
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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.
