AFFIRM Act of 2020

II 116TH CONGRESS 2D SESSION S. 3292 To amend the Federal Crop Insurance Act to reduce Federal spending on crop insurance, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 13, 2020 Mrs. SHAHEEN (for herself and Mr. TOOMEY) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nu- trition, and Forestry A BILL To amend the Federal Crop Insurance Act to reduce Federal spending on crop insurance, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Assisting Family 4 Farmers through Insurance Reform Measures Act of 5 2020’’ or the ‘‘AFFIRM Act of 2020’’. 6 SEC. 2. CROP INSURANCE PREMIUM SUBSIDIES DISCLO- 7 SURE IN THE PUBLIC INTEREST. 8 Section 502(c)(2) of the Federal Crop Insurance Act 9 (7 U.S.C. 1502(c)(2)) is amended— 10 VerDate Sep 11 2014 00:16 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S3292.IS S3292 kjohnson on DSK79L0C42PROD with BILLS 2 •S 3292 IS (1) by redesignating subparagraphs (A) and 1 (B) as subparagraphs (C) and (D), respectively; and 2 (2) by inserting before subparagraph (C) (as so 3 redesignated) the following: 4 ‘‘(A) DISCLOSURE IN THE PUBLIC INTER- 5 EST.—Notwithstanding paragraph (1) or any 6 other provision of law, except as provided in 7 subparagraph (B), the Secretary shall on an 8 annual basis make available to the public— 9 ‘‘(i)(I) the name of each individual or 10 entity that obtained a federally subsidized 11 crop insurance, livestock, or forage policy 12 or plan of insurance during the previous 13 reinsurance year; 14 ‘‘(II) the amount of premium subsidy 15 received by the individual or entity from 16 the Corporation; and 17 ‘‘(III) the amount of any Federal por- 18 tion of indemnities paid in the event of a 19 loss for that reinsurance year for each pol- 20 icy associated with that individual or enti- 21 ty; and 22 ‘‘(ii) for each private insurance pro- 23 vider, a description by the name of the pri- 24 vate insurance provider of— 25 VerDate Sep 11 2014 00:16 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3292.IS S3292 kjohnson on DSK79L0C42PROD with BILLS 3 •S 3292 IS ‘‘(I) the underwriting gains 1 earned through participation in the 2 federally subsidized crop insurance 3 program; and 4 ‘‘(II) the amount paid under this 5 subtitle for— 6 ‘‘(aa) administrative and op- 7 erating expenses; 8 ‘‘(bb) any Federal portion of 9 indemnities and reinsurance; and 10 ‘‘(cc) any other purpose. 11 ‘‘(B) LIMITATION.—The Secretary shall 12 not disclose under subparagraph (A) informa- 13 tion relating to individuals and entities covered 14 by a catastrophic risk protection plan offered 15 under section 508(b).’’. 16 SEC. 3. ADJUSTED GROSS INCOME AND PER PERSON LIMI- 17 TATIONS ON SHARE OF INSURANCE PRE- 18 MIUMS PAID BY CORPORATION. 19 Section 508(e)(1) of the Federal Crop Insurance Act 20 (7 U.S.C. 1508(e)(1)) is amended— 21 (1) by striking ‘‘For the purpose’’ and inserting 22 the following: 23 VerDate Sep 11 2014 00:16 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3292.IS S3292 kjohnson on DSK79L0C42PROD with BILLS 4 •S 3292 IS ‘‘(A) PAYMENT AUTHORITY.—Subject to 1 subparagraphs (B) and (C), for the purpose’’; 2 and 3 (2) by adding at the end the following: 4 ‘‘(B) ADJUSTED GROSS INCOME LIMITA- 5 TION.—The Corporation shall not pay a part of 6 the premium for additional coverage for any 7 person or legal entity that has an average ad- 8 justed gross income (as defined in section 9 1001D(a) of the Food Security Act of 1985 (7 10 U.S.C. 1308–3a(a))) that is greater than 11 $250,000. 12 ‘‘(C) PER PERSON LIMITATION.—The Cor- 13 poration shall not pay more than $40,000 for 14 any reinsurance year to any person or legal en- 15 tity for premiums under this section.’’. 16 SEC. 4. PROHIBITION ON PREMIUM SUBSIDY FOR HARVEST 17 PRICE POLICIES. 18 Section 508(e) of the Federal Crop Insurance Act (7 19 U.S.C. 1508(e)) is amended by adding at the end the fol- 20 lowing: 21 ‘‘(9) PROHIBITION ON PREMIUM SUBSIDY FOR 22 HARVEST PRICE POLICIES.—Notwithstanding any 23 other provision of law, beginning with the 2020 rein- 24 surance year, the Corporation shall not pay any 25 VerDate Sep 11 2014 00:16 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3292.IS S3292 kjohnson on DSK79L0C42PROD with BILLS 5 •S 3292 IS amount of premium subsidy in the case of a policy 1 or plan of insurance that is based on the actual mar- 2 ket price of an agricultural commodity on the date 3 of harvest.’’. 4 SEC. 5. CAP ON OVERALL RATE OF RETURN FOR CROP IN- 5 SURANCE PROVIDERS. 6 Section 508(k)(3) of the Federal Crop Insurance Act 7 (7 U.S.C. 1508(k)(3)) is amended— 8 (1) by striking the paragraph designation and 9 heading and all that follows through ‘‘The’’ and in- 10 serting the following: 11 ‘‘(3) RISK.— 12 ‘‘(A) SHARE OF RISK.—The’’; and 13 (2) by adding at the end the following: 14 ‘‘(B) LIMITATION ON AVERAGE RATE OF 15 RETURN.—The target average rate of return for 16 reinsured companies for the 2020 reinsurance 17 year and each subsequent reinsurance year shall 18 be 8.9 percent of retained premiums.’’. 19 SEC. 6. CAP ON REIMBURSEMENTS FOR ADMINISTRATIVE 20 AND OPERATING EXPENSES OF CROP INSUR- 21 ANCE PROVIDERS. 22 Section 508(k)(4) of the Federal Crop Insurance Act 23 (7 U.S.C. 1508(k)(4)) is amended by adding at the end 24 the following: 25 VerDate Sep 11 2014 00:16 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3292.IS S3292 kjohnson on DSK79L0C42PROD with BILLS 6 •S 3292 IS ‘‘(G) ADDITIONAL CAP ON REIMBURSE- 1 MENTS.— 2 ‘‘(i) IN GENERAL.—Notwithstanding 3 subparagraphs (A) through (F), the total 4 amount of reimbursements for administra- 5 tive and operating costs for the 2020 rein- 6 surance year for all types of policies and 7 plans of insurance shall not exceed 8 $900,000,000. 9 ‘‘(ii) ADJUSTMENT.—For the 2021 re- 10 insurance year and each subsequent rein- 11 surance year, the dollar amount in effect 12 pursuant to clause (i) shall be increased by 13 the inflation factor established for the ad- 14 ministrative and operating costs limitation 15 in the 2011 Standard Reinsurance Agree- 16 ment.’’. 17 SEC. 7. RENEGOTIATION OF STANDARD REINSURANCE 18 AGREEMENT. 19 Section 508(k)(8) of the Federal Crop Insurance Act 20 (7 U.S.C. 1508(k)(8)) is amended by striking subpara- 21 graph (F). 22 Æ VerDate Sep 11 2014 00:16 Feb 15, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S3292.IS S3292 kjohnson on DSK79L0C42PROD with BILLS