§ 1505. — Management of Corporation.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1505]
TITLE 7--AGRICULTURE
CHAPTER 36--CROP INSURANCE
Sec. 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 responsible for the
Federal crop insurance program.
(C) One additional Under Secretary of Agriculture (as
designated by the Secretary).
(D) The Chief Economist of the Department of Agriculture.
(E) One person experienced in the crop insurance 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 subparagraphs (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 consecutive 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 office shall constitute a
quorum for the transaction of the business of the Board.
(c) Compensation
The Directors of the Corporation who are employed in the Department
shall receive no additional compensation for their services as such
Directors but may be allowed necessary traveling and subsistence
expenses when engaged in business of the Corporation, outside of the
District of Columbia. The Directors of the Corporation who are not
employed by the Federal Government shall be paid such compensation for
their services as Directors as the Secretary shall determine, but such
compensation shall not exceed the daily equivalent of the rate
prescribed for grade GS-18 under section 5332 of title 5 when actually
employed, and actual necessary traveling and subsistence expenses, or a
per diem allowance in lieu of subsistence expenses, as authorized 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 authority 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 offered under this
chapter 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 employed 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 material or modification of a policy or
plan of insurance, 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 employed by the
Federal Government; and
(ii) none may be employed by an approved 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 consideration of any policy or plan or insurance, or
any related material or modification of a policy or plan of
insurance, proposed to be offered under this chapter.
(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 subsection 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, Sec. 505, 52 Stat. 72; Aug. 1, 1947,
ch. 440, Sec. 8, 61 Stat. 719; Aug. 25, 1949, ch. 512, Sec. 7, 63 Stat.
665; Pub. L. 96-365, title I, Sec. 102, Sept. 26, 1980, 94 Stat. 1312;
Pub. L. 103-354, title I, Secs. 102(b)(3), (4), 103, 115(a), Oct. 13,
1994, 108 Stat. 3181, 3204; Pub. L. 106-224, title I, Sec. 142(a)(1),
(b), June 20, 2000, 114 Stat. 389, 390.)
Amendments
2000--Pub. L. 106-224, Sec. 142(a)(1), inserted section catchline.
Subsec. (a). Pub. L. 106-224, Sec. 142(a)(1), added heading and text
of subsec. (a) and struck out former subsec. (a) which read as follows:
``The management of the Corporation shall be vested in a Board subject
to the general supervision of the Secretary. The Board shall consist of
the manager of the Corporation, the Under Secretary of Agriculture
responsible for the Federal crop insurance program, one additional Under
Secretary of Agriculture (as designated by the Secretary of
Agriculture), one person experienced in the crop insurance business who
is not otherwise employed by the Federal Government, and three active
farmers who are not otherwise 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
employed by the Federal Government, shall ensure that such members are
policyholders and are from different geographic areas of the United
States, in order that diverse agricultural interests in the United
States are at all times represented on the Board.''
Subsec. (e). Pub. L. 106-224, Sec. 142(b), added subsec. (e).
1994--Subsec. (a). Pub. L. 103-354, Sec. 102(b)(3), (4)(A), (C), in
first sentence struck out ``of Directors (hereinafter called the
`Board')'' after ``Board'' and ``of Agriculture'' after ``Secretary''.
Pub. L. 103-354, Sec. 103, in second sentence struck out ``or
Assistant Secretary'' after ``Corporation, the Under Secretary'' and
substituted ``one additional Under Secretary 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, Sec. 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 follows: ``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, Sec. 102(b)(4)(C), in third sentence struck out
``of Agriculture'' before ``, who shall not''.
Subsec. (c). Pub. L. 103-354, Sec. 102(b)(4)(B), (C), struck out
``of Agriculture'' after ``Department'' in first sentence and after
``Secretary'' in second sentence.
Subsec. (d). Pub. L. 103-354, Secs. 102(b)(4)(C), 115(a)(2), in
first sentence struck out ``upon him'' before ``by the Board'', and in
second sentence substituted ``The manager shall'' for ``He shall'' and
struck out ``of Agriculture'' after ``Secretary''.
1980--Subsec. (a). Pub. L. 96-365, Sec. 102(a), increased Board
membership to seven from five persons; substituted provisions including
on the Board the Under Secretaries or Assistant Secretaries of
Agriculture for crop insurance and farm credit programs and one person
experienced in crop insurance business for former provisions including
on the Board two other Agriculture Department employees and two persons
with insurance business experience; authorized appointment of three
active farmers not otherwise Federal employees; and required farmer
appointees to be policyholders and representative of agricultural
interests of different geographic areas.
Subsec. (b). Pub. L. 96-365, Sec. 102(b), substituted ``four'' for
``three'' in two places.
Subsec. (c). Pub. L. 96-365, Sec. 102(c), substituted as limitation
on compensation of Directors of the Corporation 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 expenses, or the per diem allowance
in lieu of subsistence expenses, as authorized 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 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 compensation 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 insurance experience, not Government employees,
increased from two to three the number of members necessary 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.
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 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.
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.
Appointment of Board of Directors Beginning February 1, 2001
Pub. L. 106-224, title I, Sec. 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 Corporation 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 appointed 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 Corporation 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 Organization and Employees, see section 529 [title I,
Sec. 101(c)(1)] of Pub. L. 101-509, set out in a note under section 5376
of Title 5.
Section Referred to in Other Sections
This section is referred to in sections 1502, 1516 of this title.
