arially sufficient to cover claims under the insurance pro-
gram and to establish a reasonable reserve against unfore-
seen losses in order to guarantee that the insurance pro-
gram 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 Sec-
retary may establish for the insurance program.
(b) MAXIMUM PREMIUM.—The Secretary may not es-
tablish 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 re-
duces an insurance claim under the insurance pro-
gram, 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 re-
view 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 RE-
CEIVED.
(a) IN GENERAL.—Premiums received under the in-
surance 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 Treas-
ury, 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 ap-
proval of the Secretary of the Treasury, the Federal Re-
serve Banks shall act as depositories, custodians, and fis-
cal agents of the Secretary of Agriculture in the perform-
ance 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 pro-
gram, the Commodity Credit Corporation for all funds
borrowed under section 10.
(d) REBATE OF UNUSED FUNDS.—Any funds re-
maining after making the repayment required under sub-
section (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 jurisdic-
tion, 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 COM-
MODITY 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 waiv-
er 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 pro-
gram 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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