7 U.S.C. § 1506 — General powers

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 Page 803 TITLE 7—AGRICULTURE § 1506 2 See References in Text note below. the manner in which its business may be con- ducted and the powers granted to it by law may be exercised and enjoyed. (f) Mails The Corporation shall be entitled to the use of the United States mails in the same manner as the other executive agencies of the Government. (g) Assistance The Corporation, with the consent of any board, commission, independent establishment, or executive department of the Government, in- cluding any field service thereof, may avail itself of the use of information, services, facili- ties, officials, and employees thereof in carrying out the provisions of this subchapter. (h) Collection and sharing of information (1) Surveys and investigations The Corporation may conduct surveys and investigations relating to crop insurance, agri- culture-related risks and losses, and other issues related to carrying out this subchapter. (2) Data collection (A) In general The Corporation shall assemble data for the purpose of establishing sound actuarial bases for insurance on agricultural commod- ities. (B) National Agricultural Statistics Service Data collected by the National Agricul- tural Statistics Service, whether published or unpublished, shall be— (i) provided in an aggregate form to the Corporation for the purpose of providing insurance under this subchapter; and (ii) kept confidential by the Corporation in the same manner and to the same ex- tent as is required under— (I) section 2276 of this title; and (II) the Confidential Information Pro- tection and Statistical Efficiency Act of 2002 (44 U.S.C. 3501 note; Public Law 107–347).2 (C) Noninsured crop disaster assistance pro- gram In collecting data under this subsection, the Secretary shall ensure that— (i) appropriate data are collected through the noninsured crop disaster as- sistance program established by section 7333 of this title; and (ii) not less frequently than annually, the Farm Service Agency shares, and the Corporation considers, the data described in clause (i). (3) Sharing of records Notwithstanding section 1502(c) of this title, records submitted in accordance with this sub- chapter and section 7333 of this title shall be available to agencies and local offices of the Department, appropriate State and Federal agencies and divisions, applicants who have received payment under section 1522(b)(2)(E) of this title, and approved insurance providers for use in carrying out this subchapter, such section 7333 of this title, and other agricul- tural programs. (i) Expenditures The Corporation shall determine the character and necessity for its expenditures under this subchapter and the manner in which they shall be incurred, allowed, and paid, without regard to the provisions of any other laws governing the expenditure of public funds and such determina- tions shall be final and conclusive upon all other officers of the Government. (j) Settling claims The Corporation shall have the authority to make final and conclusive settlement and ad- justment of any claim by or against the Cor- poration or a fiscal officer of the Corporation. (k) Other powers The Corporation shall have such powers as may be necessary or appropriate for the exercise of the powers herein specifically conferred upon the Corporation and all such incidental powers as are customary in corporations generally. (l) Contracts The Corporation may enter into and carry out contracts or agreements, and issue regulations, necessary in the conduct of its business, as de- termined by the Board. State and local laws or rules shall not apply to contracts, agreements, or regulations of the Corporation or the parties thereto to the extent that such contracts, agree- ments, or regulations provide that such laws or rules shall not apply, or to the extent that such laws or rules are inconsistent with such con- tracts, agreements, or regulations. (m) Submission of certain information (1) Social security account and employer iden- tification numbers The Corporation shall require, as a condition of eligibility for participation in the multiple peril crop insurance program, submission of social security account numbers, subject to the requirements of section 405(c)(2)(C)(iii) 2 of title 42, and employer identification numbers, subject to the requirements of section 6109(f) of title 26. (2) Notification by policyholders Each policyholder shall notify each indi- vidual or other entity that acquires or holds a substantial beneficial interest in such policy- holder of the requirements and limitations under this subchapter. (3) Identification of holders of substantial in- terests The Manager of the Corporation may require each policyholder to provide to the Manager, at such times and in such manner as pre- scribed by the Manager, the name of each indi- vidual that holds or acquires a substantial beneficial interest in the policyholder. (4) ‘‘Substantial beneficial interest’’ defined For purposes of this subsection, the term ‘‘substantial beneficial interest’’ means not less than 5 percent of all beneficial interests in the policyholder. Page 804 TITLE 7—AGRICULTURE § 1506 3 So in original. Probably should be ‘‘(q)’’. (n) Actuarial soundness (1) Projected loss ratio as of October 1, 1995 The Corporation shall take such actions as are necessary to improve the actuarial sound- ness of Federal multiperil crop insurance cov- erage made available under this subchapter to achieve, on and after October 1, 1995, an over- all projected loss ratio of not greater than 1.1, including— (A) instituting appropriate requirements for documentation of the actual production history of insured producers to establish re- corded or appraised yields for Federal crop insurance coverage that more accurately re- flect the associated actuarial risk, except that the Corporation may not carry out this paragraph in a manner that would prevent beginning farmers (as defined by the Sec- retary) from obtaining Federal crop insur- ance; (B) establishing in counties, to the extent practicable, a crop insurance option based on area yields in a manner that allows an in- sured producer to qualify for an indemnity if a loss has occurred in a specified area in which the farm of the insured producer is lo- cated; (C) establishing a database that contains the social security account and employee identification numbers of participating pro- ducers, agents, and loss adjusters and using the numbers to identify insured producers, agents, and loss adjusters who are high risk for actuarial purposes and insured producers who have not documented at least 4 years of production history, to assess the perform- ance of insurance providers, and for other purposes permitted by law; and (D) taking any other measures authorized by law to improve the actuarial soundness of the Federal crop insurance program while maintaining fairness and effective coverage for agricultural producers. (2) Projected loss ratio The Corporation shall take such actions, in- cluding the establishment of adequate pre- miums, as are necessary to improve the actu- arial soundness of Federal multiperil crop in- surance made available under this subchapter to achieve an overall projected loss ratio of not greater than 1.0. (3) Nonstandard classification system To the extent that the Corporation uses the nonstandard classification system, the Cor- poration shall apply the system to all insured producers in a fair and consistent manner. (o) Regulations The Secretary and the Corporation are each authorized to issue such regulations as are nec- essary to carry out this subchapter. (p) Purchase of American-made equipment and products (1) Sense of Congress It is the sense of Congress that, to the great- est extent practicable, all equipment and prod- ucts purchased by the Corporation using funds made available to the Corporation should be American-made. (2) Notice requirement In providing financial assistance to, or en- tering into any contract with, any entity for the purchase of equipment and products to carry out this subchapter, the Corporation, to the greatest extent practicable, shall provide to the entity a notice describing the state- ment made in paragraph (1). (r) 3 Procedures for responding to certain inquir- ies (1) Procedures required The Corporation shall establish procedures under which the Corporation will provide a final agency determination in response to an inquiry regarding the interpretation by the Corporation of this subchapter or any regula- tion issued under this subchapter. (2) Implementation Not later than 180 days after June 23, 1998, the Corporation shall issue regulations to im- plement this subsection. At a minimum, the regulations shall establish— (A) the manner in which inquiries de- scribed in paragraph (1) are required to be submitted to the Corporation; and (B) a reasonable maximum number of days within which the Corporation will respond to all inquiries. (3) Effect of failure to timely respond If the Corporation fails to respond to an in- quiry in accordance with the procedures estab- lished pursuant to this subsection, the person requesting the interpretation of this sub- chapter or regulation may assume the inter- pretation is correct for the applicable reinsur- ance year. (Feb. 16, 1938, ch. 30, title V, § 506, 52 Stat. 73; June 21, 1941, ch. 214, § 2, 55 Stat. 255; Aug. 1, 1947, ch. 440, § 7, 61 Stat. 719; Aug. 25, 1949, ch. 512, § 8, 63 Stat. 665; Pub. L. 96–365, title I, §§ 103, 107(a), Sept. 26, 1980, 94 Stat. 1313, 1317; Pub. L. 101–624, title XXII, §§ 2201(a), 2202, Nov. 28, 1990, 104 Stat. 3951, 3954; Pub. L. 102–237, title VI, § 601(1), (2), Dec. 13, 1991, 105 Stat. 1878; Pub. L. 103–66, title I, § 1403(a), Aug. 10, 1993, 107 Stat. 333; Pub. L. 103–354, title I, §§ 104, 119(f)(1), Oct. 13, 1994, 108 Stat. 3181, 3208; Pub. L. 105–185, title V, § 533, June 23, 1998, 112 Stat. 583; Pub. L. 106–224, title I, §§ 121(b), 124(b), June 20, 2000, 114 Stat. 377, 378; Pub. L. 110–234, title XII, §§ 12002(a), (b)(1), 12003(a), 12033(c)(2)(B), May 22, 2008, 122 Stat. 1371, 1405; Pub. L. 110–246, § 4(a), title XII, §§ 12002(a), (b)(1), 12003(a), 12033(c)(2)(B), June 18, 2008, 122 Stat. 1664, 2133, 2167; Pub. L. 115–334, title XI, §§ 11102, 11103, Dec. 20, 2018, 132 Stat. 4919, 4920.) Editorial Notes REFERENCES IN TEXT The Confidential Information Protection and Statis- tical Efficiency Act of 2002, referred to in subsec. (h)(2)(B)(ii)(II), is title V of Pub. L. 107–347, Dec. 17, 2002, 116 Stat. 2962, which was set out as a note under section 3501 of Title 44, Public Printing and Documents, prior to repeal by Pub. L. 115–435, title III, § 302(c)(1), Page 805 TITLE 7—AGRICULTURE § 1506 title IV, § 403, Jan. 14, 2019, 132 Stat. 5552, 5557, effective 180 days after Jan. 14, 2019. See parts A to C of sub- chapter III of chapter 35 of Title 44, especially section 3572 of Title 44, which relates to confidential informa- tion protection. Section 405(c)(2)(C)(iii) of title 42, referred to in sub- sec. (m)(1), was redesignated section 405(c)(2)(C)(iv) of title 42 by Pub. L. 103–296, title III, § 321(a)(9)(B), Aug. 15, 1994, 108 Stat. 1536. 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 2018—Subsec. (h)(2). Pub. L. 115–334, § 11102, designated existing provisions as subpar. (A), inserted heading, and added subpars. (B) and (C). Subsec. (h)(3). Pub. L. 115–334, § 11103, inserted ‘‘appli- cants who have received payment under section 1522(b)(2)(E) of this title,’’ after ‘‘divisions,’’. 2008—Subsec. (d). Pub. L. 110–246, § 12002(a)(1), sub- stituted ‘‘Subject to section 1508(j)(2)(A) of this title, the Corporation’’ for ‘‘The Corporation’’ in first sen- tence. Subsecs. (g) to (i), (m). Pub. L. 110–246, § 12033(c)(2)(B), substituted ‘‘this subchapter’’ for ‘‘this chapter’’ wher- ever appearing. Subsec. (n). Pub. L. 110–246, § 12002(b)(1), redesignated subsec. (o) as (n). Pub. L. 110–246, § 12002(a)(2), struck out subsec. (n) which related to penalty for willful and intentional provision of false or inaccurate information to the Cor- poration or any insurer. Subsec. (n)(1). Pub. L. 110–246, § 12033(c)(2)(B), sub- stituted ‘‘this subchapter’’ for ‘‘this chapter’’ in intro- ductory provisions. Subsec. (n)(2). Pub. L. 110–246, § 12033(c)(2)(B), sub- stituted ‘‘this subchapter’’ for ‘‘this chapter’’. Pub. L. 110–246, § 12003(a), in heading, struck out ‘‘as of October 1, 1998’’ after ‘‘loss ratio’’ and, in text, struck out ‘‘, on and after October 1, 1998,’’ after ‘‘to achieve’’ and substituted ‘‘1.0’’ for ‘‘1.075’’. Subsecs. (o), (p). Pub. L. 110–246, § 12033(c)(2)(B), sub- stituted ‘‘this subchapter’’ for ‘‘this chapter’’. Pub. L. 110–246, § 12002(b)(1), redesignated subsecs. (p) and (q) as (o) and (p), respectively. Former subsec. (o) redesignated (n). Subsec. (q). Pub. L. 110–246, § 12002(b)(1), redesignated subsec. (q) as (p). Subsec. (r). Pub. L. 110–246, § 12033(c)(2)(B), sub- stituted ‘‘this subchapter’’ for ‘‘this chapter’’ wherever appearing. 2000—Subsec. (h). Pub. L. 106–224, § 124(b), added sub- sec. (h) and struck out heading and text of former sub- sec. (h). Text read as follows: ‘‘The Corporation shall assemble data for the purpose of establishing sound ac- tuarial bases for insurance on agricultural commod- ities.’’ Subsecs. (q) to (s). Pub. L. 106–224, § 121(b), redesig- nated subsecs. (r) and (s) as (q) and (r), respectively, and struck out former subsec. (q), which related to pro- gram 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 re- sult in a debt owed the Corporation. 1998—Subsec. (s). Pub. L. 105–185 added subsec. (s). 1994—Subsec. (d). Pub. L. 103–354, § 119(f)(1), sub- stituted ‘‘1508(j)’’ for ‘‘1508(f)’’ in first sentence. Subsec. (j). Pub. L. 103–354, § 104(2), added subsec. (j). Former subsec. (j) redesignated (k). Subsec. (k). Pub. L. 103–354, § 104(1), redesignated sub- sec. (j) as (k). Former subsec. (k) redesignated (l). Subsec. (l). Pub. L. 103–354, § 104(1), (3), redesignated subsec. (k) as (l), in first sentence inserted ‘‘, and issue regulations,’’ after ‘‘agreements’’, and in second sen- tence substituted ‘‘contracts, agreements, or regula- tions’’ for ‘‘contracts or agreements’’ wherever appear- ing. Former subsec. (l) redesignated (m). Subsec. (m). Pub. L. 103–354, § 104(1), redesignated sub- sec. (l) as (m). Former subsec. (m) redesignated (n). Subsec. (n). Pub. L. 103–354, § 104(1), redesignated sub- sec. (m) as (n). Former subsec. (n) redesignated (o). Subsec. (n)(1)(B). Pub. L. 103–354, § 104(4), added sub- par. (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, § 104(1), (5)(B), redesig- nated subsec. (n) as (o) and reenacted heading without change. Subsec. (o)(1). Pub. L. 103–354, § 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, § 104(5)(A), (C), redes- ignated 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, § 104(5)(A), redesig- nated former par. (2) as subpar. (B). Subsec. (o)(1)(C). Pub. L. 103–354, § 104(5)(A), (D), redes- ignated former par. (3) as subpar. (C) and inserted ‘‘, agents, and loss adjusters’’ after ‘‘participating pro- ducers’’ and after ‘‘identify insured producers’’. Subsec. (o)(1)(D). Pub. L. 103–354, § 104(5)(A), redesig- nated former par. (4) as subpar. (D). Subsec. (o)(2) to (4). Pub. L. 103–354, § 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, § 104(6), added sub- secs. (p) to (r). 1993—Subsec. (n). Pub. L. 103–66 added subsec. (n). 1991—Subsec. (d). Pub. L. 102–237, § 601(1), substituted ‘‘section 1508(f)’’ for ‘‘section 1508(c)’’ and a period for semicolon at end. Subsec. (m)(1). Pub. L. 102–237, § 601(2), in introduc- tory provisions substituted ‘‘willfully’’ for ‘‘wilfully’’ and in subpar. (A) struck out ‘‘to’’ after ‘‘exceed’’. 1990—Pub. L. 101–624, § 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, § 2202(b)(2), (13), inserted heading and ‘‘The Corporation’’ and substituted period for semicolon at end. Subsec. (b). Pub. L. 101–624, § 2202(b)(3), (13), inserted heading and ‘‘The Corporation’’ and substituted period for semicolon at end. Subsec. (c). Pub. L. 101–624, § 2202(b)(4), (13), inserted heading and ‘‘The Corporation’’ and substituted period for semicolon at end. Subsec. (d). Pub. L. 101–624, § 2202(b)(5), inserted head- ing and ‘‘The Corporation,’’. Subsec. (e). Pub. L. 101–624, § 2202(b)(6), (13), inserted heading and ‘‘The Corporation’’ and substituted period for semicolon at end. Subsec. (f). Pub. L. 101–624, § 2202(b)(7), (13), inserted heading and ‘‘The Corporation’’ and substituted period for semicolon at end. Subsec. (g). Pub. L. 101–624, § 2202(b)(8), (13), inserted heading and ‘‘The Corporation,’’ and substituted period for semicolon at end. Subsec. (h). Pub. L. 101–624, § 2202(b)(9), (13), inserted heading and ‘‘The Corporation’’ and substituted period for semicolon at end. Subsec. (i). Pub. L. 101–624, § 2202(b)(10), (14), inserted heading and ‘‘The Corporation’’ and substituted period for ‘‘; and’’ at end. Subsec. (j). Pub. L. 101–624, § 2202(b)(11), (14), inserted heading and ‘‘The Corporation’’ and substituted period for ‘‘; and’’ at end. Subsec. (k). Pub. L. 101–624, § 2202(b)(12), inserted heading and ‘‘The Corporation’’. Subsec. (l). Pub. L. 101–624, § 2201(a), added subsec. (l). Page 806 TITLE 7—AGRICULTURE § 1506 Subsec. (m). Pub. L. 101–624, § 2202(a), added subsec. (m). 1980—Subsec. (c). Pub. L. 96–365, § 103(1), substituted ‘‘may purchase’’ for ‘‘may make contracts and pur- chase’’. See subsec. (k) of this section. Subsec. (d). Pub. L. 96–365, § 103(2), substituted provi- sion granting exclusive original jurisdiction to district courts of the United States, including district courts of the District of Columbia and of any territory or posses- sion, 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, § 103(3), substituted ‘‘use of the United States mails’’ for ‘‘free use of the United States mails’’. Subsec. (h). Pub. L. 96–365, § 107(a), struck out author- ity for conducting researches, surveys, and investiga- tions relating to crop insurance. See section 1508(i) of this title. Subsec. (k). Pub. L. 96–365, § 103(4), added subsec. (k). 1949—Subsec. (h). Act Aug. 25, 1949, struck out obso- lete language and included authority for a study of the possibility of developing some type of livestock insur- ance. 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 con- troversy. 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 as- semble data relative to field corn, for the purpose of es- tablishing a satisfactory actuarial basis for such com- modity’’ for ‘‘for wheat and other agricultural com- modities.’’ 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 1998 AMENDMENT Pub. L. 105–185, title V, § 537, June 23, 1998, 112 Stat. 584, provided that: ‘‘Except as provided in section 535 [112 Stat. 583], this subtitle [subtitle C (§§ 531–537) of title V of Pub. L. 105–185, amending this section and sections 1508 and 1516 of this title and enacting provi- sions 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.) 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 1993 AMENDMENT Pub. L. 103–66, title I, § 1403(c)(1), Aug. 10, 1993, 107 Stat. 335, provided that: ‘‘Except as provided in para- graph (2), this section [amending this section and sec- tions 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 Pub. L. 103–66, title I, § 1403(c)(2), Aug. 10, 1993, 107 Stat. 335, 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 com- ment, proposed regulations to implement the amend- ments made by this section [amending this section and sections 1508 and 1508a of this title].’’ REQUIRED TERMS AND CONDITIONS OF STANDARD REINSURANCE AGREEMENTS Pub. L. 106–224, title I, § 148, June 20, 2000, 114 Stat. 394, provided that: ‘‘Notwithstanding section 536 of the Agricultural Research, Extension, and Education Re- form Act of 1998 (7 U.S.C. 1506 note; Public Law 105–185), the Federal Crop Insurance Corporation may renego- tiate the Standard Reinsurance Agreement once during the 2001 through 2005 reinsurance years.’’ Pub. L. 105–185, title V, § 536, June 23, 1998, 112 Stat. 584, provided that: ‘‘(a) DEFINITIONS.—In this section, the terms ‘ap- proved insurance provider’ and ‘Corporation’ have the meanings given the terms in section 502(b) of the Fed- eral 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 Cor- poration shall ensure that each Standard Reinsur- ance Agreement between an approved insurance pro- vider 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 reinsur- ance and underwriting gain and loss for an ap- proved insurance provider. ‘‘(B) Section III, concerning the terms for sub- sidies and administrative fees for an approved in- surance provider. ‘‘(C) Section IV, concerning the terms for loss ad- justment 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 dam- ages. ‘‘(c) IMPLEMENTATION.—To implement this subtitle and the amendments made by this subtitle, the Cor- poration is not required to amend provisions of the Standard Reinsurance Agreement not specifically af- fected by this subtitle or an amendment made by this subtitle.’’ CROP INSURANCE PROVIDER EVALUATION Pub. L. 103–354, title I, § 118, Oct. 13, 1994, 108 Stat. 3205, provided that: ‘‘(a) IN GENERAL.—The Comptroller General of the United States and the Federal Crop Insurance Corpora- tion (referred to in this section as the ‘Corporation’) shall jointly evaluate the financial arrangement be- tween the Corporation and approved insurance pro- viders to determine the quality, costs, and efficiencies of providing the benefits of multiple peril crop insur- ance 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 pro- viders and agents to supply, and the private insurance providers and agents shall supply, records and informa- 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)