H. R. 2559—10
‘‘(ii) replace each excluded yield with a yield equal
to 60 percent of the applicable transitional yield.
‘‘(C) PREMIUM ADJUSTMENT.—In the case of a producer
that makes an election under subparagraph (B), the Cor-
poration shall adjust the premium to reflect the risk associ-
ated with the adjustment made in the actual production
history of the producer.
‘‘(5) ADJUSTMENT
TO
REFLECT
INCREASED
YIELDS
FROM
SUCCESSFUL PEST CONTROL EFFORTS.—
‘‘(A) SITUATIONS
JUSTIFYING
ADJUSTMENT.—The Cor-
poration shall develop a methodology for adjusting the
actual production history of a producer when each of the
following apply:
‘‘(i) The producer’s farm is located in an area where
systematic, area-wide efforts have been undertaken
using certain operations or measures, or the producer’s
farm is a location at which certain operations or meas-
ures have been undertaken, to detect, eradicate, sup-
press, or control, or at least to prevent or retard the
spread of, a plant disease or plant pest, including a
plant pest (as defined in section 102 of the Department
of Agriculture Organic Act of 1944 (7 U.S.C. 147a)).
‘‘(ii) The presence of the plant disease or plant
pest has been found to adversely affect the yield of
the agricultural commodity for which the producer is
applying for insurance.
‘‘(iii) The efforts described in clause (i) have been
effective.
‘‘(B) ADJUSTMENT AMOUNT.—The amount by which the
Corporation adjusts the actual production history of a pro-
ducer of an agricultural commodity shall reflect the degree
to which the success of the systematic, area-wide efforts
described in subparagraph (A), on average, increases the
yield of the commodity on the producer’s farm, as deter-
mined by the Corporation.’’.
SEC. 106. REVIEW AND ADJUSTMENT IN RATING METHODOLOGIES.
Section 508(i) of the Federal Crop Insurance Act (7 U.S.C.
1508(i)) is amended—
(1) by striking ‘‘The Corporation’’ and inserting the fol-
lowing:
‘‘(1) IN GENERAL.—The Corporation’’; and
(2) by adding at the end the following:
‘‘(2) REVIEW
OF
RATING
METHODOLOGIES.—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).
‘‘(3) ANALYSIS OF RATING AND LOSS HISTORY.—The Corpora-
tion shall analyze the rating and loss history of approved poli-
cies and plans of insurance for agricultural commodities by
area.
‘‘(4) PREMIUM ADJUSTMENT.—If the Corporation makes a
determination that premium rates are excessive for an agricul-
tural commodity in an area relative to the requirements of
subsection (d)(2) for that area, then, for the 2002 crop year
(and as necessary thereafter), the Corporation shall make
H. R. 2559—11
appropriate adjustments in the premium rates for that area
for that agricultural commodity.’’.
SEC. 107. QUALITY ADJUSTMENT.
Section 508 of the Federal Crop Insurance Act (7 U.S.C. 1508)
is amended by striking subsection (m) and inserting the following:
‘‘(m) QUALITY LOSS ADJUSTMENT COVERAGE.—
‘‘(1) EFFECT OF COVERAGE.—If a policy or plan of insurance
offered under this title includes quality loss adjustment cov-
erage, the coverage shall provide for a reduction in the quantity
of production of the agricultural commodity considered produced
during a crop year, or a similar adjustment, as a result of
the agricultural commodity not meeting the quality standards
established in the policy or plan of insurance.
‘‘(2) ADDITIONAL QUALITY LOSS ADJUSTMENT.—
‘‘(A) PRODUCER
OPTION.—Notwithstanding any other
provision of law, in addition to the quality loss adjustment
coverage available under paragraph (1), the Corporation
shall offer producers the option of purchasing quality loss
adjustment coverage on a basis that is smaller than a
unit with respect to an agricultural commodity that satis-
fies each of the following:
‘‘(i) The agricultural commodity is sold on an
identity-preserved basis.
‘‘(ii) All quality determinations are made solely
by the Federal agency designated to grade or classify
the agricultural commodity.
‘‘(iii) All quality determinations are made in
accordance with standards published by the Federal
agency in the Federal Register.
‘‘(iv) The discount schedules that reflect the reduc-
tion in quality of the agricultural commodity are estab-
lished by the Secretary.
‘‘(B) BASIS FOR ADJUSTMENT.—Under this paragraph,
the Corporation shall set the quality standards below which
quality losses will be paid based on the variability of the
grade of the agricultural commodity from the base quality
for the agricultural commodity.
‘‘(3) REVIEW OF CRITERIA AND PROCEDURES.—The Corpora-
tion shall contract with a qualified person to review the quality
loss adjustment procedures of the Corporation so that the proce-
dures more accurately reflect local quality discounts that are
applied to agricultural commodities insured under this title.
Based on the review, the Corporation shall make adjustments
in the procedures, taking into consideration the actuarial sound-
ness of the adjustment and the prevention of fraud, waste,
and abuse.’’.
SEC. 108. DOUBLE INSURANCE AND PREVENTED PLANTING.
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is
amended by inserting after section 508 (7 U.S.C. 1508) the following:
‘‘SEC. 508A. DOUBLE INSURANCE AND PREVENTED PLANTING.
‘‘(a) DEFINITIONS.—In this section:
‘‘(1) FIRST
CROP.—The term ‘first crop’ means the first
crop of the first agricultural commodity planted for harvest,
or prevented from being planted, on specific acreage during
a crop year and insured under this title.
H. R. 2559—12
‘‘(2) SECOND CROP.—The term ‘second crop’ means a second
crop of the same agricultural commodity as the first crop,
or a crop of a different agricultural commodity following the
first crop, planted on the same acreage as the first crop for
harvest in the same crop year, except the term does not include
a replanted crop.
‘‘(3) REPLANTED CROP.—The term ‘replanted crop’ means
any agricultural commodity replanted on the same acreage
as the first crop for harvest in the same crop year if the
replanting is required by the terms of the policy of insurance
covering the first crop.
‘‘(b) DOUBLE INSURANCE.—
‘‘(1) OPTIONS ON LOSS TO FIRST CROP.—Except as provided
in subsections (d) and (e), if a first crop insured under this
title in a crop year has a total or partial insurable loss, the
producer of the first crop may elect one of the following options:
‘‘(A) NO SECOND CROP PLANTED.—The producer may—
‘‘(i) elect to not plant a second crop on the same
acreage for harvest in the same crop year; and
‘‘(ii) collect an indemnity payment that is equal
to 100 percent of the insurable loss for the first crop.
‘‘(B) SECOND CROP PLANTED.—The producer may—
‘‘(i) plant a second crop on the same acreage for
harvest in the same crop year; and
‘‘(ii) collect an indemnity payment established by
the Corporation for the first crop, but not to exceed
35 percent of the insurable loss for the first crop.
‘‘(2) EFFECT OF NO LOSS TO SECOND CROP.—If a producer
makes an election under paragraph (1)(B) and the producer
does not suffer an insurable loss to the second crop, the pro-
ducer may collect an indemnity payment for the first crop
that is equal to—
‘‘(A) 100 percent of the insurable loss for the first
crop; less
‘‘(B) the amount previously collected under paragraph
(1)(B)(ii).
‘‘(3) PREMIUM FOR FIRST CROP IF SECOND CROP PLANTED.—
‘‘(A) INITIAL PREMIUM.—If a producer makes an election
under paragraph (1)(B), the producer shall be responsible
for a premium for the first crop that is commensurate
with the indemnity paid under paragraph (1)(B)(ii). The
Corporation shall adjust the total premium for the first
crop to reflect the reduced indemnity.
‘‘(B) EFFECT OF NO LOSS TO SECOND CROP.—If the pro-
ducer makes an election under paragraph (1)(B) and the
producer does not suffer an insurable loss to the second
crop, the producer shall be responsible for a premium for
the first crop that is equal to—
‘‘(i) the full premium owed by the producer for
the first crop; less
‘‘(ii) the amount of premium previously paid under
subparagraph (A).
‘‘(c) PREVENTED PLANTING COVERAGE.—
‘‘(1) OPTIONS ON LOSS TO FIRST CROP.—Except as provided
in subsections (d) and (e), if a first crop insured under this
title in a crop year is prevented from being planted, the pro-
ducer of the first crop may elect one of the following options:
H. R. 2559—13
‘‘(A) NO SECOND CROP PLANTED.—The producer may—
‘‘(i) elect to not plant a second crop on the same
acreage for harvest in the same crop year; and
‘‘(ii) subject to paragraph (4), collect an indemnity
payment that is equal to 100 percent of the prevented
planting guarantee for the acreage for the first crop.
‘‘(B) SECOND CROP PLANTED.—The producer may—
‘‘(i) plant a second crop on the same acreage for
harvest in the same crop year; and
‘‘(ii) subject to paragraphs (4) and (5), collect an
indemnity payment established by the Corporation for
the first crop, but not to exceed 35 percent of the
prevented planting guarantee for the acreage for the
first crop.
‘‘(2) PREMIUM FOR FIRST CROP IF SECOND PLANTED.—If the
producer makes an election under paragraph (1)(B), the pro-
ducer shall pay a premium for the first crop that is commensu-
rate with the indemnity paid under paragraph (1)(B)(ii). The
Corporation shall adjust the total premium for the first crop
to reflect the reduced indemnity.
‘‘(3) EFFECT ON ACTUAL PRODUCTION HISTORY.—Except in
the case of double cropping described in subsection (d), if a
producer make an election under paragraph (1)(B) for a crop
year, the Corporation shall assign the producer a recorded
yield for that crop year for the first crop equal to 60 percent
of the producer’s actual production history for the agricultural
commodity involved, for purposes of determining the producer’s
actual production history for subsequent crop years.
‘‘(4) AREA CONDITIONS REQUIRED FOR PAYMENT.—The Cor-
poration shall limit prevented planting payments for producers
to those situations in which other producers, in the area where
a first crop is prevented from being planted is located, are
also generally affected by the conditions that prevented the
first crop from being planted.
‘‘(5) PLANTING DATE.—If a producer plants the second crop
before the latest planting date established by the Corporation
for the first crop, the Corporation shall not make a prevented
planting payment with regard to the first crop.
‘‘(d) EXCEPTION
FOR ESTABLISHED DOUBLE CROPPING PRAC-
TICES.—A producer may receive full indemnity payments on two
or more crops planted for harvest in the same crop year and
insured under this title if each of the following conditions are
met:
‘‘(1) There is an established practice of planting two or
more crops for harvest in the same crop year in the area,
as determined by the Corporation.
‘‘(2) An additional coverage policy or plan of insurance
is offered with respect to the agricultural commodities planted
on the same acreage for harvest in the same crop year in
the area.
‘‘(3) The producer has a history of planting two or more
crops for harvest in the same crop year or the applicable acreage
has historically had two or more crops planted for harvest
in the same crop year.
‘‘(4) The second or more crops are customarily planted
after the first crop for harvest on the same acreage in the
same year in the area.
H. R. 2559—14
‘‘(e) SUBSEQUENT CROPS.—Except in the case of double cropping
described in subsection (d), if a producer elects to plant a crop
(other than a replanted crop) subsequent to a second crop on the
same acreage as the first crop and second crop for harvest in
the same crop year, the producer shall not be eligible for insurance
under this title, or noninsured crop assistance under section 196
of the Agricultural Market Transition Act (7 U.S.C. 7333), for
the subsequent crop.’’.
SEC. 109. NONINSURED CROP DISASTER ASSISTANCE PROGRAM.
(a) OPERATION
AND ADMINISTRATION
OF PROGRAM.—Section
196(a)(2) of the Agricultural Market Transition Act (7 U.S.C.
7333(a)(2)) is amended by adding at the end the following:
‘‘(C) COMBINATION OF SIMILAR TYPES OR VARIETIES.—
At the option of the Secretary, all types or varieties of
a crop or commodity, described in subparagraphs (A) and
(B), may be considered to be a single eligible crop under
this section.’’.
(b) TIMELY APPLICATION.—Section 196(b)(1) of the Agricultural
Market Transition Act (7 U.S.C. 7333(b)(1)) is amended in the
second sentence by striking ‘‘at such time as the Secretary may
require’’ and inserting ‘‘not later than 30 days before the beginning
of the coverage period, as determined by the Secretary’’.
(c) RECORDS AND REPORTS.—Section 196(b) of the Agricultural
Market Transition Act (7 U.S.C. 7333(b)) is amended—
(1) by striking paragraph (2) and inserting the following:
‘‘(2) RECORDS.—To be eligible for assistance under this
section, a producer shall provide annually to the Secretary
records of crop acreage, acreage yields, and production for each
crop, as required by the Secretary.’’; and
(2) in paragraph (3), by inserting ‘‘annual’’ after ‘‘shall
provide’’.
(d) LOSS
REQUIREMENTS.—Section 196 of the Agricultural
Market Transition Act (7 U.S.C. 7333) is amended by striking
subsection (c) and inserting the following:
‘‘(c) LOSS REQUIREMENTS.—
‘‘(1) CAUSE.—To be eligible for assistance under this section,
a producer of an eligible crop shall have suffered a loss of
a noninsured commodity as the result of a cause described
in subsection (a)(3).
‘‘(2) ASSISTANCE.—On making a determination described
in subsection (a)(3), the Secretary shall provide assistance
under this section to producers of an eligible crop that have
suffered a loss as a result of the cause described in subsection
(a)(3).
‘‘(3) PREVENTED PLANTING.—Subject to paragraph (1), the
Secretary shall make a prevented planting noninsured crop
disaster assistance payment if the producer is prevented from
planting more than 35 percent of the acreage intended for
the eligible crop because of drought, flood, or other natural
disaster, as determined by the Secretary.
‘‘(4) AREA TRIGGER.—The Secretary shall provide assistance
to individual producers without any requirement of an area
loss.’’.
(e) SERVICE FEE.—Section 196 of the Agricultural Market
Transition Act (7 U.S.C. 7333) is amended by adding at the end
the following:
H. R. 2559—15
‘‘(k) SERVICE FEE.—
‘‘(1) IN GENERAL.—To be eligible to receive assistance for
an eligible crop for a crop year under this section, a producer
shall pay to the Secretary (at the time at which the producer
submits the application under subsection (b)(1)) a service fee
for the eligible crop in an amount that is equal to the lesser
of—
‘‘(A) $100 per crop per county; or
‘‘(B) $300 per producer per county, but not to exceed
a total of $900 per producer.
‘‘(2) WAIVER.—The Secretary shall waive the service fee
required under paragraph (1) in the case of a limited resource
farmer, as defined by the Secretary.
‘‘(3) USE.—The Secretary shall deposit service fees collected
under this subsection in the Commodity Credit Corporation
Fund.’’.
Subtitle B—Improving Program Integrity
SEC. 121. IMPROVING PROGRAM COMPLIANCE AND INTEGRITY.
(a) ADDITIONAL METHODS OF ENSURING PROGRAM COMPLIANCE
AND INTEGRITY.—Section 515 of the Federal Crop Insurance Act
(7 U.S.C. 1514) is amended to read as follows:
‘‘SEC. 515. PROGRAM COMPLIANCE AND INTEGRITY.
‘‘(a) PURPOSE.—
‘‘(1) IN GENERAL.—The purpose of this section is to improve
compliance with, and the integrity of, the Federal crop insur-
ance program.
‘‘(2) ROLE OF INSURANCE PROVIDERS.—The Corporation shall
work actively with approved insurance providers to address
program compliance and integrity issues as such issues develop.
‘‘(b) NOTIFICATION OF COMPLIANCE PROBLEMS.—
‘‘(1) NOTIFICATION OF ERRORS, OMISSIONS, AND FAILURES.—
The Corporation shall notify in writing an approved insurance
provider of any error, omission, or failure to follow Corporation
regulations or procedures for which the approved insurance
provider may be responsible and which may result in a debt
owed the Corporation.
‘‘(2) TIME FOR NOTIFICATION.—Notice under paragraph (1)
shall be given within 3 years after the end of the insurance
period during which the error, omission, or failure is alleged
to have occurred, except that this time limitation shall not
apply with respect to an error, omission, or procedural violation
that is willful or intentional.
‘‘(3) EFFECT
OF
FAILURE
TO
TIMELY
NOTIFY.—Except as
provided in paragraph (2), the failure to timely provide the
notice required under this subsection shall relieve the approved
insurance provider from the debt owed the Corporation.
‘‘(c) RECONCILING
PRODUCER
INFORMATION.—The Secretary
shall develop and implement a coordinated plan for the Corporation
and 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 2001 crop year, the Secretary shall require
that the Corporation and the Farm Service Agency reconcile such
H. R. 2559—16
producer-derived information on at least an annual basis in order
to identify and address any discrepancies.
‘‘(d) IDENTIFICATION AND ELIMINATION OF FRAUD, WASTE, AND
ABUSE.—
‘‘(1) FSA MONITORING
PROGRAM.—The Secretary shall
develop and implement a coordinated plan for the Farm Service
Agency to assist the Corporation in the ongoing monitoring
of programs carried out under this title, including—
‘‘(A) at the request of the Corporation or, subject to
paragraph (2), on its own initiative if the Farm Service
Agency has reason to suspect the existence of program
fraud, waste, or abuse, conducting fact finding relative
to allegations of program fraud, waste, or abuse;
‘‘(B) reporting to the Corporation, in writing in a timely
manner, the results of any fact finding conducted pursuant
to subparagraph (A), any allegation of fraud, waste, or
abuse, and any identified program vulnerabilities; and
‘‘(C) 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.
‘‘(2) FSA INQUIRY.—If, within five calendar days after
receiving a report submitted under paragraph (1)(B), the Cor-
poration does not provide a written response that describes
the intended actions of the Corporation, the Farm Service
Agency may conduct its own inquiry into the alleged program
fraud, waste, or abuse on approval from the State director
of the Farm Service Agency of the State in which the alleged
fraud, waste, or abuse occurred. If as a result of the inquiry,
the Farm Service Agency concludes further investigation is
warranted, but the Corporation declines to proceed with the
investigation, the Farm Service Agency may refer the matter
to the Inspector General of the Department of Agriculture.
‘‘(3) USE OF FIELD INFRASTRUCTURE.—The plan required
by paragraph (1) shall provide for the use of the field infrastruc-
ture of the Farm Service Agency. The Secretary shall ensure
that relevant Farm Service Agency personnel are appropriately
trained for any responsibilities assigned to the personnel under
the plan. At a minimum, the personnel shall receive the same
level of training and pass the same basic competency tests
as required of loss adjusters of approved insurance providers.
‘‘(4) MAINTENANCE OF PROVIDER EFFORT.—
‘‘(A) IN GENERAL.—The activities of the Farm Service
Agency under this subsection do not affect the responsi-
bility of approved insurance providers to conduct any audits
of claims or other program reviews required by the Corpora-
tion.
‘‘(B) NOTIFICATION
OF
PROVIDERS.—The Corporation
shall notify the appropriate approved insurance provider
of a report from the Farm Service Agency regarding alleged
program fraud, waste, or abuse, unless the provider is
suspected to be included in, or a party to, the alleged
fraud, waste, or abuse.
‘‘(C) RESPONSE.—An approved insurance provider that
receives a notice under subparagraph (B) shall submit a
report to the Corporation, within an appropriate time
period determined by the Secretary, describing the actions
H. R. 2559—17
taken by the provider to investigate the allegations of pro-
gram fraud, waste, or abuse contained in the notice.
‘‘(5) CORPORATION RESPONSE TO PROVIDER REPORTS.—
‘‘(A) PROMPT RESPONSE.—If an approved insurance pro-
vider reports to the Corporation that the approved insur-
ance provider suspects intentional misrepresentation,
fraud, waste, or abuse, the Corporation shall make a deter-
mination and provide, within 90 calendar days after
receiving the report, a written response that describes the
intended actions of the Corporation.
‘‘(B) COOPERATIVE
EFFORT.—The approved insurance
provider and the Corporation shall take coordinated action
in any case where misrepresentation, fraud, waste, or abuse
is alleged.
‘‘(C) FAILURE TO TIMELY RESPOND.—If the Corporation
fails to respond as required by subparagraph (A), an
approved insurance provider may request the Farm Service
Agency to assist the provider in an inquiry into the alleged
program fraud, waste, or abuse.
‘‘(e) CONSULTATION WITH STATE FSA COMMITTEES.—The Sec-
retary shall establish procedures under which the Corporation shall
consult with the State committee of the Farm Service Agency for
a State with respect to policies, plans of insurance, and material
related to such policies or plans of insurance (including applicable
sales closing dates, assigned yields, and transitional yields) offered
in that State under this title.
‘‘(f ) DETECTION OF DISPARATE PERFORMANCE.—
‘‘(1) COVERED ACTIVITIES.—The Secretary shall establish
procedures under which the Corporation will be able to identify
the following:
‘‘(A) Any agent engaged in the sale of coverage offered
under this title where the loss claims associated with such
sales by the agent are equal to or greater than 150 percent
(or an appropriate percentage specified by the Corporation)
of the mean for all loss claims associated with such sales
by all other agents operating in the same area, as deter-
mined by the Corporation.
‘‘(B) Any person performing loss adjustment services
relative to coverage offered under this title where such
loss adjustments performed by the person result in accepted
or denied claims equal to or greater than 150 percent
(or an appropriate percentage specified by the Corporation)
of the mean for accepted or denied claims (as applicable)
for all other persons performing loss adjustment services
in the same area, as determined by the Corporation.
‘‘(2) REVIEW.—
‘‘(A) REVIEW REQUIRED.—The Corporation shall conduct
a review of any agent identified pursuant to paragraph
(1)(A), and any person identified pursuant to paragraph
(1)(B), to determine whether the higher loss claims associ-
ated with the agent or the higher number of accepted
or denied claims (as applicable) associated with the person
are the result of fraud, waste, or abuse.
‘‘(B) REMEDIAL ACTION.—The Corporation shall take
appropriate remedial action with respect to any occurrence
of fraud, waste, or abuse identified in a review conducted
under this paragraph.
H. R. 2559—18
‘‘(3) OVERSIGHT OF AGENTS AND LOSS ADJUSTERS.—The Cor-
poration shall develop procedures to require an annual review
by an approved insurance provider of the performance of each
agent and loss adjuster used by the approved insurance pro-
vider. The Corporation shall oversee the conduct of annual
reviews and may consult with an approved insurance provider
regarding any remedial action that is determined to be nec-
essary as a result of the annual review of an agent or loss
adjuster.
‘‘(g) SUBMISSION OF INFORMATION TO CORPORATION TO SUPPORT
COMPLIANCE EFFORTS.—
‘‘(1) TYPES OF INFORMATION REQUIRED.—The Secretary shall
establish procedures under which approved insurance providers
shall submit to the Corporation the following information with
respect to each policy or plan of insurance offered under this
title:
‘‘(A) The name and identification number of the
insured.
‘‘(B) The agricultural commodity to be insured.
‘‘(C) The elected coverage level, including the price
election, of the insured.
‘‘(2) TIME FOR SUBMISSION.—The information required by
paragraph (1) with respect to a policy or plan of insurance
shall be submitted so as to ensure receipt by the Corporation
not later than the Saturday of the week containing the calendar
day that is 30 days after the applicable sales closing date
for the crop to be insured.
‘‘(h) SANCTIONS FOR PROGRAM NONCOMPLIANCE AND FRAUD.—
‘‘(1) FALSE INFORMATION.—A producer, agent, loss adjuster,
approved insurance provider, or other person that willfully
and intentionally provides any false or inaccurate information
to the Corporation or to an approved insurance provider with
respect to a policy or plan of insurance under this title may,
after notice and an opportunity for a hearing on the record,
be subject to one or more of the sanctions described in para-
graph (3).
‘‘(2) COMPLIANCE.—A person may, after notice and an
opportunity for a hearing on the record, be subject to one
or more of the sanctions described in paragraph (3) if the
person is a producer, agent, loss adjuster, approved insurance
provider, or other person that willfully and intentionally fails
to comply with a requirement of the Corporation.
‘‘(3) AUTHORIZED SANCTIONS.—If the Secretary determines
that a person covered by this subsection has committed a
material violation under paragraph (1) or (2), the following
sanctions may be imposed:
‘‘(A) CIVIL
FINES.—A civil fine may be imposed for
each violation in an amount not to exceed the greater
of—
‘‘(i) the amount of the pecuniary gain obtained
as a result of the false or inaccurate information pro-
vided or the noncompliance with a requirement of this
title; or
‘‘(ii) $10,000.
‘‘(B) PRODUCER DISQUALIFICATION.—In the case of a
violation committed by a producer, the producer may be
disqualified for a period of up to 5 years from receiving
H. R. 2559—19
any monetary or nonmonetary benefit provided under each
of the following:
‘‘(i) This title.
‘‘(ii) The Agricultural Market Transition Act (7
U.S.C. 7201 et seq.), including the noninsured crop
disaster assistance program under section 196 of that
Act (7 U.S.C. 7333).
‘‘(iii) The Agricultural Act of 1949 (7 U.S.C. 1421
et seq.).
‘‘(iv) The Commodity Credit Corporation Charter
Act (15 U.S.C. 714 et seq.).
‘‘(v) The Agricultural Adjustment Act of 1938 (7
U.S.C. 1281 et seq.).
‘‘(vi) Title XII of the Food Security Act of 1985
(16 U.S.C. 3801 et seq.).
‘‘(vii) The Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1921 et seq.).
‘‘(viii) Any law that provides assistance to a pro-
ducer of an agricultural commodity affected by a crop
loss or a decline in the prices of agricultural commod-
ities.
‘‘(C) DISQUALIFICATION OF OTHER PERSONS.—In the case
of a violation committed by an agent, loss adjuster,
approved insurance provider, or other person (other than
a producer), the violator may be disqualified for a period
of up to 5 years from participating in any program, or
receiving any benefit, under this title.
‘‘(4) ASSESSMENT OF SANCTION.—The Secretary shall con-
sider the gravity of the violation of the person covered by
this subsection in determining—
‘‘(A) whether to impose a sanction under this sub-
section; and
‘‘(B) the type and amount of the sanction to be imposed.
‘‘(5) DISCLOSURE OF SANCTIONS.—Each policy or plan of
insurance under this title shall provide notice describing the
sanctions prescribed under paragraph (3) for willfully and
intentionally—
‘‘(A) providing false or inaccurate information to the
Corporation or to an approved insurance provider; or
‘‘(B) failing to comply with a requirement of the Cor-
poration.
‘‘(6) INSURANCE FUND.—Any funds collected under this sub-
section shall be deposited into the insurance fund established
under section 516(c).
‘‘(i) ANNUAL REPORT ON PROGRAM COMPLIANCE AND INTEGRITY
EFFORTS.—
‘‘(1) REPORT REQUIRED.—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 describing the operation of this section
during the preceding year and efforts undertaken by the Sec-
retary and the Corporation to carry out this section.
‘‘(2) INFORMATION REGARDING FRAUD, WASTE, AND ABUSE.—
The report shall identify specific occurrences of waste, fraud,
or abuse and contain an outline of actions that have been
or are being taken to eliminate the identified waste, fraud,
or abuse.
H. R. 2559—20
‘‘( j) INFORMATION MANAGEMENT.—
‘‘(1) SYSTEMS UPGRADES.—The Secretary shall upgrade the
information management systems of the Corporation used in
the administration and enforcement and this title. In upgrading
the systems, the Secretary shall ensure that new hardware
and software are compatible with the hardware and software
used by other agencies of the Department to maximize data
sharing and promote the purpose of this section.
‘‘(2) USE OF AVAILABLE INFORMATION TECHNOLOGIES.—The
Secretary shall use the information technologies known as data
mining and data warehousing and other available information
technologies to administer and enforce this title.
‘‘(3) USE OF PRIVATE SECTOR.—The Secretary may enter
into contracts to use private sector expertise and technological
resources in implementing this subsection.
‘‘(k) FUNDING.—
‘‘(1) AVAILABLE FUNDS.—To carry out this section and sec-
tions 502(c), 506(h), 508(a)(3)(B), and 508(f )(3)(A), the Corpora-
tion may use, from amounts made available from the insurance
fund established under section 516(c), not more than
$23,000,000 during the period of fiscal years 2001 through
2005, of which not more than $9,000,000 shall be available
for fiscal year 2001.
‘‘(2) PROHIBITION.—None of the funds made available under
paragraph (1) may be used to pay the salaries of employees
of the Corporation.’’.
(b) CONFORMING AMENDMENT.—Section 506 of the Federal Crop
Insurance Act (7 U.S.C. 1506) is amended—
(1) by striking subsection (q); and
(2) by redesignating subsections (r) and (s) as subsections
(q) and (r), respectively.
SEC. 122. 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:
‘‘(c) PROTECTION OF CONFIDENTIAL INFORMATION.—
‘‘(1) GENERAL PROHIBITION AGAINST DISCLOSURE.—Except
as provided in paragraph (2), 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 to the public information
furnished by a producer under this title.
‘‘(2) AUTHORIZED DISCLOSURE.—
‘‘(A) DISCLOSURE
IN
STATISTICAL
OR
AGGREGATE
FORM.—Information described in paragraph (1) may be dis-
closed to the public if the information has been transformed
into a statistical or aggregate form that does not allow
the identification of the person who supplied particular
information.
‘‘(B) CONSENT OF PRODUCER.—A producer may consent
to the disclosure of information described in paragraph
(1). The participation of the producer in, and the receipt
of any benefit by the producer under, this title or any
other program administered by the Secretary may not be
conditioned on the producer providing consent under this
paragraph.
H. R. 2559—21
‘‘(3) VIOLATIONS; PENALTIES.—Section 1770(c) of the Food
Security Act of 1985 (7 U.S.C. 2276(c)) shall apply with respect
to the release of information collected in any manner or for
any purpose prohibited by this subsection.’’.
SEC. 123. GOOD FARMING PRACTICES.
Section 508(a) of the Federal Crop Insurance Act (7 U.S.C.
1508(a)) is amended by striking paragraph (3) and inserting the
following:
‘‘(3) EXCLUSION OF LOSSES DUE TO CERTAIN ACTIONS OF
PRODUCER.—
‘‘(A) EXCLUSIONS.—Insurance provided under this sub-
section shall not cover losses due to—
‘‘(i) the neglect or malfeasance of the producer;
‘‘(ii) the failure of the producer to reseed to the
same crop in such areas and under such circumstances
as it is customary to reseed; or
‘‘(iii) the failure of the producer to follow good
farming 
practices, 
including 
scientifically 
sound
sustainable and organic farming practices.
‘‘(B) GOOD FARMING PRACTICES.—
‘‘(i) INFORMAL
ADMINISTRATIVE
PROCESS.—A pro-
ducer shall have the right to a review of a determina-
tion regarding good farming practices made under
subparagraph (A)(iii) in accordance with an informal
administrative process to be established by the Cor-
poration.
‘‘(ii) ADMINISTRATIVE REVIEW.—
‘‘(I) NO ADVERSE DECISION.—The determina-
tion shall not be considered an adverse decision
for purposes of subtitle H of the Department of
Agriculture Reorganization Act of 1994 (7 U.S.C.
6991 et seq.).
‘‘(II) REVERSAL OR MODIFICATION.—Except as
provided in clause (i), the determination may not
be reversed or modified as the result of a subse-
quent administrative review.
‘‘(iii) JUDICIAL REVIEW.—
‘‘(I) RIGHT TO REVIEW.—A producer shall have
the right to judicial review of the determination
without exhausting any right to a review under
clause (i).
‘‘(II) REVERSAL OR MODIFICATION.—The deter-
mination may not be reversed or modified as the
result of judicial review unless the determination
is found to be arbitrary or capricious.’’.
SEC. 124. RECORDS AND REPORTING.
(a) CONDITION OF OBTAINING COVERAGE.—Section 508(f )(3) of
the Federal Crop Insurance Act (7 U.S.C. 1508(f )(3)) is amended
by striking subparagraph (A) and inserting the following:
‘‘(A) provide annually records acceptable to the Sec-
retary regarding crop acreage, acreage yields, and produc-
tion for each agricultural commodity insured under this
title or accept a yield determined by the Corporation; and’’.
(b) ADDITIONAL GENERAL POWER.—Section 506 of the Federal
Crop Insurance Act (7 U.S.C. 1506) is amended by striking sub-
section (h) and inserting the following:
H. R. 2559—22
‘‘(h) COLLECTION AND SHARING OF INFORMATION.—
‘‘(1) SURVEYS AND INVESTIGATIONS.—The Corporation may
conduct surveys and investigations relating to crop insurance,
agriculture-related risks and losses, and other issues related
to carrying out this title.
‘‘(2) DATA COLLECTION.—The Corporation shall assemble
data for the purpose of establishing sound actuarial bases for
insurance on agricultural commodities.
‘‘(3) SHARING OF RECORDS.—Notwithstanding section 502(c),
records submitted in accordance with this title and section
196 of the Agricultural Market Transition Act (7 U.S.C. 7333)
shall be available to agencies and local offices of the Depart-
ment, appropriate State and Federal agencies and divisions,
and approved insurance providers for use in carrying out this
title, such section 196, and other agricultural programs.’’.
Subtitle C—Research and Pilot Programs
SEC. 131. RESEARCH AND DEVELOPMENT.
The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) is
amended by adding at the end the following:
‘‘SEC. 522. RESEARCH AND DEVELOPMENT.
‘‘(a) DEFINITION OF POLICY.—In this section, the term ‘policy’
means a policy, plan of insurance, provision of a policy or plan
of insurance, and related materials.
‘‘(b) REIMBURSEMENT
OF
RESEARCH, DEVELOPMENT, 
AND
MAINTENANCE COSTS.—
‘‘(1) RESEARCH AND DEVELOPMENT REIMBURSEMENT.—The
Corporation shall provide a payment to reimburse an applicant
for research and development costs directly related to a policy
that is—
‘‘(A) submitted to the Board and approved by the Board
under section 508(h) for reinsurance; and
‘‘(B) if applicable, offered for sale to producers.
‘‘(2) EXISTING
PLANS.—The Corporation shall reimburse
costs associated with research and development costs directly
related to a policy that was approved by the Board prior to
the date of the enactment of this section.
‘‘(3) MARKETABILITY.—The Corporation shall approve a
reimbursement under paragraph (1) or (2) only after deter-
mining that the policy is marketable based on a reasonable
marketing plan, as determined by the Board.
‘‘(4) MAINTENANCE PAYMENTS.—
‘‘(A) REQUIREMENT.—The Corporation shall reimburse
maintenance costs associated with the annual cost of under-
writing for a policy described in paragraphs (1) and (2).
‘‘(B) DURATION.—Payments with respect to mainte-
nance costs may be provided for a period of not more
than four reinsurance years subsequent to Board approval
for payment under this subsection.
‘‘(C) OPTIONS FOR MAINTENANCE.—On the expiration
of the 4-year period described in subparagraph (B), the
approved insurance provider responsible for maintenance
of the policy may—
H. R. 2559—23
‘‘(i) maintain the policy and charge a fee to
approved insurance providers that elect to sell the
policy under this subsection; or
‘‘(ii) transfer responsibility for maintenance of the
policy to the Corporation.
‘‘(D) FEE.—
‘‘(i) AMOUNT.—Subject to approval by the Board,
the amount of the fee that is payable by an approved
insurance provider that elects to sell the policy shall
be an amount that is determined by the approved
insurance provider maintaining the policy.
‘‘(ii) APPROVAL.—The Board shall approve the
amount of a fee determined under clause (i) for mainte-
nance of the policy unless the Board determines that
the amount of the fee—
‘‘(I) is unreasonable in relation to the mainte-
nance costs associated with the policy; or
‘‘(II) unnecessarily inhibits the use of the
policy.
‘‘(5) TREATMENT OF PAYMENT.—Payments made under this
subsection for a policy shall be considered as payment in full
by the Corporation for the research and development conducted
with regard to the policy and any property rights to the policy.
‘‘(6) REIMBURSEMENT
AMOUNT.—The Corporation shall
determine the amount of the payment under this subsection
for an approved policy based on the complexity of the policy
and the size of the area in which the policy or material is
expected to be sold.
‘‘(c) RESEARCH AND DEVELOPMENT CONTRACTING AUTHORITY.—
‘‘(1) AUTHORITY.—The Corporation may enter into contracts
to carry out research and development to—
‘‘(A) increase participation in States in which the Cor-
poration determines that—
‘‘(i) there is traditionally, and continues to be, a
low level of Federal crop insurance participation and
availability; and
‘‘(ii) the State is underserved by the Federal crop
insurance program;
‘‘(B) increase participation in areas that are under-
served by the Federal crop insurance program; and
‘‘(C) increase participation by producers of underserved
agricultural commodities, including specialty crops.
‘‘(2) 
UNDERSERVED
AGRICULTURAL
COMMODITIES
AND
AREAS.—
‘‘(A) AUTHORITY.—The Corporation may enter into con-
tracts under procedures prescribed by the Corporation with
qualified persons to carry out research and development
for policies that promote the purposes of paragraph (1).
‘‘(B) CONSULTATION.—Before entering into a contract
under subparagraph (A), the Corporation shall consult with
groups representing producers of agricultural commodities
that would be served by the policies that are the subject
of the research and development.
‘‘(3) QUALIFIED PERSONS.—A person with experience in crop
insurance or farm or ranch risk management (including a col-
lege or university, an approved insurance provider, and a trade
or research organization), as determined by the Corporation,
H. R. 2559—24
shall be eligible to enter into a contract with the Corporation
under this subsection.
‘‘(4) TYPES
OF
CONTRACTS.—A contract under this sub-
section may provide for research and development regarding
new or expanded policies, including policies based on adjusted
gross income, cost-of-production, quality losses, and an inter-
mediate base program with a higher coverage and cost than
catastrophic risk protection.
‘‘(5) USE OF RESULTING POLICIES.—The Corporation may
offer any policy developed under this subsection that is
approved by the Board.
‘‘(6) RESEARCH AND DEVELOPMENT PRIORITIES.—The Cor-
poration shall establish as one of the highest research and
development priorities of the Corporation the development of
a pasture, range, and forage program.
‘‘(7) STUDY OF MULTIYEAR COVERAGE.—
‘‘(A) IN GENERAL.—The Corporation shall contract with
a qualified person to conduct a study to determine whether
offering policies that provide coverage for multiple years
would reduce fraud, waste, and abuse by persons that
participate in the Federal crop insurance program.
‘‘(B) REPORT.—Not later than 1 year after the date
of the enactment of this section, the Corporation shall
submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate a report that describes
the results of the study conducted under subparagraph
(A).
‘‘(8) CONTRACT FOR REVENUE COVERAGE PLANS.—The Cor-
poration shall enter into a contract for research and develop-
ment regarding one or more revenue coverage plans that are
designed to enable producers to take maximum advantage of
fluctuations in market prices and thereby maximize revenue
realized from the sale of an agricultural commodity. A revenue
coverage plan may include the use of existing market
instruments or the development of new market instruments.
Not later than 15 months after the date of the enactment
of this section, the Corporation shall submit to the Committee
on Agriculture of the House of Representatives and the Com-
mittee on Agriculture, Nutrition, and Forestry of the Senate
a report that describes the results of the contract entered
into under this paragraph.
‘‘(9) CONTRACT FOR COST OF PRODUCTION POLICY.—
‘‘(A) AUTHORITY.—The Corporation shall enter into a
contract for research and development regarding a cost
of production policy.
‘‘(B) RESEARCH AND DEVELOPMENT.—The research and
development shall—
‘‘(i) take into consideration the differences in the
cost of production on a county-by-county basis; and
‘‘(ii) cover as many commodities as is practicable.
‘‘(10) RELATION TO LIMITATIONS.—A policy developed under
this subsection may be prepared without regard to the limita-
tions of this title, including—
‘‘(A) the requirement concerning the levels of coverage
and rates; and
H. R. 2559—25
‘‘(B) the requirement that the price level for each
insured agricultural commodity must equal the expected
market price for the agricultural commodity, as established
by the Board.
‘‘(d) PARTNERSHIPS FOR RISK MANAGEMENT DEVELOPMENT AND
IMPLEMENTATION.—
‘‘(1) PURPOSE.—The purpose of this subsection is to
authorize the Corporation to enter into partnerships with public
and private entities for the purpose of increasing the avail-
ability of loss mitigation, financial, and other risk management
tools for producers, with a priority given to risk management
tools for producers of agricultural commodities covered by sec-
tion 196 of the Agricultural Market Transition Act (7 U.S.C.
7333), specialty crops, and underserved agricultural commod-
ities.
‘‘(2) AUTHORITY.—The Corporation may enter into partner-
ships with the Cooperative State Research, Education, and
Extension Service, the Agricultural Research Service, the
National Oceanic Atmospheric Administration, and other appro-
priate public and private entities with demonstrated capabili-
ties in developing and implementing risk management and
marketing options for producers of specialty crops and under-
served agricultural commodities.
‘‘(3) OBJECTIVES.—The Corporation may enter into a part-
nership under paragraph (2)—
‘‘(A) to enhance the notice and timeliness of notice
of weather conditions that could negatively affect crop
yields, quality, and final product use in order to allow
producers to take preventive actions to increase end product
profitability and marketability and to reduce the possibility
of crop insurance claims;
‘‘(B) to develop a multifaceted approach to pest manage-
ment and fertilization to decrease inputs, decrease environ-
mental exposure, and increase application efficiency;
‘‘(C) to develop or improve techniques for planning,
breeding, planting, growing, maintaining, harvesting,
storing, shipping, and marketing that will address quality
and quantity challenges associated with year-to-year and
regional variations;
‘‘(D) to clarify labor requirements and assist producers
in complying with requirements to better meet the phys-
ically intense and time-compressed planting, tending, and
harvesting requirements associated with the production of
specialty crops and underserved agricultural commodities;
‘‘(E) to provide assistance to State foresters or equiva-
lent officials for the prescribed use of burning on private
forest land for the prevention, control, and suppression
of fire;
‘‘(F) to provide producers with training and informa-
tional opportunities so that the producers will be better
able to use financial management, crop insurance, mar-
keting contracts, and other existing and emerging risk
management tools; and
‘‘(G) to develop other risk management tools to further
increase economic and production stability.
‘‘(e) FUNDING.—
H. R. 2559—26
‘‘(1) REIMBURSEMENTS.—Of the amounts made available
from the insurance fund established under section 516(c), the
Corporation may use to provide reimbursements under sub-
section (b) not more than $10,000,000 for each of fiscal years
2001 and 2002 and not more than $15,000,000 for fiscal year
2003 and each subsequent fiscal year.
‘‘(2) CONTRACTING.—
‘‘(A) AUTHORITY.—Of the amounts made available from
the insurance fund established under section 516(c), the
Corporation may use to carry out contracting and partner-
ships under subsections (c) and (d) not more than
$20,000,000 for each of fiscal years 2001 through 2003
and not more than $25,000,000 for fiscal year 2004 and
each subsequent fiscal year.
‘‘(B) UNDERSERVED
STATES.—Of the amount made
available under subparagraph (A) for a fiscal year, the
Corporation shall use not more than $5,000,000 for the
fiscal year to carry out contracting for research and develop-
ment to carry out the purpose described in subsection
(c)(1)(A).
‘‘(3) UNUSED FUNDING.—If the Corporation determines that
the amount available to provide either reimbursement pay-
ments or contract payments under this section for a fiscal
year is not needed for such purposes, the Corporation may
use the excess amount to carry out another function authorized
under this section.
‘‘(4) PROHIBITED RESEARCH AND DEVELOPMENT BY CORPORA-
TION.—
‘‘(A) NEW POLICIES.—Notwithstanding subsection (d),
on and after October 1, 2000, the Corporation shall not
conduct research and development for any new policy for
an agricultural commodity offered under this title.
‘‘(B) EXISTING POLICIES.—Any policy developed by the
Corporation under this title before that date may continue
to be offered for sale to producers.’’.
SEC. 132. PILOT PROGRAMS.
(a) AUTHORITY.—The Federal Crop Insurance Act (7 U.S.C.
1501 et seq.), as amended by section 131, is amended by adding
at the end the following:
‘‘SEC. 523. PILOT PROGRAMS.
‘‘(a) GENERAL PROVISIONS.—
‘‘(1) AUTHORITY.—Except as otherwise provided in this sec-
tion, the Corporation may conduct a pilot program submitted
to and approved by the Board under section 508(h), or that
is developed under subsection (b) or section 522, to evaluate
whether a proposal or new risk management tool tested by
the pilot program is suitable for the marketplace and addresses
the needs of producers of agricultural commodities.
‘‘(2) PRIVATE COVERAGE.—Under this section, the Corpora-
tion shall not conduct any pilot program that provides insurance
protection against a risk if insurance protection against the
risk is generally available from private companies.
‘‘(3) COVERED ACTIVITIES.—The pilot programs described
in paragraph (1) may include pilot programs providing insur-
ance protection against losses involving—
H. R. 2559—32
Subtitle D—Administration
SEC. 141. RELATION TO OTHER LAWS.
Section 502 of the Federal Crop Insurance Act (7 U.S.C. 1502),
as amended by section 122, is amended by adding at the end
the following:
‘‘(d) RELATION TO OTHER LAWS.—
‘‘(1) TERMS AND CONDITIONS OF POLICIES AND PLANS.—The
terms and conditions of any policy or plan of insurance offered
under this title that is reinsured by the Corporation shall
not—
‘‘(A) be subject to the jurisdiction of the Commodity
Futures Trading Commission or the Securities and
Exchange Commission; or
‘‘(B) be considered to be accounts, agreements
(including any transaction that 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.).
‘‘(2) EFFECT ON CFTC AND COMMODITY EXCHANGE ACT.—
Nothing in this title affects the jurisdiction of the Commodity
Futures Trading Commission or the applicability of the Com-
modity Exchange Act (7 U.S.C. 1 et seq.) to any transaction
conducted on a contract market under that Act by an approved
insurance provider to offset the approved insurance provider’s
risk under a plan or policy of insurance under this title.’’.
SEC. 142. MANAGEMENT OF CORPORATION.
(a) BOARD OF DIRECTORS OF CORPORATION.—
(1) 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 Agri-
culture.
‘‘(E) One person experienced in the crop insurance
business.
‘‘(F) One person experienced in reinsurance or the regu-
lation of insurance.
H. R. 2559—87
(A) is inspected and authorized for entry into or transit
movement through the United States; or
(B) is otherwise released by the Secretary of Agri-
culture.
(3) EXCEPTIONS.—Paragraphs (1) and (2) shall not apply
to any plant, plant product, biological control organism, plant
pest, or noxious weed that is imported from a country or region
of a country designated by the Secretary of Agriculture, pursu-
ant to regulations, as exempt from the requirements of such
paragraphs.
(b) DUTY OF RESPONSIBLE PARTIES.—
(1) NOTIFICATION.—The person responsible for any plant,
plant product, biological control organism, plant pest, noxious
weed, article, or means of conveyance required to have a permit
under section 411 or 412 shall provide the notification described
in paragraph (3) as soon as possible after the arrival of the
plant, plant product, biological control organism, plant pest,
noxious weed, article, or means of conveyance at a port of
entry and before the plant, plant product, biological control
organism, plant pest, noxious weed, article, or means of convey-
ance is moved from the port of entry.
(2) SUBMISSION.—The notification shall be provided to the
Secretary, or, at the Secretary’s direction, to the proper official
of the State to which the plant, plant product, biological control
organism, plant pest, noxious weed, article, or means of convey-
ance is destined, or both, as the Secretary may prescribe.
(3) ELEMENTS OF NOTIFICATION.—The notification shall con-
sist of the following:
(A) The name and address of the consignee.
(B) The nature and quantity of the plant, plant product,
biological control organism, plant pest, noxious weed,
article, or means of conveyance proposed to be moved.
(C) The country and locality where the plant, plant
product, biological control organism, plant pest, noxious
weed, article, or means of conveyance was grown, produced,
or located.
(c) PROHIBITION ON MOVEMENT OF ITEMS WITHOUT AUTHORIZA-
TION.—No person shall move from a port of entry or interstate
any imported plant, plant product, biological control organism, plant
pest, noxious weed, article, or means of conveyance unless the
imported plant, plant product, biological control organism, plant
pest, noxious weed, article, or means of conveyance—
(1) is inspected and authorized for entry into or transit
movement through the United States; or
(2) is otherwise released by the Secretary.
SEC. 414. GENERAL REMEDIAL MEASURES FOR NEW PLANT PESTS
AND NOXIOUS WEEDS.
(a) AUTHORITY TO HOLD, TREAT, OR DESTROY ITEMS.—If the
Secretary considers it necessary in order to prevent the dissemina-
tion of a plant pest or noxious weed that is new to or not known
to be widely prevalent or distributed within and throughout the
United States, the Secretary may hold, seize, quarantine, treat,
apply other remedial measures to, destroy, or otherwise dispose
of any plant, plant pest, noxious weed, biological control organism,
plant product, article, or means of conveyance that—