Notes on 7 U.S.C. § 1506 : US Code - Notes
Search Notes on 7 U.S.C. § 1506 : US Code - Notes
(Feb. 16, 1938, ch. 30, title V, Sec. 506, 52 Stat. 73; June 21,
1941, ch. 214, Sec. 2, 55 Stat. 255; Aug. 1, 1947, ch. 440, Sec. 7,
61 Stat. 719; Aug. 25, 1949, ch. 512, Sec. 8, 63 Stat. 665; Pub. L.
96-365, title I, Secs. 103, 107(a), Sept. 26, 1980, 94 Stat. 1313,
1317; Pub. L. 101-624, title XXII, Secs. 2201(a), 2202, Nov. 28,
1990, 104 Stat. 3951, 3954; Pub. L. 102-237, title VI, Sec. 601(1),
(2), Dec. 13, 1991, 105 Stat. 1878; Pub. L. 103-66, title XIV, Sec.
1403(a), Aug. 10, 1993, 107 Stat. 333; Pub. L. 103-354, title I,
Secs. 104, 119(f)(1), Oct. 13, 1994, 108 Stat. 3181, 3208; Pub. L.
105-185, title V, Sec. 533, June 23, 1998, 112 Stat. 583; Pub. L.
106-224, title I, Secs. 121(b), 124(b), June 20, 2000, 114 Stat.
377, 378.)
REFERENCES IN TEXT
Section 405(c)(2)(C)(iii) of title 42, referred to in subsec.
(m)(1), was redesignated section 405(c)(2)(C)(iv) of title 42 by
Pub. L. 103-296, title III, Sec. 321(a)(9)(B), Aug. 15, 1994, 108
Stat. 1536.
AMENDMENTS
2000 - Subsec. (h). Pub. L. 106-224, Sec. 124(b), added subsec.
(h) and struck out heading and text of former subsec. (h). Text
read as follows: "The Corporation shall assemble data for the
purpose of establishing sound actuarial bases for insurance on
agricultural commodities."
Subsecs. (q) to (s). Pub. L. 106-224, Sec. 121(b), redesignated
subsecs. (r) and (s) as (q) and (r), respectively, and struck out
former subsec. (q), which related to program compliance by
insurance providers and required notice to any provider of any
error, omission, or failure to follow Corporation regulations or
procedures for which provider may be responsible and which may
result in a debt owed the Corporation.
1998 - Subsec. (s). Pub. L. 105-185 added subsec. (s).
1994 - Subsec. (d). Pub. L. 103-354, Sec. 119(f)(1), substituted
"1508(j)" for "1508(f)" in first sentence.
Subsec. (j). Pub. L. 103-354, Sec. 104(2), added subsec. (j).
Former subsec. (j) redesignated (k).
Subsec. (k). Pub. L. 103-354, Sec. 104(1), redesignated subsec.
(j) as (k). Former subsec. (k) redesignated (l).
Subsec. (l). Pub. L. 103-354, Sec. 104(1), (3), redesignated
subsec. (k) as (l), in first sentence inserted ", and issue
regulations," after "agreements", and in second sentence
substituted "contracts, agreements, or regulations" for "contracts
or agreements" wherever appearing. Former subsec. (l) redesignated
(m).
Subsec. (m). Pub. L. 103-354, Sec. 104(1), redesignated subsec.
(l) as (m). Former subsec. (m) redesignated (n).
Subsec. (n). Pub. L. 103-354, Sec. 104(1), redesignated subsec.
(m) as (n). Former subsec. (n) redesignated (o).
Subsec. (n)(1)(B). Pub. L. 103-354, Sec. 104(4), added subpar.
(B) and struck out former subpar. (B) which read as follows:
"disqualify the person from receiving any benefit under this
chapter for a period of not to exceed 10 years."
Subsec. (o). Pub. L. 103-354, Sec. 104(1), (5)(B), redesignated
subsec. (n) as (o) and reenacted heading without change.
Subsec. (o)(1). Pub. L. 103-354, Sec. 104(5)(B), designated
existing provisions as par. (1) and inserted heading. Former par.
(1) redesignated subpar. (A).
Subsec. (o)(1)(A). Pub. L. 103-354, Sec. 104(5)(A), (C),
redesignated former par. (1) as subpar. (A) and substituted "(as
defined by the Secretary) from obtaining Federal crop insurance"
for "from obtaining adequate Federal crop insurance, as determined
by the Corporation".
Subsec. (o)(1)(B). Pub. L. 103-354, Sec. 104(5)(A), redesignated
former par. (2) as subpar. (B).
Subsec. (o)(1)(C). Pub. L. 103-354, Sec. 104(5)(A), (D),
redesignated former par. (3) as subpar. (C) and inserted ", agents,
and loss adjusters" after "participating producers" and after
"identify insured producers".
Subsec. (o)(1)(D). Pub. L. 103-354, Sec. 104(5)(A), redesignated
former par. (4) as subpar. (D).
Subsec. (o)(2) to (4). Pub. L. 103-354, Sec. 104(5)(A), (E),
added pars. (2) and (3) and redesignated former pars. (2) to (4) as
subpars. (B) to (D), respectively, of par. (1) and realigned their
margins.
Subsecs. (p) to (r). Pub. L. 103-354, Sec. 104(6), added subsecs.
(p) to (r).
1993 - Subsec. (n). Pub. L. 103-66 added subsec. (n).
1991 - Subsec. (d). Pub. L. 102-237, Sec. 601(1), substituted
"section 1508(f)" for "section 1508(c)" and a period for semicolon
at end.
Subsec. (m)(1). Pub. L. 102-237, Sec. 601(2), in introductory
provisions substituted "willfully" for "wilfully" and in subpar.
(A) struck out "to" after "exceed".
1990 - Pub. L. 101-624, Sec. 2202(b)(1), substituted "General
powers" for "General powers of Corporation" as section catchline
and struck out "The Corporation - " before subsec. (a).
Subsec. (a). Pub. L. 101-624, Sec. 2202(b)(2), (13), inserted
heading and "The Corporation" and substituted period for semicolon
at end.
Subsec. (b). Pub. L. 101-624, Sec. 2202(b)(3), (13), inserted
heading and "The Corporation" and substituted period for semicolon
at end.
Subsec. (c). Pub. L. 101-624, Sec. 2202(b)(4), (13), inserted
heading and "The Corporation" and substituted period for semicolon
at end.
Subsec. (d). Pub. L. 101-624, Sec. 2202(b)(5), inserted heading
and "The Corporation,".
Subsec. (e). Pub. L. 101-624, Sec. 2202(b)(6), (13), inserted
heading and "The Corporation" and substituted period for semicolon
at end.
Subsec. (f). Pub. L. 101-624, Sec. 2202(b)(7), (13), inserted
heading and "The Corporation" and substituted period for semicolon
at end.
Subsec. (g). Pub. L. 101-624, Sec. 2202(b)(8), (13), inserted
heading and "The Corporation," and substituted period for semicolon
at end.
Subsec. (h). Pub. L. 101-624, Sec. 2202(b)(9), (13), inserted
heading and "The Corporation" and substituted period for semicolon
at end.
Subsec. (i). Pub. L. 101-624, Sec. 2202(b)(10), (14), inserted
heading and "The Corporation" and substituted period for "; and" at
end.
Subsec. (j). Pub. L. 101-624, Sec. 2202(b)(11), (14), inserted
heading and "The Corporation" and substituted period for "; and" at
end.
Subsec. (k). Pub. L. 101-624, Sec. 2202(b)(12), inserted heading
and "The Corporation".
Subsec. (l). Pub. L. 101-624, Sec. 2201(a), added subsec. (l).
Subsec. (m). Pub. L. 101-624, Sec. 2202(a), added subsec. (m).
1980 - Subsec. (c). Pub. L. 96-365, Sec. 103(1), substituted "may
purchase" for "may make contracts and purchase". See subsec. (k) of
this section.
Subsec. (d). Pub. L. 96-365, Sec. 103(2), substituted provision
granting exclusive original jurisdiction to district courts of the
United States, including district courts of the District of
Columbia and of any territory or possession, for prior grant to any
State court of record having general jurisdiction or any United
States district court, authorized intervention by the Corporation
in proceedings, and required suits against the Corporation to be
brought in the District of Columbia or in district wherein
plaintiff resides or is engaged in business.
Subsec. (f). Pub. L. 96-365, Sec. 103(3), substituted "use of the
United States mails" for "free use of the United States mails".
Subsec. (h). Pub. L. 96-365, Sec. 107(a), struck out authority
for conducting researches, surveys, and investigations relating to
crop insurance. See section 1508(i) of this title.
Subsec. (k). Pub. L. 96-365, Sec. 103(4), added subsec. (k).
1949 - Subsec. (h). Act Aug. 25, 1949, struck out obsolete
language and included authority for a study of the possibility of
developing some type of livestock insurance.
1947 - Subsec. (d). Act Aug. 1, 1947, provided for suits in State
courts of general jurisdiction or in United States district courts
regardless of amount in controversy.
1941 - Subsec. (h). Act June 21, 1941, substituted "and
preparatory to the application of the chapter to other basic
commodities when so provided by law, shall assemble data relative
to field corn, for the purpose of establishing a satisfactory
actuarial basis for such commodity" for "for wheat and other
agricultural commodities."
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-185, title V, Sec. 537, June 23, 1998, 112 Stat. 584,
provided that: "Except as provided in section 535 [112 Stat. 583],
this subtitle [subtitle C (Secs. 531-537) of title V of Pub. L. 105-
185, amending this section and sections 1508 and 1516 of this
title and enacting provisions set out as notes under this section]
and the amendments made by this subtitle take effect on July 1,
1998."
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-354 effective Oct. 13, 1994, and
applicable to provision of crop insurance under Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) beginning with 1995 crop
year, with such Act, as in effect on the day before Oct. 13, 1994,
to continue to apply with respect to 1994 crop year, see section
120 of Pub. L. 103-354, set out as a note under section 1502 of
this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 1403(c)(1) of Pub. L. 103-66 provided that: "Except as
provided in paragraph (2), this section [amending this section and
sections 1508 and 1508a of this title] and the amendments made by
this section shall become effective on October 1, 1993."
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-365 effective Sept. 26, 1980, see section
112 of Pub. L. 96-365, set out as a note under section 1504 of this
title.
REGULATIONS
Section 1403(c)(2) of Pub. L. 103-66 provided that: "Not later
than 30 days after the date of enactment of this Act [Aug. 10,
1993], the Secretary of Agriculture shall publish, for public
comment, proposed regulations to implement the amendments made by
this section [amending this section and sections 1508 and 1508a of
this title]."
TRANSFER OF FUNCTIONS
Administration of program of Federal Crop Insurance Corporation
transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3,
Sec. 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100. See note
set out under section 1503 of this title.
Wartime consolidation of Federal Crop Insurance Corporation into
Agricultural Conservation and Adjustment Administration, see note
set out under section 1503 of this title.
REQUIRED TERMS AND CONDITIONS OF STANDARD REINSURANCE AGREEMENTS
Pub. L. 106-224, title I, Sec. 148, June 20, 2000, 114 Stat. 394,
provided that: "Notwithstanding section 536 of the Agricultural
Research, Extension, and Education Reform Act of 1998 (7 U.S.C.
1506 note; Public Law 105-185), the Federal Crop Insurance
Corporation may renegotiate the Standard Reinsurance Agreement once
during the 2001 through 2005 reinsurance years."
Pub. L. 105-185, title V, Sec. 536, June 23, 1998, 112 Stat. 584,
provided that:
"(a) Definitions. - In this section, the terms 'approved
insurance provider' and 'Corporation' have the meanings given the
terms in section 502(b) of the Federal Crop Insurance Act (7 U.S.C.
1502(b)).
"(b) Terms and Conditions. -
"(1) Incorporation of amendments. - For each of the 1999 and
subsequent reinsurance years, the Corporation shall ensure that
each Standard Reinsurance Agreement between an approved insurance
provider and the Corporation reflects the amendments to the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) that are made
by this subtitle [see Effective Date of 1998 Amendment note
above] to the extent the amendments are applicable to approved
insurance providers.
"(2) Retention of existing provisions. - Except to the extent
necessary to implement the amendments made by this subtitle, each
Standard Reinsurance Agreement described in paragraph (1) shall
contain the following provisions of the Standard Reinsurance
Agreement for the 1998 reinsurance year:
"(A) Section II, concerning the terms of reinsurance and
underwriting gain and loss for an approved insurance provider.
"(B) Section III, concerning the terms for subsidies and
administrative fees for an approved insurance provider.
"(C) Section IV, concerning the terms for loss adjustment for
an approved insurance provider under catastrophic risk
protection.
"(D) Section V.C., concerning interest payments between the
Corporation and an approved insurance provider.
"(E) Section V.I.5., concerning liquidated damages.
"(c) Implementation. - To implement this subtitle and the
amendments made by this subtitle, the Corporation is not required
to amend provisions of the Standard Reinsurance Agreement not
specifically affected by this subtitle or an amendment made by this
subtitle."
CROP INSURANCE PROVIDER EVALUATION
Section 118 of Pub. L. 103-354 provided that:
"(a) In General. - The Comptroller General of the United States
and the Federal Crop Insurance Corporation (referred to in this
section as the 'Corporation') shall jointly evaluate the financial
arrangement between the Corporation and approved insurance
providers to determine the quality, costs, and efficiencies of
providing the benefits of multiple peril crop insurance to
producers of agricultural commodities covered under the Federal
Crop Insurance Act (7 U.S.C. 1501 et seq.).
"(b) Collection of Information and Proposals. - The Corporation
shall require private insurance providers and agents to supply, and
the private insurance providers and agents shall supply, records
and information necessary to make the determinations and
evaluations required under this section. The Corporation shall
solicit from the approved insurance providers and agents proposals
for modifying or altering the requirements, regulations,
procedures, and processes related to implementing the Federal Crop
Insurance Act to reduce the operating and administrative costs of
the providers and agents.
"(c) Initial Report. - Not later than 180 days after receipt of
information and cost-reduction proposals under subsection (b), the
Corporation shall evaluate the information and proposals obtained
and report the results of the evaluation to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate.
"(d) Final Report. - Not later than 2 years after the date of
enactment of this Act [Oct. 13, 1994], the Comptroller General and
the Corporation shall submit a final report that provides the
evaluation required under subsection (a) to the Committee on
Agriculture of the House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate. In making the
evaluation, the Comptroller General and the Corporation shall -
"(1) consider the changes made by the Corporation in response
to increased program participation resulting from the enactment
of this Act;
"(2) include an evaluation and opinion of the accuracy and
reasonableness of -
"(A) the average actual costs for approved insurance
providers to deliver multiple peril crop insurance;
"(B) the cost per policy of complying with the requirements,
regulations, procedures, and processes of the Federal Crop
Insurance Act;
"(C) the cost differences for various provider firm sizes and
any business delivered by the Federal Government;
"(D) the adequacy of the standard reimbursement for potential
new providers; and
"(E) the identification of any new costs related to the
enactment of this Act not previously identified in the
information reported by the providers;
"(3) compare delivery costs of multiple peril crop insurance to
other insurance coverages that the provider may sell and
determine the extent, if any, to which any funds provided to
carry out the Federal Crop Insurance Act are being used to fund
any other business enterprise operated by the provider;
"(4)(A) assess alternative methods for reimbursing providers
for reasonable and necessary expenses associated with delivery of
multiple peril crop insurance;
"(B) recommend changes under this paragraph that reasonably
demonstrate the need to achieve the greatest operating
efficiencies on the part of the provider and the Corporation has
been recognized; and
"(C) identify areas for improved operating efficiencies, if
any, in the requirements made by the Corporation for compliance
and program integrity;
"(5) assess the potential for alternative forms of reinsurance
arrangements for providers of different firm sizes, taking into
consideration -
"(A) the need to achieve a reasonable return on the capital
of the provider compared to other lines of insurance;
"(B) the relative risk borne by the provider for the
different lines of insurance;
"(C) the availability and price of commercial reinsurance;
and
"(D) any additional costs that may be incurred by the Federal
Government in carrying out the Federal Crop Insurance Act; and
"(6) include an analysis of the effect of the current or
proposed reinsurance arrangements on providers having different
business levels.
"(e) Information. -
"(1) Privacy. - In conducting the evaluation required by this
section, the Comptroller General and the Corporation shall
maintain the privacy of proprietary information.
"(2) Subpoenas. - The Comptroller General shall have the power
to subpoena information relevant to the evaluation required by
this section from any private insurance provider. The Comptroller
General shall allow the Corporation access to the information
subpoenaed taking into consideration the necessity of preserving
the privacy of proprietary information."
(!1) See References in Text note below.