7 U.S.C. § 1507 — Personnel of Corporation

Page 807 TITLE 7—AGRICULTURE § 1507 tion necessary to make the determinations and evalua- tions required under this section. The Corporation shall solicit from the approved insurance providers and agents proposals for modifying or altering the require- ments, regulations, procedures, and processes related to implementing the Federal Crop Insurance Act to re- duce the operating and administrative costs of the pro- viders 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 re- sults of the evaluation to the Committee on Agri- culture of the House of Representatives and the Com- mittee 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 Comp- troller General and the Corporation shall submit a final report that provides the evaluation required under sub- section (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agri- culture, Nutrition, and Forestry of the Senate. In mak- ing the evaluation, the Comptroller General and the Corporation shall— ‘‘(1) consider the changes made by the Corporation in response to increased program participation re- sulting from the enactment of this Act; ‘‘(2) include an evaluation and opinion of the accu- racy and reasonableness of— ‘‘(A) the average actual costs for approved insur- ance providers to deliver multiple peril crop insur- ance; ‘‘(B) the cost per policy of complying with the re- quirements, 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 pro- vider 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 asso- ciated 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 pro- vider and the Corporation has been recognized; and ‘‘(C) identify areas for improved operating effi- ciencies, if any, in the requirements made by the Cor- poration for compliance and program integrity; ‘‘(5) assess the potential for alternative forms of re- insurance 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 re- insurance; and ‘‘(D) any additional costs that may be incurred by the Federal Government in carrying out the Fed- eral 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 re- quired by this section, the Comptroller General and the Corporation shall maintain the privacy of propri- etary information. ‘‘(2) SUBPOENAS.—The Comptroller General shall have the power to subpoena information relevant to the evaluation required by this section from any pri- vate 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.’’ 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. §§ 1506a, 1506b. Omitted Editorial Notes CODIFICATION Section 1506a, act July 30, 1947, ch. 356, title II, § 202, 61 Stat. 550, which related to authority of Federal Crop Insurance Corporation to make expenditures, was from the Department of Agriculture Appropriation Act, 1948, and was not repeated in subsequent appropriation acts. Section 1506b, acts June 29, 1954, ch. 409, title II, § 201, 68 Stat. 317; May 23, 1955, ch. 43, title II, § 201, 69 Stat. 60; June 4, 1956, ch. 355, title II, § 201, 70 Stat. 238, which provided that crop inspection costs and loss adjust- ments could be considered as nonadministrative or non- operating expenses, was from the Department of Agri- culture and Farm Credit Administration Appropriation Acts for fiscal years 1955–57, and was not repeated in subsequent appropriation acts. § 1507. Personnel of Corporation (a) Appointment; civil service exemption; com- pensation The Secretary shall appoint such officers and employees as may be necessary for the trans- action of the business of the Corporation pursu- ant to civil-service laws and regulations, fix their compensation in accordance with the pro- visions of chapter 51 and subchapter III of chap- ter 53 of title 5, define their authority and du- ties, and delegate to them such of the powers vested in the Corporation as the Secretary may determine appropriate. However, personnel paid by the hour, day, or month when actually em- ployed may be appointed without regard to civil-service laws and regulations. (b) Application of employees’ compensation law Insofar as applicable, the benefits of sub- chapter I of chapter 81 of title 5, shall extend to persons given employment under the provisions of this subchapter, including the employees of the committees and associations referred to in subsection (c) of this section and the members of such committees. (c) Use of associations of producers and private insurance companies; payment of adminis- trative and program expenses; sale of crop insurance through private agents and bro- kers: renewals, exclusion of compensation from premium rates, indemnification for er- rors or omissions of Commission or its con- tractors In the administration of this subchapter, the Board shall, to the maximum extent possible, (1) Page 808 TITLE 7—AGRICULTURE § 1507 establish or use committees or associations of producers and make payments to them to cover the administrative and program expenses, as de- termined by the Board, incurred by them in co- operating in carrying out this subchapter, (2) contract with private insurance companies, pri- vate rating bureaus, and other organizations as appropriate for actuarial services, services relat- ing to loss adjustment and rating plans of insur- ance, and other services to avoid duplication by the Federal Government of services that are or may readily be available in the private sector and to enable the Corporation to concentrate on regulating the provision of insurance under this subchapter and evaluating new products and materials submitted under section 1508(h) or 1523 of this title, and reimburse such companies for the administrative and program expenses, as de- termined by the Board, incurred by them, under terms and provisions and rates of compensation consistent with those generally prevailing in the insurance industry, and (3) encourage the sale of Federal crop insurance through licensed private insurance agents and brokers and give the in- sured the right to renew such insurance for suc- cessive terms through such agents and brokers, in which case the agent or broker shall be rea- sonably compensated from premiums paid by the insured for such sales and renewals recog- nizing the function of the agent or broker to provide continuing services while the insurance is in effect: Provided, That such compensation shall not be included in computations estab- lishing premium rates. The Board shall provide such agents and brokers with indemnification, including costs and reasonable attorney fees, from the Corporation for errors or omissions on the part of the Corporation or its contractors for which the agent or broker is sued or held liable, except to the extent the agent or broker has caused the error or omission. Nothing in this subsection shall permit the Corporation to con- tract with other persons to carry out the respon- sibility of the Corporation to review and ap- prove policies, rates, and other materials sub- mitted under section 1508(h) of this title. (d) Allotment of funds to Federal and State agen- cies The Secretary may allot to bureaus and of- fices of the Department or transfer to such other agencies of the State and Federal Governments that the Secretary requests to assist in carrying out this subchapter any funds made available pursuant to the provisions of section 1516 of this title. (e) Utilization of producer cooperative associa- tions In carrying out the provisions of this sub- chapter the Board may, in its discretion, utilize producer-owned and producer-controlled cooper- ative associations. (f) Use of resources, data, boards, and commit- tees of Federal agencies If the Board determines it is necessary, the Board shall use, to the maximum extent prac- ticable, the resources, data, boards, and the committees of— (1) the Natural Resources Conservation Service, in assisting the Board in— (A) the classification of land as to risk and production capability; and (B) the consideration of acceptable con- servation practices, including good farming practices with respect to conservation (such as cover crop termination); (2) the Forest Service, in assisting the Board in the development of a timber insurance plan; (3) the Farm Service Agency, in assisting the Board in— (A) the determination of individual pro- ducer yields; (B) sharing information on beginning farmers and ranchers and veteran farmers and ranchers; (C) investigating potential waste, fraud, or abuse; (D) sharing information to support the transition of crops and counties from the noninsured crop disaster assistance program established by section 7333 of this title to in- surance under this subchapter; and (E) serving as a local point of contact for the dissemination of information on risk management options available to farmers and ranchers; and (4) other Federal agencies, in assisting the Board in any way the Board determines is nec- essary in carrying out this subchapter. (g) Specialty Crops Coordinator (1) IN GENERAL.—The Corporation shall estab- lish a management-level position to be known as the Specialty Crops Coordinator. (2) The Specialty Crops Coordinator shall have primary responsibility for addressing the needs of specialty crop producers, and for providing in- formation and advice, in connection with the ac- tivities of the Corporation to improve and ex- pand the insurance program for specialty crops. In carrying out this paragraph, the Specialty Crops Coordinator shall act as the liaison of the Corporation with representatives of specialty crop producers and assist the Corporation with the knowledge, expertise, and familiarity of the producers with risk management and production issues pertaining to specialty crops. (3) The Specialty Crops Coordinator shall use information collected from Corporation field of- fice directors in States in which specialty crops have a significant economic effect and from other sources, including the extension service and colleges and universities. (4) SPECIALTY CROP LIAISONS.—The Specialty Crops Coordinator shall— (A) designate a Specialty Crops Liaison in each regional field office; and (B) share the contact information of the Specialty Crops Liaisons with specialty crop producers. (5) WEBSITE.—The Specialty Crops Coordinator shall establish a website focused on the efforts of the Corporation to provide and expand crop insurance for specialty crop producers. (Feb. 16, 1938, ch. 30, title V, § 507, 52 Stat. 73; Aug. 1, 1947, ch. 440, § 6, 61 Stat. 719; Aug. 25, 1949, ch. 512, § 10, 63 Stat. 665; Oct. 28, 1949, ch. 782, title XI, § 1106(a), 63 Stat. 972; Pub. L. 92–310, title II, § 221(b), June 6, 1972, 86 Stat. 205; Pub. L. 96–365, title I, § 104, Sept. 26, 1980, 94 Stat. 1313; Page 809 TITLE 7—AGRICULTURE § 1507 Pub. L. 101–624, title XXII, § 2206, Nov. 28, 1990, 104 Stat. 3958; Pub. L. 102–237, title VI, § 601(3), Dec. 13, 1991, 105 Stat. 1878; Pub. L. 103–354, title I, §§ 102(b)(4)(B), (C), 105, 115(b), 119(f)(2), Oct. 13, 1994, 108 Stat. 3181, 3182, 3204, 3208; Pub. L. 106–224, title I, § 143, June 20, 2000, 114 Stat. 391; 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; Pub. L. 115–334, title XI, §§ 11104, 11105(a), Dec. 20, 2018, 132 Stat. 4920.) Editorial Notes CODIFICATION In subsec. (a), ‘‘chapter 51 and subchapter III of chap- ter 53 of title 5’’ substituted for ‘‘the Classification Act of 1949’’ on authority of Pub. L. 89–554, § 7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees. Provisions that authorized personnel paid by the hour, day, or month when actually employed, and coun- ty crop insurance committeemen to have their com- pensation fixed without regard to ‘‘the Classification Act of 1923, as amended’’ were omitted as obsolete. Sec- tions 1202 and 1204 of the Classification Act of 1949, 63 Stat. 972, 973 repealed the 1923 Act and all laws or parts of laws inconsistent with the 1949 Act. While section 1106(a) of the 1949 Act provided that references in other laws to the 1923 Act should be held and considered to mean the 1949 Act it did not have the effect of con- tinuing the exceptions contained in this subsection be- cause of section 1106(b) which provided that the appli- cation of the 1949 Act to any position, officer, or em- ployee shall not be affected by section 1106(a). The Classification Act of 1949 was repealed by Act Sept. 6, 1966, Pub. L. 89–554, § 8(a), 80 Stat. 632 (of which section 1 revised and enacted Title 5, U.S.C., into law). Section 5102 of Title 5, now contains the applicability provi- sions of the 1949 Act, and section 5103 of Title 5 author- izes the Office of Personnel Management to determine the applicability to specific positions and employees. In subsec. (b), reference to ‘‘subchapter I of chapter 81 of title 5’’ substituted for ‘‘the Act entitled ‘An Act to provide compensation for employees of the United States suffering injuries while in the performance of their duties, and for other purposes’, approved Sep- tember 7, 1916, as amended’’ on authority of Pub. L. 89–554, § 7(b), Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees. 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 2018—Subsec. (f). Pub. L. 115–334, § 11104, rewrote sub- sec. (f), inserting subsec. heading and introductory pro- visions, adding pars. (1), (3), and (4), realigning margins in par. (2), and striking out former introductory provi- sions and former pars. (1), (2), and (4). Prior to amend- ment, text of subsec. (f) read as follows: ‘‘The Board should use, to the maximum extent possible, the re- sources, data, boards, and the committees of (1) the Soil Conservation Service, in assisting the Board in the classification of land as to risk and production capa- bility and in the development of acceptable conserva- tion practices; (2) the Forest Service, in assisting the Board in the development of a timber insurance plan; (3) the Agricultural Stabilization and Conservation Service, in assisting the Board in the determination of individual producer yields and in serving as a local con- tact point for farmers where the Board deems nec- essary; and (4) other Federal agencies in any way the Board deems necessary in carrying out this sub- chapter.’’ Subsec. (g). Pub. L. 115–334, § 11105(a), inserted subsec. and par. (1) headings and added pars. (4) and (5). 2008—Subsecs. (b) to (f). Pub. L. 110–246, § 12033(c)(2)(B), substituted ‘‘this subchapter’’ for ‘‘this chapter’’ wherever appearing. 2000—Subsec. (c). Pub. L. 106–224, in cl. (2), sub- stituted ‘‘actuarial services, services relating to loss adjustment and rating plans of insurance,’’ for ‘‘actu- arial, loss adjustment,’’ and inserted ‘‘and to enable the Corporation to concentrate on regulating the provision of insurance under this chapter and evaluating new products and materials submitted under section 1508(h) or 1523 of this title’’ after ‘‘private sector’’. 1994—Subsec. (a). Pub. L. 103–354, §§ 105(1), 115(b)(1), substituted ‘‘as the Secretary may determine appro- priate. However,’’ for ‘‘as he may determine: Provided, That’’ and struck out ‘‘, and county crop insurance committeemen’’ before ‘‘may be appointed’’. Subsec. (c). Pub. L. 103–354, § 119(f)(2), substituted ‘‘1508(h)’’ for ‘‘1508(b)’’ in last sentence. Subsec. (d). Pub. L. 103–354, § 105(2), made technical amendment to reference to section 1516 of this title and struck out before period at end ‘‘, except that employ- ees or agencies responsible for administering this chap- ter in each county shall be selected and designated by the Corporation and shall be responsible directly to the Corporation without the intervention of any inter- mediate office or agency’’. Pub. L. 103–354, § 102(b)(4)(B), (C), 115(b)(2), substituted ‘‘Secretary’’ for ‘‘Secretary of Agriculture’’, ‘‘Depart- ment’’ for ‘‘Department of Agriculture’’, and ‘‘that the Secretary requests’’ for ‘‘as he may request’’. Subsec. (g). Pub. L. 103–354, § 105(3), added subsec. (g). 1991—Subsec. (c). Pub. L. 102–237 inserted a comma after ‘‘private insurance companies’’ in cl. (2). 1990—Subsec. (c). Pub. L. 101–624 inserted ‘‘private rating bureaus, and other organizations as appropriate for actuarial, loss adjustment, and other services to avoid duplication by the Federal Government of serv- ices that are or may readily be available in the private sector,’’ after ‘‘private insurance companies’’ and in- serted at end ‘‘Nothing in this subsection shall permit the Corporation to contract with other persons to carry out the responsibility of the Corporation to review and approve policies, rates, and other materials submitted under section 1508(b) of this title.’’ 1980—Subsec. (c). Pub. L. 96–365, § 104(1), inserted ‘‘shall, to the maximum extent possible’’, incorporated existing provisions in cl. (1), including in cl. (1) provi- sion for payment of program expenses, but omitting provision for inclusion of estimated expenses in insur- ance premiums, and added cls. (2) and (3) and provisions for exclusion of compensation from premium rates and indemnification of agents and brokers for errors or omissions of Commission or its contractors. Subsec. (f). Pub. L. 96–365, § 104(2), added subsec. (f). 1972—Subsec. (a). Pub. L. 92–310 struck out provisions which empowered Secretary to require bonds of officers and employees. 1949—Act Oct. 28, 1949, substituted ‘‘Classification Act of 1949’’ for ‘‘Classification Act of 1923’’. Act Aug. 25, 1949, inserted requirement that officers and employees be appointed subject to civil service laws and regulations, and exempted personnel paid by hour, day, or month when employed, and county crop- insurance committeemen from civil-service laws and regulations or the Classification Act of 1923. 1947—Act Aug. 1, 1947, provided for selection and des- ignation of county employees and agencies and their di- rect responsibility. 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 Page 810 TITLE 7—AGRICULTURE § 1508 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. REPEALS Act Oct. 28, 1949, ch. 782, cited as a credit to this sec- tion, was repealed (subject to a savings clause) by Pub. L. 89–554, Sept. 6, 1966, § 8, 80 Stat. 632, 655. 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. § 1508. Crop insurance (a) Authority to offer insurance (1) In general If sufficient actuarial data are available (as determined by the Corporation), the Corpora- tion may insure, or provide reinsurance for in- surers of, producers of agricultural commod- ities grown in the United States under 1 or more plans of insurance determined by the Corporation to be adapted to the agricultural commodity concerned. To qualify for coverage under a plan of insurance, the losses of the in- sured commodity must be due to drought, flood, or other natural disaster (as determined by the Secretary). (2) Period Except in the cases of tobacco, potatoes, sweet potatoes, and hemp, insurance shall not extend beyond the period during which the in- sured commodity is in the field. As used in the preceding sentence, in the case of an aquacultural species, the term ‘‘field’’ means the environment in which the commodity is produced. (3) Exclusion of losses due to certain actions of producer (A) Exclusions Insurance provided under this subsection shall not cover losses due to— (i) the neglect or malfeasance of the pro- ducer; (ii) the failure of the producer to reseed to the same crop in such areas and under such circumstances as it is customary to reseed; or (iii) the failure of the producer to follow good farming practices, including scientif- ically sound sustainable and organic farm- ing practices. (B) Good farming practices determination re- view (i) Informal administrative process A producer shall have the right to a re- view of a determination regarding good farming practices made under subpara- graph (A)(iii) in accordance with an infor- mal administrative process to be estab- lished by the Corporation. (ii) Administrative review (I) No adverse decision The determination shall not be consid- ered an adverse decision for purposes of subtitle H of the Department of Agri- culture Reorganization Act of 1994 (7 U.S.C. 6991 et seq.). (II) Reversal or modification Except as provided in clause (i), the de- termination may not be reversed or modified as the result of a subsequent administrative review. (iii) Judicial review (I) Right to review A producer shall have the right to judi- cial review of the determination without exhausting any right to a review under clause (i). (II) Reversal or modification The determination may not be re- versed or modified as the result of judi- cial review unless the determination is found to be arbitrary or capricious. (C) Limitation on revenue coverage for pota- toes No policy or plan of insurance provided under this subchapter (including a policy or plan of insurance approved by the Board under subsection (h)) shall cover losses due to a reduction in revenue for potatoes except as covered under a whole farm policy or plan of insurance, as determined by the Corpora- tion. (4) Expansion to other areas or single pro- ducers (A) Area expansion The Corporation may offer plans of insur- ance or reinsurance for production of agri- cultural commodities in the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau in the same manner as provided in this section for production of agricultural commodities in the United States. (B) Producer expansion In an area in the United States or specified in subparagraph (A) where crop insurance is not available for a particular agricultural commodity, the Corporation may offer to enter into a written agreement with an indi- vidual producer operating in the area for in- surance coverage under this subchapter if the producer has actuarially sound data re- lating to the production by the producer of the commodity or similar commodities and the data is acceptable to the Corporation.