The bill amends the Farm Produce Insurance Act by updating Section 9, which pertains to the establishment and management of the farm produce insurance fund. Key changes include the rephrasing of the fund's composition, which now "consists" of administrative premiums, producer premiums, and other sources of income, rather than "shall consist." The maximum allocation for administrative expenses has been increased from $500,000 to $950,000 per fiscal year, and the language clarifies that legal fees and expenses are not to be classified as administrative expenses. Additionally, the bill specifies that the board must ensure compliance reviews of the investment portfolio are conducted quarterly and that audits include a certification regarding compliance with investment requirements.

Furthermore, the bill outlines the investment parameters for the fund, stipulating that investments must be made through a bank trust department or a registered professional investment advisor. It details the types of permissible investments, including U.S. government bonds, insured deposit accounts, corporate and municipal bonds, and common or preferred stocks, with specific limits on the amounts that can be invested in each category. The bill also emphasizes the need for compliance with investment regulations and establishes that the fund must operate on a fiscal year determined by the board.

Statutes affected:
Senate Introduced Bill: 285.319