I

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Emergency Cervidae Tuberculosis Protection Act’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Purpose and finding.

Sec. 3. Definitions.
2

•HR 3417 IH

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.

1 SEC. 2. PURPOSE AND FINDING.

2 It is the purpose of this Act to provide for a voluntary

3 national cervidae tuberculosis insurance program. Con4 gress hereby finds that the commercial raising of cervidae

5 in the United States either involves interstate commerce

6 or affects interstate commerce.

7 SEC. 3. DEFINITIONS.

8 For purposes of this Act:

9 (1) CERVIDAE.—The term ‘‘cervidae’’ means

10 any member of the family of animals possessing ant11 lers that are shed annually, such as an elk, a deer,

12 and a reindeer, except that such term shall include

13 the antlerless water deer.

14 (2) COMMERCE.—The term ‘‘commerce’’ means

15 transport—

16 (A) between any State, Territory, or pos17 session, or the District of Columbia, and any

18 place outside thereof;

19 (B) between points within the same State,

20 Territory, or possession, or the District of Co-
3

•HR 3417 IH

1 lumbia, but through any place outside thereof;

2 or

3 (C) within any Territory, possession, or the

4 District of Columbia.

5 (3) DESTRUCTION.—The term ‘‘destruction’’

6 means the slaughter of cervidae by a method ap7 proved by the Secretary.

8 (4) EXPOSED.—The term ‘‘exposed’’, with re9 spect to tuberculosis, means any cervidae that is

10 found, in such manner as the Secretary may pre11 scribe—

12 (A) to be part of a herd containing one or

13 more infected cervidae;

14 (B) to have moved from such a herd before

15 the infection in the herd is disclosed, but after

16 the herd became infected; or

17 (C) to have been exposed to tuberculosis by

18 virtue of being nursed by a tuberculosis infected

19 dam.

20 (5) HERD.—The term ‘‘herd’’ means—

21 (A) any group of cervidae maintained in a

22 common area for any purpose; or

23 (B) two or more groups of cervidae under

24 common ownership that are geographically sep-
4

•HR 3417 IH

1 arated but that have an interchange or move2 ment of cervidae.

3 (6) INFECTED.—The term ‘‘infected’’, with re4 spect to tuberculosis, means any cervidae in which

5 tuberculosis has been determined to exist pursuant

6 to regulations established by the Secretary.

7 (7) INSURANCE PROGRAM.—The term ‘‘insur8 ance program’’ means the program of insurance es9 tablished by the Secretary under section 5.

10 (8) OWNER.—The term ‘‘owner’’ means any

11 person who has a legal or rightful title to cervidae

12 and is engaged in the business of buying, raising, or

13 selling cervidae in interstate commerce in the United

14 States.

15 (9) PERSON.—The term ‘‘person’’ includes indi16 viduals, partnerships, corporations, and other legal

17 entities.

18 (10) SECRETARY.—The term ‘‘Secretary’’

19 means the Secretary of Agriculture.

20 (11) STATE.—The term ‘‘State’’ means each of

21 the several States, the District of Columbia, the

22 Commonwealth of Puerto Rico, Guam, the Virgin Is23 lands of the United States, American Samoa, and

24 any other territory or possession of the United

25 States.
5

•HR 3417 IH

1 (12) TUBERCULOSIS.—The term ‘‘tuberculosis’’

2 means the contagious, infectious, and communicable

3 disease caused by Mycobacterium bovis.

4 SEC. 4. ADMINISTRATION OF ACT.

5 (a) DELEGATION.—The Secretary of Agriculture

6 shall administer this Act through the Animal and Plant

7 Health Inspection Service of the Department of Agri8 culture.

9 (b) ADVISORY BOARD.—

10 (1) PURPOSE OF BOARD.—The Secretary shall

11 consult with the advisory board appointed pursuant

12 to paragraph (2) whenever the Secretary is estab13 lishing policy for the insurance program or otherwise

14 administering the insurance program.

15 (2) COMPOSITION OF BOARD.—The advisory

16 board shall consist of five members selected by the

17 Secretary. Three members (including at least one elk

18 producer and one deer producer) shall be selected by

19 the Secretary from a list of nine candidates pre20 sented to the Secretary by domestic cervidae produc21 ers who participate in the insurance program. These

22 candidates must also be cervidae producers who par23 ticipate in the insurance program. One member shall

24 be selected by the Secretary from among employees

25 of the Department of Agriculture. One member shall
6

•HR 3417 IH

1 be selected by the Secretary in such manner as the

2 Secretary may determine.

3 (3) TERMS.—The members of the advisory

4 board shall serve two-year terms; except that the

5 Secretary may appoint two of the members initially

6 appointed to the advisory board to serve a one-year

7 term.

8 (4) CHAIRPERSON.—

9 (A) IN GENERAL.—At the last meeting of

10 the advisory board for each year, the members

11 of the advisory board shall select one member

12 to serve as the chairperson of the advisory

13 board for the next year. The chairperson shall

14 serve a one year term and shall be responsible

15 for the establishment of procedures for the op16 eration of the advisory board.

17 (B) SPECIAL RULE.—For the year in

18 which the advisory board is first established,

19 the members of the advisory board shall select

20 a chairperson at the first meeting of the advi21 sory board. The chairperson selected pursuant

22 to this subparagraph shall serve as chairperson

23 for the remainder of that year.
7

•HR 3417 IH

1 (5) TERMINATION.—The advisory board shall

2 terminate at the end of the 10-year period specified

3 in section 13.

4 SEC. 5. EMERGENCY CERVIDAE TUBERCULOSIS PROTEC5 TION.–

6 (a) INSURANCE PROGRAM AUTHORIZED.—If the Sec7 retary determines that sufficient actuarial data are avail8 able and that establishment of an insurance program is

9 warranted, the Secretary may establish a voluntary na10 tional insurance program to compensate participating

11 owners for the destruction of any cervidae found to be in12 fected with or exposed to tuberculosis, as provided in this

13 Act.

14 (b) PARTICIPATION REQUIRED FOR INDEMNITY PAY15 MENTS.—Indemnity payments shall not be provided under

16 this Act to any owner who does not participate in the in17 surance program. In order to participate, the owner must

18 agree to insure the entire herd of the owner. A herd shall

19 not be eligible for coverage under the insurance program

20 if the herd is under active investigation regarding infection

21 with or exposure to tuberculosis, including traceback or

22 quarantine for tuberculosis.

23 (c) EFFECTIVE DATE OF COVERAGE.—Coverage

24 under the insurance program shall become effective upon

25 the payment by the owner of—
8

•HR 3417 IH

1 (1) the premium established by the Secretary

2 for participation in section 6; or

3 (2) such portion of the premium as the Sec4 retary may require to initiate coverage.

5 (d) COMPENSATION FOR DESTRUCTION OF INSURED

6 CERVIDAE.—

7 (1) IN GENERAL.—Except as provided in para8 graph (2), indemnity payments for the destruction of

9 insured cervidae shall be paid at rates established by

10 the Secretary for the insurance program, but not

11 greater than 80 percent of the declared market value

12 of healthy cervidae at the time of the destruction of

13 the cervidae. The amount of compensation shall be

14 reduced by the salvage value and any other moneys

15 received by an owner for the destroyed cervidae.

16 (2) LIMITATION.—The amount of compensation

17 provided for the destruction of insured cervidae may

18 not exceed the actual fair market value of healthy

19 cervidae, as determined by the Secretary, at the time

20 of the destruction of the cervidae. Coverage shall not

21 be retroactive.

22 SEC. 6. INSURANCE PREMIUMS.

23 (a) RATES.—Subject to subsection (b), the Secretary

24 shall establish premiums for insurance coverage under this

25 Act at such rates as the Secretary determines to be actu-
9

•HR 3417 IH

1 arially sufficient to cover claims under the insurance pro2 gram and to establish a reasonable reserve against unfore3 seen losses in order to guarantee that the insurance pro4 gram will be self-funding before the end of—

5 (1) the 10-year period beginning on the date of

6 the enactment of this Act; or

7 (2) such earlier termination date as the Sec8 retary may establish for the insurance program.

9 (b) MAXIMUM PREMIUM.—The Secretary may not es10 tablish a premium under this Act for an owner in excess

11 of two percent annually of the declared market value of

12 the insured herd, as declared by the owner.

13 (c) TIME FOR PAYMENT.—Premiums shall be paid at

14 such time or times as the Secretary shall require.

15 (d) DENIAL OR REDUCTION OF CLAIMS.—

16 (1) LIMITATION.—If the Secretary denies or re17 duces an insurance claim under the insurance pro18 gram, the Secretary shall mail a notice of the denial

19 or reduction to the claimant.

20 (2) APPEAL.—Not later than six months after

21 the date the notice is mailed, the claimant may bring

22 an administrative appeal before the Secretary to re23 view the denial or reduction of the claim.
10

•HR 3417 IH

1 (3) HEARING.—If a claimant files an appeal,

2 the Secretary shall conduct a hearing on the record

3 on the denial or reduction of the claim.

4 (4) FINAL ORDER.—The denial or reduction of

5 the claim shall be treated as a final order that is

6 reviewable under chapter 158 of title 28, United

7 States Code.

8 SEC. 7. DEPOSIT AND INVESTMENT OF PREMIUMS RE9 CEIVED.

10 (a) IN GENERAL.—Premiums received under the in11 surance program that are not immediately required to be

12 expended may be—

13 (1) deposited in the Treasury of the United

14 States or in any bank approved by the Secretary of

15 the Treasury, subject to withdrawal by the Secretary

16 of Agriculture at any time; or

17 (2) with approval of the Secretary of the Treas18 ury, invested in obligations of the United States or

19 in obligations guaranteed as to principal and interest

20 by the United States.

21 (b) FEDERAL RESERVE BANKS.—Subject to the ap22 proval of the Secretary of the Treasury, the Federal Re23 serve Banks shall act as depositories, custodians, and fis24 cal agents of the Secretary of Agriculture in the perform-
11

•HR 3417 IH

1 ance of the powers of the Secretary of Agriculture under

2 this Act.

3 (c) REPAYMENT OF BORROWED FUNDS.—At the end

4 of the 10-year period specified in section 13, the Secretary

5 shall repay, out of funds remaining for the insurance pro6 gram, the Commodity Credit Corporation for all funds

7 borrowed under section 10.

8 (d) REBATE OF UNUSED FUNDS.—Any funds re9 maining after making the repayment required under sub10 section (c) shall be rebated to policy holders on a pro rated

11 basis according to the premium paid.

12 SEC. 8. ENFORCEMENT.

13 In order to ensure the efficient execution of this Act,

14 the provisions (including penalties) of sections 6, 8, 9, and

15 10 of the Federal Trade Commission Act (15 U.S.C. 46,

16 48, 49, and 50, respectively), shall apply to the jurisdic17 tion, powers, and duties of the Secretary in enforcing this

18 Act and to any person subject to Act, whether or not a

19 corporation.

20 SEC. 9. REGULATIONS.

21 The Secretary is authorized to issue such regulations

22 as may be necessary to carry out the provisions of this

23 Act.
12

•HR 3417 IH

1 SEC. 10. AUTHORITY TO BORROW FUNDS FROM THE COM2 MODITY CREDIT CORPORATION.

3 During the 10-year period specified in section 13, the

4 Secretary may borrow, under such terms as determined

5 by the Secretary, funds available to the Commodity Credit

6 Corporation in an amount not to exceed $7,000,000 to

7 carry out the insurance program.

8 SEC. 11. EMERGENCY LIMITATIONS ON THE MOVEMENT OF

9 CERVIDAE IN INTERSTATE COMMERCE.

10 Because of the risk of spreading tuberculosis among

11 cervidae and other uninfected livestock, the movement or

12 sale of cervidae in interstate commerce shall be contingent

13 upon proof of insurance obtained under this Act or a waiv14 er signed by the owner releasing the Federal Government

15 from liability for indemnity for the destruction of cervidae

16 exposed to or infected with tuberculosis.

17 SEC. 12. SEPARABILITY OF PROVISIONS.

18 The sections of this Act and subdivisions of sections

19 are declared to be separable, and in the event any one

20 or more of the sections or parts of the same of this Act

21 be held to be unconstitutional, the same shall not affect

22 the validity of other sections or parts of sections of this

23 Act.

24 SEC. 13. TERMINATION.

25 The insurance program authorized by this section

26 shall terminate at the end of the 10-year period beginning
13

•HR 3417 IH

1 on the date the Secretary first offers insurance under the

2 program. Any insurance policy provided under the pro3 gram that is still in effect upon the termination of the

4 program shall remain in effect for the remainder of the

5 term of the policy, except that no policy may be renewed

6 after the termination date of the program.

Æ