7 U.S.C. § 1505 — Management of Corporation

Page 800 TITLE 7—AGRICULTURE § 1504a Statutory Notes and Related Subsidiaries 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.) begin- ning 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 1980 AMENDMENT Pub. L. 96–365, title I, § 112, Sept. 26, 1980, 94 Stat. 1319, provided that: ‘‘Except as otherwise provided in this Act, the provisions of this Act amending the Federal Crop Insurance Act [amending sections 1504, 1505 to 1507, 1508, and 1518 of this title and repealing section 1515 of this title] shall become effective on the date of enactment of this Act [Sept. 26, 1980].’’ Pub. L. 96–365, title I, § 101(a), Sept. 26, 1980, 94 Stat. 1312, provided that the amendment made by section 101(a) is effective Oct. 1, 1980. CANCELLATION OF OUTSTANDING RECEIPTS FOR STOCK IN EXCESS OF $27,000,000 Act Aug. 25, 1949, ch. 512, § 5, 63 Stat. 665, provided that: ‘‘The Secretary of the Treasury is authorized and directed to cancel, without consideration, outstanding receipts for payments for or on account of the stock of the Corporation in excess of $27,000,000.’’ INSTITUTION OF EXPANDED PROGRAM; PAYMENT OF COST FOR FISCAL YEAR 1950 Act Aug. 25, 1949, ch. 512, § 11, 63 Stat. 666, provided that: ‘‘The expanded program authorized herein [sec- tions 1504, 1505, 1506, 1507, and 1508 of this title] shall be instituted beginning with the 1950 crop year, the addi- tional cost for fiscal year 1950 to be financed, pending the appropriation of supplemental funds, from any ap- propriation available for operating and administrative expenses of the Corporation for such fiscal year.’’ Executive Documents TRANSFER OF FUNCTIONS Administration of program of Federal Crop Insurance Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, § 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 Ad- justment Administration, see note set out under sec- tion 1503 of this title. § 1504a. Capitalization of Corporation The payment for capital stock in the Federal Crop Insurance Corporation shall be effected by transfer of funds on the books of the Treasury Department to the credit of the Corporation. (June 27, 1940, ch. 437, title I, 54 Stat. 640.) Editorial Notes CODIFICATION Section was not enacted as part of the Federal Crop Insurance Act which comprises this subchapter. Executive Documents TRANSFER OF FUNCTIONS Administration of program of Federal Crop Insurance Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, § 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 Ad- justment Administration, see note set out under sec- tion 1503 of this title. § 1505. Management of Corporation (a) Board of Directors (1) Establishment The management of the Corporation shall be vested in a Board of Directors subject to the general supervision of the Secretary. (2) Composition The Board shall consist of only the following members: (A) The manager of the Corporation, who shall serve as a nonvoting ex officio member. (B) The Under Secretary of Agriculture re- sponsible for the Federal crop insurance pro- gram. (C) One additional Under Secretary of Ag- riculture (as designated by the Secretary). (D) The Chief Economist of the Depart- ment of Agriculture. (E) One person experienced in the crop in- surance business. (F) One person experienced in reinsurance or the regulation of insurance. (G) Four active producers who are policy holders, are from different geographic areas of the United States, and represent a cross- section of agricultural commodities grown in the United States, including at least one specialty crop producer. (3) Appointment of private sector members The members of the Board described in sub- paragraphs (E), (F), and (G) of paragraph (2)— (A) shall be appointed by, and hold office at the pleasure of, the Secretary; (B) shall not be otherwise employed by the Federal Government; (C) shall be appointed to staggered 4-year terms, as determined by the Secretary; and (D) shall serve not more than two consecu- tive terms. (4) Chairperson The Board shall select a member of the Board to serve as Chairperson. (b) Vacancies Vacancies in the Board so long as there shall be four members in office shall not impair the powers of the Board to execute the functions of the Corporation, and four of the members in of- fice shall constitute a quorum for the trans- action of the business of the Board. (c) Compensation The Directors of the Corporation who are em- ployed in the Department shall receive no addi- tional compensation for their services as such Directors but may be allowed necessary trav- eling and subsistence expenses when engaged in business of the Corporation, outside of the Dis- trict of Columbia. The Directors of the Corpora- tion who are not employed by the Federal Gov- ernment shall be paid such compensation for their services as Directors as the Secretary shall determine, but such compensation shall not ex- ceed the daily equivalent of the rate prescribed Page 801 TITLE 7—AGRICULTURE § 1505 for grade GS–18 under section 5332 of title 5 when actually employed, and actual necessary trav- eling and subsistence expenses, or a per diem al- lowance in lieu of subsistence expenses, as au- thorized by section 5703 of title 5 for persons in Government service employed intermittently, when on the business of the Corporation away from their homes or regular places of business. (d) Manager of Corporation The manager of the Corporation shall be its chief executive officer, with such power and au- thority as may be conferred by the Board. The manager shall be appointed by, and hold office at the pleasure of, the Secretary. (e) Expert review of policies, plans of insurance, and related material (1) Review by experts The Board shall establish procedures under which any policy or plan of insurance, as well as any related material or modification of such a policy or plan of insurance, to be of- fered under this subchapter shall be subject to independent reviews by persons experienced as actuaries and in underwriting, as determined by the Board. (2) Review of Corporation policies and plans Except as provided in paragraph (3), the Board shall contract with at least five persons to each conduct a review of the policy or plan of insurance, of whom— (A) not more than one person may be em- ployed by the Federal Government; and (B) at least one person must be designated by approved insurance providers pursuant to procedures determined by the Board. (3) Review of private submissions If the reviews under paragraph (1) cover a policy or plan of insurance, or any related ma- terial or modification of a policy or plan of in- surance, submitted under section 1508(h) of this title— (A) the Board shall contract with at least five persons to each conduct a review of the policy or plan of insurance, of whom— (i) not more than one person may be em- ployed by the Federal Government; and (ii) none may be employed by an ap- proved insurance provider; and (B) each review must be completed and submitted to the Board not later than 30 days prior to the end of the 120-day period described in section 1508(h)(4)(D) of this title. (4) Consideration of reviews The Board shall include reviews conducted under this subsection as part of the consider- ation of any policy or plan or insurance, or any related material or modification of a pol- icy or plan of insurance, proposed to be offered under this subchapter. (5) Funding of reviews Each contract to conduct a review under this subsection shall be funded from amounts made available under section 1516(b)(2)(A)(ii) of this title. (6) Relation to other authority The contract authority provided in this sub- section is in addition to any other contracting authority that may be exercised by the Board under section 1506(l) of this title. (Feb. 16, 1938, ch. 30, title V, § 505, 52 Stat. 72; Aug. 1, 1947, ch. 440, § 8, 61 Stat. 719; Aug. 25, 1949, ch. 512, § 7, 63 Stat. 665; Pub. L. 96–365, title I, § 102, Sept. 26, 1980, 94 Stat. 1312; Pub. L. 103–354, title I, §§ 102(b)(3), (4), 103, 115(a), Oct. 13, 1994, 108 Stat. 3181, 3204; Pub. L. 106–224, title I, § 142(a)(1), (b), June 20, 2000, 114 Stat. 389, 390; Pub. L. 110–234, title XII, § 12033(c)(2)(B), May 22, 2008, 122 Stat. 1405; Pub. L. 110–246, § 4(a), title XII, § 12033(c)(2)(B), June 18, 2008, 122 Stat. 1664, 2167.) Editorial Notes CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2008—Subsec. (e)(1), (4). Pub. L. 110–246, § 12033(c)(2)(B), substituted ‘‘this subchapter’’ for ‘‘this chapter’’. 2000—Pub. L. 106–224, § 142(a)(1), inserted section catchline. Subsec. (a). Pub. L. 106–224, § 142(a)(1), added heading and text of subsec. (a) and struck out former subsec. (a) which read as follows: ‘‘The management of the Cor- poration shall be vested in a Board subject to the gen- eral supervision of the Secretary. The Board shall con- sist of the manager of the Corporation, the Under Sec- retary of Agriculture responsible for the Federal crop insurance program, one additional Under Secretary of Agriculture (as designated by the Secretary of Agri- culture), one person experienced in the crop insurance business who is not otherwise employed by the Federal Government, and three active farmers who are not oth- erwise employed by the Federal Government. The Board shall be appointed by, and hold office at the pleasure of, the Secretary. The Secretary shall not be a member of the Board. The Secretary, in appointing the three active farmers who are not otherwise em- ployed by the Federal Government, shall ensure that such members are policyholders and are from different geographic areas of the United States, in order that di- verse agricultural interests in the United States are at all times represented on the Board.’’ Subsec. (e). Pub. L. 106–224, § 142(b), added subsec. (e). 1994—Subsec. (a). Pub. L. 103–354, § 102(b)(3), (4)(A), (C), in first sentence struck out ‘‘of Directors (herein- after called the ‘Board’)’’ after ‘‘Board’’ and ‘‘of Agri- culture’’ after ‘‘Secretary’’. Pub. L. 103–354, § 103, in second sentence struck out ‘‘or Assistant Secretary’’ after ‘‘Corporation, the Under Secretary’’ and substituted ‘‘one additional Under Sec- retary of Agriculture (as designated by the Secretary of Agriculture)’’ for ‘‘the Under Secretary or Assistant Secretary of Agriculture responsible for the farm credit programs of the Department of Agriculture’’. Pub. L. 103–354, § 115(a)(1), substituted ‘‘The Board shall be appointed by, and hold office at the pleasure of, the Secretary. The Secretary shall not be a member of the Board.’’ for former third sentence which read as fol- lows: ‘‘The Board shall be appointed by, and hold office at the pleasure of the Secretary, who shall not, himself, be a member of the Board.’’ Pub. L. 103–354, § 102(b)(4)(C), in third sentence struck out ‘‘of Agriculture’’ before ‘‘, who shall not’’. Subsec. (c). Pub. L. 103–354, § 102(b)(4)(B), (C), struck out ‘‘of Agriculture’’ after ‘‘Department’’ in first sen- tence and after ‘‘Secretary’’ in second sentence. Subsec. (d). Pub. L. 103–354, §§ 102(b)(4)(C), 115(a)(2), in first sentence struck out ‘‘upon him’’ before ‘‘by the Board’’, and in second sentence substituted ‘‘The man- ager shall’’ for ‘‘He shall’’ and struck out ‘‘of Agri- culture’’ after ‘‘Secretary’’. Page 802 TITLE 7—AGRICULTURE § 1506 1 So in original. 1980—Subsec. (a). Pub. L. 96–365, § 102(a), increased Board membership to seven from five persons; sub- stituted provisions including on the Board the Under Secretaries or Assistant Secretaries of Agriculture for crop insurance and farm credit programs and one per- son experienced in crop insurance business for former provisions including on the Board two other Agri- culture Department employees and two persons with insurance business experience; authorized appointment of three active farmers not otherwise Federal employ- ees; and required farmer appointees to be policyholders and representative of agricultural interests of different geographic areas. Subsec. (b). Pub. L. 96–365, § 102(b), substituted ‘‘four’’ for ‘‘three’’ in two places. Subsec. (c). Pub. L. 96–365, § 102(c), substituted as lim- itation on compensation of Directors of the Corpora- tion not employed by the Federal Government the daily equivalent of rate prescribed for grade GS–18 under section 5332 of title 5 when actually employed, and actual necessary traveling and subsistence ex- penses, or the per diem allowance in lieu of subsistence expenses, as authorized by section 5703 of title 5 for per- sons in Government service employed intermittently, when on the business of the Corporation away from their homes or regular places of business for former limitation of $50 per day when actually employed and transportation expenses plus not to exceed $10 per diem in lieu of subsistence expenses when on business of the Corporation away from their homes or regular places of business. 1949—Subsec. (c). Act Aug. 25, 1949, reduced com- pensation of members of Board of Directors who are not Government employees from ‘‘not to exceed $100 per day’’ to ‘‘not to exceed $50 per day’’, and changed from ‘‘subsistence expenses’’ to ‘‘transportation expenses and not to exceed $10 per diem’’. 1947—Act Aug. 1, 1947, amended section generally and, among other changes, increased membership of Board from three to five, provided for two members with in- surance experience, not Government employees, in- creased from two to three the number of members nec- essary to carry on functions and to constitute a quorum, provided for compensation and expenses of Board members not otherwise Government employed, and for appointment of manager of corporation by the Secretary of Agriculture instead of being selected by the Board. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. 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.) begin- ning 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 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. APPOINTMENT OF BOARD OF DIRECTORS BEGINNING FEBRUARY 1, 2001 Pub. L. 106-224, title I, § 142(a)(2), (3), June 20, 2000, 114 Stat. 390, provided that: ‘‘(2) IMPLEMENTATION.—The initial members of the Board of Directors of the Federal Crop Insurance Cor- poration required to be appointed under section 505(a)(3) of the Federal Crop Insurance Act [7 U.S.C. 1505(a)(3)] (as amended by paragraph (1)) shall be ap- pointed during the period beginning February 1, 2001, and ending April 1, 2001. ‘‘(3) EFFECT ON EXISTING BOARD.—A member of the Board of Directors of the Federal Crop Insurance Cor- poration on the date of the enactment of this Act [June 20, 2000] may continue to serve as a member of the Board until the members referred to in paragraph (2) are first appointed.’’ REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY RATES References in laws to the rates of pay for GS–16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organi- zation and Employees, see section 529 [title I, § 101(c)(1)] of Pub. L. 101–509, set out in a note under section 5376 of Title 5. Executive Documents TRANSFER OF FUNCTIONS Administration of program of Federal Crop Insurance Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, § 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 Ad- justment Administration, see note set out under sec- tion 1503 of this title. § 1506. General powers (a) Succession The Corporation shall have succession in its corporate name. (b) Corporate seal The Corporation may adopt, alter, and use a corporate seal, which shall be judicially noticed. (c) Property The Corporation may purchase or lease and hold such real and personal property as it deems necessary or convenient in the transaction of its business, and may dispose of such property held by it upon such terms as it deems appropriate. (d) Suit Subject to section 1508(j)(2)(A) of this title, the Corporation, subject to the provisions of section 1508(j) of this title,1 may sue and be sued in its corporate name, but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Corporation or its property. The district courts of the United States, including the district courts of the Dis- trict of Columbia and of any territory or posses- sion, shall have exclusive original jurisdiction, without regard to the amount in controversy, of all suits brought by or against the Corporation. The Corporation may intervene in any court in any suit, action, or proceeding in which it has an interest. Any suit against the Corporation shall be brought in the District of Columbia, or in the district wherein the plaintiff resides or is engaged in business. (e) Bylaws and regulations The Corporation may adopt, amend, and re- peal bylaws, rules, and regulations governing