673 
SEC. 11005. REIMBURSEMENT OF RESEARCH AND DEVELOP-
MENT COSTS RELATED TO NEW CROP INSUR-
ANCE PRODUCTS. 
(a) REIMBURSEMENT AUTHORIZED.—Paragraph (1) 
of section 522(b) of the Federal Crop Insurance Act (7 
U.S.C. 1522(b)) is amended to read as follows: 
‘‘(1) RESEARCH AND DEVELOPMENT REIMBURSE-
MENT.—The Corporation shall provide a payment to 
reimburse an applicant for research and development 
costs directly related to a policy that— 
‘‘(A) is submitted to the Board pursuant to 
an FCIC Reimbursement Grant under para-
graph (7); or 
‘‘(B) is submitted to the Board and ap-
proved by the Board under section 508(h) for re-
insurance and, if applicable, offered for sale to 
producers.’’. 
(b) FCIC REIMBURSEMENT GRANTS.—Section 522(b) 
of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is 
amended by adding at the end the following new paragraph: 
‘‘(7) FCIC REIMBURSEMENT GRANTS.— 
‘‘(A) GRANTS AUTHORIZED.—The Corpora-
tion shall provide FCIC Reimbursement Grants 
to persons proposing to prepare for submission to 
the Board crop insurance policies and provisions 
under subparagraphs (A) and (B) of section 
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508(h)(1), who apply and are approved for such 
FCIC Reimbursement Grants under the terms 
and conditions of this paragraph. 
‘‘(B) SUBMISSION
OF
APPLICATION.—The 
Board shall receive and consider applications for 
FCIC Reimbursement Grants at least once annu-
ally. An application to receive an FCIC Reim-
bursement Grant from the Corporation shall con-
sist of such materials as the Board may require, 
including— 
‘‘(i) a concept paper that describes the 
proposal in sufficient detail for the Board 
to determine whether it satisfies the require-
ments of subparagraph (C); 
‘‘(ii) a summary of — 
‘‘(I) the need for the product, in-
cluding an assessment of marketability 
and expected demand among affected 
producers; 
‘‘(II) support from producers, pro-
ducer organizations, lenders, or other 
interested parties; 
‘‘(III) the impact the product 
would have on producers and on the 
crop insurance delivery system; and 
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‘‘(IV) that no products are offered 
by the private sector providing the 
same benefits and risk management 
services as the proposal. 
‘‘(iii) a summary of data sources 
available demonstrating that the product 
can reasonably be developed and properly 
rated; and 
‘‘(iv) identification of the risks the pro-
posed product will cover and that the risks 
are insurable under the Act 
‘‘(C) APPROVAL CONDITIONS.—Approval of 
an application for a FCIC Reimbursement 
Grant shall be by majority vote of the Board. 
The Board shall approve the application only if 
the Board finds that— 
‘‘(i) the proposal contained in the ap-
plication— 
‘‘(I) provides coverage to a crop or 
region not traditionally served by the 
Federal crop insurance program; 
‘‘(II) provides crop insurance cov-
erage in a significantly improved form; 
‘‘(III) addresses a recognized flaw 
or problem in the program; 
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‘‘(IV) introduces a significant new 
concept or innovation to the program; 
or 
‘‘(V) provides coverage, benefits, or 
risk management services not available 
from the private sector; 
‘‘(ii) the applicant demonstrates the 
necessary qualifications to complete the 
project successfully in a timely manner 
with high quality; 
‘‘(iii) the proposal is in the interests of 
producers and can reasonably be expected to 
be actuarially appropriate; 
‘‘(iv) the Board determines that the 
Corporation has sufficient available funding 
to award the FCIC Reimbursement Grant; 
and 
‘‘(v) the proposed budget and timetable 
are reasonable. 
‘‘(D) PARTICIPATION.—In reviewing pro-
posals under this paragraph, the Board may use 
the services of persons it deems appropriate for 
expert review. All proposals submitted under this 
paragraph will be treated as confidential in ac-
cordance with section 508(h)(4). 
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‘‘(E) ENTERING INTO AGREEMENT.—Upon 
approval of the application, the Board shall 
enter into an agreement with the person for the 
development of a formal submission meeting the 
requirements for a complete submission estab-
lished by the Board under section 508(h). 
‘‘(F) FEASIBILITY
STUDIES.—In appro-
priate cases, the Corporation may structure the 
FCIC Reimbursement Grant to require, as an 
initial step within the overall process, the sub-
mitter to complete a feasibility study and report 
the results of such study to the Corporation prior 
to proceeding with further development. The Cor-
poration may require such other reports as nec-
essary to monitor the development efforts. 
‘‘(G) RATES.—Payment for work performed 
under this paragraph shall be based on rates de-
termined by the Corporation for products sub-
mitted under section 508(h) of the Act or for 
those contracted by the Corporation under sec-
tion 522(c) of the Act. 
‘‘(H) TERMINATION.—The Corporation or 
the submitter may terminate any FCIC Reim-
bursement Grant to reimburse expenses at any 
time for just cause. If the Corporation or the sub-
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