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individual received was in compliance with this 
paragraph. 
‘‘(D) SANCTIONS.—The procedural re-
quirements and sanctions prescribed in section 
515(h) shall apply to the prosecution of a viola-
tion of this paragraph. 
‘‘(E) APPLICABILITY.— 
‘‘(i) IN GENERAL.—Sanctions for vio-
lations under this paragraph shall only 
apply to the individuals or entities directly 
responsible for the certification required 
under subparagraph (C) or the failure to 
comply with the requirements of this para-
graph. 
‘‘(ii) 
PROHIBITION.—No 
sanctions 
shall apply with respect to the policy or 
plans of insurance upon which compensa-
tion is received, including the reinsurance 
for those policies or plans.’’. 
SEC. 12006. ADMINISTRATIVE FEE. 
(a) IN GENERAL.—Section 508(b)(5) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(b)(5)) is amended— 
(1) by striking subparagraph (A) and inserting 
the following: 
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‘‘(A) BASIC
FEE.—Each producer shall 
pay an administrative fee for catastrophic risk 
protection in the amount of $300 per crop per 
county.’’; and 
(2) in subparagraph (B)— 
(A) by striking ‘‘PAYMENT ON BEHALF 
OF PRODUCERS’’ and inserting ‘‘PAYMENT 
OF CATASTROPHIC RISK PROTECTION FEE 
ON BEHALF OF PRODUCERS’’; 
(B) in clause (i)— 
(i) by striking ‘‘or other payment’’; 
and 
(ii) by striking ‘‘with catastrophic risk 
protection or additional coverage’’ and in-
serting ‘‘through the payment of cata-
strophic risk protection administrative 
fees’’; 
(C) by striking clauses (ii) and (vi); 
(D) by redesignating clauses (iii), (iv), and 
(v) as clauses (ii), (iii), and (iv), respectively; 
(E) in clause (iii) (as so redesignated), by 
striking ‘‘A policy or plan of insurance’’ and in-
serting ‘‘Catastrophic risk protection coverage’’; 
and 
(F) in clause (iv) (as so redesignated)— 
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(i) by striking ‘‘or other arrangement 
under this subparagraph’’; and 
(ii) by striking ‘‘additional’’. 
(b) REPEAL.—Section 748 of the Agriculture, Rural 
Development, Food and Drug Administration, and Re-
lated Agencies Appropriations Act, 1999 (7 U.S.C. 1508 
note; Public Law 105–277) is repealed. 
SEC. 12007. TIME FOR PAYMENT. 
Section 508 of the Federal Crop Insurance Act (7 
U.S.C. 1508) is amended— 
(1) in subsection (b)(5)(C), by striking ‘‘the 
date that premium’’ and inserting ‘‘the same date on 
which the premium’’; 
(2) in subsection (c)(10), by adding at the end 
the following: 
‘‘(C) TIME
FOR
PAYMENT.—Subsection 
(b)(5)(C) shall apply with respect to the collec-
tion date for the administrative fee.’’; and 
(3) in subsection (d), by adding at the end the 
following: 
‘‘(4) BILLING DATE FOR PREMIUMS.—Effective 
beginning with the 2012 reinsurance year, the Cor-
poration shall establish August 15 as the billing date 
for premiums.’’. 
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SEC. 12008. CATASTROPHIC COVERAGE REIMBURSEMENT 
RATE. 
Section 508(b)(11) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(b)(11)) is amended by striking ‘‘8 per-
cent’’ and inserting ‘‘6 percent’’. 
SEC. 12009. GRAIN SORGHUM PRICE ELECTION. 
Section 508(c)(5) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(c)(5)) is amended by adding at the end 
the following: 
‘‘(D) GRAIN SORGHUM PRICE ELECTION.— 
‘‘(i) IN GENERAL.—The Corporation, 
in conjunction with the Secretary (referred 
to in this subparagraph as the ‘Corpora-
tion’), shall— 
‘‘(I) not later than 60 days after 
the date of enactment of this subpara-
graph, make available all methods and 
data, including data from the Eco-
nomic Research Service, used by the 
Corporation to develop the expected 
market prices for grain sorghum 
under the production and revenue- 
based plans of insurance of the Cor-
poration; and 
‘‘(II) request applicable data 
from the grain sorghum industry. 
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‘‘(ii) EXPERT REVIEWERS.— 
‘‘(I) IN
GENERAL.—Not later 
than 120 days after the date of enact-
ment of this subparagraph, the Cor-
poration shall contract individually 
with 5 expert reviewers described in 
subclause (II) to develop and rec-
ommend a methodology for deter-
mining an expected market price for 
sorghum for both the production and 
revenue-based plans of insurance to 
more accurately reflect the actual 
price at harvest. 
‘‘(II) REQUIREMENTS.—The ex-
pert reviewers under subclause (I) 
shall be comprised of agricultural 
economists with experience in grain 
sorghum 
and 
corn 
markets, 
of 
whom— 
‘‘(aa) 2 shall be agricultural 
economists 
of 
institutions 
of 
higher education; 
‘‘(bb) 2 shall be economists 
from within the Department; and 
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‘‘(cc) 1 shall be an econo-
mist nominated by the grain sor-
ghum industry. 
‘‘(iii) RECOMMENDATIONS.— 
‘‘(I) IN
GENERAL.—Not later 
than 90 days after the date of con-
tracting with the expert reviewers 
under clause (ii), the expert reviewers 
shall submit, and the Corporation 
shall make available to the public, the 
recommendations of the expert review-
ers. 
‘‘(II) 
CONSIDERATION.—The 
Corporation shall consider the rec-
ommendations under subclause (I) 
when determining the appropriate 
pricing methodology to determine the 
expected market price for grain sor-
ghum under both the production and 
revenue-based plans of insurance. 
‘‘(III) PUBLICATION.—Not later 
than 60 days after the date on which 
the Corporation receives the rec-
ommendations of the expert reviewers, 
the Corporation shall publish the pro-
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posed pricing methodology for both 
the production and revenue-based 
plans of insurance for notice and com-
ment and, during the comment period, 
conduct at least 1 public meeting to 
discuss the proposed pricing meth-
odologies. 
‘‘(iv) APPROPRIATE PRICING METHOD-
OLOGY.— 
‘‘(I) IN
GENERAL.—Not later 
than 180 days after the close of the 
comment period in clause (iii)(III), 
but effective not later than the 2010 
crop year, the Corporation shall im-
plement a pricing methodology for 
grain sorghum under the production 
and revenue-based plans of insurance 
that is transparent and replicable. 
‘‘(II) INTERIM METHODOLOGY.— 
Until the date on which the new pric-
ing methodology is implemented, the 
Corporation may continue to use the 
pricing methodology that the Corpora-
tion determines best establishes the 
expected market price. 
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‘‘(III) AVAILABILITY.—On an an-
nual basis, the Corporation shall make 
available the pricing methodology and 
data used to determine the expected 
market prices for grain sorghum 
under the production and revenue- 
based plans of insurance, including 
any changes to the methodology used 
to determine the expected market 
prices for grain sorghum from the 
previous year.’’. 
SEC. 12010. PREMIUM REDUCTION AUTHORITY. 
Subsection 508(e) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(e)) is amended— 
(1) in paragraph (2), by striking ‘‘paragraph 
(4)’’ and inserting ‘‘paragraph (3)’’; 
(2) by striking paragraph (3); and 
(3) by redesignating paragraphs (4) and (5) as 
paragraphs (3) and (4), respectively. 
SEC. 12011. ENTERPRISE AND WHOLE FARM UNITS. 
Section 508(e) of Federal Crop Insurance Act (7 
U.S.C. 1508(e)) (as amended by section 12010) is amend-
ed by adding at the end the following: 
‘‘(5) ENTERPRISE AND WHOLE FARM UNITS.— 
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‘‘(A) IN GENERAL.—The Corporation may 
carry out a pilot program under which the Cor-
poration pays a portion of the premiums for 
plans or policies of insurance for which the in-
surable unit is defined on a whole farm or en-
terprise unit basis that is higher than would 
otherwise be paid in accordance with paragraph 
(2). 
‘‘(B) AMOUNT.—The percentage of the 
premium paid by the Corporation to a policy-
holder for a policy with an enterprise or whole 
farm unit under this paragraph shall, to the 
maximum extent practicable, provide the same 
dollar amount of premium subsidy per acre that 
would otherwise have been paid by the Corpora-
tion under paragraph (2) if the policyholder had 
purchased a basic or optional unit for the crop 
for the crop year. 
‘‘(C) LIMITATION.—The amount of the 
premium paid by the Corporation under this 
paragraph may not exceed 80 percent of the 
total premium for the enterprise or whole farm 
unit policy.’’. 
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SEC. 12012. PAYMENT OF PORTION OF PREMIUM FOR AREA 
REVENUE PLANS. 
Section 508(e) of the Federal Crop Insurance Act (7 
U.S.C. 1508(e)) (as amended by section 12011) is amend-
ed— 
(1) in paragraph (2), in the matter preceding 
subparagraph (A), by striking ‘‘paragraph (4)’’ and 
inserting ‘‘paragraphs (4), (6), and (7)’’; and 
(2) by adding at the end the following: 
‘‘(6) PREMIUM SUBSIDY FOR AREA REVENUE 
PLANS.—Subject to paragraph (4), in the case of a 
policy or plan of insurance that covers losses due to 
a reduction in revenue in an area, the amount of the 
premium paid by the Corporation shall be as follows: 
‘‘(A) In the case of additional area cov-
erage equal to or greater than 70 percent, but 
less than 75 percent, of the recorded county 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 59 percent of the amount of the 
premium 
established 
under 
subsection 
(d)(2)(B)(i) for the coverage level selected; 
and 
‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage 
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level selected to cover operating and ad-
ministrative expenses. 
‘‘(B) In the case of additional area cov-
erage equal to or greater than 75 percent, but 
less than 85 percent, of the recorded county 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 55 percent of the amount of the 
premium 
established 
under 
subsection 
(d)(2)(B)(i) for the coverage level selected; 
and 
‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage 
level selected to cover operating and ad-
ministrative expenses. 
‘‘(C) In the case of additional area cov-
erage equal to or greater than 85 percent, but 
less than 90 percent, of the recorded county 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 49 percent of the amount of the 
premium 
established 
under 
subsection 
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(d)(2)(B)(i) for the coverage level selected; 
and 
‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage 
level selected to cover operating and ad-
ministrative expenses. 
‘‘(D) In the case of additional area cov-
erage equal to or greater than 90 percent of the 
recorded county yield indemnified at not greater 
than 100 percent of the expected market price, 
the amount shall be equal to the sum of— 
‘‘(i) 44 percent of the amount of the 
premium 
established 
under 
subsection 
(d)(2)(B)(i) for the coverage level selected; 
and 
‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage 
level selected to cover operating and ad-
ministrative expenses. 
‘‘(7) PREMIUM
SUBSIDY
FOR
AREA
YIELD 
PLANS.—Subject to paragraph (4), in the case of a 
policy or plan of insurance that covers losses due to 
a loss of yield or prevented planting in an area, the 
amount of the premium paid by the Corporation 
shall be as follows: 
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‘‘(A) In the case of additional area cov-
erage equal to or greater than 70 percent, but 
less than 80 percent, of the recorded county 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 59 percent of the amount of the 
premium 
established 
under 
subsection 
(d)(2)(B)(i) for the coverage level selected; 
and 
‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage 
level selected to cover operating and ad-
ministrative expenses. 
‘‘(B) In the case of additional area cov-
erage equal to or greater than 80 percent, but 
less than 90 percent, of the recorded county 
yield indemnified at not greater than 100 per-
cent of the expected market price, the amount 
shall be equal to the sum of— 
‘‘(i) 55 percent of the amount of the 
premium 
established 
under 
subsection 
(d)(2)(B)(i) for the coverage level selected; 
and 
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‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage 
level selected to cover operating and ad-
ministrative expenses. 
‘‘(C) In the case of additional area cov-
erage equal to or greater than 90 percent, of 
the recorded county yield indemnified at not 
greater than 100 percent of the expected mar-
ket price, the amount shall be equal to the sum 
of— 
‘‘(i) 51 percent of the amount of the 
premium 
established 
under 
subsection 
(d)(2)(B)(i) for the coverage level selected; 
and 
‘‘(ii) the amount determined under 
subsection (d)(2)(B)(ii) for the coverage 
level selected to cover operating and ad-
ministrative expenses.’’. 
SEC. 12013. DENIAL OF CLAIMS. 
Section 508(j)(2)(A) of the Federal Crop Insurance 
Act (7 U.S.C. 1508(j)(2)(A)) is amended by inserting ‘‘on 
behalf of the Corporation’’ after ‘‘approved provider’’. 
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SEC. 12014. SETTLEMENT OF CROP INSURANCE CLAIMS ON 
FARM-STORED PRODUCTION. 
(a) IN GENERAL.—Section 508(j) of the Federal 
Crop Insurance Act (7 U.S.C. 1508(j)) is amended by 
adding at the end the following: 
‘‘(5) SETTLEMENT
OF
CLAIMS
ON
FARM- 
STORED PRODUCTION.—A producer with farm-stored 
production may, at the option of the producer, delay 
settlement of a crop insurance claim relating to the 
farm-stored production for up to 4 months after the 
last date on which claims may be submitted under 
the policy of insurance.’’. 
(b) STUDY ON THE EFFICACY OF PACK FACTORS.— 
(1) IN GENERAL.—The Secretary shall conduct 
a study of the efficacy and accuracy of the applica-
tion of pack factors regarding the measurement of 
farm-stored production for purposes of providing 
policies or plans of insurance under the Federal 
Crop Insurance Act (7 U.S.C. 1501 et seq.). 
(2) CONSIDERATIONS.—The study shall con-
sider— 
(A) structural shape and size; 
(B) time in storage; 
(C) the impact of facility aeration systems; 
and 
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(D) any other factors the Secretary con-
siders appropriate. 
(3) REPORT.—Not later than 3 years after the 
date of enactment of this Act, the Secretary shall 
submit to the Committee on Agriculture of the 
House of Representatives and the Committee on Ag-
riculture, Nutrition, and Forestry of the Senate a 
report that includes the findings of the study and 
any related policy recommendations. 
SEC. 12015. TIME FOR REIMBURSEMENT. 
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: 
‘‘(D) TIME FOR REIMBURSEMENT.—Effec-
tive beginning with the 2012 reinsurance year, 
the Corporation shall reimburse approved insur-
ance providers and agents for the allowable ad-
ministrative and operating costs of the pro-
viders and agents as soon as practicable after 
October 1 (but not later than October 31) after 
the reinsurance year for which reimbursements 
are earned.’’. 
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SEC. 12016. REIMBURSEMENT RATE. 
Section 508(k)(4) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(k)(4)) (as amended by section 12015) is 
amended— 
(1) in subparagraph (A), by striking ‘‘Except as 
provided in subparagraph (B)’’ and inserting ‘‘Ex-
cept as otherwise provided in this paragraph’’; and 
(2) by adding at the end the following: 
‘‘(E) 
REIMBURSEMENT
RATE
REDUC-
TION.—In the case of a policy of additional cov-
erage that received a rate of reimbursement for 
administrative and operating costs for the 2008 
reinsurance year, for each of the 2009 and sub-
sequent reinsurance years, the reimbursement 
rate for administrative and operating costs shall 
be 2.3 percentage points below the rates in ef-
fect as of the date of enactment of the Food, 
Conservation, and Energy Act of 2008 for all 
crop insurance policies used to define loss ratio, 
except that only 1⁄2 of the reduction shall apply 
in a reinsurance year to the total premium writ-
ten in a State in which the State loss ratio is 
greater than 1.2. 
‘‘(F) REIMBURSEMENT
RATE
FOR
AREA 
POLICIES
AND
PLANS
OF
INSURANCE.—Not-
withstanding subparagraphs (A) through (E), 
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for each of the 2009 and subsequent reinsur-
ance years, the reimbursement rate for area 
policies and plans of insurance widely available 
as of the date of enactment of this subpara-
graph shall be 12 percent of the premium used 
to define loss ratio for that reinsurance year.’’. 
SEC. 12017. RENEGOTIATION OF STANDARD REINSURANCE 
AGREEMENT. 
Section 508(k) of the Federal Crop Insurance Act (7 
U.S.C. 1508(k)) is amended by adding at the end the fol-
lowing: 
‘‘(8) RENEGOTIATION OF STANDARD REINSUR-
ANCE AGREEMENT.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), notwithstanding section 536 
of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (7 U.S.C. 1506 
note; Public Law 105–185) and section 148 of 
the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 1506 note; Public Law 106–224), the 
Corporation may renegotiate the financial terms 
and conditions of each Standard Reinsurance 
Agreement— 
‘‘(i) to be effective for the 2011 rein-
surance year beginning July 1, 2010; and 
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‘‘(ii) once during each period of 5 re-
insurance years thereafter. 
‘‘(B) EXCEPTIONS.— 
‘‘(i) 
ADVERSE
CIRCUMSTANCES.— 
Subject to clause (ii), subparagraph (A) 
shall not apply in any case in which the 
approved insurance providers, as a whole, 
experience 
unexpected 
adverse 
cir-
cumstances, as determined by the Sec-
retary. 
‘‘(ii) EFFECT
OF
FEDERAL
LAW 
CHANGES.—If Federal law is enacted after 
the date of enactment of this paragraph 
that requires revisions in the financial 
terms of the Standard Reinsurance Agree-
ment, and changes in the Agreement are 
made on a mandatory basis by the Cor-
poration, the changes shall not be consid-
ered to be a renegotiation of the Agree-
ment for purposes of subparagraph (A). 
‘‘(C) NOTIFICATION
REQUIREMENT.—If 
the Corporation renegotiates a Standard Rein-
surance 
Agreement 
under 
subparagraph 
(A)(iii), the Corporation shall notify the Com-
mittee on Agriculture of the House of Rep-
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resentatives and the Committee on Agriculture, 
Nutrition, and Forestry of the Senate of the re-
negotiation. 
‘‘(D) CONSULTATION.—The approved in-
surance providers may confer with each other 
and collectively with the Corporation during any 
renegotiation under subparagraph (A). 
‘‘(E) 2011 REINSURANCE YEAR.— 
‘‘(i) IN
GENERAL.—As part of the 
Standard Reinsurance Agreement renegoti-
ation 
authorized 
under 
subparagraph 
(A)(i), the Corporation shall consider alter-
native methods to determine reimburse-
ment rates for administrative and oper-
ating costs. 
‘‘(ii) ALTERNATIVE METHODS.—Alter-
natives considered under clause (i) shall in-
clude— 
‘‘(I) methods that— 
‘‘(aa) are graduated and 
base reimbursement rates in a 
State on changes in premiums in 
that State; 
‘‘(bb) are graduated and 
base reimbursement rates in a 
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State on the loss ratio for crop 
insurance for that State; and 
‘‘(cc) are graduated and 
base reimbursement rates on in-
dividual policies on the level of 
total premium for each policy; 
and 
‘‘(II) any other method that 
takes into account current financial 
conditions of the program and ensures 
continued availability of the program 
to producers on a nationwide basis.’’. 
SEC. 12018. CHANGE IN DUE DATE FOR CORPORATION PAY-
MENTS FOR UNDERWRITING GAINS. 
Section 508(k) of the Federal Crop Insurance Act (7 
U.S.C. 1508(k)) (as amended by section 12017) is amend-
ed by adding at the end the following: 
‘‘(9) DUE
DATE
FOR
PAYMENT
OF
UNDER-
WRITING GAINS.—Effective beginning with the 2011 
reinsurance year, the Corporation shall make pay-
ments for underwriting gains under this title on— 
‘‘(A) for the 2011 reinsurance year, Octo-
ber 1, 2012; and 
‘‘(B) for each reinsurance year thereafter, 
October 1 of the following calendar year.’’. 
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SEC. 12019. MALTING BARLEY. 
Section 508(m) of the Federal Crop Insurance Act 
(7 U.S.C. 1508(m)) is amended by adding at the end the 
following: 
‘‘(5) SPECIAL PROVISIONS FOR MALTING BAR-
LEY.—The Corporation shall promulgate special pro-
visions under this subsection specific to malting bar-
ley, taking into consideration any changes in quality 
factors, as required by applicable market condi-
tions.’’. 
SEC. 12020. CROP PRODUCTION ON NATIVE SOD. 
(a) FEDERAL CROP INSURANCE.—Section 508 of the 
Federal Crop Insurance Act (7 U.S.C. 1508) is amended 
by adding at the end the following: 
‘‘(o) CROP PRODUCTION ON NATIVE SOD.— 
‘‘(1) DEFINITION OF NATIVE SOD.—In this sub-
section, the term ‘native sod’ means land— 
‘‘(A) on which the plant cover is composed 
principally of native grasses, grasslike plants, 
forbs, or shrubs suitable for grazing and brows-
ing; and 
‘‘(B) that has never been tilled for the pro-
duction of an annual crop as of the date of en-
actment of this subsection. 
‘‘(2) INELIGIBILITY FOR BENEFITS.— 
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B) and paragraph (3), native sod acre-
age that has been tilled for the production of an 
annual crop after the date of enactment of this 
subsection shall be ineligible during the first 5 
crop years of planting, as determined by the 
Secretary, for benefits under— 
‘‘(i) this title; and 
‘‘(ii) section 196 of the Federal Agri-
culture Improvement and Reform Act of 
1996 (7 U.S.C. 7333). 
‘‘(B) DE MINIMIS ACREAGE EXEMPTION.— 
The Secretary shall exempt areas of 5 acres or 
less from subparagraph (A). 
‘‘(3) APPLICATION.—Paragraph (2) may apply 
to native sod acreage in the Prairie Pothole National 
Priority Area at the election of the Governor of the 
respective State.’’. 
(b) NONINSURED CROP DISASTER ASSISTANCE.— 
Section 196(a) of the Federal Agriculture Improvement 
and Reform Act of 1996 (7 U.S.C. 7333(a)) is amended 
by adding at the end the following: 
‘‘(4) PROGRAM
INELIGIBILITY
RELATING
TO 
CROP PRODUCTION ON NATIVE SOD.— 
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‘‘(A) DEFINITION
OF
NATIVE
SOD.—In 
this paragraph, the term ‘native sod’ means 
land— 
‘‘(i) on which the plant cover is com-
posed principally of native grasses, grass-
like plants, forbs, or shrubs suitable for 
grazing and browsing; and 
‘‘(ii) that has never been tilled for the 
production of an annual crop as of the 
date of enactment of this paragraph. 
‘‘(B) INELIGIBILITY FOR BENEFITS.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii) and subparagraph (C), native sod acre-
age that has been tilled for the production 
of an annual crop after the date of enact-
ment of this paragraph shall be ineligible 
during the first 5 crop years of planting, 
as determined by the Secretary, for bene-
fits under— 
‘‘(I) this section; and 
‘‘(II) the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.). 
‘‘(ii) DE
MINIMIS
ACREAGE
EXEMP-
TION.—The Secretary shall exempt areas 
of 5 acres or less from clause (i). 
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‘‘(C) APPLICATION.—Subparagraph (B) 
may apply to native sod acreage in the Prairie 
Pothole National Priority Area at the election 
of the Governor of the respective State.’’. 
SEC. 12021. INFORMATION MANAGEMENT. 
Section 515 of the Federal Crop Insurance Act (7 
U.S.C. 1515) is amended— 
(a) in subsection (j)(3), by adding before the period 
at the end the following: ‘‘, which shall be subject to com-
petition on a periodic basis, as determined by the Sec-
retary’’; and 
(b) by striking subsection (k) and inserting the fol-
lowing: 
‘‘(k) FUNDING.— 
‘‘(1) INFORMATION
TECHNOLOGY.—To carry 
out subsection (j)(1), the Corporation may use, from 
amounts made available from the insurance fund es-
tablished under section 516(c), not more than 
$15,000,000 for each of fiscal years 2008 through 
2011. 
‘‘(2) DATA MINING.—To carry out subsection 
(j)(2), the Corporation may use, from amounts made 
available from the insurance fund established under 
section 516(c), not more than $4,000,000 for fiscal 
year 2009 and each subsequent fiscal year.’’. 
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SEC. 12022. RESEARCH AND DEVELOPMENT. 
(a) IN GENERAL.—Section 522(b) of the Federal 
Crop Insurance Act (7 U.S.C. 1522(b)) is amended by 
striking paragraphs (1) and (2) and inserting the fol-
lowing: 
‘‘(1) RESEARCH
AND
DEVELOPMENT
PAY-
MENT.— 
‘‘(A) IN GENERAL.—The Corporation shall 
provide a payment to an applicant for research 
and development costs in accordance with this 
subsection. 
‘‘(B) 
REIMBURSEMENT.—An 
applicant 
who submits a policy under section 508(h) shall 
be eligible for the reimbursement of reasonable 
research and development costs directly related 
to the policy if the policy is approved by the 
Board for sale to producers. 
‘‘(2) ADVANCE PAYMENTS.— 
‘‘(A) IN GENERAL.—Subject to the other 
provisions of this paragraph, the Board may 
approve the request of an applicant for advance 
payment of a portion of reasonable research 
and development costs prior to submission and 
approval of the policy by the Board under sec-
tion 508(h). 
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‘‘(B) PROCEDURES.—The Board shall es-
tablish procedures for approving advance pay-
ment of reasonable research and development 
costs to applicants. 
‘‘(C) CONCEPT PROPOSAL.—As a condition 
of eligibility for advance payments, an applicant 
shall submit a concept proposal for the policy 
that the applicant plans to submit to the Board 
under section 508(h), consistent with proce-
dures established by the Board for submissions 
under subparagraph (B), including— 
‘‘(i) a summary of the qualifications 
of the applicant, including any prior con-
cept proposals and submissions to the 
Board under section 508(h) and, if appli-
cable, any work conducted under this sec-
tion; 
‘‘(ii) a projection of total research and 
development costs that the applicant ex-
pects to incur; 
‘‘(iii) a description of the need for the 
policy, the marketability of and expected 
demand for the policy among affected pro-
ducers, and the potential impact of the pol-
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icy on producers and the crop insurance 
delivery system; 
‘‘(iv) a summary of data sources avail-
able to demonstrate that the policy can 
reasonably be developed and actuarially ap-
propriate rates established; and 
‘‘(v) an identification of the risks the 
proposed policy will cover and an expla-
nation of how the identified risks are in-
surable under this title. 
‘‘(D) REVIEW.— 
‘‘(i) EXPERTS.—If the requirements 
of subparagraph (B) and (C) are met, the 
Board may submit a concept proposal de-
scribed in subparagraph (C) to not less 
than 2 independent expert reviewers, 
whose services are appropriate for the type 
of concept proposal submitted, to assess 
the likelihood that the proposed policy 
being developed will result in a viable and 
marketable policy, as determined by the 
Board. 
‘‘(ii) TIMING.—The time frames de-
scribed in subparagraphs (C) and (D) of 
section 508(h)(4) shall apply to the review 
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of concept proposals under this subpara-
graph. 
‘‘(E) APPROVAL.—The Board may approve 
up to 50 percent of the projected total research 
and development costs to be paid in advance to 
an applicant, in accordance with the procedures 
developed by the Board for the making of such 
payments, if, after consideration of the reviewer 
reports described in subparagraph (D) and such 
other information as the Board determines ap-
propriate, the Board determines that— 
‘‘(i) the concept, in good faith, will 
likely result in a viable and marketable pol-
icy consistent with section 508(h); 
‘‘(ii) in the sole opinion of the Board, 
the concept, if developed into a policy and 
approved by the Board, would provide crop 
insurance coverage— 
‘‘(I) in a significantly improved 
form; 
‘‘(II) to a crop or region not tra-
ditionally served by the Federal crop 
insurance program; or 
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‘‘(III) in a form that addresses a 
recognized flaw or problem in the pro-
gram; 
‘‘(iii) the applicant agrees to provide 
such reports as the Corporation determines 
are necessary to monitor the development 
effort; 
‘‘(iv) the proposed budget and time-
table are reasonable; and 
‘‘(v) the concept proposal meets any 
other requirements that the Board deter-
mines appropriate. 
‘‘(F) SUBMISSION
OF
POLICY.—If the 
Board approves an advanced payment under 
subparagraph (E), the Board shall establish a 
date by which the applicant shall present a sub-
mission in compliance with section 508(h) (in-
cluding the procedures implemented under that 
section) to the Board for approval. 
‘‘(G) FINAL PAYMENT.— 
‘‘(i) APPROVED POLICIES.—If a policy 
is submitted under subparagraph (F) and 
approved by the Board under section 
508(h) and the procedures established by 
the Board (including procedures estab-
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lished under subparagraph (B)), the appli-
cant shall be eligible for a payment of rea-
sonable research and development costs in 
the same manner as policies reimbursed 
under paragraph (1)(B), less any pay-
ments made pursuant to subparagraph 
(E). 
‘‘(ii) POLICIES NOT APPROVED.—If a 
policy is submitted under subparagraph 
(F) and is not approved by the Board 
under section 508(h), the Corporation 
shall— 
‘‘(I) not seek a refund of any 
payments made in accordance with 
this paragraph; and 
‘‘(II) not make any further re-
search and development cost pay-
ments associated with the submission 
of the policy under this paragraph. 
‘‘(H) POLICY NOT SUBMITTED.—If an ap-
plicant receives an advance payment and fails 
to fulfill the obligation of the applicant to the 
Board by not submitting a completed submis-
sion without just cause and in accordance with 
the procedures established under subparagraph 
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(B)), including notice and reasonable oppor-
tunity to respond, as determined by the Board, 
the applicant shall return to the Board the 
amount of the advance plus interest. 
‘‘(I) REPEATED SUBMISSIONS.—The Board 
may prohibit advance payments to applicants 
who have submitted— 
‘‘(i) a concept proposal or submission 
that did not result in a marketable prod-
uct; or 
‘‘(ii) a concept proposal or submission 
of poor quality. 
‘‘(J) CONTINUED
ELIGIBILITY.—A deter-
mination that an applicant is not eligible for 
advance payments under this paragraph shall 
not prevent an applicant from reimbursement 
under paragraph (1)(B).’’. 
(b) CONFORMING AMENDMENTS.—Section 522(b) of 
the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is 
amended— 
(1) in paragraph (3), by striking ‘‘or (2)’’; and 
(2) in paragraph (4)(A), by striking ‘‘and 
(2)’’.’’ 
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SEC. 12023. CONTRACTS FOR ADDITIONAL POLICIES AND 
STUDIES. 
Section 522(c) of the Federal Crop Insurance Act (7 
U.S.C. 1522) is amended— 
(1) by redesignating paragraph (10) as para-
graph (17); and 
(2) by inserting after paragraph (9) the fol-
lowing: 
‘‘(10) CONTRACTS FOR ORGANIC PRODUCTION 
COVERAGE IMPROVEMENTS.— 
‘‘(A) CONTRACTS
REQUIRED.—Not later 
than 180 days after the date of enactment of 
the Food, Conservation, and Energy Act of 
2008, the Corporation shall enter into 1 or 
more contracts for the development of improve-
ments in Federal crop insurance policies cov-
ering crops produced in compliance with stand-
ards issued by the Department of Agriculture 
under the national organic program established 
under the Organic Foods Production Act of 
1990 (7 U.S.C. 6501 et seq.). 
‘‘(B) REVIEW
OF
UNDERWRITING
RISK 
AND LOSS EXPERIENCE.— 
‘‘(i) REVIEW REQUIRED.— 
‘‘(I) IN
GENERAL.—A contract 
under subparagraph (A) shall include 
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a review of the underwriting, risk, and 
loss experience of organic crops cov-
ered by the Corporation, as compared 
with the same crops produced in the 
same counties and during the same 
crop years using nonorganic methods. 
‘‘(II) REQUIREMENTS.—The re-
view shall— 
‘‘(aa) to the maximum ex-
tent practicable, be designed to 
allow the Corporation to deter-
mine whether significant, con-
sistent, or systemic variations in 
loss history exist between organic 
and nonorganic production; 
‘‘(bb) include the widest 
available range of data collected 
by the Secretary and other out-
side sources of information; and 
‘‘(cc) not be limited to loss 
history under existing crop insur-
ance policies. 
‘‘(ii) EFFECT
ON
PREMIUM
SUR-
CHARGE.—Unless the review under this 
subparagraph documents the existence of 
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significant, consistent, and systemic vari-
ations in loss history between organic and 
nonorganic crops, either collectively or on 
an individual crop basis, the Corporation 
shall eliminate or reduce the premium sur-
charge that the Corporation charges for 
coverage for organic crops, as determined 
in accordance with the results. 
‘‘(iii) ANNUAL UPDATES.—Beginning 
with the 2009 crop year, the review under 
this subparagraph shall be updated on an 
annual basis as data is accumulated by the 
Secretary and other sources, so that the 
Corporation may make determinations re-
garding adjustments to the surcharge in a 
timely manner as quickly as evolving prac-
tices and data trends allow. 
‘‘(C) ADDITIONAL PRICE ELECTION.— 
‘‘(i) IN GENERAL.—A contract under 
subparagraph (A) shall include the devel-
opment of a procedure, including any asso-
ciated changes in policy terms or materials 
required for implementation of the proce-
dure, to offer producers of organic crops 
an additional price election that reflects ac-
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tual prices received by organic producers 
for crops from the field (including appro-
priate retail and wholesale prices), as es-
tablished using data collected and main-
tained by the Secretary or from other 
sources. 
‘‘(ii) TIMING.—The development of 
the procedure shall be completed in a time-
ly manner to allow the Corporation to 
begin offering the additional price election 
for organic crops with sufficient data for 
the 2010 crop year. 
‘‘(iii) 
EXPANSION.—The 
procedure 
shall be expanded as quickly as practicable 
as additional data on prices of organic 
crops collected by the Secretary and other 
sources of information becomes available, 
with a goal of applying this procedure to 
all organic crops not later than the fifth 
full crop year that begins after the date of 
enactment of Food, Conservation, and En-
ergy Act of 2008. 
‘‘(D) REPORTING REQUIREMENTS.— 
‘‘(i) IN
GENERAL.—The Corporation 
shall submit to the Committee on Agri-
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culture of the House of Representatives 
and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate an annual 
report on progress made in developing and 
improving Federal crop insurance for or-
ganic crops, including— 
‘‘(I) the numbers and varieties of 
organic crops insured; 
‘‘(II) the development of new in-
surance approaches; and 
‘‘(III) the progress of imple-
menting the initiatives required under 
this paragraph, including the rate at 
which additional price elections are 
adopted for organic crops. 
‘‘(ii) RECOMMENDATIONS.—The re-
port shall include such recommendations 
as the Corporation considers appropriate 
to improve Federal crop insurance cov-
erage for organic crops. 
‘‘(11) ENERGY CROP INSURANCE POLICY.— 
‘‘(A) DEFINITION OF DEDICATED ENERGY 
CROP.—In this subsection, the term ‘dedicated 
energy crop’ means an annual or perennial crop 
that— 
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‘‘(i) is grown expressly for the purpose 
of producing a feedstock for renewable 
biofuel, renewable electricity, or biobased 
products; and 
‘‘(ii) is not typically used for food, 
feed, or fiber. 
‘‘(B) AUTHORITY.—The Corporation shall 
offer to enter into 1 or more contracts with 
qualified entities to carry out research and de-
velopment regarding a policy to insure dedi-
cated energy crops. 
‘‘(C) RESEARCH AND DEVELOPMENT.—Re-
search and development described in subpara-
graph (B) shall evaluate the effectiveness of 
risk management tools for the production of 
dedicated energy crops, including policies and 
plans of insurance that— 
‘‘(i) are based on market prices and 
yields; 
‘‘(ii) to the extent that insufficient 
data exist to develop a policy based on 
market prices and yields, evaluate the poli-
cies and plans of insurance based on the 
use of weather or rainfall indices to protect 
the interests of crop producers; and 
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‘‘(iii) provide protection for production 
or revenue losses, or both. 
‘‘(12) AQUACULTURE INSURANCE POLICY.— 
‘‘(A) DEFINITION OF AQUACULTURE.—In 
this subsection: 
‘‘(i) IN GENERAL.—The term ‘aqua-
culture’ 
means 
the 
propagation 
and 
rearing of aquatic species in controlled or 
selected environments, including shellfish 
cultivation on grants or leased bottom and 
ocean ranching. 
‘‘(ii) EXCLUSION.—The term ‘aqua-
culture’ does not include the private ocean 
ranching of Pacific salmon for profit in 
any State in which private ocean ranching 
of Pacific salmon is prohibited by any law 
(including regulations). 
‘‘(B) AUTHORITY.— 
‘‘(i) IN GENERAL.—As soon as prac-
ticable after the date of enactment of the 
Food, Conservation, and Energy Act of 
2008, the Corporation shall offer to enter 
into 3 or more contracts with qualified en-
tities to carry out research and develop-
ment regarding a policy to insure the pro-
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duction of aquacultural species in aqua-
culture operations. 
‘‘(ii) BIVALVE SPECIES.—At least 1 of 
the contracts described in clause (i) shall 
address insurance of bivalve species, in-
cluding— 
‘‘(I) 
American 
oysters 
(crassostrea virginica); 
‘‘(II) hard clams (mercenaria 
mercenaria); 
‘‘(III) Pacific oysters (crassostrea 
gigas); 
‘‘(IV) 
Manila 
clams 
(tapes 
phillipinnarium); or 
‘‘(V) 
blue 
mussels 
(mytilus 
edulis). 
‘‘(iii) 
FRESHWATER
SPECIES.—At 
least 1 of the contracts described in clause 
(i) shall address insurance of freshwater 
species, including— 
‘‘(I) catfish (icataluridae); 
‘‘(II) 
rainbow 
trout 
(oncorhynchus mykiss); 
‘‘(III) 
largemouth 
bass 
(micropterus salmoides); 
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‘‘(IV) 
striped 
bass 
(morone 
saxatilis); 
‘‘(V) bream (abramis brama); 
‘‘(VI) shrimp (penaeus); or 
‘‘(VII) 
tilapia 
(oreochromis 
niloticus). 
‘‘(iv) SALTWATER SPECIES.—At least 
1 of the contracts described in clause (i) 
shall address insurance of saltwater spe-
cies, including— 
‘‘(I) 
Atlantic 
salmon 
(salmo 
salar); or 
‘‘(II) shrimp (penaeus). 
‘‘(C) RESEARCH AND DEVELOPMENT.—Re-
search and development described in subpara-
graph (B) shall evaluate the effectiveness of 
policies and plans of insurance for the produc-
tion of aquacultural species in aquaculture op-
erations, including policies and plans of insur-
ance that— 
‘‘(i) are based on market prices and 
yields; 
‘‘(ii) to the extent that insufficient 
data exist to develop a policy based on 
market prices and yields, evaluate how best 
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to incorporate insuring of production of 
aquacultural species in aquaculture oper-
ations into existing policies covering ad-
justed gross revenue; and 
‘‘(iii) provide protection for production 
or revenue losses, or both. 
‘‘(13) POULTRY INSURANCE POLICY.— 
‘‘(A) DEFINITION OF POULTRY.—In this 
paragraph, the term ‘poultry’ has the meaning 
given the term in section 2(a) of the Packers 
and Stockyards Act, 1921 (7 U.S.C. 182(a)). 
‘‘(B) AUTHORITY.—The Corporation shall 
offer to enter into 1 or more contracts with 
qualified entities to carry out research and de-
velopment regarding a policy to insure commer-
cial poultry production. 
‘‘(C) RESEARCH AND DEVELOPMENT.—Re-
search and development described in subpara-
graph (B) shall evaluate the effectiveness of 
risk management tools for the production of 
poultry, including policies and plans of insur-
ance that provide protection for production or 
revenue losses, or both, while the poultry is in 
production. 
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‘‘(14) APIARY
POLICIES.—The Corporation 
shall offer to enter into a contract with a qualified 
entity to carry out research and development regard-
ing insurance policies that cover loss of bees. 
‘‘(15) ADJUSTED
GROSS
REVENUE
POLICIES 
FOR
BEGINNING
PRODUCERS.—The Corporation 
shall offer to enter into a contract with a qualified 
entity to carry out research and development into 
needed modifications of adjusted gross revenue in-
surance policies, consistent with principles of actu-
arial sufficiency, to permit coverage for beginning 
producers with no previous production history, in-
cluding permitting those producers to have produc-
tion and premium rates based on information with 
similar farming operations. 
‘‘(16) SKIPROW CROPPING PRACTICES.— 
‘‘(A) IN GENERAL.—The Corporation shall 
offer to enter into a contract with a qualified 
entity to carry out research into needed modi-
fications of policies to insure corn and sorghum 
produced in the Central Great Plains (as deter-
mined by the Agricultural Research Service) 
through use of skiprow cropping practices. 
‘‘(B) RESEARCH.—Research described in 
subparagraph (A) shall— 
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‘‘(i) 
review 
existing 
research 
on 
skiprow cropping practices and actual pro-
duction history of producers using skiprow 
cropping practices; and 
‘‘(ii) evaluate the effectiveness of risk 
management tools for producers using 
skiprow cropping practices, including— 
‘‘(I) the appropriateness of rules 
in existence as of the date of enact-
ment of this paragraph relating to the 
determination of acreage planted in 
skiprow patterns; and 
‘‘(II) whether policies for crops 
produced through skiprow cropping 
practices reflect actual production ca-
pabilities.’’. 
SEC. 12024. FUNDING FROM INSURANCE FUND. 
Section 522(e) of the Federal Crop Insurance Act (7 
U.S.C. 1522(e)) is amended— 
(1) 
in 
paragraph 
(1), 
by 
striking 
‘‘$10,000,000’’ and all that follows through the end 
of the paragraph and inserting ‘‘$7,500,000 for fis-
cal year 2008 and each subsequent fiscal year’’; 
(2) 
in 
paragraph 
(2)(A), 
by 
striking 
‘‘$20,000,000 for’’ and all that follows through 
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‘‘year 2004’’ and inserting ‘‘$12,500,000 for fiscal 
year 2008’’; and 
(3) in paragraph (3), by striking ‘‘the Corpora-
tion may use’’ and all that follows through the end 
of the paragraph and inserting ‘‘the Corporation 
may use— 
‘‘(A) not more than $5,000,000 for each 
fiscal year to improve program integrity, includ-
ing by— 
‘‘(i) 
increasing 
compliance-related 
training; 
‘‘(ii) improving analysis tools and 
technology regarding compliance; 
‘‘(iii) use of information technology, 
as determined by the Corporation; and 
‘‘(iv) identifying and using innovative 
compliance strategies; and 
‘‘(B) any excess amounts to carry out 
other activities authorized under this section.’’. 
SEC. 12025. PILOT PROGRAMS. 
(a) IN GENERAL.—Section 523 of the Federal Crop 
Insurance Act (7 U.S.C. 1523) is amended by adding at 
the end the following: 
‘‘(f) CAMELINA PILOT PROGRAM.— 
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‘‘(1) IN GENERAL.—The Corporation shall es-
tablish a pilot program under which producers or 
processors of camelina may propose for approval by 
the Board policies or plans of insurance for 
camelina, in accordance with section 508(h). 
‘‘(2) DETERMINATION BY BOARD.—The Board 
shall approve a policy or plan of insurance proposed 
under paragraph (1) if, as determined by the Board, 
the policy or plan of insurance— 
‘‘(A) protects the interests of producers; 
‘‘(B) is actuarially sound; and 
‘‘(C) meets the requirements of this title. 
‘‘(3) TIMEFRAME.—The Corporation shall com-
mence the camelina insurance pilot program as soon 
as practicable after the date of enactment of this 
subsection. 
‘‘(g) SESAME INSURANCE PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—In addition to any other 
authority of the Corporation, the Corporation shall 
establish and carry out a pilot program under which 
a producer of nondehiscent sesame under contract 
may elect to obtain multiperil crop insurance, as de-
termined by the Corporation. 
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‘‘(2) TERMS AND CONDITIONS.—The multiperil 
crop insurance offered under the sesame insurance 
pilot program shall— 
‘‘(A) be offered through reinsurance ar-
rangements with private insurance companies; 
‘‘(B) be actuarially sound; and 
‘‘(C) require the payment of premiums and 
administrative fees by a producer obtaining the 
insurance. 
‘‘(3) LOCATION.—The sesame insurance pilot 
program shall be carried out only in the State of 
Texas. 
‘‘(4) DURATION.—The Corporation shall com-
mence the sesame insurance pilot program as soon 
as practicable after the date of the enactment of this 
subsection. 
‘‘(h) GRASS SEED INSURANCE PILOT PROGRAM.— 
‘‘(1) IN GENERAL.—In addition to any other 
authority of the Corporation, the Corporation shall 
establish and carry out a grass seed pilot program 
under which a producer of Kentucky bluegrass or 
perennial rye grass under contract may elect to ob-
tain multiperil crop insurance, as determined by the 
Corporation. 
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‘‘(2) TERMS AND CONDITIONS.—The multiperil 
crop insurance offered under the grass seed insur-
ance pilot program shall— 
‘‘(A) be offered through reinsurance ar-
rangements with private insurance companies; 
‘‘(B) be actuarially sound; and 
‘‘(C) require the payment of premiums and 
administrative fees by a producer obtaining the 
insurance. 
‘‘(3) LOCATION.—The grass seed insurance 
pilot program shall be carried out only in each of the 
States of Minnesota and North Dakota. 
‘‘(4) DURATION.—The Corporation shall com-
mence the grass seed insurance pilot program as 
soon as practicable after the date of the enactment 
of this subsection.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
196(a)(2)(B) of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333(a)(2)(B)) is amended 
by adding ‘‘camelina,’’ after ‘‘sea oats,’’. 
SEC. 12026. RISK MANAGEMENT EDUCATION FOR BEGIN-
NING FARMERS OR RANCHERS. 
Section 524(a) of the Federal Crop Insurance Act (7 
U.S.C. 1524(a)) is amended— 
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(1) in paragraph (1), by striking ‘‘paragraph 
(4)’’ and inserting ‘‘paragraph (5)’’; 
(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by inserting after paragraph (3) the fol-
lowing: 
‘‘(4) REQUIREMENTS.—In carrying out the pro-
grams established under paragraphs (2) and (3), the 
Secretary shall place special emphasis on risk man-
agement strategies, education, and outreach specifi-
cally targeted at— 
‘‘(A) beginning farmers or ranchers; 
‘‘(B) legal immigrant farmers or ranchers 
that are attempting to become established pro-
ducers in the United States; 
‘‘(C) socially disadvantaged farmers or 
ranchers; 
‘‘(D) farmers or ranchers that— 
‘‘(i) are preparing to retire; and 
‘‘(ii) are using transition strategies to 
help new farmers or ranchers get started; 
and 
‘‘(E) new or established farmers or ranch-
ers that are converting production and mar-
keting systems to pursue new markets.’’. 
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SEC. 12027. COVERAGE FOR AQUACULTURE UNDER NON-
INSURED CROP ASSISTANCE PROGRAM. 
Section 196(c)(2) of the Federal Agriculture Im-
provement and Reform Act of 1996 (7 U.S.C. 7333(c)(2)) 
is amended— 
(1) by striking ‘‘On making’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—On making’’; and 
(2) by adding at the end the following: 
‘‘(B) 
AQUACULTURE
PRODUCERS.—On 
making a determination described in subsection 
(a)(3) for aquaculture producers, the Secretary 
shall provide assistance under this section to 
aquaculture producers from all losses related to 
drought.’’. 
SEC. 12028. INCREASE IN SERVICE FEES FOR NONINSURED 
CROP ASSISTANCE PROGRAM. 
Section 196(k)(1) of the Federal Agriculture Im-
provement and Reform Act of 1996 (7 U.S.C. 7333(k)(1)) 
is amended— 
(1) in subparagraph (A), by striking ‘‘$100’’ 
and inserting ‘‘$250’’; and 
(2) in subparagraph (B)— 
(A) by striking ‘‘$300’’ and inserting 
‘‘$750’’; and 
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(B) by striking ‘‘$900’’ and inserting 
‘‘$1,875’’. 
SEC. 12029. DETERMINATION OF CERTAIN SWEET POTATO 
PRODUCTION. 
Section 9001(d) of the U.S. Troop Readiness, Vet-
erans’ Care, Katrina Recovery, and Iraq Accountability 
Appropriations Act, 2007 (Public Law 110–28; 121 Stat. 
211) is amended— 
(1) by redesignating paragraph (8) as para-
graph (9); and 
(2) by inserting after paragraph (7) the fol-
lowing: 
‘‘(8) SWEET POTATOES.— 
‘‘(A) DATA.—In the case of sweet pota-
toes, any data obtained under a pilot program 
carried out by the Risk Management Agency 
shall not be considered for the purpose of deter-
mining the quantity of production under the 
crop disaster assistance program established 
under this section. 
‘‘(B) EXTENSION OF DEADLINE.—If this 
paragraph is not implemented before the sign- 
up deadline for the crop disaster assistance pro-
gram established under this section, the Sec-
retary shall extend the deadline for producers of 
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sweet potatoes to permit sign-up for the pro-
gram in accordance with this paragraph.’’. 
SEC. 12030. DECLINING YIELD REPORT. 
Not later than 180 days after the date of enactment 
of this Act, 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 a report containing details about activities and ad-
ministrative options of the Federal Crop Insurance Cor-
poration and Risk Management Agency that address 
issues relating to— 
(1) declining yields on the actual production 
histories of producers; and 
(2) declining and variable yields for perennial 
crops, including pecans. 
SEC. 12031. DEFINITION OF BASIC UNIT. 
The Secretary shall not modify the definition of 
‘‘basic unit’’ in accordance with the proposed regulations 
entitled ‘‘Common Crop Insurance Regulations’’ (72 Fed. 
Reg. 28895; relating to common crop insurance regula-
tions) or any successor regulation. 
SEC. 12032. CROP INSURANCE MEDIATION. 
Section 275 of the Department of Agriculture Reor-
ganization Act of 1994 (7 U.S.C. 6995) is amended— 
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(1) by striking ‘‘If an officer’’ and inserting the 
following: 
‘‘(a) IN GENERAL.—If an officer’’; 
(2) by striking ‘‘With respect to’’ and inserting 
the following: 
‘‘(b) FARM SERVICE AGENCY.—With respect to’’; 
(3) by striking ‘‘If a mediation’’; and inserting 
the following: 
‘‘(c) MEDIATION.—If a mediation’’; and 
(4) in subsection (c) (as so designated)— 
(A) by striking ‘‘participant shall be of-
fered’’ and inserting ‘‘participant shall— 
‘‘(1) be offered’’; and 
(B) by striking the period at the end and 
inserting the following: ‘‘; and 
‘‘(2) to the maximum extent practicable, be al-
lowed to use both informal agency review and medi-
ation to resolve disputes under that title.’’. 
SEC. 12033. SUPPLEMENTAL AGRICULTURAL DISASTER AS-
SISTANCE. 
(a) IN GENERAL.—The Federal Crop Insurance Act 
(7 U.S.C. 1501 et seq.) is amended by adding at the end 
the following: 
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‘‘Subtitle B—Supplemental 
Agricultural Disaster Assistance 
‘‘SEC. 531. SUPPLEMENTAL AGRICULTURAL DISASTER AS-
SISTANCE. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ACTUAL PRODUCTION HISTORY YIELD.— 
The term ‘actual production history yield’ means the 
weighted average of the actual production history for 
each insurable commodity or noninsurable com-
modity, as calculated under subtitle A or the non-
insured crop disaster assistance program, respec-
tively. 
‘‘(2) ADJUSTED ACTUAL PRODUCTION HISTORY 
YIELD.—The term ‘adjusted actual production his-
tory yield’ means— 
‘‘(A) in the case of an eligible producer on 
a farm that has at least 4 years of actual pro-
duction history yields for an insurable com-
modity that are established other than pursuant 
to section 508(g)(4)(B), the actual production 
history for the eligible producer without regard 
to any yields established under that section; 
‘‘(B) in the case of an eligible producer on 
a farm that has less than 4 years of actual pro-
duction history yields for an insurable com-
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gram yield as calculated without including the 
lowest of the replacement yields; and 
‘‘(C) in all other cases, the production his-
tory of the eligible producer on the farm under 
the noninsured crop disaster assistance pro-
gram. 
‘‘(4) COUNTER-CYCLICAL
PROGRAM
PAYMENT 
YIELD.—The term ‘counter-cyclical program pay-
ment yield’ means the weighted average payment 
yield established under section 1102 of the Farm Se-
curity and Rural Investment Act of 2002 (7 U.S.C. 
7912), section 1102 of the Food, Conservation, and 
Energy Act of 2008, or a successor section. 
‘‘(5) DISASTER COUNTY.— 
‘‘(A) IN
GENERAL.—The term ‘disaster 
county’ means a county included in the geo-
graphic area covered by a qualifying natural 
disaster declaration. 
‘‘(B) 
INCLUSION.—The 
term 
‘disaster 
county’ includes— 
‘‘(i) a county contiguous to a county 
described in subparagraph (A); and 
‘‘(ii) any farm in which, during a cal-
endar year, the total loss of production of 
the farm relating to weather is greater 
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than 50 percent of the normal production 
of the farm, as determined by the Sec-
retary. 
‘‘(6) ELIGIBLE PRODUCER ON A FARM.— 
‘‘(A) IN GENERAL.—The term ‘eligible pro-
ducer on a farm’ means an individual or entity 
described in subparagraph (B) that, as deter-
mined by the Secretary, assumes the production 
and market risks associated with the agricul-
tural production of crops or livestock. 
‘‘(B) DESCRIPTION.—An individual or en-
tity referred to in subparagraph (A) is— 
‘‘(i) a citizen of the United States; 
‘‘(ii) a resident alien; 
‘‘(iii) a partnership of citizens of the 
United States; or 
‘‘(iv) a corporation, limited liability 
corporation, or other farm organizational 
structure organized under State law. 
‘‘(7) FARM.— 
‘‘(A) IN
GENERAL.—The term ‘farm’ 
means, in relation to an eligible producer on a 
farm, the sum of all crop acreage in all counties 
that is planted or intended to be planted for 
harvest by the eligible producer. 
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‘‘(B) AQUACULTURE.—In the case of 
aquaculture, the term ‘farm’ means, in relation 
to an eligible producer on a farm, all fish being 
produced in all counties that are intended to be 
harvested for sale by the eligible producer. 
‘‘(C) HONEY.—In the case of honey, the 
term ‘farm’ means, in relation to an eligible 
producer on a farm, all bees and beehives in all 
counties that are intended to be harvested for 
a honey crop by the eligible producer. 
‘‘(8) FARM-RAISED
FISH.—The term ‘farm- 
raised fish’ means any aquatic species that is propa-
gated and reared in a controlled environment. 
‘‘(9) INSURABLE COMMODITY.—The term ‘in-
surable commodity’ means an agricultural com-
modity (excluding livestock) for which the producer 
on a farm is eligible to obtain a policy or plan of in-
surance under subtitle A. 
‘‘(10) LIVESTOCK.—The term ‘livestock’ in-
cludes— 
‘‘(A) cattle (including dairy cattle); 
‘‘(B) bison; 
‘‘(C) poultry; 
‘‘(D) sheep; 
‘‘(E) swine; 
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‘‘(F) horses; and 
‘‘(G) other livestock, as determined by the 
Secretary. 
‘‘(11) NONINSURABLE COMMODITY.—The term 
‘noninsurable commodity’ means a crop for which 
the eligible producers on a farm are eligible to ob-
tain assistance under the noninsured crop assistance 
program. 
‘‘(12) NONINSURED
CROP
ASSISTANCE
PRO-
GRAM.—The term ‘noninsured crop assistance pro-
gram’ means the program carried out under section 
196 of the Federal Agriculture Improvement and 
Reform Act of 1996 (7 U.S.C. 7333). 
‘‘(13) QUALIFYING
NATURAL
DISASTER
DEC-
LARATION.—The term ‘qualifying natural disaster 
declaration’ means a natural disaster declared by the 
Secretary for production losses under section 321(a) 
of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1961(a)). 
‘‘(14) 
SECRETARY.—The 
term 
‘Secretary’ 
means the Secretary of Agriculture. 
‘‘(15) SOCIALLY DISADVANTAGED FARMER OR 
RANCHER.—The term ‘socially disadvantaged farmer 
or rancher’ has the meaning given the term in sec-
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tion 2501(e) of the Food, Agriculture, Conservation, 
and Trade Act of 1990 (7 U.S.C. 2279(e)). 
‘‘(16) STATE.—The term ‘State’ means— 
‘‘(A) a State; 
‘‘(B) the District of Columbia; 
‘‘(C) the Commonwealth of Puerto Rico; 
and 
‘‘(D) any other territory or possession of 
the United States. 
‘‘(17) TRUST FUND.—The term ‘Trust Fund’ 
means the Agricultural Disaster Relief Trust Fund 
established under section 902 of the Trade Act of 
1974. 
‘‘(18) UNITED
STATES.—The term ‘United 
States’ when used in a geographical sense, means all 
of the States. 
‘‘(b) SUPPLEMENTAL REVENUE ASSISTANCE PAY-
MENTS.— 
‘‘(1) IN
GENERAL.—The Secretary shall use 
such sums as are necessary from the Trust Fund to 
make crop disaster assistance payments to eligible 
producers on farms in disaster counties that have in-
curred crop production losses or crop quality losses, 
or both, during the crop year. 
‘‘(2) AMOUNT.— 
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‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Secretary shall provide crop dis-
aster assistance payments under this section to 
an eligible producer on a farm in an amount 
equal to 60 percent of the difference between— 
‘‘(i) the disaster assistance program 
guarantee, as described in paragraph (3); 
and 
‘‘(ii) the total farm revenue for a 
farm, as described in paragraph (4). 
‘‘(B) LIMITATION.—The disaster assist-
ance program guarantee for a crop used to cal-
culate the payments for a farm under subpara-
graph (A)(i) may not be greater than 90 per-
cent of the sum of the expected revenue, as de-
scribed in paragraph (5) for each of the crops 
on a farm, as determined by the Secretary. 
‘‘(3) SUPPLEMENTAL
REVENUE
ASSISTANCE 
PROGRAM GUARANTEE.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, the supplemental 
assistance program guarantee shall be the sum 
obtained by adding— 
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‘‘(i) for each insurable commodity on 
the farm, 115 percent of the product ob-
tained by multiplying— 
‘‘(I) a payment rate for the com-
modity that is equal to the price elec-
tion for the commodity elected by the 
eligible producer; 
‘‘(II) the payment acres for the 
commodity that is equal to the num-
ber of acres planted, or prevented 
from being planted, to the commodity; 
‘‘(III) the payment yield for the 
commodity that is equal to the per-
centage of the crop insurance yield 
elected by the producer of the higher 
of— 
‘‘(aa) the adjusted actual 
production history yield; or 
‘‘(bb) 
the 
counter-cyclical 
program payment yield for each 
crop; and 
‘‘(ii) for each noninsurable commodity 
on a farm, 120 percent of the product ob-
tained by multiplying— 
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‘‘(I) a payment rate for the com-
modity that is equal to 100 percent of 
the noninsured crop assistance pro-
gram established price for the com-
modity; 
‘‘(II) the payment acres for the 
commodity that is equal to the num-
ber of acres planted, or prevented 
from being planted, to the commodity; 
and 
‘‘(III) the payment yield for the 
commodity that is equal to the higher 
of— 
‘‘(aa) 
the 
adjusted 
non-
insured crop assistance program 
yield guarantee; or 
‘‘(bb) 
the 
counter-cyclical 
program payment yield for each 
crop. 
‘‘(B) 
ADJUSTMENT
INSURANCE
GUAR-
ANTEE.—Notwithstanding subparagraph (A), in 
the case of an insurable commodity for which a 
plan of insurance provides for an adjustment in 
the guarantee, such as in the case of prevented 
planting, the adjusted insurance guarantee shall 
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be the basis for determining the disaster assist-
ance program guarantee for the insurable com-
modity. 
‘‘(C) ADJUSTED
ASSISTANCE
LEVEL.— 
Notwithstanding subparagraph (A), in the case 
of a noninsurable commodity for which the non-
insured crop assistance program provides for an 
adjustment in the level of assistance, such as in 
the case of unharvested crops, the adjusted as-
sistance level shall be the basis for determining 
the disaster assistance program guarantee for 
the noninsurable commodity. 
‘‘(D) EQUITABLE TREATMENT FOR NON- 
YIELD BASED POLICIES.—The Secretary shall 
establish equitable treatment for non-yield 
based policies and plans of insurance, such as 
the Adjusted Gross Revenue Lite insurance pro-
gram. 
‘‘(4) FARM REVENUE.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the total farm revenue for a farm, 
shall equal the sum obtained by adding— 
‘‘(i) the estimated actual value for 
each crop produced on a farm by using the 
product obtained by multiplying— 
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‘‘(I) the actual crop acreage har-
vested by an eligible producer on a 
farm; 
‘‘(II) the estimated actual yield 
of the crop production; and 
‘‘(III) subject to subparagraphs 
(B) and (C), to the extent practicable, 
the national average market price re-
ceived for the marketing year, as de-
termined by the Secretary; 
‘‘(ii) 15 percent of amount of any di-
rect payments made to the producer under 
sections 1103 and 1303 of the Food, Con-
servation, and Energy Act of 2008 or suc-
cessor sections; 
‘‘(iii) the total amount of any counter- 
cyclical payments made to the producer 
under sections 1104 and 1304 of the Food, 
Conservation, and Energy Act of 2008 or 
successor sections or of any average crop 
revenue election payments made to the 
producer under section 1105 of that Act; 
‘‘(iv) the total amount of any loan de-
ficiency payments, marketing loan gains, 
and marketing certificate gains made to 
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the producer under subtitles B and C of 
the Food, Conservation, and Energy Act of 
2008 or successor subtitles; 
‘‘(v) the amount of payments for pre-
vented planting on a farm; 
‘‘(vi) the amount of crop insurance in-
demnities received by an eligible producer 
on a farm for each crop on a farm; 
‘‘(vii) the amount of payments an eli-
gible producer on a farm received under 
the noninsured crop assistance program for 
each crop on a farm; and 
‘‘(viii) the value of any other natural 
disaster assistance payments provided by 
the Federal Government to an eligible pro-
ducer on a farm for each crop on a farm 
for the same loss for which the eligible pro-
ducer is seeking assistance. 
‘‘(B) ADJUSTMENT.—The Secretary shall 
adjust the average market price received by the 
eligible producer on a farm— 
‘‘(i) to reflect the average quality dis-
counts applied to the local or regional mar-
ket price of a crop or mechanically har-
vested forage due to a reduction in the in-
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trinsic characteristics of the production re-
sulting from adverse weather, as deter-
mined annually by the State office of the 
Farm Service Agency; and 
‘‘(ii) to account for a crop the value of 
which is reduced due to excess moisture re-
sulting from a disaster-related condition. 
‘‘(C) MAXIMUM
AMOUNT
FOR
CERTAIN 
CROPS.—With respect to a crop for which an el-
igible producer on a farm receives assistance 
under the noninsured crop assistance program, 
the national average market price received dur-
ing the marketing year shall be an amount not 
more than 100 percent of the price of the crop 
established under the noninsured crop assist-
ance program. 
‘‘(5) EXPECTED REVENUE.—The expected rev-
enue for each crop on a farm shall equal the sum 
obtained by adding— 
‘‘(A) the product obtained by multi-
plying— 
‘‘(i) the greatest of— 
‘‘(I) the adjusted actual produc-
tion history yield of the eligible pro-
ducer on a farm; and 
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‘‘(II) the counter-cyclical pro-
gram payment yield; 
‘‘(ii) the acreage planted or prevented 
from being planted for each crop; and 
‘‘(iii) 100 percent of the insurance 
price guarantee; and 
‘‘(B) the product obtained by multi-
plying— 
‘‘(i) 100 percent of the adjusted non-
insured crop assistance program yield; and 
‘‘(ii) 100 percent of the noninsured 
crop assistance program price for each of 
the crops on a farm. 
‘‘(c) LIVESTOCK INDEMNITY PAYMENTS.— 
‘‘(1) PAYMENTS.—The Secretary shall use such 
sums as are necessary from the Trust Fund to make 
livestock indemnity payments to eligible producers 
on farms that have incurred livestock death losses in 
excess of the normal mortality due to adverse weath-
er, as determined by the Secretary, during the cal-
endar year, including losses due to hurricanes, 
floods, blizzards, disease, wildfires, extreme heat, 
and extreme cold. 
‘‘(2) PAYMENT RATES.—Indemnity payments to 
an eligible producer on a farm under paragraph (1) 
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shall be made at a rate of 75 percent of the market 
value of the applicable livestock on the day before 
the date of death of the livestock, as determined by 
the Secretary. 
‘‘(d) LIVESTOCK FORAGE DISASTER PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) COVERED LIVESTOCK.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the term ‘covered live-
stock’ means livestock of an eligible live-
stock producer that, during the 60 days 
prior to the beginning date of a qualifying 
drought or fire condition, as determined by 
the Secretary, the eligible livestock pro-
ducer— 
‘‘(I) owned; 
‘‘(II) leased; 
‘‘(III) purchased; 
‘‘(IV) entered into a contract to 
purchase; 
‘‘(V) is a contract grower; or 
‘‘(VI) sold or otherwise disposed 
of due to qualifying drought condi-
tions during— 
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‘‘(aa) the current production 
year; or 
‘‘(bb) subject to paragraph 
(3)(B)(ii), 1 or both of the 2 pro-
duction years immediately pre-
ceding the current production 
year. 
‘‘(ii) EXCLUSION.—The term ‘covered 
livestock’ does not include livestock that 
were or would have been in a feedlot, on 
the beginning date of the qualifying 
drought or fire condition, as a part of the 
normal business operation of the eligible 
livestock producer, as determined by the 
Secretary. 
‘‘(B) 
DROUGHT
MONITOR.—The 
term 
‘drought 
monitor’ 
means 
a 
system 
for 
classifying drought severity according to a 
range of abnormally dry to exceptional drought, 
as defined by the Secretary. 
‘‘(C) ELIGIBLE LIVESTOCK PRODUCER.— 
‘‘(i) IN GENERAL.—The term ‘eligible 
livestock producer’ means an eligible pro-
ducer on a farm that— 
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‘‘(I) is an owner, cash or share 
lessee, or contract grower of covered 
livestock that provides the pastureland 
or grazing land, including cash-leased 
pastureland or grazing land, for the 
livestock; 
‘‘(II) provides the pastureland or 
grazing land for covered livestock, in-
cluding cash-leased pastureland or 
grazing land that is physically located 
in a county affected by drought; 
‘‘(III) certifies grazing loss; and 
‘‘(IV) meets all other eligibility 
requirements established under this 
subsection. 
‘‘(ii) EXCLUSION.—The term ‘eligible 
livestock producer’ does not include an 
owner, cash or share lessee, or contract 
grower of livestock that rents or leases 
pastureland or grazing land owned by an-
other person on a rate-of-gain basis. 
‘‘(D) NORMAL CARRYING CAPACITY.—The 
term ‘normal carrying capacity’, with respect to 
each type of grazing land or pastureland in a 
county, means the normal carrying capacity, as 
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determined under paragraph (3)(D)(i), that 
would be expected from the grazing land or 
pastureland for livestock during the normal 
grazing period, in the absence of a drought or 
fire that diminishes the production of the graz-
ing land or pastureland. 
‘‘(E) NORMAL
GRAZING
PERIOD.—The 
term ‘normal grazing period’, with respect to a 
county, means the normal grazing period during 
the calendar year for the county, as determined 
under paragraph (3)(D)(i). 
‘‘(2) PROGRAM.—The Secretary shall use such 
sums as are necessary from the Trust Fund to pro-
vide compensation for losses to eligible livestock pro-
ducers due to grazing losses for covered livestock 
due to— 
‘‘(A) a drought condition, as described in 
paragraph (3); or 
‘‘(B) fire, as described in paragraph (4). 
‘‘(3) 
ASSISTANCE
FOR
LOSSES
DUE
TO 
DROUGHT CONDITIONS.— 
‘‘(A) ELIGIBLE LOSSES.— 
‘‘(i) IN
GENERAL.—An eligible live-
stock producer may receive assistance 
under this subsection only for grazing 
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losses for covered livestock that occur on 
land that— 
‘‘(I) 
is 
native 
or 
improved 
pastureland with permanent vegeta-
tive cover; or 
‘‘(II) is planted to a crop planted 
specifically for the purpose of pro-
viding grazing for covered livestock. 
‘‘(ii) EXCLUSIONS.—An eligible live-
stock producer may not receive assistance 
under this subsection for grazing losses 
that occur on land used for haying or graz-
ing under the conservation reserve pro-
gram established under subchapter B of 
chapter 1 of subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 
3831 et seq.). 
‘‘(B) MONTHLY PAYMENT RATE.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the payment rate for 
assistance under this paragraph for 1 
month shall, in the case of drought, be 
equal to 60 percent of the lesser of— 
‘‘(I) the monthly feed cost for all 
covered livestock owned or leased by 
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the eligible livestock producer, as de-
termined under subparagraph (C); or 
‘‘(II) the monthly feed cost cal-
culated by using the normal carrying 
capacity of the eligible grazing land of 
the eligible livestock producer. 
‘‘(ii) PARTIAL
COMPENSATION.—In 
the case of an eligible livestock producer 
that sold or otherwise disposed of covered 
livestock due to drought conditions in 1 or 
both of the 2 production years immediately 
preceding the current production year, as 
determined by the Secretary, the payment 
rate shall be 80 percent of the payment 
rate otherwise calculated in accordance 
with clause (i). 
‘‘(C) MONTHLY FEED COST.— 
‘‘(i) IN GENERAL.—The monthly feed 
cost shall equal the product obtained by 
multiplying— 
‘‘(I) 30 days; 
‘‘(II) a payment quantity that is 
equal to the feed grain equivalent, as 
determined under clause (ii); and 
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‘‘(III) a payment rate that is 
equal to the corn price per pound, as 
determined under clause (iii). 
‘‘(ii) FEED GRAIN EQUIVALENT.—For 
purposes of clause (i)(I), the feed grain 
equivalent shall equal— 
‘‘(I) in the case of an adult beef 
cow, 15.7 pounds of corn per day; or 
‘‘(II) in the case of any other 
type of weight of livestock, an amount 
determined by the Secretary that rep-
resents the average number of pounds 
of corn per day necessary to feed the 
livestock. 
‘‘(iii) CORN PRICE PER POUND.—For 
purposes of clause (i)(II), the corn price 
per pound shall equal the quotient ob-
tained by dividing— 
‘‘(I) the higher of— 
‘‘(aa) the national average 
corn price per bushel for the 12- 
month period immediately pre-
ceding March 1 of the year for 
which the disaster assistance is 
calculated; or 
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‘‘(bb) the national average 
corn price per bushel for the 24- 
month period immediately pre-
ceding that March 1; by 
‘‘(II) 56. 
‘‘(D) NORMAL
GRAZING
PERIOD
AND 
DROUGHT MONITOR INTENSITY.— 
‘‘(i) FSA COUNTY
COMMITTEE
DE-
TERMINATIONS.— 
‘‘(I) IN
GENERAL.—The Sec-
retary shall determine the normal car-
rying capacity and normal grazing pe-
riod for each type of grazing land or 
pastureland in the county served by 
the applicable committee. 
‘‘(II) CHANGES.—No change to 
the normal carrying capacity or nor-
mal grazing period established for a 
county under subclause (I) shall be 
made unless the change is requested 
by the appropriate State and county 
Farm Service Agency committees. 
‘‘(ii) DROUGHT INTENSITY.— 
‘‘(I) D2.—An eligible livestock 
producer that owns or leases grazing 
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land or pastureland that is physically 
located in a county that is rated by 
the U.S. Drought Monitor as having a 
D2 (severe drought) intensity in any 
area of the county for at least 8 con-
secutive weeks during the normal 
grazing period for the county, as de-
termined by the Secretary, shall be el-
igible to receive assistance under this 
paragraph in an amount equal to 1 
monthly payment using the monthly 
payment rate determined under sub-
paragraph (B). 
‘‘(II) D3.—An eligible livestock 
producer that owns or leases grazing 
land or pastureland that is physically 
located in a county that is rated by 
the U.S. Drought Monitor as having 
at least a D3 (extreme drought) in-
tensity in any area of the county at 
any time during the normal grazing 
period for the county, as determined 
by the Secretary, shall be eligible to 
receive assistance under this para-
graph— 
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‘‘(aa) in an amount equal to 
2 monthly payments using the 
monthly payment rate deter-
mined under subparagraph (B); 
or 
‘‘(bb) if the county is rated 
as 
having 
a 
D3 
(extreme 
drought) intensity in any area of 
the county for at least 4 weeks 
during the normal grazing period 
for the county, or is rated as 
having 
a 
D4 
(exceptional 
drought) intensity in any area of 
the county at any time during 
the normal grazing period, in an 
amount equal to 3 monthly pay-
ments using the monthly pay-
ment rate determined under sub-
paragraph (B). 
‘‘(4) ASSISTANCE FOR LOSSES DUE TO FIRE ON 
PUBLIC MANAGED LAND.— 
‘‘(A) IN
GENERAL.—An eligible livestock 
producer may receive assistance under this 
paragraph only if— 
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‘‘(i) the grazing losses occur on range-
land that is managed by a Federal agency; 
and 
‘‘(ii) the eligible livestock producer is 
prohibited by the Federal agency from 
grazing the normal permitted livestock on 
the managed rangeland due to a fire. 
‘‘(B) PAYMENT RATE.—The payment rate 
for assistance under this paragraph shall be 
equal to 50 percent of the monthly feed cost for 
the total number of livestock covered by the 
Federal lease of the eligible livestock producer, 
as determined under paragraph (3)(C). 
‘‘(C) PAYMENT DURATION.— 
‘‘(i) IN GENERAL.—Subject to clause 
(ii), an eligible livestock producer shall be 
eligible to receive assistance under this 
paragraph for the period— 
‘‘(I) beginning on the date on 
which the Federal agency excludes the 
eligible livestock producer from using 
the managed rangeland for grazing; 
and 
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‘‘(II) ending on the last day of 
the Federal lease of the eligible live-
stock producer. 
‘‘(ii) LIMITATION.—An eligible live-
stock producer may only receive assistance 
under this paragraph for losses that occur 
on not more than 180 days per year. 
‘‘(5) MINIMUM RISK MANAGEMENT PURCHASE 
REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, a livestock producer 
shall only be eligible for assistance under this 
subsection if the livestock producer— 
‘‘(i) obtained a policy or plan of insur-
ance under subtitle A for the grazing land 
incurring the losses for which assistance is 
being requested; or 
‘‘(ii) filed the required paperwork, and 
paid the administrative fee by the applica-
ble State filing deadline, for the non-
insured crop assistance program for the 
grazing land incurring the losses for which 
assistance is being requested. 
‘‘(B) WAIVER
FOR
SOCIALLY
DISADVAN-
TAGED, LIMITED
RESOURCE, OR
BEGINNING 
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FARMER OR RANCHER.—In the case of an eligi-
ble livestock producer that is a socially dis-
advantaged farmer or rancher or limited re-
source or beginning farmer or rancher, as de-
termined by the Secretary, the Secretary may— 
‘‘(i) waive subparagraph (A); and 
‘‘(ii) provide disaster assistance under 
this section at a level that the Secretary 
determines to be equitable and appro-
priate. 
‘‘(C) WAIVER FOR 2008 CALENDAR YEAR.— 
In the case of an eligible livestock producer that 
suffered losses on grazing land during the 2008 
calendar year but does not meet the require-
ments of subparagraph (A), the Secretary shall 
waive subparagraph (A) if the eligible livestock 
producer pays a fee in an amount equal to the 
applicable noninsured crop assistance program 
fee or catastrophic risk protection plan fee re-
quired under subparagraph (A) to the Secretary 
not later than 90 days after the date of enact-
ment of this subtitle. 
‘‘(D) EQUITABLE RELIEF.— 
‘‘(i) IN
GENERAL.—The Secretary 
may provide equitable relief to an eligible 
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livestock producer that is otherwise ineli-
gible or unintentionally fails to meet the 
requirements of subparagraph (A) for the 
grazing land incurring the loss on a case- 
by-case basis, as determined by the Sec-
retary. 
‘‘(ii) 2008 CALENDAR YEAR.—In the 
case of an eligible livestock producer that 
suffered losses on grazing land during the 
2008 calendar year, the Secretary shall 
take special consideration to provide equi-
table relief in cases in which the eligible 
livestock producer failed to meet the re-
quirements of subparagraph (A) due to the 
enactment of this subtitle after the closing 
date of sales periods for crop insurance 
under subtitle A and the noninsured crop 
assistance program. 
‘‘(6) NO DUPLICATIVE PAYMENTS.— 
‘‘(A) IN
GENERAL.—An eligible livestock 
producer may elect to receive assistance for 
grazing or pasture feed losses due to drought 
conditions under paragraph (3) or fire under 
paragraph (4), but not both for the same loss, 
as determined by the Secretary. 
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‘‘(B) RELATIONSHIP
TO
SUPPLEMENTAL 
REVENUE
ASSISTANCE.—An eligible livestock 
producer that receives assistance under this 
subsection may not also receive assistance for 
losses to crops on the same land with the same 
intended use under subsection (b). 
‘‘(e) EMERGENCY
ASSISTANCE
FOR
LIVESTOCK, 
HONEY BEES, AND FARM-RAISED FISH.— 
‘‘(1) IN GENERAL.—The Secretary shall use up 
to $50,000,000 per year from the Trust Fund to 
provide emergency relief to eligible producers of live-
stock, honey bees, and farm-raised fish to aid in the 
reduction of losses due to disease, adverse weather, 
or other conditions, such as blizzards and wildfires, 
as determined by the Secretary, that are not covered 
under subsection (b), (c), or (d). 
‘‘(2) USE OF FUNDS.—Funds made available 
under this subsection shall be used to reduce losses 
caused by feed or water shortages, disease, or other 
factors as determined by the Secretary. 
‘‘(3) AVAILABILITY
OF
FUNDS.—Any funds 
made available under this subsection shall remain 
available until expended. 
‘‘(f) TREE ASSISTANCE PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection: 
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‘‘(A) ELIGIBLE
ORCHARDIST.—The term 
‘eligible orchardist’ means a person that pro-
duces annual crops from trees for commercial 
purposes. 
‘‘(B) NATURAL DISASTER.—The term ‘nat-
ural disaster’ means plant disease, insect infes-
tation, drought, fire, freeze, flood, earthquake, 
lightning, or other occurrence, as determined by 
the Secretary. 
‘‘(C) NURSERY TREE GROWER.—The term 
‘nursery tree grower’ means a person who pro-
duces nursery, ornamental, fruit, nut, or Christ-
mas trees for commercial sale, as determined by 
the Secretary. 
‘‘(D) TREE.—The term ‘tree’ includes a 
tree, bush, and vine. 
‘‘(2) ELIGIBILITY.— 
‘‘(A) LOSS.—Subject to subparagraph (B), 
the Secretary shall provide assistance— 
‘‘(i) under paragraph (3) to eligible 
orchardists and nursery tree growers that 
planted trees for commercial purposes but 
lost the trees as a result of a natural dis-
aster, as determined by the Secretary; and 
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‘‘(ii) under paragraph (3)(B) to eligi-
ble orchardists and nursery tree growers 
that have a production history for commer-
cial purposes on planted or existing trees 
but lost the trees as a result of a natural 
disaster, as determined by the Secretary. 
‘‘(B) LIMITATION.—An eligible orchardist 
or nursery tree grower shall qualify for assist-
ance under subparagraph (A) only if the tree 
mortality of the eligible orchardist or nursery 
tree grower, as a result of damaging weather or 
related condition, exceeds 15 percent (adjusted 
for normal mortality). 
‘‘(3) ASSISTANCE.—Subject to paragraph (4), 
the assistance provided by the Secretary to eligible 
orchardists and nursery tree growers for losses de-
scribed in paragraph (2) shall consist of— 
‘‘(A)(i) reimbursement of 70 percent of the 
cost of replanting trees lost due to a natural 
disaster, as determined by the Secretary, in ex-
cess of 15 percent mortality (adjusted for nor-
mal mortality); or 
‘‘(ii) at the option of the Secretary, suffi-
cient seedlings to reestablish a stand; and 
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‘‘(B) reimbursement of 50 percent of the 
cost of pruning, removal, and other costs in-
curred by an eligible orchardist or nursery tree 
grower to salvage existing trees or, in the case 
of tree mortality, to prepare the land to replant 
trees as a result of damage or tree mortality 
due to a natural disaster, as determined by the 
Secretary, in excess of 15 percent damage or 
mortality (adjusted for normal tree damage and 
mortality). 
‘‘(4) LIMITATIONS ON ASSISTANCE.— 
‘‘(A) DEFINITIONS OF LEGAL ENTITY AND 
PERSON.—In this paragraph, the terms ‘legal 
entity’ and ‘person’ have the meaning given 
those terms in section 1001(a) of the Food Se-
curity Act of 1985 (7 U.S.C. 1308(a) (as 
amended by section 1603 of the Food, Con-
servation, and Energy Act of 2008). 
‘‘(B) AMOUNT.—The total amount of pay-
ments received, directly or indirectly, by a per-
son or legal entity (excluding a joint venture or 
general partnership) under this subsection may 
not exceed $100,000 for any crop year, or an 
equivalent value in tree seedlings. 
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‘‘(C) ACRES.—The total quantity of acres 
planted to trees or tree seedlings for which a 
person or legal entity shall be entitled to receive 
payments under this subsection may not exceed 
500 acres. 
‘‘(g) RISK
MANAGEMENT
PURCHASE
REQUIRE-
MENT.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this section, the eligible producers on a 
farm shall not be eligible for assistance under this 
section (other than subsection (c)) if the eligible pro-
ducers on the farm— 
‘‘(A) in the case of each insurable com-
modity of the eligible producers on the farm, 
did not obtain a policy or plan of insurance 
under subtitle A (excluding a crop insurance 
pilot program under that subtitle); or 
‘‘(B) in the case of each noninsurable com-
modity of the eligible producers on the farm, 
did not file the required paperwork, and pay the 
administrative fee by the applicable State filing 
deadline, for the noninsured crop assistance 
program. 
‘‘(2) MINIMUM.—To be considered to have ob-
tained insurance under paragraph (1)(A), an eligible 
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producer on a farm shall have obtained a policy or 
plan of insurance with not less than 50 percent yield 
coverage at 55 percent of the insurable price for 
each crop grazed, planted, or intended to be planted 
for harvest on a whole farm. 
‘‘(3) WAIVER FOR SOCIALLY DISADVANTAGED, 
LIMITED
RESOURCE, OR
BEGINNING
FARMER
OR 
RANCHER.—With respect to eligible producers that 
are socially disadvantaged farmers or ranchers or 
limited resource or beginning farmers or ranchers, 
as determined by the Secretary, the Secretary 
may— 
‘‘(A) waive paragraph (1); and 
‘‘(B) provide disaster assistance under this 
section at a level that the Secretary determines 
to be equitable and appropriate. 
‘‘(4) WAIVER
FOR
2008
CROP
YEAR.—In the 
case of an eligible producer that suffered losses in 
an insurable commodity or noninsurable commodity 
during the 2008 crop year but does not meet the re-
quirements of paragraph (1), the Secretary shall 
waive paragraph (1) if the eligible producer pays a 
fee in an amount equal to the applicable noninsured 
crop assistance program fee or catastrophic risk pro-
tection plan fee required under paragraph (1) to the 
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Secretary not later than 90 days after the date of 
enactment of this subtitle. 
‘‘(5) EQUITABLE RELIEF.— 
‘‘(A) IN
GENERAL.—The Secretary may 
provide equitable relief to eligible producers on 
a farm that are otherwise ineligible or uninten-
tionally fail to meet the requirements of para-
graph (1) for 1 or more crops on a farm on a 
case-by-case basis, as determined by the Sec-
retary. 
‘‘(B) 2008 CROP YEAR.—In the case of eli-
gible producers on a farm that suffered losses 
in an insurable commodity or noninsurable com-
modity during the 2008 crop year, the Sec-
retary shall take special consideration to pro-
vide equitable relief in cases in which the eligi-
ble producers failed to meet the requirements of 
paragraph (1) due to the enactment of this sub-
title after the closing date of sales periods for 
crop insurance under subtitle A and the non-
insured crop assistance program. 
‘‘(h) PAYMENT LIMITATIONS.— 
‘‘(1) DEFINITIONS OF LEGAL ENTITY AND PER-
SON.—In this subsection, the terms ‘legal entity’ and 
‘person’ have the meaning given those terms in sec-
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tion 1001(a) of the Food Security Act of 1985 (7 
U.S.C. 1308(a) (as amended by section 1603 of the 
Food, Conservation, and Energy Act of 2008). 
‘‘(2) AMOUNT.—The total amount of disaster 
assistance payments received, directly or indirectly, 
by a person or legal entity (excluding a joint venture 
or general partnership) under this section (excluding 
payments received under subsection (f)) may not ex-
ceed $100,000 for any crop year. 
‘‘(3) AGI LIMITATION.—Section 1001D of the 
Food Security Act of 1985 (7 U.S.C. 1308–3a) or 
any successor provision shall apply with respect to 
assistance provided under this section. 
‘‘(4) DIRECT
ATTRIBUTION.—Subsections (e) 
and (f) of section 1001 of the Food Security Act of 
1985 (7 U.S.C. 1308) or any successor provisions 
relating to direct attribution shall apply with respect 
to assistance provided under this section. 
‘‘(i) PERIOD OF EFFECTIVENESS.—This section shall 
be effective only for losses that are incurred as the result 
of a disaster, adverse weather, or other environmental con-
dition that occurs on or before September 30, 2011, as 
determined by the Secretary. 
‘‘(j) NO DUPLICATIVE PAYMENTS.—In implementing 
any other program which makes disaster assistance pay-
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ments (except for indemnities made under subtitle A and 
section 196 of the Federal Agriculture Improvement and 
Reform Act of 1996), the Secretary shall prevent duplica-
tive payments with respect to the same loss for which a 
person receives a payment under subsections (b), (c), (d), 
(e), or (f). 
‘‘(k) APPLICATION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2) 
and notwithstanding any provision of subtitle A, 
subtitle A shall not apply to this subtitle. 
‘‘(2) CROSS REFERENCES.—Paragraph (1) shall 
not apply to a specific reference in this subtitle to 
a provision of subtitle A.’’. 
(b) TRANSITION.—For purposes of the 2008 crop 
year, the Secretary shall carry out subsections (f)(4) and 
(h) of section 531 of the Federal Crop Insurance Act (as 
added by subsection (a)) in accordance with the terms and 
conditions of sections 1001 through 1001D of the Food 
Security Act of 1985 (16 U.S.C. 1308 et seq.), as in effect 
on September 30, 2007. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 501 of the Federal Crop Insurance 
Act (7 U.S.C. 1501) is amended by striking the sec-
tion heading and enumerator and inserting the fol-
lowing: 
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‘‘Subtitle A—Federal Crop 
Insurance Act 
‘‘SEC. 501. SHORT TITLE AND APPLICATION OF OTHER PRO-
VISIONS.’’. 
(2) Subtitle A of the Federal Crop Insurance 
Act (as designated under paragraph (1)) is amend-
ed— 
(A) by striking ‘‘This title’’ each place it 
appears and inserting ‘‘This subtitle’’; and 
(B) by striking ‘‘this title’’ each place it 
appears and inserting ‘‘this subtitle’’. 
SEC. 12034. FISHERIES DISASTER ASSISTANCE. 
Of the funds of the Commodity Credit Corporation, 
the Secretary of Agriculture shall transfer to the Secretary 
of Commerce $170,000,000 for fiscal year 2008 for the 
National Marine Fisheries Service to distribute to com-
mercial and recreational members of the fishing commu-
nities affected by the salmon fishery failure in the States 
of California, Oregon, and Washington designated under 
section 312(a) of the Magnuson-Stevens Fishery Con-
servation and Management Act (16 U.S.C. 1861a(a)) on 
May 1, 2008, in accordance with that section. 
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Act (15 U.S.C. 636(b)), as added by this Act) and 
ending on the date on which such declaration termi-
nates; 
(5) the term ‘‘major disaster’’ has the meaning 
given that term in section 102 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5122); 
(6) the term ‘‘small business concern’’ has the 
meaning given that term under section 3 of the 
Small Business Act (15 U.S.C. 632); and 
(7) the term ‘‘State’’ means any State of the 
United States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Northern Mariana Is-
lands, the Virgin Islands, Guam, American Samoa, 
and any territory or possession of the United States. 
PART I—DISASTER PLANNING AND RESPONSE 
SEC. 12061. ECONOMIC INJURY DISASTER LOANS TO NON-
PROFITS. 
(a) IN GENERAL.—Section 7(b)(2) of the Small Busi-
ness Act (15 U.S.C. 636(b)(2)) is amended— 
(1) in the matter preceding subparagraph (A)— 
(A) by inserting after ‘‘small business con-
cern’’ the following: ‘‘, private nonprofit organi-
zation,’’; and 
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(B) by inserting after ‘‘the concern’’ the 
following: ‘‘, the organization,’’; and 
(2) in subparagraph (D) by inserting after 
‘‘small business concerns’’ the following: ‘‘, private 
nonprofit organizations,’’. 
(b) CONFORMING AMENDMENT.—Section 7(c)(5)(C) 
of the Small Business Act (15 U.S.C. 636(c)(5)(C)) is 
amended by inserting after ‘‘business’’ the following: ‘‘, 
private nonprofit organization,’’. 
SEC. 12062. COORDINATION OF DISASTER ASSISTANCE PRO-
GRAMS WITH FEMA. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 37 as section 44; 
and 
(2) by inserting after section 36 the following: 
‘‘SEC. 37. COORDINATION OF DISASTER ASSISTANCE PRO-
GRAMS WITH FEMA. 
‘‘(a) COORDINATION REQUIRED.—The Administrator 
shall ensure that the disaster assistance programs of the 
Administration are coordinated, to the maximum extent 
practicable, with the disaster assistance programs of the 
Federal Emergency Management Agency. 
‘‘(b) REGULATIONS REQUIRED.—The Administrator, 
in consultation with the Administrator of the Federal 
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Emergency Management Agency, shall establish regula-
tions to ensure that each application for disaster assist-
ance is submitted as quickly as practicable to the Adminis-
tration or directed to the appropriate agency under the 
circumstances. 
‘‘(c) COMPLETION; REVISION.—The initial regula-
tions shall be completed not later than 270 days after the 
date of the enactment of the Small Business Disaster Re-
sponse and Loan Improvements Act of 2008. Thereafter, 
the regulations shall be revised on an annual basis. 
‘‘(d) REPORT.—The Administrator shall include a re-
port on the regulations whenever the Administration sub-
mits the report required by section 43.’’. 
SEC. 12063. PUBLIC AWARENESS OF DISASTER DECLARA-
TION AND APPLICATION PERIODS. 
(a) IN GENERAL.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)) is amended by inserting im-
mediately after paragraph (3), the following: 
‘‘(4) COORDINATION WITH FEMA.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, for any disaster declared 
under this subsection or major disaster (includ-
ing any major disaster relating to which the 
Administrator declares eligibility for additional 
disaster assistance under paragraph (9)), the 
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Administrator, in consultation with the Admin-
istrator of the Federal Emergency Management 
Agency, shall ensure, to the maximum extent 
practicable, that all application periods for dis-
aster relief under this Act correspond with ap-
plication deadlines established under the Robert 
T. Stafford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5121 et seq.), or as ex-
tended by the President. 
‘‘(B) DEADLINES.—Notwithstanding any 
other provision of law, not later than 10 days 
before the closing date of an application period 
for a major disaster (including any major dis-
aster relating to which the Administrator de-
clares eligibility for additional disaster assist-
ance under paragraph (9)), the Administrator, 
in consultation with the Administrator of the 
Federal Emergency Management Agency, shall 
submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of 
Representatives a report that includes— 
‘‘(i) the deadline for submitting appli-
cations for assistance under this Act relat-
ing to that major disaster; 
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‘‘(ii) information regarding the num-
ber of loan applications and disbursements 
processed by the Administrator relating to 
that major disaster for each day during the 
period beginning on the date on which that 
major disaster was declared and ending on 
the date of that report; and 
‘‘(iii) an estimate of the number of 
potential applicants that have not sub-
mitted an application relating to that 
major disaster. 
‘‘(5) PUBLIC AWARENESS OF DISASTERS.—If a 
disaster is declared under this subsection or the Ad-
ministrator declares eligibility for additional disaster 
assistance under paragraph (9), the Administrator 
shall make every effort to communicate through 
radio, television, print, and web-based outlets, all 
relevant information needed by disaster loan appli-
cants, including— 
‘‘(A) the date of such declaration; 
‘‘(B) cities and towns within the area of 
such declaration; 
‘‘(C) loan application deadlines related to 
such disaster; 
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‘‘(D) all relevant contact information for 
victim services available through the Adminis-
tration (including links to small business devel-
opment center websites); 
‘‘(E) links to relevant Federal and State 
disaster assistance websites, including links to 
websites providing information regarding assist-
ance available from the Federal Emergency 
Management Agency; 
‘‘(F) information on eligibility criteria for 
Administration loan programs, including where 
such applications can be found; and 
‘‘(G) application materials that clearly 
state the function of the Administration as the 
Federal source of disaster loans for homeowners 
and renters.’’. 
(b) MARKETING AND OUTREACH.—Not later than 90 
days after the date of enactment of this Act, the Adminis-
trator shall create a marketing and outreach plan that— 
(1) encourages a proactive approach to the dis-
aster relief efforts of the Administration; 
(2) makes clear the services provided by the Ad-
ministration, including contact information, applica-
tion information, and timelines for submitting appli-
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cations, the review of applications, and the disburse-
ment of funds; 
(3) describes the different disaster loan pro-
grams of the Administration, including how they are 
made available and the eligibility requirements for 
each loan program; 
(4) provides for regional marketing, focusing on 
disasters occurring in each region before the date of 
enactment of this Act, and likely scenarios for disas-
ters in each such region; and 
(5) ensures that the marketing plan is made 
available at small business development centers and 
on the website of the Administration. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) IN GENERAL.—Section 3 of the Small Busi-
ness Act (15 U.S.C. 632) is amended by adding at 
the end the following: 
‘‘(s) MAJOR DISASTER.—In this Act, the term ‘major 
disaster’ has the meaning given that term in section 102 
of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5122).’’. 
(2) TECHNICAL CORRECTION.—Section 7(b)(2) 
of the Small Business Act (15 U.S.C. 636(b)(2)) is 
amended by striking ‘‘Disaster Relief and Emer-
gency Assistance Act’’ and inserting ‘‘Robert T. 
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Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5121 et seq.)’’. 
SEC. 12064. CONSISTENCY BETWEEN ADMINISTRATION 
REGULATIONS AND STANDARD OPERATING 
PROCEDURES. 
(a) IN GENERAL.—The Administrator shall, prompt-
ly following the date of enactment of this Act, conduct 
a study of whether the standard operating procedures of 
the Administration for loans offered under section 7(b) of 
the Small Business Act (15 U.S.C. 636(b)) are consistent 
with the regulations of the Administration for admin-
istering the disaster loan program. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the Administrator shall submit 
to Congress a report containing all findings and rec-
ommendations of the study conducted under subsection 
(a). 
SEC. 12065. INCREASING COLLATERAL REQUIREMENTS. 
Section 7(c)(6) of the Small Business Act (15 U.S.C. 
636(c)(6)) is amended by striking ‘‘$10,000 or less’’ and 
inserting ‘‘$14,000 or less (or such higher amount as the 
Administrator determines appropriate in the event of a 
major disaster)’’. 
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SEC. 12066. PROCESSING DISASTER LOANS. 
(a) AUTHORITY FOR QUALIFIED PRIVATE CONTRAC-
TORS TO PROCESS DISASTER LOANS.—Section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) is amended by in-
serting immediately after paragraph (5), as added by this 
Act, the following: 
‘‘(6) AUTHORITY FOR QUALIFIED PRIVATE CON-
TRACTORS.— 
‘‘(A) DISASTER LOAN PROCESSING.—The 
Administrator may enter into an agreement 
with a qualified private contractor, as deter-
mined by the Administrator, to process loans 
under this subsection in the event of a major 
disaster (including any major disaster relating 
to which the Administrator declares eligibility 
for additional disaster assistance under para-
graph (9)), under which the Administrator shall 
pay the contractor a fee for each loan proc-
essed. 
‘‘(B) LOAN
LOSS
VERIFICATION
SERV-
ICES.—The Administrator may enter into an 
agreement with a qualified lender or loss 
verification professional, as determined by the 
Administrator, to verify losses for loans under 
this subsection in the event of a major disaster 
(including any major disaster relating to which 
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the Administrator declares eligibility for addi-
tional disaster assistance under paragraph (9)), 
under which the Administrator shall pay the 
lender or verification professional a fee for each 
loan for which such lender or verification pro-
fessional verifies losses.’’. 
(b) COORDINATION OF EFFORTS BETWEEN THE AD-
MINISTRATOR AND THE INTERNAL REVENUE SERVICE TO 
EXPEDITE LOAN PROCESSING.—The Administrator and 
the Commissioner of Internal Revenue shall, to the max-
imum extent practicable, ensure that all relevant and al-
lowable tax records for loan approval are shared with loan 
processors in an expedited manner, upon request by the 
Administrator. 
SEC. 12067. INFORMATION TRACKING AND FOLLOW-UP SYS-
TEM. 
The Small Business Act is amended by inserting after 
section 37, as added by this Act, the following: 
‘‘SEC. 38. INFORMATION TRACKING AND FOLLOW-UP SYS-
TEM FOR DISASTER ASSISTANCE. 
‘‘(a) SYSTEM REQUIRED.—The Administrator shall 
develop, implement, or maintain a centralized information 
system to track communications between personnel of the 
Administration and applicants for disaster assistance. The 
system shall ensure that whenever an applicant for dis-
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aster assistance communicates with such personnel on a 
matter relating to the application, the following informa-
tion is recorded: 
‘‘(1) The method of communication. 
‘‘(2) The date of communication. 
‘‘(3) The identity of the personnel. 
‘‘(4) A summary of the subject matter of the 
communication. 
‘‘(b) FOLLOW-UP REQUIRED.—The Administrator 
shall ensure that an applicant for disaster assistance re-
ceives, by telephone, mail, or electronic mail, follow-up 
communications from the Administration at all critical 
stages of the application process, including the following: 
‘‘(1) When the Administration determines that 
additional information or documentation is required 
to process the application. 
‘‘(2) When the Administration determines 
whether to approve or deny the loan. 
‘‘(3) When the primary contact person man-
aging the loan application has changed.’’. 
SEC. 12068. INCREASED DEFERMENT PERIOD. 
(a) IN GENERAL.—Section 7 of the Small Business 
Act (15 U.S.C. 636) is amended— 
(1) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; and 
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(2) by inserting after subsection (e), as so re-
designated, the following: 
‘‘(f) 
ADDITIONAL
REQUIREMENTS
FOR
7(b) 
LOANS.— 
‘‘(1) INCREASED DEFERMENT AUTHORIZED.— 
‘‘(A) IN
GENERAL.—In making loans 
under subsection (b), the Administrator may 
provide, to the person receiving the loan, an op-
tion to defer repayment on the loan. 
‘‘(B) PERIOD.—The period of a deferment 
under subparagraph (A) may not exceed 4 
years.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
The Small Business Act (15 U.S.C. 631 et seq.) is amend-
ed— 
(1) in section 4(c)— 
(A) in paragraph (1), by striking ‘‘7(c)(2)’’ 
and inserting ‘‘7(d)(2)’’; and 
(B) in paragraph (2)— 
(i) by striking ‘‘7(c)(2)’’ and inserting 
‘‘7(d)(2)’’; and 
(ii) by striking ‘‘7(e),’’; and 
(2) in section 7(b), in the undesignated matter 
following paragraph (3)— 
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(A) by striking ‘‘That the provisions of 
paragraph (1) of subsection (c)’’ and inserting 
‘‘That the provisions of paragraph (1) of sub-
section (d)’’; and 
(B) by striking ‘‘Notwithstanding the pro-
visions of any other law the interest rate on the 
Administration’s share of any loan made under 
subsection (b) except as provided in subsection 
(c),’’ and inserting ‘‘Notwithstanding any other 
provision of law, and except as provided in sub-
section (d), the interest rate on the Administra-
tion’s share of any loan made under subsection 
(b)’’. 
SEC. 12069. DISASTER PROCESSING REDUNDANCY. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended by inserting after section 38, as added by this 
Act, the following: 
‘‘SEC. 39. DISASTER PROCESSING REDUNDANCY. 
‘‘(a) IN GENERAL.—The Administrator shall ensure 
that the Administration has in place a facility for disaster 
loan processing that, whenever the Administration’s pri-
mary facility for disaster loan processing becomes unavail-
able, is able to take over all disaster loan processing from 
that primary facility within 2 days. 
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‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section.’’. 
SEC. 12070. NET EARNINGS CLAUSES PROHIBITED. 
Section 7 of the Small Business Act (15 U.S.C. 636) 
is amended by inserting after subsection (f), as added by 
this Act, the following: 
‘‘(g) NET EARNINGS CLAUSES PROHIBITED FOR 7(b) 
LOANS.—In making loans under subsection (b), the Ad-
ministrator shall not require the borrower to pay any non- 
amortized amount for the first five years after repayment 
begins.’’. 
SEC. 12071. ECONOMIC INJURY DISASTER LOANS IN CASES 
OF ICE STORMS AND BLIZZARDS. 
Section 3(k)(2) of the Small Business Act (15 U.S.C. 
632(k)(2)) is amended— 
(1) in subparagraph (A) by striking ‘‘and’’; 
(2) in subparagraph (B) by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(C) ice storms and blizzards.’’. 
SEC. 12072. DEVELOPMENT AND IMPLEMENTATION OF 
MAJOR DISASTER RESPONSE PLAN. 
(a) IN GENERAL.—Not later than 3 months after the 
date of enactment of this Act, the Administrator shall— 
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(1) by rule, amend the 2006 Atlantic hurricane 
season disaster response plan of the Administration 
(in this section referred to as the ‘‘disaster response 
plan’’) to apply to major disasters; and 
(2) submit a report to the Committee on Small 
Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of 
Representatives detailing the amendments to the dis-
aster response plan. 
(b) CONTENTS.—The report required under sub-
section (a)(2) shall include— 
(1) any updates or modifications made to the 
disaster response plan since the report regarding the 
disaster response plan submitted to Congress on 
July 14, 2006; 
(2) a description of how the Administrator 
plans to use and integrate District Office personnel 
of the Administration in the response to a major dis-
aster, including information on the use of personnel 
for loan processing and loan disbursement; 
(3) a description of the disaster scalability 
model of the Administration and on what basis or 
function the plan is scaled; 
(4) a description of how the agency-wide Dis-
aster Oversight Council is structured, which offices 
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comprise its membership, and whether the Associate 
Deputy Administrator for Entrepreneurial Develop-
ment of the Administration is a member; 
(5) a description of how the Administrator 
plans to coordinate the disaster efforts of the Ad-
ministration with State and local government offi-
cials, including recommendations on how to better 
incorporate State initiatives or programs, such as 
State-administered bridge loan programs, into the 
disaster response of the Administration; 
(6) recommendations, if any, on how the Ad-
ministration can better coordinate its disaster re-
sponse operations with the operations of other Fed-
eral, State, and local entities; 
(7) any surge plan for the disaster loan pro-
gram of the Administration in effect on or after Au-
gust 29, 2005 (including surge plans for loss 
verification, loan processing, mailroom, customer 
service or call center operations, and a continuity of 
operations plan); 
(8) the number of full-time equivalent employ-
ees and job descriptions for the planning and dis-
aster response staff of the Administration; 
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(9) the in-service and preservice training proce-
dures for disaster response staff of the Administra-
tion; 
(10) information on the logistical support plans 
of the Administration (including equipment and 
staffing needs, and detailed information on how such 
plans will be scalable depending on the size and 
scope of the major disaster; 
(11) a description of the findings and rec-
ommendations of the Administrator, if any, based on 
a review of the response of the Administration to 
Hurricane Katrina of 2005, Hurricane Rita of 2005, 
and Hurricane Wilma of 2005; and 
(12) a plan for how the Administrator, in con-
sultation with the Administrator of the Federal 
Emergency Management Agency, will coordinate the 
provision of accommodations and necessary re-
sources for disaster assistance personnel to effec-
tively perform their responsibilities in the aftermath 
of a major disaster. 
(c) BIENNIAL DISASTER SIMULATION EXERCISE.— 
(1) EXERCISE REQUIRED.—The Administrator 
shall conduct a disaster simulation exercise at least 
once every 2 fiscal years. The exercise shall include 
the participation of, at a minimum, not less than 50 
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percent of the individuals in the disaster reserve 
corps and shall test, at maximum capacity, all of the 
information technology and telecommunications sys-
tems of the Administration that are vital to the ac-
tivities of the Administration during such a disaster. 
(2) REPORT.—The Administrator shall include 
a report on the disaster simulation exercises con-
ducted under paragraph (1) each time the Adminis-
tration submits a report required under section 43 
of the Small Business Act, as added by this Act. 
SEC. 12073. DISASTER PLANNING RESPONSIBILITIES. 
(a) ASSIGNMENT OF SMALL BUSINESS ADMINISTRA-
TION DISASTER PLANNING RESPONSIBILITIES.—The dis-
aster planning function of the Administration shall be as-
signed to an individual appointed by the Administrator 
who— 
(1) is not an employee of the Office of Disaster 
Assistance of the Administration; 
(2) has proven management ability; 
(3) has substantial knowledge in the field of 
disaster readiness and emergency response; and 
(4) has demonstrated significant experience in 
the area of disaster planning. 
(b) RESPONSIBILITIES.—The individual assigned the 
disaster planning function of the Administration shall re-
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port directly and solely to the Administrator and shall be 
responsible for— 
(1) creating, maintaining, and implementing the 
comprehensive disaster response plan of the Admin-
istration described in section 12072; 
(2) ensuring there are in-service and pre-service 
training procedures for the disaster response staff of 
the Administration; 
(3) coordinating and directing the training exer-
cises of the Administration relating to disasters, in-
cluding disaster simulation exercises and disaster ex-
ercises coordinated with other government depart-
ments and agencies; and 
(4) other responsibilities relevant to disaster 
planning and readiness, as determined by the Ad-
ministrator. 
(c) COORDINATION.—In carrying out the responsibil-
ities described in subsection (b), the individual assigned 
the disaster planning function of the Administration shall 
coordinate with— 
(1) the Office of Disaster Assistance of the Ad-
ministration; 
(2) the Administrator of the Federal Emer-
gency Management Agency; and 
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(3) other Federal, State, and local disaster 
planning offices, as necessary. 
(d) RESOURCES.—The Administrator shall ensure 
that the individual assigned the disaster planning function 
of the Administration has adequate resources to carry out 
the duties under this section. 
(e) REPORT.—Not later than 30 days after the date 
of enactment of this Act, the Administrator shall submit 
to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business 
of the House of Representatives a report containing— 
(1) a description of the actions of the Adminis-
trator to assign an individual the disaster planning 
function of the Administration; 
(2) information detailing the background and 
expertise of the individual assigned; and 
(3) information on the status of the implemen-
tation of the responsibilities described in subsection 
(b). 
SEC. 12074. ASSIGNMENT OF EMPLOYEES OF THE OFFICE 
OF DISASTER ASSISTANCE AND DISASTER 
CADRE. 
(a) IN GENERAL.—Section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)) is amended by inserting im-
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mediately after paragraph (6), as added by this Act, the 
following: 
‘‘(7) DISASTER ASSISTANCE EMPLOYEES.— 
‘‘(A) IN GENERAL.—In carrying out this 
section, the Administrator may, where prac-
ticable, ensure that the number of full-time 
equivalent employees— 
‘‘(i) in the Office of the Disaster As-
sistance is not fewer than 800; and 
‘‘(ii) in the Disaster Cadre of the Ad-
ministration is not fewer than 1,000. 
‘‘(B) REPORT.—In carrying out this sub-
section, if the number of full-time employees for 
either the Office of Disaster Assistance or the 
Disaster Cadre of the Administration is below 
the level described in subparagraph (A) for that 
office, not later than 21 days after the date on 
which that staffing level decreased below the 
level described in subparagraph (A), the Admin-
istrator shall submit to the Committee on Ap-
propriations and the Committee on Small Busi-
ness and Entrepreneurship of the Senate and 
the Committee on Appropriations and Com-
mittee on Small Business of the House of Rep-
resentatives, a report— 
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‘‘(i) detailing staffing levels on that 
date; 
‘‘(ii) requesting, if practicable and de-
termined appropriate by the Administrator, 
additional funds for additional employees; 
and 
‘‘(iii) containing such additional infor-
mation, as determined appropriate by the 
Administrator.’’. 
SEC. 12075. COMPREHENSIVE DISASTER RESPONSE PLAN. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended inserting after section 39, as added by this Act, 
the following: 
‘‘SEC. 40. COMPREHENSIVE DISASTER RESPONSE PLAN. 
‘‘(a) PLAN REQUIRED.—The Administrator shall de-
velop, implement, or maintain a comprehensive written 
disaster response plan. The plan shall include the fol-
lowing: 
‘‘(1) For each region of the Administration, a 
description of the disasters most likely to occur in 
that region. 
‘‘(2) For each disaster described under para-
graph (1)— 
‘‘(A) an assessment of the disaster; 
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‘‘(B) an assessment of the demand for Ad-
ministration assistance most likely to occur in 
response to the disaster; 
‘‘(C) an assessment of the needs of the Ad-
ministration, with respect to such resources as 
information 
technology, 
telecommunications, 
human resources, and office space, to meet the 
demand referred to in subparagraph (B); and 
‘‘(D) guidelines pursuant to which the Ad-
ministration will coordinate with other Federal 
agencies and with State and local authorities to 
best respond to the demand referred to in sub-
paragraph (B) and to best use the resources re-
ferred to in that subparagraph. 
‘‘(b) COMPLETION; REVISION.—The first plan re-
quired by subsection (a) shall be completed not later than 
180 days after the date of the enactment of this section. 
Thereafter, the Administrator shall update the plan on an 
annual basis and following any major disaster relating to 
which the Administrator declares eligibility for additional 
disaster assistance under section 7(b)(9). 
‘‘(c) KNOWLEDGE REQUIRED.—The Administrator 
shall carry out subsections (a) and (b) through an indi-
vidual with substantial knowledge in the field of disaster 
readiness and emergency response. 
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‘‘(d) REPORT.—The Administrator shall include a re-
port on the plan whenever the Administration submits the 
report required by section 43.’’. 
SEC. 12076. PLANS TO SECURE SUFFICIENT OFFICE SPACE. 
The Small Business Act is amended by inserting after 
section 40, as added by this Act, the following: 
‘‘SEC. 41. PLANS TO SECURE SUFFICIENT OFFICE SPACE. 
‘‘(a) PLANS REQUIRED.—The Administrator shall 
develop long-term plans to secure sufficient office space 
to accommodate an expanded workforce in times of dis-
aster. 
‘‘(b) REPORT.—The Administrator shall include a re-
port on the plans developed under subsection (a) each time 
the Administration submits a report required under sec-
tion 43.’’. 
SEC. 12077. APPLICANTS THAT HAVE BECOME A MAJOR 
SOURCE OF EMPLOYMENT DUE TO CHANGED 
ECONOMIC CIRCUMSTANCES. 
Section 7(b)(3)(E) of the Small Business Act (15 
U.S.C. 636(b)(3)(E)) is amended by inserting after ‘‘con-
stitutes’’ the following: ‘‘, or have become due to changed 
economic circumstances,’’. 
SEC. 12078. DISASTER LOAN AMOUNTS. 
(a) INCREASED LOAN CAPS.—Section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) is amended by in-
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serting immediately after paragraph (7), as added by this 
Act, the following: 
‘‘(8) INCREASED LOAN CAPS.— 
‘‘(A) AGGREGATE
LOAN
AMOUNTS.—Ex-
cept as provided in subparagraph (B), and not-
withstanding any other provision of law, the ag-
gregate loan amount outstanding and com-
mitted to a borrower under this subsection may 
not exceed $2,000,000. 
‘‘(B) WAIVER AUTHORITY.—The Adminis-
trator may, at the discretion of the Adminis-
trator, increase the aggregate loan amount 
under subparagraph (A) for loans relating to a 
disaster to a level established by the Adminis-
trator, based on appropriate economic indica-
tors for the region in which that disaster oc-
curred.’’. 
(b) DISASTER MITIGATION.— 
(1) IN
GENERAL.—Section 7(b)(1)(A) of the 
Small Business Act (15 U.S.C. 636(b)(1)(A)) is 
amended by inserting ‘‘of the aggregate costs of 
such damage or destruction (whether or not com-
pensated for by insurance or otherwise)’’ after ‘‘20 
per centum’’. 
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(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply with respect to a loan 
or guarantee made after the date of enactment of 
this Act. 
(c) TECHNICAL AMENDMENTS.—Section 7(b) of the 
Small Business Act (15 U.S.C. 636(b)) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘the, Administration’’ and inserting ‘‘the 
Administration’’; and 
(2) in the undesignated matter at the end— 
(A) by striking ‘‘, (2), and (4)’’ and insert-
ing ‘‘and (2)’’; and 
(B) by striking ‘‘, (2), or (4)’’ and insert-
ing ‘‘(2)’’. 
SEC. 12079. SMALL BUSINESS BONDING THRESHOLD. 
(a) IN GENERAL.—Except as provided in subsection 
(b), and notwithstanding any other provision of law, for 
any procurement related to a major disaster, the Adminis-
trator may, upon such terms and conditions as the Admin-
istrator may prescribe, guarantee and enter into commit-
ments to guarantee any surety against loss resulting from 
a breach of the terms of a bid bond, payment bond, per-
formance bond, or bonds ancillary thereto, by a principal 
on any total work order or contract amount at the time 
of bond execution that does not exceed $5,000,000. 
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(b) INCREASE OF AMOUNT.—Upon request of the 
head of any Federal agency other than the Administration 
involved in reconstruction efforts in response to a major 
disaster, the Administrator may guarantee and enter into 
a commitment to guarantee any security against loss 
under subsection (a) on any total work order or contract 
amount at the time of bond execution that does not exceed 
$10,000,000. 
(c) LIMITATION ON USE OF OTHER FUNDS.—The 
Administrator may carry out this section only with 
amounts appropriated in advance specifically to carry out 
this section. 
PART II—DISASTER LENDING 
SEC. 12081. ELIGIBILITY FOR ADDITIONAL DISASTER AS-
SISTANCE. 
Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting immediately after para-
graph (8), as added by this Act, the following: 
‘‘(9) DECLARATION OF ELIGIBILITY FOR ADDI-
TIONAL DISASTER ASSISTANCE.— 
‘‘(A) IN GENERAL.—If the President de-
clares a major disaster, the Administrator may 
declare eligibility for additional disaster assist-
ance in accordance with this paragraph. 
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‘‘(B) THRESHOLD.—A major disaster for 
which the Administrator declares eligibility for 
additional disaster assistance under this para-
graph shall— 
‘‘(i) have resulted in extraordinary 
levels of casualties or damage or disruption 
severely affecting the population (including 
mass evacuations), infrastructure, environ-
ment, economy, national morale, or govern-
ment functions in an area; 
‘‘(ii) be comparable to the description 
of a catastrophic incident in the National 
Response Plan of the Administration, or 
any successor thereto, unless there is no 
successor to such plan, in which case this 
clause shall have no force or effect; and 
‘‘(iii) be of such size and scope that— 
‘‘(I) the disaster assistance pro-
grams under the other paragraphs 
under this subsection are incapable of 
providing adequate and timely assist-
ance to individuals or business con-
cerns located within the disaster area; 
or 
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‘‘(II) a significant number of 
business concerns outside the disaster 
area have suffered disaster-related 
substantial economic injury as a result 
of the incident.’’. 
SEC. 12082. ADDITIONAL ECONOMIC INJURY DISASTER 
LOAN ASSISTANCE. 
Paragraph (9) of section 7(b) of the Small Business 
Act (15 U.S.C. 636(b)), as added by section 12081, is 
amended by adding at the end the following: 
‘‘(C) ADDITIONAL ECONOMIC INJURY DIS-
ASTER LOAN ASSISTANCE.— 
‘‘(i) IN
GENERAL.—If the Adminis-
trator declares eligibility for additional dis-
aster assistance under this paragraph, the 
Administrator may make such loans under 
this subparagraph (either directly or in co-
operation with banks or other lending in-
stitutions through agreements to partici-
pate on an immediate or deferred basis) as 
the Administrator determines appropriate 
to eligible small business concerns located 
anywhere in the United States. 
‘‘(ii) PROCESSING TIME.— 
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‘‘(I) IN
GENERAL.—If the Ad-
ministrator determines that the aver-
age processing time for applications 
for disaster loans under this subpara-
graph relating to a specific major dis-
aster is more than 15 days, the Ad-
ministrator shall give priority to the 
processing of such applications sub-
mitted by eligible small business con-
cerns located inside the disaster area, 
until the Administrator determines 
that the average processing time for 
such applications is not more than 15 
days. 
‘‘(II) SUSPENSION
OF
APPLICA-
TIONS
FROM
OUTSIDE
DISASTER 
AREA.—If the Administrator deter-
mines that the average processing 
time for applications for disaster loans 
under this subparagraph relating to a 
specific major disaster is more than 
30 days, the Administrator shall sus-
pend the processing of such applica-
tions submitted by eligible small busi-
ness concerns located outside the dis-
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aster area, until the Administrator de-
termines that the average processing 
time for such applications is not more 
than 15 days. 
‘‘(iii) LOAN
TERMS.—A loan under 
this subparagraph shall be made on the 
same terms as a loan under paragraph (2). 
‘‘(D) DEFINITIONS.—In this paragraph— 
‘‘(i) the term ‘disaster area’ means 
the area for which the applicable major 
disaster was declared; 
‘‘(ii) the term ‘disaster-related sub-
stantial economic injury’ means economic 
harm to a business concern that results in 
the inability of the business concern to— 
‘‘(I) meet its obligations as it 
matures; 
‘‘(II) meet its ordinary and nec-
essary operating expenses; or 
‘‘(III) market, produce, or pro-
vide a product or service ordinarily 
marketed, produced, or provided by 
the business concern because the busi-
ness concern relies on materials from 
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the disaster area or sells or markets 
in the disaster area; and 
‘‘(iii) the term ‘eligible small business 
concern’ means a small business concern— 
‘‘(I) that has suffered disaster-re-
lated substantial economic injury as a 
result of the applicable major disaster; 
and 
‘‘(II)(aa) for which not less than 
25 percent of the market share of 
that small business concern is from 
business transacted in the disaster 
area; 
‘‘(bb) for which not less than 25 
percent of an input into a production 
process of that small business concern 
is from the disaster area; or 
‘‘(cc) that relies on a provider lo-
cated in the disaster area for a service 
that is not readily available else-
where.’’. 
SEC. 12083. PRIVATE DISASTER LOANS. 
(a) IN GENERAL.—Section 7 of the Small Business 
Act (15 U.S.C. 636) is amended by inserting after sub-
section (b) the following: 
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‘‘(c) PRIVATE DISASTER LOANS.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘disaster area’ means any 
area for which the President declared a major 
disaster relating to which the Administrator de-
clares eligibility for additional disaster assist-
ance under subsection (b)(9), during the period 
of that major disaster declaration; 
‘‘(B) the term ‘eligible individual’ means 
an individual who is eligible for disaster assist-
ance under subsection (b)(1) relating to a 
major disaster relating to which the Adminis-
trator declares eligibility for additional disaster 
assistance under subsection (b)(9); 
‘‘(C) the term ‘eligible small business con-
cern’ means a business concern that is— 
‘‘(i) a small business concern, as de-
fined under this Act; or 
‘‘(ii) a small business concern, as de-
fined in section 103 of the Small Business 
Investment Act of 1958; 
‘‘(D) the term ‘preferred lender’ means a 
lender participating in the Preferred Lender 
Program; 
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‘‘(E) the term ‘Preferred Lender Program’ 
has the meaning given that term in subsection 
(a)(2)(C)(ii); and 
‘‘(F) the term ‘qualified private lender’ 
means any privately-owned bank or other lend-
ing institution that— 
‘‘(i) is not a preferred lender; and 
‘‘(ii) the Administrator determines 
meets the criteria established under para-
graph (10). 
‘‘(2) PROGRAM REQUIRED.—The Administrator 
shall carry out a program, to be known as the Pri-
vate Disaster Assistance program, under which the 
Administration may guarantee timely payment of 
principal and interest, as scheduled, on any loan 
made to an eligible small business concern located in 
a disaster area and to an eligible individual. 
‘‘(3) USE OF LOANS.—A loan guaranteed by 
the Administrator under this subsection may be used 
for any purpose authorized under subsection (b). 
‘‘(4) ONLINE APPLICATIONS.— 
‘‘(A) 
ESTABLISHMENT.—The 
Adminis-
trator may establish, directly or through an 
agreement with another entity, an online appli-
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cation process for loans guaranteed under this 
subsection. 
‘‘(B) OTHER FEDERAL ASSISTANCE.—The 
Administrator may coordinate with the head of 
any other appropriate Federal agency so that 
any application submitted through an online ap-
plication process established under this para-
graph may be considered for any other Federal 
assistance program for disaster relief. 
‘‘(C) CONSULTATION.—In establishing an 
online application process under this paragraph, 
the Administrator shall consult with appro-
priate persons from the public and private sec-
tors, including private lenders. 
‘‘(5) MAXIMUM AMOUNTS.— 
‘‘(A) GUARANTEE PERCENTAGE.—The Ad-
ministrator may guarantee not more than 85 
percent of a loan under this subsection. 
‘‘(B) 
LOAN
AMOUNT.—The 
maximum 
amount of a loan guaranteed under this sub-
section shall be $2,000,000. 
‘‘(6) TERMS AND CONDITIONS.—A loan guaran-
teed under this subsection shall be made under the 
same terms and conditions as a loan under sub-
section (b). 
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‘‘(7) LENDERS.— 
‘‘(A) IN
GENERAL.—A loan guaranteed 
under this subsection made to— 
‘‘(i) a qualified individual may be 
made by a preferred lender; and 
‘‘(ii) a qualified small business con-
cern may be made by a qualified private 
lender or by a preferred lender that also 
makes loans to qualified individuals. 
‘‘(B) COMPLIANCE.—If the Administrator 
determines that a preferred lender knowingly 
failed to comply with the underwriting stand-
ards for loans guaranteed under this subsection 
or violated the terms of the standard operating 
procedure agreement between that preferred 
lender and the Administration, the Adminis-
trator shall do 1 or more of the following: 
‘‘(i) Exclude the preferred lender from 
participating in the program under this 
subsection. 
‘‘(ii) Exclude the preferred lender 
from participating in the Preferred Lender 
Program for a period of not more than 5 
years. 
‘‘(8) FEES.— 
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‘‘(A) IN
GENERAL.—The Administrator 
may not collect a guarantee fee under this sub-
section. 
‘‘(B) ORIGINATION
FEE.—The Adminis-
trator may pay a qualified private lender or 
preferred lender an origination fee for a loan 
guaranteed under this subsection in an amount 
agreed upon in advance between the qualified 
private lender or preferred lender and the Ad-
ministrator. 
‘‘(9) DOCUMENTATION.—A qualified private 
lender or preferred lender may use its own loan doc-
umentation for a loan guaranteed by the Adminis-
trator under this subsection, to the extent author-
ized by the Administrator. The ability of a lender to 
use its own loan documentation for a loan guaran-
teed under this subsection shall not be considered 
part of the criteria for becoming a qualified private 
lender under the regulations promulgated under 
paragraph (10). 
‘‘(10) IMPLEMENTATION REGULATIONS.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of the Small Busi-
ness Disaster Response and Loan Improve-
ments Act of 2008, the Administrator shall 
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issue final regulations establishing permanent 
criteria for qualified private lenders. 
‘‘(B) REPORT
TO
CONGRESS.—Not later 
than 6 months after the date of enactment of 
the Small Business Disaster Response and 
Loan Improvements Act of 2008, the Adminis-
trator shall submit a report on the progress of 
the regulations required by subparagraph (A) to 
the Committee on Small Business and Entre-
preneurship of the Senate and the Committee 
on Small Business of the House of Representa-
tives. 
‘‘(11) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(A) IN GENERAL.—Amounts necessary to 
carry out this subsection shall be made avail-
able from amounts appropriated to the Admin-
istration to carry out subsection (b). 
‘‘(B) AUTHORITY
TO
REDUCE
INTEREST 
RATES AND OTHER TERMS AND CONDITIONS.— 
Funds appropriated to the Administration to 
carry out this subsection, may be used by the 
Administrator to meet the loan terms and con-
ditions specified in paragraph (6). 
‘‘(12) PURCHASE
OF
LOANS.—The Adminis-
trator may enter into an agreement with a qualified 
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private lender or preferred lender to purchase any 
loan guaranteed under this subsection.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to any major disaster declared on 
or after the date of enactment of this Act. 
SEC. 12084. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 
The Small Business Act is amended by inserting after 
section 41, as added by this Act, the following: 
‘‘SEC. 42. IMMEDIATE DISASTER ASSISTANCE PROGRAM. 
‘‘(a) PROGRAM REQUIRED.—The Administrator shall 
carry out a program, to be known as the Immediate Dis-
aster Assistance program, under which the Administration 
participates on a deferred (guaranteed) basis in 85 per-
cent of the balance of the financing outstanding at the 
time of disbursement of the loan if such balance is less 
than or equal to $25,000 for businesses affected by a dis-
aster. 
‘‘(b) ELIGIBILITY REQUIREMENT.—To receive a loan 
guaranteed under subsection (a), the applicant shall also 
apply for, and meet basic eligibility standards for, a loan 
under subsection (b) or (c) of section 7. 
‘‘(c) USE OF PROCEEDS.—A person who receives a 
loan under subsection (b) or (c) of section 7 shall use the 
proceeds of that loan to repay all loans guaranteed under 
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subsection (a), if any, before using the proceeds for any 
other purpose. 
‘‘(d) LOAN TERMS.— 
‘‘(1) NO PREPAYMENT PENALTY.—There shall 
be no prepayment penalty on a loan guaranteed 
under subsection (a). 
‘‘(2) REPAYMENT.—A person who receives a 
loan guaranteed under subsection (a) and who is dis-
approved for a loan under subsection (b) or (c) of 
section 7, as the case may be, shall repay the loan 
guaranteed under subsection (a) not later than the 
date established by the Administrator, which may 
not be earlier than 10 years after the date on which 
the loan guaranteed under subsection is disbursed. 
‘‘(e) APPROVAL
OR DISAPPROVAL.—The Adminis-
trator shall ensure that each applicant for a loan under 
the program receives a decision approving or disapproving 
of the application within 36 hours after the Administra-
tion receives the application.’’. 
SEC. 12085. EXPEDITED DISASTER ASSISTANCE LOAN PRO-
GRAM. 
(a) DEFINITION.—In this section, the term ‘‘pro-
gram’’ means the expedited disaster assistance business 
loan program established under subsection (b). 
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(b) CREATION
OF PROGRAM.—The Administrator 
shall take such administrative action as is necessary to 
establish and implement an expedited disaster assistance 
business loan program under which the Administration 
may, on an expedited basis, guarantee timely payment of 
principal and interest, as scheduled on any loan made to 
an eligible small business concern under paragraph (9) of 
section 7(b) of the Small Business Act (15 U.S.C. 636(b)), 
as added by this Act. 
(c) CONSULTATION REQUIRED.—In establishing the 
program, the Administrator shall consult with— 
(1) appropriate personnel of the Administration 
(including District Office personnel of the Adminis-
tration); 
(2) appropriate technical assistance providers 
(including small business development centers); 
(3) appropriate lenders and credit unions; 
(4) the Committee on Small Business and En-
trepreneurship of the Senate; and 
(5) the Committee on Small Business of the 
House of Representatives. 
(d) RULES.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Administrator 
shall issue rules in final form establishing and imple-
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menting the program in accordance with this sec-
tion. Such rules shall apply as provided for in this 
section, beginning 90 days after their issuance in 
final form. 
(2) CONTENTS.—The rules promulgated under 
paragraph (1) shall— 
(A) identify whether appropriate uses of 
funds under the program may include— 
(i) paying employees; 
(ii) paying bills and other financial 
obligations; 
(iii) making repairs; 
(iv) purchasing inventory; 
(v) restarting or operating a small 
business concern in the community in 
which it was conducting operations prior to 
the applicable major disaster, or to a 
neighboring area, county, or parish in the 
disaster area; or 
(vi) covering additional costs until the 
small business concern is able to obtain 
funding through insurance claims, Federal 
assistance programs, or other sources; and 
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(B) set the terms and conditions of any 
loan made under the program, subject to para-
graph (3). 
(3) TERMS AND CONDITIONS.—A loan guaran-
teed by the Administration under this section— 
(A) shall be for not more than $150,000; 
(B) shall be a short-term loan, not to ex-
ceed 180 days, except that the Administrator 
may extend such term as the Administrator de-
termines necessary or appropriate on a case-by- 
case basis; 
(C) shall have an interest rate not to ex-
ceed 300 basis points above the interest rate es-
tablished by the Board of Governors of the Fed-
eral Reserve System that 1 bank charges an-
other for reserves that are lent on an overnight 
basis on the date the loan is made; 
(D) shall have no prepayment penalty; 
(E) may only be made to a borrower that 
meets the requirements for a loan under section 
7(b) of the Small Business Act (15 U.S.C. 
636(b)), as amended by this Act; 
(F) may be refinanced as part of any sub-
sequent disaster assistance provided under sec-
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tion 7(b) of the Small Business Act (15 U.S.C. 
636(b)), as amended by this Act; 
(G) may receive expedited loss verification 
and loan processing, if the applicant is— 
(i) a major source of employment in 
the disaster area (which shall be deter-
mined in the same manner as under sec-
tion 7(b)(3)(B) of the Small Business Act 
(15 U.S.C. 636(b)(3)(B))); or 
(ii) vital to recovery efforts in the re-
gion (including providing debris removal 
services, manufactured housing, or building 
materials); and 
(H) shall be subject to such additional 
terms as the Administrator determines nec-
essary or appropriate. 
(e) REPORT
TO
CONGRESS.—Not later than 5 
months after the date of enactment of this Act, the Ad-
ministrator shall report to the Committee on Small Busi-
ness and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Representatives 
on the progress of the Administrator in establishing the 
program. 
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(f) AUTHORIZATION.—There are authorized to be ap-
propriated to the Administrator such sums as are nec-
essary to carry out this section. 
SEC. 12086. GULF COAST DISASTER LOAN REFINANCING 
PROGRAM. 
(a) IN GENERAL.—The Administrator may carry out 
a program to refinance Gulf Coast disaster loans (in this 
section referred to as the ‘‘program’’). 
(b) TERMS.—The terms of a Gulf Coast disaster loan 
refinanced under the program shall be identical to the 
terms of the original loan, except that the Administrator 
may provide an option to defer repayment on the loan. 
A deferment under the program shall end not later than 
4 years after the date on which the initial disbursement 
under the original loan was made. 
(c) AMOUNT.—The amount of a Gulf Coast disaster 
loan refinanced under the program shall not exceed the 
amount of the original loan. 
(d) DISCLOSURE OF ACCRUED INTEREST.—If the 
Administrator provides an option to defer repayment 
under the program, the Administrator shall disclose the 
accrued interest that must be paid under the option. 
(e) DEFINITION.—In this section, the term ‘‘Gulf 
Coast disaster loan’’ means a loan— 
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(1) made under section 7(b) of the Small Busi-
ness Act (15 U.S.C. 636(b)); 
(2) in response to Hurricane Katrina of 2005, 
Hurricane Rita of 2005, or Hurricane Wilma of 
2005; and 
(3) to a small business concern located in a 
county or parish designated by the Administrator as 
a disaster area by reason of a hurricane described 
in paragraph (2) under disaster declaration 10176, 
10177, 10178, 10179, 10180, 10181, 10203, 10204, 
10205, 10206, 10222, or 10223. 
(f) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section. 
PART III—MISCELLANEOUS 
SEC. 12091. REPORTS ON DISASTER ASSISTANCE. 
(a) MONTHLY
ACCOUNTING
REPORT
TO
CON-
GRESS.— 
(1) REPORTING
REQUIREMENTS.—Not later 
than the fifth business day of each month during the 
applicable period for a major disaster, the Adminis-
trator shall submit to the Committee on Small Busi-
ness and Entrepreneurship and the Committee on 
Appropriations of the Senate and to the Committee 
on Small Business and the Committee on Appropria-
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tions of the House of Representatives a report on 
the operation of the disaster loan program author-
ized under section 7 of the Small Business Act (15 
U.S.C. 636) for that major disaster during the pre-
ceding month. 
(2) CONTENTS.—Each report submitted under 
paragraph (1) shall include— 
(A) the daily average lending volume, in 
number of loans and dollars, and the percent by 
which each category has increased or decreased 
since the previous report under paragraph (1); 
(B) the weekly average lending volume, in 
number of loans and dollars, and the percent by 
which each category has increased or decreased 
since the previous report under paragraph (1); 
(C) the amount of funding spent over the 
month for loans, both in appropriations and 
program level, and the percent by which each 
category has increased or decreased since the 
previous report under paragraph (1); 
(D) the amount of funding available for 
loans, both in appropriations and program level, 
and the percent by which each category has in-
creased or decreased since the previous report 
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under paragraph (1), noting the source of any 
additional funding; 
(E) an estimate of how long the available 
funding for such loans will last, based on the 
spending rate; 
(F) the amount of funding spent over the 
month for staff, along with the number of staff, 
and the percent by which each category has in-
creased or decreased since the previous report 
under paragraph (1); 
(G) the amount of funding spent over the 
month for administrative costs, and the percent 
by which such spending has increased or de-
creased since the previous report under para-
graph (1); 
(H) the amount of funding available for 
salaries and expenses combined, and the per-
cent by which such funding has increased or de-
creased since the previous report under para-
graph (1), noting the source of any additional 
funding; and 
(I) an estimate of how long the available 
funding for salaries and expenses will last, 
based on the spending rate. 
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(b) WEEKLY DISASTER UPDATES TO CONGRESS FOR 
PRESIDENTIALLY DECLARED DISASTERS.— 
(1) IN GENERAL.—Each week during a disaster 
update period, the Administration shall submit to 
the Committee on Small Business and Entrepre-
neurship of the Senate and to the Committee on 
Small Business of the House of Representatives a 
report on the operation of the disaster loan program 
of the Administration for the area in which the 
President declared a major disaster. 
(2) CONTENTS.—Each report submitted under 
paragraph (1) shall include— 
(A) the number of Administration staff 
performing loan processing, field inspection, 
and other duties for the declared disaster, and 
the allocations of such staff in the disaster field 
offices, disaster recovery centers, workshops, 
and other Administration offices nationwide; 
(B) the daily number of applications re-
ceived from applicants in the relevant area, as 
well as a breakdown of such figures by State; 
(C) the daily number of applications pend-
ing application entry from applicants in the rel-
evant area, as well as a breakdown of such fig-
ures by State; 
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(D) the daily number of applications with-
drawn by applicants in the relevant area, as 
well as a breakdown of such figures by State; 
(E) the daily number of applications sum-
marily declined by the Administration from ap-
plicants in the relevant area, as well as a break-
down of such figures by State; 
(F) the daily number of applications de-
clined by the Administration from applicants in 
the relevant area, as well as a breakdown of 
such figures by State; 
(G) the daily number of applications in 
process from applicants in the relevant area, as 
well as a breakdown of such figures by State; 
(H) the daily number of applications ap-
proved by the Administration from applicants in 
the relevant area, as well as a breakdown of 
such figures by State; 
(I) the daily dollar amount of applications 
approved by the Administration from applicants 
in the relevant area, as well as a breakdown of 
such figures by State; 
(J) the daily amount of loans dispersed, 
both partially and fully, by the Administration 
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to applicants in the relevant area, as well as a 
breakdown of such figures by State; 
(K) the daily dollar amount of loans dis-
bursed, both partially and fully, from the rel-
evant area, as well as a breakdown of such fig-
ures by State; 
(L) the number of applications approved, 
including dollar amount approved, as well as 
applications partially and fully disbursed, in-
cluding dollar amounts, since the last report 
under paragraph (1); and 
(M) the declaration date, physical damage 
closing date, economic injury closing date, and 
number of counties included in the declaration 
of a major disaster. 
(c) PERIODS WHEN ADDITIONAL DISASTER ASSIST-
ANCE IS MADE AVAILABLE.— 
(1) IN GENERAL.—During any period for which 
the Administrator declares eligibility for additional 
disaster assistance under paragraph (9) of section 
7(b) of the Small Business Act (15 U.S.C. 632(b)), 
as amended by this Act, the Administrator shall, on 
a monthly basis, submit to the Committee on Small 
Business and Entrepreneurship of the Senate and to 
the Committee on Small Business of the House of 
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Representatives a report on the disaster assistance 
operations of the Administration with respect to the 
applicable major disaster. 
(2) CONTENTS.—Each report submitted under 
paragraph (1) shall specify— 
(A) the number of applications for disaster 
assistance distributed; 
(B) the number of applications for disaster 
assistance received; 
(C) the average time for the Administra-
tion to approve or disapprove an application for 
disaster assistance; 
(D) the amount of disaster loans approved; 
(E) the average time for initial disburse-
ment of disaster loan proceeds; and 
(F) the amount of disaster loan proceeds 
disbursed. 
(d) NOTICE
OF
THE NEED
FOR SUPPLEMENTAL 
FUNDS.—On the same date that the Administrator noti-
fies any committee of the Senate or the House of Rep-
resentatives that supplemental funding is necessary for 
the disaster loan program of the Administration in any 
fiscal year, the Administrator shall notify in writing the 
Committee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of the 
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House of Representatives regarding the need for supple-
mental funds for that loan program. 
(e) REPORT ON CONTRACTING.— 
(1) IN
GENERAL.—Not later than 6 months 
after the date on which the President declares a 
major disaster, and every 6 months thereafter until 
the date that is 18 months after the date on which 
the major disaster was declared, the Administrator 
shall submit a report to the Committee on Small 
Business and Entrepreneurship of the Senate and to 
the Committee on Small Business of the House of 
Representatives regarding Federal contracts award-
ed as a result of that major disaster. 
(2) CONTENTS.—Each report submitted under 
paragraph (1) shall include— 
(A) the total number of contracts awarded 
as a result of that major disaster; 
(B) the total number of contracts awarded 
to small business concerns as a result of that 
major disaster; 
(C) the total number of contracts awarded 
to women and minority-owned businesses as a 
result of that major disaster; and 
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(D) the total number of contracts awarded 
to local businesses as a result of that major dis-
aster. 
(f) REPORT ON LOAN APPROVAL RATE.— 
(1) IN
GENERAL.—Not later than 6 months 
after the date of enactment of this Act, the Adminis-
trator shall submit a report to the Committee on 
Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House 
of Representatives detailing how the Administration 
can improve the processing of applications under the 
disaster loan program of the Administration. 
(2) CONTENTS.—The report submitted under 
paragraph (1) shall include— 
(A) recommendations, if any, regarding— 
(i) staffing levels during a major dis-
aster; 
(ii) how to improve the process for 
processing, 
approving, 
and 
disbursing 
loans under the disaster loan program of 
the Administration, to ensure that the 
maximum assistance is provided to victims 
in a timely manner; 
(iii) the viability of using alternative 
methods for assessing the ability of an ap-
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plicant to repay a loan, including the credit 
score of the applicant on the day before 
the date on which the disaster for which 
the applicant is seeking assistance was de-
clared; 
(iv) methods, if any, for the Adminis-
tration to expedite loss verification and 
loan processing of disaster loans during a 
major disaster for businesses affected by, 
and located in the area for which the 
President declared, the major disaster that 
are a major source of employment in the 
area or are vital to recovery efforts in the 
region (including providing debris removal 
services, manufactured housing, or building 
materials); 
(v) legislative changes, if any, needed 
to implement findings from the Accelerated 
Disaster Response Initiative of the Admin-
istration; and 
(vi) a description of how the Adminis-
tration plans to integrate and coordinate 
the response to a major disaster with the 
technical assistance programs of the Ad-
ministration; and 
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(B) the plans of the Administrator for im-
plementing any recommendation made under 
subparagraph (A). 
(g) REPORTS
ON
DISASTER
ASSISTANCE.—The 
Small Business Act is amended by inserting after section 
42, as added by this Act, the following: 
‘‘SEC. 43. ANNUAL REPORTS ON DISASTER ASSISTANCE. 
‘‘Not later than 45 days after the end of a fiscal year, 
the Administrator shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representa-
tives a report on the disaster assistance operations of the 
Administration for that fiscal year. The report shall— 
‘‘(1) specify the number of Administration per-
sonnel involved in such operations; 
‘‘(2) describe any material changes to those op-
erations, such as changes to technologies used or to 
personnel responsibilities; 
‘‘(3) describe and assess the effectiveness of the 
Administration in responding to disasters during 
that fiscal year, including a description of the num-
ber and amounts of loans made for damage and for 
economic injury; and 
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‘‘(4) describe the plans of the Administration 
for preparing to respond to disasters during the next 
fiscal year.’’. 
TITLE XIII—COMMODITY 
FUTURES 
SEC. 13001. SHORT TITLE. 
This title may be cited as the ‘‘CFTC Reauthoriza-
tion Act of 2008’’. 
Subtitle A—General Provisions 
SEC. 13101. COMMISSION AUTHORITY OVER AGREEMENTS, 
CONTRACTS OR TRANSACTIONS IN FOREIGN 
CURRENCY. 
(a) IN GENERAL.—Section 2(c)(2) of the Commodity 
Exchange Act (7 U.S.C. 2(c)(2)) is amended by striking 
subparagraphs (B) and (C) and inserting the following: 
‘‘(B) 
AGREEMENTS, 
CONTRACTS, 
AND 
TRANSACTIONS
IN
RETAIL
FOREIGN
CUR-
RENCY.— 
‘‘(i) This Act applies to, and the Com-
mission shall have jurisdiction over, an 
agreement, contract, or transaction in for-
eign currency that— 
‘‘(I) is a contract of sale of a 
commodity for future delivery (or an 
option on such a contract) or an op-
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tion (other than an option executed or 
traded on a national securities ex-
change registered pursuant to section 
6(a) of the Securities Exchange Act of 
1934 (15 U.S.C. 78f(a))); and 
‘‘(II) is offered to, or entered 
into with, a person that is not an eli-
gible contract participant, unless the 
counterparty, or the person offering to 
be the counterparty, of the person 
is— 
‘‘(aa) a financial institution; 
‘‘(bb)(AA) a broker or deal-
er registered under section 15(b) 
(except paragraph (11) thereof) 
or 15C of the Securities Ex-
change Act of 1934 (15 U.S.C. 
78o(b), 78o–5); or 
‘‘(BB) an associated person 
of a broker or dealer registered 
under section 15(b) (except para-
graph (11) thereof) or 15C of the 
Securities Exchange Act of 1934 
(15 U.S.C. 78o(b), 78o–5) con-
cerning the financial or securities 
VerDate Aug 31 2005 
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activities of which the broker or 
dealer makes and keeps records 
under section 15C(b) or 17(h) of 
the Securities Exchange Act of 
1934 
(15 
U.S.C. 
78o–5(b), 
78q(h)); 
‘‘(cc)(AA) a futures commis-
sion merchant that is primarily 
or substantially engaged in the 
business activities described in 
section 1a(20) of this Act, is reg-
istered under this Act, is not a 
person described in item (bb) of 
this subclause, and maintains ad-
justed net capital equal to or in 
excess of the dollar amount that 
applies for purposes of clause (ii) 
of this subparagraph; or 
‘‘(BB) an affiliated person 
of a futures commission mer-
chant that is primarily or sub-
stantially engaged in the business 
activities described in section 
1a(20) of this Act, is registered 
under this Act, and is not a per-
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son described in item (bb) of this 
subclause, if the affiliated person 
maintains adjusted net capital 
equal to or in excess of the dollar 
amount that applies for purposes 
of clause (ii) of this subpara-
graph and is not a person de-
scribed in such item (bb), and 
the futures commission merchant 
makes and keeps records under 
section 4f(c)(2)(B) of this Act 
concerning the futures and other 
financial activities of the affili-
ated person; 
‘‘(dd) an insurance company 
described in section 1a(12)(A)(ii) 
of this Act, or a regulated sub-
sidiary or affiliate of such an in-
surance company; 
‘‘(ee) a financial holding 
company (as defined in section 2 
of the Bank Holding Company 
Act of 1956); 
‘‘(ff) an investment bank 
holding company (as defined in 
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section 17(i) of the Securities 
Exchange 
Act 
of 
1934 
(15 
U.S.C. 78q(i))); or 
‘‘(gg) a retail foreign ex-
change dealer that maintains ad-
justed net capital equal to or in 
excess of the dollar amount that 
applies for purposes of clause (ii) 
of this subparagraph and is reg-
istered in such capacity with the 
Commission, 
subject 
to 
such 
terms and conditions as the Com-
mission shall prescribe, and is a 
member of a futures association 
registered under section 17. 
‘‘(ii) The dollar amount that applies 
for purposes of this clause is— 
‘‘(I) $10,000,000, beginning 120 
days after the date of the enactment 
of this clause; 
‘‘(II) $15,000,000, beginning 240 
days after such date of enactment; 
and 
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‘‘(III) 
$20,000,000, 
beginning 
360 days after such date of enact-
ment. 
‘‘(iii) Notwithstanding items (cc) and 
(gg) of clause (i)(II) of this subparagraph, 
agreements, contracts, or transactions de-
scribed in clause (i) of this subparagraph 
shall be subject to subsection (a)(1)(B) of 
this section and sections 4(b), 4b, 4c(b), 
4o, 6(c) and 6(d) (except to the extent that 
sections 6(c) and 6(d) prohibit manipula-
tion of the market price of any commodity 
in interstate commerce, or for future deliv-
ery on or subject to the rules of any mar-
ket), 6c, 6d, 8(a), 13(a), and 13(b) if the 
agreements, contracts, or transactions are 
offered, or entered into, by a person that 
is registered as a futures commission mer-
chant or retail foreign exchange dealer, or 
an affiliated person of a futures commis-
sion merchant registered under this Act 
that is not also a person described in any 
of item (aa), (bb), (dd), (ee), or (ff) of 
clause (i)(II) of this subparagraph. 
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‘‘(iv)(I) Notwithstanding items (cc) 
and (gg) of clause (i)(II), a person, unless 
registered in such capacity as the Commis-
sion by rule, regulation, or order shall de-
termine and a member of a futures asso-
ciation registered under section 17, shall 
not— 
‘‘(aa) solicit or accept orders 
from any person that is not an eligible 
contract participant in connection 
with agreements, contracts, or trans-
actions described in clause (i) entered 
into with or to be entered into with a 
person who is not described in item 
(aa), (bb), (dd), (ee), or (ff) of clause 
(i)(II); 
‘‘(bb) exercise discretionary trad-
ing authority or obtain written au-
thorization to exercise discretionary 
trading authority over any account for 
or on behalf of any person that is not 
an eligible contract participant in con-
nection with agreements, contracts, or 
transactions described in clause (i) en-
tered into with or to be entered into 
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ket or a derivatives transaction execu-
tion facility. 
‘‘(III) Notwithstanding items (cc) and 
(gg) of clause (i)(II), the Commission may 
make, promulgate, and enforce such rules 
and regulations as, in the judgment of the 
Commission, are reasonably necessary to 
effectuate any of the provisions of, or to 
accomplish any of the purposes of, this Act 
in connection with the activities of persons 
subject to subclause (I). 
‘‘(IV) Subclause (III) of this clause 
shall not apply to— 
‘‘(aa) any person described in 
any of item (aa) through (ff) of clause 
(i)(II); 
‘‘(bb) any such person’s associ-
ated persons; or 
‘‘(cc) any person who would be 
exempt from registration if engaging 
in the same activities in connection 
with transactions conducted on or 
subject to the rules of a contract mar-
ket or a derivatives transaction execu-
tion facility. 
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‘‘(v) Notwithstanding items (cc) and 
(gg) of clause (i)(II), the Commission may 
make, promulgate, and enforce such rules 
and regulations as, in the judgment of the 
Commission, are reasonably necessary to 
effectuate any of the provisions of, or to 
accomplish any of the purposes of, this Act 
in connection with agreements, contracts, 
or transactions described in clause (i) 
which are offered, or entered into, by a 
person described in item (cc) or (gg) of 
clause (i)(II). 
‘‘(C)(i)(I) This subparagraph shall apply to 
any agreement, contract, or transaction in for-
eign currency that is— 
‘‘(aa) offered to, or entered into 
with, a person that is not an eligible 
contract participant (except that this 
subparagraph shall not apply if the 
counterparty, or the person offering to 
be the counterparty, of the person 
that is not an eligible contract partici-
pant is a person described in any of 
item (aa), (bb), (dd), (ee), or (ff) of 
subparagraph (B)(i)(II)); and 
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‘‘(bb) offered, or entered into, on 
a leveraged or margined basis, or fi-
nanced 
by 
the 
offeror, 
the 
counterparty, or a person acting in 
concert 
with 
the 
offeror 
or 
counterparty on a similar basis. 
‘‘(II) Subclause (I) of this clause shall not 
apply to— 
‘‘(aa) a security that is not a security 
futures product; or 
‘‘(bb) a contract of sale that— 
‘‘(AA) results in actual delivery 
within 2 days; or 
‘‘(BB) creates an enforceable ob-
ligation to deliver between a seller and 
buyer that have the ability to deliver 
and accept delivery, respectively, in 
connection with their line of business. 
‘‘(ii)(I) Agreements, contracts, or trans-
actions described in clause (i) of this subpara-
graph shall be subject to subsection (a)(1)(B) 
of this section and sections 4(b), 4b, 4c(b), 4o, 
6(c) and 6(d) (except to the extent that sections 
6(c) and 6(d) prohibit manipulation of the mar-
ket price of any commodity in interstate com-
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merce, or for future delivery on or subject to 
the rules of any market), 6c, 6d, 8(a), 13(a), 
and 13(b). 
‘‘(II) Subclause (I) of this clause shall not 
apply to— 
‘‘(aa) any person described in any of 
item (aa), (bb), (dd), (ee), or (ff) of sub-
paragraph (B)(i)(II); or 
‘‘(bb) any such person’s associated 
persons. 
‘‘(III) The Commission may make, promul-
gate, and enforce such rules and regulations as, 
in the judgment of the Commission, are reason-
ably necessary to effectuate any of the provi-
sions of or to accomplish any of the purposes 
of this Act in connection with agreements, con-
tracts, or transactions described in clause (i) of 
this subparagraph if the agreements, contracts, 
or transactions are offered, or entered into, by 
a person that is not described in item (aa) 
through (ff) of subparagraph (B)(i)(II). 
‘‘(iii)(I) A person, unless registered in such 
capacity as the Commission by rule, regulation, 
or order shall determine and a member of a fu-
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tures association registered under section 17, 
shall not— 
‘‘(aa) solicit or accept orders from any 
person that is not an eligible contract par-
ticipant in connection with agreements, 
contracts, or transactions described in 
clause (i) of this subparagraph entered 
into with or to be entered into with a per-
son who is not described in item (aa), (bb), 
(dd), 
(ee), 
or 
(ff) 
of 
subparagraph 
(B)(i)(II); 
‘‘(bb) exercise discretionary trading 
authority or obtain written authorization 
to exercise written trading authority over 
any account for or on behalf of any person 
that is not an eligible contract participant 
in connection with agreements, contracts, 
or transactions described in clause (i) of 
this subparagraph entered into with or to 
be entered into with a person who is not 
described in item (aa), (bb), (dd), (ee), or 
(ff) of subparagraph (B)(i)(II); or 
‘‘(cc) operate or solicit funds, securi-
ties, or property for any pooled investment 
vehicle that is not an eligible contract par-
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ticipant in connection with agreements, 
contracts, or transactions described in 
clause (i) of this subparagraph entered 
into with or to be entered into with a per-
son who is not described in item (aa), (bb), 
(dd), 
(ee), 
or 
(ff) 
of 
subparagraph 
(B)(i)(II). 
‘‘(II) Subclause (I) of this clause shall not 
apply to— 
‘‘(aa) any person described in item 
(aa), (bb), (dd), (ee), or (ff) of subpara-
graph (B)(i)(II); 
‘‘(bb) any such person’s associated 
persons; or 
‘‘(cc) any person who would be ex-
empt from registration if engaging in the 
same activities in connection with trans-
actions conducted on or subject to the 
rules of a contract market or a derivatives 
transaction execution facility. 
‘‘(III) The Commission may make, promul-
gate, and enforce such rules and regulations as, 
in the judgment of the Commission, are reason-
ably necessary to effectuate any of the provi-
sions of, or to accomplish any of the purposes 
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of, this Act in connection with the activities of 
persons subject to subclause (I). 
‘‘(IV) Subclause (III) of this clause shall 
not apply to— 
‘‘(aa) any person described in item 
(aa) 
through 
(ff) 
of 
subparagraph 
(B)(i)(II); 
‘‘(bb) any such person’s associated 
persons; or 
‘‘(cc) any person who would be ex-
empt from registration if engaging in the 
same activities in connection with trans-
actions conducted on or subject to the 
rules of a contract market or a derivatives 
transaction execution facility. 
‘‘(iv) Sections 4(b) and 4b shall apply to 
any agreement, contract, or transaction de-
scribed in clause (i) of this subparagraph as if 
the agreement, contract, or transaction were a 
contract of sale of a commodity for future deliv-
ery. 
‘‘(v) This subparagraph shall not be con-
strued to limit any jurisdiction that the Com-
mission may otherwise have under any other 
provision of this Act over an agreement, con-
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tract, or transaction that is a contract of sale 
of a commodity for future delivery. 
‘‘(vi) This subparagraph shall not be con-
strued to limit any jurisdiction that the Com-
mission or the Securities and Exchange Com-
mission may otherwise have under any other 
provision of this Act with respect to security fu-
tures products and persons effecting trans-
actions in security futures products.’’. 
(b) EFFECTIVE DATE.—The following provisions of 
the Commodity Exchange Act, as amended by subsection 
(a) of this section, shall be effective 120 days after the 
date of the enactment of this Act or at such other time 
as the Commodity Futures Trading Commission shall de-
termine: 
(1) Subparagraphs (B)(i)(II)(gg), (B)(iv), and 
(C)(iii) of section 2(c)(2). 
(2) 
The 
provisions 
of 
section 
2(c)(2)(B)(i)(II)(cc) that set forth adjusted net cap-
ital requirements, and the provisions of such section 
that require a futures commission merchant to be 
primarily or substantially engaged in certain busi-
ness activities. 
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SEC. 13102. ANTI-FRAUD AUTHORITY OVER PRINCIPAL-TO- 
PRINCIPAL TRANSACTIONS. 
Section 4b of the Commodity Exchange Act (7 U.S.C. 
Section 6b) is amended— 
(1) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively; and 
(2) by striking all through the end of subsection 
(a) and inserting the following: 
‘‘SEC. 4b. CONTRACTS DESIGNED TO DEFRAUD OR MIS-
LEAD. 
‘‘(a) UNLAWFUL ACTIONS.—It shall be unlawful— 
‘‘(1) for any person, in or in connection with 
any order to make, or the making of, any contract 
of sale of any commodity in interstate commerce or 
for future delivery that is made, or to be made, on 
or subject to the rules of a designated contract mar-
ket, for or on behalf of any other person; or 
‘‘(2) for any person, in or in connection with 
any order to make, or the making of, any contract 
of sale of any commodity for future delivery, or 
other agreement, contract, or transaction subject to 
paragraphs (1) and (2) of section 5a(g), that is 
made, or to be made, for or on behalf of, or with, 
any other person, other than on or subject to the 
rules of a designated contract market— 
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‘‘(A) to cheat or defraud or attempt to 
cheat or defraud the other person; 
‘‘(B) willfully to make or cause to be made 
to the other person any false report or state-
ment or willfully to enter or cause to be entered 
for the other person any false record; 
‘‘(C) willfully to deceive or attempt to de-
ceive the other person by any means whatsoever 
in regard to any order or contract or the dis-
position or execution of any order or contract, 
or in regard to any act of agency performed, 
with respect to any order or contract for or, in 
the case of paragraph (2), with the other per-
son; or 
‘‘(D)(i) to bucket an order if the order is 
either represented by the person as an order to 
be executed, or is required to be executed, on or 
subject to the rules of a designated contract 
market; or 
‘‘(ii) to fill an order by offset against the 
order or orders of any other person, or willfully 
and knowingly and without the prior consent of 
the other person to become the buyer in respect 
to any selling order of the other person, or be-
come the seller in respect to any buying order 
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of the other person, if the order is either rep-
resented by the person as an order to be exe-
cuted, or is required to be executed, on or sub-
ject to the rules of a designated contract mar-
ket unless the order is executed in accordance 
with the rules of the designated contract mar-
ket. 
‘‘(b) CLARIFICATION.—Subsection (a)(2) of this sec-
tion shall not obligate any person, in or in connection with 
a transaction in a contract of sale of a commodity for fu-
ture delivery, or other agreement, contract or transaction 
subject to paragraphs (1) and (2) of section 5a(g), with 
another person, to disclose to the other person nonpublic 
information that may be material to the market price, 
rate, or level of the commodity or transaction, except as 
necessary to make any statement made to the other person 
in or in connection with the transaction not misleading 
in any material respect.’’. 
SEC. 13103. CRIMINAL AND CIVIL PENALTIES. 
(a) ENFORCEMENT POWERS OF THE COMMISSION.— 
Section 6(c) of the Commodity Exchange Act (7 U.S.C. 
9, 15) is amended in clause (3) of the 10th sentence— 
(1) by inserting ‘‘(A)’’ after ‘‘assess such per-
son’’; and 
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(2) by inserting after ‘‘each such violation’’ the 
following: ‘‘, or (B) in any case of manipulation or 
attempted manipulation in violation of this sub-
section, subsection (d) of this section, or section 
9(a)(2), a civil penalty of not more than the greater 
of $1,000,000 or triple the monetary gain to the 
person for each such violation,’’. 
(b) NONENFORCEMENT OF RULES OF GOVERNMENT 
OR OTHER VIOLATIONS.—Section 6b of such Act (7 
U.S.C. 13a) is amended— 
(1) in the first sentence, by inserting before the 
period at the end the following: ‘‘, or, in any case 
of manipulation or attempted manipulation in viola-
tion of section 6(c), 6(d), or 9(a)(2), a civil penalty 
of not more than $1,000,000 for each such viola-
tion’’; and 
(2) in the second sentence, by inserting before 
the period at the end the following: ‘‘, except that 
if the failure or refusal to obey or comply with the 
order involved any offense under section 9(a)(2), the 
registered entity, director, officer, agent, or employee 
shall be guilty of a felony and, on conviction, shall 
be subject to penalties under section 9(a)(2)’’. 
(c) ACTION TO ENJOIN OR RESTRAIN VIOLATIONS.— 
Section 6c(d) of such Act (7 U.S.C. 13a–1(d)) is amended 
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by striking all that precedes paragraph (2) and inserting 
the following: 
‘‘(d) CIVIL PENALTIES.— 
‘‘(1) IN
GENERAL.—In any action brought 
under this section, the Commission may seek and 
the court shall have jurisdiction to impose, on a 
proper showing, on any person found in the action 
to have committed any violation— 
‘‘(A) a civil penalty in the amount of not 
more than the greater of $100,000 or triple the 
monetary gain to the person for each violation; 
or 
‘‘(B) in any case of manipulation or at-
tempted manipulation in violation of section 
6(c), 6(d), or 9(a)(2), a civil penalty in the 
amount of not more than the greater of 
$1,000,000 or triple the monetary gain to the 
person for each violation.’’. 
(d) VIOLATIONS GENERALLY.—Section 9(a) of such 
Act (7 U.S.C. 13(a)) is amended in the matter preceding 
paragraph (1)— 
(1) by striking ‘‘(or $500,000 in the case of a 
person who is an individual)’’; and 
(2) by striking ‘‘five years’’ and inserting ‘‘10 
years’’. 
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HR 6124 PCS
SEC. 13104. AUTHORIZATION OF APPROPRIATIONS. 
Section 12(d) of the Commodity Exchange Act (7 
U.S.C. 16(d)) is amended to read as follows: 
‘‘(d) There are authorized to be appropriated such 
sums as are necessary to carry out this Act for each of 
the fiscal years 2008 through 2013.’’. 
SEC. 13105. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) Section 4a(e) of the Commodity Exchange Act (7 
U.S.C. 6a(e)) is amended— 
(1) by inserting ‘‘or certified by a registered en-
tity pursuant to section 5c(c)(1)’’ after ‘‘approved by 
the Commission’’ ; and 
(2) by striking ‘‘section 9(c)’’ and inserting 
‘‘section 9(a)(5)’’. 
(b) Section 4f(c)(4)(B)(i) of such Act (7 U.S.C. 
6f(c)(4)(B)(i)) is amended by striking ‘‘compiled’’ and in-
serting ‘‘complied’’. 
(c) Section 4k of such Act (7 U.S.C. 6k) is amended 
by redesignating the second paragraph (5) as paragraph 
(6). 
(d) The Commodity Exchange Act is amended— 
(1) by redesignating the first section 4p (7 
U.S.C. 6o–1), as added by section 121 of the Com-
modity Futures Modernization Act of 2000, as sec-
tion 4q; and 
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(2) by moving such section to after the second 
section 4p, as added by section 206 of Public Law 
93–446. 
(e) Subsections (a)(1) and (d)(1) of section 5c of such 
Act (7 U.S.C. 7a–2(a)(1), (d)(1)) are each amended by 
striking ‘‘5b(d)(2)’’ and inserting ‘‘5b(c)(2)’’. 
(f) Sections 5c(f) and 17(r) of such Act (7 U.S.C. 
7a–2(f), 21(r)) are each amended by striking ‘‘4d(3)’’ and 
inserting ‘‘4d(c)’’. 
(g) Section 8(a)(1) of such Act (7 U.S.C. 12(a)(1)) 
is amended in the matter following subparagraph (B)— 
(1) by striking ‘‘commenced’’ in the 2nd place 
it appears; and 
(2) by inserting ‘‘commenced’’ after ‘‘in a judi-
cial proceeding’’. 
(h) Section 9 of such Act (7 U.S.C. 13) is amended— 
(1) in subsection (f)(1), by striking the period 
and inserting ‘‘; or’’; and 
(2) by redesignating subsection (f) as sub-
section (e). 
(i) Section 22(a)(2) of such Act (7 U.S.C. 25(a)(2)) 
is amended by striking ‘‘5b(b)(1)(E)’’ and inserting 
‘‘5b(c)(2)(H)’’. 
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(j) Section 1a(33)(A) of such Act (7 U.S.C. 
1a(33)(A)) is amended by striking ‘‘transactions’’ and all 
that follows and inserting ‘‘transactions— 
‘‘(i) by accepting bids or offers made 
by other participants that are open to mul-
tiple partipants in the facility or system; or 
‘‘(ii) through the interaction of mul-
tiple bids or multiple offers within a sys-
tem with a pre-determined non-discre-
tionary automated trade matching and exe-
cution algorithm.’’. 
(k) Section 14(d) of such Act (7 U.S.C. 18(d)) is 
amended— 
(1) by inserting ‘‘(1)’’ before ‘‘If’’; and 
(2) by adding after and below the end the fol-
lowing: 
‘‘(2) A reparation award shall be directly en-
forceable in district court as if it were a judgment 
pursuant to section 1963 of title 28, United States 
Code. This paragraph shall operate retroactively 
from the effective date of its enactment, and shall 
apply to all reparation awards for which a pro-
ceeding described in paragraph (1) is commenced 
within 3 years of the date of the Commission’s 
order.’’. 
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SEC. 13106. PORTFOLIO MARGINING AND SECURITY INDEX 
ISSUES. 
(a) The Secretary of the Treasury, the Chairman of 
the Board of Governors of the Federal Reserve System, 
the Chairman of the Securities and Exchange Commis-
sion, and the Chairman of the Commodity Futures Trad-
ing Commission shall work to ensure that the Securities 
and Exchange Commission (SEC), the Commodity Fu-
tures Trading Commission (CFTC), or both, as appro-
priate, have taken the actions required under subsection 
(b). 
(b) The SEC, the CFTC, or both, as appropriate, 
shall take action under their existing authorities to per-
mit— 
(1) by September 30, 2009, risk-based portfolio 
margining for security options and security futures 
products (as defined in section 1a(32) of the Com-
modity Exchange Act); and 
(2) by June 30, 2009, the trading of futures on 
certain security indexes by resolving issues related to 
foreign security indexes. 
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Subtitle B—Significant Price Dis-
covery Contracts on Exempt 
Commercial Markets 
SEC. 13201. SIGNIFICANT PRICE DISCOVERY CONTRACTS. 
(a) DEFINITIONS.—Section la of the Commodity Ex-
change Act (7 U.S.C. la) is amended— 
(1) by redesignating paragraph (33) as para-
graph (34); and 
(2) by inserting after paragraph (32) the fol-
lowing: 
‘‘(33) SIGNIFICANT
PRICE
DISCOVERY
CON-
TRACT.—The term ‘significant price discovery con-
tract’ means an agreement, contract, or transaction 
subject to section 2(h)(7).’’. 
(b) STANDARDS APPLICABLE TO SIGNIFICANT PRICE 
DISCOVERY CONTRACTS.—Section 2(h) of such Act (7 
U.S.C. 2(h)) is amended by adding at the end the fol-
lowing: 
‘‘(7) SIGNIFICANT
PRICE
DISCOVERY
CON-
TRACTS.— 
‘‘(A) IN
GENERAL.—An agreement, con-
tract, or transaction conducted in reliance on 
the exemption in paragraph (3) shall be subject 
to the provisions of subparagraphs (B) through 
(D), under such rules and regulations as the 
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Commission shall promulgate, provided that the 
Commission determines, in its discretion, that 
the agreement, contract, or transaction per-
forms a significant price discovery function as 
described in subparagraph (B). 
‘‘(B) SIGNIFICANT PRICE DISCOVERY DE-
TERMINATION.—In making a determination 
whether an agreement, contract, or transaction 
performs a significant price discovery function, 
the Commission shall consider, as appropriate: 
‘‘(i) PRICE LINKAGE.—The extent to 
which the agreement, contract, or trans-
action uses or otherwise relies on a daily or 
final settlement price, or other major price 
parameter, of a contract or contracts listed 
for trading on or subject to the rules of a 
designated contract market or a derivatives 
transaction execution facility, or a signifi-
cant price discovery contract traded on an 
electronic trading facility, to value a posi-
tion, transfer or convert a position, cash or 
financially settle a position, or close out a 
position. 
‘‘(ii) 
ARBITRAGE.—The 
extent 
to 
which the price for the agreement, con-
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