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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3973 Introduced in House (IH)]

<DOC>

114th CONGRESS
  1st Session
                                H. R. 3973

To reform the Federal Crop Insurance Act and reduce Federal spending on 
                            crop insurance.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            November 5, 2015

 Mr. Kind (for himself and Mr. Sensenbrenner) introduced the following 
        bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL

 
To reform the Federal Crop Insurance Act and reduce Federal spending on 
                            crop insurance.

    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 ``Assisting Family 
Farmers through Insurance Reform Measures Act'' or the ``AFFIRM Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Adjusted gross income and per person limitations on share of 
                            insurance premiums paid by Corporation.
Sec. 3. Cap on overall rate of return for crop insurance providers.
Sec. 4. Cap on reimbursements for administrative and operating expenses 
                            of crop insurance providers.
Sec. 5. Renegotiation of Standard Reinsurance Agreement.
Sec. 6. Prohibition on premium subsidy for harvest price policies.
Sec. 7. Crop insurance premium subsidies disclosure in the public 
                            interest.

SEC. 2. ADJUSTED GROSS INCOME AND PER PERSON LIMITATIONS ON SHARE OF 
              INSURANCE PREMIUMS PAID BY CORPORATION.

    Section 508(e)(1) of the Federal Crop Insurance Act (7 U.S.C. 
1508(e)(1)) is amended--
            (1) by striking ``For the purpose'' and inserting the 
        following:
                    ``(A) Payment authority.--For the purpose''; and
            (2) by adding at the end the following new subparagraphs:
                    ``(B) Adjusted gross income limitation.--The 
                Corporation shall not pay a part of the premium for 
                additional coverage for any person or legal entity that 
                has an average adjusted gross income (as defined in 
                section 1001D of the Food Security Act of 1985 (7 
                U.S.C. 1308-3a)) in excess of $250,000.
                    ``(C) Per person limitation.--The Corporation shall 
                not pay more than $40,000 per reinsurance year to any 
                person or legal entity for premiums under this 
                section.''.

SEC. 3. CAP ON OVERALL RATE OF RETURN FOR CROP INSURANCE PROVIDERS.

    Section 508(k)(3) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(3)) is amended--
            (1) by designating paragraph (3) as subparagraph (A) (and 
        adjusting the margin two ems to the right);
            (2) by inserting before subparagraph (A) (as so designated) 
        the following:
            ``(3) Risk.--''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Cap on overall rate of return.--The target 
                rate of return for all the companies combined for the 
                2015 and subsequent reinsurance years shall be 8.9 
                percent of retained premium.''.

SEC. 4. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE AND OPERATING EXPENSES 
              OF CROP INSURANCE PROVIDERS.

    Section 508(k)(4) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(4)) is amended by adding at the end the following new 
subparagraph:
                    ``(G) Additional cap on reimbursements.--
                Notwithstanding subparagraphs (A) through (F), total 
                reimbursements for administrative and operating costs 
                for the 2015 insurance year for all types of policies 
                and plans of insurance shall not exceed $900,000,000. 
                For each subsequent insurance year, the dollar amount 
                in effect pursuant to the preceding sentence shall be 
                increased by the same inflation factor as established 
                for the administrative and operating costs cap in the 
                2011 Standard Reinsurance Agreement.''.

SEC. 5. RENEGOTIATION OF STANDARD REINSURANCE AGREEMENT.

    Section 508(k)(8) of the Federal Crop Insurance Act (7 U.S.C. 
1508(k)(8)) is amended by striking subparagraph (F).

SEC. 6. PROHIBITION ON PREMIUM SUBSIDY FOR HARVEST PRICE POLICIES.

    Section 508(e) of the Federal Crop Insurance Act (7 U.S.C. 1508(e)) 
is amended by adding at the end the following:
            ``(9) Prohibition on premium subsidy for harvest price 
        policies.--Notwithstanding any other provision of law and 
        beginning with the 2016 reinsurance year, the Corporation may 
        not pay any amount of premium subsidy in the case of a policy 
        or plan of insurance that is based on the actual market price 
        of an agricultural commodity at the time of harvest.''.

SEC. 7. CROP INSURANCE PREMIUM SUBSIDIES DISCLOSURE IN THE PUBLIC 
              INTEREST.

    Section 502(c)(2) of the Federal Crop Insurance Act (7 U.S.C. 
1502(c)(2)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as 
        subparagraphs (C) and (D) respectively; and
            (2) by inserting before subparagraph (C) (as so 
        redesignated) the following:
                    ``(A) Disclosure in the public interest.--
                Notwithstanding paragraph (1) or any other provision of 
                law, except as provided in subparagraph (B), the 
                Secretary shall on an annual basis make available to 
                the public--
                            ``(i)(I) the name of each individual or 
                        entity who obtained a federally subsidized crop 
                        insurance, livestock, or forage policy or plan 
                        of insurance during the previous fiscal year;
                            ``(II) the amount of premium subsidy 
                        received by the individual or entity from the 
                        Corporation; and
                            ``(III) the amount of any Federal portion 
                        of indemnities paid in the event of a loss 
                        during that fiscal year for each policy 
                        associated with that individual or entity; and
                            ``(ii) for each private insurance provider, 
                        by name--
                                    ``(I) the underwriting gains earned 
                                through participation in the federally 
                                subsidized crop insurance program; and
                                    ``(II) the amount paid under this 
                                subtitle for--
                                            ``(aa) administrative and 
                                        operating expenses;
                                            ``(bb) any Federal portion 
                                        of indemnities and reinsurance; 
                                        and
                                            ``(cc) any other purpose.
                    ``(B) Limitation.--The Secretary shall not disclose 
                information pertaining to individuals and entities 
                covered by a catastrophic risk protection plan offered 
                under section 508(b).''.
                                 <all>
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