(b) INELIGIBILITY.—Except as provided in sub-
section (c), the producers on a farm shall not be eligible 
for assistance under section 3 with respect to losses to 
an insurable commodity or noninsurable commodity if the 
producers on the farm—
(1) in the case of an insurable commodity, did 
not obtain a policy or plan of insurance for the in-
surable commodity under the Federal Crop Insur-
ance Act for the crop incurring the losses; and 
(2) in the case of a noninsurable commodity, 
did not file the required paperwork, and pay the ad-
ministrative fee by the applicable State filing dead-
line, for the noninsurable commodity under section 
196 of the Federal Agriculture Improvement and 
Reform Act of 1996 for the crop incurring the 
losses. 
(c) CONTRACT WAIVER.—The Secretary may waive 
the application of subsection (b) to the producers on a 
farm if the producers on the farm enter into a contract 
with the Secretary under which the producers on the farm 
agree—
(1) in the case of an insurable commodity, to 
obtain a policy or plan of insurance under the Fed-
eral Crop Insurance Act for the insurable commodity 
for each of the next three crops that provides a level
of coverage at least equal to the level available under 
catastrophic risk protection; and 
(2) in the case of a noninsurable commodity, to 
file the required paperwork, and pay the administra-
tive fee by the applicable State filing deadline, for 
the noninsurable commodity for each of the next 
three crops under section 196 of the Federal Agri-
culture Improvement and Reform Act of 1996. 
(d) EFFECT OF VIOLATION.—On violation of a con-
tract under subsection (c) by a producer, the producer 
shall reimburse the Secretary for the full amount of the 
assistance provided to the producer under section 3. In 
the case of an insurable commodity, the Secretary shall 
also impose a civil money penalty for the violation in an 
amount equal to the producer-cost of a 65/100 crop insur-
ance policy on each crop for which the producer agreed 
to purchase crop insurance, but did not, in the three-year 
period. 
SEC. 6. REPLENISHMENT OF SECTION 32 FUNDS. 
The Secretary shall transfer $250,000,000 of funds 
of the Commodity Credit Corporation to the account avail-
able to the Secretary under section 32 of the Act of Au-
gust 24, 1935 (7 U.S.C. 612c).
SEC. 7. COMMODITY CREDIT CORPORATION. 
The Secretary shall use the funds, facilities, and au-
thorities of the Commodity Credit Corporation to carry 
out this Act. 
SEC. 8. REGULATIONS. 
(a) IN GENERAL.—The Secretary of Agriculture may 
promulgate such regulations as are necessary to imple-
ment this Act. 
(b) PROCEDURE.—The promulgation of the regula-
tions and administration of this Act shall be made without 
regard to—
(1) the notice and comment provisions of sec-
tion 553 of title 5, United States Code; 
(2) the Statement of Policy of the Secretary of 
Agriculture effective July 24, 1971 (36 Fed. Reg. 
13804), relating to notices of proposed rulemaking 
and public participation in rulemaking; and 
(3) chapter 35 of title 44, United States Code 
(commonly known as the ‘‘Paperwork Reduction 
Act’’). 
(c) CONGRESSIONAL REVIEW
OF AGENCY RULE-
MAKING.—In carrying out this section, the Secretary shall 
use the authority provided under section 808 of title 5, 
United States Code.
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