§ 1507. — Personnel 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: 7USC1507]
TITLE 7--AGRICULTURE
CHAPTER 36--CROP INSURANCE
Sec. 1507. Personnel of Corporation
(a) Appointment; civil service exemption; compensation
The Secretary shall appoint such officers and employees as may be
necessary for the transaction of the business of the Corporation
pursuant to civil-service laws and regulations, fix their compensation
in accordance with the provisions of chapter 51 and subchapter III of
chapter 53 of title 5, define their authority and duties, 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 employed may be appointed without regard to civil-
service laws and regulations.
(b) Application of employees' compensation law
Insofar as applicable, the benefits of subchapter I of chapter 81 of
title 5, shall extend to persons given employment under the provisions
of this chapter, 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 administrative and program expenses; sale of crop
insurance through private agents and brokers: renewals,
exclusion of compensation from premium rates, indemnification
for errors or omissions of Commission or its contractors
In the administration of this chapter, the Board shall, to the
maximum extent possible, (1) establish or use committees or associations
of producers and make payments to them to cover the administrative and
program expenses, as determined by the Board, incurred by them in
cooperating in carrying out this chapter, (2) contract with private
insurance companies, private rating bureaus, and other organizations as
appropriate for actuarial services, services relating to loss adjustment
and rating plans of insurance, 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 chapter
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 determined 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 insured the right to
renew such insurance for successive terms through such agents and
brokers, in which case the agent or broker shall be reasonably
compensated from premiums paid by the insured for such sales and
renewals recognizing 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 establishing
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
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(h) of this title.
(d) Allotment of funds to Federal and State agencies
The Secretary may allot to bureaus and offices 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 chapter any
funds made available pursuant to the provisions of section 1516 of this
title.
(e) Utilization of producer cooperative associations
In carrying out the provisions of this chapter the Board may, in its
discretion, utilize producer-owned and producer-controlled cooperative
associations.
(f) Use of resources, data, boards, and committees of Federal agencies
The Board should use, to the maximum extent possible, the resources,
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 capability and in the development of acceptable conservation
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
contact point for farmers where the Board deems necessary; and (4) other
Federal agencies in any way the Board deems necessary in carrying out
this chapter.
(g) Specialty Crops Coordinator
(1) The Corporation shall establish 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 information and advice, in connection with the activities
of the Corporation to improve and expand 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 office directors in States in which specialty
crops have a significant economic effect and from other sources,
including the extension service and colleges and universities.
(Feb. 16, 1938, ch. 30, title V, Sec. 507, 52 Stat. 73; Aug. 1, 1947,
ch. 440, Sec. 6, 61 Stat. 719; Aug. 25, 1949, ch. 512, Sec. 10, 63 Stat.
665; Oct. 28, 1949, ch. 782, title XI, Sec. 1106(a), 63 Stat. 972; Pub.
L. 92-310, title II, Sec. 221(b), June 6, 1972, 86 Stat. 205; Pub. L.
96-365, title I, Sec. 104, Sept. 26, 1980, 94 Stat. 1313; Pub. L. 101-
624, title XXII, Sec. 2206, Nov. 28, 1990, 104 Stat. 3958; Pub. L. 102-
237, title VI, Sec. 601(3), Dec. 13, 1991, 105 Stat. 1878; Pub. L. 103-
354, title I, Secs. 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,
Sec. 143, June 20, 2000, 114 Stat. 391.)
References in Text
The civil-service laws, referred to in subsec. (a), are set out in
Title 5, Government Organization and Employees. See, particularly
section 3301 et seq. of Title 5.
In subsec. (a), ``chapter 51 and subchapter III of chapter 53 of
title 5'' substituted for ``the Classification Act of 1949'' on
authority of Pub. L. 89-554, Sec. 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 county crop insurance committeemen to have
their compensation fixed without regard to ``the Classification Act of
1923, as amended'' were omitted as obsolete. Sections 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 continuing the exceptions contained in this
subsection because of section 1106(b) which provided that the
application of the 1949 Act to any position, officer, or employee shall
not be affected by section 1106(a). The Classification Act of 1949 was
repealed by Act Sept. 6, 1966, Pub. L. 89-554, Sec. 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 provisions of
the 1949 Act, and section 5103 of Title 5 authorizes 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 September
7, 1916, as amended'' on authority of Pub. L. 89-554, Sec. 7(b), Sept.
6, 1966, 80 Stat. 631, the first section of which enacted Title 5,
Government Organization and Employees.
Amendments
2000--Subsec. (c). Pub. L. 106-224, in cl. (2), substituted
``actuarial services, services relating to loss adjustment and rating
plans of insurance,'' for ``actuarial, 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, Secs. 105(1), 115(b)(1),
substituted ``as the Secretary may determine appropriate. 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, Sec. 119(f)(2), substituted
``1508(h)'' for ``1508(b)'' in last sentence.
Subsec. (d). Pub. L. 103-354, Sec. 105(2), made technical amendment
to reference to section 1516 of this title and struck out before period
at end ``, except that employees or agencies responsible for
administering this chapter in each county shall be selected and
designated by the Corporation and shall be responsible directly to the
Corporation without the intervention of any intermediate office or
agency''.
Pub. L. 103-354, Sec. 102(b)(4)(B), (C), 115(b)(2), substituted
``Secretary'' for ``Secretary of Agriculture'', ``Department'' for
``Department of Agriculture'', and ``that the Secretary requests'' for
``as he may request''.
Subsec. (g). Pub. L. 103-354, Sec. 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 services that are or may readily be available in the
private sector,'' after ``private insurance companies'' and inserted 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, Sec. 104(1), inserted ``shall, to
the maximum extent possible'', incorporated existing provisions in cl.
(1), including in cl. (1) provision for payment of program expenses, but
omitting provision for inclusion of estimated expenses in insurance
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, Sec. 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 designation of
county employees and agencies and their direct responsibility.
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.
Repeals
Act Oct. 29, 1949, ch. 782, cited as a credit to this section, was
repealed (subject to a savings clause) by Pub. L. 89-554, Sept. 6, 1966,
Sec. 8, 80 Stat. 632, 655.
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.
Section Referred to in Other Sections
This section is referred to in section 1508 of this title.
