riod, or earlier upon the agreement of the Cor-
poration and the person receiving the payment,
the Corporation shall assume responsibility for
maintenance of a successful policy, as deter-
mined by the Corporation based on the market
share attained by the policy, the total number
of policies sold, the total amount of premium
paid, and the performance of the policy in the
States where the policy is sold.
‘‘(C) TREATMENT
OF
PAYMENT.—Pay-
ments made under subparagraph (A) for a pol-
icy or other material shall be considered as pay-
ment in full for the research and development
conducted with regard to the policy or material
and any property rights to the policy or mate-
rial.
‘‘(D) 
REIMBURSEMENT
AMOUNT.—The
Corporation shall determine the amount of the
payment under subparagraph (A) for an ap-
proved policy or other material based on the
complexity of the policy or material and the size
of the area in which the policy or material is ex-
pected to be used.’’.
(b) ISSUANCE OF REGULATIONS.—Not later than Oc-
tober 1, 2000, the Corporation shall issue final regulations
to carry out the amendment made by subsection (a).
SEC. 303. RESEARCH AND DEVELOPMENT, INCLUDING CON-
TRACTS REGARDING UNDERSERVED COM-
MODITIES.
(a) SUPPORT FOR PRIVATE RESEARCH AND DEVEL-
OPMENT.—Section 508(m) of the Federal Crop Insurance
Act (7 U.S.C. 1508(m)) is amended by adding at the end
the following new paragraph:
‘‘(4) PRIVATE RESEARCH AND DEVELOPMENT
OF POLICIES AND OTHER MATERIALS.—
‘‘(A) USE OF REIMBURSEMENT AUTHOR-
ITY.—To encourage and promote the necessary
research and development for policies, plans of
insurance, and related materials, including poli-
cies, plans, and materials under the livestock
pilot programs under subsection (h)(10), the
Corporation shall make full use of private re-
sources by providing payment for research and
development for approved policies and plans of
insurance, and related materials, pursuant to
subsection (h)(6).
‘‘(B) CONTRACTS FOR UNDERSERVED COM-
MODITIES.—In the event the Corporation deter-
mines that an agricultural commodity, including
a specialty crop, is not adequately served by
policies and plans of insurance and related ma-
terials submitted under subsection (h) or any
other provision of this title, the Corporation
may enter into a contract with any person or
entity with experience in crop insurance or farm
or ranch risk management, including univer-
sities, providers of crop insurance, and trade
and research organizations, to carry out re-
search and development for policies and plans
of insurance and related materials for that agri-
cultural commodity without regard to the limi-
tations contained in this title. A contract en-
tered into under this subparagraph may not
take effect before October 1, 2000.
‘‘(C) USE
OF
RESULTING
POLICIES
AND
PLANS.—The Corporation may offer any policy
or plan of insurance developed under subpara-
graph (B) that is approved by the Board.’’.
(b) RELIANCE ON PRIVATE DEVELOPMENT OF NEW
POLICIES.—Section 508(m)(2) of the Federal Crop Insur-
ance Act (7 U.S.C. 1508(m)(2)) is amended—
(1) by striking ‘‘EXCEPTION.—No action’’ and
inserting—
‘‘(2) EXCEPTIONS.—
‘‘(A) PRIVATE AVAILABILITY.—No action’’;
and—
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) PROHIBITED RESEARCH AND DEVEL-
OPMENT
BY
CORPORATION.—Notwithstanding
paragraph (1), on and after October 1, 2000,
the Corporation shall not conduct research and
development for any new policy or plan of in-
surance for an agricultural commodity offered
under this title. Any policy, plan of insurance,
or other material developed by the Corporation
under paragraph (1) before that date shall, at
the discretion of the Corporation, continue to be
offered for sale to producers consistent with
paragraph (4), except that such policies, plans
of insurance, or other material shall be consid-
ered to have satisfied the private contracting re-
quirements of such paragraph.’’.
SEC. 304. FUNDING FOR REIMBURSEMENT AND RESEARCH
AND DEVELOPMENT.
(a) EXPENDITURES.—Section 508(h)(6) of the Fed-
eral Crop Insurance Act (7 U.S.C. 1508(h)(6)), as added
by section 302(a) of this Act, is amended by adding at
the end the following new subparagraph:
‘‘(E) EXPENDITURES.—
‘‘(i) UNDERSERVED COMMODITIES.—
Of the total amount made available to pro-
vide payments under this paragraph and
subsection (m)(4)(B) for a fiscal year,
$10,000,000 shall be reserved for research
and development contracts under sub-
section (m)(4)(B). The Corporation may
use a portion of the reserved amount for
other purposes under this paragraph if the
Corporation determines that the entire
amount is not needed for such contracts
or, if the reserved amount is insufficient
for a fiscal year, may use amounts in ex-
cess of the reserved amount for such con-
tracts.
‘‘(ii) LIMITATION.—In providing pay-
ments under this paragraph and subsection
(m)(4)(B), the Corporation shall not obli-
gate or expend more than $55,000,000
during any fiscal year. ’’.
(b) FUNDING.—