§1516. Funding
(a) Authorization of appropriations
(1) Discretionary expenses
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.
(2) Mandatory expenses
There are authorized to be appropriated such sums as are necessary to cover-
(A) 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;
(B) premium subsidies, including the administrative and operating expenses of an approved insurance provider for the delivery of policies with additional coverage; and
(C) payments for noninsured assistance losses under section 1519 of this title.
(b) Payment of expenses
(1) Administrative and operating expenses
(A) In general
Except as provided in subparagraph (B), 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.
(B) Sales commissions for 1997 reinsurance year
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.
(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, noninsured assistance benefits, and indemnities;
(B) subject to paragraph (1)(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.
(c) Insurance fund
(1) In general
There is established an insurance fund, for the deposit of premium income and amounts made available under subsection (a)(2) of this section, 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, §516,
Amendments
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, §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, §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 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, §501, eff. July 16, 1946, 11 F.R. 7877,
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, §6,
Section Referred to in Other Sections
This section is referred to in sections 1507, 1508, 1519 of this title.