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7 U.S.C. § 1516 — Funding

submitted 88 years ago by ch. 30 to r/title-7-AGRICULTURE · 716 words · no verdicts yet

in plain englishAI-generated · not legal advice

This section authorizes the Corporation’s discretionary and mandatory expenses and allows specified payments from an insurance fund.

(a)(1) Congress may appropriate amounts needed for the Corporation’s salaries and expenses in fiscal year 1999 and later fiscal years. (2) For reinsurance year 1999 and later years, Congress may appropriate amounts needed for the Corporation’s agent-commission costs, premium subsidies and related delivery costs, livestock and wild-salmon pilot programs under section 1523 subject to its limit, and research-and-development reimbursement, contracting, and partnership costs under section 1522. (b)(1) In those reinsurance years, the Corporation may pay from the insurance fund all expenses other than those covered by (a)(1) and (a)(2)(A), including premium subsidies, indemnities, agent-commission costs, provider reimbursements, the section 1523 pilot programs subject to their limit, and section 1522 research-and-development costs. (2)(A) It may use up to $3,500,000 per fiscal year for considering and implementing policies, plans, and related materials under sections 1508(h), 1522, and 1523, and for contracts reviewing them under section 1505(e) or providing other help. (B) Dairy-options pilot-program amounts do not count toward that limit. (C)(i) For reinsurance year 2014 and later, it may use up to $7,000,000 in each fiscal year 2014–2025 and $10,000,000 in fiscal year 2026 and later for policy operations and reviews, including actuarial information, and for actuarial soundness and financial integrity. (ii) Without another appropriation, the Secretary may merge some or all of this money into Risk Management Agency accounts and obligate it. (iii) This money is additional to other available money. (c)(1) An insurance fund is established for premium income, money under (a)(2), and civil fines under section 1515(h), without a fiscal-year limit. (2) If the fund is insufficient for subsection (b), and Commodity Credit Corporation money is available, the Corporation may ask the Secretary to use it, and the Secretary may use it, for subsection (b).

the actual law source: uscode.house.gov ↗public domain
(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 subsection (a)(3)(E)(ii) of that section.

(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) all expenses of the Corporation (other than expenses covered by subsection (a)(1) 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 subsection (a)(3)(E)(ii) of that section.

(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), 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) Reviews, compliance, and integrity
(i) In general

For each of the 2014 and subsequent reinsurance years, the Corporation may use the insurance fund established under subsection (c), but not to exceed $7,000,000 for each of fiscal years 2014 through 2025 and $10,000,000 for fiscal year 2026 and each fiscal year thereafter, to pay costs—

(I)

to reimburse expenses incurred for the operations and review of policies, plans of insurance, and related materials (including actuarial and related information); and

(II)

to assist the Corporation in maintaining program actuarial soundness and financial integrity.

(ii) Secretarial action

For the purposes described in clause (i), the Secretary may, without further appropriation—

(I)

merge some or all of the funds made available under this subparagraph into the accounts of the Risk Management Agency; and

(II)

obligate those funds.

(iii) Maintenance of funding

Funds made available under this subparagraph shall be in addition to other funds made available for costs incurred by the Corporation or the Risk Management Agency.

(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), 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), 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); and

(B)

the Secretary may use the funds of the Commodity Credit Corporation to carry out subsection (b).

Source credit: (Feb. 16, 1938, ch. 30, title V, § 516, 52 Stat. 77; June 21, 1941, ch. 214, §§ 6, 8, 55 Stat. 255, 256; Aug. 3, 1956, ch. 950, § 10, 70 Stat. 1034; Pub. L. 96–365, title I, §§ 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, § 1021, Dec. 23, 1985, 99 Stat. 1459; Pub. L. 103–354, title I, § 110, Oct. 13, 1994, 108 Stat. 3198; Pub. L. 104–127, title I, § 193(e), Apr. 4, 1996, 110 Stat. 945; Pub. L. 105–185, title V, § 531, June 23, 1998, 112 Stat. 580; Pub. L. 106–224, title I, § 147, June 20, 2000, 114 Stat. 393; Pub. L. 113–79, title XI, § 11021, Feb. 7, 2014, 128 Stat. 968; Pub. L. 115–123, div. F, § 60101(c)(2), Feb. 9, 2018, 132 Stat. 312; Pub. L. 115–334, title XI, § 11118, Dec. 20, 2018, 132 Stat. 4926; Pub. L. 119–21, title I, § 10506, July 4, 2025, 139 Stat. 106.)

history & why it existsrecord from the source credit
  • 1938Enacted · Act of Feb. 16, 1938, ch. 30 · 52 Stat. 77
  • 1941Amended · Act of June 21, 1941, ch. 214 · 55 Stat. 255, 256
  • 1956Amended · Act of Aug. 3, 1956, ch. 950 · 70 Stat. 1034
  • 1980Amended · Pub. L. 96-365 · 94 Stat. 1317, 1318
  • 1981Amended · Pub. L. 97-11 · 95 Stat. 13
  • 1985Amended · Pub. L. 99-198 · 99 Stat. 1459
  • 1994Amended · Pub. L. 103-354 · 108 Stat. 3198
  • 1996Amended · Pub. L. 104-127 · 110 Stat. 945
  • 1998Amended · Pub. L. 105-185 · 112 Stat. 580
  • 2000Amended · Pub. L. 106-224 · 114 Stat. 393
  • 2014Amended · Pub. L. 113-79 · 128 Stat. 968
  • 2018Amended · Pub. L. 115-123 · 132 Stat. 312
  • 2018Amended · Pub. L. 115-334 · 132 Stat. 4926
  • 2025Amended · Pub. L. 119-21 · 139 Stat. 106

A history note hasn’t been published yet. The record shows enactment by ch. 30 on 1938-02-16.

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