§ 1516. — Funding.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1516]
TITLE 7--AGRICULTURE
CHAPTER 36--CROP INSURANCE
Sec. 1516. Funding
(a) Authorization of appropriations
(1) Discretionary expenses
There are authorized to be appropriated for fiscal year 1999 and
each subsequent fiscal year such sums as are necessary to cover the
salaries and expenses of the Corporation.
(2) Mandatory expenses
There are authorized to be appropriated such sums as are
necessary to cover for each of the 1999 and subsequent reinsurance
years the following:
(A) The administrative and operating expenses of the
Corporation for the sales commissions of agents.
(B) Premium subsidies, including the administrative and
operating expenses of an approved insurance provider for the
delivery of policies with additional coverage.
(C) Costs associated with the conduct of livestock and wild
salmon pilot programs carried out under section 1523 of this
title, subject to the limitations in subsections (a)(3)(E)(ii)
and (b)(10) of section 1523 of this title.
(D) Costs associated with the reimbursement, contracting,
and partnerships for research and development under section 1522
of this title.
(b) Payment of Corporation expenses from insurance fund
(1) Expenses generally
For each of the 1999 and subsequent reinsurance years, the
Corporation may pay from the insurance fund established under
subsection (c) of this section all expenses of the Corporation
(other than expenses covered by subsection (a)(1) of this section
and expenses covered by paragraph (2)(A)), including the following:
(A) Premium subsidies and indemnities.
(B) Administrative and operating expenses of the Corporation
necessary to pay the sales commissions of agents.
(C) All administrative and operating expense reimbursements
due under a reinsurance agreement with an approved insurance
provider.
(D) Costs associated with the conduct of livestock and wild
salmon pilot programs carried out under section 1523 of this
title, subject to the limitations in subsections (a)(3)(E)(ii)
and (b)(10) of section 1523 of this title.
(E) Costs associated with the reimbursement, contracting,
and partnerships for research and development under section 1522
of this title.
(2) Policy consideration and implementation
(A) In general
For each of the 1999 and subsequent reinsurance years, the
Corporation may use the insurance fund established under
subsection (c) of this section, but not to exceed $3,500,000 for
each fiscal year, to pay the following:
(i) Costs associated with the consideration and
implementation of policies, plans of insurance, and related
materials submitted under section 1508(h) of this title or
developed under section 1522 or 1523 of this title.
(ii) Costs to contract for the review of policies, plans
of insurance, and related materials under section 1505(e) of
this title and to contract for other assistance in
considering policies, plans of insurance, and related
materials.
(B) Dairy options pilot program
Amounts necessary to carry out the dairy options pilot
program shall not be counted toward the limitation on expenses
specified in subparagraph (A).
(c) Insurance fund
(1) In general
There is established an insurance fund, for the deposit of
premium income, amounts made available under subsection (a)(2) of
this section, and civil fines collected under section 1515(h) of
this title, to be available without fiscal year limitation.
(2) Commodity Credit Corporation funds
If at any time the amounts in the insurance fund are
insufficient to enable the Corporation to carry out subsection (b)
of this section, to the extent the funds of the Commodity Credit
Corporation are available--
(A) the Corporation may request the Secretary to use the
funds of the Commodity Credit Corporation to carry out
subsection (b) of this section; and
(B) the Secretary may use the funds of the Commodity Credit
Corporation to carry out subsection (b) of this section.
(Feb. 16, 1938, ch. 30, title V, Sec. 516, 52 Stat. 77; June 21, 1941,
ch. 214, Secs. 6, 8, 55 Stat. 255, 256; Aug. 3, 1956, ch. 950, Sec. 10,
70 Stat. 1034; Pub. L. 96-365, title I, Secs. 109, 110, Sept. 26, 1980,
94 Stat. 1317, 1318; Pub. L. 97-11, May 22, 1981, 95 Stat. 13; Pub. L.
99-198, title X, Sec. 1021, Dec. 23, 1985, 99 Stat. 1459; Pub. L. 103-
354, title I, Sec. 110, Oct. 13, 1994, 108 Stat. 3198; Pub. L. 104-127,
title I, Sec. 193(e), Apr. 4, 1996, 110 Stat. 945; Pub. L. 105-185,
title V, Sec. 531, June 23, 1998, 112 Stat. 580; Pub. L. 106-224, title
I, Sec. 147, June 20, 2000, 114 Stat. 393.)
Amendments
2000--Subsec. (a)(2). Pub. L. 106-224, Sec. 147(a), in introductory
provisions, substituted ``years the following:'' for ``years--'', in
subpar. (A), substituted ``The'' for ``the'' and a period for ``; and''
at end, in subpar. (B), substituted ``Premium'' for ``premium'', and
added subpars. (C) and (D).
Subsec. (b)(1). Pub. L. 106-224, Sec. 147(b), in introductory
provisions, substituted ``including the following:'' for ``including--
'', in subpar. (A), substituted ``Premium'' for ``premium'' and a period
for the semicolon at end, in subpar. (B), substituted ``Administrative''
for ``administrative'' and a period for ``; and'' at end, in subpar.
(C), substituted ``All'' for ``all'', and added subpars. (D) and (E).
Subsec. (b)(2). Pub. L. 106-224, Sec. 147(c)(1), substituted
``Policy consideration and implementation'' for ``Research and
development expenses'' in heading.
Subsec. (b)(2)(A). Pub. L. 106-224, Sec. 147(c)(2), substituted
``may use'' for ``may pay from'', struck out ``research and development
expenses of the Corporation'' before ``, but not to exceed'',
substituted ``, to pay the following:'' for period at end, and added
cls. (i) and (ii).
Subsec. (b)(2)(B). Pub. L. 106-224, Sec. 147(c)(3), struck out
``research and development'' after ``the limitation on''.
Subsec. (c)(1). Pub. L. 106-224, Sec. 147(d), substituted
``income,'' for ``income and'' and inserted ``, and civil fines
collected under section 1515(h) of this title'' before ``, to be
available''.
1998--Subsec. (a)(1). Pub. L. 105-185, Sec. 531(1)(A), added par.
(1) and struck out heading and text of former par. (1). Text read as
follows: ``There are authorized to be appropriated for each of fiscal
years 1995 through 2001 such sums as are necessary to cover--
``(A) the salaries and expenses of the Corporation; and
``(B) the administrative and operating expenses of the
Corporation for the sales commissions of agents.''
Subsec. (a)(2). Pub. L. 105-185, Sec. 531(1)(B)(i), inserted ``for
each of the 1999 and subsequent reinsurance years'' after ``are
necessary to cover'' in introductory provisions.
Subsec. (a)(2)(A). Pub. L. 105-185, Sec. 531(1)(B)(ii), added
subpar. (A) and struck out former subpar. (A) which read as follows:
``in the case of each of the 1995 through 1997 reinsurance years, the
administrative and operating expenses of the Corporation for the sales
commissions of agents, consistent with subsection (b)(1) of this
section; and''.
Subsec. (b). Pub. L. 105-185, Sec. 531(2), added subsec. (b) and
struck out heading and text of former subsec. (b). Text read as follows:
``(1) Administrative and operating expenses.--In the case of each of
the 1995 through 1997 reinsurance years, the Corporation is authorized
to pay from the insurance fund established under subsection (c) of this
section, the administrative and operating expenses of an approved
insurance provider, including expenses covered by subsection (a)(1)(B)
of this section.
``(2) Other expenses.--The Corporation is authorized to pay from the
insurance fund established under subsection (c) of this section--
``(A) all other expenses of the Corporation (other than expenses
covered by subsection (a)(1) of this section), including all premium
subsidies and indemnities;
``(B) in the case of each of the 1995 through 1997 reinsurance
years, all administrative and expense reimbursements due under a
reinsurance agreement with an approved insurance provider; and
``(C) to the extent necessary, expenses incurred by the
Corporation to carry out research and development.''
1996--Subsec. (a)(2)(C). Pub. L. 104-127, Sec. 193(e)(1), struck out
subpar. (C) which read as follows: ``payments for noninsured assistance
losses under section 1519 of this title.''
Subsec. (b)(1). Pub. L. 104-127, Sec. 193(e)(2)(A), struck out
subpar. (A) designation and heading ``In general'', substituted ``In the
case of each'' for ``Except as provided in subparagraph (B), in the case
of each'', and struck out heading and text of subpar. (B). Prior to
amendment, text read as follows: ``In the case of the 1997 reinsurance
year, the amount of the payments from the insurance fund established
under subsection (c) of this section for the expenses of the Corporation
for the sales commissions of agents may not exceed 8.5 percent of the
total amount of premiums paid for additional coverage for the 1997
reinsurance year.''
Subsec. (b)(2)(A). Pub. L. 104-127, Sec. 193(e)(3), struck out ``,
noninsured assistance benefits,'' after ``all premium subsidies''.
Subsec. (b)(2)(B). Pub. L. 104-127, Sec. 193(e)(2)(B), struck out
``subject to paragraph (1)(B),'' before ``in the case of each''.
1994--Pub. L. 103-354 amended section generally, substituting
subsecs. (a) to (c) for former subsecs. (a) to (d) relating to
authorization of appropriations to cover operating and administrative
costs of Corporation, issuance of regulations, emergency funding, and
borrowing authority.
1985--Subsec. (c)(1). Pub. L. 99-198 struck out provision that
Secretary's authority to use the funds of Commodity Credit Corporation
for purposes of this subsection would expire one year after date on
which that authority was first used.
1981--Subsec. (a). Pub. L. 97-11 designated existing provisions as
par. (1) and added par. (2).
1980--Subsec. (a). Pub. L. 96-365, Sec. 109, substituted
appropriations authorization of necessary sums for former limitation of
$12,000,000 for each fiscal year beginning after June 30, 1938; included
as costs agents' and brokers' commissions, interest on Treasury notes
and other obligations, partial premium payments by the Corporation, and
the direct cost of loss adjusters for crop inspections and loss
adjustments and authorized payment of these costs from premium income
and other Corporation funds and restoration of such payments through
subsequent year appropriations; prescribed limitation on employment of
additional personnel except during emergencies; and deleted provisions
for for consideration as being nonadministrative or nonoperating
expenses such expenses as related to purchase, transportation, handling,
or sale of the agricultural commodity and the direct cost of loss
adjusters for crop inspections and loss adjustments and provision for
use of premium income for administrative and operating costs within
limits prescribed in applicable appropriations.
Subsecs. (c), (d). Pub. L. 96-365, Sec. 110, added subsecs. (c) and
(d).
1956--Subsec. (a). Act Aug. 3, 1956, added to list of costs which
may be considered as nonadministrative or nonoperating, the direct cost
of loss adjusters for crop inspections and loss adjustment, and
authorized use of premium income for administrative and operating costs
within limits prescribed by applicable appropriation.
1941--Subsec. (a). Act June 21, 1941, substituted ``the agricultural
commodity'' for ``wheat'', and ``$12,000,000'' for ``$6,000,000''.
Effective Date of 1998 Amendment
Amendment by Pub. L. 105-185 effective July 1, 1998, see section 537
of Pub. L. 105-185, set out as a note under section 1506 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.) 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
Section 109 of Pub. L. 96-365 provided that the amendment made by
that section is effective Oct. 1, 1980.
Section 110 of Pub. L. 96-365 provided that the amendment made by
that section is effective Oct. 1, 1980.
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.
Additional Appropriation
Act Dec. 23, 1944, ch. 713, Sec. 6, 58 Stat. 920, provided an
additional appropriation not to exceed $3,000,000 to be available for
the fiscal year 1945 to carry out the provisions of this chapter for the
fiscal years 1943 and 1944.
Section Referred to in Other Sections
This section is referred to in sections 1505, 1507, 1508, 1515, 1522
of this title.
