RESEARCH AND DEVELOPMENT.

SEC. 12022. RESEARCH AND DEVELOPMENT.(a) In General.—Section 522(b) of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended by striking paragraphs (1) and (2) and inserting the following:“(1) Research and development payment.—“(A) In general.—The Corporation shall provide a payment to an applicant for research and development costs in accordance with this subsection.“(B) Reimbursement.—An applicant who submits a policy under section 508(h) shall be eligible for the reimbursement of reasonable research and development costs directly related to the policy if the policy is approved by the Board for sale to producers.“(2) Advance payments.—“(A) In general.—Subject to the other provisions of this paragraph, the Board may approve the request of an applicant for advance payment of a portion of reasonable research and development costs prior to submission and approval of the policy by the Board under section 508(h).“(B) Procedures.—The Board shall establish procedures for approving advance payment of reasonable research and development costs to applicants.“(C) Concept proposal.—As a condition of eligibility for advance payments, an applicant shall submit a concept proposal for the policy that the applicant plans to submit to the Board under section 508(h), consistent with procedures established by the Board for submissions under subparagraph (B), including—“(i) a summary of the qualifications of the applicant, including any prior concept proposals and submissions to the Board under section 508(h) and, if applicable, any work conducted under this section;“(ii) a projection of total research and development costs that the applicant expects to incur;“(iii) a description of the need for the policy, the marketability of and expected demand for the policy among affected producers, and the potential impact 122 STAT. 2145 of the policy on producers and the crop insurance delivery system;“(iv) a summary of data sources available to demonstrate that the policy can reasonably be developed and actuarially appropriate rates established; and“(v) an identification of the risks the proposed policy will cover and an explanation of how the identified risks are insurable under this title.“(D) Review.—“(i) Experts.—If the requirements of subparagraph (B) and (C) are met, the Board may submit a concept proposal described in subparagraph (C) to not less than 2 independent expert reviewers, whose services are appropriate for the type of concept proposal submitted, to assess the likelihood that the proposed policy being developed will result in a viable and marketable policy, as determined by the Board.“(ii) Timing.—The time frames described in subparagraphs (C) and (D) of section 508(h)(4) shall apply to the review of concept proposals under this subparagraph.“(E) Approval.—The Board may approve up to 50 percent of the projected total research and development costs to be paid in advance to an applicant, in accordance with the procedures developed by the Board for the making of such payments, if, after consideration of the reviewer reports described in subparagraph (D) and such other information as the Board determines appropriate, the Board determines that—“(i) the concept, in good faith, will likely result in a viable and marketable policy consistent with section 508(h);“(ii) in the sole opinion of the Board, the concept, if developed into a policy and approved by the Board, would provide crop insurance coverage—“(I) in a significantly improved form;“(II) to a crop or region not traditionally served by the Federal crop insurance program; or“(III) in a form that addresses a recognized flaw or problem in the program;“(iii) the applicant agrees to provide such reports as the Corporation determines are necessary to monitor the development effort;“(iv) the proposed budget and timetable are reasonable; and“(v) the concept proposal meets any other requirements that the Board determines appropriate.“(F) Submission of policy.—If the Board approves an advanced payment under subparagraph (E), the Board shall establish a date by which the applicant shall present a submission in compliance with section 508(h) (including the procedures implemented under that section) to the Board for approval.“(G) Final payment.—“(i) Approved policies.—If a policy is submitted under subparagraph (F) and approved by the Board under section 508(h) and the procedures established 122 STAT. 2146 by the Board (including procedures established under subparagraph (B)), the applicant shall be eligible for a payment of reasonable research and development costs in the same manner as policies reimbursed under paragraph (1)(B), less any payments made pursuant to subparagraph (E).“(ii) Policies not approved.—If a policy is submitted under subparagraph (F) and is not approved by the Board under section 508(h), the Corporation shall—“(I) not seek a refund of any payments made in accordance with this paragraph; and“(II) not make any further research and development cost payments associated with the submission of the policy under this paragraph.“(H) Policy not submitted.—If an applicant receives an advance payment and fails to fulfill the obligation of the applicant to the Board by not submitting a completed submission without just cause and in accordance with the procedures established under subparagraph (B)), including notice and reasonable opportunity to respond, as determined by the Board, the applicant shall return to the Board the amount of the advance plus interest.“(I) Repeated submissions.—The Board may prohibit advance payments to applicants who have submitted—“(i) a concept proposal or submission that did not result in a marketable product; or“(ii) a concept proposal or submission of poor quality.“(J) Continued eligibility.—A determination that an applicant is not eligible for advance payments under this paragraph shall not prevent an applicant from reimbursement under paragraph (1)(B).”.(b) Conforming Amendments.—Section 522(b) of the Federal Crop Insurance Act (7 U.S.C. 1522(b)) is amended—(1) in paragraph (3), by striking “or (2)”; and(2) in paragraph (4)(A), by striking “and (2)”.”