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year in which the benefit is sought, if such coverage is
offered by the Federal Crop Insurance Corporation.’’.
(f) WHEAT.—Section 107B(c) of the Agricultural Act
of 1949 (7 U.S.C. 1444b–3a(c)) is amended—
(1) by striking paragraph (1)(G); and
(2) by striking paragraph (2) and inserting in
lieu thereof the following:
‘‘(2) CROP INSURANCE REQUIREMENT.—As a
condition of receiving any benefit (including pay-
ments) under this section, a producer must obtain at
least catastrophic risk protection insurance coverage
under section 508(b) of the Federal Crop Insurance
Act for the crop and crop year in which the benefit
is sought, if such coverage is offered by the Federal
Crop Insurance Corporation.’’.
(g) PEANUTS.—Section 108B of the Agricultural Act
of 1949 (7 U.S.C. 1445c–3) is amended—
(1) by redesignating subsection (h) as sub-
section (i); and
(2) by inserting after subsection (g) the follow-
ing new subsection:
‘‘(h) CROP INSURANCE REQUIREMENT.—As a condi-
tion of receiving any benefit (including payments) under
this section, a producer must obtain at least catastrophic
risk protection insurance coverage under section 508(b)
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of the Federal Crop Insurance Act for the crop and crop
year in which the benefit is sought, if such coverage is
offered by the Federal Crop Insurance Corporation.’’.
(h) OILSEEDS.—Section 205 of the Agricultural Act
of 1949 (7 U.S.C. 1446f) is amended—
(1) by redesignating subsection (n) as sub-
section (o); and
(2) by inserting after subsection (m) the follow-
ing new subsection:
‘‘(n) CROP INSURANCE REQUIREMENT.—As a condi-
tion of receiving any benefit (including payments) under
this section, a producer must obtain at least catastrophic
risk protection insurance coverage under section 508(b)
of the Federal Crop Insurance Act for the crop and crop
year in which the benefit is sought, if such coverage is
offered by the Federal Crop Insurance Corporation.’’.
(i) SUGAR.—Section 206 of the Agricultural Act of
1949 (7 U.S.C. 1446g) is amended—
(1) by redesignating subsection (j) as sub-
section (k); and
(2) by inserting after subsection (i) the follow-
ing new subsection:
‘‘(j) CROP INSURANCE REQUIREMENT.—As a condi-
tion of receiving any benefit (including payments) under
this section, a producer must obtain at least catastrophic
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risk protection insurance coverage under section 508(b)
of the Federal Crop Insurance Act for the crop and crop
year in which the benefit is sought, if such coverage is
offered by the Federal Crop Insurance Corporation.’’.
(j) HONEY.—Section 207 of the Agricultural Act of
1949 (7 U.S.C. 1446h) is amended—
(1) by redesignating subsection (j) as sub-
section (k); and
(2) by inserting after subsection (i) the follow-
ing new subsection:
‘‘(j) CROP INSURANCE REQUIREMENT.—As a condi-
tion of receiving any benefit (including payments) under
this section, a producer must obtain at least catastrophic
risk protection insurance coverage under section 508(b)
of the Federal Crop Insurance Act for the crop and crop
year in which the benefit is sought, if such coverage is
offered by the Federal Crop Insurance Corporation.’’.
(k) DISASTER PAYMENTS.—Section 208 of the Agri-
cultural Act of 1949 (7 U.S.C. 1446i) is repealed.
SEC. 12. ELIMINATION OF GENDER REFERENCES.
(a) MANAGEMENT OF CORPORATION.—Section 505
of the Federal Crop Insurance Act (7 U.S.C. 1505) is
amended—
(1) in subsection (a), by striking the third sen-
tence and inserting ‘‘The Board shall be appointed
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by, and hold office at the pleasure of, the Secretary.
The Secretary shall not be a member of the Board.’’;
and
(2) in subsection (d)—
(A) by striking ‘‘upon him’’; and
(B) by striking ‘‘He shall be appointed
by,’’ and inserting ‘‘The manager shall be ap-
pointed by,’’.
(b) PERSONNEL.—Section 507 of such Act (7 U.S.C.
1507) is amended—
(1) in subsection (a), by striking ‘‘as he may
determine: Provided, That’’ and inserting ‘‘as the
Secretary may determine appropriate. However,’’;
and
(2) in subsection (d), by striking ‘‘as he may re-
quest’’ and inserting ‘‘that the Secretary requests’’.
(c) INDEMNITIES EXEMPT FROM LEVY.—Section
509 of such Act (7 U.S.C. 1509) is amended by striking
‘‘or his estate’’ and inserting ‘‘or the estate of the in-
sured’’.
SEC. 13. GAO CROP INSURANCE PROVIDER STUDY.
(a) The General Accounting Office shall, within 2
years of enactment, investigate the contractual relation-
ships between the Federal Crop Insurance Corporation
and approved insurance providers to determine the qual-
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ity, costs and efficiency of the provision of multiperil crop
insurance to producers of agricultural commodities cov-
ered under the Federal Crop Insurance Act. The study
shall be completed in two parts. The first, to be completed
within one year of enactment, shall examine the currently
available data to make the determinations required by this
section. The second part shall examine the changes that
occur because of expansion of the program as participation
increases.
(b) This study shall include, but not be limited to,
an investigation of providers’ actual cost of delivery of
multiperil crop insurance for which providers receive reim-
bursement from the Corporation, cost differences for dif-
ferent provider firm sizes, and changes in cost resulting
from expansion of the program. The study shall also com-
pare delivery costs of multiperil crop insurance to other
insurance coverage that the provider may sell and identify
any cross-subsidization from federally reimbursed delivery
to delivery costs of other insurance coverage.
(c) The study shall assess, to the extent practicable,
alternative methods of reimbursing delivery costs to pro-
viders. In addition, the study shall identify unnecessary
expenditure, if any, required by the Corporation for com-
pliance and program integrity.
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(d) In addition, the study shall include, but not be
limited to, the provisions of the standard reinsurance
agreement between the Corporation and approved provid-
ers including the risk transferred to Corporation under the
terms of the agreement, the return on providers’ capital,
a determination of the return on capital relative to dif-
ferences in provider firm size, and a determination of the
return on providers’ capital in multiperil crop insurance
relative to other insurance coverage.
(e) The study shall assess, to the extent practicable,
the potential for provider firm concentration in the
multiperil crop insurance industry and any economic dis-
tortions that might occur from such concentration.
(f) In conducting this study, the General Accounting
Office shall maintain the privacy of provider proprietary
information. The General Accounting Office shall have full
powers to subpoena any required information from any
provider firm.
SEC. 14. EFFECTIVE DATE.
Except as provided in section 10(b) and section 13,
this Act and the amendments made by this Act shall take
effect on the date of the enactment of this Act and shall
apply to the provision of crop insurance under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.) beginning
with the 1995 crop year. With respect to the 1994 crop
103D CONGRESS
2D SESSION
H. R. 4217
AN ACT
To reform the Federal crop insurance program, and
for other purposes.