I 113th CONGRESS 1st Session H. R. 2260 IN THE HOUSE OF REPRESENTATIVES June 5, 2013 Mr. Thompson of California (for himself and Mr. Fortenberry ) introduced the following bill; which was referred to the Committee on Agriculture A BILL To amend the Food Security Act of 1985 to ensure basic conservation measures are implemented by farmers who receive Federal crop insurance premium assistance.

1. Short title This Act may be cited as the Crop Insurance Accountability Act of 2013 . 2. Highly erodible land and wetland conservation for crop insurance (a) Highly erodible land program ineligibility (1) In general Section 1211(a)(1) of the Food Security Act of 1985 (16 U.S.C. 3811(a)(1)) is amended— (A) in subparagraph (C), by striking or at the end; (B) in subparagraph (D), by adding or at the end; and (C) by adding at the end the following: (E) any portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq. ), on the condition that if a person is determined to have committed a violation under this subsection during a crop year, ineligibility under this subparagraph shall— (i) only apply to reinsurance years subsequent to the date of final determination of a violation, including all administrative appeals; and (ii) not apply to the existing reinsurance year or any reinsurance year prior to the date of final determination. . (2) Exemptions Section 1212(a)(2) of the Food Security Act of 1985 ( 16 U.S.C. 3812(a)(2) ) is amended— (A) in the first sentence, by striking (2) If, and inserting the following: (2) Eligibility based on compliance with conservation plan (A) In general If, ; (B) in the second sentence, by striking In carrying and inserting the following: (B) Minimization of documentation In carrying ; and (C) by adding at the end the following: (C) Crop insurance (i) In general Notwithstanding section 1211(a)— (I) in the case of a person that is subject to section 1211 for the first time after May 1, 2013, due to the amendment made by section 2(a) of the Crop Insurance Accountability Act of 2013 , any person who produces an agricultural commodity on the land that is the basis of the payments described in section 1211(a)(1)(E) shall have 5 reinsurance years after the date on which such payments become subject to section 1211 to develop and comply with an approved conservation plan so as to maintain eligibility for such payments; and (II) in the case of a person that the Secretary determines would have been in violation of section 1211(a) if the person had continued participation in the programs requiring compliance at any time after the date of enactment of the Food, Conservation, and Energy Act of 2008 ( 7 U.S.C. 8701 et seq. ) and is currently in violation of section 1211(a), the person shall have 2 reinsurance years after the date on which the payments described in section 1211(a)(1)(E) become subject to section 1211 to develop and comply with an approved conservation plan, as determined by the Secretary, so as to maintain eligibility for such payments. (ii) Certification (I) In general Beginning with the first full reinsurance year immediately following the date of enactment of this subparagraph, all persons seeking eligibility for the payment of a portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq. ) shall provide certification of compliance with section 1211(a), as determined by the Secretary. (II) Timely evaluation The Secretary shall evaluate the certification in a timely manner and— (aa) a person who has properly complied with certification shall be held harmless with regard to eligibility during the period of evaluation; and (bb) if the Secretary fails to evaluate the certification in a timely manner and the person is subsequently found to be in violation of section 1211(a), ineligibility shall not apply to the person for that violation. (III) Equitable contribution (aa) In general If a person fails to provide certification of compliance to the Secretary as required and is subsequently found in violation of section 1211(a), the Secretary shall determine the amount of an equitable contribution to conservation in accordance with section 1241(e) by the person for the violation. (bb) Limitation The contribution shall not exceed the total of the portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance for all years the person is determined to have been in violation subsequent to the date on which certification was first required under this clause. . (b) Wetland conservation program ineligibility Section 1221 of the Food Security Act of 1985 ( 16 U.S.C. 3821 ) is amended— (1) in subsection (b), by adding at the end the following: (4) Crop insurance (A) In general Except as provided in this paragraph, a person subject to a final determination, including all administrative appeals, of a violation of subsection (c) shall have 1 reinsurance year to initiate a conservation plan to remedy the violation, as determined by the Secretary, before becoming ineligible under that subsection in the following reinsurance year to receive any payment of any portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq. ). (B) Applicability In the case of a person that is subject to this subsection or subsection (d) for the first time due to the amendment made by section 2(b) of the Crop Insurance Accountability Act of 2013 , the person shall have 2 reinsurance years after the date of final determination, including all administrative appeals, to take such steps as the Secretary determines appropriate to remedy or mitigate the violation in accordance with subsection (c). (C) Good faith If the Secretary determines that a person subject to a final determination, including all administrative appeals, of a violation of subsection (c) acted in good faith and without intent to violate this section as described in section 1222(h), the Secretary shall give the person 1 reinsurance year to begin mitigation, restoration, or such other steps as are determined necessary by the Secretary. (D) Tenant relief (i) In general If a tenant is determined to be ineligible for payments and other benefits under this section, the Secretary may limit the ineligibility only to the farm that is the basis for the ineligibility determination if the tenant has established, to the satisfaction of the Secretary that— (I) the tenant has made a good faith effort to meet the requirements of this section, including enlisting the assistance of the Secretary to obtain a reasonable conservation plan for restoration or mitigation for the farm; (II) the landlord on the farm refuses to comply with the plan on the farm; and (III) the Secretary determines that the lack of compliance is not a part of a scheme or device to avoid the compliance. (ii) Report The Secretary shall provide an annual report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate concerning the ineligibility determinations limited during the previous 12-month period under this subparagraph. (E) Certification (i) In general Beginning with the first full reinsurance year immediately following the date of enactment of this paragraph, all persons seeking eligibility for the payment of a portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq. ) shall provide certification of compliance with this section as determined by the Secretary. (ii) Timely evaluation The Secretary shall evaluate the certification in a timely manner and— (I) a person who has properly complied with certification shall be held harmless with regard to eligibility during the period of evaluation; and (II) if the Secretary fails to evaluate the certification in a timely manner and the person is subsequently found to be in violation of subsection (c), ineligibility shall not apply to the person for that violation. (iii) Equitable contribution (I) In general If a person fails to provide certification of compliance to the Secretary as required and is subsequently found in violation of subsection (c), the Secretary shall determine the amount of an equitable contribution to conservation in accordance with section 1241(e) by the person for the violation. (II) Limitation The contribution shall not exceed the total of the portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance for all years the person is determined to have been in violation subsequent to the date on which certification was first required under this subparagraph. ; (2) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and (3) by inserting after subsection (b) the following: (c) Ineligibility for crop insurance premium assistance (1) In general If a person is determined to have committed a violation under subsection (a) or (d) during a crop year, the person shall be ineligible to receive any payment of any portion of the premium paid by the Federal Crop Insurance Corporation for a policy or plan of insurance under the Federal Crop Insurance Act ( 7 U.S.C. 1501 et seq. ). (2) Applicability Ineligibility under this subsection shall— (A) only apply to reinsurance years subsequent to the date of final determination of a violation, including all administrative appeals; and (B) not apply to— (i) the existing reinsurance year; or (ii) any reinsurance year prior to the date of final determination. (3) Date of conversion Notwithstanding subsection (d), ineligibility for crop insurance premium assistance shall apply as follows: (A) In the case of wetland that the Secretary determines was converted after the date of enactment of the Food, Conservation, and Energy Act of 2008 ( 7 U.S.C. 8701 et seq. ) but on or before May 1, 2013, and continues to be in violation, the person shall have 2 reinsurance years after the date on which this subsection applies, to begin the mitigation process, as determined by the Secretary. (B) In the case of wetland that the Secretary determines was converted after May 1, 2013— (i) subject to clause (ii), the person shall be ineligible to receive crop insurance premium subsidies in subsequent reinsurance years unless section 1222(b) applies; and (ii) for any violation that the Secretary determines impacts less than 5 acres of the entire farm, the person may pay a contribution in accordance with section 1241(e) in an amount equal to 150 percent of the cost of mitigation, as determined by the Secretary, for wetland restoration in lieu of ineligibility to receive crop insurance premium assistance. (C) In the case of a wetland that the Secretary determines was converted prior to the date of enactment of the Food, Conservation, and Energy Act of 2008 (7 U.S.C. 8701 et seq.), ineligibility under this subsection shall not apply. (D) In the case of an agricultural commodity for which an individual policy or plan of insurance is available for the first time to the person after the date of enactment of the Crop Insurance Accountability Act of 2013 — (i) ineligibility shall apply only to conversions that take place after the date on which the policy or plan of insurance first becomes available to the person; and (ii) the person shall take such steps as the Secretary determines appropriate to mitigate any prior conversion in a timely manner but not to exceed 2 calendar years. (4) Certification (A) In general In enforcing eligibility under this subsection, the Secretary shall use existing processes and procedures for certifying compliance. (B) Responsibility The Secretary, acting through the agencies of the Department of Agriculture, shall be solely responsible for determining whether a producer is eligible to receive crop insurance premium subsidies in accordance with this subsection. (C) Limitation The Secretary shall ensure that no agent, approved insurance provider, or employee or contractor of an agency or approved insurance provider, bears responsibility or liability for the eligibility of an insured producer under this subsection, other than in cases of misrepresentation, fraud, or a scheme or device to avoid compliance. . 3. Technical assistance Section 1241(b) of the Food Security Act of 1985 ( 16 U.S.C. 3841(b) ) is amended to read as follows: (b) Technical assistance (1) In general Effective for fiscal year 2005 and each subsequent fiscal year, Commodity Credit Corporation funds made available for each of the programs specified in paragraphs (1) through (7) of subsection (a)— (A) shall be available for the provision of technical assistance for the programs for which funds are made available, as necessary to implement the programs effectively; and (B) shall not be available for the provision of technical assistance for conservation programs specified in subsection (a) other than the program for which the funds were made available. (2) Priority (A) In general In the delivery of technical assistance under the Soil Conservation and Domestic Allotment Act ( 16 U.S.C. 590a et seq. ), the Secretary shall give priority to producers who request technical assistance from the Secretary in order to comply for the first time with the requirements of subtitle B and subtitle C of this title as a result of the amendments made by section 2 of the Crop Insurance Accountability Act of 2013 . (B) Report Not later than 270 days after the date of enactment of the Crop Insurance Accountability Act of 2013 , 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 regarding the extent to which the conservation compliance requirements contained in the amendments made by section 2 of the Crop Insurance Accountability Act of 2013 apply to and impact specialty crop growers, including national analysis and surveys to determine the extent of specialty crop acreage on highly erodible land and wetlands. .