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        PRIOR PRINTER'S NO. 1161                      PRINTER'S NO. 1851

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 912 Session of 2003


        INTRODUCED BY WAUGH, WENGER, O'PAKE, MADIGAN, KUKOVICH, KITCHEN,
           LOGAN, MOWERY, D. WHITE, CORMAN, ERICKSON, DENT, RAFFERTY,
           M. WHITE, GREENLEAF, MUSTO, LEMMOND, ARMSTRONG, WONDERLING,
           ROBBINS, WOZNIAK, KASUNIC AND BOSCOLA, SEPTEMBER 16, 2003

        SENATOR THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
           AMENDED, OCTOBER 4, 2004

                                     AN ACT

     1  Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
     2     Statutes, providing for crop insurance premium payments and
     3     for a report by the Department of Agriculture; and making a
     4     repeal.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Title 3 of the Pennsylvania Consolidated Statutes
     8  is amended by adding a chapter to read:
     9                             CHAPTER 47
    10                           CROP INSURANCE
    11  Sec.
    12  4701.  Definitions.                                               <--
    13  4702.  Powers and duties of department.
    14  4703.  Federal crop insurance premiums.
    15  4704.  Funding.
    16  4705.  Report.
    17  § 4701.  Definitions.


     1  4701.  SHORT TITLE OF CHAPTER.                                    <--
     2  4702.  PURPOSE OF CHAPTER.
     3  4703.  DEFINITIONS.
     4  4704.  ESTABLISHMENT OF PROGRAM.
     5  4705.  POWERS AND DUTIES OF DEPARTMENT.
     6  4706.  CROP INSURANCE FINANCIAL ASSISTANCE.
     7  4707.  FUNDING.
     8  4708.  REPORT.
     9  § 4701.  SHORT TITLE OF CHAPTER.
    10     THIS CHAPTER SHALL BE KNOWN AND MAY BE CITED AS THE CROP
    11  INSURANCE LAW.
    12  § 4702.  PURPOSE OF CHAPTER.
    13     THE PURPOSE OF THIS CHAPTER IS TO ESTABLISH A PROGRAM WITHIN
    14  THE DEPARTMENT TO ENCOURAGE PRODUCERS OF AGRICULTURAL
    15  COMMODITIES TO PURCHASE FEDERAL CROP INSURANCE AND ADOPT RISK
    16  MANAGEMENT PRACTICES, AND TO PROVIDE CROP INSURANCE FINANCIAL
    17  ASSISTANCE, SUBJECT TO THE AVAILABILITY OF FUNDING, TO ELIGIBLE
    18  PRODUCERS FOR CROP INSURANCE PREMIUM COSTS.
    19  § 4703.  DEFINITIONS.
    20     The following words and phrases when used in this chapter
    21  shall have the meanings given to them in this section unless the
    22  context clearly indicates otherwise:
    23     "Agricultural commodity."  Any of the following, transported
    24  or intended to be transported in commerce:
    25         (1)  Agricultural, aquacultural, horticultural,
    26     floricultural, viticultural or dairy products.
    27         (2)  Agricultural crops.
    28         (3)  Livestock and products of livestock.
    29         (4)  Poultry and products of poultry.
    30         (5)  Ranch-raised fur-bearing animals and the products of
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     1     ranch-raised fur-bearing animals.
     2         (6)  The products of bee raising.
     3         (7)  Forestry and forestry products.
     4         (8)  Any products raised or produced on farms intended
     5     for on farm or human consumption and the processed or
     6     manufactured products of such products intended for human
     7     consumption.
     8     "ELIGIBLE PRODUCER."  A PRODUCER WHO HAS APPLIED FOR AND HAS   <--
     9  RECEIVED FEDERAL CROP INSURANCE FOR THE CROP YEAR FOR WHICH CROP
    10  INSURANCE FINANCIAL ASSISTANCE IS SOUGHT.
    11     "Producer."  Any person engaged within this Commonwealth in
    12  the business of producing an agricultural commodity or causing
    13  agricultural commodities to be produced.
    14  § 4702.  Powers and duties of department.                         <--
    15  § 4704.  ESTABLISHMENT OF PROGRAM.                                <--
    16     THE DEPARTMENT SHALL ESTABLISH A PROGRAM TO EDUCATE PRODUCERS
    17  ON THE BENEFITS OF FEDERAL CROP INSURANCE AND RISK MANAGEMENT
    18  PRACTICES. THE PROGRAM SHALL PROMOTE THE PURCHASE OF FEDERAL
    19  CROP INSURANCE AND MAY PROVIDE FINANCIAL ASSISTANCE TO ELIGIBLE
    20  PRODUCERS TO PARTIALLY OFFSET FEDERAL CROP INSURANCE PREMIUMS.
    21  THE PROVISION OF FINANCIAL ASSISTANCE SHALL BE SUBJECT TO THE
    22  AVAILABILITY OF FUNDING.
    23  § 4705.  POWERS AND DUTIES OF DEPARTMENT.
    24     (a)  Administration of chapter.--Subject to the conditions
    25  contained in this chapter, the department shall administer this
    26  chapter and shall exercise all administrative powers necessary
    27  to effectuate the purposes of this chapter, including, BUT NOT    <--
    28  LIMITED TO, drafting and entering into agreements necessary to
    29  implement this chapter. CHAPTER, ESTABLISHING ELIGIBILITY         <--
    30  CRITERIA FOR CROP INSURANCE FINANCIAL ASSISTANCE, AND DEVELOPING
    20030S0912B1851                  - 3 -     

     1  AN APPLICATION AND APPLICATION PROCEDURE FOR CROP INSURANCE
     2  FINANCIAL ASSISTANCE INCLUDING TIME FRAMES FOR THE SUBMISSION,
     3  REVIEW AND APPROVAL OF APPLICATIONS.
     4     (b)  Drafting and entering agreements.--The department is
     5  authorized to draft and enter into agreements with Federal
     6  agencies, other Commonwealth agencies and private entities as
     7  necessary to implement this chapter.
     8     (c)  Program development.--The department is authorized to     <--
     9  utilize a portion of any funds appropriated by the General
    10  Assembly or any funds, contributions or payments which may be
    11  made available to the department by another State agency, the
    12  Federal Government or any public or private source for the
    13  purpose of risk management program development and
    14  administration.
    15  § 4703.  Federal crop insurance premiums.
    16     (C)  REGULATIONS.--THE DEPARTMENT IS AUTHORIZED TO PROMULGATE  <--
    17  ANY REGULATIONS THAT MAY BE NECESSARY TO IMPLEMENT THIS CHAPTER.
    18  § 4706.  CROP INSURANCE FINANCIAL ASSISTANCE.
    19     The department may provide payment CROP INSURANCE FINANCIAL    <--
    20  ASSISTANCE TO ELIGIBLE PRODUCERS for Federal crop insurance in
    21  an amount up to 10% of the cost of the insurance premiums for     <--
    22  producers of agricultural commodities who applied for and
    23  received Federal crop insurance for that crop year, in years in
    24  which funds are appropriated or made available to the
    25  department. If sufficient funds are not available to provide for
    26  up to 10% of the cost of the insurance premiums, the department
    27  shall prorate the available funds among all the producers of
    28  agricultural commodities who applied for and received Federal
    29  crop insurance for that crop year.
    30  § 4704.  Funding.                                                 <--
    20030S0912B1851                  - 4 -     

     1     (a)  Continuous appropriation.--Money under this chapter is
     2  continuously appropriated to the department, and the
     3  appropriation shall not lapse at the end of any fiscal year.
     4     (b)
     5  § 4707.  FUNDING.                                                 <--
     6     (A)  Use of specific appropriations, contributions and other
     7  payments.--The department is authorized to use funds
     8  specifically appropriated by the General Assembly for the
     9  purposes of this chapter and any funds, contributions or
    10  payments which may be made available to the department by
    11  another State agency, the Federal Government or any public or
    12  private source for the purpose of implementing this chapter.
    13  § 4705.  Report.                                                  <--
    14     (B)  CONTINUING APPROPRIATIONS.--MONEYS APPROPRIATED BY THE    <--
    15  GENERAL ASSEMBLY, AFTER THE EFFECTIVE DATE OF THIS SECTION, FOR
    16  THE PURPOSES OF THIS CHAPTER, SHALL BE TWO-YEAR CONTINUING
    17  APPROPRIATIONS AND SHALL LAPSE AT THE CLOSE OF THE FISCAL YEAR
    18  NEXT SUCCEEDING THE FISCAL YEAR IN WHICH THE MONEYS WERE
    19  APPROPRIATED.
    20  § 4708.  REPORT.
    21     The department shall submit annually to the CHAIRMAN AND       <--
    22  MINORITY CHAIRMAN OF THE Agriculture and Rural Affairs Committee
    23  of the Senate and the CHAIRMAN AND MINORITY CHAIRMAN OF THE       <--
    24  Agriculture and Rural Affairs Committee of the House of
    25  Representatives a report that provides details of the
    26  department's expenditures, including administrative
    27  expenditures, under this chapter.
    28     Section 2.  Section 5102(b) of the act of December 13, 1999
    29  (P.L.905, No.57), known as the Drought, Orchard and Nursery
    30  Indemnity and Flood Relief Act, is repealed.
    20030S0912B1851                  - 5 -     

     1     Section 3.  This act shall take effect in 60 days.




















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