(1) by striking paragraph (2) and inserting the
following:
‘‘(2) RECORDS.—To be eligible for assistance
under this section, a producer shall provide annually
to the Secretary, acting through the Farm Service
Agency, records of crop acreage, acreage yields, and
production for each eligible crop.’’; and
(2) in paragraph (3), by inserting ‘‘annual’’
after ‘‘shall provide’’.
SEC. 211. FEES FOR PLANS OF INSURANCE.
Section 508(h)(5) of the Federal Crop Insurance Act
(7 U.S.C. 1508(h)(5)) is amended—
(1) by striking ‘‘Any policy’’ and inserting the
following:
‘‘(A) IN GENERAL.—Any policy’’; and
(2) by adding at the end the following:
‘‘(B) FEES
FOR
NEW
PLANS
OF
INSUR-
ANCE.—
‘‘(i) IN GENERAL.—If an approved in-
surance provider elects to sell a plan of in-
surance that was developed by another ap-
proved insurance provider after the date of
enactment of this subparagraph and the
plan of insurance offered coverage that was
not available for any crop at the time the
plan of insurance was approved by the
Board (as determined by the Corporation),
the approved insurance provider that devel-
oped the plan of insurance shall have the
right to receive a fee from the approved in-
surance provider that elects to sell the plan
of insurance.
‘‘(ii) AMOUNT.—
‘‘(I) IN
GENERAL.—Subject to
subclause (II), the amount of the fee
that is payable by an approved insur-
ance provider for a plan of insurance
under clause (i) shall be an amount
that is—
‘‘(aa) determined by the ap-
proved insurance provider that
developed the plan; and
‘‘(bb) 
approved 
by 
the
Board.
‘‘(II) 
APPROVAL.—The 
Board
shall not approve the amount of a fee
under clause (i) if the amount of the
fee unnecessarily inhibits the use of
the plan of insurance, as determined
by the Board.
‘‘(C) PAYMENTS.—The Corporation shall
annually—
‘‘(i) collect from an approved insur-
ance provider the amount of any fees that
are payable by the approved insurance pro-
vider under subparagraph (B); and
‘‘(ii) credit any fees that are payable
to an approved insurance provider under
subparagraph (B).’’.
SEC. 212. FLEXIBLE SUBSIDY PILOT PROGRAM.
Section 508(h) of the Federal Crop Insurance Act (7
U.S.C. 1508(h)) is amended by adding at the end the fol-
lowing:
‘‘(11) FLEXIBLE SUBSIDY PILOT PROGRAM.—
For each of the 2000 through 2002 crop years, the
Corporation shall carry out a pilot program under
which flexible subsidies are provided under this title
to encourage private sector innovation through ex-
clusive marketing rights and premium rate competi-
tion.’’.
SEC. 213. REINSURANCE AGREEMENTS.
Section 508(k) of the Federal Crop Insurance Act (7
U.S.C. 1508(k)) is amended by striking paragraph (3) and
inserting the following:
‘‘(3) REINSURANCE AGREEMENTS.—
‘‘(A) SHARE OF RISK.—Each reinsurance
agreement of the Corporation with a reinsured
company shall require the reinsured company to
bear a sufficient share of any potential loss
under the agreement so as to ensure that the
reinsured company will sell and service policies
of insurance in a sound and prudent manner,
taking into consideration the financial condition
of the reinsured company and the availability of
private reinsurance.
‘‘(B) COMPLIANCE.—To promote program
compliance and integrity, the Corporation, after
notice and an opportunity for a hearing on the
record—
‘‘(i)(I) shall assess civil fines in an
amount not to exceed $10,000 per viola-
tion against agents, loss adjusters, and ap-
proved insurance providers that are deter-
mined by the Corporation to have recur-
ring compliance problems; and
‘‘(II) may deposit any civil fines col-
lected under subclause (I) in the insurance
fund established under section 516(c); and
‘‘(ii) shall disqualify the agents, loss
adjusters, and approved insurance pro-
viders described in clause (i)(I) from par-
ticipation in the Federal crop insurance
program for a period not to exceed 5 years.
‘‘(C) REVIEW OF AGREEMENTS.—As soon
as practicable after the date of enactment of
this subparagraph and regularly thereafter, in
consultation with the Office of Private Sector
Partnership, the Corporation shall review the
Standard Reinsurance Agreement issued by the
Corporation to ensure that the allocation of risk
between the Corporation and the reinsured
companies is equitable, as determined by the
Corporation.’’.
SEC. 214. FUNDING.
Section 516 of the Federal Crop Insurance Act (7
U.S.C. 1516) is amended—
(1) in subsection (a)(2)—
(A) in subparagraph (A), by striking
‘‘and’’ at the end;
(B) in subparagraph (B), by striking the
period at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(C) salaries and expenses of the Office of
Private Sector Partnership.’’;
(2) in subsection (b)(1)—