 
    Blunt, Mr. Canady of Florida, Mr. Whitfield, Mr. Bereuter, Mr. 
   Sessions, and Mr. Hayes) introduced the following bill; which was 
                referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
 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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Agricultural Risk 
Protection Act of 1999''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
               TITLE I--STRENGTHENING THE FARM SAFETY NET

Sec. 101. Premium schedule for additional coverage.
Sec. 102. Premium schedule for other plans of insurance.
Sec. 103. Adjustment in actual production history to establish 
                            insurable yields.
Sec. 104. Review and adjustment in rating methodologies.
Sec. 105. Conduct of pilot programs, including livestock.
Sec. 106. Cost of production as a price election.
Sec. 107. Premium discounts for good performance.
Sec. 108. Options for catastrophic risk protection.
Sec. 109. Authority for nonprofit associations to pay fees on behalf of 
                            producers.
Sec. 110. Elections regarding prevented planting coverage.
Sec. 111. Sales closing date.
Sec. 112. Area loss requirements to trigger assistance for noninsured 
                            crop disaster assistance program.
Sec. 113. Limitations under noninsured crop disaster assistance 
                            program.
Sec. 114. Application of amendments.
                 TITLE II--IMPROVING PROGRAM INTEGRITY

Sec. 201. Limitation on double insurance.
Sec. 202. Improving program compliance and integrity.
Sec. 203. Sanctions for false information.
Sec. 204. Protection of confidential information.
                       TITLE III--ADMINISTRATION

Sec. 301. Board of Directors of Corporation.
Sec. 302. Promotion of submission of policies and related materials.
Sec. 303. Research and development, including contracts regarding 
                            underserved commodities.
Sec. 304. Funding for reimbursement and research and development.
Sec. 305. Board consideration of submitted policies and materials.
Sec. 306. Contracting for rating of plans of insurance.

               TITLE I--STRENGTHENING THE FARM SAFETY NET

SEC. 101. PREMIUM SCHEDULE FOR ADDITIONAL COVERAGE.

    (a) Premium Amounts.--Section 508(d)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(d)(2)) is amended by striking 
subparagraphs (B) and (C) and inserting the following new subparagraph:
                    ``(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 an equivalent 
                coverage, 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.''.
    (b) Payment Schedule.--Section 508(e)(2) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(e)(2)) is amended by striking 
subparagraphs (B) and (C) and inserting the following new 
subparagraphs:
                    ``(B) In the case of additional coverage equal to 
                or greater than 50 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 an equivalent coverage, the amount shall be 
                equal to the sum of--
                            ``(i) 65 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 65 percent, but less than 70 percent, 
                of the recorded or appraised average yield indemnified 
                at not greater than 100 percent of the expected market 
                price, or an equivalent coverage, the amount shall be 
                equal to the sum of--
                            ``(i) 60 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 70 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 an equivalent coverage, 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.
                    ``(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 an equivalent coverage, the amount shall be 
                equal to the sum of--
                            ``(i) 52 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 an equivalent coverage, the amount shall be 
                equal to the sum of--
                            ``(i) 40 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 an equivalent coverage, the amount shall be 
                equal to the sum of--
                            ``(i) 35 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) 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 new paragraph:
            ``(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 under this subsection or subsection (h)(2).''.

SEC. 102. PREMIUM SCHEDULE FOR OTHER PLANS OF INSURANCE.

    Section 508(h)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1508(h)(2)) is amended--
            (1) by striking ``A policy'' and inserting the following:
                    ``(A) Preparation.--A policy'';
            (2) by striking the second sentence; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Premium schedule.--In the case of a policy 
                offered under this subsection (except paragraph (10)) 
                or subsection (m)(4), the Corporation shall pay a 
                portion of the premium of the policy that shall be 
                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) the dollar amount of the 
                        administrative and operating expenses that 
                        would be paid by the Corporation under 
                        subsection (e) for a similar level of 
                        coverage.''.

SEC. 103. ADJUSTMENT IN ACTUAL PRODUCTION HISTORY TO ESTABLISH 
              INSURABLE YIELDS.

    Section 508(g) of the Federal Crop Insurance Act (7 U.S.C. 1508(g)) 
is amended by adding at the end the following new paragraph:
            ``(4) Adjustment in actual production history to establish 
        insurable yields.--
                    ``(A) Application.--This paragraph shall apply 
                whenever the Corporation uses the actual production 
                history of the producer to establish insurable yields 
                for an agricultural commodity.
                    ``(B) Exclusion of yields for producers with 10-
                year production history.--If, by the 2000 crop year, 
                the producer has an established actual production 
                history of 10 consecutive crop years for which an 
                agricultural commodity was produced, the Corporation 
                shall--
                            ``(i) exclude for the 2000 crop year, at 
                        the election of the producer, any 2 years of 
                        production history for that commodity selected 
                        by the producer from that 10-year history; and
                            ``(ii) continue the exclusion of the years 
                        of production history selected under clause (i) 
                        for the subsequent applicable crop years.
                    ``(C) Exclusion of yield for producers with 5-year 
                production history.--If, by the 2000 crop year, the 
                producer has an established actual production history 
                of at least 5 consecutive crop years for which an 
                agricultural commodity was produced, but less than 10 
                years, the Corporation shall--
                            ``(i) exclude for the 2000 crop year, at 
                        the election of the producer, any 1 year of 
                        production history for that commodity selected 
                        by the producer from that history; and
                            ``(ii) continue the exclusion of the year 
                        of production history selected under clause (i) 
                        for the subsequent applicable crop years.
                    ``(D) Percentage limitation on reduction.--
                Beginning with the 2000 crop year, the Corporation may 
                not reduce the producer's actual production history for 
                an agricultural commodity by more than 5 percent from 
                one year to the next as a result of a decrease in the 
                production of that agricultural commodity in a crop 
                year.''.

SEC. 104. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES.

    Section 508(a) of the Federal Crop Insurance Act (7 U.S.C. 1508(a)) 
is amended by adding at the end the following:
            ``(7) Review and adjustment of rates.--
                    ``(A) Review required.--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).
                    ``(B) Adjustment.--If, before the 2000 crop year, 
                the Corporation determines that premium rates are 
                excessive for an agricultural commodity relative to the 
                requirements of subsection (d)(2)(B), the Corporation 
                shall make appropriate adjustments in the premium rates 
                for that area for that agricultural commodity in time 
                for the 2000 crop year.''.

SEC. 105. CONDUCT OF PILOT PROGRAMS, INCLUDING LIVESTOCK.

    (a) Repeal of Obsolete Pilot Programs.--Section 508(h) of the 
Federal Crop Insurance Act (7 U.S.C. 1508(h)) is amended by striking 
paragraphs (6) and (8).
    (b) General Requirements.--Section 508(h) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(h)) is amended by inserting after 
paragraph (7) the following new paragraph:
            ``(8) General requirements applicable to pilot programs.--
        In conducting any pilot program of insurance or reinsurance 
        authorized or required by this title, the Corporation--
                    ``(A) may offer the pilot program on a regional, 
                whole State, or national basis after considering the 
                interests of affected producers and the interests of 
                and risks to the Corporation;
                    ``(B) may operate the pilot program, including any 
                modifications thereof, for a period of up to 3 years; 
                and
                    ``(C) may extend the time period for the pilot 
                program for additional periods, as determined 
                appropriate by the Corporation.''.
    (c) Expedited Consideration.--Section 508(h)(4) of the Federal Crop 
Insurance Act (7 U.S.C. 1508(h)(4)) is amended--
            (1) by redesignating subparagraphs (A), (B), (C), and (D) 
        as clauses (i), (ii), (iii), and (iv), respectively;
            (2) by moving the text of the clauses (as so designated) 2 
        ems to the right;
            (3) by striking ``The Corporation'' in the first sentence 
        and inserting the following:
                    ``(A) Guidelines required.--Not later than 180 days 
                after the date of the enactment of the Agricultural 
                Risk Protection Act of 1999, the Corporation''; and
            (4) by adding at the end the following new subparagraph:
                    ``(B) Expedited consideration of proposed pilot 
                programs.--The regulations required by subparagraph (A) 
                shall include streamlined guidelines for the 
                submission, and Board review, of pilot programs that 
                the Board determines are limited in scope and duration 
                and involve a reduced level of liability to the Federal 
                Government, and an increased level of risk to approved 
                insurance providers participating in the pilot program, 
                relative to other policies or materials submitted under 
                this subsection. The streamlined guidelines shall be 
                consistent with the guidelines established under 
                subparagraph (A), except as follows:
                            ``(i) Not later than 60 days after 
                        submission of the proposed pilot program, the 
                        Corporation shall provide an applicant with 
                        notification of its intent to recommend 
                        disapproval of the proposal to the Board.
                            ``(ii) Not later than 90 days after the 
                        proposed pilot program is submitted to the 
                        Board, the Board shall make a determination to 
                        approve or disapprove the pilot program. Any 
                        determination by the Board to disapprove the 
                        pilot program 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 pilot program 
                        submitted shall be deemed approved by the Board 
                        for the initial reinsurance year designated for 
                        the pilot program, except in the case where the 
                        Board and the applicant agree to an 
                        extension.''.
    (d) Livestock Pilot Programs.--
            (1) Programs required.--Section 508(h) of the Federal Crop 
        Insurance Act (7 U.S.C. 1508(h)) is amended by striking 
        paragraph (10) and inserting the following new paragraph:
            ``(10) Livestock pilot programs.--
                    ``(A) Programs required.--The Corporation shall 
                conduct one or more pilot programs to evaluate the 
                effectiveness of risk management tools for livestock 
                producers, including futures and options contracts and 
                policies and plans of insurance that provide livestock 
                producers with reasonable protection from the financial 
                risks of price or income fluctuations inherent in the 
                production and marketing of livestock, provide 
                protection for production losses, and otherwise protect 
                the interests of livestock producers. To the maximum 
                extent practicable, the Corporation shall evaluate the 
                greatest number and variety of such programs to 
                determine which of the offered risk management tools 
                are best suited to protect livestock producers from the 
                financial risks associated with the production and 
                marketing of livestock.
                    ``(B) Implementation; assistance.--The Corporation 
                shall begin conducting livestock pilot programs under 
                this paragraph during fiscal year 2001, and any policy 
                or plan of insurance offered under this paragraph may 
                be prepared without regard to the limitations contained 
                in this title. As part of such a pilot program, the 
                Corporation may provide assistance to producers to 
                purchase futures and options contracts or policies and 
                plans of insurance offered under that pilot program.
                    ``(C) Location.--The Corporation shall conduct the 
                livestock pilot programs under this paragraph in a 
                number of counties that is determined by the 
                Corporation to be adequate to provide a comprehensive 
                evaluation of the feasibility, effectiveness, and 
                demand among producers for the risk management tools 
                evaluated in the pilot programs.
                    ``(D) Eligible producers; livestock.--Any producer 
                of a type of livestock covered by a pilot program under 
                this paragraph who owns or operates a farm or ranch in 
                a county selected as a location for that pilot program 
                shall be eligible to participate in that pilot program. 
                In this paragraph, the term `livestock' means cattle, 
                sheep, swine, goats, and poultry.
                    ``(E) Relation to other laws.--The terms and 
                conditions of any policy or plan of insurance offered 
                under this paragraph that is reinsured by the 
                Corporation is not subject to the jurisdiction of the 
                Commodity Futures Trading Commission or the Securities 
                and Exchange Commission or considered as accounts, 
                agreements (including any transaction which is of the 
                character of, or is commonly known to the trade as, an 
                `option', `privilege', `indemnity', `bid', `offer', 
                `put', `call', `advance guaranty', or `decline 
                guaranty'), or transactions involving contracts of sale 
                of a commodity for future delivery, traded or executed 
                on a contract market for the purposes of the Commodity 
                Exchange Act (7 U.S.C. 1 et seq.). Nothing in this 
                subparagraph is intended to affect the jurisdiction of 
                the Commodity Futures Trading Commission or the 
                applicability of the Commodity Exchange Act to any 
                transaction conducted on a designated contract market 
                (as that term is used in such Act) by an approved 
                insurance provider to offset the provider's risk under 
                a plan or policy of insurance under this paragraph.
                    ``(F) Limitation on expenditures.--The Corporation 
                shall conduct all livestock programs under this title 
                so that, to the maximum extent practicable, all costs 
                associated with conducting the livestock programs 
                (other than research and development costs covered by 
                paragraph (6) or subsection (m)(4)) are not expected to 
                exceed $55,000,000 for any fiscal year.''.
            (2) Conforming amendment to definition of agricultural 
        commodity.--Section 518 of the Federal Crop Insurance Act (7 
        U.S.C. 1518) is amended by striking ``livestock and'' after 
        ``commodity, excluding''.
    (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).''.
            (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).''.

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 PERFORMANCE.

    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.--The Corporation may provide a 
        performance-based 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, except that 
        any such discount shall be consistent with section 
        506(o)(2).''.

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:
            ``(3) Alternative catastrophic coverage.--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 
                        equivalent to the coverage available under 
                        paragraph (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 producers.--
                            ``(i) Payment authorized.--Notwithstanding 
                        any other subparagraph of this paragraph, a 
                        cooperative association of agricultural 
                        producers or a nonprofit trade association may 
                        pay, 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. At the election 
                        of the member, the amount that would be paid on 
                        behalf of the member for catastrophic risk 
                        protection may be used by the member to 
                        purchase additional coverage under this title.
                            ``(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 under any reinsurance agreement between the Corporation and the 
insurance provider if the members are informed in advance of the fee or 
payment. The amount of any such licensing fee or other payment in 
excess of the amount paid by the cooperative association or trade 
association under clause (i) shall be distributed to the producers 
whose participation in the Federal crop insurance program prompted the 
licensing fee or other payment to be made.
                            ``(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 
                        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). 
                        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) Discount.--In the case of an 
                        election under clause (i), the Corporation 
                        shall provide a discount 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 value of prevented planting coverage.
                    ``(C) Substitute commodity.--
                            ``(i) Authority to plant.--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).
                            ``(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 covered by the 
                        prevented planting coverage equal to 60 percent 
                        of the producer's actual production history for 
                        the original commodity for purposes of 
                        determining the producer's actual production 
                        history for the original commodity for 
                        subsequent crop years.''.

SEC. 111. SALES CLOSING DATE.

    Section 508(f)(2) of the Federal Crop Insurance Act (7 U.S.C. 1508 
(f)(2)) is amended by striking the last sentence.

SEC. 112. AREA LOSS REQUIREMENTS TO TRIGGER ASSISTANCE FOR NONINSURED 
              CROP DISASTER ASSISTANCE PROGRAM.

    Section 196(c)(1) of the Federal Agriculture Improvement and Reform 
Act of 1996 (7 U.S.C. 7333(c)(1)) is amended by striking paragraph (1) 
and inserting the following new paragraph:
            (1) by striking ``A producer'' and inserting the following:
                    ``(A) Reduced area yield.--Except as provided in 
                subparagraph (B), a producer''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Disaster declaration.--A producer of an 
                eligible crop may also receive noninsured crop disaster 
                assistance if the producer's affected crop acreage is 
                located in an area where eligible crops were 
                substantially affected by a natural disaster resulting 
                in a Presidential declaration of major disaster issued 
                under section 401 of the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 5170) or 
                a designation as a disaster area by the Secretary under 
                subpart A of part 1945 of title 7, Code of Federal 
                Regulations.''.

SEC. 113. 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'' each place it 
                appears 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. 114. APPLICATION OF AMENDMENTS.

    Except where the context specifically provides otherwise, the 
amendments made by this title shall apply beginning with the 2000 crop 
year.

                TITLE II--IMPROVING PROGRAM EFFICIENCIES

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 (8), as added by section 110, 
the following new paragraph:
            ``(9) 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 
                ongoing monitoring by the Farm Service Agency 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 reinsured companies under 
the standard reinsurance agreement.
                    ``(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 occurred.
            ``(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) Clarification of Persons Covered.--Section 506(n)(1) of the 
Federal Crop Insurance Act (7 U.S.C. 1506(n)) is amended by striking 
``If a person'' and inserting ``If a producer, an agent, a loss 
adjuster, an approved insurance provider, or any other person''.
    (b) 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) in paragraph (1), by striking ``on the record--'' and 
        all that follows through the end of the paragraph and inserting 
        ``on the record, impose one or more of the sanctions specified 
        in paragraph (2).'';
            (3) 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
            (4) by inserting after paragraph (1) the following new 
        paragraph:
            ``(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 by the person 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.''.
    (c) 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 the 
        sanctions prescribed under paragraph (2) for willfully and 
        intentionally providing false or inaccurate information to the 
        Corporation or to any insurer.''.

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).''.

                       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 farmers who are policy holders 
                and who are from different geographic areas of the 
                United States.
            ``(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.--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 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. A 
                contract entered into under this subparagraph may not 
                take effect before October 1, 2000.
                    ``(C) Use of resulting policies and plans.--The 
                Corporation may offer any policy or plan of insurance 
                developed under subparagraph (B) that is approved by 
                the Board.''.
    (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 paragraph (1), 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, plan of insurance, or 
                other material developed by the Corporation under 
                paragraph (1) before that date shall, at the discretion 
                of the Corporation, continue to be offered for sale to 
                producers consistent with paragraph (4), except that 
                such policies, plans of insurance, or other material 
                shall be considered to have satisfied the private 
                contracting requirements of such paragraph.''.

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) Underserved commodities.--Of the 
                        total amount made available to provide payments 
                        under this paragraph and subsection (m)(4)(B) 
                        for a fiscal year, $10,000,000 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 if the 
                        Corporation determines that the entire amount 
                        is not needed for such contracts or, if the 
                        reserved amount is insufficient for a fiscal 
                        year, 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 inserting 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 reinsurance'' 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--
            (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 and 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 ``(2) 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)''.
                                 <all>