I-SEARCH (tm) V1.89P Retrieved Documents Listing on 10/12/93 at 00:26:09. Database: USCODE Search: (7:CITE) ------DocID 9047 Document 1 of 2641------ -CITE- 7 USC TITLE 7 -EXPCITE- TITLE 7 -HEAD- TITLE 7 - AGRICULTURE -MISC1- Chap. Sec. 1. Commodity Exchanges 1 2. Cotton Standards 51 3. Grain Standards 71 4. Naval Stores 91 5. Importation of Adulterated Seeds (Repealed) 111 6. Insecticides and Environmental Pesticide Control 121 6A. National Laboratory Accreditation 138 7. Insect Pests Generally 141 7A. Golden Nematode 150 7B. Plant Pests 150aa 8. Nursery Stock and Other Plants and Plant Products 151 8A. Rubber and Other Critical Agricultural Materials 171 9. Packers and Stockyards 181 10. Warehouses 241 11. Honeybees 281 12. Associations of Agricultural Products Producers 291 13. Agricultural and Mechanical Colleges 301 14. Agricultural Experiment Stations 361 15. Bureau of Animal Industry 391 16. Bureau of Dairy Industry 401 17. Miscellaneous Matters 411 18. Cooperative Marketing 451 19. Cotton Statistics and Estimates 471 20. Dumping or Destruction of Interstate Produce 491 20A. Perishable Agricultural Commodites 499a 21. Tobacco Statistics 501 21A. Tobacco Inspection 511 21B. Tobacco Control 515 22. Agricultural Marketing (Omitted or Transferred) 521 23. Foreign Agricultural Service (Repealed) 541 24. Perishable Agricultural Commodities (Transferred to Chapter 20A) 551 25. Export Standards for Apples and Pears 581 25A. Export Standards for Grapes and Plums 591 26. Agricultural Adjustment 601 26A. Agricultural Marketing Agreements 671 27. Cotton Marketing (Omitted or Repealed) 701 28. Tobacco Industry (Repealed) 751 29. Potato Act of 1935 (Repealed) 801 30. Anti-Hog-Cholera Serum and Hog-Cholera Virus 851 31. Rural Electrification and Telephone Service 901 31A. Distance Learning and Medical Link Programs 950aaa 32. Peanut Statistics 951 33. Farm Tenancy 1000 34. Sugar Production and Control (Omitted or Repealed) 1100 35. Agricultural Adjustment Act of 1938 1281 35A. Price Support of Agricultural Commodities 1421 36. Crop Insurance 1501 37. Seeds 1551 38. Distribution and Marketing of Agricultural Products 1621 39. Stabilization of International Wheat Market 1641 40. Halogeton Glomeratus Control 1651 41. Agricultural Trade Development and Assistance 1691 42. Agricultural Commodity Set-Aside 1741 43. Foreign Market Development 1761 44. Wool Program 1781 45. Soil Bank Program 1801 46. Surplus Disposal of Agricultural Commodities 1851 47. Interchange of Department of Agriculture and State Employees (Repealed) 1881 48. Humane Methods of Livestock Slaughter 1901 49. Consultation on Agricultural Programs 1911 50. Agricultural Credit 1921 51. Food Stamp Program 2011 52. Farm Labor Contractor Registration (Repealed) 2041 53. Cotton Research and Promotion 2101 54. Transportation, Sale, and Handling of Certain Animals 2131 55. Department of Agriculture 2201 55A. Department of Agriculture Advisory Committees 2281 56. Unfair Trade Practice Affecting Producers of Agricultural Products 2301 57. Plant Variety Protection 2321 58. Potato Research and Promotion 2611 59. Rural Fire Protection, Development, and Small Farm Research and Education 2651 60. Egg Research and Consumer Information 2701 61. Noxious Weeds 2801 62. Beef Research and Information 2901 63. Farmer-to-Consumer Direct Marketing 3001 64. Agricultural Research, Extension, and Teaching 3101 65. Wheat and Wheat Foods Research and Nutrition Education 3401 66. Agricultural Foreign Investment Disclosure 3501 67. Implementation of International Sugar Agreement, 1977 3601 68. Agricultural Subterminal Facilities 3701 69. Swine Health Protection 3801 70. Animal Cancer Research 3901 71. Agricultural Trade Suspension Adjustment 4001 72. National Agricultural Cost of Production Standards Review Board 4101 73. Farmland Protection Policy 4201 74. Floral Research and Consumer Information 4301 75. International Carriage of Perishable Foodstuffs 4401 76. Dairy Research and Promotion 4501 77. Honey Research, Promotion, and Consumer Information 4601 78. Agricultural Productivity Research (Repealed) 4701 79. Pork Promotion, Research, and Consumer Information 4801 80. Watermelon Research and Promotion 4901 81. National Commission on Agriculture and Rural Development Policy 5001 82. State Agricultural Loan Mediation Programs 5101 83. Agricultural Competitiveness and Trade 5201 84. National Nutrition Monitoring and Related Research 5301 85. Administration of Environmental Programs 5401 86. Water Quality Research, Education, and Coordination 5501 87. Export Promotion 5601 88. Research 5801 89. Pecan Promotion and Research 6001 90. Mushroom Promotion, Research, and Consumer Information 6101 91. Lime Promotion, Research, and Consumer Information 6201 92. Soybean Promotion, Research, and Consumer Information 6301 93. Processor-Funded Milk Promotion Program 6401 94. Organic Certification 6501 95. Rural Revitalization Through Forestry 6601 96. Global Climate Change 6701 ------DocID 9073 Document 2 of 2641------ -CITE- 7 USC Sec. 7 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 7. Designation of board of trade as 'contract market'; conditions and requirements -STATUTE- The Commission is hereby authorized and directed to designate any board of trade as a 'contract market' when, and only when, such board of trade complies with and carries out the following conditions and requirements: (a) When located at a terminal market where any cash commodity of the kind specified in the contracts of sale of commodities for future delivery to be executed on such board is sold in sufficient volumes and under such conditions as fairly to reflect the general value of the commodity and the differences in value between the various grades of such commodity, and where there is available to such board of trade, official inspection service approved by the Secretary of Agriculture or the Commission for the purpose: Provided, That any board of trade not so located shall be designated as a 'contract market' if such board of trade provides for the delivery of commodities on such contracts at a delivery point or points and upon terms and conditions approved by the Commission. (b) When the governing board thereof provides for the making and filing by the board or any member thereof, as the Commission may direct, of reports in accordance with the rules and regulations, and in such manner and form and at such times as may be prescribed by the Commission, showing the details and terms of all transactions entered into by the board, or the members thereof, either in cash transactions or transactions for future delivery consummated on or subject to the rules of a board of trade, and when such governing board provides, in accordance with such rules and regulations, for the keeping of a record by the board or the members of the board of trade, as the Commission may direct, showing the details and terms of all cash and future transactions entered into by them, consummated on or subject to the rules of a board of trade, such record to be in permanent form, showing the parties to all such transactions, including the persons for whom made, any assignments or transfers thereof, with the parties thereto, and the manner in which said transactions are fulfilled, discharged, or terminated. Such record shall be required to be kept for a period of three years from the date thereof, or for a longer period if the Commission shall so direct, and shall at all times be open to the inspection of any representative of the Commission or United States Department of Justice. (c) When the governing board thereof provides for the prevention of dissemination by the board or any member thereof of false or misleading or knowingly inaccurate reports concerning crop or market information or conditions that affect or tend to affect the price of any commodity in interstate commerce. (d) When the governing board thereof provides for the prevention of manipulation of prices and the cornering of any commodity by the dealers or operators upon such board. (e) When the governing board thereof does not exclude from membership in and all privileges on such board of trade any duly authorized representative of any lawfully formed and conducted cooperative association of producers having adequate financial responsibility which is engaged in any cash commodity business, if such association has complied, and agrees to comply, with such terms and conditions as are or may be imposed lawfully on other members of such board: Provided, That no rule of a contract market shall forbid or be construed to forbid the return on a patronage basis by such cooperative association to its bona fide members of moneys collected in excess of the expense of conducting the business of such association. (f) When the governing board provides for making effective the final orders or decisions entered pursuant to the provisions of section 9 of this title, and the orders issued pursuant to the provisions of section 7a of this title, and for compliance in all other respects with the requirements applicable to such board of trade under this chapter. (g) When such board of trade demonstrates that transactions for future delivery in the commodity for which designation as a contract market is sought will not be contrary to the public interest. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 5, 42 Stat. 1000; June 15, 1936, ch. 545, Sec. 2, 6, 49 Stat. 1491, 1497; Feb. 19, 1968, Pub. L. 90-258, Sec. 10, 11, 82 Stat. 29; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (f), (g), title II, Sec. 207, 88 Stat. 1392, 1400.) -MISC1- AMENDMENTS 1974 - Pub. L. 93-463, Sec. 103(a), substituted 'Commission' for 'Secretary of Agriculture' in provisions preceding par. (a). Par. (a). Pub. L. 93-463, Sec. 103(a), (g), substituted 'official inspection service approved by the Secretary of Agriculture or the Commission for the purpose' for 'official inspection service approved by the Secretary of Agriculture for the purpose' and 'Commission' for 'Secretary of Agriculture'. Par. (b). Pub. L. 93-463, Sec. 103(a), (f), substituted 'Commission' for 'Secretary of Agriculture' and 'United States Department of Agriculture'. Par. (g). Pub. L. 93-463, Sec. 207, added par. (g). 1968 - Par. (b). Pub. L. 90-258, Sec. 10, substituted 'cash transactions or transactions for future delivery consummated on or subject to the rules of a board of trade' for 'cash transactions consummated at, on, or in a board of trade, or transactions for future delivery' and 'consummated on or subject to the rules of a board of trade' for 'consummated at, on, or in a board of trade' where appearing the second time, respectively. Par. (f). Pub. L. 90-258, Sec. 11, prescribed as additional conditions and requirements for designation of board of trade as contract market that governing board provide for making effective the orders issued pursuant to the provisions of section 7a of this title and for compliance in all other respects with the requirements applicable to the board of trade under this chapter. 1936 - June 15, 1936, Sec. 2, substituted 'commodity', 'any commodity', or 'commodities', as the case may require, for 'grain' wherever appearing. Act June 15, 1936, Sec. 6, inserted proviso in par. (a), and substituted 'and' for 'or' after 'prices.' EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1936 AMENDMENT Amendment by act June 15, 1936, effective 90 days after June 15, 1936, see section 13 of that act, set out as a note under section 1 of this title. -CROSS- CROSS REFERENCES Showing of compliance with conditions and requirements of this section to accompany application for designation as contract market, see section 8 of this title. Showing of noncompliance with conditions and requirements of this section as authorizing suspension or revocation of designation as a contract market, see section 8 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2, 8, 13a of this title; title 15 section 78c. ------DocID 9228 Document 3 of 2641------ -CITE- 7 USC CHAPTER 7 -EXPCITE- TITLE 7 CHAPTER 7 -HEAD- CHAPTER 7 - INSECT PESTS GENERALLY -MISC1- Sec. 141 to 147. Repealed or Omitted. 147a. Control and eradication of plant pests. (a) Authority of Secretary of Agriculture. (b) Intergovernmental cooperation. (c) Cooperating foreign agency. (d) Definitions. (e) Rules and regulations. (f) Authorization of appropriations; fees, late payment penalties, and accrued interest. 147b. Emergency transfer of funds by Secretary of Agriculture. 148. Control of insect pests and plant diseases. 148a. Availability of appropriated money for general administration; personnel; field work, etc. 148b. Repealed. 148c. Control of insect pests and plant diseases; cooperation of States. 148d. Restrictions on appropriations. 148e. Authorization of appropriations. 148f. Control of grasshoppers and Mormon Crickets on Federal lands. (a) Authority of Secretary of Agriculture. (b) Funds for lands subject to jurisdiction of Federal Government or Federal lands subject to jurisdiction of Secretary of the Interior; prompt requests for transferred funds and for replenishing appropriations. (c) Exhaustion of contingency grasshopper emergency funds before availability of transferred funds for control of outbreaks on Federal lands subject to jurisdiction of Secretary of the Interior. (d) Time for treatment of lands dependent on determination of economic damage. (e) Amount of payments for costs of control on Federal, State, and private lands; interrelated participation efforts. (f) Funding of personnel training program. 149. Regulation, cleaning, etc., of vehicles and materials entering from Mexico. (a) Administration by Secretary; fees. (b) Penalties. MEDITERRANEAN FRUIT FLY INVESTIGATION BOARD Act May 23, 1938, ch. 260, 52 Stat. 436, which created the Board for investigative purposes expired by its own terms on Mar. 15, 1939. TICK ERADICATION ON SEMINOLE RESERVATION IN FLORIDA Act July 22, 1942, ch. 516, 56 Stat. 675, which provided in part for the eradication of ticks on the Seminole Reservation, was a provision of the Department of Agriculture Appropriation Act, 1943, and expired on June 30, 1943. ------DocID 7132 Document 4 of 2641------ -CITE- 2 USC Sec. 61h-7 -EXPCITE- TITLE 2 CHAPTER 4 -HEAD- Sec. 61h-7. Chiefs of Staff for Senate Majority and Minority Leaders; appointment; compensation -STATUTE- (a) There is established within the Offices of the Majority and Minority Leaders the positions of Chief of Staff for the Majority Leader and Chief of Staff for the Minority Leader, respectively. Individuals appointed to such positions by the Majority Leader and Minority Leader, respectively, shall receive compensation at a rate fixed by the appropriate Leader not to exceed the maximum annual rate of gross compensation of the Assistant Secretary of the Senate. (b) Gross compensation for employees filling positions established by subsection (a) of this section for the fiscal year ending September 30, 1987, shall be paid out of any funds available in the Senate appropriation for such year under the item 'Salaries, Officers and Employees'. -SOURCE- (Pub. L. 101-163, title I, Sec. 9, Nov. 21, 1989, 103 Stat. 1046.) -COD- CODIFICATION Section is based on Senate Resolution No. 89, One Hundredth Congress, Jan. 28, 1987, which was enacted into permanent law by Pub. L. 101-163. -MISC3- EFFECTIVE DATE Section 9 of Pub. L. 101-163 provided that this section is effective on Jan. 28, 1987, the date on which Senate Resolution No. 89, One Hundredth Congress, was agreed to. ------DocID 7167 Document 5 of 2641------ -CITE- 2 USC Sec. 68-7 -EXPCITE- TITLE 2 CHAPTER 4 -HEAD- Sec. 68-7. Senate Office of Public Records Revolving Fund -STATUTE- (a) Establishment There is established in the Treasury of the United States a revolving fund within the contingent fund of the Senate to be known as the 'Senate Office of Public Records Revolving Fund' (hereafter in this section referred to as the 'revolving fund'). (b) Source of moneys for deposit in Fund; availability of moneys in Fund All moneys received on and after October 1, 1989, by the Senate Office of Public Records from fees and other charges for services shall be deposited to the credit of the revolving fund. Moneys in the revolving fund shall be available without fiscal year limitation for disbursement by the Secretary of the Senate for use in connection with the operation of the Senate Office of Public Records, including supplies, equipment, and other expenses. (c) Vouchers Disbursements from the revolving fund shall be made upon vouchers approved by the Secretary of the Senate. (d) Regulations The Secretary of the Senate is authorized to prescribe such regulations as may be necessary to carry out the provisions of this section. (e) Transfer of moneys into Fund To provide capital for the revolving fund, the Secretary of the Senate is authorized to transfer, from moneys appropriated for fiscal year 1990 to the account 'Miscellaneous Items' in the contingent fund of the Senate, to the revolving fund such sum as he may determine necessary, not to exceed $30,000. -SOURCE- (Pub. L. 101-163, title I, Sec. 13, Nov. 21, 1989, 103 Stat. 1047.) -COD- CODIFICATION Section is from the Congressional Operations Appropriations Act, 1990, which is title I of the Legislative Branch Appropriations Act, 1990. ------DocID 7463 Document 6 of 2641------ -CITE- 2 USC CHAPTER 7 -EXPCITE- TITLE 2 CHAPTER 7 -HEAD- CHAPTER 7 - CONTESTED ELECTIONS ------DocID 7771 Document 7 of 2641------ -CITE- 3 USC Sec. 7 -EXPCITE- TITLE 3 CHAPTER 1 -HEAD- Sec. 7. Meeting and vote of electors -STATUTE- The electors of President and Vice President of each State shall meet and give their votes on the first Monday after the second Wednesday in December next following their appointment at such place in each State as the legislature of such State shall direct. -SOURCE- (June 25, 1948, ch. 644, 62 Stat. 673.) -CROSS- CROSS REFERENCES Day of voting by electors, see Const. Art. II, Sec. 1, cl. 3. Voting by electors, see Const. Amend. XII. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 6 of this title. ------DocID 7926 Document 8 of 2641------ -CITE- 5 USC CHAPTER 7 -EXPCITE- TITLE 5 PART I CHAPTER 7 -HEAD- CHAPTER 7 - JUDICIAL REVIEW -MISC1- Sec. 701. Application; definitions. 702. Right of review. 703. Form and venue of proceeding. 704. Actions reviewable. 705. Relief pending review. 706. Scope of review. SHORT TITLE The provisions of sections 551 to 559 of this title and this chapter were originally enacted by act June 11, 1946, ch. 423, 60 Stat. 237, popularly known as the 'Administrative Procedure Act'. That Act was repealed as part of the general revision of this title by Pub. L. 89-554 and its provisions incorporated into sections 551 to 559 of this title and this chapter. -SECREF- CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in sections 559, 8902 of this title; title 2 sections 501, 502; title 7 section 1642; title 8 section 1421; title 10 sections 2397, 2397a, 2397c, 2409a; title 12 sections 1441a, 1467a, 1749bbb-17, 1786, 1787, 1815, 1818, 1821, 1959, 2266, 2268; title 15 sections 57a, 78dd-1, 78dd-2, 266, 648, 687e, 1193, 1392, 1394, 1715, 1913, 2004, 2008, 2060, 2603, 2618, 2622, 3416, 4243; title 16 sections 460aa-3, 470q, 823b, 1374, 1536, 1855, 2404, 3636; title 17 sections 701, 803, 810, 908; title 18 sections 843, 3625; title 19 section 1337; title 20 sections 107d-2, 240, 641, 1683; title 21 sections 360e, 360g; title 22 sections 277d-24, 1623, 1645n, 3794, 4140; title 25 sections 954, 2713, 2714; title 26 section 9041; title 29 sections 214, 721, 792, 1137; title 30 sections 956, 1411, 1415, 1416; title 33 sections 524, 597; title 35 section 135; title 38 section 223; title 39 sections 404, 410, 3001, 3008, 3012, 3603; title 41 section 43a; title 42 sections 263f, 300j-9, 1395h, 1395oo, 2000d-2, 2022, 2231, 2236, 2239, 2282a, 2286f, 4104, 5405, 5851, 6105, 6303, 6306, 6973, 6976, 7276, 7525, 7622, 7920, 8412, 8433, 8441, 10132, 10155, 10244; title 44 section 2203; title 45 sections 431, 1116, 1212; title 47 sections 303, 305, 310, 409; title 49 App. sections 1355, 1481, 1655, 1675, 1903, 2005, 2302, 2305, 2505, 2507, 2611; title 50 sections 795, 835; title 50 App. sections 463, 2159, 2412. ------DocID 8875 Document 9 of 2641------ -CITE- 5 USC APPENDIX - FEDERAL ADVISORY COMMITTEE ACT Sec. 7 -EXPCITE- TITLE 5 APPENDIX FEDERAL ADVISORY COMMITTEE ACT -HEAD- Sec. 7. Responsibilities of the Administrator of General Services; Committee Management Secretariat, establishment; review; recommendations to President and Congress; agency cooperation; performance guidelines; uniform pay guidelines; travel expenses; expense recommendations -STATUTE- (a) The Administrator shall establish and maintain within the General Services Administration a Committee Management Secretariat, which shall be responsible for all matters relating to advisory committees. (b) The Administrator shall, immediately after October 6, 1972, institute a comprehensive review of the activities and responsibilities of each advisory committee to determine - (1) whether such committee is carrying out its purpose; (2) whether, consistent with the provisions of applicable statutes, the responsibilities assigned to it should be revised; (3) whether it should be merged with other advisory committees; or (4) whether it should be abolished. The Administrator may from time to time request such information as he deems necessary to carry out his functions under this subsection. Upon the completion of the Administrator's review he shall make recommendations to the President and to either the agency head or the Congress with respect to action he believes should be taken. Thereafter, the Administrator shall carry out a similar review annually. Agency heads shall cooperate with the Administrator in making the reviews required by this subsection. (c) The Administrator shall prescribe administrative guidelines and management controls applicable to advisory committees, and, to the maximum extent feasible, provide advice, assistance, and guidance to advisory committees to improve their performance. In carrying out his functions under this subsection, the Administrator shall consider the recommendations of each agency head with respect to means of improving the performance of advisory committees whose duties are related to such agency. (d)(1) The Administrator, after study and consultation with the Director of the Office of Personnel Management, shall establish guidelines with respect to uniform fair rates of pay for comparable services of members, staffs, and consultants of advisory committees in a manner which gives appropriate recognition to the responsibilities and qualifications required and other relevant factors. Such regulations shall provide that - (A) no member of any advisory committee or of the staff of any advisory committee shall receive compensation at a rate in excess of the rate specified for GS-18 of the General Schedule under section 5332 of title 5, United States Code; (B) such members, while engaged in the performance of their duties away from their homes or regular places of business, may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons employed intermittently in the Government service; and (C) such members - (i) who are blind or deaf or who otherwise qualify as handicapped individuals (within the meaning of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 794)), and (ii) who do not otherwise qualify for assistance under section 3102 of title 5, United States Code, by reason of being an employee of an agency (within the meaning of section 3102(a)(1) of such title 5), may be provided services pursuant to section 3102 of such title 5 while in performance of their advisory committee duties. (2) Nothing in this subsection shall prevent - (A) an individual who (without regard to his service with an advisory committee) is a full-time employee of the United States, or (B) an individual who immediately before his service with an advisory committee was such an employee, from receiving compensation at the rate at which he otherwise would be compensated (or was compensated) as a full-time employee of the United States. (e) The Administrator shall include in budget recommendations a summary of the amounts he deems necessary for the expenses of advisory committees, including the expenses for publication of reports where appropriate. -SOURCE- (Pub. L. 92-463, Sec. 7, Oct. 6, 1972, 86 Stat. 772; 1977 Reorg. Plan No. 1, Sec. 5F, eff. Nov. 20, 1977, 42 F.R. 56101, 91 Stat. 1634; 1978 Reorg. Plan No. 2, Sec. 102, eff. Jan. 1, 1979, 43 F.R. 36067, 92 Stat. 3783; Pub. L. 96-523, Sec. 2, Dec. 12, 1980, 94 Stat. 3040.) -REFTEXT- REFERENCES IN TEXT Section 501 of the Rehabilitation Act of 1973, referred to in subsec. (d)(1)(C)(i), is classified to section 791 of Title 29, Labor, rather than to section 794 of Title 29 as shown in text. -MISC2- AMENDMENTS 1980 - Subsec. (d)(1)(C). Pub. L. 96-523 added subpar. (C). EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96-523 effective sixty days after Dec. 12, 1980, see section 3 of Pub. L. 96-523, set out as a note under section 3102 of this title. -TRANS- TRANSFER OF FUNCTIONS 'Director of the Office of Personnel Management' substituted for 'Civil Service Commission' in subsec. (d) pursuant to Reorg. Plan No. 2 of 1978, Sec. 102, 43 F.R. 36037, 92 Stat. 3783, set out under section 1101 of this title, which transferred functions vested by statute in United States Civil Service Commission to Director of Office of Personnel Management (except as otherwise specified), effective Jan. 1, 1979, as provided by section 1-102 of Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055, set out under section 1101 of this title. 'Administrator', 'Administrator's', 'Administrator of General Services', and 'General Services Administration' substituted for 'Director', 'Director's', 'Director, Office of Management and Budget', and 'Office of Management and Budget' in text pursuant to Reorg. Plan No. 1 of 1977, Sec. 5F, 42 F.R. 56101, 91 Stat. 1634, set out in this Appendix, which transferred functions of Office of Management and Budget and Director thereof relating to Committee Management Secretariat to Administrator of General Services, effective Nov. 20, 1977, as provided by section 1 of Ex. Ord. No. 12024, Dec. 1, 1977, 42 F.R. 61445, set out under section 2 of this Act in this Appendix. -MISC5- REFERENCES IN OTHER LAWS TO GS-16, 17, OR 18 PAY RATES References in laws to the rates of pay for GS-16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of this title, see section 529 (title I, Sec. 101(c)(1)) of Pub. L. 101-509, set out in a note under section 5376 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 588 of this title; title 7 section 5005. ------DocID 8891 Document 10 of 2641------ -CITE- 5 USC APPENDIX - INSPECTOR GENERAL ACT OF 1978 Sec. 7 -EXPCITE- TITLE 5 APPENDIX INSPECTOR GENERAL ACT OF 1978 -HEAD- Sec. 7. Complaints by employees; disclosure of identity; reprisals -STATUTE- (a) The Inspector General may receive and investigate complaints or information from an employee of the establishment concerning the possible existence of an activity constituting a violation of law, rules, or regulations, or mismanagement, gross waste of funds, abuse of authority or a substantial and specific danger to the public health and safety. (b) The Inspector General shall not, after receipt of a complaint or information from an employee, disclose the identity of the employee without the consent of the employee, unless the Inspector General determines such disclosure is unavoidable during the course of the investigation. (c) Any employee who has authority to take, direct others to take, recommend, or approve any personnel action, shall not, with respect to such authority, take or threaten to take any action against any employee as a reprisal for making a complaint or disclosing information to an Inspector General, unless the complaint was made or the information disclosed with the knowledge that it was false or with willful disregard for its truth or falsity. -SOURCE- (Pub. L. 95-452, Sec. 7, Oct. 12, 1978, 92 Stat. 1105.) -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 44 section 3903. ------DocID 8952 Document 11 of 2641------ -CITE- 5 USC APPENDIX - REORGANIZATION PLAN NO. 7 OF 1949 -EXPCITE- TITLE 5 APPENDIX REORGANIZATION PLANS REORGANIZATION PLAN NO -HEAD- REORGANIZATION PLAN NO. 7 OF 1949 -MISC1- EFF. AUG. 20, 1949, 14 F.R. 5228, 63 STAT. 1070, AS AMENDED JAN. 12, 1983, PUB. L. 97-449, SEC. 2(B), 96 STAT. 2439 Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, June 20, 1949, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949 (see 5 U.S.C. 901 et seq.). PUBLIC ROADS ADMINISTRATION SECTION 1. TRANSFER OF PUBLIC ROADS ADMINISTRATION The Public Roads Administration, together with its functions, including the functions of the Commissioner of Public Roads, is hereby transferred to the Department of Transportation and shall be administered by the Commissioner of Public Roads subject to the direction and control of the Secretary of Transportation. SEC. 2. TRANSFER OF CERTAIN FUNCTIONS OF FEDERAL WORKS ADMINISTRATOR All functions of the Federal Works Administrator with respect to the agency and functions transferred by the provisions of section 1 hereof are hereby transferred to the Secretary of Transportation and shall be performed by the Secretary or, subject to his direction and control, by such officers, employees, and agencies of the Department of Transportation as the Secretary shall designate. SEC. 3. RECORDS, PROPERTY, PERSONNEL, AND FUNDS There are hereby transferred to the Department of Transportation, to be used, employed, and expended in connection with the functions transferred by the provisions of this reorganization plan, the records and property now being used or held in connection with such functions, the personnel employed in connection with such functions, together with the Commissioner of Public Roads, and the unexpended balances of appropriations, allocations, and other funds available or to be made available for use in connection with such functions. Such further measures and dispositions as the Director of the Bureau of the Budget shall determine to be necessary in order to effectuate the transfers provided for in this section shall be carried out in such manner as the Director shall direct and by such agencies as he shall designate. SEC. 4. EFFECT OF REORGANIZATION PLAN The provisions of this reorganization plan shall become effective notwithstanding the status of the Public Roads Administration within the Federal Works Agency or within any other agency immediately prior to the effective date of this reorganization plan (see 40 U.S.C. 753). MESSAGE OF THE PRESIDENT To the Congress of the United States: I transmit herewith Reorganization Plan No. 7 of 1949, prepared in accordance with the provisions of the Reorganization Act of 1949. This plan transfers the Public Roads Administration to the Department of Commerce. After investigation I have found and hereby declare that each reorganization included in this plan is necessary to accomplish one or more of the purposes set forth in section 2(a) of the Reorganization Act of 1949. This plan directly carries out the recommendation of the Commission on Organization of the Executive Branch of the Government with respect to the Public Roads Administration. That the Department of Commerce is the appropriate location for the Public Roads Administration in the executive branch is evident from the nature of its functions and the basic purpose of the Department. The Public Roads Administration is primarily engaged in planning and financing the development of the highways which provide the essential facilities for motor transportation throughout the country. Thus, it comes directly within the purpose of the Department of Commerce, as defined by its organic act, which provides: It shall be the province and duty of said Department to foster, promote, and develop the foreign and domestic commerce * * * and the transportation facilities of the United States. In its reorganization proposals the Commission on Organization of the Executive Branch of the Government adhered to the statutory definition of the functions and role of the Department of Commerce. President Franklin D. Roosevelt and the Congress likewise were guided by this concept of the Department in transferring to it the Civil Aeronautics Administration and the Inland Waterways Corporation under the Reorganization Act of 1939. A careful review of the structure of the executive branch reveals no other department or agency in which the Public Roads Administration can so appropriately be located. The desirability of this transfer of the Public Roads Administration is further emphasized by its relation to the Federal Property and Administrative Services bill now pending in the Senate. This bill creates a new General Services Administration and concentrates in it the principal central administrative service programs of the executive branch. The bill also revises the basic legislation on property management. It has been passed by the House of Representatives by an overwhelming vote and unanimously reported by the Senate Committee on Expenditures in the Executive Departments and awaits final action on the floor of the Senate. This measure substantially conforms to recommendations which I submitted to the Congress more than a year ago and to proposals more recently presented by the Commission on Organization of the Executive Branch of the Government, with which I concur. The enactment of this bill will constitute an important step in increasing the efficiency of Federal administration. Since the bill makes permanent provision for the disposal of surplus property, now handled by the War Assets Administration which will expire by law on June 30, early enactment is vital. In establishing the General Services Administration the Federal Property and Administrative Services bill transfers to the Administration all of the functions and units of the Federal Works Agency. Part of these functions relating to the housing of the governmental establishment clearly fall within the purpose of such an Administration. Certain other functions of the Federal Works Agency, however, bear very little real relation to the objectives of the General Services Administration. The congressional committees which have dealt with the bill have frankly indicated that further consideration must be given to the proper location of some of the programs of the Federal Works Agency. The sooner these unrelated programs can be removed from the new agency, the sooner it can concentrate its efforts upon improving administrative services throughout the executive branch and make the contribution to governmental efficiency for which it has been designed. Principal among the programs of the Federal Works Agency which are unrelated to the General Services Administration are those of the Public Roads Administration. This agency is primarily engaged in the administration of Federal grants to States for highway purposes rather than in the performance of services for other Federal agencies. Its functions, therefore, do not fall within the field of activities of the General Services Administration. Their inclusion cannot but complicate and impede the development of the General Services Administration in the performance of its intended purpose. This reorganization plan will eliminate such a difficulty. Since the Public Roads Administration will be transferred bodily from one major agency to another, it is not to be expected that this reorganization will directly result in any appreciable reduction in its expenditures at this time. However, the plan will make for better organization and direction of Federal programs relating to transportation. Assuming the early enactment of the Federal Property and Administrative Services bill, the plan will also materially simplify the development of the proposed General Services Administration and thereby facilitate improvements in the efficiency of administrative services throughout the Government. Harry S. Truman. The White House, June 20, 1949. ------DocID 8960 Document 12 of 2641------ -CITE- 5 USC APPENDIX - REORGANIZATION PLAN NO. 7 OF 1950 -EXPCITE- TITLE 5 APPENDIX REORGANIZATION PLANS REORGANIZATION PLAN NO -HEAD- REORGANIZATION PLAN NO. 7 OF 1950 -MISC1- Reorganization Plan No. 7 of 1950, which proposed reorganizations in the Interstate Commerce Commission, was submitted to Congress on Mar. 13, 1950, and was disapproved by the Senate on May 17, 1950. ------DocID 8989 Document 13 of 2641------ -CITE- 5 USC APPENDIX - REORGANIZATION PLAN NO. 7 OF 1953 -EXPCITE- TITLE 5 APPENDIX REORGANIZATION PLANS REORGANIZATION PLAN NO -HEAD- REORGANIZATION PLAN NO. 7 OF 1953 -MISC1- Reorg. Plan No. 7 of 1953, 18 F.R. 4541, 67 Stat. 639, which established the Foreign Operations Administration and transferred certain functions to the Director, including functions of the Director for Mutual Security, was repealed by Pub. L. 87-195, pt. III, Sec. 642(a)(1), Sept. 4, 1961, 75 Stat. 460. ------DocID 9003 Document 14 of 2641------ -CITE- 5 USC APPENDIX - REORGANIZATION PLAN NO. 7 OF 1961 -EXPCITE- TITLE 5 APPENDIX REORGANIZATION PLANS REORGANIZATION PLAN NO -HEAD- REORGANIZATION PLAN NO. 7 OF 1961 -MISC1- EFF. AUG. 12, 1961, 26 F.R. 7315, 75 STAT. 840, AS AMENDED PUB. L. 88-426, TITLE III, SEC. 305(19), AUG. 14, 1964, 78 STAT. 425; PUB. L. 91-469, SEC. 38, OCT. 21, 1970, 84 STAT. 1036 Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, June 12, 1961, pursuant to the provisions of the Reorganization Act of 1949, 63 Stat. 203, as amended (see 5 U.S.C. 901 et seq.). MARITIME FUNCTIONS PART I. FEDERAL MARITIME COMMISSION SECTION 101. CREATION OF FEDERAL MARITIME COMMISSION (a) There is hereby established a Federal Maritime Commission, hereinafter referred to as the Commission. (b) The Commission shall not be a part of any executive department or under the authority of the head of any executive department. SEC. 102. COMPOSITION OF THE COMMISSION (a) The Commission shall be composed of five Commissioners, who shall be appointed by the President by and with the advice and consent of the Senate. Each Commissioner shall be removable by the President for inefficiency, neglect of duty, or malfeasance in office. (b) The President shall from time to time designate one of the Commissioners to be the Chairman of the Commission. (c) Of the first five Commissioners appointed hereunder, one shall be appointed for a term expiring on June 30, 1962, one for a term expiring on June 30, 1963, one for a term expiring on June 30, 1964, and two for terms expiring on June 30, 1965. Their successors shall be appointed for terms of four years, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the Commissioner whom he succeeds. Not more than three of the Commissioners shall be appointed from the same political party. A vacancy in the office of any such Commissioner shall be filled in the same manner as the original appointment. (d) A vacancy in the Commission, so long as there shall be three Commissioners in office, shall not impair the power of the Commission to execute its functions. Any three of the Commissioners in office shall constitute a quorum for the transaction of the business of the Commission and the affirmative votes of any three Commissioners shall be sufficient for the disposition of any matter which may come before the Commission. (As amended Pub. L. 88-426, title III, Sec. 305(19)(A), Aug. 14, 1964, 78 Stat. 425.) (Commissioners of the Federal Maritime Commission appointed to five-year terms, appointed to vacancies only for unexpired term, and to serve until appointment and qualification of successor, see Pub. L. 89-56, set out as a Federal Maritime Commission; Term of Office; Vacancies; Continuity of Service note under section 1111 of Title 46, Appendix, Shipping.) SEC. 103. TRANSFER OF FUNCTIONS TO COMMISSION The following functions, which are now vested in the Federal Maritime Board under the provisions of Reorganization Plan No. 21 of 1950 (64 Stat. 1273), are hereby transferred from that Board to the Commission: (a) All functions under the provisions of sections 14-20, inclusive, and sections 22-33, inclusive, of the Shipping Act, 1916, as amended (46 U.S.C. 812-819 and 821-832), including such functions with respect to the regulation and control of rates, services, practices, and agreements of common carriers by water and of other persons. (b) All functions with respect of the regulation and control of rates, fares, charges, classifications, tariffs, regulations, and practices of common carriers by water under the provisions of the Intercoastal Shipping Act, 1933, as amended (46 U.S.C. 843-848). (c) The functions with respect to the making of rules and regulations affecting shipping in the foreign trade to adjust or meet conditions unfavorable to such shipping, and with respect to the approval, suspension, modification, or annulment of rules or regulations of other Federal agencies affecting shipping in the foreign trade, under the provisions of section 19 of the Merchant Marine Act, 1920, as amended (46 U.S.C. 876), exclusive of subsection (1)(a) thereof. (d) The functions with respect to investigating discriminatory rates, charges, classifications, and practices in the foreign trade, and with respect to recommending legislation to correct such discrimination, under the provisions of section 212(e) of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1122(f)). (e) To the extent that they relate to functions transferred to the Commission by the foregoing provisions of this section: (1) The functions with respect to requiring the filing of reports, accounts, records, rates, charges, and memoranda, under the provisions of section 21 of the Shipping Act, 1916, as amended (46 U.S.C. 820). (2) The functions with respect to adopting rules and regulations, making reports and recommendations to Congress, subpoenaing witnesses, administering oaths, taking evidence, and requiring the production of books, papers, and documents, under the provisions of sections 204, 208, and 214 of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1114, 1118, and 1124). SEC. 104. TRANSFER OF FUNCTIONS TO CHAIRMAN There are hereby transferred to the Chairman of the Commission: (a) The functions of the Chairman of the Federal Maritime Board, including his functions derived from the provisions of Reorganization Plan No. 6 of 1949, to the extent that they relate to the functions transferred to the Commission by the provisions of section 103 of this reorganization plan. (b) The functions of the Secretary of Commerce to the extent that they are necessary for, or incidental to, the administration of the functions transferred to the Commission by the provisions of section 103 of this reorganization plan. SEC. 105. AUTHORITY TO DELEGATE (a) The Commission shall have the authority to delegate, by published order or rule, any of its functions to a division of the Commission, an individual Commissioner, a hearing examiner, or an employee or employee board, including functions with respect to hearing, determining, ordering, certifying, reporting or otherwise acting as to any work, business, or matter: Provided, however, That nothing herein contained shall be deemed to supersede the provisions of sections 7(a) of the Administrative Procedure Act (60 Stat. 241), as amended (see 5 U.S.C. 556). (b) With respect to the delegation of any of its functions, as provided in subsection (a) of this section, the Commission shall retain a discretionary right to review the action of any such division of the Commission, individual Commissioner, hearing examiner, employee or employee board, upon its own initiative or upon petition of a party to or an intervenor in such action, within such time and in such manner as the Commission shall by rule prescribe: Provided, however, That the vote of a majority of the Commission less one member thereof shall be sufficient to bring any such action before the Commission for review. (c) Should the right to exercise such discretionary review be declined, or should no such review be sought within the time stated in the rules promulgated by the Commission, then the action of any such division of the Commission, individual Commissioner, hearing examiner, employee or employee board, shall, for all purposes, including appeal or review thereof, be deemed to be the action of the Commission. (d) There are hereby transferred to the Chairman of the Commission the functions with respect to the assignment of Commission personnel, including Commissioners, to perform such functions as may have been delegated by the Commission to Commission personnel, including Commissioners, pursuant to the foregoing subsections of this section. PART II. DEPARTMENT OF COMMERCE SECTION 201. MARITIME ADMINISTRATOR There shall be at the head of the Maritime Administration (established by the provisions of Part II of Reorganization Plan No. 21 of 1950) a Maritime Administrator, hereinafter referred to as the Administrator. The Assistant Secretary of Commerce for Maritime Affairs shall, ex officio, be the Administrator. The Administrator shall perform such duties as the Secretary of Commerce shall prescribe. (As amended Pub. L. 88-426, title III, Sec. 305(19)(B), Aug. 14, 1964, 78 Stat. 425; Pub. L. 91-469, Sec. 38(a), Oct. 21, 1970, 84 Stat. 1036.) SEC. 202. FUNCTIONS OF SECRETARY OF COMMERCE (a) Except to the extent inconsistent with the provisions of sections 101(b) or 104(b) of this reorganization plan, there shall remain vested in the Secretary of Commerce all the functions conferred upon the Secretary by the provisions of Reorganization Plan No. 21 of 1950. (b) There are hereby transferred to the Secretary of Commerce: (1) All functions of the Federal Maritime Board under the provisions of sections 105(1) to 105(3), inclusive, of Reorganization Plan No. 21 of 1950. (2) Except to the extent transferred to the Commission by the provisions of section 103(e) of this reorganization plan, the functions described in the said section 103(e). (3) Any other functions of the Federal Maritime Board not otherwise transferred by the provisions of Part I of this reorganization plan. (4) Except to the extent transferred to the Chairman of the Commission by the provisions of Part I of this reorganization plan, the functions of the Chairman of the Federal Maritime Board. SEC. 203. DELEGATION OF FUNCTIONS The provisions of sections 2 and 4 of Reorganization Plan No. 5 of 1950 (64 Stat. 1263) shall be applicable to all functions transferred to the Secretary of Commerce by, or remaining vested in him under, the provisions of this reorganization plan. PART III. GENERAL PROVISIONS SECTION 301. CONFLICT OF INTEREST The provisions of the last sentence of section 201(b) of the Merchant Marine Act, 1936, as affected by the provisions of Reorganization Plan No. 21 of 1950 (46 U.S.C. 1111(b)) (prohibiting the members of the Federal Maritime Board and all officers and employees of that Board or of the Maritime Administration from being in the employ of any other person, firm, or corporation, or from having any pecuniary interest in or holding any official relationship with any carrier by water, shipbuilder, contractor, or other person, firm, association, or corporation with whom the Federal Maritime Board or the Maritime Administration may have business relations) shall hereafter be applicable to the Commissioners composing the Commission and all officers and employees of the Commission. (As amended Pub. L. 91-469, Sec. 38(b), Oct. 21, 1970, 84 Stat. 1036.) SEC. 302. INTERIM APPOINTMENTS Pending the initial appointments hereunder of the Commissioners composing the Commission and of the Maritime Administrator, but not for a period exceeding 90 days, such officers of the executive branch of the Government (including any person who is a member of the Federal Maritime Board or Deputy Maritime Administrator immediately prior to the taking effect of the provisions of this reorganization plan) as the President shall designate under the provisions of this section shall be Acting Commissioners of the Federal Maritime Commission or Acting Maritime Administrator. The President may designate one of such Acting Commissioners as Acting Chairman of the Commission. Any person who is not while serving under an interim appointment pursuant to the foregoing provisions of this section receiving compensation attached to another Federal office shall receive the compensation herein provided for the office wherein he serves in an interim capacity. SEC. 303. INCIDENTAL TRANSFERS (a) So much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with the functions transferred to the Commission or to the Chairman of the Commission by the provisions of Part I of this reorganization plan as the Director of the Bureau of the Budget shall determine shall be transferred to the Commission at such time or times as the Director shall direct. (b) Such further measures and dispositions as the Director of the Bureau of the Budget shall deem to be necessary in order to effecuate the transfers provided for in subsection (a) of this section shall be carried out in such manner as he shall direct and by such agencies as he shall designate. (c) Subject to the foregoing provisions of this section, the Secretary of Commerce may transfer within the Department of Commerce personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with functions which were transferred to the Department of Commerce (including the Federal Maritime Board and the Chairman thereof) by the provisions of Reorganization Plan No. 21 of 1950. SEC. 304. ABOLITION OF FEDERAL MARITIME BOARD The Federal Maritime Board, including the offices of the members of the Board, is hereby abolished, and the Secretary of Commerce shall provide for the termination of any outstanding affairs of the said Board not otherwise provided for in this reorganization plan. SEC. 305. STATUS OF PRIOR PLAN The following provisions of Reorganization Plan No. 21 of 1950 are hereby superseded: (1) Part I. (2) Section 202. (3) Sections 302 to 307, inclusive. (For further details relating to the Federal Maritime Commission, see 46 U.S.C. 1111 and notes set out thereunder.) MESSAGE OF THE PRESIDENT To the Congress of the United States: I transmit herewith Reorganization Plan No. 7 of 1961, prepared in accordance with the Reorganization Act of 1949, as amended, and providing for the reorganization of maritime functions. The basic objective of the plan is to strengthen and revitalize the administration of our Federal programs concerned with the promotion and development of the U.S. merchant marine by concentrating responsibility in separate agencies for the performance of regulatory and promotional functions. The plan provides, therefore, for the creation of a separate Federal Maritime Commission, composed of five Commissioners, which would be charged with the regulatory functions of the present Federal Maritime Board. There would be transferred from the Federal Maritime Board to the Secretary of Commerce the award of subsidies and related promotional functions. The Secretary of Commerce would retain the functions transferred to him by Reorganization Plan No. 21 of 1950 which reorganized the U.S. Maritime Commission into a Federal Maritime Board and a Maritime Administration in the Department of Commerce. The plan retains the present Maritime Administration, provides for an Administrator as head thereof, retains a Deputy Maritime Administrator, and effects no change in the Office of the Under Secretary of Commerce for Transportation. The Federal Maritime Board is abolished. Existing organizational arrangements have not proved to be satisfactory. The development and maintenance of a sound maritime industry require that the Federal Government carry out its dual responsibilities for regulation and promotion with equal vigor and effectiveness. Intermingling of regulatory and promotional functions has tended in this instance to dilute responsibility and has led to serious inadequacies, particularly in the administration of regulatory functions. Recent findings by committees of the Congress disclose serious violations of maritime laws and point to the urgent need for a reorganization to vest in completely separate agencies a responsibility for (1) regulatory functions and (2) promotional and operating functions. The plan would provide the most appropriate organizational framework for each of the functions concerned. Regulation would be made the exclusive responsibility of a separate commission organized along the general lines of other regulatory agencies. On the other hand, nonregulatory functions, including the determination and award of subsidies and other promotional and operating activities, would be concentrated in the head of the Department of Commerce. The Secretary of Commerce is best qualified to coordinate these activities with other transportation and related economic programs. The vesting of all subsidy functions in the Secretary of Commerce will make it possible for the Congress and the President to hold a single official responsible and accountable for the effective conduct of all aspects of this program, including the size and character of the fleet under the U.S. flag, the need for Government assistance, and requirements for appropriations to support subsidy programs. Furthermore, the placing of these functions in the Secretary of Commerce will assure essential supervision and review of subsidy awards. The taking effect of the reorganizations included in the accompanying reorganization plan will result in a modest increase in expenditures. The improved organizational alinements provided by the plan will, however, make possible a more effective and expeditious administration of the statutory objectives to foster and promote a U.S. merchant marine capable of meeting the Nation's needs in peace and war. Failure to meet these objectives would be far more costly than the anticipated increase in expenditures under the plan. After investigation, I have found and hereby declare that each reorganization included in Reorganization Plan No. 7 of 1961 is necessary to accomplish one or more of the purposes set forth in section 2(a) of the Reorganization Act of 1949, as amended. I have also found and hereby declare that it is necessary to include in the accompanying reorganization plan, by reason of reorganizations made thereby, provisions for the appointment and compensation of new officers specified in sections 102 and 201 of the plan. The rates of compensation fixed for these officers are, respectively, those which I have found to prevail in respect of comparable officers in the executive branch of the Government. I recommend that the Congress allow the reorganization plan to become effective. John F. Kennedy. The White House, June 12, 1961. ------DocID 6922 Document 15 of 2641------ -CITE- 2 USC Sec. 7 -EXPCITE- TITLE 2 CHAPTER 1 -HEAD- Sec. 7. Time of election -STATUTE- The Tuesday next after the 1st Monday in November, in every even numbered year, is established as the day for the election, in each of the States and Territories of the United States, of Representatives and Delegates to the Congress commencing on the 3d day of January next thereafter. -SOURCE- (R.S. Sec. 25; Mar. 3, 1875, ch. 130, Sec. 6, 18 Stat. 400; June 5, 1934, ch. 390, Sec. 2, 48 Stat. 879.) -COD- CODIFICATION R.S. Sec. 25 derived from act Feb. 2, 1872, ch. 11, Sec. 3, 17 Stat. 28. The second sentence of this section, which was based on section 6 of the act Mar. 3, 1875 and made this section inapplicable to any State that had not yet changed its day of election and whose constitution required an amendment to change the day of election of its State officers, was omitted. -MISC3- AMENDMENTS 1934 - Act June 5, 1934, substituted '3d day of January' for 'fourth day of March'. CONSTITUTIONAL PROVISIONS The first section of Amendment XX to the Constitution provides: 'The terms of Senators and Representatives (shall end) at noon on the 3d day of January, of the years in which such terms would have ended if this article had not been ratified; and the terms of their successors shall then begin.' -CROSS- CROSS REFERENCES Time for election of Representatives, see Const. Art. I, Sec. 4, cl. 1. ------DocID 9048 Document 16 of 2641------ -CITE- 7 USC CHAPTER 1 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- CHAPTER 1 - COMMODITY EXCHANGES -MISC1- Sec. 1. Short title. 2. Definitions. 2a. Designation of boards of trade as contract markets; approval by and jurisdiction of Commodity Futures Trading Commission and Securities and Exchange Commission. 3. Transaction in interstate commerce. 4. Liability of principal for act of agent. 4a. Commodity Futures Trading Commission (a) Establishment; composition; term of Commissioners. (b) Vacancies. (c) General Counsel. (d) Executive Director. (e) Powers and functions of Chairman. (f) Conflict of interest. (g) Liaison with Department of Agriculture; communications with Department of Treasury, Federal Reserve Board, and Securities and Exchange Commission; application by a board of trade for designation as a contract market for future delivery of securities. (h) Transmittal of budget requests and legislative recommendations to Congressional committees. (i) Seal. (j) Rules and regulations. 5. Legislative findings. 6. Restriction of futures trading to contract markets; regulation of foreign transactions by United States persons. 6a. Excessive speculation as burden on interstate commerce; trading or position limits; control; hedging transactions; application of section; rulemaking power of contract markets and penalties for violation. 6b. Contracts designed to defraud or mislead; bucketing orders; buying and selling orders for commodity. 6c. Prohibited transactions. (a) Meretricious transactions. (b) Regulated option trading. (c) Regulations for elimination of pilot status of commodity option transactions; terms and conditions of options trading. (d) Dealer options exempt from subsections (b) and (c) prohibitions; requirements. (e) Rules and regulations. (f) Nonapplicability to foreign currency options. 6d. Dealing by unregistered futures commission merchants or introducing brokers prohibited; duties of merchants regarding monies and securities of customers. 6e. Floor brokers; dealings by unregistered broker prohibited. 6f. Registration of futures commission merchants, introducing brokers, and floor brokers; financial requirements for futures commission merchants and introducing brokers. 6g. Reporting and recordkeeping. 6h. False self-representation as contract market member prohibited. 6i. Reports of deals equal to or in excess of trading limits; books and records; cash and controlled transactions. 6j. Trades and executions by floor brokers; trades by futures commission merchants. 6k. Registration of associates of futures commission merchants, commodity pool operators, and commodity trading advisors; required disclosure of disqualifications. 6l. Commodity trading advisors and commodity pool operators; Congressional finding. 6m. Use of mails or other means or instrumentalities of interstate commerce by commodity trading advisors and commodity pool operators; relation to other law. 6n. Registration of commodity trading advisors and commodity pool operators; application; expiration and renewal; record keeping and reports; disclosure; statements of account. 6o. Fraud and misrepresentation by commodity trading advisors, commodity pool operators, and associated persons. 6p. Standards and examinations. 7. Designation of board of trade as 'contract market'; conditions and requirements. 7a. Duties of contract markets. (1) Bylaws, rules, etc.; furnishing copies to Commission. (2) Access for inspection of books and records. (3) Books and records of warehouses; keeping and inspection. (4) Periods of delivery; provisions for. (5) Notice of date of intended delivery. (6) United States standards; conformity of grades to. (7) Warehouse receipts as satisfaction of futures contract. (8) Enforcement and revocation of contract market rules. (9) Enforcement of bylaws, etc., providing minimum financial standards and related reporting requirements. (10) Delivery points. (11) Settlement of customers' claims and grievances. (12) Commission approval of bylaws, rules, regulations, and resolutions. 7b. Suspension or revocation of designation as 'contract market.' 8. Application for designation as 'contract market'; time; suspension or revocation of designation; hearing; review by court of appeals. 9. Exclusion of persons from privilege of 'contract markets'; procedure for exclusion; review by court of appeals. 9a. Assessment of money penalties. 10. Repealed. 10a. Cooperative associations and corporations, exclusion from board of trade; rules of board inapplicable to payment of compensation by association. 11. Vacation on request of designation as 'contract market'; redesignation. 12. Public disclosure. (a) Investigations respecting operations of boards of trade and others subject to this chapter; publication of results; restrictions. (b) Business matters; congressional, administrative, judicial, and bankruptcy proceedings. (c) Reports respecting conduct of boards of trade or transactions of violators; contents. (d) Investigations respecting marketing conditions of commodities and commodity products and byproducts; reports. (e) Names and addresses of traders of boards of trade previously disclosed; disclosure to Congress and agencies or departments of States or foreign governments. (f) Compliance with subpena after notice to informant; congressional subpenas and requests for information excepted. (g) Requests for information by State agencies or subdivisions; volunteering of information by Commission. (h) Annual report to Congress. (i) Review and audits by Comptroller General. 12-1 to 12-3. Omitted. 12a. Registration of commodity dealers and associated persons; regulation of contract markets. 12b. Trading ban violations; prohibition. 12c. Disciplinary actions; notice; review of action by Commission. 12d. Commission action for noncompliance with export sales reporting requirements. 13. Violations generally; punishment; costs of prosecution. (a) Penalty for embezzlement and larcenous actions; limit for individuals; value; suspension. (b) Penalty for price manipulation, cornering, and fraudulent information; suspension. (c) Misdemeanors; suspension. (d) Transactions by Commissioners and Commission employees prohibited. (e) Use of information by Commissioners and Commission employees prohibited. 13-1. Violations, prohibition against dealings in onion futures; punishment. 13a. Nonenforcement of rules of government or other violations; cease and desist orders; fines and penalties; imprisonment; misdemeanor; separate offenses. 13a-1. Action to enjoin or restrain violations; compliance; writs and orders; jurisdiction and venue; process. 13a-2. Jurisdiction of States. 13b. Manipulations or other violations; cease and desist orders against persons other than contract markets; punishment; misdemeanor or felony; separate offenses. 13c. Responsibility as principal; minor violations. 14. Repealed. 15. Enforcement powers of Commission. 15a. Repealed. 15b. Cotton futures contracts. (a) Short title. (b) Repeal of tax on cotton futures. (c) Definitions. (d) Bona fide spot markets and commercial differences. (e) Form and validity of cotton futures contracts. (f) Basis grade contracts. (g) Tendered grade contracts. (h) Specific grade contracts. (i) Liability of principal for acts of agent. (j) Regulations. (k) Violations. (l) Applicability to contracts prior to effective date. (m) Authorization. 16. Commission operations. (a) Cooperation with other agencies. (b) Employment of investigators, experts, Administrative Law Judges, consultants, clerks, and other personnel; contracts. (c) Expenses. (d) Authorization of appropriations. (e) Relation to other laws, departments, or agencies. 16a. Service fees and National Futures Association study. (a) Development and implementation of plan for user fees; report to and approval by Congressional committees. (b) National Futures Association regulatory experience; report; contents. (c) Schedule of fees for services, activities and functions; notice and hearing; actual cost standard. 17. Separability. 17a. Separability of 1936 amendment. 17b. Separability of 1968 amendment. 18. Complaints against registered persons. (a) Petition for actual damages. (b) Rules and regulations; control over right of appeal. (c) Bond requirement when complainant is nonresident; waiver. (d) Enforcement of reparation award. (e) Review. (f) Automatic bar from trading and suspension for noncompliance; effect of appeal. (g) Effective date. 19. Antitrust laws; anticompetitive means. 20. Market reports. (a) Information. (b) Avoidance of duplication. (c) Furnishing of information; confidentiality. (d) Disclosure of business transactions, market positions, trade secrets, or names of customers. 21. Registered futures associations. (a) Registration statement. (b) Standards for registration; Commission findings. (c) Suspension of registration. (d) Fees and charges. (e) Registered persons not members of registered associations. (f) Denial of registration. (g) Withdrawal from registration; notice of withdrawal. (h) Commission review of disciplinary actions taken by registered futures associations. (i) Notice; hearing; findings; cancellation, reduction, or remission of penalties; review by court of appeals. (j) Changes or additions to association rules. (k) Abrogation of association rules; requests to associations by Commission to alter or supplement rules. (l) Suspension and revocation of registration; expulsion of members; removal of association officers or directors. (m) Rules requiring membership in associations. (n) Reports to Congress. (o) Delegation to futures associations of registrative functions; discretionary review by Commission; judicial appeal. (p) Establishment of rules for futures associations; approval by Commission. (q) Program for implementation of rules. 22. Research and information programs; reports to Congress. 23. Standardized contracts for certain commodities. (a) Margin accounts or contracts and leverage accounts or contracts prohibited except as authorized. (b) Permission to enter into contracts for delivery of silver or gold bullion, bulk silver or gold coins, or platinum; rules and regulations. (c) Survey of persons interested in engaging in transactions of silver and gold, etc.; assistance of futures association; regulations. (d) Savings provision. 24. Regulations respecting commodity broker debtors; definitions. 25. Private rights of action. (a) Actual damages; actionable transactions; exclusive remedy. (b) Liabilities of organizations and individuals; bad faith requirement; exclusive remedy. (c) Jurisdiction. (d) Dates of application to actions. 26. Special studies. -SECREF- CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in sections 15b, 16a, 499n of this title; title 11 section 761; title 15 sections 78c, 78o, 80a-9, 80b-3, 431; title 26 section 277. ------DocID 9049 Document 17 of 2641------ -CITE- 7 USC Sec. 1 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 1. Short title -STATUTE- This chapter may be cited as the 'Commodity Exchange Act.' -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 1, 42 Stat. 998; June 15, 1936, ch. 545, Sec. 1, 49 Stat. 1491.) -MISC1- PRIOR PROVISIONS This chapter superseded act Aug. 24, 1921, ch. 86, 42 Stat. 187, known as 'The Future Trading Act,' which act was declared unconstitutional, at least in part, in Hill v. Wallace, Ill. 1922, 42 S.Ct. 453, 259 U.S. 44, 66 L.Ed. 822. Section 3 of that act was found unconstitutional as imposing a penalty in Trusler v. Crooks, Mo. 1926, 46 S.Ct. 165, 269 U.S. 475, 70 L.Ed. 365. AMENDMENTS 1936 - Act June 15, 1936, substituted 'Commodity Exchange Act' for 'The Grain Futures Act'. EFFECTIVE DATE OF 1936 AMENDMENT Section 13 of act June 15, 1936, provided that: 'All provisions of this Act (see Tables for classification) authorizing the registration of futures commission merchants and floor brokers, the fixing of fees and charges therefor, the promulgation of rules, regulations and orders, and the holding of hearings precedent to the promulgation of rules, regulations, and orders shall be effective immediately. All other provisions of this Act shall take effect ninety days after the enactment of this Act (June 15, 1936).' SHORT TITLE OF 1986 AMENDMENT Pub. L. 99-641, Sec. 1, Nov. 10, 1986, 100 Stat. 3556, provided that: 'This Act (enacting section 2271a of this title, amending sections 2a, 6b, 6c, 7a, 13, 13a-1, 15, 16, 21, 23, 74, 87b, 1444, 1445b-3, and 1445c-2 of this title, sections 590h and 3831 of Title 16, Conservation, sections 606, 609, 621, 671, and 676 of Title 21, Food and Drugs, repealing section 14 of this title, and enacting provisions set out as notes under sections 20, 71, 76, 87b, and 2271a of this title and sections 601, 606, 609, 621, 671, and 676 of Title 21) may be cited as the 'Futures Trading Act of 1986'.' SHORT TITLE OF 1983 AMENDMENT Pub. L. 97-444, Sec. 1, Jan. 11, 1983, 96 Stat. 2294, provided: 'That this Act (enacting sections 2a, 12d, 25, and 26 of this title, amending sections 2, 4, 4a, 5, 6, 6a, 6c, 6d, 6f, 6g, 6h, 6i, 6k, 6m, 6n, 6o, 6p, 7a, 8, 9, 12, 12a, 13, 13a-1, 13a-2, 13c, 16, 16a, 18, 20, 21, 23, and 612c-3 of this title, and enacting provisions set out as a note under section 2 of this title) may be cited as the 'Futures Trading Act of 1982'.' SHORT TITLE OF 1978 AMENDMENT Pub. L. 95-405, Sec. 1, Sept. 30, 1978, 92 Stat. 865, provided: 'That this Act (enacting sections 13a-2, 16a, and 23 of this title, amending sections 2, 4a, 6c, 6d, 6f, 6g, 6k, 6m, 6n, 6o, 7a, 8, 12, 12a, 12c, 13, 13a, 15, 16, 18, and 21 of this title and section 6001 of Title 18, Crimes and Criminal Procedure, repealing section 15a of this title, omitting sections 12-1 to 12-3 of this title, and enacting provisions set out as notes under sections 2 and 20 of this title) may be cited as the 'Futures Trading Act of 1978'.' SHORT TITLE OF 1974 AMENDMENT Pub. L. 93-463, Sec. 1, Oct. 23, 1974, 88 Stat. 1389, provided: 'That this Act (enacting sections 4a, 6j, 6k, 6l, 6m, 6n, 6o, 6p, 9a, 12-2, 13-3, 12c, 13a-1, 15a, 18, 19, 20, 21, and 22 of this title, amending sections 2, 4, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6i, 7, 7a, 7b, 8, 9, 11, 12, 12-1, 12a, 12b, 13, 13a, 13b, 13c, 15, and 16 of this title and sections 5314, 5315, 5316, and 5108 of Title 5, Government Organization and Employees, and enacting provisions set out as notes under sections 2, 4a, and 6a of this title) may be cited as the 'Commodity Futures Trading Commission Act of 1974'.' -CROSS- CROSS REFERENCES Power of Congress to regulate interstate commerce, see Const. Art. 1, Sec. 8, cl. 3. ------DocID 9050 Document 18 of 2641------ -CITE- 7 USC Sec. 2 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 2. Definitions -STATUTE- For the purposes of this chapter 'contract of sale' shall be held to include sales, agreements of sale, and agreements to sell. The word 'person' shall be construed to import the plural or singular, and shall include individuals, associations, partnerships, corporations, and trusts. The word 'commodity' shall mean wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, eggs, Solanum tuberosum (Irish potatoes), wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, soybean meal, livestock, livestock products, and frozen concentrated orange juice, and all other goods and articles, except onions as provided in section 13-1 of this title, and all services, rights, and interests in which contracts for future delivery are presently or in the future dealt in: Provided, That the Commission shall have exclusive jurisdiction, except to the extent otherwise provided in section 2a of this title, with respect to accounts, agreements (including any transaction which is of the character of, or is commonly known to the trade as, an 'option', 'privilege', 'indemnity', 'bid', 'offer', 'put', 'call', 'advance guaranty', or 'decline guaranty'), and transactions involving contracts of sale of a commodity for future delivery, traded or executed on a contract market designated pursuant to section 7 of this title or any other board of trade, exchange, or market, and transactions subject to regulation by the Commission pursuant to section 23 of this title: And provided further, That, except as hereinabove provided, nothing contained in this section shall (i) supersede or limit the jurisdiction at any time conferred on the Securities and Exchange Commission or other regulatory authorities under the laws of the United States or of any State, or (ii) restrict the Securities and Exchange Commission and such other authorities from carrying out their duties and responsibilities in accordance with such laws. Nothing in this section shall supersede or limit the jurisdiction conferred on courts of the United States or any State. Nothing in this chapter shall be deemed to govern or in any way be applicable to transactions in foreign currency, security warrants, security rights, resales of installment loan contracts, repurchase options, government securities, or mortgages and mortgage purchase commitments, unless such transactions involve the sale thereof for future delivery conducted on a board of trade. The term 'future delivery', as used in this chapter, shall not include any sale of any cash commodity for deferred shipment or delivery. The words 'board of trade' shall be held to include and mean any exchange or association, whether incorporated or unincorporated, of persons who shall be engaged in the business of buying or selling any commodity or receiving the same for sale on consignment. The words 'interstate commerce' shall be construed to mean commerce between any State, Territory, or possession, or the District of Columbia, and any place outside thereof; or between points within the same State, Territory, or possession, or the District of Columbia, but through any place outside thereof, or within any Territory or possession, or the District of Columbia. The words 'cooperative association of producers' shall mean any cooperative association, corporate or otherwise, not less than 75 per centum in good faith owned or controlled, directly or indirectly, by producers of agricultural products and otherwise complying with sections 291 and 292 of this title, including any organization acting for a group of such associations and owned or controlled by such associations, provided that business done for or with the United States of America, or any agency thereof, shall not be considered either member or nonmember business in determining the compliance of any such association with said sections. The words 'member of a contract market' shall mean and include individuals, associations, partnerships, corporations, and trusts owning or holding membership in, or admitted to membership representation on, a contract market or given members' trading privileges thereon. The words 'futures commission merchant' shall mean and include individuals, associations, partnerships, corporations, and trusts engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market and that, in or in connection with such solicitation or acceptance of orders, accepts any money, securities, or property (or extends credit in lieu thereof) to margin, guarantee, or secure any trades or contracts that result or may result therefrom. The term 'introducing broker' shall mean any person, except an individual who elects to be and is registered as an associated person of a futures commission merchant, engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market who does not accept any money, securities, or property (or extend credit in lieu thereof) to margin, guarantee, or secure any trades or contracts that result or may result therefrom. The words 'floor broker' shall mean any person who, in or surrounding any 'pit', 'ring', 'post', or other place provided by a contract market for the meeting of persons similarly engaged, shall purchase or sell for any other person any commodity for future delivery on or subject to the rules of any contract market. The words 'the Commission' shall mean the Commodity Futures Trading Commission established under section 4a of this title. The term 'commodity trading advisor' shall mean any person who, for compensation or profit, engages in the business of advising others, either directly or through publications, writings or electronic media, as to the value of or the advisability of trading in any contract of sale of a commodity for future delivery made or to be made on or subject to the rules of a contract market, any commodity option authorized under section 6c of this title, or any leverage transaction authorized under section 23 of this title, or who, for compensation or profit, and as part of a regular business, issues or promulgates analyses or reports concerning any of the foregoing; but such term does not include (i) any bank or trust company or any person acting as an employee thereof, (ii) any news reporter, news columnist, or news editor of the print or electronic media, or any lawyer, accountant, or teacher, (iii) any floor broker or futures commission merchant, (iv) the publisher or producer of any print or electronic data of general and regular dissemination, including its employees, (v) the fiduciary of any defined benefit plan which is subject to the provisions of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.), (vi) any contract market, and (vii) such other persons not within the intent of this definition as the Commission may specify by rule, regulation, or order: Provided, That the furnishing of such services by the foregoing persons is solely incidental to the conduct of their business or profession: Provided further, That the Commission, by rule or regulation, may include within this definition, any person advising as to the value of commodities or issuing reports or analyses concerning commodities, if the Commission determines that such rule or regulation will effectuate the purposes of this provision. The term 'commodity pool operator' shall mean any person engaged in a business which is of the nature of an investment trust, syndicate, or similar form of enterprise, and who, in connection therewith, solicits, accepts, or receives from others, funds, securities, or property, either directly or through capital contributions, the sale of stock or other forms of securities, or otherwise, for the purpose of trading in any commodity for future delivery on or subject to the rules of any contract market, but does not include such persons not within the intent of this definition as the Commission may specify by rule or regulation or by order. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 2(a)(1)(A), formerly Sec. 2(a), 42 Stat. 998; June 15, 1936, ch. 545, Sec. 2, 3, 49 Stat. 1491; Apr. 7, 1938, ch. 108, 52 Stat. 205; Oct. 9, 1940, ch. 786, Sec. 1, 54 Stat. 1059; Aug. 28, 1954, ch. 1041, title VII, Sec. 710(a), 68 Stat. 913; July 26, 1955, ch. 382, Sec. 1, 69 Stat. 375; Feb. 19, 1968, Pub. L. 90-258, Sec. 1, 82 Stat. 26; July 23, 1968, Pub. L. 90-418, 82 Stat. 413; redesignated Sec. 2(a)(1) and amended Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 101(a)(1), (2), title II, Sec. 201, 202, 88 Stat. 1389, 1395; Sept. 30, 1978, Pub. L. 95-405, Sec. 2(1), 92 Stat. 865; redesignated Sec. 2(a)(1)(A) and amended Jan. 11, 1983, Pub. L. 97-444, title I, Sec. 101(a)(1), (2), title II, Sec. 201, 96 Stat. 2294, 2297.) -REFTEXT- REFERENCES IN TEXT The Employee Retirement Income Security Act of 1974, referred to in text, is Pub. L. 93-406, Sept. 2, 1974, 88 Stat. 832, as amended, which is classified principally to chapter 18 (Sec. 1001 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 29 and Tables. -COD- CODIFICATION Section consists of part of subsec. (a)(1)(A) of section 2 of the Commodity Exchange Act, act Sept. 21, 1922. The remainder of such subsec. (a)(1)(A) is classified to section 4 of this title. Subsec. (a)(1)(B) is classified to section 2a of this title. Subsecs. (a)(2) to (11) of section 2 of the Commodity Exchange Act are classified to section 4a of this title. Subsec. (b) of section 2 of the Commodity Exchange Act is classified to section 3 of this title. -MISC3- AMENDMENTS 1983 - Pub. L. 97-444, Sec. 101(a)(2), inserted in third sentence, first proviso, ', except to the extent otherwise provided in section 2a of this title,' after 'exclusive jurisdiction'. Pub. L. 97-444, Sec. 201(1), inserted definition of 'introducing broker'. Pub. L. 97-444, Sec. 201(2), in revising definition of 'commodity training advisor', included any person advising others through electronic media; substituted provision respecting advising others 'as to the value of or the advisability of trading in any contract of sale of a commodity for future delivery made or to be made on or subject to the rules of a contract market, any commodity option authorized under section 6c of this title, or any leverage transaction authorized under section 23 of this title, or who, for compensation or profit, and as part of a regular business, issues or promulgates analyses or reports concerning any of the foregoing' for provision respecting advising others 'as to the value of commodities or as to the advisability of trading in any commodity for future delivery on or subject to the rules of any market, or who for compensation or profit, and as part of a regular business, issues or promulgates analyses or reports concerning commodities'; excluded in item (i) any person acting as an employee of any bank or trust company; substituted in cl. (ii) 'news reporter, news columnist, or news editor of the print or electronic media' for 'newspaper reporter, newspaper columnist, newspaper editor'; substituted in cl. (iv) 'the publisher or producer of any print or electronic data of general and regular dissemination, including its employees' for 'the publisher of any bona fide newspaper magazine, or business or financial publication of general and regular circulation including their employees'; inserted item (v); redesignated as items (vi) and (vii) former items (v) and (vi); and authorized Commission to effectuate purposes of definition by rule or regulation by including within definition any person advising as to the value of commodities or issuing reports or analyses concerning commodities. 1978 - Pub. L. 95-405 substituted 'section 23 of this title' for 'section 15a of this title'. 1974 - Pub. L. 93-463 struck out 'onions,' after 'eggs,' in definition of 'commodity' and inserted provisions to that definition to include as commodities all other goods and articles, except onions as provided in section 13-1 of this title, and all services, rights, and interests in which contracts for the future delivery are presently or in the future dealt in, inserted definitions for 'commodity trading advisor' and 'commodity pool operator', and, as definition of 'the Commission', substituted 'Commodity Futures Trading Commission established under section 4a of this title' for 'Commodity Exchange Commission, consisting of the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General, or an official or employee of each of the executive departments concerned, designated by the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General, respectively; and the Secretary of Agriculture or his designee shall serve as Chairman'. 1968 - Pub. L. 90-418 extended definition of 'commodity' in third sentence to include frozen concentrated orange juice. Pub. L. 90-258, Sec. 1(a), extended definition of 'commodity' in third sentence to include livestock and livestock products. Pub. L. 90-258, Sec. 1(b), substituted in definition of 'floor broker' in penultimate sentence 'purchase or sell for any other person' for 'engage in executing for others any order for the purchase or sale of' and struck out provision for receipt or acceptance of any commission or other compensation for services as a floor broker. Pub. L. 90-258, Sec. 1(c), provided in last sentence for representation on the Commission of Secretary of Agriculture, Secretary of Commerce, and Attorney General by an official or employee designated from executive department concerned and for service of Secretary of Agriculture or his designee as Chairman. 1955 - Act July 26, 1955, extended 'commodity' to onions. 1954 - Act Aug. 28, 1954, extended 'commodity' to wool. 1940 - Act Oct. 9, 1940, extended 'commodity' to fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans and soybean meal. 1938 - Act Apr. 7, 1938, extended 'commodity' to wool tops. 1936 - Act June 15, 1936, substituted 'commodity', 'any commodity', or 'commodities', as the case may require, for 'grain' wherever appearing, and 'any cash commodity' for 'cash grain', and inserted definitions of 'cooperative association of producers,' 'member of a contract market', 'futures commission merchant', 'floor broker' and 'the commission.' EFFECTIVE DATE OF 1983 AMENDMENT Section 239 of Pub. L. 97-444 provided that: 'This Act (see Short Title of 1983 Amendment note set out under section 1 of this title) shall be effective upon the date of enactment of this Act (Jan. 11, 1983), except that sections 207, 212, and 231 of this Act (amending sections 6d, 6k, and 18 of this title) shall be effective one hundred and twenty days after the date of enactment of this Act, or such earlier date as the Commodity Futures Trading Commission shall prescribe by regulation.' EFFECTIVE DATE OF 1978 AMENDMENT Section 28 of Pub. L. 95-405 provided that: 'Except as otherwise provided in this Act, the provisions of this Act (see Short Title of 1978 Amendment note set out under section 1 of this title) shall become effective October 1, 1978.' EFFECTIVE DATE OF 1974 AMENDMENT Section 418 of Pub. L. 93-463 provided that: '(a) Except as otherwise provided specifically in this Act, the effective date of this Act (see Short Title note set out under section 1 of this title) shall be the 180th day after enactment (Oct. 23, 1974). The Commission referred to in section 101 (Commodity Futures Trading Commission) is hereby established effective immediately on enactment of this Act (Oct. 23, 1974). Sections 102 and 410 (amending sections 5108, 5314, 5315, and 5316 of title 5) shall be effective immediately on enactment of this Act (Oct. 23, 1974). Activities necessary to implement the changes effected by this Act may be carried out after the date of enactment (Oct. 23, 1974) and before as well as after the 180th day thereafter. Activities to be carried out after the date of enactment (Oct. 23, 1974) and before the 180th day thereafter may include, but are not limited to the following: Designation of boards of trade as contract markets, registration of futures commission merchants, floor brokers, and other persons required to be registered under the Act (this chapter), approval or modification of bylaws, rules, regulations, and resolutions of contract markets, and issuance of regulations, effective on or after the 180th day after enactment (Oct. 23, 1974); appointment and compensation of the members of the Commission; hiring and compensation of staff; and conducting of investigations and hearings. Nothing in this Act shall limit the authority of the Secretary of Agriculture or the Commodity Exchange Commission under the Commodity Exchange Act, as amended, prior to the 180th day after enactment of this Act (Oct. 23, 1974). '(b) Funds appropriated for the administration of the Commodity Exchange Act, as amended (this chapter), may be used to implement this Act (see Short Title note under section 4a of this title) immediately after the date of enactment of this Act (Oct. 23, 1974).' EFFECTIVE DATE OF 1968 AMENDMENT Section 28 of Pub. L. 90-258 provided that: 'This Act (enacting sections 12b, 13b, 13c, and 17b, and amending sections 2, 6a, 6b, 6d, 6f, 6g, 6i, 7, 7a, 7b, 8, 9, 12, 12-1, 12a, 13, and 13a of this title) shall become effective one hundred and twenty days after enactment (Feb. 19, 1968).' EFFECTIVE DATE OF 1955 AMENDMENT Section 2 of act July 26, 1955, provided that: 'This Act (amending this section) shall take effect sixty days after the date of its enactment (July 26, 1955).' EFFECTIVE DATE OF 1954 AMENDMENT Section 710(b) of act Aug. 28, 1954, provided that: 'The amendment made by this section (amending this section) shall become effective sixty days after the date of enactment of this Act (Aug. 28, 1954).' EFFECTIVE DATE OF 1940 AMENDMENT Section 2 of act Oct. 9, 1940, provided that: 'This Act (amending this section) shall take effect sixty days after the date of its enactment (Oct. 9, 1940).' EFFECTIVE DATE OF 1936 AMENDMENT Amendment by act June 15, 1936, effective 90 days after June 15, 1936, see section 13 of that act, set out as a note under section 1 of this title. -CROSS- CROSS REFERENCES Onion futures transactions, definitions, applicable, see section 13-1 of this title. Transaction in interstate commerce, see section 3 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 6c, 6m of this title. ------DocID 9051 Document 19 of 2641------ -CITE- 7 USC Sec. 2a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 2a. Designation of boards of trade as contract markets; approval by and jurisdiction of Commodity Futures Trading Commission and Securities and Exchange Commission -STATUTE- Notwithstanding any other provision of law - (i) This chapter shall not apply to and the Commission shall have no jurisdiction to designate a board of trade as a contract market for any transaction whereby any party to such transaction acquires any put, call, or other option on one or more securities (as defined in section 77b(1) of title 15 or section 78c(a)(10) of title 15 on January 11, 1983), including any group or index of such securities, or any interest therein or based on the value thereof. (ii) This chapter shall apply to and the Commission shall have exclusive jurisdiction with respect to accounts, agreements (including any transaction which is of the character of, or is commonly known to the trade as, an 'option', 'privilege', 'indemnity', 'bid', 'offer', 'put', 'call', 'advance guaranty', or 'decline guaranty') and transactions involving, and may designate a board of trade as a contract market in, contracts of sale (or options on such contracts) for future delivery of a group or index of securities (or any interest therein or based upon the value thereof): Provided, however, That no board of trade shall be designated as a contract market with respect to any such contracts of sale (or options on such contracts) for future delivery unless the board of trade making such application demonstrates and the Commission expressly finds that the specific contract (or option on such contract) with respect to which the application has been made meets the following minimum requirements: (I) Settlement of or delivery on such contract (or option on such contract) shall be effected in cash or by means other than the transfer or receipt of any security, except an exempted security under section 77c of title 15 or section 78c(a)(12) of title 15 as in effect on January 11, 1983, (other than any municipal security, as defined in section 78c(a)(29) of title 15 on January 11, 1983); (II) Trading in such contract (or option on such contract) shall not be readily susceptible to manipulation of the price of such contract (or option on such contract), nor to causing or being used in the manipulation of the price of any underlying security, option on such security or option on a group or index including such securities; and (III) Such group or index of securities shall be predominately composed of the securities of unaffiliated issuers and shall be a widely published measure of, and shall reflect, the market for all publicly traded equity or debt securities or a substantial segment thereof, or shall be comparable to such measure. (iii) Upon application by a board of trade for designation as a contract market with respect to any contract of sale (or option on such contract) for future delivery involving a group or index of securities, the Commission shall provide an opportunity for public comment on whether such contracts (or options on such contracts) meet the minimum requirements set forth in clause (ii) of this subparagraph. (iv)(I) The Commission shall consult with the Securities and Exchange Commission with respect to any application which is submitted by a board of trade before December 9, 1982, for designation as a contract market with respect to any contract of sale (or option on such contract) for future delivery of a group or index of securities. If, no later than fifteen days following the close of the public comment period, the Securities and Exchange Commission shall object to the designation of a board of trade as a contract market in such contract (or option on such contract) on the ground that any minimum requirement of clause (ii) of this subparagraph is not met, the Commission shall afford the Securities and Exchange Commission an opportunity for an oral hearing, to be transcribed, before the Commission, and shall give appropriate weight to the views of the Securities and Exchange Commission. Such oral hearing shall be held after the public comment period, prior to Commission action upon such designation, and not less than thirty nor more than forty-five days after the close of the public comment period, unless both the Commission and the Securities and Exchange Commission otherwise agree. If such an oral hearing is held, the Securities and Exchange Commission fails to withdraw its objections, and the Commission issues an order designating a board of trade as a contract market with respect to any such contract (or option on such contract), the Securities and Exchange Commission shall have the right of judicial review of such order in accordance with the standards of section 9 of this title. If, pursuant to sections 8 and 9 of this title, there is a hearing on the record with respect to such application for designation, the Securities and Exchange Commission shall have the right to participate in that hearing as an interested party. (II) Effective for any application submitted by a board of trade on or after December 9, 1982, for designation as a contract market with respect to any contract of sale (or option on such contract) for future delivery of a group or index of securities, the Commission shall transmit a copy of such application to the Securities and Exchange Commission for review. The Commission shall not approve any such application if the Securities and Exchange Commission determines that such contract (or option on such contract) fails to meet the minimum requirements set forth in clause (ii) of this subparagraph. Such determination shall be made by order no later than forty-five days after the close of the public comment period under clause (iii) of this subparagraph. In the event of such determination, the board of trade shall be afforded an opportunity for a hearing on the record before the Securities and Exchange Commission. If a board of trade requests a hearing on the record, the hearing shall commence no later than thirty days following the receipt of the request, and a final determination shall be made no later than thirty days after the close of the hearing. A peson aggrieved by any such order of the Securities and Exchange Commission may obtain judicial review thereof in the same manner and under such terms and conditions as are provided in section 8 of this title. (v) No person shall offer to enter into, enter into, or confirm the execution of any contract of sale (or option on such contract) for future delivery of any security, or interest therein or based on the value thereof, except an exempted security under section 77c of title 15 or section 78c(a)(12) of title 15 as in effect on January 11, 1983 (other than any municipal security as defined in section 78c(a)(29) of title 15 on January 11, 1983), or except as provided in clause (ii) of this subparagraph, any group or index of such securities or any interest therein or based on the value thereof. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 2(a)(1)(B), as added Jan. 11, 1983, Pub. L. 97-444, title I, Sec. 101(a)(3), 96 Stat. 2294; Nov. 10, 1986, Pub. L. 99-641, title I, Sec. 110(1), 100 Stat. 3561.) -COD- CODIFICATION Section is comprised of subsec. (a)(1)(B) of section 2 of the Commodity Exchange Act, act Sept. 21, 1922. Subsec. (a)(1)(A) is classified to sections 2 and 4 of this title. Subsec. (a)(2) to (11) of section 2 of the Commodity Exchange Act is classified to section 4a of this title. Subsec. (b) of section 2 of the Commodity Exchange Act is classified to section 3 of this title. -MISC3- AMENDMENTS 1986 - Par. (iv)(I). Pub. L. 99-641 substituted 'Securities and Exchange Commission' for 'Securities Exchange Commission' before 'otherwise agree'. EFFECTIVE DATE Section effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as an Effective Date of 1983 Amendment note under section 2 of this title. ------DocID 9052 Document 20 of 2641------ -CITE- 7 USC Sec. 3 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 3. Transaction in interstate commerce -STATUTE- For the purposes of this chapter (but not in any wise limiting the definition of interstate commerce in section 2 of this title) a transaction in respect to any article shall be considered to be in interstate commerce if such article is part of that current of commerce usual in the commodity trade whereby commodities and commodity products and by-products thereof are sent from one State, with the expectation that they will end their transit, after purchase, in another, including in addition to cases within the above general description, all cases where purchase or sale is either for shipment to another State, or for manufacture within the State and the shipment outside the State of the products resulting from such manufacture. Articles normally in such current of commerce shall not be considered out of such commerce through resort being had to any means or device intended to remove transactions in respect thereto from the provisions of this chapter. For the purpose of this section the word 'State' includes Territory, the District of Columbia, possession of the United States, and foreign nation. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 2(b), 42 Stat. 998; June 15, 1936, ch. 545, Sec. 2, 49 Stat. 1491.) -COD- CODIFICATION Section constitutes subsec. (b) of section 2 of the Commodity Exchange Act, act Sept. 21, 1922. Part of subsec. (a) of such section 2 is classified to section 2 and the remainder of such subsec. (a) is classified to sections 2a, 4, and 4a of this title. -MISC3- AMENDMENTS 1936 - Act June 15, 1936, substituted 'commodity' and 'commodities', as the case may require, for 'grain' wherever appearing. EFFECTIVE DATE OF 1936 AMENDMENT Amendment by act June 15, 1936, effective 90 days after June 15, 1936, see section 13 of that act, set out as a note under section 1 of this title. -CROSS- CROSS REFERENCES Interstate commerce defined, see section 2 of this title. Power of Congress to regulate interstate commerce, see Const. Art. 1, Sec. 8, cl. 3. ------DocID 9053 Document 21 of 2641------ -CITE- 7 USC Sec. 4 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 4. Liability of principal for act of agent -STATUTE- For the purpose of this chapter the act, omission, or failure of any official, agent, or other person acting for any individual, association, partnership, corporation, or trust within the scope of his employment or office shall be deemed the act, omission, or failure of such individual, association, partnership, corporation, or trust, as well as of such official, agent, or other person. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 2(a)(1)(A), formerly Sec. 2(a), 42 Stat. 998; redesignated Sec. 2(a)(1), Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 101(a)(1), 88 Stat. 1389; redesignated Sec. 2(a)(1)(A), Jan. 11, 1983, Pub. L. 97-444, title I, Sec. 101(a)(1), 96 Stat. 2294.) -COD- CODIFICATION Section consists of part of subsec. (a)(1)(A) of section 2 of the Commodity Exchange Act, act Sept. 21, 1922. The remainder of such subsec. (a)(1)(A) is classified to section 2 of this title. Subsec. (a)(1)(B) is classified to section 2a of this title. Subsecs. (a)(2) to (11) of section 2 of the Commodity Exchange Act are classified to section 4a of this title. Subsec. (b) of section 2 of the Commodity Exchange Act is classified to section 3 of this title. ------DocID 9054 Document 22 of 2641------ -CITE- 7 USC Sec. 4a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 4a. Commodity Futures Trading Commission -STATUTE- (a) Establishment; composition; term of Commissioners (1) There is hereby established, as an independent agency of the United States Government, a Commodity Futures Trading Commission. The Commission shall be composed of five Commissioners, who shall be appointed by the President, by and with the advice and consent of the Senate. In nominating persons for appointment, the President shall seek to establish and maintain a balanced Commission, including, but not limited to, persons of demonstrated knowledge in futures trading or its regulation and persons of demonstrated knowledge in the production, merchandising, processing or distribution of one or more of the commodities or other goods and articles, services, rights and interests covered by this chapter. Not more than three of the members of the Commission shall be members of the same political party. Each Commissioner shall hold office for a term of five years and until his successor is appointed and has qualified, except that he shall not so continue to serve beyond the expiration of the next session of Congress subsequent to the expiration of said fixed term of office, and except (i) any Commissioner appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term, and (ii) the terms of office of the Commissioners first taking office after the enactment of this paragraph shall expire as designated by the President at the time of nomination, one at the end of one year, one at the end of two years, one at the end of three years, one at the end of four years, and one at the end of five years. (2) The President shall appoint, by and with the advice and consent of the Senate, a member of the Commission as Chairman, who shall serve as Chairman at the pleasure of the President. An individual may be appointed as Chairman at the same time that person is appointed as a Commissioner. The Chairman shall be the chief administrative officer of the Commission and shall preside at hearings before the Commission. At any time, the President may appoint, by and with the advice and consent of the Senate, a different Chairman, and the Commissioner previously appointed as Chairman may complete that Commissioner's term as a Commissioner. (b) Vacancies A vacancy in the Commission shall not impair the right of the remaining Commissioners to exercise all the powers of the Commission. (c) General Counsel The Commission shall have a General Counsel, who shall be appointed by the Commission and serve at the pleasure of the Commission. The General Counsel shall report directly to the Commission and serve as its legal advisor. The Commission shall appoint such other attorneys as may be necessary, in the opinion of the Commission, to assist the General Counsel, represent the Commission in all disciplinary proceedings pending before it, represent the Commission in courts of law whenever appropriate, assist the Department of Justice in handling litigation concerning the Commission in courts of law, and perform such other legal duties and functions as the Commission may direct. (d) Executive Director The Commission shall have an Executive Director, who shall be appointed by the Commission and serve at the pleasure of the Commission. The Executive Director shall report directly to the Commission and perform such functions and duties as the Commission may prescribe. (e) Powers and functions of Chairman (1) Except as otherwise provided in this subsection and in subsections (c) and (d) of this section, the executive and administrative functions of the Commission, including functions of the Commission with respect to the appointment and supervision of personnel employed under the Commission, the distribution of business among such personnel and among administrative units of the Commission, and the use and expenditure of funds, according to budget categories, plans, programs, and priorities established and approved by the Commission, shall be exercised solely by the Chairman. (2) In carrying out any of his functions under the provisions of this subsection, the Chairman shall be governed by general policies, plans, priorities, and budgets approved by the Commission and by such regulatory decisions, findings, and determination as the Commission may by law be authorized to make. (3) The appointment by the Chairman of the heads of major administrative units under the Commission shall be subject to the approval of the Commission. (4) Personnel employed regularly and full time in the immediate offices of Commissioners other than the Chairman shall not be affected by the provisions of this subsection. (5) There are hereby reserved to the Commission its functions with respect to revising budget estimates and with respect to determining the distribution of appropriated funds according to major programs and purposes. (6) The Chairman may from time to time make such provisions as he shall deem appropriate authorizing the performance by any officer, employee, or administrative unit under his jurisdiction of any functions of the Chairman under this subsection. (f) Conflict of interest No Commissioner or employee of the Commission shall accept employment or compensation from any person, exchange, or clearinghouse subject to regulation by the Commission under this chapter during his term of office, nor shall he participate, directly or indirectly, in any contract market operations or transactions of a character subject to regulation by the Commission. (g) Liaison with Department of Agriculture; communications with Department of Treasury, Federal Reserve Board, and Securities and Exchange Commission; application by a board of trade for designation as a contract market for future delivery of securities (1) The Commission shall, in cooperation with the Secretary of Agriculture, maintain a liaison between the Commission and the Department of Agriculture. The Secretary shall take such steps as may be necessary to enable the Commission to obtain information and utilize such services and facilities of the Department of Agriculture as may be necessary in order to maintain effectively such liaison. In addition, the Secretary shall appoint a liaison officer, who shall be an employee of the Office of the Secretary, for the purpose of maintaining a liaison between the Department of Agriculture and the Commission. The Commission shall furnish such liaison officer appropriate office space within the offices of the Commission and shall allow such liaison officer to attend and observe all deliberations and proceedings of the Commission. (2)(i) The Commission shall maintain communications with the Department of the Treasury, the Board of Governors of the Federal Reserve System, and the Securities and Exchange Commission for the purpose of keeping such agencies fully informed of Commission activities that relate to the responsibilities of those agencies, for the purpose of seeking the views of those agencies on such activities, and for considering the relationships between the volume and nature of investment and trading in contracts of sale of a commodity for future delivery and in securities and financial instruments under the jurisdiction of such agencies. (ii) When a board of trade applies for designation as a contract market involving transactions for future delivery of any security issued or guaranteed by the United States or any agency thereof, the Commission shall promptly deliver a copy of such application to the Department of the Treasury and the Board of Governors of the Federal Reserve System. The Commission may not designate a board of trade as a contract market based on such application until forty-five days after the date the Commission delivers the application to such agencies or until the Commission receives comments from each of such agencies on the application, whichever period is shorter. Any comments received by the Commission from such agencies shall be included as part of the public record of the Commission's designation proceeding. In designating, or refusing, suspending, or revoking the designation of, a board of trade as a contract market involving transactions for future delivery referred to in this clause or in considering possible emergency action under section 12a(9) of this title with respect to such transactions, the Commission shall take into consideration all comments it receives from the Department of the Treasury and the Board of Governors of the Federal Reserve System and shall consider the effect that any such designation, suspension, revocation, or emergency action may have on the debt financing requirements of the United States Government and the continued efficiency and integrity of the underlying market for government securities. (iii) The provisions of this subparagraph shall not create any rights, liabilities, or obligations upon which actions may be brought against the Commission. (h) Transmittal of budget requests and legislative recommendations to Congressional committees (1) Whenever the Commission submits any budget estimate or request to the President or the Office of Management and Budget, it shall concurrently transmit copies of that estimate or request to the House and Senate Appropriations Committees and the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry. (2) Whenever the Commission transmits any legislative recommendations, or testimony, or comments on legislation to the President or the Office of Management and Budget, it shall concurrently transmit copies thereof to the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry. No officer or agency of the United States shall have any authority to require the Commission to submit its legislative recommendations, or testimony, or comments on legislation to any officer or agency of the United States for approval, comments, or review, prior to the submission of such recommendations, testimony, or comments to the Congress. In instances in which the Commission voluntarily seeks to obtain the comments or review of any officer or agency of the United States, the Commission shall include a description of such actions in its legislative recommendations, testimony, or comments on legislation which it transmits to the Congress. (i) Seal The Commission shall have an official seal, which shall be judicially noticed. (j) Rules and regulations The Commission is authorized to promulgate such rules and regulations as it deems necessary to govern the operating procedures and conduct of the business of the Commission. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 2(a)(2)-(11), as added Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 101(a)(3), 88 Stat. 1389, and amended Sept. 30, 1978, Pub. L. 95-405, Sec. 2(2)-(15), 92 Stat. 865-867; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 202, 96 Stat. 2298.) -COD- CODIFICATION Section consists of pars. (2) to (11) of section 2(a) of the Commodity Exchange Act. For purposes of codification the numbered pars. (2) to (11) have been translated as subsecs. (a) to (j), respectively, of this section, with subpars. (A) and (B) of par. (2), subpars. (A) to (F) of par. (6), subpars. (A) and (B) of par. (7), subpars. (A) and (B) of par. (8), and subpars. (A) and (B) of par. (9) in the original being translated as pars. (1) and (2) of subsec. (a), pars. (1) to (6) of subsec. (e), pars. (1) and (2) of subsec. (f), pars. (1) and (2) of subsec. (g), and pars. (1) and (2) of subsec. (h) of this section, respectively. Par. (1) of section 2(a) of the Commodity Exchange Act is classified to sections 2, 2a, and 4 of this title. Subsec. (b) of section 2 of the Commodity Exchange Act is classified to section 3 of this title. -MISC3- AMENDMENTS 1983 - Subsec. (f). Pub. L. 97-444 struck out subpar. designation of first par. and subpar. designation and provisions of second par. which prohibited any representative activities before the Commission for a one year period upon termination of employment occurring on a day more than four months after Sept. 30, 1978, of any Commissioner or employee of the Commission having a GS-16 or higher classified position excepted from the competitive service because of its confidential or policymaking character. 1978 - Subsec. (a). Pub. L. 95-405, Sec. 2(2)-(5), designated existing provisions as par. (1) and substituted 'five Commissioners' for 'a chairman and four other Commissioners', '(i)' for '(A)', and '(ii)' for '(B)', and added par. (2). Subsec. (d). Pub. L. 95-405, Sec. 2(6), struck out ', by and with the advice and consent of the Senate,' after 'by the Commission'. Subsec. (e)(1). Pub. L. 95-405, Sec. 2(7), inserted 'according to budget categories, plans, programs, and priorities established and approved by the Commission,' after 'expenditure of funds,'. Subsec. (e)(2). Pub. L. 95-405, Sec. 2(8), substituted ', plans, priorities, and budgets approved by the Commission' for 'of the Commission'. Subsec. (f). Pub. L. 95-405, Sec. 2(9), (10), designated existing provisions as par. (1) and added par. (2). Subsec. (g). Pub. L. 95-405, Sec. 2(11)-(13), designated existing provisions as par. (1), substituted 'maintain' for 'establish a separate office within the Department of Agriculture to be staffed with employees of the Commission for the purpose of maintaining', and added par. (2). Subsec. (h)(1), (2). Pub. L. 95-405, Sec. 2(14), (15), substituted 'Senate Committee on Agriculture, Nutrition, and Forestry' for 'Senate Committee on Agriculture and Forestry'. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. SEPARABILITY Section 413 of Pub. L. 93-463 provided that: 'If any provision of this Act (see Short Title note set out under section 1 of this title) or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the Act and the application of such provisions to other persons or circumstances shall not be affected thereby.' SILVER MARKETS ACTIVITY, SEPTEMBER 1979 THROUGH MARCH 1980; REPORT TO CONGRESS Act Sept. 21, 1922, ch. 369, Sec. 21, as added by Pub. L. 96-276, Sec. 7, June 17, 1980, 94 Stat. 542, provided: 'The Commission shall establish a joint working group with the Federal Reserve Board, Department of the Treasury, and Securities and Exchange Commission to analyze the various aspects of the events in the silver cash and futures markets during the period of September 1979 through March 1980. The joint working group will prepare a report of its findings that shall include, but not be limited to, a description of the causes of this situation, an appraisal of the adequacy of consultation during this period between the members of the joint working group, and recommendations for legislative changes that could prevent a recurrence of these or similar events in any futures market. The joint working group shall submit its report to the appropriate committees of Congress by October 1, 1980.' NON-ABATEMENT OF PENDING PROCEEDINGS Section 412 of Pub. L. 93-463 provided that: 'Pending proceedings under existing law shall not be abated by reason of any provision of this Act (see Short Title note set out under section 1 of this title) but shall be disposed of pursuant to the applicable provisions of the Commodity Exchange Act, as amended (this chapter), in effect prior to the effective date of this Act (see Effective Date of 1974 Amendment note set out under section 2 of this title).' PROVISIONAL DESIGNATION OF CONTRACT MARKETS; PROVISIONAL REGISTRATION OF FUTURES COMMISSION MERCHANTS, FLOOR BROKERS, ASSOCIATED PERSONS, COMMODITY TRADING ADVISORS, AND COMMODITY POOL OPERATORS; EXTENSION OF EFFECTIVE DATES Pub. L. 94-16, Sec. 1, Apr. 16, 1975, 89 Stat. 77, provided that the Commodity Futures Trading Commission would, in its discretion, and without prior notice of hearings, grant provisional designation as a contract market to any boards of trade for any commodities traded thereon for such period not in excess of ninety days from the effective date of the Commodity Futures Trading Commission Act of 1974 (see Effective Date of 1974 Amendment note set out under section 2 of this title) and under such terms and conditions as it prescribed, and that upon the expiration of any provisional designation of a board of trade as a contract market, such board of trade should not be designated as a contract market except as provided in section 6 of the Commodity Exchange Act, as amended (section 8 et seq. of this title); would grant provisional registration as a futures commission merchant, floor broker, associated person, commodity trading adviser, and commodity pool operator to any person for such period not in excess of ninety days from the effective date of the Commodity Futures Trading Commission Act of 1974 (Public Law 93-463) (see Effective Date of 1974 Amendment note set out under section 2 of this title) and under such terms and conditions as it prescribed; and would defer for such period not in excess of ninety days from the effective date of the Act (see Effective Date of 1974 Amendment note under section 2 of this title), the effective dates of sections 204, 205, 210, and 407 of the Commodity Futures Trading Commission Act of 1974 (Public Law 93-463) (enacting sections 6k, 6l, 6m, 6n, 6o, and 7a(12) and amending sections 7a(8), 9, and 12a(1) of this title). REPORT AND RECOMMENDATIONS TO CONGRESS RESPECTING NEED FOR INSURANCE COVERING INSOLVENCY OR FAILURE OF FUTURES COMMISSION MERCHANTS Section 417 of Pub. L. 93-463 required that the Commodity Futures Trading Commission submit to the Congress, not later than June 30, 1976, a report respecting the need for legislation insuring owners of commodity futures accounts and persons handling or clearing trades in such accounts against loss by reason of the insolvency or financial failure of a futures commission merchant carrying such accounts and that the report contain the recommendations of the Commission concerning the form and nature of any such legislation. TRANSFER OF OPERATIONS TO COMMODITY FUTURES TRADING COMMISSION Section 411 of Pub. L. 93-463 provided that all operations of the Commodity Exchange Commission and of the Secretary of Agriculture under the Commodity Exchange Act (this chapter), including all pending administrative proceedings, be transferred to the Commodity Futures Trading Commission as of the effective date of Pub. L. 93-463 (see Effective Date of 1974 Amendment note set out under section 2 of this title) and continue to completion and that all rules, regulations, and orders theretofore issued by the Commodity Exchange Commission and by The Secretary of Agriculture under the Commodity Exchange Act (this chapter) to the extent not inconsistent with the provisions of Pub. L. 93-463 (see Short Title note set out under section 1 of this title) continue in full force and effect unless and until terminated, modified, or suspended by the Commodity Futures Trading Commission. TRANSFER OF PERSONNEL, PROPERTY, RECORDS, AND FUNDS TO COMMODITY FUTURES TRADING COMMISSION Section 104 of Pub. L. 93-463 authorized the transfer of all of the personnel of the Commodity Exchange Authority, property, records, and unexpended balance of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with administration of the Commodity Exchange Act (this chapter) to the Commodity Futures Trading Commission upon the effective date of Pub. L. 93-463 (see Effective Date of 1974 Amendment note set out under section 2 of this title). -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 2 of this title. ------DocID 9055 Document 23 of 2641------ -CITE- 7 USC Sec. 5 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 5. Legislative findings -STATUTE- Transactions in commodities involving the sale thereof for future delivery as commonly conducted on boards of trade and known as 'futures' are affected with a national public interest. Such futures transactions are carried on in large volume by the public generally and by persons engaged in the business of buying and selling commodities and the products and byproducts thereof in interstate commerce. The prices involved in such transactions are generally quoted and disseminated throughout the United States and in foreign countries as a basis for determining the prices to the producer and the consumer of commodities and the products and byproducts thereof and to facilitate the movements thereof in interstate commerce. Such transactions are utilized by shippers, dealers, millers, and others engaged in handling commodities and the products and byproducts thereof in interstate commerce as a means of hedging themselves against possible loss through fluctuations in price. The transactions and prices of commodities on such boards of trade are susceptible to excessive speculation and can be manipulated, controlled, cornered or squeezed, to the detriment of the producer or the consumer and the persons handling commodities and the products and byproducts thereof in interstate commerce, rendering regulation imperative for the protection of such commerce and the national public interest therein. Furthermore, transactions which are of the character of, or are commonly known to the trade as, 'options' are or may be utilized by commercial and other entities for risk shifting and other purposes. Options transactions are in interstate commerce or affect such commerce and the national economy, rendering regulation of such transactions imperative for the protection of such commerce and the national public interest. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 3, 42 Stat. 999; June 15, 1936, ch. 545, Sec. 2, 49 Stat. 1491; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 203, 96 Stat. 2298.) -MISC1- AMENDMENTS 1983 - Pub. L. 97-444 reenacted provisions punctuated with semicolons as sentences, substituted 'commodities' for 'commodity' wherever appearing, substituted 'susceptible to excessive speculation and can be manipulated, controlled, cornered or squeezed, to the detriment of the producer or the consumer and the persons handling commodities and the products and byproducts thereof in interstate commerce, rendering' for 'susceptible to speculation, manipulation, or control, which are detrimental to the producer or the consumer and the persons handling commodity and products and byproducts thereof in interstate commerce, and such fluctuations in prices are an obstruction to and a burden upon interstate commerce in commodity and the products and byproducts thereof and render', and inserted provisions respecting 'options' and 'options transactions'. 1936 - Act June 15, 1936, substituted 'commodity' for 'grain' wherever appearing. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1936 AMENDMENT Amendment by act June 15, 1936, effective 90 days after June 15, 1936, see section 13 of that act, set out as a note under section 1 of this title. ------DocID 9056 Document 24 of 2641------ -CITE- 7 USC Sec. 6 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6. Restriction of futures trading to contract markets; regulation of foreign transactions by United States persons -STATUTE- (a) It shall be unlawful for any person to offer to enter into, to enter into, to execute, to confirm the execution of, or to conduct any office or business anywhere in the United States, its territories or possessions, for the purpose of soliciting or accepting any order for, or otherwise dealing in, any transaction in, or in connection with, a contract for the purchase or sale of a commodity for future delivery (other than a contract which is made on or subject to the rules of a board of trade, exchange, or market located outside the United States, its territories or possessions) unless - (1) such transaction is conducted on or subject to the rules of a board of trade which has been designated by the Commission as a 'contract market' for such commodity; (2) such contract is executed or consummated by or through a member of such contract market; and (3) such contract is evidenced by a record in writing which shows the date, the parties to such contract and their addresses, the property covered and its price, and the terms of delivery: Provided, That each contract market member shall keep such record for a period of three years from the date thereof, or for a longer period if the Commission shall so direct, which record shall at all times be open to the inspection of any representative of the Commission or the Department of Justice. (b) The Commission may adopt rules and regulations proscribing fraud and requiring minimum financial standards, the disclosure of risk, the filing of reports, the keeping of books and records, the safeguarding of customers' funds, and registration with the Commission by any person located in the United States, its territories or possessions, who engages in the offer or sale of any contract of sale of a commodity for future delivery that is made or to be made on or subject to the rules of a board of trade, exchange, or market located outside the United States, its territories or possessions. Such rules and regulations may impose different requirements for such persons depending upon the particular foreign board of trade, exchange, or market involved. No rule or regulation may be adopted by the Commission under this subsection that (1) requires Commission approval of any contract, rule, regulation, or action of any foreign board of trade, exchange, or market, or clearinghouse for such board of trade, exchange, or market, or (2) governs in any way any rule or contract term or action of any foreign board of trade, exchange, or market, or clearinghouse for such board of trade, exchange, or market. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4, 42 Stat. 999; June 15, 1936, ch. 545, Sec. 2, 4, 49 Stat. 1491, 1492; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (f), 88 Stat. 1392; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 204, 96 Stat. 2299.) -MISC1- AMENDMENTS 1983 - Pub. L. 97-444 amended section generally, combining into subsec. (a) existing provisions of this section together with provisions formerly contained in section 6h(1) of this title, relating to the conduct of offices or places of business anywhere in the United States or its territories that are used for dealing in commodities for future delivery unless such dealings are executed or consummated by or through a member of a contract market, and adding subsec. (b). 1974 - Pub. L. 93-463 substituted 'Commission' for 'Secretary of Agriculture' and 'United States Department of Agriculture'. 1936 - Act June 15, 1936, Sec. 2, substituted 'commodity' for 'grain' wherever appearing. Act June 15, 1936, Sec. 4, struck out par. (a) and combined par. (b) with first par. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1936 AMENDMENT Amendment by act June 15, 1936, effective 90 days after June 15, 1936, see section 13 of that act, set out as a note under section 1 of this title. -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section and for failure to evidence any contract mentioned in this section by a record in writing, see section 13 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 13 of this title. ------DocID 9057 Document 25 of 2641------ -CITE- 7 USC Sec. 6a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6a. Excessive speculation as burden on interstate commerce; trading or position limits; control; hedging transactions; application of section; rulemaking power of contract markets and penalties for violation -STATUTE- (1) Excessive speculation in any commodity under contracts of sale of such commodity for future delivery made on or subject to the rules of contract markets causing sudden or unreasonable fluctuations or unwarranted changes in the price of such commodity, is an undue and unnecessary burden on interstate commerce in such commodity. For the purpose of diminishing, eliminating, or preventing such burden, the commission shall, from time to time, after due notice and opportunity for hearing, by rule, regulation, or order, proclaim and fix such limits on the amounts of trading which may be done or positions which may be held by any person under contracts of sale of such commodity for future delivery on or subject to the rules of any contract market as the commission finds are necessary to diminish, eliminate, or prevent such burden. In determining whether any person has exceeded such limits, the positions held and trading done by any persons directly or indirectly controlled by such person shall be included with the positions held and trading done by such person; and further, such limits upon positions and trading shall apply to positions held by, and trading done by, two or more persons acting pursuant to an expressed or implied agreement or understanding, the same as if the positions were held by, or the trading were done by, a single person. Nothing in this section shall be construed to prohibit the commission from fixing different trading or position limits for different commodities, markets, futures, or delivery months, or for different number of days remaining until the last day of trading in a contract, or different trading limits for buying and selling operations, or different limits for the purposes of subparagraphs (A) and (B) of paragraph (2) of this section, or from exempting transactions normally known to the trade as 'spreads' or 'straddles' or 'arbitrage' or from fixing limits applying to such transactions or positions different from limits fixed for other transactions or positions. The word 'arbitrage' in domestic markets shall be defined to mean the same as 'spread' or 'straddle'. The Commission is authorized to define the term 'international arbitrage'. (2) The commission shall, in such rule, regulation, or order, fix a reasonable time (not to exceed ten days) after the promulgation of the rule, regulation, or order; after which, and until such rule, regulation, or order is suspended, modified, or revoked, it shall be unlawful for any person - (A) directly or indirectly to buy or sell, or agree to buy or sell, under contracts of sale of such commodity for future delivery on or subject to the rules of the contract market or markets to which the rule, regulation, or order applies, any amount of such commodity during any one business day in excess of any trading limit fixed for one business day by the commission in such rule, regulation, or order for or with respect to such commodity; or (B) directly or indirectly to hold or control a net long or a net short position in any commodity for future delivery on or subject to the rules of any contract market in excess of any position limit fixed by the commission for or with respect to such commodity: Provided, That such position limit shall not apply to a position acquired in good faith prior to the effective date of such rule, regulation, or order. (3) No rule, regulation, or order issued under paragraph (1) of this section shall apply to transactions or positions which are shown to be bona fide hedging transactions or positions as such terms shall be defined by the Commission by rule, regulation, or order consistent with the purposes of this chapter. Such terms may be defined to permit producers, purchasers, sellers, middlemen, and users of a commodity or a product derived therefrom to hedge their legitimate anticipated business needs for that period of time into the future for which an appropriate futures contract is open and available on an exchange. To determine the adequacy of this chapter and the powers of the Commission acting thereunder to prevent unwarranted price pressures by large hedgers, the Commission shall monitor and analyze the trading activities of the largest hedgers, as determined by the Commission, operating in the cattle, hog, or pork belly markets and shall report its findings and recommendations to the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture in its annual reports for at least two years following January 11, 1983. (4) This section shall apply to a person that is registered as a futures commission merchant, an introducing broker, or a floor broker under authority of this chapter only to the extent that transactions made by such person are made on behalf of or for the account or benefit of such person. This section shall not apply to transactions made by, or on behalf of, or at the direction of, the United States, or a duly authorized agency thereof. (5) Nothing in this section shall prohibit or impair the adoption by any contract market or by any other board of trade licensed or designated by the Commission of any bylaw, rule, regulation, or resolution fixing limits on the amount of trading which may be done or positions which may be held by any person under contracts of sale of any commodity for future delivery traded on or subject to the rules of such contract market, or under options on such contracts or commodities traded on or subject to the rules of such contract market or such board of trade: Provided, That if the Commission shall have fixed limits under this section for any contract or under section 6c of this title for any commodity option, then the limits fixed by the bylaws, rules, regulations, and resolutions adopted by such contract market or such board of trade shall not be higher than the limits fixed by the Commission. It shall be a violation of this chapter for any person to violate any bylaw, rule, regulation, or resolution of any contract market or other board of trade licensed or designated by the Commission fixing limits on the amount of trading which may be done or positions which may be held by any person under contracts of sale of any commodity for future delivery or under options on such contracts or commodities, if such bylaw, rule, regulation, or resolution has been approved by the Commission: Provided, That the provisions of section 13(c) of this title shall apply only to those who knowingly violate such limits. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4a, as added June 15, 1936, ch. 545, Sec. 5, 49 Stat. 1492, and amended July 24, 1956, ch. 690, Sec. 1, 70 Stat. 630; Feb. 19, 1968, Pub. L. 90-258, Sec. 2-4, 82 Stat. 26, 27; Oct. 23, 1974, Pub. L. 93-463, title IV, Sec. 403, 404, 88 Stat. 1413; Apr. 16, 1975, Pub. L. 94-16, Sec. 4, 89 Stat. 78; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 205, 96 Stat. 2299.) -MISC1- AMENDMENTS 1983 - Par. (1). Pub. L. 97-444, Sec. 205(1), (2), substituted 'by rule, regulation, or order, proclaim' for 'by order, proclaim' and inserted 'or for different number of days remaining until the last day of trading in a contract,' after 'delivery months'. Par. (2). Pub. L. 97-444, Sec. 205(1), (3), substituted 'after the promulgation of the rule, regulation, or order' for 'after the order's promulgation' in provisions before subpar. (A) and substituted 'rule, regulation, or order' for 'order' in provisions before subpar. (A) and in subpars. (A) and (B). Par. (3). Pub. L. 97-444, Sec. 205(4), substituted 'No rule, regulation, or order issued under paragraph (1) of this section shall apply to transactions or positions which are shown to be bona fide hedging transactions or positions as such terms shall be defined by the Commission by rule, regulation, or order consistent with the purposes of this chapter' for 'No order issued under paragraph (1) of this section shall apply to transactions or positions which are shown to be bona fide hedging transactions or positions as such terms shall be defined by the Commission within one hundred and eighty days after the effective date of the Commodity Futures Trading Commission Act of 1974 by order consistent with the purposes of this chapter' and inserted 'Such terms may be defined to permit producers, purchasers, sellers, middlemen, and users of a commodity or a product derived therefrom to hedge their legitimate anticipated business needs for that period of time into the future for which an appropriate futures contract is open and available on an exchange. To determine the adequacy of this chapter and the powers of the Commission acting thereunder to prevent unwarranted price pressures by large hedgers, the Commission shall monitor and analyze the trading activities of the largest hedgers, as determined by the Commission, operating in the cattle, hog, or pork belly markets and shall report its findings and recommendations to the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture in its annual reports for at least two years following January 11, 1983.' Par. (4). Pub. L. 97-444, Sec. 205(5), substituted 'a futures commission merchant, an introducing broker, or a floor broker' for 'a futures commission merchant or as floor broker'. Par. (5). Pub. L. 97-444, Sec. 205(6), added par. (5). 1975 - Par. (3). Pub. L. 94-16 substituted 'one hundred and eighty days' for 'ninety days'. 1974 - Par. (1). Pub. L. 93-463, Sec. 403, inserted 'or 'arbitrage' ' after 'or 'straddles' ', inserted definition of 'arbitrage', and authorized Commission to define 'international arbitrage'. Par. (3). Pub. L. 93-463, Sec. 404, directed Commission to define 'bona fide hedging transactions or positions' within 90 days after the effective date of the Commodity Futures Trading Commission Act of 1974 and struck out provisions which enumerated the factors to be taken into account in determining whether a hedging transaction or position was a bona fide transaction or position. 1968 - Par. (1). Pub. L. 90-258, Sec. 2, substituted in second sentence 'amounts of trading' for 'amount of trading', inserted 'which may be done or positions which may be held by any person' before 'under contracts of sale', and struck out 'which may be done' after 'rules of any contract market', inserted third sentence providing for inclusion of controlled positions and trading in determining whether prescribed position or trading limits have been exceeded and for application of such position and trading limits to activities of two or more persons acting pursuant to agreement or understanding as if the activities of a single person, and included in fourth, formerly third, sentence references to position limits and to positions, substituted 'normally' for 'commonly', and struck out 'trading' from 'from fixing trading limits' and 'from trading limits'. Par. (2)(B). Pub. L. 90-258, Sec. 3, substituted prohibition against holding of net long or net short positions in excess of any position limit fixed by the Commission for former prohibition of purchases or sales which result in net long or net short positions in excess of trading limits fixed by the Commission and provided that the position limit shall not apply to a position acquired in good faith prior to the effective date of the order. Par. (3). Pub. L. 90-258, Sec. 4, included references to positions, made hedging applicable to short and long positions, substituted 'contract market' for 'board of trade', and required the activities to be those of the same person to constitute hedging. 1956 - Par. (3)(C). Act July 24, 1956, added subpar. (C). EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT Section 404 of Pub. L. 93-463 provided that the amendment of par. (3) which struck out provisions that enumerated the factors to be taken into account in determining whether a hedging transaction or position was a bona fide transaction or position, was effective immediately upon the enactment of Pub. L. 93-463, which was approved Oct. 23, 1974. Amendment by Pub. L. 93-463 of par. (1) and that part of par. (3) directing the Commission to define 'bona fide hedging transactions or positions' effective so as to allow implementation of all changes effected by this amendment to be carried out after Oct. 23, 1974, and before as well as after the 180th day thereafter, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1956 AMENDMENT Section 2 of act July 24, 1956, provided that: 'This Act (amending this section) shall take effect sixty days after the date of its enactment (July 24, 1956).' EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. REGULATIONS DEFINING BONA FIDE HEDGING TRANSACTIONS AND POSITIONS Section 404 of Pub. L. 93-463 provided in part: 'That notwithstanding any other provision of law, the Secretary of Agriculture, immediately upon the enactment of the Commodity Futures Trading Commission Act of 1974 (which was approved on Oct. 23, 1974), is authorized and directed to promulgate regulations defining bona fide hedging transactions and positions: And provided further, That until the Secretary issues such regulations defining bona fide hedging transactions and positions and such regulations are in full force and effect, such terms shall continue to be defined as set forth in the Commodity Exchange Act (par. (3) of this section) prior to its amendment by the Commodity Futures Trading Commission Act of 1974 (Pub. L. 93-463).' -CROSS- CROSS REFERENCES Power of Congress to regulate interstate commerce, see Const. Art. 1, Sec. 8, cl. 3. Punishment for violating the provisions of this section, see section 13 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 13 of this title. ------DocID 9058 Document 26 of 2641------ -CITE- 7 USC Sec. 6b -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6b. Contracts designed to defraud or mislead; bucketing orders; buying and selling orders for commodity -STATUTE- It shall be unlawful (1) for any member of a contract market, or for any correspondent, agent, or employee of any member, in or in connection with any order to make, or the making of, any contract of sale of any commodity in interstate commerce, made, or to be made, on or subject to the rules of any contract market, for or on behalf of any other person, or (2) for any person, in or in connection with any order to make, or the making of, any contract of sale of any commodity for future delivery made, or to be made, for or on behalf of any other person if such contract for future delivery is or may be used for (a) hedging any transaction in interstate commerce in such commodity or the products or byproducts thereof, or (b) determining the price basis of any transaction in interstate commerce in such commodity, or (c) delivering any such commodity sold, shipped, or received in interstate commerce for the fulfillment thereof - (A) to cheat or defraud or attempt to cheat or defraud such other person; (B) willfully to make or cause to be made to such other person any false report or statement thereof, or willfully to enter or cause to be entered for such person any false record thereof; (C) willfully to deceive or attempt to deceive such other person by any means whatsoever in regard to any such order or contract or the disposition or execution of any such order or contract, or in regard to any act of agency performed with respect to such order or contract for such person; or (D) to bucket such order, or to fill such order by offset against the order or orders of any other person, or willfully and knowingly and without the prior consent of such person to become the buyer in respect to any selling order of such person, or become the seller in respect to any buying order of such person. Nothing in this section or in any other section of this chapter shall be construed to prevent a futures commission merchant or floor broker who shall have in hand, simultaneously, buying and selling orders at the market for different principals for a like quantity of a commodity for future delivery in the same month executing such buying and selling orders at the market price: Provided, That any such execution shall take place on the floor of the exchange where such orders are to be executed at public outcry across the ring and shall be duly reported, recorded, and cleared in the same manner as other orders executed on such exchange: And provided further, That such transactions shall be made in accordance with such rules and regulations as the Commission may promulgate regarding the manner of the execution of such transactions. Nothing in this section shall apply to any activity that occurs on a board of trade, exchange, or market, or clearinghouse for such board of trade, exchange, or market, located outside the United States, or territories or possessions of the United States, involving any contract of sale of a commodity for future delivery that is made, or to be made, on or subject to the rules of such board of trade, exchange, or market. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4b, as added June 15, 1936, ch. 545, Sec. 5, 49 Stat. 1493, and amended Feb. 19, 1968, Pub. L. 90-258, Sec. 5, 82 Stat. 27; Oct. 23, 1974, Pub. L. 93-463, title IV, Sec. 405, 88 Stat. 1413; Nov. 10, 1986, Pub. L. 99-641, title I, Sec. 101, 100 Stat. 3557.) -MISC1- AMENDMENTS 1986 - Pub. L. 99-641 struck out 'on or subject to the rules of any contract market,' after 'to be made' in cl. (2) of first par. and added concluding paragraph that this section not apply to activity on board of trade, exchange, market, or clearinghouse located outside United States involving contract of sale of commodity for future delivery. 1974 - Pub. L. 93-463 substituted 'a commodity' for 'cotton' in provisions following subpar. (D) and inserted requirement that execution of buying and selling orders for commodities held simultaneously by the same merchant or broker be carried out in accordance with such rules and regulations as the Commission may promulgate regarding the manner of the execution of such transactions. 1968 - Pub. L. 90-258 relocated cl. (1) designation in first par. to follow 'unlawful' rather than to precede 'any contract of sale', provided in such cl. (1) for orders to make or making of contracts of sale 'made, or to be made on or subject to the rules of any contract market, for or on behalf of any other person' and in cl. (2) 'for any person, in or in connection with any order to make, or the making of,' any contract of sale of any commodity for future delivery for or on behalf of any 'other' person; and inserted 'other' before 'person' in subpar. (A) and in subpars. (B) and (C) where appearing for first time, respectively. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. -CROSS- CROSS REFERENCES Construction of section not to impair any State law applicable to any transaction enumerated or described in this section, see section 6c of this title. Punishment for violating the provisions of this section, see section 13 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 13 of this title. ------DocID 9059 Document 27 of 2641------ -CITE- 7 USC Sec. 6c -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6c. Prohibited transactions -STATUTE- (a) Meretricious transactions It shall be unlawful for any person to offer to enter into, enter into, or confirm the execution of, any transaction involving any commodity, which is or may be used for (1) hedging any transaction in interstate commerce in such commodity or the products or byproducts thereof, or (2) determining the price basis of any such transaction in interstate commerce in such commodity, or (3) delivering any such commodity sold, shipped, or received in interstate commerce for the fulfillment thereof - (A) if such transaction is, is of the character of, or is commonly known to the trade as, a 'wash sale,' 'cross trade,' or 'accommodation trade,' or is a fictitious sale; or (B) if such transaction is used to cause any price to be reported, registered, or recorded which is not a true and bona fide price. Nothing in this section shall be construed to prevent the exchange of futures in connection with cash commodity transactions or of futures for cash commodities, or of transfer trades or office trades if made in accordance with board of trade rules applying to such transactions and such rules shall have been approved by the Commission. (b) Regulated option trading No person shall offer to enter into, enter into or confirm the execution of, any transaction involving any commodity regulated under this chapter which is of the character of, or is commonly known to the trade as, an 'option', 'privilege', 'indemnity', 'bid', 'offer', 'put', 'call', 'advance guaranty', or 'decline guaranty', contrary to any rule, regulation, or order of the Commission prohibiting any such transaction or allowing any such transaction under such terms and conditions as the Commission shall prescribe. Any such order, rule, or regulation may be made only after notice and opportunity for hearing, and the Commission may set different terms and conditions for different markets. (c) Regulations for elimination of pilot status of commodity option transactions; terms and conditions of options trading Not later than 90 days after November 10, 1986, the Commission shall issue regulations - (1) to eliminate the pilot status of its program for commodity option transactions involving the trading of options on contract markets, including any numerical restrictions on the number of commodities or option contracts for which a contract market may be designated; and (2) otherwise to continue to permit the trading of such commodity options under such terms and conditions that the Commission from time to time may prescribe. (d) Dealer options exempt from subsections (b) and (c) prohibitions; requirements Notwithstanding the provisions of subsection (c) of this section - (1) any person domiciled in the United States who on May 1, 1978, was in the business of granting an option on a physical commodity, other than a commodity specifically set forth in section 2 of this title prior to October 23, 1974, and was in the business of buying, selling, producing, or otherwise using that commodity, may continue to grant or issue options on that commodity in accordance with Commission regulations in effect on August 17, 1978, until thirty days after the effective date of regulations issued by the Commission under clause (2) of this subsection: Provided, That if such person files an application for registration under the regulations issued under clause (2) of this subsection within thirty days after the effective date of such regulations, that person may continue to grant or issue options pending a final determination by the Commission on the application; and (2) the Commission shall issue regulations that permit grantors and futures commission merchants to offer to enter into, enter into, or confirm the execution of, any commodity option transaction on a physical commodity subject to the provisions of subsection (b) of this section, other than a commodity specifically set forth in section 2 of this title prior to October 23, 1974, if - (A) the grantor is a person domiciled in the United States who - (i) is in the business of buying, selling, producing, or otherwise using the underlying commodity; (ii) at all times has a net worth of at least $5,000,000 certified annually by an independent public accountant using generally accepted accounting principles; (iii) notifies the Commission and every futures commission merchant offering the grantor's option if the grantor knows or has reason to believe that the grantor's net worth has fallen below $5,000,000; (iv) segregates daily, exclusively for the benefit of purchasers, money, exempted securities (within the meaning of section 78c(a)(12) of title 15), commercial paper, bankers' acceptances, commercial bills, or unencumbered warehouse receipts, equal to an amount by which the value of each transaction exceeds the amount received or to be received by the grantor for such transaction; (v) provides an identification number for each transaction; and (vi) provides confirmation of all orders for such transactions executed, including the execution price and a transaction identification number; (B) the futures commission merchant is a person who - (i) has evidence that the grantor meets the requirements specified in subclause (A) of this clause; (ii) treats and deals with all money, securities, or property received from its customers as payment of the purchase price in connection with such transactions, as belonging to such customers until the expiration of the term of the option, or, if the customer exercises the option, until all rights of the customer under the commodity option transaction have been fulfilled; (iii) records each transaction in its customer's name by the transaction identification number provided by the grantor; (iv) provides a disclosure statement to its customers, under regulations of the Commission, that discloses, among other things, all costs, including any markups or commissions involved in such transaction; and (C) the grantor and futures commission merchant comply with any additional uniform and reasonable terms and conditions the Commission may prescribe, including registration with the Commission. The Commission may permit persons not domiciled in the United States to grant options under this subsection, other than options on a commodity specifically set forth in section 2 of this title prior to October 23, 1974, under such additional rules, regulations, and orders as the Commission may adopt to provide protection to purchasers that are substantially the equivalent of those applicable to grantors domiciled in the United States. The Commission may terminate the right of any person to grant, offer, or sell options under this subsection only after a hearing, including a finding that the continuation of such right is contrary to the public interest: Provided, That pending the completion of such termination proceedings, the Commission may suspend the right to grant, offer, or sell options of any person whose activities in the Commission's judgment present a substantial risk to the public interest. (e) Rules and regulations The Commission may adopt rules and regulations, after public notice and opportunity for a hearing on the record, prohibiting the granting, issuance, or sale of options permitted under subsection (d) of this section if the Commission determines that such options are contrary to the public interest. (f) Nonapplicability to foreign currency options Nothing in this chapter shall be deemed to govern or in any way be applicable to any transaction in an option on foreign currency traded on a national securities exchange. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4c, as added June 15, 1936, ch. 545, Sec. 5, 49 Stat. 1494, and amended Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), title IV, Sec. 402, 88 Stat. 1392, 1412; Sept. 30, 1978, Pub. L. 95-405, Sec. 3, 92 Stat. 867; Jan. 11, 1983, Pub. L. 97-444, title I, Sec. 102, title II, Sec. 206, 96 Stat. 2296, 2301; Nov. 10, 1986, Pub. L. 99-641, title I, Sec. 102, 100 Stat. 3557.) -MISC1- AMENDMENTS 1986 - Subsec. (c). Pub. L. 99-641, amended subsec. (c) generally, substituting provisions relating to regulations to eliminate pilot status of program for commodity option transactions for provisions relating to commodity option transactions, pilot program and permanent authorization, conditions ending prohibition, and excepted persons. 1983 - Subsec. (a)(B), (C). Pub. L. 97-444, Sec. 206(1), redesignated par. (C) as (B). Former par. (B), relating to transactions involving any commodity specifically set forth in section 2 of this title, prior to October 23, 1974, if such transactions were of the character of, or were commonly known to the trade as, an 'option', 'privilege', 'indemnity', 'bid', 'offer', 'put', 'call', 'advance guaranty', or 'decline guaranty', was struck out. Subsec. (b). Pub. L. 97-444, Sec. 206(2), in revising section generally, struck out references to any transaction subject to provisions of subsection (a) of this section and to any commodity not specifically set forth in section 2 of this title, prior to October 23, 1974, and struck out 'within one year after the effective date of the Commodity Futures Trading Commission Act of 1974 unless the Commission determines and notifies the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture that it is unable to prescribe such terms and conditions within such period of time:' after 'such terms and conditions as the Commission shall prescribe'. Subsec. (c). Pub. L. 97-444, Sec. 206(3), inserted 'With respect to any commodity regulated under this chapter and specifically set forth in section 2 of this title prior to October 23, 1974, the Commission may, pursuant to the procedures set forth in this subsection, establish a pilot program for a period not to exceed three years to permit such commodity option transactions. The Commission may authorize commodity option transactions during the pilot program in as many commodities as will provide an adequate test of the trading of such option transactions. After completion of the pilot program, the Commission may authorize commodity option transactions without regard to the restrictions in the pilot program after the Commission transmits to the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry the documentation required under clause (1) of the first sentence of this subsection and the expiration of thirty calendar days of continuous session of Congress after the date of such transmittal.' Subsec. (d)(1). Pub. L. 97-444, Sec. 206(4)(A), inserted ', other than a commodity specifically set forth in section 2 of this title prior to October 23, 1974,' after 'physical commodity'. Subsec. (d)(2). Pub. L. 97-444, Sec. 206(4)(B), inserted ', other than a commodity specifically set forth in section 2 of this title prior to October 23, 1974,' after 'subsection (b) of this section' in provisions preceding subpar. (A). Pub. L. 97-444, Sec. 206(4)(C), inserted ', other than options on a commodity specifically set forth in section 2 of this title prior to October 23, 1974,' after 'The Commission may permit persons not domiciled in the United States to grant options under this subsection' in provisions following par. (2). Subsec. (f). Pub. L. 97-444, Sec. 102, added subsec. (f). 1978 - Subsec. (a). Pub. L. 95-405, Sec. 3(1), in provisions following par. (C) substituted 'have been approved' for 'not have been disapproved'. Subsec. (b). Pub. L. 95-405, Sec. 3(2), substituted 'Senate Committee on Agriculture, Nutrition, and Forestry' for 'Senate Committee on Agriculture and Forestry'. Subsecs. (c) to (e). Pub. L. 95-405, Sec. 3(3), added subsecs. (c) to (e). 1974 - Subsec. (a). Pub. L. 93-463, Sec. 103(a), 402(a), (b), (d), designated existing provisions as subsec. (a), in par. (B) of subsec. (a) as so designated inserted 'if such transaction involves any commodity specifically set forth in section 2 of this title, prior to the enactment of the Commodity Futures Trading Commission Act of 1974, and' and 'option', and in provisions following par. (C), struck out provisions prohibiting a construction of this section or section 6b of this title which would impair any State law applicable to any transaction enumerated or described in this section or section 6b of this title and substituted 'Commission' for 'Secretary of Agriculture'. Subsec. (b). Pub. L. 93-463, Sec. 402(c), added subsec. (b). EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section, see section 13 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2, 6a, 12a, 13, 16, 25 of this title; title 11 section 761. ------DocID 9060 Document 28 of 2641------ -CITE- 7 USC Sec. 6d -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6d. Dealing by unregistered futures commission merchants or introducing brokers prohibited; duties of merchants regarding monies and securities of customers -STATUTE- It shall be unlawful for any person to engage as futures commission merchant or introducing broker in soliciting orders or accepting orders for the purchase or sale of any commodity for future delivery, or involving any contracts of sale of any commodity for future delivery, on or subject to the rules of any contract market unless - (1) such person shall have registered, under this chapter, with the Commission as such futures commission merchant or introducing broker and such registration shall not have expired nor been suspended nor revoked; and (2) such person shall, if a futures commission merchant, whether a member or nonmember of a contract market, treat and deal with all money, securities, and property received by such person to margin, guarantee, or secure the trades or contracts of any customer of such person, or accruing to such customer as the result of such trades or contracts, as belonging to such customer. Such money, securities, and property shall be separately accounted for and shall not be commingled with the funds of such commission merchant or be used to margin or guarantee the trades or contracts, or to secure or extend the credit, of any customer or person other than the one for whom the same are held: Provided, however, That such money, securities, and property of the customers of such futures commission merchant may, for convenience, be commingled and deposited in the same account or accounts with any bank or trust company or with the clearing house organization of such contract market, and that such share thereof as in the normal course of business shall be necessary to margin, guarantee, secure, transfer, adjust, or settle the contracts or trades of such customers, or resulting market positions, with the clearinghouse organization of such contract market or with any member of such contract market, may be withdrawn and applied to such purposes, including the payment of commissions, brokerage, interest, taxes, storage, and other charges, lawfully accruing in connection with such contracts and trades: Provided further, That in accordance with such terms and conditions as the Commission may prescribe by rule, regulation, or order, such money, securities, and property of the customers of such futures commission merchant may be commingled and deposited as provided in this section with any other money, securities, and property received by such futures commission merchant and required by the Commission to be separately accounted for and treated and dealt with as belonging to the customers of such futures commission merchant: Provided further, That such money may be invested in obligations of the United States, in general obligations of any State or of any political subdivision thereof, and in obligations fully guaranteed as to principal and interest by the United States, such investments to be made in accordance with such rules and regulations and subject to such conditions as the Commission may prescribe. It shall be unlawful for any person, including but not limited to any clearing agency of a contract market and any depository, that has received any money, securities, or property for deposit in a separate account as provided in paragraph (2) of this section, to hold, dispose of, or use any such money, securities, or property as belonging to the depositing futures commission merchant or any person other than the customers of such futures commission merchant. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4d, as added June 15, 1936, ch. 545, Sec. 5, 49 Stat. 1494, and amended Feb. 19, 1968, Pub. L. 90-258, Sec. 6, 82 Stat. 27; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), 88 Stat. 1392; Sept. 30, 1978, Pub. L. 95-405, Sec. 4, 92 Stat. 869; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 207, 96 Stat. 2302.) -MISC1- AMENDMENTS 1983 - Pub. L. 97-444, Sec. 207(1), inserted reference to introducing brokers in provisions preceding par. (1). Par. (1). Pub. L. 97-444, Sec. 207(2), inserted 'or introducing broker' after 'futures commission merchant'. Par. (2). Pub. L. 97-444, Sec. 207(3), inserted 'if a futures commission merchant,' after 'such person shall,'. 1978 - Pub. L. 95-405 in par. (2) inserted provisions authorizing Commission to prescribe terms and conditions under which funds and property commingled and deposited as permitted by par. (2) may be commingled and deposited with other funds and property received by a futures commission merchant and required by Commission to be separately accounted for and treated as belonging to its customers. 1974 - Pub. L. 93-463 substituted 'Commission' for 'Secretary of Agriculture' in pars. (1) and (2). 1968 - Pub. L. 90-258 struck out from second proviso of first par. authorization for investment of customer funds in investment securities of the kind national banking associations may buy or in loans secured by negotiable warehouse receipts conveying or securing title to readily marketable commodities to the extent of the current loan value of such receipts and added second par, making it unlawful for any person, including a clearing agency of a contract market or any depository, to treat customer funds as belonging to any person other than the customer, respectively. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective 120 days after Jan. 11, 1983, or such earlier date as the Commission shall prescribe by regulation, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section, see section 13 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 13 of this title. ------DocID 9061 Document 29 of 2641------ -CITE- 7 USC Sec. 6e -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6e. Floor brokers; dealings by unregistered broker prohibited -STATUTE- It shall be unlawful for any person to act as floor broker in executing any orders for the purchase or sale of any commodity for future delivery, or involving any contracts of sale of any commodity for future delivery, on or subject to the rules of any contract market unless such person shall have registered, under this chapter, with the Commission as such floor broker and such registration shall not have expired nor been suspended nor revoked. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4e, as added June 15, 1936, ch. 545, Sec. 5, 49 Stat. 1495, and amended Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), 88 Stat. 1392.) -MISC1- AMENDMENTS 1974 - Pub. L. 93-463 substituted 'Commission' for 'Secretary of Agriculture'. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section, see section 13 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 13 of this title. ------DocID 9062 Document 30 of 2641------ -CITE- 7 USC Sec. 6f -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6f. Registration of futures commission merchants, introducing brokers, and floor brokers; financial requirements for futures commission merchants and introducing brokers -STATUTE- (1) Any person desiring to register as a futures commission merchant, introducing broker, or floor broker hereunder shall be registered upon application to the Commission. The application shall be made in such form and manner as prescribed by the Commission, giving such information and facts as the Commission may deem necessary concerning the business in which the applicant is or will be engaged, including in the case of an application of a futures commission merchant or an introducing broker, the names and addresses of the managers of all branch offices, and the names of such officers and partners, if a partnership, and of such officers, directors, and stockholders, if a corporation, as the Commission may direct. Such person, when registered hereunder, shall likewise continue to report and furnish to the Commission the above-mentioned information and such other information pertaining to such person's business as the Commission may require. Each registration shall expire on December 31 of the year for which issued or at such other time, not less than one year from the date of issuance, as the Commission may by rule, regulation, or order prescribe, and shall be renewed upon application therefor unless the registration has been suspended (and the period of such suspension has not expired) or revoked pursuant to the provisions of this chapter. (2) Notwithstanding any other provisions of this chapter, no person desiring to register as futures commission merchant or as introducing broker shall be so registered unless he meets such minimum financial requirements as the Commission may by regulation prescribe as necessary to insure his meeting his obligation as a registrant, and each person so registered shall at all times continue to meet such prescribed minimum financial requirements: Provided, That such minimum financial requirements will be considered met if the applicant for registration or registrant is a member of a contract market and conforms to minimum financial standards and related reporting requirements set by such contract market in its bylaws, rules, regulations, or resolutions and approved by the Commission as adequate to effectuate the purposes of this paragraph (2). -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4f, as added June 15, 1936, ch. 545, Sec. 5, 49 Stat. 1495, and amended Feb. 19, 1968, Pub. L. 90-258, Sec. 7, 82 Stat. 28; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), 88 Stat. 1392; Sept. 30, 1978, Pub. L. 95-405, Sec. 5, 92 Stat. 869; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 208, 96 Stat. 2302.) -MISC1- AMENDMENTS 1983 - Par. (1). Pub. L. 97-444, Sec. 208(1), made grammatical changes, made registration provisions applicable to introducing brokers, and substituted 'revoked pursuant to the provisions of this chapter' for 'revoked after notice and hearing as prescribed in this chapter'. Par. (2). Pub. L. 97-444, Sec. 208(2), made financial requirements applicable to introducing brokers. 1978 - Par. (1). Pub. L. 95-405 substituted 'Each registration shall expire on December 31 of the year for which issued or at such other time, not less than one year from the date of issuance, as the Commission may by rule, regulation, or order prescribe' for 'All registrations shall expire on the 31st day of December of the year for which issued'. 1974 - Pub. L. 93-463 substituted 'Commission' for 'Secretary of Agriculture'. 1968 - Par. (1). Pub. L. 90-258, Sec. 7(a), substituted 'this chapter' for 'section 6g of this title'. Par. (2). Pub. L. 90-258, Sec. 7(b), substituted provisions that prescribed financial requirements for registration as futures commission merchant be met and continued at all times and that such requirements will be considered met by membership in a contract market and compliance with its minimum financial standards and related reporting requirements for former provisions for display of futures commission merchants' registration certificates. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section, see section 13 of this title. ------DocID 9063 Document 31 of 2641------ -CITE- 7 USC Sec. 6g -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6g. Reporting and recordkeeping -STATUTE- (1) Every person registered hereunder as futures commission merchant, introducing broker, or floor broker shall make such reports as are required by the Commission regarding the transactions and positions of such person, and the transactions and positions of the customer thereof, in commodities for future delivery on any board of trade in the United States or elsewhere; shall keep books and records pertaining to such transactions and positions in such form and manner and for such period as may be required by the Commission; and shall keep such books and records open to inspection by any representative of the Commission or the United States Department of Justice. (2) Every clearinghouse and contract market shall maintain daily trading records. The daily trading records shall include such information as the Commission shall prescribe by rule. (3) Floor brokers, introducing brokers, and futures commission merchants shall maintain daily trading records for each customer in such manner and form as to be identifiable with the trades referred to in paragraph (2) of this section. (4) Daily trading records shall be maintained in a form suitable to the Commission for such period as may be required by the Commission. Reports shall be made from the records maintained at such times and at such places and in such form as the Commission may prescribe by rule, order, or regulation in order to protect the public interest and the interest of persons trading in commodity futures. (5) Before the beginning of trading each day, the exchange shall, insofar as is practicable and under terms and conditions specified by the Commission, make public the volume of trading on each type of contract for the previous day and such other information as the Commission deems necessary in the public interest and prescribes by rule, order, or regulation. (6) Nothing contained in this section shall be construed to prohibit the Commission from making separate determinations for different clearinghouses, contract markets, and exchanges when such determinations are warranted in the judgment of the Commission. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4g, as added June 15, 1936, ch. 545, Sec. 5, 49 Stat. 1496, and amended Feb. 19, 1968, Pub. L. 90-258, Sec. 8, 82 Stat. 28; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (f), title IV, Sec. 415, 88 Stat. 1392, 1415; Sept. 30, 1978, Pub. L. 95-405, Sec. 6, 92 Stat. 869; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 209, 96 Stat. 2302.) -MISC1- AMENDMENTS 1983 - Par. (1). Pub. L. 97-444, Sec. 209(1), made reporting and recordkeeping requirements applicable to introducing brokers. Par. (2). Pub. L. 97-444, Sec. 209(2), made customer daily trading records requirement applicable to introducing brokers. 1978 - Par. (3). Pub. L. 95-405 substituted 'Floor brokers' for 'Brokers'. 1974 - Par. (1). Pub. L. 93-463, Sec. 103(a), (f), 415, designated existing provisions as par. (1) and substituted 'Commission' for 'Secretary of Agriculture' and 'United States Department of Agriculture'. Pars. (2) to (6). Pub. L. 93-463, Sec. 415, added pars. (2) to (6). 1968 - Pub. L. 90-258 rephrased existing provisions to express reporting and recordkeeping requirements as a positive obligation of futures commission merchants and floor brokers, rather than as a ground for revoking or suspending registration and struck out provisions for revocation or suspension of registration. See section 9 of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463 see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. ------DocID 9064 Document 32 of 2641------ -CITE- 7 USC Sec. 6h -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6h. False self-representation as contract market member prohibited -STATUTE- It shall be unlawful for any person falsely to represent such person to be a member of a contract market or the representative or agent of such member, or to be a registrant under this chapter or the representative or agent of any registrant, in soliciting or handling any order or contract for the purchase or sale of any commodity in interstate commerce or for future delivery, or falsely to represent in connection with the handling of any such order or contract that the same is to be or has been executed on, or by or through a member of, any contract market. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4h, as added June 15, 1936, ch. 545, Sec. 5, 49 Stat. 1496, and amended Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 210, 96 Stat. 2302.) -MISC1- AMENDMENTS 1983 - Pub. L. 97-444 struck out provisions formerly designated as par. (1) relating to conduct of offices or places of business anywhere in the United States or its territories that were used for dealing in commodities for future delivery unless such dealings were executed or consummated by or through a member of a contract market, which provisions were transferred to section 6(a) of this title, and broadened remaining provisions, formerly designated as par. (2), to prohibit false representations that a person is registered with the Commission in any capacity, and not only as a futures commission merchant, as previously provided. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section, see section 13 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 13 of this title. ------DocID 9065 Document 33 of 2641------ -CITE- 7 USC Sec. 6i -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6i. Reports of deals equal to or in excess of trading limits; books and records; cash and controlled transactions -STATUTE- It shall be unlawful for any person to make any contract for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market - (1) if such person shall directly or indirectly make such contracts with respect to any commodity or any future of such commodity during any one day in an amount equal to or in excess of such amount as shall be fixed from time to time by the Commission, and (2) if such person shall directly or indirectly have or obtain a long or short position in any commodity or any future of such commodity equal to or in excess of such amount as shall be fixed from time to time by the Commission, unless such person files or causes to be filed with the properly designated officer of the Commission such reports regarding any transactions or positions described in clauses (1) and (2) hereof as the Commission may by rule or regulation require and unless, in accordance with rules and regulations of the Commission, such person shall keep books and records of all such transactions and positions and transactions and positions in any such commodity traded on or subject to the rules of any other board of trade, and of cash or spot transactions in, and inventories and purchase and sale commitments of such commodity. Such books and records shall show complete details concerning all such transactions, positions, inventories, and commitments, including the names and addresses of all persons having any interest therein, and shall be open at all times to inspection by any representative of the Commission or the Department of Justice. For the purposes of this section, the futures and cash or spot transactions and positions of any person shall include such transactions and positions of any persons directly or indirectly controlled by such person. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4i, as added June 15, 1936, ch. 545, Sec. 5, 49 Stat. 1496, and amended Feb. 19, 1968, Pub. L. 90-258, Sec. 9, 82 Stat. 28; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (f), 88 Stat. 1392; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 211, 96 Stat. 2303.) -MISC1- AMENDMENTS 1983 - Pub. L. 97-444 amended section generally by substantially restating provisions and inserting requirement that persons whose transactions and positions in any cash commodity or commodity future are equal to or in excess of amounts fixed by the Commission, must keep books and records of such transactions and positions as well as books and records of any such commodity traded on or subject to rules of any other board of trade, whether or not such person is required to file reports with the Commission concerning such transactions and positions. 1974 - Pub. L. 93-463 substituted 'Commission' for 'Secretary of Agriculture' and 'United States Department of Agriculture'. 1968 - Pub. L. 90-258 required recordkeeping of positions and of cash or spot transactions in commodities entered into, and inventories and purchase and sale commitments of commodities held, in any month in which reports are required to be kept, including details concerning positions, inventories, and commitments, and included controlled transactions and positions in the futures and cash or spot transactions and positions of any person. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section, see section 13 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 13 of this title. ------DocID 9066 Document 34 of 2641------ -CITE- 7 USC Sec. 6j -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6j. Trades and executions by floor brokers; trades by futures commission merchants -STATUTE- (1) The Commission shall within nine months after the effective date of the Commodity Futures Trading Commission Act of 1974, and subsequently when it determines that changes are required, make a determination, after notice and opportunity for hearing, whether or not a floor broker may trade for his own account or any account in which such broker has trading discretion, and also execute a customer's order for future delivery and, if the Commission determines that such trades and such executions shall be permitted, the Commission shall further determine the terms, conditions, and circumstances under which such trades and such executions shall be conducted: Provided, That any such determination shall, at a minimum, take into account the effect upon the liquidity of trading of each market: And provided further, That nothing herein shall be construed to prohibit the Commission from making separate determinations for different contract markets when such are warranted in the judgment of the Commission, or to prohibit contract markets from setting terms and conditions more restrictive than those set by the Commission. (2) The Commission shall within nine months after the effective date of the Commodity Futures Trading Commission Act of 1974, and subsequently when it determines that changes are required, make a determination, after notice and opportunity for hearing, whether or not a futures commission merchant may trade for its own account or any proprietary account, as defined by the Commission, and if the Commission determines that such trades shall be permitted, the Commission shall further determine the terms, conditions, and circumstances under which such trades shall be conducted: Provided, That any such determination, at a minimum, shall take into account the effect upon the liquidity of trading of each market: And provided further, That nothing herein shall be construed to prohibit the Commission from making separate determinations for different contract markets when such are warranted in the judgment of the Commission, or to prohibit contract markets from setting terms and conditions more restrictive than those set by the Commission. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4j, as added Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 203, 88 Stat. 1396, and amended Apr. 16, 1975, Pub. L. 94-16, Sec. 2, 89 Stat. 77.) -REFTEXT- REFERENCES IN TEXT For the effective date of the Commodity Futures Trading Commission Act of 1974, referred to in pars. (1) and (2), see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. -MISC2- AMENDMENTS 1975 - Pub. L. 94-16 substituted 'nine months' for 'six months' in pars. (1) and (2). EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. ------DocID 9067 Document 35 of 2641------ -CITE- 7 USC Sec. 6k -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6k. Registration of associates of futures commission merchants, commodity pool operators, and commodity trading advisors; required disclosure of disqualifications -STATUTE- (1) It shall be unlawful for any person to be associated with a futures commission merchant as a partner, officer, or employee, or to be associated with an introducing broker as a partner, officer, employee, or agent (or any person occupying a similar status or performing similar functions), in any capacity that involves (i) the solicitation or acceptance of customers' orders (other than in a clerical capacity) or (ii) the supervision of any person or persons so engaged, unless such person is registered with the Commission under this chapter as an associated person of such futures commission merchant or of such introducing broker and such registration shall not have expired, been suspended (and the period of suspension has not expired), or been revoked. It shall be unlawful for a futures commission merchant or introducing broker to permit such a person to become or remain associated with the futures commission merchant or introducing broker in any such capacity if such futures commission merchant or introducing broker knew or should have known that such person was not so registered or that such registration had expired, been suspended (and the period of suspension has not expired), or been revoked. Any individual who is registered as a floor broker, futures commission merchant, or introducing broker (and such registration is not suspended or revoked) need not also register under this paragraph. (2) It shall be unlawful for any person to be associated with a commodity pool operator as a partner, officer, employee, consultant, or agent (or any person occupying a similar status or performing similar functions), in any capacity that involves (i) the solicitation of funds, securities, or property for a participation in a commodity pool or (ii) the supervision of any person or persons so engaged, unless such person is registered with the Commission under this chapter as an associated person of such commodity pool operator and such registration shall not have expired, been suspended (and the period of suspension has not expired), or been revoked. It shall be unlawful for a commodity pool operator to permit such a person to become or remain associated with the commodity pool operator in any such capacity if the commodity pool operator knew or should have known that such person was not so registered or that such registration had expired, been suspended (and the period of suspension has not expired), or been revoked. Any individual who is registered as a floor broker, futures commission merchant, introducing broker, commodity pool operator, or as an associated person of another category of registrant under this section (and such registration is not suspended or revoked) need not also register under this paragraph. The Commission may exempt any person or class of persons from having to register under this paragraph by rule, regulation, or order. (3) It shall be unlawful for any person to be associated with a commodity trading advisor as a partner, officer, employee, consultant, or agent (or any person occupying a similar status or performing similar functions), in any capacity which involves (i) the solicitation of a client's or prospective client's discretionary account or (ii) the supervision of any person or persons so engaged, unless such person is registered with the Commission under this chapter as an associated person of such commodity trading advisor and such registration shall not have expired, been suspended (and the period of suspension has not expired), or been revoked. It shall be unlawful for a commodity trading advisor to permit such a person to become or remain associated with the commodity trading advisor in any such capacity if the commodity trading advisor knew or should have known that such person was not so registered or that such registration had expired, been suspended (and the period of suspension has not expired), or been revoked. Any indiviudal who is registered as a floor broker, futures commission merchant, introducing broker, commodity trading advisor, or as an associated person of another category of registrant under this section (and such registration is not suspended or revoked) need not also register under this paragraph. The Commission may exempt any person or class of persons from having to register under this paragraph by rule, regulation, or order. (4) Any person desiring to be registered as an associated person of a futures commission merchant, of an introducing broker, of a commodity pool operator, or of a commodity trading advisor shall make application to the Commission in the form and manner prescribed by the Commission, giving such information and facts as the Commission may deem necessary concerning the applicant. Such person, when registered hereunder, shall likewise continue to report and furnish to the Commission such information as the Commission may require. Such registration shall expire at such time as the Commission may by rule, regulation, or order prescribe. (5) It shall be unlawful for any registrant to permit a person to become or remain an associated person of such registrant, if the registrant knew or should have known of facts regarding such associated person that are set forth as statutory disqualifications in section 12a(2) of this title, unless such registrant has notified the Commission of such facts and the Commission has determined that such person should be registered or temporarily licensed. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4k, as added Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 204(a), 88 Stat. 1396, and amended Sept. 30, 1978, Pub. L. 95-405, Sec. 7, 92 Stat. 869; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 212, 96 Stat. 2303.) -MISC1- AMENDMENTS 1983 - Par. (1). Pub. L. 97-444 amended par. (1) generally to apply to introducing brokers and persons associated with introducing brokers. Par. (2). Pub. L. 97-444 added par. (2). Former par. (2) redesignated (4). Par. (3). Pub. L. 97-444 added par. (3). Former par. (3), which empowered Commission to authorize a registered futures association to perform any portion of the registration functions under this section, in accordance with rules approved by the Commission, and subject to the provisions of this chapter applicable to registrations granted by the Commission, was struck out. Par. (4). Pub. L. 97-444 redesignated former par. (2) as (4) and substituted 'Any person desiring to be registered as an associated person of a futures commission merchant, of an introducing broker, of a commodity pool operator, or of a commodity trading advisor shall make application to the Commission in the form and manner prescribed by the Commission, giving such information and facts as the Commission may deem necessary concerning the applicant. Such person, when registered hereunder, shall likewise continue to report and furnish to the Commission such information as the Commission may require. Such registration shall expire at such time as the Commission may by rule, regulation, or order prescribe' for 'Any such person desiring to be registered shall make application to the Commission in the form and manner prescribed by the Commission, giving such information and facts as the Commission may deem necessary concerning the applicant. Such person, when registered hereunder, shall likewise continue to report and furnish to the Commission such information as the Commission may require. Such registration shall expire two years after the effective date thereof or at such other time, not less than one year from the date of issuance thereof, as the Commission may by rule, regulation, or order prescribe and shall be renewed upon application therefor, unless the registration has been suspended (and the period of such suspension has not expired) or revoked after notice and hearing as prescribed in section 9 of this title: Provided, That upon initial registration, unless the Commission otherwise prescribes by rule, regulation, or order, the effective period of such registration shall be not more than two years nor less than one year from the effective date thereof'. Par. (5). Pub. L. 97-444 added par. (5). 1978 - Par. (2). Pub. L. 95-405, Sec. 7(1), inserted provisions authorizing the Commission to prescribe the period of registration of not less than one year for associated persons. Par. (3). Pub. L. 95-405, Sec. 7(2), added par. (3). EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective 120 days after Jan. 11, 1983, or such earlier date as the Commission shall prescribe by regulation, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 13, 21 of this title. ------DocID 9068 Document 36 of 2641------ -CITE- 7 USC Sec. 6l -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6l. Commodity trading advisors and commodity pool operators; Congressional finding -STATUTE- It is hereby found that the activities of commodity trading advisors and commodity pool operators are affected with a national public interest in that, among other things - (1) their advice, counsel, publications, writings, analyses, and reports are furnished and distributed, and their contracts, solicitations, subscriptions, agreements, and other arrangements with clients take place and are negotiated and performed by the use of the mails and other means and instrumentalities of interstate commerce; (2) their advice, counsel, publications, writings, analyses, and reports customarily relate to and their operations are directed toward and cause the purchase and sale of commodities for future delivery on or subject to the rules of contract markets; and (3) the foregoing transactions occur in such volume as to affect substantially transactions on contract markets. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4l, as added Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 205(a), 88 Stat. 1397.) -MISC1- EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. ------DocID 9069 Document 37 of 2641------ -CITE- 7 USC Sec. 6m -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6m. Use of mails or other means or instrumentalities of interstate commerce by commodity trading advisors and commodity pool operators; relation to other law -STATUTE- (1) It shall be unlawful for any commodity trading advisor or commodity pool operator, unless registered under this chapter, to make use of the mails or any means or instrumentality of interstate commerce in connection with his business as such commodity trading advisor or commodity pool operator: Provided, That the provisions of this section shall not apply to any commodity trading advisor who, during the course of the preceding twelve months, has not furnished commodity trading advice to more than fifteen persons and who does not hold himself out generally to the public as a commodity trading advisor. The provisions of this section shall not apply to any commodity trading advisor who is a (1) dealer, processor, broker, or seller in cash market transactions of any commodity specifically set forth in section 2 of this title prior to October 23, 1974, (or products thereof) or (2) nonprofit, voluntary membership, general farm organization, who provides advice on the sale or purchase of any commodity specifically set forth in section 2 of this title prior to October 23, 1974; if the advice by the person described in clause (1) or (2) of this sentence as a commodity trading advisor is solely incidental to the conduct of that person's business: Provided, That such person shall be subject to proceedings under section 18 of this title. (2) Nothing in this chapter shall relieve any person of any obligation or duty, or affect the availability of any right or remedy available to the Securities and Exchange Commission or any private party arising under the Securities Act of 1933 (15 U.S.C. 77a et seq.) or the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) governing the issuance, offer, purchase, or sale of securities of a commodity pool, or of persons engaged in transactions with respect to such securities, or reporting by a commodity pool. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4m, as added Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 205(a), 88 Stat. 1398, and amended Sept. 30, 1978, Pub. L. 95-405, Sec. 8, 92 Stat. 870; Jan. 11, 1983, Pub. L. 97-444, title I, Sec. 103, 96 Stat. 2296.) -REFTEXT- REFERENCES IN TEXT The Securities Act of 1933, referred to in par. (2), is title I of act May 27, 1933, ch. 38, 48 Stat. 74, as amended, which is classified generally to subchapter I (Sec. 77a et seq.) of chapter 2A of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 77a of Title 15 and Tables. The Securities Exchange Act of 1934, referred to in par. (2), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is classified principally to chapter 2B (Sec. 78a et seq.) of Title 15. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables. -MISC2- AMENDMENTS 1983 - Pub. L. 97-444 designated existing provisions as par. (1) and added par. (2). 1978 - Pub. L. 95-405 inserted provisions relating to applicability of this section to commodity trading advisors who are dealers, processors, brokers, or sellers in cash market transactions of specifically listed commodities or nonprofit, voluntary membership, general farm organizations who provide advice on sale or purchase of specifically listed commodities if the advice by the person described in cl. (1) or (2) of this sentence is incidental solely to the conduct to the person's business and that such person be subject to proceedings under section 18 of this title. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 13 of this title. ------DocID 9070 Document 38 of 2641------ -CITE- 7 USC Sec. 6n -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6n. Registration of commodity trading advisors and commodity pool operators; application; expiration and renewal; record keeping and reports; disclosure; statements of account -STATUTE- (1) Any commodity trading advisor or commodity pool operator, or any person who contemplates becoming a commodity trading advisor or commodity pool operator, may register under this chapter by filing an application with the Commission. Such application shall contain such information, in such form and detail, as the Commission may, by rules and regulations, prescribe as necessary or appropriate in the public interest, including the following: (A) the name and form of organization, including capital structure, under which the applicant engages or intends to engage in business; the name of the State under the laws of which he is organized; the location of his principal business office and branch offices, if any; the names and addresses of all partners, officers, directors, and persons performing similar functions or, if the applicant be an individual, of such individual; and the number of employees; (B) the education, the business affiliations for the past ten years, and the present business affiliations of the applicant and of his partners, officers, directors, and persons performing similar functions and of any controlling person thereof; (C) the nature of the business of the applicant, including the manner of giving advice and rendering of analyses or reports; (D) the nature and scope of the authority of the applicant with respect to clients' funds and accounts; (E) the basis upon which the applicant is or will be compensated; and (F) such other information as the Commission may require to determine whether the applicant is qualified for registration. (2) Each registration under this section shall expire on the 30th day of June of each year, or at such other time, not less than one year from the effective date thereof, as the Commission may by rule, regulation, or order prescribe, and shall be renewed upon application therefor subject to the same requirements as in the case of an original application. (3)(A) Every commodity trading advisor and commodity pool operator registered under this chapter shall maintain books and records and file such reports in such form and manner as may be prescribed by the Commission. All such books and records shall be kept for a period of at least three years, or longer if the Commission so directs, and shall be open to inspection by any representative of the Commission or the Department of Justice. Upon the request of the Commission, a registered commodity trading advisor or commodity pool operator shall furnish the name and address of each client, subscriber, or participant, and submit samples or copies of all reports, letters, circulars, memorandums, publications, writings, or other literature or advice distributed to clients, subscribers, or participants, or prospective clients, subscribers, or participants. (B) Unless otherwise authorized by the Commission by rule or regulation, all commodity trading advisors and commodity pool operators shall make a full and complete disclosure to their subscribers, clients, or participants of all futures market positions taken or held by the individual principals of their organization. (4) Every commodity pool operator shall regularly furnish statements of account to each participant in his operations. Such statements shall be in such form and manner as may be prescribed by the Commission and shall include complete information as to the current status of all trading accounts in which such participant has an interest. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4n, as added Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 205(a), 88 Stat. 1398, and amended Sept. 30, 1978, Pub. L. 95-405, Sec. 9, 92 Stat. 870; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 213, 96 Stat. 2305.) -MISC1- AMENDMENTS 1983 - Par. (5). Pub. L. 97-444 struck out par. (5) which authorized Commission, without hearing, to deny registration to any person as a commodity trading advisor or commodity pool operator if such person was subject to an outstanding order under this chapter denying to such person trading privileges on any contract market, or suspending or revoking the registration of such person as a commodity trading advisor, commodity pool operator, futures commission merchant, or floor broker, or suspending or expelling such person from membership on any contract market. Par. (6). Pub. L. 97-444 struck out par. (6) which authorized Commission to deny registration or revoke or suspend the registration of any commodity trading advisor or commodity pool operator if the Commission found that such denial, revocation, or suspension was in the public interest and that such person had been guilty of certain specified activities. See section 12a(2), (3), and (4) of this title. 1978 - Par. (2). Pub. L. 95-405, Sec. 9(1)-(3), redesignated par. (3) as (2) and substituted 'Each registration' for 'All registrations' and inserted 'or at such other time, not less than one year from the effective date thereof, as the Commission may rule, regulation, or order prescribe,' after 'June of each year,'. Former par. (2), which provided that registration under this section becomes effective thirty days after the receipt of such application by the Commission, or within such shorter period of time as the Commission may determine, was struck out. Pars. (3) to (6). Pub. L. 95-405, Sec. 9(1), redesignated pars. (4) to (7) as (3) to (6), respectively. Former par. (3) redesignated (2). EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. ------DocID 9071 Document 39 of 2641------ -CITE- 7 USC Sec. 6o -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6o. Fraud and misrepresentation by commodity trading advisors, commodity pool operators, and associated persons -STATUTE- (1) It shall be unlawful for a commodity trading advisor, associated person of a commodity trading advisor, commodity pool operator, or associated person of a commodity pool operator, by use of the mails or any means or instrumentality of interstate commerce, directly or indirectly - (A) to employ any device, scheme, or artifice to defraud any client or participant or prospective client or participant; or (B) to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or participant or prospective client or participant. (2) It shall be unlawful for any commodity trading advisor, associated person of a commodity trading advisor, commodity pool operator, or associated person of a commodity pool operator registered under this chapter to represent or imply in any manner whatsoever that such person has been sponsored, recommended, or approved, or that such person's abilities or qualifications have in any respect been passed upon, by the United States or any agency or officer thereof. This section shall not be construed to prohibit a statement that a person is registered under this chapter as a commodity trading advisor, associated person of a commodity trading advisor, commodity pool operator, or associated person of a commodity pool operator, if such statement is true in fact and if the effect of such registration is not misrepresented. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4o, as added Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 205(a), 88 Stat. 1399, and amended Sept. 30, 1978, Pub. L. 95-405, Sec. 10, 92 Stat. 870; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 214, 96 Stat. 2305.) -MISC1- AMENDMENTS 1983 - Par. (1). Pub. L. 97-444 made the antifraud prohibition applicable to an associated person of a commodity trading advisor or a commodity pool operator. Par. (2). Pub. L. 97-444 made the misrepresentation prohibition applicable to an associated person of a commodity training advisor or a commodity pool operator, authorized registration statements of such persons, and substituted 'such person' and 'such person's abilities' for 'he' before 'has been sponsored' and 'his abilities', respectively. 1978 - Par. (1). Pub. L. 95-405 struck out 'registered under this chapter' after 'pool operator'. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 13 of this title. ------DocID 9072 Document 40 of 2641------ -CITE- 7 USC Sec. 6p -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 6p. Standards and examinations -STATUTE- The Commission may specify by rules and regulations appropriate standards with respect to training, experience, and such other qualifications as the Commission finds necessary or desirable to insure the fitness of persons required to be registered with the Commission. In connection therewith, the Commission may prescribe by rules and regulations the adoption of written proficiency examinations to be given to applicants for registration and the establishment of reasonable fees to be charged to such applicants to cover the administration of such examinations. The Commission may further prescribe by rules and regulations that, in lieu of examinations administered by the Commission, futures associations registered under section 21 of this title or contract markets may adopt written proficiency examinations to be given to applicants for registration and charge reasonable fees to such applicants to cover the administration of such examinations. Notwithstanding any other provision of this section, the Commission may specify by rules and regulations such terms and conditions as it deems appropriate to protect the public interest wherein exception to any written proficiency examination shall be made with respect to individuals who have demonstrated, through training and experience, the degree of proficiency and skill necessary to protect the interests of customers, clients, pool participants, or other members of the public with whom such individuals deal. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 4p, as added Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 206, 88 Stat. 1400, and amended Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 215, 96 Stat. 2305.) -MISC1- AMENDMENTS 1983 - Pub. L. 97-444 substituted 'persons required to be registered with the Commission' for 'futures commission merchants, floor brokers, and those persons associated with futures commission merchants or floor brokers' in first sentence, 'customers, clients, pool participants, or other members of the public with whom such individuals deal' for 'the customers of futures commission merchants and floor brokers' in last sentence, and in second and third sentences struck out 'as futures commission merchants, floor brokers, and those persons associated with futures commission merchants or floor brokers,' after 'applicants for registration'. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. ------DocID 7116 Document 41 of 2641------ -CITE- 2 USC Sec. 61f-7 -EXPCITE- TITLE 2 CHAPTER 4 -HEAD- Sec. 61f-7. Abolition of statutory positions in Office of Sergeant at Arms and Doorkeeper of Senate; authority to establish and fix compensation for positions -STATUTE- Effective October 1, 1981, all statutory positions in the Office of the Sergeant at Arms and Doorkeeper of the Senate (other than the positions of the Sergeant at Arms and Doorkeeper of the Senate, Deputy Sergeant at Arms and Doorkeeper, and Administrative Assistant) are abolished, and in lieu of the positions hereby abolished the Sergeant at Arms and Doorkeeper of the Senate is authorized to establish such number of positions as he deems appropriate and appoint and fix the compensation of employees to fill the positions so established; except that the annual rate of compensation payable to any employee appointed to fill any position established by the Sergeant at Arms and Doorkeeper of the Senate shall not, for any period of time, be in excess of $1,000 less than the annual rate of compensation of the Sergeant at Arms and Doorkeeper of the Senate for that period of time; and except that nothing in this section shall be construed to affect any position authorized by statute, if the compensation for such position is to be paid from the contingent fund of the Senate. -SOURCE- (Pub. L. 97-51, Sec. 116, Oct. 1, 1981, 95 Stat. 963.) -MISC1- INCREASES IN COMPENSATION Increases in compensation for Senate officers and employees under authority of the Federal Pay Comparability Act of 1970 (Pub. L. 91-656), see Salary Directives of President pro tempore of the Senate, set out as notes under section 60a-1 of this title. ------DocID 9074 Document 42 of 2641------ -CITE- 7 USC Sec. 7a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 7a. Duties of contract markets -STATUTE- Each contract market shall - (1) Bylaws, rules, etc.; furnishing copies to Commission Promptly furnish the Commission copies of all bylaws, rules, regulations, and resolutions made or issued by it or by the governing board thereof or any committee, and of all changes and proposed changes therein; (2) Access for inspection of books and records Keep all books, records, minutes, and journals of proceedings of such contract market, and its governing board, committees, subsidiaries, and affiliates in a manner that will clearly describe all matters discussed by such contract market, governing board, committees, subsidiaries and affiliates and reveal any action taken in such matters, and allow inspection at all times by any authorized representative of the Commission or United States Department of Justice of all such books, records, minutes, and journals of proceedings. Such books, records, minutes, and journals of proceedings shall be kept for a period of three years from the date thereof, or for a longer period if the Commission shall so direct; (3) Books and records of warehouses; keeping and inspection Require the operators of warehouses in which or out of which any commodity is deliverable on any contract for future delivery made on or subject to the rules of such contract market, to make such reports, keep such records, and permit such warehouse visitation as the Commission may prescribe. Such books and records shall be required to be kept for a period of three years from the date thereof, or for a longer period if the Commission shall so direct, and such books, records, and warehouses shall be open at all times to inspection by any representative of the Commission or United States Department of Justice; (4) Periods of delivery; provisions for When so directed by order of the Commission, provide for a period, after trading in contracts of sale of any commodity for future delivery in a delivery month has ceased, during which contracts of sale of such commodity for future delivery in such month may be satisfied by the delivery of the actual cash commodity. Whenever, after due notice and opportunity for hearing, the Commission finds that provision for such a period of delivery for any one or more commodities or markets would prevent or tend to prevent 'squeezes' and market congestion endangering price stability, it shall, by order, require such period of delivery (which shall be not less than three nor more than ten business days) applicable to such commodities and markets as it finds will prevent or tend to prevent such 'squeezes' and market congestion: Provided, however, That such order shall not apply to then existing contracts; (5) Notice of date of intended delivery Require the party making delivery of any commodity on any contract of sale of such commodity for future delivery to furnish the party obligated under the contract to accept delivery, written notice of the date of delivery at least one business day prior to such date of delivery. Whenever, after due notice and opportunity for hearing, the Commission finds that the giving of longer notice of delivery is necessary to prevent or diminish unfair practices in trading in any one or more commodities or markets, it shall by order require such longer notice of delivery (which shall be not more than ten business days) applicable to such commodities and markets as it finds will prevent or diminish such unfair practices: Provided, however, That such order shall not apply to then existing contracts; (6) United States standards; conformity of grades to Require that all contracts of sale of any commodity for future delivery on such contract market shall provide for the delivery thereunder of commodities of grades conforming to United States standards, if such standards shall have been officially promulgated and adopted by the Commission; (7) Warehouse receipts as satisfaction of futures contract Require that receipts issued under the United States Warehouse Act (7 U.S.C. 241 et seq.) shall be accepted in satisfaction of any futures contract, made on or subject to the rules of such contract market, without discrimination and notwithstanding that the warehouseman issuing such receipts is not also licensed as a warehouseman under the laws of any state or enjoys other or different privileges than under State law: Provided, however, That such receipts shall be for the kind, quality, and quantity of commodity specified in such contract and that the warehouse in which the commodity is stored meets such reasonable requirements as may be imposed by such contract market on other warehouses as to location, accessibility, and suitability for warehousing and delivery purposes: And provided further, That this paragraph shall apply only to futures contracts for those commodities which may be delivered from a warehouse subject to the United States Warehouse Act; (8) Enforcement and revocation of contract market rules Enforce all bylaws, rules, regulations, and resolutions, made or issued by it or by the governing board thereof or any committee, that (i) have been approved by the Commission pursuant to paragraph (12) of this section, (ii) have become effective under such paragraph, or (iii) must be enforced pursuant to any Commission rule, regulation, or order; and revoke and not enforce any bylaw, rule, regulation, or resolution, made, issued, or proposed by it or by the governing board thereof or any committee, which has been disapproved by the Commission; (9) Enforcement of bylaws, etc., providing minimum financial standards and related reporting requirements Enforce all bylaws, rules, regulations, and resolutions made or issued by it or by the governing board thereof or by any committee, which provide minimum financial standards and related reporting requirements for futures commission merchants who are members of such contract market, and which have been approved by the Commission; (10) Delivery points Permit the delivery of any commodity, on contracts of sale thereof for future delivery, of such grade or grades, at such point or points and at such quality and locational price differentials as will tend to prevent or diminish price manipulation, market congestion, or the abnormal movement of such commodity in interstate commerce. If the Commission after investigation finds that the rules and regulations adopted by a contract market permitting delivery of any commodity on contracts of sale thereof for future delivery, do not accomplish the objectives of this paragraph, then the Commission shall notify the contract market of its findings and afford the contract market an opportunity to make appropriate changes in such rules and regulations. If the contract market within seventy-five days of such notification fails to make the changes which in the opinion of the Commission are necessary to accomplish the objectives of this paragraph, then the Commission after granting the contract market an opportunity to be heard, may change or supplement such rules and regulations of the contract market to achieve the above objectives: Provided, That any order issued under this paragraph shall not apply to contracts of sale for future delivery in any months in which contracts are currently outstanding and open: And provided further, That no requirement for an additional delivery point or points shall be promulgated following hearings until the contract market affected has had notice and opportunity to file exceptions to the proposed order determining the location and number of such delivery point or points; (11) Settlement of customers' claims and grievances Provide a fair and equitable procedure through arbitration or otherwise (such as by delegation to a registered futures association having rules providing for such procedures) for the settlement of customers' claims and grievances against any member or employee thereof: Provided, That (i) the use of such procedure by a customer shall be voluntary and (ii) the term 'customer' as used in this paragraph shall not include another member of the contract market; and (12) Commission approval of bylaws, rules, regulations, and resolutions Except as otherwise provided in this paragraph, submit to the Commission for its prior approval all bylaws, rules, regulations, and resolutions ('rules') made or issued by such contract market, or by the governing board thereof or any committee thereof, that relate to terms and conditions in contracts of sale to be executed on or subject to the rules of such contract market, as such terms and conditions are defined by the Commission by rule or regulation, except those rules relating to the setting of levels of margin. Each contract market shall submit to the Commission all other rules (except those relating to the setting of levels of margin and except those that the Commission may specify by regulation) and may make such rules effective ten days after receipt of such submission by the Commission unless, within the ten-day period, the contract market requests review and approval thereof by the Commission or the Commission notifies such contract market in writing of its determination to review such rules for approval. The determination to review such rules for approval shall not be delegable to any employee of the Commission. At least thirty days before approving any rules of major economic significance, as determined by the Commission, the Commission shall publish a notice of such rules in the Federal Register. The Commission shall give interested persons an opportunity to participate in the approval process through the submission of written data, views, or arguments. The determination by the Commission whether any such rules are of major economic significance shall be final and not subject to judicial review. The Commission shall approve such rules if such rules are determined by the Commission not to be in violation of this chapter or the regulations of the Commission and the Commission shall disapprove, after appropriate notice and opportunity for hearing, any such rule which the Commission determines at any time to be in violation of the provisions of this chapter or the regulations of the Commission. If the Commission institutes proceedings to determine whether a rule should be disapproved pursuant to this paragraph, it shall provide the contract market with written notice of the proposed grounds for disapproval, including the specific sections of this chapter or the Commission's regulations which would be violated. At the conclusion of such proceedings, the Commission shall approve or disapprove such rule. Any disapproval shall specify the sections of this chapter or the Commission's regulations which the Commission determines such rule has violated or, if effective, would violate. If the Commission does not approve or institute disapproval proceedings with respect to any rule within one hundred and eighty days after receipt or within such longer period as the contract market may agree to, or if the Commission does not conclude a disapproval proceeding with respect to any rule within one year after receipt or within such longer period as the contract market may agree to, such rule may be made effective by the contract market until such time as the Commission disapproves such rule in accordance with this paragraph. The Commission shall specify the terms and conditions under which a contract market may, in an emergency as defined by the Commission, make a rule effective on a temporary basis without prior Commission approval, or without compliance with the ten-day notice requirement under this paragraph, or during any period of review by the Commission. In the event of such an emergency, as defined by the Commission, requiring immediate action, the contract market by a two-thirds vote of its governing board may immediately make effective a temporary rule dealing with such emergency if the contract market notifies the Commission of such action with a complete explanation of the emergency involved. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 5a, as added June 15, 1936, ch. 545, Sec. 7, 49 Stat. 1497, and amended Feb. 19, 1968, Pub. L. 90-258, Sec. 12, 82 Stat. 29; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (e), (f), title II, Sec. 208-210, title IV, Sec. 406, 407, 88 Stat. 1392, 1400, 1401, 1413; Sept. 30, 1978, Pub. L. 95-405, Sec. 11, 12, 92 Stat. 870, 871; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 216, 217(a), 96 Stat. 2306, 2307; Nov. 10, 1986, Pub. L. 99-641, title I, Sec. 110(2), 100 Stat. 3561.) -REFTEXT- REFERENCES IN TEXT The United States Warehouse Act, referred to in par. (7), is Part C of act Aug. 11, 1916, ch. 313, 39 Stat. 486, as amended, which is classified generally to chapter 10 (Sec. 241 et seq.) of this title. For complete classification of this Act to the Code, see section 241 of this title and Tables. -MISC2- AMENDMENTS 1986 - Par. (12). Pub. L. 99-641 substituted 'participate' for 'particpate'. 1983 - Par. (8). Pub. L. 97-444, Sec. 216(1), struck out after initial 'any committee,' the clause 'which relate to terms and conditions in contracts of sale to be executed on or subject to the rules of such contract market or relate to other trading requirements,'; incorporated existing text in provisions designated cl. (i); inserted cls. (ii) and (iii); and in revocation provision, struck out 'such' before 'bylaw' and substituted 'that' for 'which'. Par. (11). Pub. L. 97-444, Sec. 217(a), redesignated cl. (iv) as (ii) and substituted 'another member of the contract market' for 'a futures commission merchant or a floor broker'; and struck out clauses '(ii) the procedure shall not be applicable to any claim in excess of $15,000, (iii) the procedure shall not result in any compulsory payment except as agreed upon between the parties,'. Par. (12). Pub. L. 97-444, Sec. 216(2), amended par. (12) generally to reduce the types of contract market rules that require prior approval of the Commission before they may be implemented. 1978 - Par. (11). Pub. L. 95-405, Sec. 11, inserted '(such as by delegation to a registered futures association having rules providing for such procedures)' after 'arbitration or otherwise'. Par. (12). Pub. L. 95-405, Sec. 12, inserted '(or within sixty days of their receipt if the Commission determines them to be of major economic significance)' after 'thirty days of their receipt' and inserted provisions requiring that the Commission at least thirty days before approving any bylaws, rules, etc., of major economic significance publish such bylaws, rules, etc., in the Federal Register and that the Commission give interested persons an opportunity to participate in the approval process through the submission of written data, views, or arguments and making the determination of the Commission as to whether any such bylaws, rules, etc., are of major economic significance final and not subject to judicial review. 1974 - Par. (1). Pub. L. 93-463, Sec. 103(a), substituted 'Commission' for 'Secretary of Agriculture'. Par. (2). Pub. L. 93-463, Sec. 103(a), (f), substituted 'Commission' for 'United States Department of Agriculture' and 'Secretary of Agriculture'. Par. (3). Pub. L. 93-463, Sec. 103(a), (f), substituted 'Commission' for 'Secretary of Agriculture' and 'United States Department of Agriculture'. Pars. (4), (5). Pub. L. 93-463, Sec. 103(a), (e), substituted 'Commission' for 'Secretary of Agriculture' and 'it' for 'he'. Par. (6). Pub. L. 93-463, Sec. 406, inserted 'and adopted by the Commission' after 'officially promulgated'. Par. (7). Pub. L. 93-463, Sec. 208(a), inserted ': And provided further, That this paragraph shall apply only to futures contracts for those commodities which may be delivered from a warehouse subject to the United States Warehouse Act'. Par. (8). Pub. L. 93-463, Sec. 407, substituted 'been approved by the Commission pursuant to paragraph (12) of this section' for 'not been disapproved by the Secretary of Agriculture pursuant to paragraph (7) of section 12a of this title' and 'has been disapproved by the Commission' for 'has been so disapproved'. Par. (9). Pub. L. 93-463, Sec. 103(a), substituted 'Commission' for 'Secretary of Agriculture'. Par. (10). Pub. L. 93-463, Sec. 208(d), added par. (10). Par. (11). Pub. L. 93-463, Sec. 209, added par. (11). Par. (12). Pub. L. 93-463, Sec. 210, added par. (12). 1968 - Par. (2). Pub. L. 90-258, Sec. 12(a), required contract markets to keep their books and records of proceedings of the contract markets and their governing boards, committees, subsidiaries, and affiliates in a manner that will clearly describe all matters discussed and action taken. Pars. (8), (9). Pub. L. 90-258, Sec. 12(b), (c), added pars. (8) and (9). EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 7, 25 of this title. ------DocID 9075 Document 43 of 2641------ -CITE- 7 USC Sec. 7b -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 7b. Suspension or revocation of designation as 'contract market' -STATUTE- The failure or refusal of any board of trade to comply with any of the provisions of this chapter, or any of the rules, regulations, or orders of the Commission thereunder, shall be cause for suspending for a period not to exceed six months or revoking the designation of such board of trade as a 'contract market' in accordance with the procedure and subject to the judicial review provided in section 8 of this title. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 5b, as added June 15, 1936, ch. 545, Sec. 7, 49 Stat. 1498, and amended Feb. 19, 1968, Pub. L. 90-258, Sec. 13, 82 Stat. 30; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(b), 88 Stat. 1392.) -MISC1- AMENDMENTS 1974 - Pub. L. 93-463 substituted 'orders of the Commission' for 'orders of the Secretary of Agriculture or the Commission'. 1968 - Pub. L. 90-258 provided for suspension or revocation of designation of a contract market for failure of the market to enforce orders of the Secretary of Agriculture and rules, regulations, and orders of the Commission, respectively. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. ------DocID 9076 Document 44 of 2641------ -CITE- 7 USC Sec. 8 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 8. Application for designation as 'contract market'; time; suspension or revocation of designation; hearing; review by court of appeals -STATUTE- Any board of trade desiring to be designated a 'contract market' shall make application to the Commission for such designation and accompany the same with a showing that it complies with the conditions of section 7 of this title, and with a sufficient assurance that it will continue to comply with the requirements of such section 7. The Commission shall approve or deny an application for designation as a contract market within one year of the filing of the application. If the Commission notifies the board of trade that its application is materially incomplete and specifies the deficiencies in the application, the running of the one-year period shall be stayed from the time of such notification until the application is resubmitted in completed form: Provided, That the Commission shall have not less than sixty days to approve or deny the application from the time the application is resubmitted in completed form. If the Commission denies an application, it shall specify the grounds for the denial. In the event of a refusal to designate as a 'contract market' any board of trade that has made application therefor, such board of trade shall be afforded an opportunity for a hearing on the record before the Commission, with the right to appeal an adverse decision after such hearing to the court of appeals as provided for in other cases in paragraph (a) of this section. (a) The Commission is authorized to suspend for a period not to exceed six months or to revoke the designation of any board of trade as a 'contract market' upon a showing that such board of trade is not enforcing or has not enforced its rules of government made a condition of its designation as set forth in section 7 of this title or that such board of trade, or any director, officer, agent, or employee thereof, otherwise is violating or has violated any of the provisions of this chapter or any of the rules, regulations, or orders of the Commission thereunder. Such suspension or revocation shall only be after a notice to the officers of the board of trade affected and upon a hearing on the record: Provided, That such suspension or revocation shall be final and conclusive, unless within fifteen days after such suspension or revocation by the Commission such board of trade appeals to the court of appeals for the circuit in which it has its principal place of business, by filing with the clerk of such court a written petition praying that the order of the Commission be set aside or modified in the manner stated in the petition, together with a bond in such sum as the court may determine, conditioned that such board of trade will pay the costs of the proceedings if the court so directs. The clerk of the court in which such a petition is filed shall immediately cause a copy thereof to be delivered to the Commission and file in the court the record in such proceedings, as provided in section 2112 of title 28. The testimony and evidence taken or submitted before the Commission, duly filed as aforesaid as a part of the record, shall be considered by the court of appeals as the evidence in the case. Such a court may affirm or set aside the order of the Commission or may direct it to modify its order. No such order of the Commission shall be modified or set aside by the court of appeals unless it is shown by the board of trade that the order is unsupported by the weight of the evidence or was issued without due notice and a reasonable opportunity having been afforded to such board of trade for a hearing, or infringes the Constitution of the United States, or is beyond the jurisdiction of the Commission. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 6(a), 42 Stat. 1001; June 25, 1948, ch. 646, Sec. 32(a), 62 Stat. 991; May 24, 1949, ch. 139, Sec. 127, 63 Stat. 107; Aug. 28, 1958, Pub. L. 85-791, Sec. 7(a), 72 Stat. 944; Feb. 19, 1968, Pub. L. 90-258, Sec. 14, 15, 82 Stat. 30; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a)-(c), 88 Stat. 1392; Sept. 30, 1978, Pub. L. 95-405, Sec. 13(1), (2), 92 Stat. 871; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 218, 96 Stat. 2308; Nov. 8, 1984, Pub. L. 98-620, title IV, Sec. 402(3), 98 Stat. 3357.) -COD- CODIFICATION Section is composed of first par. and par. (a) of section 6 of act Sept. 21, 1922. Par. (b) of such section 6 is classified to sections 9 and 15 of this title. Pars. (c) and (d) of section 6 of act Sept. 21, 1922, are classified to sections 13b and 9a of this title, respectively. -MISC3- AMENDMENTS 1984 - Par. (a). Pub. L. 98-620 struck out provisions requiring proceedings in such cases in the court of appeals to be made a preferred cause and expedited in every way. 1983 - Pub. L. 97-444 required approval or denial of application within one year period of filing of application, stay of such period following notification that application was incomplete and deficient until resubmission of application, minimum period prior to acting upon resubmitted application, and specification of grounds for denial of application. 1978 - Pub. L. 95-405, Sec. 13(1), in provisions before par. (a) inserted 'on the record' after 'opportunity for a hearing'. Par. (a). Pub. L. 95-405, Sec. 13(2), inserted 'on the record' after 'upon a hearing'. 1974 - Pub. L. 93-463, Sec. 103(a), substituted 'Commission' for 'Secretary of Agriculture' in first par. Par. (a). Pub. L. 93-463, Sec. 103(b), (c), substituted 'orders of the Commission thereunder' for 'orders of the Secretary of Agriculture or the Commission thereunder' and struck out 'the Secretary of Agriculture, who shall thereupon notify the other members of' after 'The clerk of the court in which such a petition is filed shall immediately cause a copy thereof to be delivered to'. 1968 - Pub. L. 90-258, Sec. 14, inserted provision affording any board of trade refused a contract market designation a hearing before the Commission with right to appeal in adverse decision to the court of appeals as provided for in par. (a) of this section at end of first par. Par. (a). Pub. L. 90-258, Sec. 15, struck out such parts both of first sentence and of proviso of last sentence as described the commission as made up of the Secretary of Agriculture, Secretary of Commerce, and Attorney General (covered in definition of 'Commission' in section 2 of this title, including representation of such officials by their designees), extended grounds for suspension or revocation of designation to include violations of any provisions of this chapter or rules, regulations, or orders of the Secretary of Agriculture or commission, required delivery of appeal petitions to Secretary of Agriculture rather than any member of the commission, who would notify the other members, and filing of commission records of proceedings on appeal by the Secretary of Agriculture and not the commission, struck out provisions describing Secretary of Agriculture as Chairman (now found in section 2 of this title), superseded such part of proviso of seventh sentence as authorized appeals to the commission from Secretary of Agriculture's refusal of a contract market designation by provisions of first par. of this section, and struck out such other part as made decision of court on appeal from commission final and binding on the parties. 1958 - Pub. L. 85-791 substituted 'thereupon file in the court the record in such proceedings, as provided in section 2112 of title 28' for 'forthwith prepare, certify, and file in the court a full and accurate transcript of the record in such proceedings including the notice to the board of trade, a copy of the charges, the evidence, and the report and order' in third notice, and struck out 'certified and' after 'duly' in fourth sentence. -CHANGE- CHANGE OF NAME Act June 25, 1948, as amended by act May 24, 1949, substituted 'court of appeals' for 'circuit court of appeals' wherever appearing in this section. -MISC4- EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98-620 not applicable to cases pending on Nov. 8, 1984, see section 403 of Pub. L. 98-620, set out as an Effective Date note under section 1657 of Title 28, Judiciary and Judicial Procedure. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. -CROSS- CROSS REFERENCES Cease and desist orders, review of, see section 13a of this title. Orders with respect to exclusion from boards of trade of cooperative associations and corporations, review of under the procedure provided in this section, see section 10a of this title. Suspension or revocation of designation as contract market in accordance with procedure and subject to judicial review provided in this section, see section 7b of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2a, 7b, 10a, 12, 13a of this title. ------DocID 9077 Document 45 of 2641------ -CITE- 7 USC Sec. 9 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 9. Exclusion of persons from privilege of 'contract markets'; procedure for exclusion; review by court of appeals -STATUTE- If the Commission has reason to believe that any person (other than a contract market) is manipulating or attempting to manipulate or has manipulated or attempted to manipulate the market price of any commodity, in interstate commerce, or for future delivery on or subject to the rules of any contract market, or has willfully made any false or misleading statement of a material fact in any registration application or any report filed with the Commission under this chapter, or willfully omitted to state in any such application or report any material fact which is required to be stated therein, or otherwise is violating or has violated any of the provisions of this chapter or of the rules, regulations, or orders of the Commission thereunder, it may serve upon such person a complaint stating its charges in that respect, which complaint shall have attached or shall contain therein a notice of hearing, specifying a day and place not less than three days after the service thereof, requiring such person to show cause why an order should not be made prohibiting him from trading on or subject to the rules of any contract market, and directing that all contract markets refuse all trading privileges to such person, until further notice of the Commission, and to show cause why the registration of such person, if registered with the Commission in any capacity, should not be suspended or revoked. Said hearing may be held in Washington, District of Columbia, or elsewhere, before the Commission, or before an Administrative Law Judge designated by the Commission, which Administrative Law Judge shall cause all evidence to be reduced to writing and forthwith transmit the same to the Commission. Upon evidence received, the Commission may prohibit such person from trading on or subject to the rules of any contract market and require all contract markets to refuse such person all trading privileges thereon for such period as may be specified in the order, and, if such person is registered with the Commission in any capacity, may suspend, for a period not to exceed six months, or revoke, the registration of such person, and may assess such person a civil penalty of not more than $100,000 for each such violation. Notice of such order shall be sent forthwith by registered mail or by certified mail or delivered to the offending person and to the governing boards of said contract markets. After the issuance of the order by the Commission, the person against whom it is issued may obtain a review of such order or such other equitable relief as to the court may seem just by filing in the United States court of appeals of the circuit in which the petitioner is doing business, or in the case of an order denying registration, the circuit in which the petitioner's principal place of business listed on petitioner's application for registration is located, a written petition, within fifteen days after the notice of such order is given to the offending person praying that the order of the Commission be set aside. A copy of such petition shall be forthwith transmitted by the clerk of the court to the Commission and thereupon the Commission shall file in the court the record theretofore made, as provided in section 2112 of title 28. Upon the filing of the petition the court shall have jurisdiction to affirm, to set aside, or modify the order of the Commission, and the findings of the Commission as to the facts, if supported by the weight of evidence, shall in like manner be conclusive. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 6(b), 42 Stat. 1002; June 15, 1936, ch. 545, Sec. 8(a)-(d), (h)-(j), 49 Stat. 1498, 1499; June 25, 1948, ch. 646, Sec. 32(a), 62 Stat. 991; May 24, 1949, ch. 139, Sec. 127, 63 Stat. 107; Aug. 28, 1958, Pub. L. 85-791, Sec. 7(b), 72 Stat. 944; June 11, 1960, Pub. L. 86-507, Sec. 1(2), 74 Stat. 200; Feb. 19, 1968, Pub. L. 90-258, Sec. 16, 82 Stat. 30; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (b), (e), title II, Sec. 204(b), 205(b), 212(a)(1), (2), title IV, Sec. 408, 88 Stat. 1392, 1397, 1400, 1403, 1414; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 219, 96 Stat. 2308.) -COD- CODIFICATION Section is composed of part of par. (b) of section 6 of act Sept. 21, 1922. A further provision of par. (b) is contained in section 15 of this title. First par. and par. (a) of section 6 are set out as section 8 of this title. Pars. (c) and (d) of section 6 are set out as sections 13b and 9a of this title, respectively. -MISC3- AMENDMENTS 1983 - Pub. L. 97-444 struck out 'as futures commission merchant or any person associated therewith as described in section 6k of this title, commodity trading advisor, commodity pool operator, or as floor broker hereunder' after 'such person, if registered' and also after 'such person is registered' and inserted ', or in the case of an order denying registration, the circuit in which the petitioner's principal place of business listed on petitioner's application for registration is located,' after 'court of appeals of the circuit in which the petitioner is doing business'. 1974 - Pub. L. 93-463 substituted 'Commission' for 'Secretary of Agriculture' and 'Secretary of Agriculture or the commission', substituted 'it' for 'he', inserted 'or any person associated therewith as described in section 6k of this title,' after 'futures commission merchant' wherever appearing, inserted 'commodity trading advisor, commodity pool operator' before 'or as floor broker' wherever appearing, inserted provision for the assessment of civil penalties of not more than $100,000 for each violation, set a limit of fifteen days after the issuance of an order within which period the person against whom the order was issued must file with the court of appeals his petition that the order be set aside, and substituted 'an Administrative Law Judge' and 'Administrative Law Judge' for 'a referee' and 'referee', respectively. 1968 - Pub. L. 90-258 provided for denial of trading privileges to persons other than contract markets and suspension or revocation of registration of futures commission merchants and floor brokers, who are manipulating or have attempted to manipulate prices, for willful, material, misstatements in, or omissions from, reports or registration statements, and for violations of orders of Secretary of Agriculture or commission, and authorized the Secretary to prohibit such persons from trading on or subject to rules of any contract market. 1960 - Pub. L. 86-507 inserted 'or by certified mail' after 'registered mail'. 1958 - Pub. L. 85-791 substituted 'transmitted by the clerk of the court to the Secretary of Agriculture and thereupon the Secretary of Agriculture shall file in the court the record theretofore made, as provided in section 2112 of Title 28' for 'served upon the Secretary of Agriculture by delivering such copy to him and thereupon the Secretary of Agriculture shall forthwith certify and file in the court a transcript of the record theretofore made, including evidence received' in seventh sentence, and substituted 'petition' for 'transcript' in eighth sentence. 1936 - Act June 15, 1936, among other changes, amended section by inserting provisions relating to the service of complaints and penalties for violations of this chapter. -CHANGE- CHANGE OF NAME Act June 25, 1948, as amended by act May 24, 1949, substituted 'court of appeals' for 'circuit court of appeals' wherever appearing in this section. -MISC4- EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1936 AMENDMENT Amendment by act June 15, 1936, effective 90 days after June 15, 1936, see section 13 of act June 15, 1936, set out as a note under section 1 of this title. -CROSS- CROSS REFERENCES Conditional requirements for designation of board of trade as 'contract market', see section 7 of this title. Suspension or revocation of registration as futures commission merchant for accepting orders from person denied trading privileges pursuant to order under provisions of this section, see section 12a of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2a, 6k, 7, 9a, 12, 12a, 13b, 18, 21 of this title. ------DocID 9078 Document 46 of 2641------ -CITE- 7 USC Sec. 9a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 9a. Assessment of money penalties -STATUTE- In determining the amount of the money penalty assessed under section 9 of this title, the Commission shall consider, in the case of a person whose primary business involves the use of the commodity futures market - the appropriateness of such penalty to the size of the business of the person charged, the extent of such person's ability to continue in business, and the gravity of the violation; and in the case of a person whose primary business does not involve the use of the commodity futures market - the appropriateness of such penalty to the net worth of the person charged, and the gravity of the violation. If the offending person upon whom such penalty is imposed, after the lapse of the period allowed for appeal or after the affirmance of such penalty, shall fail to pay such penalty the Commission shall refer the matter to the Attorney General who shall recover such penalty by action in the appropriate United States district court. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 6(d), as added Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 212(a)(3), 88 Stat. 1403.) -COD- CODIFICATION Section is composed of par. (d) of section 6 of act Sept. 21, 1922. The first par. and par. (a) of section 6 are classified to section 8 of this title. Par. (b) of section 6 is classified to sections 9 and 15 of this title. Par. (c) of section 6 is classified to section 13b of this title. -MISC3- EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. ------DocID 9079 Document 47 of 2641------ -CITE- 7 USC Sec. 10 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 10. Repealed. June 25, 1948, ch. 646, Sec. 39, 62 Stat. 992, eff. Sept. 1, 1948 -MISC1- Section, acts Sept. 21, 1922, ch. 369, Sec. 6(b), 42 Stat. 1001; June 15, 1936, ch. 545, Sec. 8(k), 49 Stat. 1499, related to review by Supreme Court on certiorari. See section 1254 of Title 28, Judiciary and Judicial Procedure. ------DocID 9080 Document 48 of 2641------ -CITE- 7 USC Sec. 10a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 10a. Cooperative associations and corporations, exclusion from board of trade; rules of board inapplicable to payment of compensation by association -STATUTE- (1) No board of trade which has been designated as a 'contract market' shall exclude from membership in, and all privileges on, such board of trade, any association or corporation engaged in cash commodity business having adequate financial responsibility which is organized under the cooperative laws of any State, or which has been recognized as a cooperative association of producers by the United States Government or by any agency thereof, if such association or corporation complies and agrees to comply with such terms and conditions as are or may be imposed lawfully upon other members of such board, and as are or may be imposed lawfully upon a cooperative association of producers engaged in cash commodity business, unless such board of trade is authorized by the commission to exclude such association or corporation from membership and privileges after hearing held upon at least three days' notice subsequent to the filing of complaint by the board of trade: Provided, however, That if any such association or corporation shall fail to meet its obligations with any established clearing house or clearing agency of any contract market, such association or corporation shall be ipso facto debarred from further trading on such contract market, except such trading as may be necessary to close open trades and to discharge existing contracts in accordance with the rules of such contract market applicable in such cases. Such commission may prescribe that such association or corporation shall have and retain membership and privileges, with or without imposing conditions, or it may permit such board of trade immediately to bar such association or corporation from membership and privileges. Any order of said commission entered hereunder shall be reviewable by the court of appeals for the circuit in which such association or corporation, or such board of trade, has its principal place of business, on written petition either of such association or corporation, or of such board of trade, under the procedure provided in section 8 of this title, but such order shall not be stayed by the court pending review. (2) No rule of any board of trade designated as a contract market shall forbid or be construed to forbid the payment of compensation on a commodity-unit basis, or otherwise, by any federated cooperative association to its regional member-associations for services rendered or to be rendered in connection with any organization work, educational activity, or procurement of patronage, provided no part of any such compensation is returned to patrons (whether members or nonmembers) of such cooperative association, or of its regional or local member-associations, otherwise than as a dividend on capital stock or as a patronage dividend out of the net earnings or surplus of such federated cooperative association. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 6a, as added June 15, 1936, ch. 545, Sec. 9, 49 Stat. 1499, and amended June 25, 1948, ch. 646, Sec. 32(a), 62 Stat. 991; May 24, 1949, ch. 139, Sec. 127, 63 Stat. 107.) -CHANGE- CHANGE OF NAME Act June 25, 1948, as amended by act May 24, 1949, substituted 'court of appeals' for 'circuit court of appeals' wherever appearing in this section. -MISC4- EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. ------DocID 9081 Document 49 of 2641------ -CITE- 7 USC Sec. 11 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 11. Vacation on request of designation as 'contract market'; redesignation -STATUTE- Any board of trade that has been designated a contract market in the manner provided in this chapter may have such designation vacated and set aside by giving notice in writing to the Commission requesting that its designation as a contract market be vacated, which notice shall be served at least ninety days prior to the date named therein as the date when the vacation of designation shall take effect. Upon receipt of such notice the Commission shall forthwith order the vacation of the designation of such board of trade as a contract market, effective upon the day named in the notice, and shall forthwith send a copy of the notice and its order to all other contract markets. From and after the date upon which the vacation became effective the said board of trade can thereafter be designated again a contract market by making application to the Commission in the manner in this chapter provided for an original application. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 7, 42 Stat. 1002; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (e), 88 Stat. 1392.) -MISC1- AMENDMENTS 1974 - Pub. L. 93-463 substituted 'Commission' for 'Secretary of Agriculture' and 'its order' for 'his order'. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. ------DocID 9082 Document 50 of 2641------ -CITE- 7 USC Sec. 12 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 12. Public disclosure -STATUTE- (a) Investigations respecting operations of boards of trade and others subject to this chapter; publication of results; restrictions For the efficient execution of the provisions of this chapter, and in order to provide information for the use of Congress, the Commission may make such investigations as it deems necessary to ascertain the facts regarding the operations of boards of trade and other persons subject to the provisions of this chapter. The Commission may publish from time to time the results of any such investigation and such general statistical information gathered therefrom as it deems of interest to the public: Provided, That except as otherwise specifically authorized in this chapter, the Commission may not publish data and information that would separately disclose the business transactions or market positions of any person and trade secrets or names of customers: Provided further, That the Commission may withhold from public disclosure any data or information concerning or obtained in connection with any pending investigation of any person. (b) Business matters; congressional, administrative, judicial, and bankruptcy proceedings The Commission may disclose publicly any data or information that would separately disclose the market positions, business transactions, trade secrets, or names of customers of any person when such disclosure is made in connection with a congressional proceeding, in an administrative or judicial proceeding brought under this chapter, in any receivership proceeding involving a receiver appointed in a judicial proceeding brought under this chapter, or in any bankruptcy proceeding in which the Commission has intervened or in which the Commission has the right to appear and be heard under title 11. (c) Reports respecting conduct of boards of trade or transactions of violators; contents The Commission may make or issue such reports as it deems necessary, or such opinions or orders as may be required under other provisions of law, relative to the conduct of any board of trade or to the transactions of any person found guilty of violating the provisions of this chapter or the rules, regulations, or orders of the Commission thereunder in proceedings brought under sections 8, 9 and 15 of this title. In any such report or opinion, the Commission may set forth the facts as to any actual transaction or any information referred to in subsection (b) of this section, if such facts or information have previously been disclosed publicly in connection with a congressional proceeding, or in an administrative or judicial proceeding brought under this chapter. (d) Investigations respecting marketing conditions of commodities and commodity products and byproducts; reports The Commission, upon its own initiative or in cooperation with existing governmental agencies, shall investigate the marketing conditions of commodities and commodity products and byproducts, including supply and demand for these commodities, cost to the consumer, and handling and transportation charges. It shall also compile and furnish to producers, consumers, and distributors, by means of regular or special reports, or by such other methods as it deems most effective, information respecting the commodity markets, together with information on supply, demand, prices, and other conditions in this and other countries that affect the markets. (e) Names and addresses of traders of boards of trade previously disclosed; disclosure to Congress and agencies or departments of States or foreign governments The Commission may disclose and make public, where such information has previously been disclosed publicly in accordance with the provisions of this section, the names and addresses of all traders on the boards of trade on the commodity markets with respect to whom the Commission has information, and any other information in the possession of the Commission relating to the amount of commodities purchased or sold by each such trader. Upon the request of any committee of either House of Congress, acting within the scope of its jurisdiction, the Commission shall furnish to such committee the names and addresses of all traders on such boards of trade with respect to whom the Commission has information, and any other information in the possession of the Commission relating to the amount of any commodity purchased or sold by each such trader. Upon the request of any department or agency of the Government of the United States, acting within the scope of its jurisdiction, the Commission may furnish to such department or agency any information in the possession of the Commission obtained in connection with the administration of this chapter. However, any information furnished under this subsection to any Federal department or agency shall not be disclosed by such department or agency except in any action or proceeding under the laws of the United States to which it, the Commission, or the United States is a party. Upon the request of any department or agency of any State or any political subdivision thereof, acting within the scope of its jurisdiction, or any department or agency of any foreign government or any political subdivision thereof, acting within the scope of its jurisdiction, the Commission may furnish to such department or agency any information in the possession of the Commission obtained in connection with the administration of this chapter. Any information furnished to any department or agency of any State or political subdivision thereof shall not be disclosed by such department or agency except in connection with an adjudicatory action or proceeding brought under this chapter or the laws of such State or political subdivision to which such State or political subdivision or any department or agency thereof is a party. The Commission shall not furnish any information to a department or agency of a foreign government or political subdivision thereof unless the Commission is satisfied that the information will not be disclosed by such department or agency except in connection with an adjudicatory action or proceeding brought under the laws of such foreign government or political subdivision to which such foreign government or political subdivision or any department or agency thereof is a party. (f) Compliance with subpena after notice to informant; congressional subpenas and requests for information excepted The Commission shall disclose information in its possession pursuant to a subpena or summons only if - (1) a copy of the subpena or summons has been mailed to the last known home or business address of the person who submitted the information that is the subject of the subpena or summons, if the address is known to the Commission, or, if such mailing would be unduly burdensome, the Commission provides other appropriate notice of the subpena or summons to such person, and (2) at least fourteen days have expired from the date of such mailing of the subpena or summons, or such other notice. This subsection shall not apply to congressional subpenas or congressional requests for information. (g) Requests for information by State agencies or subdivisions; volunteering of information by Commission The Commission shall provide any registration information maintained by the Commission on any registrant upon reasonable request made by any department or agency of any State or any political subdivision thereof. Whenever the Commission determines that such information may be appropriate for use by any department or agency of a State or political subdivision thereof, the Commission shall provide such information without request. (h) Annual report to Congress The Commission shall submit to Congress a written report within one hundred and twenty days after the end of each fiscal year detailing the operations of the Commission during such fiscal year. The Commission shall include in such report such information, data, and legislative recommendations as it deems advisable with respect to the administration of this chapter and its powers and functions under this chapter. (i) Review and audits by Comptroller General The Comptroller General of the United States shall conduct reviews and audits of the Commission and make reports thereon. For the purpose of conducting such reviews and audits, the Comptroller General shall be furnished such information regarding the powers, duties, organizations, transactions, operations, and activities of the Commission as the Comptroller General may require and the Comptroller General and the duly authorized representatives of the Comptroller General shall, for the purpose of securing such information, have access to and the right to examine any books, documents, papers, or records of the Commission, except that in reports the Comptroller General shall not include data and information that would separately disclose the business transactions of any person and trade secrets or names of customers, although such data shall be provided upon request by any committee of either House of Congress acting within the scope of its jurisdiction. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 8, 42 Stat. 1003; June 15, 1936, ch. 545, Sec. 2, 49 Stat. 1491; Feb. 19, 1968, Pub. L. 90-258, Sec. 19(a), 82 Stat. 32; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (e), 88 Stat. 1392; Sept. 30, 1978, Pub. L. 95-405, Sec. 16, 92 Stat. 873; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 222, 96 Stat. 2309.) -COD- CODIFICATION Section is first paragraph of section 8 of act Sept. 21, 1922. Second, third, and fourth paragraphs of section 8 are classified to sections 12-1, 12-2, and 12-3 of this title, respectively. -MISC3- AMENDMENTS 1983 - Subsec. (a). Pub. L. 97-444, Sec. 222(1), inserted proviso authorizing Commission to withhold from public disclosure any data or information concerning or obtained in connection with any pending investigation of any person. Subsec. (b). Pub. L. 97-444, Sec. 222(2), inserted references to receivership proceedings involving a receiver appointed in a judicial proceeding brought under this chapter and to bankruptcy proceedings in which the Commission has intervened or in which Commission has right to appear and be heard under title 11. Subsec. (e). Pub. L. 97-444, Sec. 222(3), struck out 'of the Executive Branch' after 'Upon the request of any department or agency' and inserted 'Upon the request of any department or agency of any State or any political subdivision thereof, acting within the scope of its jurisdiction, or any department or agency of any foreign government or any political subdivision thereof, acting within the scope of its jurisdiction, the Commission may furnish to such department or agency any information in the possession of the Commission obtained in connection with the administration of this chapter. Any information furnished to any department or agency of any State or political subdivision thereof shall not be disclosed by such department or agency except in connection with an adjudicatory action or proceeding brought under this chapter or the laws of such State or political subdivision to which such State or political subdivision or any department or agency thereof is a party. The Commission shall not furnish any information to a department or agency of a foreign government or political subdivision thereof unless the Commission is satisfied that the information will not be disclosed by such department or agency except in connection with an adjudicatory action or proceeding brought under the laws of such foreign government or political subdivision to which such foreign government or political subdivision or any department or agency thereof is a party.' Subsecs. (f), (g). Pub. L. 97-444, Sec. 222(5), added subsecs. (f) and (g). Former subsecs. (f) and (g) were redesignated (h) and (i), respectively. Subsecs. (h), (i). Pub. L. 97-444, Sec. 222(4), redesignated former subsecs. (f) and (g) as (h) and (i), respectively. 1978 - Pub. L. 95-405 consolidated under this section provisions formerly contained in this section and sections 12-1, 12-2, and 12-3 of this title, generally revised provisions thus consolidated to clarify and expand disclosure to public of traders and their positions on boards of trade, and divided provisions thus consolidated and revised into subsecs. (a) to (g). 1974 - Pub. L. 93-463 substituted 'Commission' for 'Secretary of Agriculture', 'it' for 'he', 'its' for 'his', and 'It' for 'He'. 1968 - Pub. L. 90-258 authorized investigations to ascertain facts regarding operations of other persons subject to any provisions of this chapter. 1936 - Act June 15, 1936, substituted 'commodity' for 'grain' wherever appearing. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1936 AMENDMENT Amendment by act June 15, 1936, effective 90 days after June 15, 1936, see section 13 of act June 15, 1936, set out as a note under section 1 of this title. -CROSS- CROSS REFERENCES Publication of harmful acts notwithstanding the provisions of this section, see section 12a of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 12a, 20 of this title. ------DocID 9083 Document 51 of 2641------ -CITE- 7 USC Sec. 12-1 to 12-3 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 12-1 to 12-3. Omitted -COD- CODIFICATION Sections 12-1 to 12-3 comprised the second, third, and fourth paragraphs, respectively, of section 8 of the Commodity Exchange Act, Sept. 21, 1922, ch. 369, Sec. 8, 42 Stat. 1003. Such section 8 was amended generally by Pub. L. 95-405, Sec. 16, Sept. 30, 1978, 92 Stat. 873, and is classified in its entirety to section 12 of this title. Section 12-1, as added Dec. 19, 1947, ch. 523, 61 Stat. 941, and amended Feb. 19, 1968, Pub. L. 90-258, Sec. 19(b), 82 Stat. 32; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (e), (f), 88 Stat. 1392, related to disclosure of names of traders on the commodity markets by Commission. See section 12(e) of this title. Section 12-2, as added Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 105, 88 Stat. 1392, required an annual report to Congress. See section 12(h) of this title. Section 12-3, as added Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 105, 88 Stat. 1392, related to reviews and audits by the Comptroller General. See section 12(i) of this title. ------DocID 9084 Document 52 of 2641------ -CITE- 7 USC Sec. 12a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 12a. Registration of commodity dealers and associated persons; regulation of contract markets -STATUTE- The Commission is authorized - (1) to register futures commission merchants, associated persons of futures commission merchants, introducing brokers, associated persons of introducing brokers, commodity trading advisors, associated persons of commodity trading advisors, commodity pool operators, associated persons of commodity pool operators, and floor brokers upon application in accordance with rules and regulations and in the form and manner to be prescribed by the Commission, which may require the applicant, and such persons associated with the applicant as the Commission may specify, to be fingerprinted and to submit, or cause to be submitted, such fingerprints to the Attorney General for identification and appropriate processing, and in connection therewith to fix and establish from time to time reasonable fees and charges for registrations and renewals thereof: Provided, That notwithstanding any provision of this chapter, the Commission may grant a temporary license to any applicant for registration with the Commission pursuant to such rules, regulations, or orders as the Commission may adopt, except that the term of any such temporary license shall not exceed six months from the date of its issuance; (2) upon notice, but without a hearing and pursuant to such rules, regulations, or orders as the Commission may adopt, to refuse to register, to register conditionally, or to suspend or place restrictions upon the registration of, any person and with such a hearing as may be appropriate to revoke the registration of any person - (A) if a prior registration of such person in any capacity has been suspended (and the period of such suspension has not expired) or has been revoked; (B) if registration of such person in any capacity has been refused under the provisions of paragraph (3) of this section within five years preceding the filing of the application for registration or at any time thereafter; (C) if such person is permanently or temporarily enjoined by order, judgment, or decree of any court of competent jurisdiction (except that registration may not be revoked solely on the basis of such temporary order, judgment, or decree), including an order entered pursuant to an agreement of settlement to which the Commission or any Federal or State agency or other governmental body is a party, from (i) acting as a futures commission merchant, introducing broker, floor broker, commodity trading advisor, commodity pool operator, associated person of any registrant under this chapter, securities broker, securities dealer, municipal securities broker, municipal securities dealer, transfer agent, clearing agency, securities information processor, investment adviser, investment company, or affiliated person or employee of any of the foregoing or (ii) engaging in or continuing any activity involving any transaction in or advice concerning contracts of sale of a commodity for future delivery, concerning matters subject to Commission regulation under section 6c or 23 of this title, or concerning securities; (D) if such person has been convicted within ten years preceding the filing of the application for registration or at any time thereafter of any felony that (i) involves any transactions or advice concerning any contract of sale of a commodity for future delivery, or any activity subject to Commission regulation under section 6c or 23 of this title, or concerning a security, (ii) arises out of the conduct of the business of a futures commission merchant, introducing broker, floor broker, commodity trading advisor, commodity pool operator, associated person of any registrant under this chapter, securities broker, securities dealer, municipal securities broker, municipal securities dealer, transfer agent, clearing agency, securities information processor, investment adviser, investment company, or an affiliated person or employee of any of the foregoing, (iii) involves embezzlement, theft, extortion, fraud, fraudulent conversion, misappropriation of funds, securities or property, forgery, counterfeiting, false pretenses, bribery, or gambling, or (iv) involves the violation of section 152, 1341, 1342, or 1343, or chapter 25, 47, 95, or 96 of title 18; (E) if such person, within ten years preceding the filing of the application or at any time thereafter, has been found by any court of competent jurisdiction, by the Commission or any Federal or State agency or other governmental body, or by agreement of settlement to which the Commission or any Federal or State agency or other governmental body is a party, (i) to have violated any provision of this chapter, the Securities Act of 1933 (15 U.S.C. 77a et seq.), the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), the Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et seq.), the Trust Indenture Act of 1939 (15 U.S.C. 77aaa et seq.), the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.), the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), the Securities Investors (FOOTNOTE 1) Protection Act of 1970 (15 U.S.C. 78aaa et seq.), the Foreign Corrupt Practices Act of 1977, or any similar statute of a State or foreign jurisdiction, or any rule, regulation, or order under any such statutes, or the rules of the Municipal Securities Rulemaking Board where such violation involves embezzlement, theft, extortion, fraud, fraudulent conversion, misappropriation of funds, securities or property, forgery, counterfeiting, false pretenses, bribery, or gambling, or (ii) to have willfully aided, abetted, counseled, commanded, induced, or procured such violation by any other person; (FOOTNOTE 1) So in original. Probably should be 'Investor'. (F) if such person is subject to an outstanding order of the Commission denying trading privileges on any contract market to such person, denying, suspending, or revoking such person's membership in any contract market or registered futures association, or barring or suspending such person from being associated with a registrant under this chapter or with a member of a contract market or with a member of a registered futures association; (G) if, as to any of the matters set forth in subparagraphs (A) through (F) of this paragraph, such person willfully made any material false or misleading statement or omitted to state any material fact in such person's application; or (H) if refusal, suspension, or revocation of the registration of any principal of such person would be warranted because of a statutory disqualification listed in this paragraph: Provided, That such person may appeal from a decision to refuse registration, condition registration, suspend, revoke or to place restrictions upon registration made pursuant to the provisions of this paragraph in the manner provided in section 9 of this title; and Provided, further, That for the purposes of paragraphs (2) and (3) of this section, 'principal' shall mean, if the person is a partnership, any general partner or, if the person is a corporation, any officer, director, or beneficial owner of at least 10 per centum of the voting shares of the corporation, and any other person that the Commission by rule, regulation, or order determines has the power, directly or indirectly, through agreement or otherwise, to exercise a controlling influence over the activities of such person which are subject to regulation by the Commission; (3) to refuse to register or to register conditionally any person, if it is found, after opportunity for hearing, that - (A) such person has been found by the Commission or by any court of competent jurisdiction to have violated, or has consented to findings of a violation of, any provision of this chapter, or any rule, regulation, or order thereunder (other than a violation set forth in paragraph (2) of this section), or to have willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person of any such provision; (B) such person has been found by any court of competent jurisdiction or by any Federal or State agency or other governmental body, or by agreement of settlement to which any Federal or State agency or other governmental body is a party, (i) to have violated any provision of the Securities Act of 1933 (15 U.S.C. 77a et seq.), the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), the Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et seq.), the Trust Indenture Act of 1939 (15 U.S.C. 77aaa et seq.), the Investment Advisers Act of 1940 (15 U.S.C. 80b-1 et seq.), the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), the Securities Investors (FOOTNOTE 2) Protection Act of 1970 (15 U.S.C. 78aaa et seq.), the Foreign Corrupt Practices Act of 1977, or any similar statute of a State or foreign jurisdiction, or any rule, regulation, or order under any such statutes, or the rules of the Municipal Securities Rulemaking Board or (ii) to have willfully aided, abetted, counseled, commanded, induced, or procured such violation by any other person; (FOOTNOTE 2) So in original. Probably should be 'Investor'. (C) such person failed reasonably to supervise another person, who is subject to such person's supervision, with a view to preventing violations of this chapter, or of any of the statutes set forth in subparagraph (B) of this paragraph, or of any of the rules, regulations, or orders thereunder, and the person subject to supervision committed such a violation: Provided, That no person shall be deemed to have failed reasonably to supervise another person, within the meaning of this subparagraph if (i) there have been established procedures, and a system for applying such procedures, which would reasonably be expected to prevent and detect, insofar as practicable, any such violation by such other person and (ii) such person has reasonably discharged the duties and obligations incumbent upon that person, as supervisor, by reason of such procedures and system, without reasonable cause to believe that such procedures and system were not being complied with; (D) such person was convicted of a felony other than a felony of the type specified in paragraph (2)(D) of this section within ten years preceding the filing of the application or at any time thereafter, or was convicted of a felony, including a felony of the type specified in paragraph (2)(D) of this section, more than ten years preceding the filing of the application; (E) such person was convicted within ten years preceding the filing of the application for registration or at any time thereafter of any misdemeanor which (i) involves any transaction or advice concerning any contract of sale of a commodity for future delivery or any activity subject to Commission regulation under section 6c or 23 of this title or concerning a security, (ii) arises out of the conduct of the business of a futures commission merchant, introducing broker, floor broker, commodity trading advisor, commodity pool operator, associated person of any registrant under this chapter, securities broker, securities dealer, municipal securities broker, municipal securities dealer, transfer agent, clearing agency, securities information processor, investment adviser, investment company, or an affiliated person or employee of any of the foregoing, (iii) involves embezzlement, theft, extortion, fraud, fraudulent conversion, misappropriation of funds, securities or property, forgery, counterfeiting, false pretenses, bribery, or gambling, (iv) involves the violation of section 152, 1341, 1342, or 1343 or chapter 25, 47, 95, or 96 of title 18; (F) such person was debarred by any agency of the United States from contracting with the United States; (G) such person willfully made any material false or misleading statement or willfully omitted to state any material fact in such person's application, in any report required to be filed with the Commission by this chapter or the regulations thereunder, or in any proceeding before the Commission; (H) such person has pleaded nolo contendere to criminal charges of felonious conduct, or has been convicted in a State court or in a foreign court of conduct which would constitute a felony under Federal law if the offense had been committed under Federal jurisdiction; (I) in the case of an applicant for registration in any capacity for which there are minimum financial requirements prescribed under this chapter or under the rules or regulations of the Commission, such person has not established that such person meets such minimum financial requirements; (J) such person is subject to an outstanding order denying, suspending, or expelling such person from membership in a contract market, a registered futures association, or any other self-regulatory organization, or barring or suspending such person from being associated with any member or members of such contract market, association, or self-regulatory organization; (K) such person has been found by any court of competent jurisdiction or by any Federal or State agency or other governmental body, or by agreement of settlement to which any Federal or State agency or other governmental body is a party, (i) to have violated any statute or any rule, regulation, or order thereunder which involves embezzlement, theft, extortion, fraud, fraudulent conversion, misappropriation of funds, securities or property, forgery, counterfeiting, false pretenses, bribery, or gambling or (ii) to have willfully aided, abetted, counseled, commanded, induced or procured such violation by any other person; (L) such person has associated with such person any other person and knows, or in the exercise of reasonable care should know, of facts regarding such other person that are set forth as statutory disqualifications in paragraph (2) of this section, unless such person has notified the Commission of such facts and the Commission has determined that such other person should be registered or temporarily licensed; (M) there is other good cause; or (N) any principal, as defined in paragraph (2) of this section, of such person has been or could be refused registration: Provided, That pending final determination under this paragraph, registration shall not be granted: Provided further, That such person may appeal from a decision to refuse registration or to condition registration made pursuant to this paragraph in the manner provided in section 9 of this title; (4) in accordance with the procedure provided for in section 9 of this title, to suspend, revoke, or place restrictions upon the registration of any person registered under this chapter if cause exists under paragraph (3) of this section which would warrant a refusal of registration of such person, and to suspend or revoke the registration of any futures commission merchant or introducing broker who shall knowingly accept any order for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market from any person if such person has been denied trading privileges on any contract market by order of the Commission under section 9 of this title and the period of denial specified in such order shall not have expired: Provided, That such person may appeal from a decision to suspend, revoke, or place restrictions upon registration made pursuant to this paragraph in the manner provided in section 9 of this title; (5) to make and promulgate such rules and regulations as, in the judgment of the Commission, are reasonably necessary to effectuate any of the provisions or to accomplish any of the purposes of this chapter; and (6) to communicate to the proper committee or officer of any contract market, registered futures association, or self-regulatory organization as defined in section 3(a)(26) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)), notwithstanding the provisions of section 12 of this title, the full facts concerning any transaction or market operation, including the names of parties thereto, which in the judgment of the Commission disrupts or tends to disrupt any market or is otherwise harmful or against the best interests of producers, consumers, or investors, or which is necessary or appropriate to effectuate the purposes of this chapter: Provided, That any information furnished by the Commission under this paragraph shall not be disclosed by such contract market, registered futures association, or self-regulatory organization except in any self-regulatory action or proceeding; (7) to alter or supplement the rules of a contract market insofar as necessary or appropriate by rule or regulation or by order, if after making the appropriate request in writing to a contract market that such contract market effect on its own behalf specified changes in its rules and practices, and after appropriate notice and opportunity for hearing, the Commission determines that such contract market has not made the changes so required, and that such changes are necessary or appropriate for the protection of persons producing, handling, processing, or consuming any commodity traded for future delivery on such contract market, or the product or byproduct thereof, or for the protection of traders or to insure fair dealing in commodities traded for future delivery on such contract market. Such rules, regulations, or orders may specify changes with respect to such matters as: (A) terms or conditions in contracts of sale to be executed on or subject to the rules of such contract market; (B) the form or manner of execution of purchases and sales for future delivery; (C) other trading requirements, excepting the setting of levels of margin; (D) safeguards with respect to the financial responsibility of members; (E) the manner, method, and place of soliciting business, including the content of such solicitations; and (F) the form and manner of handling, recording, and accounting for customers' orders, transactions, and accounts; (8) to make and promulgate such rules and regulations with respect to those persons registered under this chapter, who are not members of a contract market, as in the judgment of the Commission are reasonably necessary to protect the public interest and promote just and equitable principles of trade, including but not limited to the manner, method, and place of soliciting business, including the content of such solicitation; (9) to direct the contract market, whenever it has reason to believe that an emergency exists, to take such action as in the Commission's judgment is necessary to maintain or restore orderly trading in or liquidation of any futures contract, including, but not limited to, the setting of temporary emergency margin levels on any futures contract, and the fixing of limits that may apply to a market position acquired in good faith prior to the effective date of the Commission's action. The term 'emergency' as used herein shall mean, in addition to threatened or actual market manipulations and corners, any act of the United States or a foreign government affecting a commodity or any other major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for such commodity. Any action taken by the Commission under this paragraph shall be subject to review only in the United States Court of Appeals for the circuit in which the party seeking review resides or has its principal place of business, or in the United States Court of Appeals for the District of Columbia Circuit. Such review shall be based upon an examination of all the information before the Commission at the time the determination was made. The court reviewing the Commission's action shall not enter a stay or order of mandamus unless it has determined, after notice and hearing before a panel of the court, that the agency action complained of was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. Nothing herein shall be deemed to limit the meaning or interpretation given by a contract market to the terms 'market emergency', 'emergency', or equivalent language in its own bylaws, rules, regulations, or resolutions; and (10) to authorize any person to perform any portion of the registration functions under this chapter, in accordance with rules, notwithstanding any other provision of law, adopted by such person and submitted to the Commission for approval or, if applicable, for review pursuant to section 21(j) of this title, and subject to the provisions of this chapter applicable to registrations granted by the Commission. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 8a, as added June 15, 1936, ch. 545, Sec. 10, 49 Stat. 1500, and amended Aug. 5, 1955, ch. 574, 69 Stat. 535; Feb. 19, 1968, Pub. L. 90-258, Sec. 20-23, 82 Stat. 32, 33; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (b), (e), title II, Sec. 204(c), 205(c), 213-215, 88 Stat. 1392, 1397, 1400, 1404; Sept. 30, 1978, Pub. L. 95-405, Sec. 17, 92 Stat. 874; Jan. 11, 1983, Pub. L. 97-444, title I, Sec. 104, title II, Sec. 223-225, 96 Stat. 2297, 2310-2315.) -REFTEXT- REFERENCES IN TEXT The Securities Act of 1933, referred to in pars. (2)(E) and (3)(B), is title I of act May 27, 1933, ch. 38, 48 Stat. 74, as amended, which is classified generally to subchapter I (Sec. 77a et seq.) of chapter 2A of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 77a of Title 15 and Tables. The Securities Exchange Act of 1934, referred to in pars. (2)(E) and (3)(B), is act June 6, 1934, ch. 404, 48 Stat. 881, as amended, which is classified principally to chapter 2B (Sec. 78a et seq.) of Title 15. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables. The Public Utility Holding Company Act of 1935, referred to in pars. (2)(E) and (3)(B), is title I of act Aug. 26, 1935, ch. 687, 49 Stat. 838, as amended, which is classified generally to chapter 2C (Sec. 79 et seq.) of Title 15. For complete classification of this Act to the Code, see section 79 of Title 15 and Tables. The Trust Indenture Act of 1939, referred to in pars. (2)(E) and (3)(B), is title III of act May 27, 1933, ch. 38, as added Aug. 3, 1939, ch. 411, 53 Stat. 1149, as amended, which is classified generally to subchapter III (Sec. 77aaa et seq.) of chapter 2A of Title 15. For complete classification of this Act to the Code, see section 77aaa of Title 15 and Tables. The Investment Advisers Act of 1940, referred to in pars. (2)(E) and (3)(B), is title II of act Aug. 22, 1940, ch. 686, 54 Stat. 847, as amended, which is classified generally to subchapter II (Sec. 80b-1 et seq.) of chapter 2D of Title 15. For complete classification of this Act to the Code, see section 80b-20 of Title 15 and Tables. The Investment Company Act of 1940, referred to in pars. (2)(E) and (3)(B), is title I of act Aug. 22, 1940, ch. 686, 54 Stat. 789, as amended, which is classified generally to subchapter I (Sec. 80a-1 et seq.) of chapter 2D of Title 15. For complete classification of this Act to the Code, see section 80a-51 of Title 15 and Tables. The Securities Investor Protection Act of 1970, referred to in pars. (2)(E) and (3)(B), is Pub. L. 91-598, Dec. 30, 1970, 84 Stat. 1636, as amended, which is classified generally to chapter 2B-1 (Sec. 78aaa et seq.) of Title 15. For complete classification of this Act to the Code, see section 78aaa of Title 15 and Tables. The Foreign Corrupt Practices Act of 1977, referred to in pars. (2)(E) and (3)(B), is title I of Pub. L. 95-213, Dec. 19, 1977, 91 Stat. 1494, as amended, which enacted sections 78dd-1 and 78dd-2 of Title 15, and amended sections 78m and 78ff of Title 15. For complete classification of this Act to the Code, see Short Title of 1977 Amendment note set out under section 78a of Title 15 and Tables. -MISC2- AMENDMENTS 1983 - Par. (1). Pub. L. 97-444, Sec. 223, substituted authorization for registration of 'associated persons of futures commission merchants' for 'and persons associated therewith as described in section 6k of this title'; authorized registration of introducing brokers, associated persons of introducing brokers, associated persons of commodity trading advisors and associated persons of commodity pool operators, substituted 'such persons' for 'any persons' before 'associated with the applicant', and authorized establishment of registration and renewal fees and charges and granting of temporary licenses for terms not exceeding six months from date of issuance. Par. (2). Pub. L. 97-444, Sec. 224(1), added par. (2) and struck out prior par. (2) which authorized Commission 'to refuse to register any person - '(A) if the prior registration of such person has been suspended (and the period of such suspension shall not have expired) or has been revoked; '(B) if it is found, after opportunity for hearing, that the applicant is unfit to engage in the business for which the application for registration is made, (i) because such applicant, or, if the applicant is a partnership, any general partner, or, if the applicant is a corporation, any officer or holder of more than 10 per centum of the stock, at any time engaged in any practice of the character prohibited by this chapter or was convicted of a felony in any State or Federal court, or was debarred by any agency of the United States from contracting with the United States, or the applicant willfully made any material false or misleading statement in his application or willfully omitted to state any material fact in connection with the application, or (ii) for other good cause shown; or '(C) in the case of an applicant for registration as futures commission merchant, if it is found after opportunity for hearing that the applicant has not established that he meets the minimum financial requirements under section 6f of this title: Provided, That pending final determination under subparagraph (B) or (C), registration shall not be granted: And provided further, That the applicant may appeal from the refusal of registration under subparagraph (B) or (C) in the manner provided in section 9 of this title; and'. Par. (3). Pub. L. 97-444, Sec. 224(3), added par. (3). Former par. (3) redesignated (4). Par. (4). Pub. L. 97-444, Sec. 224(2), (4), struck out par. (4) provision for establishment of registration and renewal fees and charges, covered in par. (1), redesignated par. (3) as (4), and in redesignated par. (4), authorized placing of restrictions on registrations, suspension or revocation of registration of an introducing broker and appeals from registration decisions made pursuant to this paragraph as provided in section 9 of this title, and substituted 'if cause exists under paragraph (3) of this section' for 'if cause exists under paragraph (2)(B) or (C) of this section'. Par. (6). Pub. L. 97-444, Sec. 104, authorized communication of full facts respecting transactions or market operations to registered futures associations and self-regulatory organizations, included concern for investors, provided for communications when necessary or appropriate to effectuate purposes of this chapter, and prohibited disclosure of furnished information except in self-regulatory actions or proceedings. Pars. (6) to (8). Pub. L. 97-444, Sec. 224(5), struck out 'and' at end of pars. (6), (7), and (8). Par. (9). Pub. L. 97-444, Sec. 225, authorized Commission to direct the contract market to take certain action, including, but not limited to, setting of temporary emergency margin levels on any futures contract, and fixing of limits that may apply to a market position acquired in good faith prior to the effective date of Commission's action and inserted provisions respecting judicial review. Par. (10). Pub. L. 97-444, Sec. 224(6), added par. (10). 1978 - Par. (1). Pub. L. 95-405, Sec. 17(1), inserted ', which may require the applicant, and any persons associated with the applicant as the Commission may specify, to be fingerprinted and to submit, or cause to be submitted, such fingerprints to the Attorney General for identification and appropriate processing' after 'by the Commission'. Par. (6). Pub. L. 95-405, Sec. 17(2), struck out 'and to publish' after 'any contract market'. 1974 - Pub. L. 93-463, Sec. 103(a), substituted 'Commission' for 'Secretary of Agriculture' in provisions preceding par. (1). Par. (1). Pub. L. 93-463, Sec. 103(a), 204(c), 205(c), substituted 'Commission' for 'Secretary of Agriculture', inserted 'and persons associated therewith as described in section 6k of this title,' after 'futures commission merchants', and inserted 'commodity trading advisors, commodity pool operators' before 'and floor brokers'. Pars. (3), (5), (6). Pub. L. 93-463, Sec. 103(a), substituted 'Commission' for 'Secretary of Agriculture'. Par. (7). Pub. L. 93-463, Sec. 103(b), (e), 213, substituted provisions covering the altering or supplementing of the rules of a contract market for provisions covering the disapproval of bylaws, rules, regulations, and resolutions made, issued, or proposed by a contract market and substituted 'Commission' for 'Secretary of Agriculture or the commission' and 'it' for 'he'. Par. (8). Pub. L. 93-463, Sec. 214, added par. (8). Par. (9). Pub. L. 93-463, Sec. 215, added par. (9). 1968 - Par. (2). Pub. L. 90-258, Sec. 20, designated existing provisions as subpar. (A), substituted 'if the prior registration of such person' for 'if such person has violated any of the provisions of this chapter or any of the rules or regulations promulgated by the Secretary of Agriculture hereunder for which the registration of such person' and added subpars. (B) and (C). Par. (3). Pub. L. 90-258, Sec. 21, authorized Secretary of Agriculture, in accordance with procedure provided for in section 9 of this title, to suspend or revoke the registration of any person registered under this chapter if cause exists under par. (2)(B) or (C) of this section which would warrant a refusal of registration of such person. Par. (4). Pub. L. 90-258, Sec. 22, struck out authorization for establishment of fees for copies of registration certificates. Par. (7). Pub. L. 90-258, Sec. 23, added par. (7). 1955 - Par. (4). Act Aug. 5, 1955, authorized Secretary to fix and establish reasonable fees for registrations and renewals, and struck out provisions which set the fee for each registration and renewal at not more than $10. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 4a, 6k, 21 of this title. ------DocID 9085 Document 53 of 2641------ -CITE- 7 USC Sec. 12b -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 12b. Trading ban violations; prohibition -STATUTE- It shall be unlawful for any person, against whom there is outstanding any order of the Commission prohibiting him from trading on or subject to the rules of any contract market, to make or cause to be made in contravention of such order, any contract for future delivery of any commodity, on or subject to the rules of any contract market. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 8b, as added Feb. 19, 1968, Pub. L. 90-258, Sec. 24, 82 Stat. 33, and amended Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), 88 Stat. 1392.) -MISC1- AMENDMENTS 1974 - Pub. L. 93-463 substituted 'Commission' for 'Secretary of Agriculture'. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463 see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE Section effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as an Effective Date of 1968 Amendment note under section 2 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 13 of this title. ------DocID 9086 Document 54 of 2641------ -CITE- 7 USC Sec. 12c -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 12c. Disciplinary actions; notice; review of action by Commission -STATUTE- (1)(A) Any exchange or the Commission if the exchange fails to act, may suspend, expel, or otherwise discipline any person who is a member of that exchange, or deny any person access to the exchange. Any such action shall be taken solely in accordance with the rules of that exchange. (B) Any suspension, expulsion, disciplinary, or access denial procedure established by an exchange rule shall provide for written notice to the Commission and to the person who is suspended, expelled, or disciplined, or denied access, within thirty days, which includes the reasons for the exchange action in the form and manner the Commission prescribes. An exchange shall make public its findings and the reasons for the exchange action in any such proceeding, including the action taken or the penalty imposed, but shall not disclose the evidence therefor, except to the person who is suspended, expelled, or disciplined, or denied access, and to the Commission. (2) The Commission may, in its discretion and in accordance with such standards and procedures as it deems appropriate, review any decision by an exchange whereby a person is suspended, expelled, otherwise disciplined, or denied access to the exchange. In addition, the Commission may, in its discretion and upon application of any person who is adversely affected by any other exchange action, review such action. (3) The Commission may affirm, modify, set aside, or remand any exchange decision it reviews pursuant to paragraph (2) of this section, after a determination on the record whether the action of the exchange was in accordance with the policies of this chapter. Subject to judicial review, any order of the Commission entered pursuant to paragraph (2) of this section shall govern the exchange in its further treatment of the matter. (4) The Commission, in its discretion, may order a stay of any action taken pursuant to paragraph (1) of this section pending review thereof. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 8c, as added Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 216, 88 Stat. 1405, and amended Sept. 30, 1978, Pub. L. 95-405, Sec. 18, 92 Stat. 874.) -MISC1- AMENDMENTS 1978 - Par. (1)(B). Pub. L. 95-405 substituted 'An exchange shall make public its findings and the reasons for the exchange action in any such proceeding, including the action taken or the penalty imposed, but shall not disclose the evidence therefor, except to the person who is suspended, expelled, or disciplined or denied access, and to the Commission' for 'Otherwise the notice and reasons shall be kept confidential'. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1968 Amendment note under section 2 of this title. ------DocID 9087 Document 55 of 2641------ -CITE- 7 USC Sec. 12d -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 12d. Commission action for noncompliance with export sales reporting requirements -STATUTE- The Commission may, in accordance with the procedures provided for in this chapter, refuse to register, register conditionally, or suspend, place restrictions upon, or revoke the registration of, any person, and may bar for any period as it deems appropriate any person from using or participating in any manner in any market regulated by the Commission, if such person is subject to a final decision or order of any court of competent jurisdiction or agency of the United States finding such person to have knowingly violated any provision of the export sales reporting requirements of section 612c-3 of this title, or of any regulation issued thereunder. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 8d, as added Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 226, 96 Stat. 2316.) -MISC1- EFFECTIVE DATE Section effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as an Effective Date of 1983 Amendment note under section 2 of this title. ------DocID 9088 Document 56 of 2641------ -CITE- 7 USC Sec. 13 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 13. Violations generally; punishment; costs of prosecution -STATUTE- (a) Penalty for embezzlement and larcenous actions; limit for individuals; value; suspension It shall be a felony punishable by a fine of not more than $500,000 or imprisonment for not more than five years, or both, together with the costs of prosecution, for any person registered or required to be registered under this chapter, or any employee or agent thereof, to embezzle, steal, purloin, or with criminal intent convert to his own use or the use of another, any money, securities, or property having a value in excess of $100, which was received by such person or any employee or agent thereof to margin, guarantee, or secure the trades or contracts of any customer or accruing to such customer as a result of such trades or contracts or which otherwise was received from any customer, client, or pool participant in connection with the business of such person. Notwithstanding the foregoing, in the case of any violation described in the foregoing sentence by a person who is an individual, the fine shall not be more than $100,000, together with the costs of prosecution. The word 'value' as used in this subsection means face, par, or market value, or cost price, either wholesale or retail, whichever is greater. A person convicted of a felony under this subsection shall be suspended from registration under this chapter and shall be denied registration or reregistration for five years or such longer period as the Commission shall determine, unless the Commission determines that the imposition of such suspension or denial of registration or reregistration is not required to protect the public interest. The Commission may upon petition later review such disqualification and for good cause shown reduce the period thereof. (b) Penalty for price manipulation, cornering, and fraudulent information; suspension It shall be a felony punishable by a fine of not more than $500,000 or imprisonment for not more than five years, or both, together with the costs of prosecution, for any person to manipulate or attempt to manipulate the price of any commodity in interstate commerce, or for future delivery on or subject to the rules of any contract market, or to corner or attempt to corner any such commodity, or knowingly to deliver or cause to be delivered for transmission through the mails or in interstate commerce by telegraph, telephone, wireless, or other means of communication false or misleading or knowingly inaccurate reports concerning crop or market information or conditions that affect or tend to affect the price of any commodity in interstate commerce, or knowingly to violate the provisions of section 6, 6b, 6c(b) through 6c(e), 6h, 6o(1), or 23 of this title, or knowingly to make any false or misleading statement of a material fact in any registration application or report filed with the Commission, or knowingly to omit in any application or report any material fact that is required to be stated therein. Notwithstanding the foregoing, in the case of any violation described in the foregoing sentence by a person who is an individual, the fine shall not be more than $100,000, together with the costs of prosecution. A person convicted of a felony under this subsection shall be suspended from any registration under this chapter, denied registration or reregistration for five years or such longer period as the Commission shall determine, and barred from using or participating in any manner in any market regulated by the Commission for five years or such longer period as the Commission shall determine on such terms and conditions as the Commission may prescribe, unless the Commission determines that the imposition of such suspension, denial of registration or reregistration, or market bar is not required to protect the public interest. The Commission may upon petition later review such disqualification and market bar and for good cause shown reduce the period thereof. (c) Misdemeanors; suspension Except as provided in subsections (a), (b), (d), and (e) of this section, it shall be a misdemeanor punishable by a fine of not more than $100,000 or imprisonment for not more than one year, or both, together with the costs of prosecution, for any person to violate any provisions of section 6a, 6c(a), 6d, 6e, 6i, 6k, 6m, 6o(2), or 12b of this title, or to fail to evidence any contract mentioned in section 6 of this title by a record in writing as therein required. A person convicted under this subsection of knowingly violating the provisions of section 6a of this title shall be suspended from any registration under this chapter, denied registration or reregistration for a period of two years or such longer period as the Commission shall determine, and barred from using or participating in any manner in any market regulated by the Commission for two years or such longer period as the Commission shall determine on such terms and conditions as the Commission may prescribe, unless the Commission determines that the imposition of such suspension, denial of registration or reregistration, or market bar is not required to protect the public interest. The Commission may upon petition later review such disqualification and market bar and for good cause shown reduce the period thereof. (d) Transactions by Commissioners and Commission employees prohibited It shall be a felony punishable by a fine of not more than $100,000 or imprisonment for not more than five years, or both, together with the costs of prosecution, for any Commissioner of the Commission or any employee or agent thereof, to participate, directly or indirectly, in any transaction in commodity futures or any transaction of the character of or which is commonly known to the trade as an 'option', 'privilege', 'indemnity', 'bid', 'offer', 'put', 'call', 'advance guarany', or 'decline guaranty', or any transaction for the delivery of any commodity under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device that the Commission determines serves the same function or functions as such a standardized contract, or is marketed or managed in substantially the same manner as such a standardized contract, or for any such person to participate, directly or indirectly, in any investment transaction in an actual commodity if nonpublic information is used in the investment transaction, if the investment transaction is prohibited by rule or regulation of the Commission, or if the investment transaction is effected by means of any instrument regulated by the Commission. The foregoing prohibitions shall not apply to any transaction or class of transactions that the Commission, by rule or regulation, has determined would not be contrary to the public interest or otherwise inconsistent with the purposes of this subsection. (e) Use of information by Commissioners and Commission employees prohibited It shall be a felony punishable by a fine of not more than $100,000 or imprisonment for not more than five years, or both, together with the costs of prosecution - (1) for any Commissioner of the Commission or any employee or agent thereof who, by virtue of his employment or position, acquires information which may affect or tend to affect the price of any commodity futures or commodity and which information has not been made public to impart such information with intent to assist another person, directly or indirectly, to participate in any transaction in commodity futures, any transaction in an actual commodity, or in any transaction of the character of or which is commonly known to the trade as an 'option', 'privilege', 'indemnity', 'bid', 'offer', 'put', 'call', 'advance guaranty', or 'decline guaranty', or in any transaction for the delivery of any commodity under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device that the Commission determines serves the same function or functions as such a standardized contract, or is marketed or managed in substantially the same manner as such a standardized contract; and (2) for any person to acquire such information from any Commissioner of the Commission or any employee or agent thereof and to use such information in any transaction in commodity futures, any transaction in an actual commodity, or in any transaction of the character of or which is commonly known to the trade as an 'option', 'privilege', 'indemnity', 'bid', 'offer', 'put', 'call', 'advance guaranty', or 'decline guaranty', or in any transaction for the delivery of any commodity under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device that the Commission determines serves the same function or functions as such a standardized contract, or is marketed or managed in substantially the same manner as such a standardized contract. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 9, 42 Stat. 1003; June 15, 1936, ch. 545, Sec. 2, 11, 49 Stat. 1491, 1501; Feb. 19, 1968, Pub. L. 90-258, Sec. 25, 82 Stat. 33; Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 212(d), title IV, Sec. 401, 409, 88 Stat. 1404, 1412, 1414; Sept. 30, 1978, Pub. L. 95-405, Sec. 19, 92 Stat. 875; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 227, 96 Stat. 2316; Nov. 10, 1986, Pub. L. 99-641, title I, Sec. 105, 110(3), (4), 100 Stat. 3558, 3561.) -MISC1- AMENDMENTS 1986 - Subsec. (c). Pub. L. 99-641, Sec. 110(3), substituted '6k,' for '6k.' Subsec. (d). Pub. L. 99-641, Sec. 110(4), substituted 'advance guaranty' for 'advance guarantee'. Pub. L. 99-641, Sec. 105, inserted 'if nonpublic information is used in the investment transaction, if the investment transaction is prohibited by rule or regulation of the Commission, or if the investment transaction is effected by means of any instrument regulated by the Commission' after 'actual commodity', and substituted provisions which related to foregoing prohibitions not being applicable to transactions determined by Commission not contrary to public interest or inconsistent with this subsection for provisions which read as follows: 'Such prohibition against any investment transaction in an actual commodity shall not apply to (1) a transaction in which such person buys an agricultural commodity or livestock for use in such person's own farming or ranching operations or sells an agricultural commodity which such person has produced in connection with such person's own farming or ranching operations nor to any transaction in which such person sells livestock owned by such person for at least three months, (2) a transaction entered into by the trustee of a trust established by such person over which such person exercises no control if such transaction is entered into solely to hedge against adverse price changes in connection with such farming or ranching operations or is a transaction for the lease of oil or gas or other mineral rights or interests owned by such person, or (3) a transaction in which such person buys or sells, directly or indirectly (except by means of an instrument regulated by the Commission), a United States Government security, a certificate of deposit, or a similar financial instrument if no nonpublic information is used by such person in such transaction. With respect to such excepted transactions, the Commission shall require any Commissioner of the Commission or any employee or agent thereof who participates in any such transaction to notify the Commission thereof in accordance with such regulations as the Commission shall prescribe and the Commission shall make such information available to the public.' 1983 - Subsec. (a). Pub. L. 97-444, Sec. 227(1), expanded applicability to any person registered or required to be registered under this chapter and inserted provision suspending persons convicted under this subsec. from registration and denying reregistration for five years or longer as determined by the Commission, unless such suspension or denial is not required to protect the public interest. Subsec. (b). Pub. L. 97-444, Sec. 227(2), inserted 'A person convicted of a felony under this subsection shall be suspended from any registration under this chapter, denied registration or reregistration for five years or such longer period as the Commission shall determine, and barred from using or participating in any manner in any market regulated by the Commission for five years or such longer period as the Commission shall determine on such terms and conditions as the Commission may prescribe, unless the Commission determines that the imposition of such suspension, denial of registration or reregistration, or market bar is not required to protect the public interest. The Commission may upon petition later review such disqualification and market bar and for good cause shown reduce the period thereof.' Subsec. (c). Pub. L. 97-444, Sec. 227(3), inserted 'A person convicted under this subsection of knowingly violating the provisions of section 6a of this title shall be suspended from any registration under this chapter, denied registration or reregistration for a period of two years or such longer period as the Commission shall determine, and barred from using or participating in any manner in any market regulated by the Commission for two years or such longer period as the Commission shall determine on such terms and conditions as the Commission may prescribe, unless the Commission determines that the imposition of such suspension, denial of registration or reregistration, or market bar is not required to protect the public interest. The Commission may upon petition later review such disqualification and market bar and for good cause shown reduce the period thereof.' Subsec. (d). Pub. L. 97-444, Sec. 227(4), in amending subsec. (d) generally, added to range of felonious conduct, participation in any transaction for the delivery of any commodity under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device that the Commission determines serves the same function or functions as such a standardized contract, or is marketed or managed in substantially the same manner as such a standardized contract, and added to nonapplicability of prohibition against any investment transaction in an actual commodity, a transaction entered into by the trustee of a trust established by such person over which such person exercises no control if such transaction is entered into solely to hedge against adverse price changes in connection with such farming or ranching operations or is a transaction for the lease of oil or gas or other mineral rights or interests owned by such person, or a transaction in which such person buys or sells, directly or indirectly (except by means of an instrument regulated by the Commission), a United States Government security, a certificate of deposit, or a similar financial instrument if no nonpublic information is used by such person in such transaction. Subsec. (e). Pub. L. 97-444, Sec. 227(5), inserted after words ' 'decline guaranty' ' each place they appear the following: ', or in any transaction for the delivery of any commodity under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device that the Commission determines serves the same function or functions as such a standardized contract, or is marketed or managed in substantially the same manner as such a standardized contract'. 1978 - Subsec. (a). Pub. L. 95-405, Sec. 19(1), substituted '$500,000' for '$100,000' and inserted provision relating to a fine of not more than $100,000 plus costs of prosecution for a violation by a person who is an individual. Subsec. (b). Pub. L. 95-405, Sec. 19(2), substituted '$500,000' for '$100,000' and inserted provisions making felonies the violation of sections 6, 6b, 6c(b) to (e), 6h, 6o(1) and 23 of this title, knowingly making any false or misleading statement of material fact, or omitting such fact in any application or report, and setting the fine for such felonies at not more than $100,000 for a person who is an individual. Subsec. (c). Pub. L. 95-405, Sec. 19(3), inserted references to subsecs. (d) and (e) of this section and substituted 'sections 6a, 6c(a), 6d, 6e, 6i, 6k, 6m, 6o(2), or 12b of this title' for 'sections 6 to 6e, 6h, 6i, 6k, 6m, 6o or 12b of this title'. Subsecs. (d), (e). Pub. L. 95-405, Sec. 19(4), (5), substituted '$100,000' for '$10,000'. 1974 - Subsecs. (a), (b). Pub. L. 93-463, Sec. 212(d)(1), (2), substituted '$100,000' for '$10,000'. Subsec. (c). Pub. L. 93-463, Sec. 212(d)(3), 409, substituted '$100,000' for '$10,000' and inserted reference to sections 6k, 6m, and 6o of this title. Subsecs. (d), (e). Pub. L. 93-463, Sec. 401, added subsecs. (d) and (e). 1968 - Subsec. (a). Pub. L. 90-258 added subsec. (a). Subsec. (b). Pub. L. 90-258 incorporated existing offenses in provisions designated as subsec. (b), changed classification thereof from misdemeanors to felonies, and increased term of imprisonment from not more than one year to not more than five years. Subsec. (c). Pub. L. 90-258 incorporated existing offenses in provisions designated as subsec. (c), and included penalty for violation of section 12b of this title. 1936 - Act June 15, 1936, amended section generally and provided that price manipulations of commodities in interstate commerce was a violation. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1936 AMENDMENT Amendment by act June 15, 1936, effective 90 days after June 15, 1936, see section 13 of that act, set out as a note under section 1 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 6a, 13b of this title. ------DocID 9089 Document 57 of 2641------ -CITE- 7 USC Sec. 13-1 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 13-1. Violations, prohibition against dealings in onion futures; punishment -STATUTE- (a) No contract for the sale of onions for future delivery shall be made on or subject to the rules of any board of trade in the United States. The terms used in this section shall have the same meaning as when used in this chapter. (b) Any person who shall violate the provisions of this section shall be deemed guilty of a misdemeanor and upon conviction thereof be fined not more than $5,000. -SOURCE- (Pub. L. 85-839, Sec. 1, Aug. 28, 1958, 72 Stat. 1013.) -COD- CODIFICATION Section was not enacted as part of the Commodity Exchange Act which comprises this chapter. -MISC3- EFFECTIVE DATE Section 2 of Pub. L. 85-839 provided that: 'This Act (enacting this section) shall take effect thirty days after its enactment (Aug. 28, 1958).' -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 2 of this title. ------DocID 9090 Document 58 of 2641------ -CITE- 7 USC Sec. 13a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 13a. Nonenforcement of rules of government or other violations; cease and desist orders; fines and penalties; imprisonment; misdemeanor; separate offenses -STATUTE- If any contract market is not enforcing or has not enforced its rules of government made a condition of its designation as set forth in section 7 of this title, or if any contract market, or any director, officer, agent, or employee of any contract market otherwise is violating or has violated any of the provisions of this chapter or any of the rules, regulations, or orders of the Commission thereunder, the Commission may, upon notice and hearing on the record and subject to appeal as in other cases provided for in paragraph (a) of section 8 of this title, make and enter an order directing that such contract market, director, officer, agent, or employee shall cease and desist from such violation, and assess a civil penalty of not more than $100,000 for each such violation. If such contract market, director, officer, agent, or employee, after the entry of such a cease and desist order and the lapse of the period allowed for appeal of such order or after the affirmance of such order, shall fail or refuse to obey or comply with such order, such contract market, director, officer, agent, or employee shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $100,000 or imprisoned for not less than six months nor more than one year, or both. Each day during which such failure or refusal to obey such cease and desist order continues shall be deemed a separate offense. If the offending contract market or other person upon whom such penalty is imposed, after the lapse of the period allowed for appeal or after the affirmance of such penalty, shall fail to pay such penalty, the Commission shall refer the matter to the Attorney General who shall recover such penalty by action in the appropriate United States district court. In determining the amount of the money penalty assessed under this section, the Commission shall consider the appropriateness of such penalty to the net worth of the offending person and the gravity of the offense, and in the case of a contract market shall further consider whether the amount of the penalty will materially impair the contract market's ability to carry on its operations and duties. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 6b, as added June 15, 1936, ch. 545, Sec. 9, 49 Stat. 1500, and amended Feb. 19, 1968, Pub. L. 90-258, Sec. 18, 82 Stat. 31; Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 212(b), 88 Stat. 1403; Sept. 30, 1978, Pub. L. 95-405, Sec. 14, 92 Stat. 872.) -MISC1- AMENDMENTS 1978 - Pub. L. 95-405 inserted 'on the record' after 'notice and hearing'. 1974 - Pub. L. 93-463 inserted provision for assessment of a civil penalty of not more than $100,000 for each violation, substituted 'not more than $100,000' for 'not less than $500 nor more than $10,000' as permissible range of fines imposed, inserted provisions for enforcement of a penalty, and substituted 'orders of the Commission' for 'orders of the Secretary of Agriculture or the commission'. 1968 - Pub. L. 90-258 amended section to clarify application only to boards of trade designated as contract markets, to include as grounds for cease and desist orders failure to enforce the market's rules of government made a condition of its designation and violation of rules or regulations of the commission or orders of the Secretary, and to authorize such orders in conjunction with a suspension or revocation of designation as a contract market rather than in lieu of suspension or revocation. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. ------DocID 9091 Document 59 of 2641------ -CITE- 7 USC Sec. 13a-1 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 13a-1. Action to enjoin or restrain violations; compliance; writs and orders; jurisdiction and venue; process -STATUTE- Whenever it shall appear to the Commission that any contract market or other person has engaged, is engaging, or is about to engage in any act or practice constituting a violation of any provision of this chapter or any rule, regulation, or order thereunder, or is restraining trading in any commodity for future delivery, the Commission may bring an action in the proper district court of the United States or the proper United States court of any territory or other place subject to the jurisdiction of the United States, to enjoin such act or practice, or to enforce compliance with this chapter, or any rule, regulation or order thereunder, and said courts shall have jurisdiction to entertain such actions: Provided, That no restraining order (other than a restraining order which prohibits any person from destroying, altering or disposing of, or refusing to permit authorized representatives of the Commission to inspect, when and as requested, any books and records or other documents or which prohibits any person from withdrawing, transferring, removing, dissipating, or disposing of any funds, assets, or other property, and other than an order appointing a temporary receiver to administer such restraining order and to perform such other duties as the court may consider appropriate) or injunction for violation of the provisions of this chapter shall be issued ex parte by said court. Upon a proper showing a permanent or temporary injunction or restraining order shall be granted without bond. Upon application of the Commission, the district courts of the United States and the United States courts of any territory or other place subject to the jurisdiction of the United States shall also have jurisdiction to issue writs of mandamus, or orders affording like relief, commanding any person to comply with the provisions of this chapter or any rule, regulation, or order of the Commission thereunder, including the requirement that such person take such action as is necessary to remove the danger of violation of this chapter or any such rule, regulation, or order: Provided, That no such writ of mandamus, or order affording like relief, shall be issued ex parte. Any action under this section may be brought in the district wherein the defendant is found or is an inhabitant or transacts business or in the district where the act or practice occurred, is occurring, or is about to occur, and process in such cases may be served in any district in which the defendant is an inhabitant or wherever the defendant may be found. In lieu of bringing actions itself pursuant to this section, the Commission may request the Attorney General to bring the action. Where the Commission elects to bring the action, it shall inform the Attorney General of such suit and advise him of subsequent developments. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 6c, as added Oct. 23, 1974, Pub. L. 93-463, title II, Sec. 211, 88 Stat. 1402, and amended Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 220, 96 Stat. 2308; Nov. 10, 1986, Pub. L. 99-641, title I, Sec. 104, 100 Stat. 3557.) -MISC1- AMENDMENTS 1986 - Pub. L. 99-641 inserted ', and other than an order appointing a temporary receiver to administer such restraining order and to perform such other duties as the court may consider appropriate'. 1983 - Pub. L. 97-444 inserted '(other than a restraining order which prohibits any person from destroying, altering or disposing of, or refusing to permit authorized representatives of the Commission to inspect, when and as requested, any books and records or other documents or which prohibits any person from withdrawing, transferring, removing, dissipating, or disposing of any funds, assets, or other property)' after 'Provided, That no restraining order'. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. -CROSS- FEDERAL RULES OF CIVIL PROCEDURE Injunctions, see rule 65, Title 28, Appendix, Judiciary and Judicial Procedure. Writ of mandamus abolished in United States district courts, but relief available by appropriate action or motion, see rule 81. ------DocID 9092 Document 60 of 2641------ -CITE- 7 USC Sec. 13a-2 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 13a-2. Jurisdiction of States -STATUTE- (1) Whenever it shall appear to the attorney general of any State, the administrator of the securities laws of any State, or such other official as a State may designate, that the interests of the residents of that State have been, are being, or may be threatened or adversely affected because any person (other than a contract market, clearinghouse, or floor broker) has engaged in, is engaging or is about to engage in, any act or practice constituting a violation of any provision of this chapter or any rule, regulation, or order of the Commission thereunder, the State may bring a suit in equity or an action at law on behalf of its residents to enjoin such act or practice, to enforce compliance with this chapter, or any rule, regulation, or order of the Commission thereunder, to obtain damages on behalf of their residents, or to obtain such further and other relief as the court may deem appropriate. (2) The district courts of the United States, the United States courts of any territory, and the District Court of the United States for the District of Columbia, shall have jurisdiction of all suits in equity and actions at law brought under this section to enforce any liability or duty created by this chapter or any rule, regulation, or order of the Commission thereunder, or to obtain damages or other relief with respect thereto. Upon proper application, such courts shall also have jurisdiction to issue writs of mandamus, or orders affording like relief, commanding the defendant to comply with the provisions of this chapter or any rule, regulation, or order of the Commission thereunder, including the requirement that the defendant take such action as is necessary to remove the danger of violation of this chapter or of any such rule, regulation, or order. Upon a proper showing, a permanent or temporary injunction or restraining order shall be granted without bond. (3) Immediately upon instituting any such suit or action, the State shall serve written notice thereof upon the Commission and provide the Commission with a copy of its complaint, and the Commission shall have the right to (A) intervene in the suit or action and, upon doing so, shall be heard on all matters arising therein, and (B) file petitions for appeal. (4) Any suit or action brought under this section in a district court of the United States may be brought in the district wherein the defendant is found or is an inhabitant or transacts business or wherein the act or practice occurred, is occurring, or is about to occur, and process in such cases may be served in any district in which the defendant is an inhabitant or wherever the defendant may be found. (5) For purposes of bringing any suit or action under this section, nothing in this chapter shall prevent the attorney general, the administrator of the State securities laws, or other duly authorized State officials from exercising the powers conferred on them by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence. (6) For purposes of this section, 'State' means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States. (7) Nothing contained in this section shall prohibit an authorized State official from proceeding in State court on the basis of an alleged violation of any general civil or criminal antifraud statute of such State. (8)(A) Nothing in this chapter shall prohibit an authorized State official from proceeding in a State court against any person registered under this chapter (other than a floor broker or registered futures association) for an alleged violation of any antifraud provision of this chapter or any antifraud rule, regulation, or order issued pursuant to the chapter. (B) The State shall give the Commission prior written notice of its intent to proceed before instituting a proceeding in State court as described in this subsection and shall furnish the Commission with a copy of its complaint immediately upon instituting any such proceeding. The Commission shall have the right to (i) intervene in the proceeding and, upon doing so, shall be heard on all matters arising therein, and (ii) file a petition for appeal. The Commission or the defendant may remove such proceeding to the district court of the United States for the proper district by following the procedure for removal otherwise provided by law, except that the petition for removal shall be filed within sixty days after service of the summons and complaint upon the defendant. The Commission shall have the right to appear as amicus curiae in any such proceeding. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 6d, as added Sept. 30, 1978, Pub. L. 95-405, Sec. 15, 92 Stat. 872, and amended Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 221, 96 Stat. 2308.) -MISC1- AMENDMENTS 1983 - Par. (8). Pub. L. 97-444 added par. (8). EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE Section effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as an Effective Date of 1978 Amendment note under section 2 of this title. -CROSS- FEDERAL RULES OF CIVIL PROCEDURE Injunctions, see rule 65, Title 28, Appendix, Judiciary and Judicial Procedure. One form of action, see rule 2. Rules as governing the procedure in all suits of a civil nature whether cognizable as cases at common law or in equity, see rule 1. Writ of mandamus abolished in United States district courts, but relief available by appropriate action or motion, see rule 81. ------DocID 9093 Document 61 of 2641------ -CITE- 7 USC Sec. 13b -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 13b. Manipulations or other violations; cease and desist orders against persons other than contract markets; punishment; misdemeanor or felony; separate offenses -STATUTE- If any person (other than a contract market) is manipulating or attempting to manipulate or has manipulated or attempted to manipulate the market price of any commodity, in interstate commerce, or for future delivery on or subject to the rules of any contract markets, or otherwise is violating or has violated any of the provisions of this chapter or of the rules, regulations, or orders of the Commission thereunder, the Commission may, upon notice and hearing, and subject to appeal as in other cases provided for in section 9 of this title, make and enter an order directing that such person shall cease and desist therefrom and, if such person thereafter and after the lapse of the period allowed for appeal of such order or after the affirmance of such order, shall fail or refuse to obey or comply with such order, such person shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $100,000, or imprisoned for not less than six months nor more than one year, or both, except that if such failure or refusal to obey or comply with such order involves any offense within paragraph (a) or (b) of section 13 of this title, such person shall be guilty of a felony and, upon conviction thereof, shall be subject to the penalties of said paragraph (a) or (b): Provided, That any such cease and desist order against any respondent in any case of manipulation of, or attempt to manipulate, the price of any commodity shall be issued only in conjunction with an order issued against such respondent under section 9 of this title. Each day during which such failure or refusal to obey or comply with such order continues shall be deemed a separate offense. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 6(c), as added Feb. 19, 1968, Pub. L. 90-258, Sec. 17, 82 Stat. 31, and amended Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(a), (b), title II, Sec. 212(c), 88 Stat. 1392, 1404.) -COD- CODIFICATION Section is composed of par. (c) of section 6 of act Sept. 21, 1922. The first par. and par. (a) of section 6 are classified to section 8 of this title. Par. (b) of section 6 is classified to sections 9 and 15 of this title. Par. (d) of section 6 is classified to section 9a of this title. -MISC3- AMENDMENTS 1974 - Pub. L. 93-463 substituted 'not more than $100,000' for 'not less than $500 nor more than $10,000' and substituted 'Commission' for 'Secretary of Agriculture or the Commission' and 'Secretary'. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE Section effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as an Effective Date of 1968 Amendment note under section 2 of this title. ------DocID 9094 Document 62 of 2641------ -CITE- 7 USC Sec. 13c -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 13c. Responsibility as principal; minor violations -STATUTE- (a) Any person who commits, or who willfully aids, abets, counsels, commands, induces, or procures the commission of, a violation of any of the provisions of this chapter, or any of the rules; regulations, or orders issued pursuant to this chapter, or who acts in combination or concert with any other person in any such violation, or who willfully causes an act to be done or omitted which if directly performed or omitted by him or another would be a violation of the provisions of this chapter or any of such rules, regulations, or orders may be held responsible for such violation as a principal. (b) Any person who, directly or indirectly, controls any person who has violated any provision of this chapter or any of the rules, regulations, or orders issued pursuant to this chapter may be held liable for such violation in any action brought by the Commission to the same extent as such controlled person. In such action, the Commission has the burden of proving that the controlling person did not act in good faith or knowingly induced, directly or indirectly, the act or acts constituting the violation. (c) Nothing in this chapter shall be construed as requiring the Commission to report minor violations of this chapter for prosecution, whenever it appears that the public interest does not require such action. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 13, as added Feb. 19, 1968, Pub. L. 90-258, Sec. 26, 82 Stat. 34, and amended Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(b), 88 Stat. 1392; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 230, 96 Stat. 2319.) -MISC1- AMENDMENTS 1983 - Subsec. (a). Pub. L. 97-444, Sec. 230(1), struck out 'in administrative proceedings under this chapter' after 'may be held responsible'. Subsecs. (b), (c). Pub. L. 97-444, Sec. 230(2), (3), added subsec. (b) and redesignated former subsec. (b) as (c). 1974 - Subsec. (b). Pub. L. 93-463 substituted 'Commission' for 'Secretary of Agriculture or the commission'. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE Section effective 120 days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as an Effective Date of 1968 Amendment note under section 2 of this title. ------DocID 9095 Document 63 of 2641------ -CITE- 7 USC Sec. 14 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 14. Repealed. Pub. L. 99-641, title I, Sec. 110(5), Nov. 10, 1986, 100 Stat. 3561 -MISC1- Section, act Sept. 21, 1922, ch. 369, Sec. 11, 42 Stat. 1003, provided that violations of this chapter occurring before Nov. 1, 1922, should not be punishable. ------DocID 9096 Document 64 of 2641------ -CITE- 7 USC Sec. 15 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 15. Enforcement powers of Commission -STATUTE- For the purpose of securing effective enforcement of the provisions of this chapter and for the purpose of any investigation or proceeding under this chapter, any member of the Commission or any Administrative Law Judge or other officer designated by the Commission (except as provided in the third sentence of this section) may administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, or other records that the Commission deems relevant or material to the inquiry. The attendance of witnesses and the production of any such records may be required from any place in the United States, any State, or any foreign country or jurisdiction at any designated place of hearing. A subpena issued under this section may be served upon any person who is not to be found within the territorial jurisdiction of any court of the United States in such manner as the Federal Rules of Civil Procedure prescribe for service of process in a foreign country, except that a subpena to be served on a person who is not to be found within the territorial jurisdiction of any court of the United States may be issued only on the prior approval of the Commission. In case of contumacy by, or refusal to obey a subpena issued to, any person, the Commission may invoke the aid of any court of the United States within the jurisdiction in which the investigation or proceeding is conducted, or where such person resides or transacts business, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, and other records. Such court may issue an order requiring such person to appear before the Commission or member or Administrative Law Judge or other officer designated by the Commission, there to produce records, if so ordered, or to give testimony touching the matter under investigation or in question. Any failure to obey such order of the court may be punished by the court as a contempt thereof. All process in any such case may be served in the judicial district wherein such person is an inhabitant or transacts business or wherever such person may be found. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 6(b), 42 Stat. 1002; June 15, 1936, ch. 545, Sec. 8(e)-(g), 49 Stat. 1499; June 16, 1955, ch. 151, 69 Stat. 160; Oct. 15, 1970, Pub. L. 91-452, title II, Sec. 202, 84 Stat. 928; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 103(d), title IV, Sec. 408(b), 88 Stat. 1392, 1414; Sept. 30, 1978, Pub. L. 95-405, Sec. 13(3), 92 Stat. 871; Nov. 10, 1986, Pub. L. 99-641, title I, Sec. 103, 100 Stat. 3557.) -REFTEXT- REFERENCES IN TEXT This section, referred to in text, means section 6 of act Sept. 21, 1922, ch. 369, 42 Stat. 1001. For classification of section 6 to the Code, see Codification note below. The Federal Rules of Civil Procedure, referred to in text, are set out in the Appendix to Title 28, Judiciary and Judicial Procedure. -COD- CODIFICATION Section 9 of this title was derived from par. (b) of section 6 of the Grain Futures Act as originally enacted, act Sept. 21, 1922, ch. 369. This par. (b) prior to its incorporation into the Code contained a provision as to finality of judgments and review by the Supreme Court and is covered by section 1254 of Title 28, Judiciary and Judicial Procedure. A further provision of par. (b) is contained in this section. The first par. and par. (a) of section 6 are classified to section 8 of this title. Pars. (c) and (d) of section 6 are classified to sections 13b and 9a of this title, respectively. -MISC3- AMENDMENTS 1986 - Pub. L. 99-641 inserted '(except as provided in the third sentence of this section)', substituted ', any State, or any foreign country or jurisdiction' for 'or any State', and inserted provisions which related to service of subpena upon person not found within territorial jurisdiction of United States. 1978 - Pub. L. 95-405 substituted provisions giving Commission or any Administrative Law Judge or other officer designated by Commission independent authority to administer oaths and affirmations, to subpena witnesses, and related actions for the purpose of conducting investigations and proceedings with regard to this chapter for provisions basing authority of Commission or any Administrative Law Judge with regard to investigations and proceedings under this chapter on the Interstate Commerce Act and inserted provisions authorizing Commission to invoke the aid of the courts in requiring attendance and testimony of witnesses and the production of books and other records. 1974 - Pub. L. 93-463 struck out 'the Secretary of Agriculture (or any person designated by him),' after 'jurisdiction, and authority of' and substituted 'Administrative Law Judge' for 'referee'. 1970 - Pub. L. 91-452 struck out references to sections 46-48 of title 49, and provisions relating to the immunity of witnesses. 1955 - Act June 16, 1955, extended subpoena power to investigations. 1936 - Act June 15, 1936, Sec. 8(e), (f), substituted 'sections 12 and 46-48 of title 49' for 'section 12 of title 49'. Act June 15, 1936, Sec. 8(g), substituted 'and' for 'or' after 'commission'. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment of Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1970 AMENDMENT Amendment by Pub. L. 91-452 effective on sixtieth day following Oct. 15, 1970, and not to affect any immunity to which any individual is entitled under this section by reason of any testimony given before sixtieth day following Oct. 15, 1970, see section 260 of Pub. L. 91-452, set out as an Effective Date; Savings Provision note under section 6001 of Title 18, Crimes and Criminal Procedure. EFFECTIVE DATE OF 1936 AMENDMENT Amendment by act June 15, 1936, effective 90 days after June 15, 1936, see section 13 of that act, set out as a note under section 1 of this title. -CROSS- CROSS REFERENCES Immunity of witnesses, see section 6001 et seq. of Title 18, Crimes and Criminal Procedure. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 12 of this title. ------DocID 9097 Document 65 of 2641------ -CITE- 7 USC Sec. 15a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 15a. Repealed. Pub. L. 95-405, Sec. 24, Sept. 30, 1978, 92 Stat. 877 -MISC1- Section, Pub. L. 93-463, title II, Sec. 217, Oct. 23, 1974, 88 Stat. 1405, related to leverage contracts for gold and silver. See section 23(b) of this title. EFFECTIVE DATE OF REPEAL Repeal effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as an Effective Date of 1978 Amendment note under section 2 of this title. ------DocID 9098 Document 66 of 2641------ -CITE- 7 USC Sec. 15b -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 15b. Cotton futures contracts -STATUTE- (a) Short title This section may be cited as the 'United States Cotton Futures Act'. (b) Repeal of tax on cotton futures Subchapter D of chapter 39 of title 26 (relating to tax on cotton futures) is repealed. (c) Definitions For purposes of this section - (1) Cotton futures contract The term 'cotton futures contract' means any contract of sale of cotton for future delivery made at, on, or in any exchange, board of trade, or similar institution or place of business which has been designated a 'contract market' by the Commodity Futures Trading Commission pursuant to the Commodity Exchange Act (7 U.S.C. 1 et seq.) and the term 'contract of sale' as so used shall be held to include sales, agreements of sale, and agreements to sell. (2) Future delivery The term 'future delivery' shall not include any cash sale of cotton for deferred shipment or delivery. (3) Person The term 'person' includes an individual, trust, estate, partnership, association, company, or corporation. (4) Secretary The term 'Secretary' means the Secretary of Agriculture of the United States. (5) Standards The term 'standards' means the official cotton standards of the United States established by the Secretary pursuant to the United States Cotton Standards Act, as amended (7 U.S.C. 51 et seq.). (d) Bona fide spot markets and commercial differences (1) Definition For purposes of this section, the only markets which shall be considered bona fide spot markets shall be those which the Secretary shall, from time to time, after investigation, determine and designate to be such, and of which he shall give public notice. (2) Determination In determining, pursuant to the provisions of this section, what markets are bona fide spot markets, the Secretary is directed to consider only markets in which spot cotton is sold in such volume and under such conditions as customarily to reflect accurately the value of middling cotton and the differences between the prices or values of middling cotton and of other grades of cotton for which standards shall have been established by the Secretary; except that if there are not sufficient places, in the markets of which are made bona fide sales of spot cotton of grades for which standards are established by the Secretary, to enable him to designate at least five spot markets in accordance with subsection (f)(3) of this section, he shall, from data as to spot sales collected by him, make rules and regulations for determining the actual commercial differences in the value of spot cotton of the grades established by him as reflected by bona fide sales of spot cotton, of the same or different grades, in the market selected and designated by him, from time to time, for that purpose, and in that event differences in value of cotton of various grades involved in contracts made pursuant to subsection (f)(1) and (2) of this section shall be determined in compliance with such rules and regulations. It shall be the duty of any person engaged in the business of dealing in cotton, when requested by the Secretary or any agent acting under his instructions, to answer correctly to the best of his knowledge, under oath or otherwise, all questions touching his knowledge of the number of bales, the classification, the price or bona fide price offered, and other terms of purchase or sale, of any cotton involved in any transaction participated in by him, or to produce all books, letters, papers, or documents in his possession or under his control relating to such matter. (3) Withholding information Any person engaged in the business of dealing in cotton who shall, within a reasonable time prescribed by the Secretary or any agent acting under his instructions, willfully fail or refuse to answer questions or to produce books, letters, papers, or documents, as required under paragraph (2) of this subsection, or who shall willfully give any answer that is false or misleading, shall, upon conviction thereof, be fined not more than $500. (e) Form and validity of cotton futures contracts Each cotton futures contract shall be a basis grade contract, or a tendered grade contract, or a specific grade contract as specified in subsections (f), (g), or (h) of this section and shall be in writing plainly stating, or evidenced by written memorandum showing, the terms of such contract, including the quantity of the cotton involved and the names and addresses of the seller and buyer in such contract, and shall be signed by the party to be charged, or by his agent in his behalf. No cotton futures contract which does not conform to such requirements shall be enforceable by, or on behalf of, any party to such contract or his privies. (f) Basis grade contracts (1) Conditions Each basis grade cotton futures contract shall comply with each of the following conditions: (A) Conformity with regulations Conform to the regulations made pursuant to this section. (B) Specification of grade, price, and dates of sale and settlement Specify the basis grade for the cotton involved in the contract, which shall be one of the grades for which standards are established by the Secretary, except grades prohibited from being delivered on a contract made under this subsection by subparagraph (E), the price per pound at which the cotton of such basis grade is contracted to be bought or sold, the date when the purchase or sale was made, and the month or months in which the contract is to be fulfilled or settled; except that middling shall be deemed the basis grade incorporated into the contract if no other basis grade be specified either in the contract or in the memorandum evidencing the same. (C) Provision for delivery of standard grades only Provide that the cotton dealt with therein or delivered thereunder shall be of or within the grades for which standards are established by the Secretary except grades prohibited from being delivered on a contract made under this subsection by subparagraph (E) and no other grade or grades. (D) Provision for settlement on basis of actual commercial differences Provide that in case cotton of grade other than the basis grade be tendered or delivered in settlement of such contract, the differences above or below the contract price which the receiver shall pay for such grades other than the basis grade shall be the actual commercial differences, determined as here-inafter provided. (E) Prohibition of delivery of inferior cotton Provide that cotton that, because of the presence of extraneous matter of any character, or irregularities or defects, is reduced in value below that of low middling, or cotton that is below the grade of low middling, or, if tinged, cotton that is below the grade of strict middling, or, if yellow stained, cotton that is below the grade of good middling, the grades mentioned being of the official cotton standards of the United States, or cotton that is less than seven-eighths of an inch in length of staple, or cotton of perished staple, or of immature staple, or cotton that is 'gin cut' or reginned, or cotton that is 'repacked' or 'false packed' or 'mixed packed' or 'water packed', shall not be delivered on, under, or in settlement of such contract. (F) Provisions for tender in full, notice of delivery date, and certificate of grade Provide that all tenders of cotton under such contract shall be the full number of bales involved therein, except that such variations of the number of bales may be permitted as is necessary to bring the total weight of the cotton tendered within the provisions of the contract as to weight; that, on the fifth business day prior to delivery, the person making the tender shall give to the person receiving the same written notice of the date of delivery, and that, on or prior to the date so fixed for delivery, and in advance of final settlement of the contract, the person making the tender shall furnish to the person receiving the same a written notice or certificate stating the grade of each individual bale to be delivered and, by means of marks or numbers, identifying each bale with its grade. (G) Provision for tender and settlement in accordance with Government classification Provide that all tenders of cotton and settlements therefor under such contract shall be in accordance with the classification thereof made under the regulations of the Secretary by such officer or officers of the Government as shall be designated for the purpose, and the costs of such classification shall be fixed, assessed, collected, and paid as provided in such regulations and shall be credited to the account referred to in section 55 of this title. The Secretary may provide by regulation conditions under which cotton samples submitted or used in the performance of services authorized by this act shall become the property of the United States and may be sold and the proceeds credited to the foregoing account: Provided, That such cotton samples shall not be subject to the provisions of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.). The Secretary is authorized to prescribe regulations for carrying out the purposes of this subparagraph and the certificates of the officers of the Government as to the classification of any cotton for the purposes of this subparagraph shall be accepted in the courts of the United States in all suits between the parties to such contract, or their privies, as prima facie evidence of the true classification of the cotton involved. (2) Incorporation of conditions in contracts The provisions of paragraphs (1)(C), (D), (E), (F), and (G) shall be deemed fully incorporated into any such contract if there be written or printed thereon, or on the memorandums evidencing the same, at or prior to the time the same is signed, the phrase 'Subject to United States Cotton Futures Act, subsection (f).' (3) Delivery allowances For the purpose of this subsection, the differences above or below the contract price which the receiver shall pay for cotton of grades above or below the basic (FOOTNOTE 1) grade in the settlement of a contract of sale for the future delivery of cotton shall be determined by the actual commercial differences in value thereof upon the sixth business day prior to the day fixed, in accordance with paragraph (1)(F), for the delivery of cotton on the contract, established by the sale of spot cotton in the spot markets of not less than five places designated for the purpose from time to time by the Secretary, as such values were established by the sales of spot cotton, in such designated five or more markets. For purposes of this paragraph, such values in the such spot markets shall be based upon the standards for grades of cotton established by the Secretary. Whenever the value of one grade is to be determined from the sale or sales of spot cotton of another grade or grades, such value shall be fixed in accordance with rules and regulations which shall be prescribed for the purpose by the Secretary. (FOOTNOTE 1) So in original. Probably should be 'basis'. (g) Tendered grade contracts (1) Conditions Each tendered grade cotton future contract shall comply with each of the following conditions: (A) Compliance with subsection (f) Comply with all the terms and conditions of subsection (f) of this section not inconsistent with this subsection; and (B) Provision for contingent specific performance Provide that, in case cotton of grade or grades other than the basis grade specified in the contract shall be tendered in performance of the contract, the parties to such contract may agree, at the time of the tender, as to the price of the grade or grades so tendered, and that if they shall not then agree as to such price, then, and in that event, the buyer of said contract shall have the right to demand the specific fulfillment of such contract by the actual delivery of cotton of the basis grade named therein and at the price specified for such basis grade in said contract. (2) Incorporation of conditions in contract Contracts made in compliance with this subsection shall be known as 'subsection (g) Contracts'. The provisions of this subsection shall be deemed fully incorporated into any such contract if there be written or printed thereon, or on the memorandum evidencing the same, at or prior to the time the same is signed, the phrase 'Subject to United States Cotton Futures Act, subsection (g)'. (3) Application of subsection Nothing in this subsection shall be so construed as to authorize any contract in which, or in the settlement of or in respect to which, any device or arrangement whatever is resorted to, or any agreement is made, for the determination or adjustment of the price of the grade or grades tendered other than the basis grade specified in the contract by any 'fixed difference' system, or by arbitration, or by any other method not provided for by this section. (h) Specific grade contracts (1) Conditions Each specific grade cotton futures contract shall comply with each of the following conditions: (A) Conformity with rules and regulations Conform to the rules and regulations made pursuant to this section. (B) Specification of grade, price, dates of sale and delivery Specify the grade, type, sample, or description of the cotton involved in the contract, the price per pound at which such cotton is contracted to be bought or sold, the date of the purchase or sale, and the time when shipment or delivery of such cotton is to be made. (C) Prohibition of delivery of other than specified grade Provide that cotton of or within the grade or of the type, or according to the sample or description, specified in the contract shall be delivered thereunder, and that no cotton which does not conform to the type, sample, or description, or which is not of or within the grade specified in the contract shall be tendered or delivered thereunder. (D) Provision for specific performance Provide that the delivery of cotton under the contract shall not be effected by means of 'setoff' or 'ring' settlement, but only by the actual transfer of the specified cotton mentioned in the contract. (2) Incorporation of conditions in contract The provisions of paragraphs (1)(A), (C), and (D) shall be deemed fully incorporated into any such contract if there be written or printed thereon, or on the document or memorandum evidencing the same, at or prior to the time the same is entered into, the words 'Subject to United States Cotton Futures Act, subsection (h)'. (3) Application of subsection This subsection shall not be construed to apply to any contract of sale made in compliance with subsection (f) or (g) of this section. (i) Liability of principal for acts of agent When construing and enforcing the provisions of this section, the act, omission, or failure of any official, agent, or other person acting for or employed by any association, partnership, or corporation within the scope of his employment or office shall, in every case, also be deemed the act, omission, or failure of such association, partnership, or corporation, as well as that of the person. (j) Regulations The Secretary is authorized to make such regulations with the force and effect of law as he determines may be necessary to carry out the provisions of this section and the powers vested in him by this section. (k) Violations Any person who knowingly violates any regulation made in pursuance of this section, shall, upon conviction thereof, be fined not less than $100 nor more than $500, for each violation thereof, in the discretion of the court, and, in case of natural persons, may, in addition be punished by imprisonment for not less than 30 days nor more than 90 days, for each violation, in the discretion of the court except that this subsection shall not apply to violations subject to subsection (d)(3) of this section. (l) Applicability to contracts prior to effective date The provisions of this section shall not apply to any cotton futures contract entered into prior to the effective date of this section or to any act or failure to act by any person prior to such effective date and all such prior contracts, acts or failure to act shall continue to be governed by the applicable provisions of the Internal Revenue Code of 1954 (FOOTNOTE 2) as in effect prior to the enactment of this section. All designations of bona fide spot markets and all rules and regulations issued by the Secretary pursuant to the applicable provisions of the Internal Revenue Code of 1954 (FOOTNOTE 2) which were in effect on the effective date of this section, shall remain fully effective as designations and regulations under this section until superseded, amended, or terminated by the Secretary. (FOOTNOTE 2) See References in Text note below. (m) Authorization There are authorized to be appropriated such sums as may be necessary to carry out this section. -SOURCE- (Pub. L. 94-455, title XIX, Sec. 1952(a)-(m), Oct. 4, 1976, 90 Stat. 1841-1846; Pub. L. 97-35, title I, Sec. 156(c), Aug. 13, 1981, 95 Stat. 374.) -REFTEXT- REFERENCES IN TEXT The Commodity Exchange Act, referred to in subsec. (c)(1), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified generally to chapter 1 (Sec. 1 et seq.) of this title. For complete classification of this Act to the Code, see section 1 of this title and Tables. The United States Cotton Standards Act, as amended, referred to in subsec. (c)(5), is act Mar. 4, 1923, ch. 288, 42 Stat. 1517, as amended, which is classified generally to chapter 2 (Sec. 51 et seq.) of this title. For complete classification of this Act to the Code, see section 51 of this title and Tables. The Federal Property and Administrative Services Act of 1949, referred to in subsec. (f)(1)(G), is act June 30, 1949, ch. 288, 63 Stat. 377, as amended. The provisions of that Act relating to management and disposal of government property are classified to chapter 10 (Sec. 471 et seq.) of Title 40, Public Buildings, Property, and Works. For complete classification of this Act to the Code, see Short Title note set out under section 471 of Title 40 and Tables. The Internal Revenue Code of 1954, referred to in subsec. (l), was redesignated the Internal Revenue Code of 1986 by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, and is classified to Title 26, Internal Revenue Code. -COD- CODIFICATION Section was enacted as part of the Tax Reform Act of 1976, and not as part of the Commodity Exchange Act which comprises this chapter. -MISC3- AMENDMENTS 1981 - Subsec. (f)(1)(G). Pub. L. 97-35 inserted provisions relating to crediting to account referred to in section 55 of this title, and provisions respecting cotton samples submitted or used becoming the property of the United States. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 156(e) of Pub. L. 97-35, set out as an Effective Date note under section 61a of this title. EFFECTIVE DATE Section 1952(o) of Pub. L. 94-455 provided that: 'The provisions of this section (enacting this section, amending section 6808 of Title 26, Internal Revenue Code, and repealing sections 7233 and 7263, subchapter D of chapter 39, and subchapter E of chapter 76 of Title 26) shall take effect on the 90th day after the date of enactment of this Act (Oct. 4, 1976).' -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 55 of this title. ------DocID 9099 Document 67 of 2641------ -CITE- 7 USC Sec. 16 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 16. Commission operations -STATUTE- (a) Cooperation with other agencies The Commission may cooperate with any Department or agency of the Government, any State, territory, district, or possession, or department, agency, or political subdivision thereof, or any person. (b) Employment of investigators, experts, Administrative Law Judges, consultants, clerks, and other personnel; contracts The Commission shall have the authority to employ such investigators, special experts, Administrative Law Judges, clerks, and other employees as it may from time to time find necessary for the proper performance of its duties and as may be from time to time appropriated for by Congress. The Commission may employ experts and consultants in accordance with section 3109 of title 5, and compensate such persons at rates not in excess of the maximum daily rate prescribed for GS-18 under section 5332 of title 5. The Commission shall also have authority to make and enter into contracts with respect to all matters which in the judgment of the Commission are necessary and appropriate to effectuate the purposes and provisions of this chapter, including, but not limited to, the rental of necessary space at the seat of Government and elsewhere. (c) Expenses All of the expenses of the Commissioners, including all necessary expenses for transportation incurred by them while on official business of the Commission, shall be allowed and paid on the presentation of itemized vouchers therefor approved by the Commission. (d) Authorization of appropriations There are authorized to be appropriated to carry out this chapter such sums as may be necessary for each of the fiscal years during the period beginning October 1, 1986, and ending September 30, 1989. (e) Relation to other laws, departments, or agencies Nothing in this chapter shall supersede or preempt - (1) criminal prosecution under any Federal criminal statute; (2) the application of any Federal or State statute, including any rule or regulation thereunder, to any transaction in or involving any commodity, product, right, service, or interest (A) that is not conducted on or subject to the rules of a contract market, or (B) (except as otherwise specified by the Commission by rule or regulation) that is not conducted on or subject to the rules of any board of trade, exchange, or market located outside the United States, its territories or possessions, or (C) that is not subject to regulation by the Commission under section 6c or 23 of this title; or (3) the application of any Federal or State statute, including any rule or regulation thereunder, to any person required to be registered or designated under this chapter who shall fail or refuse to obtain such registration or designation. The Commission may refer any transaction or matter subject to such other Federal or State statutes to any department or agency administering such statutes for such investigation, action, or proceedings as that department or agency shall deem appropriate. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 12, 42 Stat. 1003; Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 101(b), 88 Stat. 1391; Sept. 30, 1978, Pub. L. 95-405, Sec. 20, 92 Stat. 875; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 228, 229, 96 Stat. 2318; Nov. 10, 1986, Pub. L. 99-641, title I, Sec. 106, 100 Stat. 3558.) -MISC1- AMENDMENTS 1986 - Subsec. (d). Pub. L. 99-641 amended subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: 'There are authorized to be appropriated to carry out the provisions of this chapter such sums as may be required for each of the fiscal years during the period beginning October 1, 1982, and ending September 30, 1986.' 1983 - Subsec. (d). Pub. L. 97-444, Sec. 228, substituted appropriation authorization for fiscal years during period beginning Oct. 1, 1982, and ending Sept. 30, 1986, for prior authorization for fiscal years during period beginning Oct. 1, 1978, and ending Sept. 30, 1982. Subsec. (e). Pub. L. 97-444, Sec. 229, added subsec. (e). 1978 - Subsec. (d). Pub. L. 95-405 substituted 'for each of the fiscal years during the period beginning October 1, 1978, and ending September 30, 1982' for 'for the fiscal year ending June 30, 1975, for the fiscal year ending June 30, 1976, for the fiscal year ending June 30, 1977, and for the fiscal year ending June 30, 1978'. 1974 - Pub. L. 93-463 designated existing unlettered provisions as subsecs. (a) to (d), substituted 'Commission' for 'Secretary of Agriculture', inserted provisions authorizing the expenditure of funds for expenses upon the presentation of itemized vouchers therefor approved by the Commission, substituted provisions authorizing appropriations specifically for fiscal years ending June 30, 1975, 1976, 1977, and 1978, for provisions making a general authorization of appropriations without a fiscal year limitation, and inserted authorization to enter into contracts and compensate experts and consultants in accordance with section 3109 of title 5 at rates not in excess of the maximum daily rate prescribed for GS-18 under section 5332 of title 5. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1974 AMENDMENT For effective date of amendment by Pub. L. 93-463, see section 418 of Pub. L. 93-463, set out as a note under section 2 of this title. REFERENCES IN OTHER LAWS TO GS-16, 17, OR 18 PAY RATES References in laws to the rates of pay for GS-16, 17, or 18, or to maximum rates of pay under the General Schedule, to be considered references to rates payable under specified sections of Title 5, Government Organization and Employees, see section 529 (title I, Sec. 101(c)(1)) of Pub. L. 101-509, set out in a note under section 5376 of Title 5. ------DocID 9100 Document 68 of 2641------ -CITE- 7 USC Sec. 16a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 16a. Service fees and National Futures Association study -STATUTE- (a) Development and implementation of plan for user fees; report to and approval by Congressional committees Notwithstanding any other provision of law, the Commodity Futures Trading Commission may develop and implement a plan to charge and collect reasonable fees to cover the estimated cost of regulating transactions under the jurisdiction of the Commission. However, prior to implementing such a plan, the Commission shall report its intention to do so to the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry. The Commission shall include in its report the feasibility and desirability of collecting such fees. Any plan developed under this section shall not be implemented until approved by the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry. Fees collected under any plan approved under this section shall be deposited in the Treasury of the United States as miscellaneous receipts. (b) National Futures Association regulatory experience; report; contents The Commodity Futures Trading Commission shall submit to Congress a report containing the results of a study of the regulatory experience of the National Futures Association for the period beginning January 1, 1983 and ending September 30, 1985. The report shall be submitted not later than January 1, 1986. The report shall include (but not to be limited to) the following - (1) the extent to which the National Futures Association has fully implemented the program provided in the rules approved by the Commission under section 17(p) and (q) of the Commodity Exchange Act (7 U.S.C. 21(p), (q)) and the effectiveness of the operation of such program; (2) the actual and projected cost savings to the Federal Government, if any, resulting from operations of the National Futures Association; (3) the actual and projected costs which the Commission and the public would have incurred if the Association had not undertaken self-regulatory responsibility for certain areas under the Commission's jurisdiction; (4) problem areas, if any, encountered by the Association; (5) the nature of the working relationship between the Association and the Commission; (6) an assessment of the actual and projected efficiencies the Commission has achieved or expects to be achieved as a result of the continuing regulatory activities of the Association; and (7) the immediate and projected capabilities of the Commission at the time of submission of the study to turn its attention to more immediate problems of regulation, as a result of the activities of the Association. (c) Schedule of fees for services, activities and functions; notice and hearing; actual cost standard Nothing in this section shall limit the authority of the Commission to promulgate, after notice and opportunity for hearing, a schedule of appropriate fees to be charged for services rendered and activities and functions performed by the Commission in conjunction with its administration and enforcement of the Commodity Exchange Act (7 U.S.C. 1 et seq.): Provided, That the fees for any specified service or activity or function shall not exceed the actual cost thereof to the Commission. -SOURCE- (Pub. L. 95-405, Sec. 26, Sept. 30, 1978, 92 Stat. 877; Pub. L. 97-444, title II, Sec. 237, Jan. 11, 1983, 96 Stat. 2325.) -REFTEXT- REFERENCES IN TEXT The Commodity Exchange Act, referred to in subsec. (c), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, as amended, which is classified generally to chapter 1 (Sec. 1 et seq.) of this title. For complete classification of this Act to the Code, see section 1 of this title and Tables. -COD- CODIFICATION Section was enacted as part of the Futures Trading Act of 1978, and not as part of the Commodity Exchange Act which comprises this chapter. -MISC3- AMENDMENTS 1983 - Pub. L. 97-444 designated existing provisions as subsec. (a) and added subsecs. (b) and (c). EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE Section effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as an Effective Date of 1978 Amendment note under section 2 of this title. ------DocID 9101 Document 69 of 2641------ -CITE- 7 USC Sec. 17 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 17. Separability -STATUTE- If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the chapter and of the application of such provision to other persons and circumstances shall not be affected thereby. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 10, 42 Stat. 1003.) ------DocID 9102 Document 70 of 2641------ -CITE- 7 USC Sec. 17a -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 17a. Separability of 1936 amendment -STATUTE- If any provision of the act of June 15, 1936, ch. 545, 49 Stat. 1491, which amends this chapter, or the application thereof to any person or circumstances is held invalid, the provisions of the section of this chapter which is amended by such provision of said act shall apply to such person or circumstances. No proceeding shall be abated by reason of any amendment to this chapter made by said act but shall be disposed of pursuant to said act. -SOURCE- (June 15, 1936, ch. 545, Sec. 12, 49 Stat. 1501.) -COD- CODIFICATION Section was not enacted as part of the Commodity Exchange Act which comprises this chapter. -MISC3- EFFECTIVE DATE For effective date of section, see section 13 of act June 15, 1936, set out as an Effective Date of 1936 Amendment note under section 1 of this title. ------DocID 9103 Document 71 of 2641------ -CITE- 7 USC Sec. 17b -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 17b. Separability of 1968 amendment -STATUTE- If any provision of this Act or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the Act and the application of such provision to other persons or circumstances shall not be affected thereby, and the provisions of the section of this chapter which is amended by such provision of this Act shall apply to such person or circumstances. Pending proceedings shall not be abated by reason of any provision of this Act but shall be disposed of pursuant to the provisions of this chapter, in effect prior to the effective date of this Act. -SOURCE- (Pub. L. 90-258, Sec. 27, Feb. 19, 1968, 82 Stat. 34.) -REFTEXT- REFERENCES IN TEXT This Act, referred to in text, is Pub. L. 90-258, Feb. 19, 1968, 82 Stat. 26. For complete classification of this Act to the Code, see Tables. Effective date of this Act, referred to in text, as one hundred and twenty days after Feb. 19, 1968, see section 28 of Pub. L. 90-258, set out as an Effective Date of 1968 Amendment note under section 2 of this title. -COD- CODIFICATION Section was not enacted as part of the Commodity Exchange Act which comprises this chapter. ------DocID 9104 Document 72 of 2641------ -CITE- 7 USC Sec. 18 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 18. Complaints against registered persons -STATUTE- (a) Petition for actual damages Any person complaining of any violation of any provision of this chapter, or any rule, regulation, or order issued pursuant to this chapter, by any person who is registered under this chapter may, at any time within two years after the cause of action accrues, apply to the Commission for an order awarding actual damages proximately caused by such violation. (b) Rules and regulations; control over right of appeal The Commission may promulgate such rules, regulations, and orders as it deems necessary or appropriate for the efficient and expeditious administration of this section. Notwithstanding any other provision of law, such rules, regulations, and orders may prescribe, or otherwise condition, without limitation, the form, filing, and service of pleadings or orders, the nature and scope of discovery, counterclaims, motion practice (including the grounds for dismissal of any claim or counterclaim), hearings (including the waiver thereof, which may relate to the amount in controversy), rights of appeal, if any, and all other matters governing proceedings before the Commission under this section. (c) Bond requirement when complainant is nonresident; waiver In case a complaint is made by a nonresident of the United States, the complainant shall be required, before any formal action is taken on his complaint, to furnish a bond in double the amount of the claim conditioned upon the payment of costs, including a reasonable attorney's fee for the respondent if the respondent shall prevail, and any reparation award that may be issued by the Commission against the complainant on any counterclaim by respondent: Provided, That the Commission shall have authority to waive the furnishing of a bond by a complainant who is a resident of a country which permits the filing of a complaint by a resident of the United States without the furnishing of a bond. (d) Enforcement of reparation award If any person against whom an award has been made does not pay the reparation award within the time specified in the Commission's order, the complainant, or any person for whose benefit such order was made, within three years of the date of the order, may file a certified copy of the order of the Commission, in the district court of the United States for the district in which he resides or in which is located the principal place of business of the respondent, for enforcement of such reparation award by appropriate orders. The orders, writs, and processes of such district court may in such case run, be served, and be returnable anywhere in the United States. The petitioner shall not be liable for costs in the district court, nor for costs at any subsequent state of the proceedings, unless they accrue upon his appeal. If the petitioner finally prevails, he shall be allowed a reasonable attorney's fee, to be taxed and collected as a part of the costs of the suit. Subject to the right of appeal under subsection (e) of this section, an order of the Commission awarding reparations shall be final and conclusive. (e) Review Any order of the Commission entered hereunder shall be reviewable on petition of any party aggrieved thereby, by the United States Court of Appeals for any circuit in which a hearing was held, or if no hearing was held, any circuit in which the appellee is located, under the procedure provided in section 9 of this title. Such appeal shall not be effective unless within 30 days from and after the date of the reparation order the appellant also files with the clerk of the court a bond in double the amount of the reparation awarded against the appellant conditioned upon the payment of the judgment entered by the court, plus interest and costs, including a reasonable attorney's fee for the appellee, if the appellee shall prevail. Such bond shall be in the form of cash, negotiable securities having a market value at least equivalent to the amount of bond prescribed, or the undertaking of a surety company on the approved list of sureties issued by the Treasury Department of the United States. The appellee shall not be liable for costs in said court. If the appellee prevails, he shall be allowed a reasonable attorney's fee to be taxed and collected as a part of his costs. (f) Automatic bar from trading and suspension for noncompliance; effect of appeal Unless the party against whom a reparation order has been issued shows to the satisfaction of the Commission within fifteen days from the expiration of the period allowed for compliance with such order that either an appeal as herein authorized has been taken or payment of the full amount of the order (or any agreed settlement thereof) has been made, such party shall be prohibited automatically from trading on all contract markets and, if the party is registered with the Commission, such registration shall be suspended automatically at the expiration of such fifteen-day period until such party shows to the satisfaction of the Commission that payment of such amount with interest thereon to date of payment has been made: Provided, That if on appeal the appellee prevails or if the appeal is dismissed, the automatic prohibition against trading and suspension of registration shall become effective at the expiration of thirty days from the date of judgment on the appeal, but if the judgment is stayed by a court of competent jurisdiction, the suspension shall become effective ten days after the expiration of such stay, unless prior thereto the judgment of the court has been satisfied. (g) Effective date The provisions of this section shall not become effective until fifteen months after October 23, 1974: Provided, That claims which arise within one year immediately prior to the effective date of this section may be heard by the Commission after such fifteen months period. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 14, as added Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 106, 88 Stat. 1393, and amended Apr. 16, 1975, Pub. L. 94-16, Sec. 3, 89 Stat. 77; Sept. 30, 1978, Pub. L. 95-405, Sec. 21, 92 Stat. 875; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 231, 96 Stat. 2319.) -MISC1- AMENDMENTS 1983 - Subsec. (a). Pub. L. 97-444, Sec. 231(1), substituted provisions relating to complaints against violations by persons 'registered under this chapter' for provisions relating to complaints against persons 'registered or required to be registered under section 6d, 6e, 6j, or 6m of this title', and substituted provisions for application to Commission for an award of actual damages caused by such violation, for provisions authorizing application to Commission by petition, and forwarding of complaint, if warranted, to respondent for satisfaction or answer. Subsec. (b). Pub. L. 97-444, Sec. 231(2), substituted provisions relating to promulgation by Commission of rules, regulations, and orders necessary or appropriate for administration of this section, including rules of practice and procedure governing proceedings before the Commission, for provisions relating to investigation and service of complaint by Commission, and hearing thereon before an Administrative Law Judge, except that where amount claimed as damages did not exceed $5,000, hearing need not be held, and proofs could be supplied by deposition or verified statements of fact. Subsec. (c). Pub. L. 97-444, Sec. 231(3), (4), redesignated subsec. (d) as (c). Former subsec. (c), which provided that after opportunity for hearing on complaints where the damages claimed exceeded the sum of $5,000 had been provided or waived and on complaints where damages claimed did not exceed the sum of $5,000 not requiring hearing as provided herein, Commission would determine whether or not the respondent had violated any provision of this chapter or any rule, regulation, or order thereunder, was struck out. Subsec. (d). Pub. L. 97-444, Sec. 231(4), (5), redesignated subsec. (f) as (d) and substituted 'subsection (e)' for 'subsection (g)'. Former subsec. (d) was redesignated (c). Subsec. (e). Pub. L. 97-444, Sec. 231(3), (4), redesignated subsec. (g) as (e). Former subsec. (e), which provided that if, after a hearing on a complaint made by any person under subsection (a) of this section, or without hearing as provided in subsections (b) and (c) of this section, or upon failure of the party complained against to answer a complaint duly served within the time prescribed, or to appear at a hearing after being duly notified, the Commission determined that the respondent had violated any provision of this chapter, or any rule, regulation, or order thereunder, the Commission would unless the offender had already made reparation to the person complaining, determine the amount of damage, if any, to which such person was entitled as a result of such violation and would make an order directing the offender to pay to such person complaining such amount on or before the date fixed in the order, and that if, after the respondent had filed his answer to the complaint, it appeared therein that the respondent had admitted liability for a portion of the amount claimed in the complaint as damages, the Commission under such rules and regulations as it would prescribe, unless the respondent had already made reparation to the person complaining, could issue an order directing the respondent to pay to the complainant the undisputed amount on or before the date fixed in the order, leaving the respondent's liability for the disputed amount for subsequent determination, with the remaining disputed amount to be determined in the same manner and under the same procedure as it would have been determined if no order had been issued by the Commission with respect to the undisputed sum, was struck out. Subsec. (f). Pub. L. 97-444, Sec. 231(4), (6), redesignated subsec. (h) as (f), made certain grammatical changes, and inserted provision allowing party against whom a reparation order has been issued to show compliance by payment of the full amount of the order or any agreed settlement thereof. Subsecs. (g) to (i). Pub. L. 97-444, Sec. 231(4), redesignated subsecs. (g), (h), and (i), as (e), (f), and (g), respectively. 1978 - Subsec. (a). Pub. L. 95-405, Sec. 21(1), substituted 'who is registered or required to be registered' for 'registered'. Subsecs. (b), (c). Pub. L. 95-405, Sec. 21(2), (3), substituted '$5,000' for '$2,500' wherever appearing. 1975 - Subsec. (i). Pub. L. 94-16 substituted 'fifteen months' for 'one year' in two places, and 'one year' for 'nine months'. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective 120 days after Jan. 11, 1983, or such earlier date as the Commission shall prescribe by regulation, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 6m, 25 of this title. ------DocID 9105 Document 73 of 2641------ -CITE- 7 USC Sec. 19 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 19. Antitrust laws; anticompetitive means -STATUTE- The Commission shall take into consideration the public interest to be protected by the antitrust laws and endeavor to take the least anticompetitive means of achieving the objectives of this chapter, as well as the policies and purposes of this chapter, in issuing any order or adopting any Commission rule or regulation, or in requiring or approving any bylaw, rule, or regulation of a contract market or registered futures association established pursuant to section 21 of this title. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 15, as added Oct. 23, 1974, Pub. L. 93-463, title I, Sec. 107, 88 Stat. 1395.) -REFTEXT- REFERENCES IN TEXT The antitrust laws, referred to in text, are classified generally to chapter 1 (Sec. 1 et seq.) of Title 15, Commerce and Trade. -MISC2- EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. ------DocID 9106 Document 74 of 2641------ -CITE- 7 USC Sec. 20 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 20. Market reports -STATUTE- (a) Information The Commission may conduct regular investigations of the markets for goods, articles, services, rights, and interests which are the subject of futures contracts, and furnish reports of the findings of these investigations to the public on a regular basis. These market reports shall, where appropriate, include information on the supply, demand, prices, and other conditions in the United States and other countries with respect to such goods, articles, services, rights, interests, and information respecting the futures markets. (b) Avoidance of duplication The Commission shall cooperate with the Department of Agriculture and any other Department or Federal agency which makes market investigations to avoid unnecessary duplication of information-gathering activities. (c) Furnishing of information; confidentiality The Department of Agriculture and any other Department or Federal agency which has market information sought by the Commission shall furnish it to the Commission upon the request of any authorized employee of the Commission. The Commission shall abide by any rules of confidentiality applying to such information. (d) Disclosure of business transactions, market positions, trade secrets, or names of customers The Commission shall not disclose in such reports data and information which would separately disclose the business transactions or market positions of any person and trade secrets or names of customers except as provided in section 12 of this title. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 16, as added Oct. 23, 1974, Pub. L. 93-463, title IV, Sec. 414, 88 Stat. 1414, and amended Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 232, 96 Stat. 2320.) -MISC1- AMENDMENTS 1983 - Subsec. (d). Pub. L. 97-444 prohibited disclosure of market positions. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. STUDY OF TRADING IN CATTLE FUTURES CONTRACTS Pub. L. 99-641, title I, Sec. 111, Nov. 10, 1986, 100 Stat. 3561, provided that: '(a) Study. - The Comptroller General of the United States shall conduct and complete a comprehensive study of the effect of trading in contracts for the future delivery of live cattle on the cash market price of live cattle, with particular emphasis on - '(1) whether the reaction of the live cattle futures market to the results of the milk production termination program in March 1986, conducted under section 201(d)(3) of the Agricultural Act of 1949 (7 U.S.C. 1446(d)(3)), was based on and accurately reflected the then prevailing conditions of supply and demand; '(2) the effect of the trading in contracts for the future delivery of live cattle on - '(i) the price relationship between feeder cattle and fed cattle; '(ii) the price discovery process with respect to live cattle; and '(iii) price competition within the cattle industry; '(3) the effect of the use of packer contracts, as a means of obtaining slaughter cattle, on the increase in short hedging in contracts for the future delivery of live cattle and the effect of this increase in short hedging on prices in the futures and cash markets; '(4) the effect on the ability of the cash markets to accurately reflect prevailing conditions of supply and demand if packer contracts become the prevalent method of marketing fed cattle; '(5) whether the present delivery system for contracts for the future delivery of live cattle creates any bias (either upward or downward) in the cash price for cattle; '(6) whether the present delivery system for contracts for the future delivery of live cattle creates price volatility during the delivery month; and '(7) whether there are advantages or disadvantages to a cash settlement system in lieu of the present delivery system in the case of contracts for the future delivery of live cattle. '(b) Reports. - '(1) Preliminary report. - Not later than January 15, 1987, the Comptroller General shall submit a preliminary report on the results of the study required under subsection (a) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. '(2) Final report. - Not later than 1 year after the date of enactment of this Act (Nov. 10, 1986), the Comptroller General shall submit to such committees a detailed final report of the results of the study required under subsection (a).' POTATO FUTURES STUDY; SUBMISSION OF REPORT TO CONGRESS Pub. L. 95-405, Sec. 27, Sept. 30, 1978, 92 Stat. 877, required, within one year of Oct. 1, 1978, Secretary of Agriculture to (1) conduct a comprehensive study of marketing of Irish potatoes and of making and trading of contracts of sale for future delivery of Irish potatoes, including rules and regulations pertaining to such trading issued by Commodity Futures Trading Commission or any contract market designated by Commission; and (2) submit to each House of Congress a detailed report on results of such study, and that report should also include any proposals Secretary may have concerning any legislation needed to implement such recommendations and concerning any modifications and rules and regulations needed to improve regulation of such contracts by Commission or any contract market designated by Commission. ------DocID 9107 Document 75 of 2641------ -CITE- 7 USC Sec. 21 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 21. Registered futures associations -STATUTE- (a) Registration statement Any association of persons may be registered with the Commission as a registered futures association pursuant to subsection (b) of this section, under the terms and conditions hereinafter provided in this section, by filing with the Commission for review and approval a registration statement in such form as the Commission may prescribe, setting forth the information, and accompanied by the documents, below specified: (1) Data as to its organization, membership, and rules of procedure, and such other information as the Commission may by rules and regulations require as necessary or appropriate in the public interest; and (2) Copies of its constitution, charter, or articles of incorporation or association, with all amendments thereto, and of its bylaws, and of any rules or instruments corresponding to the foregoing, whatever the name, hereinafter in this section collectively referred to as the 'rules of the association'. (b) Standards for registration; Commission findings An applicant association shall not be registered as a futures association unless the Commission finds, under standards established by the Commission, that - (1) such association is in the public interest and that it will be able to comply with the provisions of this section and the rules and regulations thereunder and to carry out the purposes of this section; (FOOTNOTE 1) (FOOTNOTE 1) So in original. The semicolon probably should be a period. (2) the rules of the association provide that any person registered under this chapter, contract market, or any other person designated pursuant to the rules of the Commission as eligible for membership may become a member of such association, except such as are excluded pursuant to paragraph (3) or (4) of this subsection, or a rule of the association permitted under this subparagraph. The rules of the association may restrict membership in such association on such specified basis relating to the type of business done by its members, or on such other specified and appropriate basis, as appears to the Commission to be necessary or appropriate in the public interest and to carryout the purpose of this section. Rules adopted by the association may provide that the association may, unless the Commission directs otherwise in cases in which the Commission finds it appropriate in the public interest so to direct, deny admission to, or refuse to continue in such association any person if (i) such person, whether prior or subsequent to becoming registered as such, or (ii) any person associated within the meaning of 'associated person' as set forth in section 6k of this title, whether prior or subsequent to becoming so associated, has been and is suspended or expelled from a contract market or has been and is barred or suspended from being associated with all members of such contract market, for violation of any rule of such contract market; (FOOTNOTE 1) (3) the rules of the association provide that, except with the approval or at the direction of the Commission in cases in which the Commission finds it appropriate in the public interest so to approve or direct, no person shall be admitted to or continued in membership in such association, if such person - (A) has been and is suspended or expelled from a registered futures association or from a contract market or has been and is barred or suspended from being associated with all members of such association or from being associated with all members of such contract market, for violation of any rule of such association or contract market which prohibits any act or transaction constituting conduct inconsistent with just and equitable principles of trade, or requires any act the omission of which constitutes conduct inconsistent with just and equitable principles of trade; or (B) is subject to an order of the Commission denying, suspending, or revoking his registration pursuant to section 9 of this title, or expelling or suspending him from membership in a registered futures association or a contract market, or barring or suspending him from being associated with a futures commission merchant; or (C) whether prior or subsequent to becoming a member, by his conduct while associated with a member, was a cause of any suspension, expulsion, or order of the character described in clause (A) or (B) which is in effect with respect to such member, and in entering such a suspension, expulsion, or order, the Commission or any such contract market or association shall have jurisdiction to determine whether or not any person was a cause thereof; or (D) has associated with him any person who is known, or in the exercise of reasonable care should be known, to him to be a person who would be ineligible for admission to or continuance in membership under clause (A), (B), or (C) of this paragraph. (4) the rules of the association provide that, except with the approval or at the direction of the Commission in cases in which the Commission finds it appropriate in the public interest so to approve or direct, no person shall become a member and no natural person shall become a person associated with a member, unless such person is qualified to become a member or a person associated with a member in conformity with specified and appropriate standards with respect to the training, experience, and such other qualifications of such person as the association finds necessary or desirable, and in the case of a member, the financial responsibility of such a member. For the purpose of defining such standards and the application thereof, such rules may - (A) appropriately classify prospective members (taking into account relevant matters, including type or nature of business done) and persons proposed to be associated with members. (B) specify that all or any portion of such standard shall be applicable to any such class. (C) require persons in any such class to pass examinations prescribed in accordance with such rules. (D) provide that persons in any such class other than prospective members and partners, officers and supervisory employees (which latter term may be defined by such rules and as so defined shall include branch managers of members) of members, may be qualified solely on the basis of compliance with specified standards of training and such other qualifications as the association finds appropriate. (E) provide that applications to become a member or a person associated with a member shall set forth such facts as the association may prescribe as to the training, experience, and other qualifications (including, in the case of an applicant for membership, financial responsibility) of the applicant and that the association shall adopt procedures for verification of qualifications of the applicant, which may require the applicant to be fingerprinted and to submit, or cause to be submitted, such fingerprints to the Attorney General for identification and appropriate processing. Notwithstanding any other provision of law, such an association may receive from the Attorney General all the results of such identification and processing. (F) require any class of persons associated with a member to be registered with the association in accordance with procedures specified by such rules (and any application or document supplemental thereto required by such rules of a person seeking to be registered with such association shall, for the purposes of section 9 of this title, be deemed an application required to be filed under this section). (5) the rules of the association assure a fair representation of its members in the adoption of any rule of the association or amendment thereto, the selection of its officers and directors, and in all other phases of the administration of its affairs. (6) the rules of the association provide for the equitable allocation of dues among its members, to defray reasonable expenses of administration. (7) the rules of the association are designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, in general, to protect the public interest, and to remove impediments to and perfect the mechanism of free and open futures trading. (8) the rules of the association provide that its members and persons associated with its members shall be appropriately disciplined, by expulsion, suspension, fine, censure, or being suspended or barred from being associated with all members, or any other fitting penalty, for any violation of its rules. (9) the rules of the association provide a fair and orderly procedure with respect to the disciplining of members and persons associated with members and the denial of membership to any person seeking membership therein or the barring of any person from being associated with a member. In any proceeding to determine whether any member or other person shall be disciplined, such rules shall require that specific charges be brought; that such member or person shall be notified of, and be given an opportunity to defend against, such charges; that a record shall be kept; and that the determination shall include - (A) a statement setting forth any act or practice in which such member or other person may be found to have engaged, or which such member or other person may be found to have omitted. (B) a statement setting forth the specific rule or rules of the association of which any such act or practice, or omission to act, is deemed to be in violation. (C) a statement whether the acts or practices prohibited by such rule or rules, or the omission of any act required thereby, are deemed to constitute conduct inconsistent with just and equitable principles of trade. (D) a statement setting forth the penalty imposed. In any proceeding to determine whether a person shall be denied membership or whether any person shall be barred from being associated with a member, such rules shall provide that the person shall be notified of, and be given an opportunity to be heard upon, the specific grounds for denial or bar which are under consideration; that a record shall be kept; and that the determination shall set forth the specific grounds upon which the denial or bar is based. (10) the rules of the association provide a fair, equitable, and expeditious procedure through arbitration or otherwise for the settlement of customers' claims and grievances against any member or employee thereof: Provided, That (i) the use of such procedure by a customer shall be voluntary and (ii) the term 'customer' as used in this paragraph shall not include another member of the association. (c) Suspension of registration The Commission may, after notice and opportunity for hearing, suspend the registration of any futures association if it finds that the rules thereof do not conform to the requirements of the Commission, and any such suspension shall remain in effect until the Commission issues an order determining that such rules have been modified to conform with such requirements. (d) Fees and charges In addition to the fees and charges authorized by section 12a(1) of this title, each person registered under this chapter, who is not a member of a futures association registered pursuant to this section, shall pay to the Commission such reasonable fees and charges as may be necessary to defray the costs of additional regulatory duties required to be performed by the Commission because such person is not a member of a registered futures association. The Commission shall establish such additional fees and charges by rules and regulations. (e) Registered persons not members of registered associations Any person registered under this chapter, who is not a member of a futures association registered pursuant to this section, in addition to the other requirements and obligations of this chapter and the regulations thereunder shall be subject to such other rules and regulations as the Commission may find necessary to protect the public interest and promote just and equitable principles of trade. (f) Denial of registration Upon filing of an application for registration pursuant to subsection (a) of this section, the Commission may by order grant such registration if the requirements of this section are satisfied. If, after appropriate notice and opportunity for hearing, it appears to the Commission that any requirement of this section is not satisfied, the Commission shall by order deny such registration. (g) Withdrawal from registration; notice of withdrawal A registered futures association may, upon such reasonable notice as the Commission may deem necessary in the public interest, withdraw from registration by filing with the Commission a written notice of withdrawal in such form as the Commission may by rules and regulations prescribe. (h) Commission review of disciplinary actions taken by registered futures associations (1) If any registered futures association takes any final disciplinary action against a member of the association or a person associated with a member, denies admission to any person seeking membership therein, or bars any person from being associated with a member, the association promptly shall give notice thereof to such member or person and file notice thereof with the Commission. The notice shall be in such form and contain such information as the Commission, by rule or regulation, may prescribe as necessary or appropriate to carry out the purposes of this chapter. (2) Any action with respect to which a registered futures association is required by paragraph (1) to file notice shall be subject to review by the Commission on its motion, or on application by any person aggrieved by the action. Such application shall be filed within 30 days after the date such notice is filed with the Commission and received by the aggrieved person, or within such longer period as the Commission may determine. (3)(A) Application to the Commission for review, or the institution of review by the Commission on its own motion, shall not operate as a stay of such action unless the Commission otherwise orders, summarily or after notice and opportunity for hearing on the question of a stay (which hearing may consist solely of the submission of affidavits or presentation of oral arguments). (B) The Commission shall establish procedures for expedited consideration and determination of the question of a stay. (i) Notice; hearing; findings; cancellation, reduction, or remission of penalties; review by court of appeals (1) In a proceeding to review a final disciplinary action taken by a registered futures association against a member thereof or a person associated with a member, after appropriate notice and opportunity for a hearing (which hearing may consist solely of consideration of the record before the association and opportunity for the presentation of supporting reasons to affirm, modify, or set aside the sanction imposed by the association) - (A) if the Commission finds that - (i) the member or person associated with a member has engaged in the acts or practices, or has omitted the acts, that the association has found the member or person to have engaged in or omitted; (ii) the acts or practices, or omissions to act, are in violation of the rules of the association specified in the determination of the association; and (iii) such rules are, and were applied in a manner, consistent with the purposes of this chapter, the Commission, by order, shall so declare and, as appropriate, affirm the sanction imposed by the association, modify the sanction in accordance with paragraph (2), or remand the case to the association for further proceedings; or (B) if the Commission does not make any such finding, the Commission, by order, shall set aside the sanction imposed by the association and, if appropriate, remand the case to the association for further proceedings. (2) If, after a proceeding under paragraph (1), the Commission finds that any penalty imposed on a member or person associated with a member is excessive or oppressive, having due regard for the public interest, the Commission, by order, shall cancel, reduce, or require the remission of the penalty. (3) In a proceeding to review the denial of membership in a registered futures association or the barring of any person from being associated with a member, after appropriate notice and opportunity for a hearing (which hearing may consist solely of consideration of the record before the association and opportunity for the presentation of supporting reasons to affirm, modify, or set aside the action of the association) - (A) if the Commission finds that - (i) the specific grounds on which the denial or bar is based exist in fact; (ii) the denial or bar is in accordance with the rules of the association; and (iii) such rules are, and were applied in a manner, consistent with the purposes of this chapter, the Commission, by order, shall so declare and, as appropriate, affirm or modify the action of the association, or remand the case to the association for further proceedings; or (B) if the Commission does not make any such finding, the Commission, by order, shall set aside the action of the association and require the association to admit the applicant to membership or permit the person to be associated with a member, or, as appropriate, remand the case to the association for further proceedings. (4) Any person (other than a registered futures association) aggrieved by a final order of the Commission entered under this subsection may file a petition for review with a United States court of appeals in the same manner as provided in section 9 of this title. (j) Changes or additions to association rules Every registered futures association shall file with the Commission in accordance with such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest, copies of any changes in or additions to the rules of the association, and such other information and documents as the Commission may require to keep current or to supplement the registration statement and documents filed pursuant to subsection (a) of this section. A registered futures association shall submit to the Commission any change in or addition to its rules and may make such rules effective ten days after receipt of such submission by the Commission unless, within the ten-day period, the registered futures association requests review and approval thereof by the Commission or the Commission notifies such registered futures association in writing of its determination to review such rules for approval. The Commission shall approve such rules if such rules are determined by the Commission to be consistent with the requirements of this section and not otherwise in violation of this chapter or the regulations issued pursuant to this chapter, and the Commission shall disapprove, after appropriate notice and opportunity for hearing, any such rule which the Commission determines at any time to be inconsistent with the requirements of this section or in violation of this chapter or the regulations issued pursuant to this chapter. If the Commission does not approve or institute disapproval proceedings with respect to any rule within one hundred and eighty days after receipt or within such longer period of time as the registered futures association may agree to, or if the Commission does not conclude a disapproval proceeding with respect to any rule within one year after receipt or within such longer period as the registered futures association may agree to, such rule may be made effective by the registered futures association until such time as the Commission disapproves such rule in accordance with this subsection. (k) Abrogation of association rules; requests to associations by Commission to alter or supplement rules (1) The Commission is authorized by order to abrogate any rule of a registered futures association, if after appropriate notice and opportunity for hearing, it appears to the Commission that such abrogation is necessary or appropriate to assure fair dealing by the members of such association, to assure a fair representation of its members in the administration of its affairs or effectuate the purposes of this section. (2) The Commission may in writing request any registered futures association to adopt any specified alteration or supplement to its rules with respect to any of the matters hereinafter enumerated. If such association fails to adopt such alteration or supplement within a reasonable time, the Commission is authorized by order to alter or supplement the rules of such association in the manner theretofore requested, or with such modifications of such alteration or supplement as it deems necessary if, after appropriate notice and opportunity for hearing, it appears to the Commission that such alteration or supplement is necessary or appropriate in the public interest or to effectuate the purposes of this section, with respect to - (A) the basis for, and procedure in connection with, the denial of membership or the barring from being associated with a member or the disciplining of members or persons associated with members, or the qualifications required for members or natural persons associated with members or any class thereof; (B) the method for adoption of any change in or addition to the rules of the association; (C) the method of choosing officers and directors. (l) Suspension and revocation of registration; expulsion of members; removal of association officers or directors The Commission is authorized, if such action appears to it to be necessary or appropriate in the public interest or to carry out the purposes of this section - (1) after appropriate notice and opportunity for hearing, by order to suspend for a period not exceeding twelve months or to revoke the registration of a registered futures association, if the Commission finds that such association has violated any provisions of this chapter or any rule or regulation thereunder, or has failed to enforce compliance with its own rules, or has engaged in any other activity tending to defeat the purposes of this chapter; (2) after appropriate notice and opportunity for hearing, by order to suspend for a period not exceeding twelve months or to expel from a registered futures association any member thereof, or to suspend for a period not exceeding twelve months or to bar any person from being associated with a member thereof, if the Commission finds that such member or person - (A) has violated any provision of this chapter or any rule or regulation thereunder, or has effected any transaction for any other person who, he had reason to believe, was violating with respect to such transaction any provision of this chapter or any rule or regulation thereunder; or (B) has willfully violated any provision of this chapter, or of any rule, regulation, or order thereunder, or has effected any transaction for any other person who, he had reason to believe, was willfully violating with respect to such transaction any provision of this chapter or rule, regulation, or order. (FOOTNOTE 2) (FOOTNOTE 2) So in original. The period probably should be a semicolon. (3) after appropriate notice and opportunity for hearing, by order to remove from office any officer or director of a registered futures association who, the Commission finds, has willfully failed to enforce the rules of the association, or has willfully abused his authority. (m) Rules requiring membership in associations Notwithstanding any other provision of law, the Commission may approve rules of futures associations that, directly or indirectly, require persons eligible for membership in such associations to become members of at least one such association, upon a determination by the Commission that such rules are necessary or appropriate to achieve the purposes and objectives of this chapter. (n) Reports to Congress The Commission shall include in its annual reports to Congress information concerning any futures associations registered pursuant to this section and the effectiveness of such associations in regulating the practices of the members. (o) Delegation to futures associations of registrative functions; discretionary review by Commission; judicial appeal (1) The Commission may require any futures association registered pursuant to this section to perform any portion of the registration functions under this chapter with respect to each member of the association other than a contract market and with respect to each associated person of such member, in accordance with rules, notwithstanding any other provision of law, adopted by such futures association and submitted to the Commission pursuant to subsection (j) of this section, and subject to the provisions of this chapter applicable to registrations granted by the Commission. (2) In performing any Commission registration function authorized by the Commission under section 12a(10) of this title, this section, or any other applicable provisions of this chapter, a futures association may issue orders (A) to refuse to register any person, (B) to register conditionally any person, (C) to suspend the registration of any person, (D) to place restrictions on the registration of any person, or (E) to revoke the registration of any person. If such an order is the final decision of the futures association, any person against whom the order has been issued may petition the Commission to review the decision. The Commission may on its own initiative or upon petition decline review or grant review and affirm, set aside, or modify such an order of the futures association; and the findings of the futures association as to the facts, if supported by the weight of the evidence, shall be conclusive. Unless the Commission grants review under this section of an order concerning registration issued by a futures association, the order of the futures association shall be considered to be an order issued by the Commission. (3) Nothing in this section shall affect the Commission's authority to review the granting of a registration application by a registered futures association that is performing any Commission registration function authorized by the Commission under section 12a(10) of this title, this section, or any other applicable provision of this chapter. (4) If a person against whom a futures association has issued a registration order under this subsection petitions the Commission to review that order and the Commission declines to take review, such person may file a petition for review with a United States court of appeals, in accordance with section 9 of this title. (p) Establishment of rules for futures associations; approval by Commission Notwithstanding any other provision of this section, each futures association registered under this section on January 11, 1983, shall adopt and submit for Commission approval not later than ninety days after such date, and each futures association that applies for registration after such date shall adopt and include with its application for registration, rules of the association that require the association to - (1) establish training standards and proficiency testing for persons involved in the solicitation of transactions subject to the provisions of this chapter, supervisors of such persons, and all persons for which it has registration responsibilities, and a program to audit and enforce compliance with such standards; (2) establish minimum capital, segregation, and other financial requirements applicable to its members for which such requirements are imposed by the Commission and implement a program to audit and enforce compliance with such requirements, except that such requirements may not be less stringent than those imposed on such firms by this chapter or by Commission regulation; and (3) establish minimum standards governing the sales practices of its members and persons associated therewith for transactions subject to the provisions of this chapter. (q) Program for implementation of rules Each futures association registered under this section shall develop a comprehensive program that fully implements the rules approved by the Commission under this section as soon as practicable but not later than September 30, 1985, in the case of any futures association registered on January 11, 1983, and not later than two and one-half years after the date of registration in the case of any other futures association registered under this section. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 17, as added Oct. 23, 1974, Pub. L. 93-463, title III, Sec. 301, 88 Stat. 1406, and amended Sept. 30, 1978, Pub. L. 95-405, Sec. 22, 92 Stat. 876; Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 217(b), 233, 96 Stat. 2307, 2320; Nov. 10, 1986, Pub. L. 99-641, title I, Sec. 107, 108, 110(6), (7), 100 Stat. 3558, 3559, 3561.) -MISC1- AMENDMENTS 1986 - Subsec. (b)(2). Pub. L. 99-641, Sec. 110(6), substituted 'within' for 'with in' before 'the meaning'. Subsec. (h). Pub. L. 99-641, Sec. 107, amended subsec. (h) generally. Prior to amendment, subsec. (h) read as follows: 'If any registered futures association takes any disciplinary action against any member thereof or any person associated with such a member or denies admission to any person seeking membership therein, or bars any person from being associated with a member, such action shall be subject to review by the Commission, on its own motion, or upon application by any person aggrieved thereby filed within thirty days after such action has been taken or within such longer period as the Commission may determine. Application to the Commission for review, or the institution of review by the Commission on its own motion, shall operate as a stay of such action until an order is issued upon such review pursuant to subsection (i) of this section unless the Commission otherwise orders, after notice and opportunity for hearing on the question of a stay (which hearing may consist solely of affidavits and oral arguments).' Subsec. (i). Pub. L. 99-641, Sec. 107, amended subsec. (i) generally. Prior to amendment, subsec. (i) read as follows: '(1) In a proceeding to review disciplinary action taken by a registered futures association against a member thereof or a person associated with a member, if the Commission, after appropriate notice and opportunity for hearing, upon consideration of the record before the association and such other evidence as it may deem relevant - '(A) finds that such member or person has engaged in such acts or practices, or has omitted such act, as the association has found him to have engaged in or omitted, and '(B) determines that such acts or practices, or omission to act, are in violation of such rules of the association as have been designated in the determination of the association, the Commission shall by order dismiss the proceeding, unless it appears to the Commission that such action should be modified in accordance with paragraph (2) of this subsection. The Commission shall likewise determine whether the acts or practices prohibited, or the omission of any act required, by any such rule constitute conduct inconsistent with just and equitable principles of trade, and shall so declare. If it appears to the Commission that the evidence does not warrant the finding required in clause (A), or if the Commission determines that such acts or practices as are found to have been engaged in are not prohibited by the designated rule or rules of the association, or that such act as is found to have been omitted is not required by such designated rule or rules, the Commission shall by order set aside the action of the association. '(2) If, after appropriate notice and opportunity for hearing, the Commission finds that any penalty imposed upon a member or person associated with a member is excessive or oppressive, having due regard to the public interest, the Commission shall by order cancel, reduce, or require the remission of such penalty. '(3) In any proceeding to review the denial of membership in a registered futures association or the barring of any person from being associated with a member, if the Commission, after appropriate notice and hearing, and upon consideration of the record before the association and such other evidence as it may deem relevant, determines that the specific grounds on which such denial or bar is based exist in fact and are valid under this section, the Commission shall by order dismiss the proceeding; otherwise, the Commission shall by order set aside the action of the association and require it to admit the applicant to membership therein, or to permit such person to be associated with a member.' Subsec. (j). Pub. L. 99-641, Sec. 108, struck out sentence which read as follows: 'The Commission shall approve such rules within thirty days of their receipt if Commission approval is requested under this subsection or within thirty days after the Commission determines to review for approval any other rules unless the Commission notifies the registered futures association of its inability to complete such approval or review within such period of time.' Subsec. (k)(1). Pub. L. 99-641, Sec. 110(7), substituted 'section' for 'title'. 1983 - Subsec. (b)(4)(E). Pub. L. 97-444, Sec. 233(1), inserted ', which may require the applicant to be fingerprinted and to submit, or cause to be submitted, such fingerprints to the Attorney General for identification and appropriate processing. Notwithstanding any other provision of law, such an association may receive from the Attorney General all the results of such identification and processing' after 'adopt procedures for verification of qualifications of the applicant'. Subsec. (b)(10). Pub. L. 97-444, Sec. 217(b), required association rules to provide for 'expeditious' procedure, redesignated cl. (iv) as (ii) and substituted ' 'customer' as used in this paragraph shall not include another member of the association' for ' 'customer' as used in this subsection shall not include a futures commission merchant or a floor broker', and struck out clauses '(ii) the procedure shall not be applicable to any claim in excess of $15,000, (iii) the procedure shall not result in any compulsory payment except as agreed upon between the parties,'. Subsec. (d). Pub. L. 97-444, Sec. 233(2), substituted 'section 12a(1) of this title' for 'section 12a(4) of this title'. Subsec. (h). Pub. L. 97-444, Sec. 233(3), substituted 'subsection (i) of this section' for 'subsection (k) of this section'. Subsec. (j). Pub. L. 97-444, Sec. 233(4), substituted 'A registered futures association shall submit to the Commission any change in or addition to its rules and may make such rules effective ten days after receipt of such submission by the Commission unless, within the ten-day period, the registered futures association requests review and approval thereof by the Commission or the Commission notifies such registered futures association in writing of its determination to review such rules for approval. The Commission shall approve such rules within thirty days of their receipt if Commission approval is requested under this subsection or within thirty days after the Commission determines to review for approval any other rules unless the Commission notifies the registered futures association of its inability to complete such approval or review within such period of time. The Commission shall approve such rules if such rules are determined by the Commission to be consistent with the requirements of this section and not otherwise in violation of this chapter or the regulations issued pursuant to this chapter, and the Commission shall disapprove, after appropriate notice and opportunity for hearing, any such rule which the Commission determines at any time to be inconsistent with the requirements of this section or in violation of this chapter or the regulations issued pursuant to this chapter. If the Commission does not approve or institute disapproval proceedings with respect to any rule within one hundred and eighty days after receipt or within such longer period of time as the registered futures association may agree to, or if the Commission does not conclude a disapproval proceeding with respect to any rule within one year after receipt or within such longer period as the registered futures association may agree to, such rule may be made effective by the registered futures association until such time as the Commission disapproves such rule in accordance with this subsection' for 'Any change in or addition to the rules of a registered futures association shall be submitted to the Commission for approval and shall take effect upon the thirtieth day after such approval by the Commission, or upon such earlier date as the Commission may determine, unless the Commission shall enter an order disapproving such change or addition; and the Commission shall enter such an order unless such change or addition appears to the Commission to be consistent with the requirements of this section and the provisions of this chapter'. Subsecs. (o) to (q). Pub. L. 97-444, Sec. 233(5), added subsecs. (o), (p), and (q). 1978 - Subsec. (b)(3)(B). Pub. L. 95-405, Sec. 22(1), struck out '(7 U.S.C. 9)' after 'section 9 of this title'. Subsec. (b)(10). Pub. L. 95-405, Sec. 22(2), substituted '$15,000' for '$5,000'. Subsec. (l)(1), (2)(A). Pub. L. 95-405, Sec. 22(3), substituted 'chapter' for 'section' wherever appearing. Subsecs. (m), (n). Pub. L. 95-405, Sec. 22(4), added subsec. (m) and redesignated former subsec. (m) as (n). EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as a note under section 2 of this title. EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 6p, 12a, 16a, 19, 25 of this title; title 15 section 78c. ------DocID 9108 Document 76 of 2641------ -CITE- 7 USC Sec. 22 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 22. Research and information programs; reports to Congress -STATUTE- (a) The Commission shall establish and maintain, as part of its ongoing operations, research and information programs to (1) determine the feasibility of trading by computer, and the expanded use of modern information system technology, electronic data processing, and modern communication systems by commodity exchanges, boards of trade, and by the Commission itself for purposes of improving, strengthening, facilitating, or regulating futures trading operations; (2) assist in the development of educational and other informational materials regarding futures trading for dissemination and use among producers, market users, and the general public; and (3) carry out the general purposes of this chapter. (b) The Commission shall include in its annual reports to Congress plans and findings with respect to implementing this section. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 18, as added Oct. 23, 1974, Pub. L. 93-463, title IV, Sec. 416, 88 Stat. 1415.) -MISC1- EFFECTIVE DATE For effective date of section, see section 418 of Pub. L. 93-463, set out as an Effective Date of 1974 Amendment note under section 2 of this title. ------DocID 9109 Document 77 of 2641------ -CITE- 7 USC Sec. 23 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 23. Standardized contracts for certain commodities -STATUTE- (a) Margin accounts or contracts and leverage accounts or contracts prohibited except as authorized Except as authorized under subsection (b) of this section, no person shall offer to enter into, enter into, or confirm the execution of, any transaction for the delivery of any commodity under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device that the Commission determines serves the same function or functions as such a standardized contract, or is marketed or managed in substantially the same manner as such a standardized contract. (b) Permission to enter into contracts for delivery of silver or gold bullion, bulk silver or gold coins, or platinum; rules and regulations (1) Subject to paragraph (2), no person shall offer to enter into, enter into, or confirm the execution of, any transaction for the delivery of silver bullion, gold bullion, bulk silver coins, bulk gold coins, or platinum under a standardized contract described in subsection (a) of this section, contrary to the terms of any rule, regulation, or order that the Commission shall prescribe, which may include terms designed to ensure the financial solvency of the transaction or prevent manipulation or fraud. Such rule, regulation, or order may be made only after notice and opportunity for hearing. The Commission may set different terms and conditions for transactions involving different commodities. (2) No person may engage in any activity described in paragraph (1) who is not permitted to engage in such activity, by the rules, regulations, and orders of the Commission in effect on November 10, 1986, until the Commission permits such person to engage in such activity in accordance with regulations issued in accordance with subsection (c)(2) of this section. (c) Survey of persons interested in engaging in transactions of silver and gold, etc.; assistance of futures association; regulations (1)(A) Not later than 2 years after November 10, 1986, the Commission shall - (i) with the assistance of a futures association registered under this chapter, conduct a survey concerning the persons interested in engaging in the business of offering to enter into, entering into, or confirming the execution of, the transactions described in subsection (b)(1) of this section; and (ii) transmit a report of the results of the survey to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. (B) Notwithstanding any other provision of law, for purposes of completing such report the Commission may direct, by rule, regulation, or order, a futures association registered under this chapter to render such assistance as the Commission shall specify. (C) Such report shall include the findings and any recommendations of the Commission concerning - (i) whether such transactions serve an economic purpose; (ii) the most efficient manner, consistent with the public interest, to permit additional persons to engage in the business of offering to enter into, entering into, and confirming the execution of such transactions; and (iii) the appropriate regulatory scheme to govern such transactions to ensure the financial solvency of such transactions and to prevent manipulation or fraud. (2) The report shall also include Commission regulations governing such transactions. The regulations shall provide for permitting additional persons to engage in such transactions. The regulations shall become effective on the expiration of 90 calendar days on which either House of Congress is in session after the date of the transmittal of the report to Congress. The regulations - (A) may authorize or require, notwithstanding any other provision of law, a futures association registered under this chapter to perform such responsibilities in connection with such transactions as the Commission may specify; and (B) may require that permission for additional persons to engage in such business be given on a gradual basis, so as not to place an undue burden on the resources of the Commission. (d) Savings provision This section shall not affect any rights or obligations arising out of any transaction subject to this section, as in effect before November 10, 1986, that was entered into, or the execution of which was confirmed, before November 10, 1986. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 19, as added Sept. 30, 1978, Pub. L. 95-405, Sec. 23, 92 Stat. 876, and amended Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 234, 96 Stat. 2322; Nov. 10, 1986, Pub. L. 99-641, title I, Sec. 109, 100 Stat. 3560.) -MISC1- PRIOR PROVISIONS Provisions similar to those appearing in subsec. (b) were formerly contained in section 15a of this title. AMENDMENTS 1986 - Subsec. (a). Pub. L. 99-641 amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: 'No person shall offer to enter into, enter into, or confirm the execution of, any transaction for the delivery of any commodity specifically set forth in section 2 of this title prior to October 23, 1974, under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device that the Commission determines serves the same function or functions as such a standardized contract, or is marketed or managed in substantially the same manner as such a standardized contract.' Subsec. (b). Pub. L. 99-641 amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: 'No person shall offer to enter into, enter into, or confirm the execution of any transaction for the delivery of silver bullion, gold bullion, or bulk silver coins or bulk gold coins, under a standardized contract described in subsection (a) of this section, contrary to any rule, regulation, or order of the Commission designed to ensure the financial solvency of the transaction or prevent manipulation or fraud: Provided, That such rule, regulation, or order may be made only after notice and opportunity for hearing.' Subsec. (c). Pub. L. 99-641 amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: 'The Commission shall regulate any transactions under a standardized contract described in subsection (a) of this section involving commodities described in subsection (b) of this section or any other commodities (except those commodities described in subsection (a) of this section) under such terms and conditions as the Commission shall prescribe by rule, regulation, or order made only after notice and opportunity for a hearing. The Commission may set different terms and conditions for such transactions involving different commodities. Notwithstanding any other provision of this section, the Commission may prohibit any transaction for the delivery of any commodity under a standardized contract described in subsection (a) of this section that is not permitted by the rules, regulations and orders of the Commission in effect on December 9, 1982, if the Commission determines that any such transactions would be contrary to the public interest.' Subsec. (d). Pub. L. 99-641, in amending section generally, added subsec. (d). 1983 - Subsec. (c). Pub. L. 97-444, Sec. 234(1), substituted 'shall regulate' for 'may prohibit or regulate' and authorized Commission prohibition of transactions for delivery of commodities under a standardized contract that was not permitted by the rules, regulations and orders of the Commission in effect on Dec. 9, 1982, where transactions are determined to be contrary to the public interest. Subsec. (d). Pub. L. 97-444, Sec. 234(2), struck out subsec. (d) which provided for regulation of transactions in accordance with applicable provisions of this chapter where Commission determined the transactions under subsecs. (b) and (c) of this section were contracts for future delivery within the meaning of this chapter. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as a note under section 2 of this title. EFFECTIVE DATE Section effective Oct. 1, 1978, see section 28 of Pub. L. 95-405, set out as an Effective Date of 1978 Amendment note under section 2 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2, 12a, 13, 16, 25 of this title; title 11 section 761. ------DocID 9110 Document 78 of 2641------ -CITE- 7 USC Sec. 24 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 24. Regulations respecting commodity broker debtors; definitions -STATUTE- (a) Notwithstanding title 11, the Commission may provide, with respect to a commodity broker that is a debtor under chapter 7 of title 11, by rule or regulation - (1) that certain cash, securities, other property, or commodity contracts are to be included in or excluded from customer property or member property; (2) that certain cash, securities, other property, or commodity contracts are to be specifically identifiable to a particular customer in a specific capacity; (3) the method by which the business of such commodity broker is to be conducted or liquidated after the date of the filing of the petition under such chapter, including the payment and allocation of margin with respect to commodity contracts not specifically identifiable to a particular customer pending their orderly liquidation; (4) any persons to which customer property and commodity contracts may be transferred under section 766 of title 11; and (5) how the net equity of a customer is to be determined. (b) As used in this section, the terms 'commodity broker', 'commodity contract', 'customer', 'customer property', 'member property', 'net equity', and 'security' have the meanings assigned such terms for the purposes of subchapter IV of chapter 7 of title 11. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 20, formerly Sec. 19, as added Nov. 6, 1978, Pub. L. 95-598, title III, Sec. 302, 92 Stat. 2673, renumbered and amended July 27, 1982, Pub. L. 97-222, Sec. 20, 96 Stat. 241.) -MISC1- AMENDMENTS 1982 - Subsec. (a)(3). Pub. L. 97-222, Sec. 20(b), inserted ', including the payment and allocation of margin with respect to commodity contracts not specifically identifiable to a particular customer pending their orderly liquidation'. EFFECTIVE DATE Section effective Nov. 6, 1978, see section 402(d) of Pub. L. 95-598, set out as a note preceding section 101 of Title 11, Bankruptcy. ------DocID 9111 Document 79 of 2641------ -CITE- 7 USC Sec. 25 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 25. Private rights of action -STATUTE- (a) Actual damages; actionable transactions; exclusive remedy (1) Any person (other than a contract market, clearing organization of a contract market, licensed board of trade, or registered futures association) who violates this chapter or who willfully aids, abets, counsels, induces, or procures the commission of a violation of this chapter shall be liable for actual damages resulting from one or more of the transactions referred to in clauses (A) through (D) of this paragraph and caused by such violation to any other person - (A) who received trading advice from such person for a fee; (B) who made through such person any contract of sale of any commodity for future delivery (or option on such contract or any commodity); or who deposited with or paid to such person money, securities, or property (or incurred debt in lieu thereof) in connection with any order to make such contract; (C) who purchased from or sold to such person or placed through such person an order for the purchase or sale of - (i) an option subject to section 6c of this title (other than an option purchased or sold on a contract market or other board of trade); (ii) a contract subject to section 23 of this title; or (iii) an interest or participation in a commodity pool; or (D) who purchased or sold a contract referred to in clause (B) hereof if the violation constitutes a manipulation of the price of any such contract or the price of the commodity underlying such contract. (2) Except as provided in subsection (b) of this section, the rights of action authorized by this subsection and by sections 7a(11), 18, and 21(b)(10) of this title shall be the exclusive remedies under this chapter available to any person who sustains loss as a result of any alleged violation of this chapter. Nothing in this subsection shall limit or abridge the rights of the parties to agree in advance of a dispute upon any forum for resolving claims under this section, including arbitration. (b) Liabilities of organizations and individuals; bad faith requirement; exclusive remedy (1)(A) A contract market or clearing organization of a contract market that fails to enforce any bylaw, rule, regulation, or resolution that it is required to enforce by section 7a(8) and section 7a(9) of this title, (B) a licensed board of trade that fails to enforce any bylaw, rule, regulation, or resolution that it is required to enforce by the Commission, or (C) any contract market, clearing organization of a contract market, or licensed board of trade that in enforcing any such bylaw, rule, regulation, or resolution violates this chapter or any Commission rule, regulation, or order, shall be liable for actual damages sustained by a person who engaged in any transaction on or subject to the rules of such contract market or licensed board of trade to the extent of such person's actual losses that resulted from such transaction and were caused by such failure to enforce or enforcement of such bylaws, rules, regulations, or resolutions. (2) A registered futures association that fails to enforce any bylaw or rule that is required under section 21 of this title or in enforcing any such bylaw or rule violates this chapter or any Commission rule, regulation, or order shall be liable for actual damages sustained by a person that engaged in any transaction specified in subsection (a) of this section to the extent of such person's actual losses that resulted from such transaction and were caused by such failure to enforce or enforcement of such bylaw or rule. (3) Any individual who, in the capacity as an officer, director, governor, committee member, or employee of a contract market, clearing organization, licensed board of trade, or a registered futures association willfully aids, abets, counsels, induces, or procures any failure by any such entity to enforce (or any violation of the chapter in enforcing) any bylaw, rule, regulation, or resolution referred to in paragraph (1) or (2) of this subsection, shall be liable for actual damages sustained by a person who engaged in any transaction specified in subsection (a) of this section on, or subject to the rules of, such contract market, licensed board of trade or, in the case of an officer, director, governor, committee member, or employee of a registered futures association, any transaction specified in subsection (a) of this section, in either case to the extent of such person's actual losses that resulted from such transaction and were caused by such failure or violation. (4) A person seeking to enforce liability under this section must establish that the contract market, licensed board of trade, clearing organization, registered futures association, officer, director, governor, committee member, or employee acted in bad faith in failing to take action or in taking such action as was taken, and that such failure or action caused the loss. (5) The rights of action authorized by this subsection shall be the exclusive remedy under this chapter available to any person who sustains a loss as a result of (A) the alleged failure by a contract market, licensed board of trade, clearing organization, or registered futures association or by any officer, director, governor, committee member, or employee to enforce any bylaw, rule, regulation, or resolution referred to in paragraph (1) or (2) of this subsection, or (B) the taking of action in enforcing any bylaw, rule, regulation, or resolution referred to in this subsection that is alleged to have violated this chapter, or any Commission rule, regulation, or order. (c) Jurisdiction The United States district courts shall have exclusive jurisdiction of actions brought under this section. Any such action must be brought within two years after the date the cause of action accrued. (d) Dates of application to actions The provisions of this section shall become effective with respect to causes of action accruing on or after the date of enactment of the Futures Trading Act of 1982 (January 11, 1983): Provided, That the enactment of the Futures Trading Act of 1982 shall not affect any right of any parties which may exist with respect to causes of action accruing prior to such date. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 22, as added Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 235, 96 Stat. 2322.) -REFTEXT- REFERENCES IN TEXT The Futures Trading Act of 1982, referred to in subsec. (d), is Pub. L. 97-444, Jan. 11, 1983, 96 Stat. 2294, which is classified generally to this chapter. For complete classification of this Act to the Code, see Short Title of 1983 Amendment note set out under section 1 of this title and Tables. -COD- CODIFICATION In subsec. (a)(2), 'section 21(b)(10) of this title' substituted for 'section 17b(10) of this Act' to give effect to the probable intent of Congress because there is no section 17b(10) of the Commodity Exchange Act and section 17(b)(10) of that Act is classified to section 21(b)(10) of this title. -MISC3- EFFECTIVE DATE Section effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as an Effective Date of 1983 Amendment note under section 2 of this title. ------DocID 9112 Document 80 of 2641------ -CITE- 7 USC Sec. 26 -EXPCITE- TITLE 7 CHAPTER 1 -HEAD- Sec. 26. Special studies -STATUTE- (a)(1) The Board of Governors of the Federal Reserve System, the Commission, and the Securities and Exchange Commission, with assistance from the Secretary of the Treasury, shall conduct a study of the effects on the economy of trading in contracts of sale of commodities for future delivery and in options (including options on commodities, options on contracts of sale of commodities for future delivery, options on foreign currencies, and options on securities, including exempted securities or on any group or index of securities). The agencies participating in the study may select representative futures contracts and options contracts and representative periods of time for detailed study. (2) The Board of Governors of the Federal Reserve System shall organize the study and shall do so in such manner that the total cost to all participating agencies of conducting the study is not more than $3,000,000. To the extent possible, such agencies shall use data which are readily available to them. (3) among (FOOTNOTE 1) the areas to be studied are - (FOOTNOTE 1) So in original. Probably should be 'Among'. (A) the effects, if any, that trading in such instruments has on the formation of real capital in the economy (particularly that of a long-term nature) and the structure of liquidity in credit markets; (B) the economic purposes, if any, served by the trading of such instruments; (C) the sufficiency of the public policy tools available to regulate such trading activity to avoid harmful economic effects in the markets for such instruments, the underlying cash markets, and related financial markets; (D) the adequacy of investor protections afforded to participants in the markets for such instruments; and (E) the extent to which such instruments may be utilized to manipulate, or profit from the manipulation of, the markets for evidences of indebtedness, foreign currency, and securities. (4) The Commission shall have primary responsibility for selecting and studying the instruments under its jurisdiction, and the Securities and Exchange Commission shall have primary responsibility for selecting and studying the instruments under its jurisdiction. (5) The Board of Governors of the Federal Reserve System shall review, and may supplement with its own analyses, the studies conducted under this subsection by the Commission and the Securities and Exchange Commission. The Board of Governors, after consultation with the Commission and the Securities and Exchange Commission, shall, not later than September 30, 1984, submit to Congress a report comprised of such studies, together with any supplementation and recommendations for legislative or regulatory action proposed by the participants. (b)(1) The Commission shall conduct at a cost of not more than $200,000 a study of (A) the nature, extent, and effects of trading in representative futures markets by persons possessing material information not generally available to the public regarding present or anticipated cash or futures transactions (to which such persons are not parties) in any commodity, and (B) the adequacy of the Commission's authority to prevent market and customer abuses resulting from the possession of such nonpublic information. (2) To the extent possible, the Commission shall use data which are readily available to it in conducting the study. The Commission shall, not later than September 30, 1984, transmit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing the results of the study and including any recommendations for legislative action. -SOURCE- (Sept. 21, 1922, ch. 369, Sec. 23, as added Jan. 11, 1983, Pub. L. 97-444, title II, Sec. 236, 96 Stat. 2324.) -MISC1- EFFECTIVE DATE Section effective Jan. 11, 1983, see section 239 of Pub. L. 97-444, set out as an Effective Date of 1983 Amendment note under section 2 of this title. ------DocID 9113 Document 81 of 2641------ -CITE- 7 USC CHAPTER 2 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- CHAPTER 2 - COTTON STANDARDS -MISC1- Sec. 51. Short title. 51a. Extension of classification facilities to cotton growers. 51a-1. Contracts with cooperatives furnishing classers; amount and type of payment. 51b. Licensing samplers; revocation and suspension of license. 52. Use of nonofficial standards prohibited; sales by sample excepted. 53. Licensing classifiers; revocation and suspension of license. 54. Classification by Department of Agriculture; certification thereof; effect of certificate; regulations for classification. 55. Fees and charges for cotton classing and related services; criteria; disposition of moneys and samples. 56. Establishment of cotton standards; furnishing copies of established standards sold. 57. Disposition of proceeds of sale of cotton and of copies of standards. 57a. Agreements with cotton associations, etc., in foreign countries to establish cotton standards. 58. General inspection and sampling of cotton. 59. Offenses in relation to cotton standards. 60. Penalties for violations. 61. General regulations, investigations, tests, etc., by Secretary. 61a. Annual review meetings with cotton industry representatives; purposes, etc. 62. Definitions. 63. Liability of principal for act of agent. 64. Appropriation for expenses; appointment by Secretary of officers and agents; compensation. 65. Separability. -SECREF- CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in sections 15b, 61a of this title. ------DocID 9114 Document 82 of 2641------ -CITE- 7 USC Sec. 51 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 51. Short title -STATUTE- This chapter shall be known by the short title of 'United States Cotton Standards Act.' -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 1, 42 Stat. 1517.) -MISC1- EFFECTIVE DATE Section 14 of act Mar. 4, 1923, provided: 'That this Act (enacting this chapter) shall become effective on and after Aug. 1, 1923.' ------DocID 9115 Document 83 of 2641------ -CITE- 7 USC Sec. 51a -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 51a. Extension of classification facilities to cotton growers -STATUTE- The Secretary of Agriculture is requested to extend to cotton growers facilities for the classification of cotton authorized in this chapter, with such supervision of licensed classifiers as he shall deem necessary under authority of the United States Cotton Futures Act. -SOURCE- (Mar. 4, 1933, ch. 284, Sec. 1, 47 Stat. 1621.) -REFTEXT- REFERENCES IN TEXT The United States Cotton Futures Act, referred to in text, is part A of act Aug. 11, 1916, ch. 313, 39 Stat. 476, as amended, which was repealed by section 4 of act Feb. 10, 1939, ch. 2, 53 Stat. 1. For complete classification of this Act to the Code prior to its repeal, see Tables. -COD- CODIFICATION This section was not enacted as part of the United States Cotton Standards Act which comprises this chapter. ------DocID 9116 Document 84 of 2641------ -CITE- 7 USC Sec. 51a-1 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 51a-1. Contracts with cooperatives furnishing classers; amount and type of payment -STATUTE- On and after July 5, 1952 the Secretary may contract with cooperatives furnishing classers and other facilities for classing cotton and may pay for such services in amount, some part of which may be in kind, not in excess of the value of the samples. -SOURCE- (July 5, 1952, ch. 574, title I, Sec. 101, 66 Stat. 349.) -COD- CODIFICATION Section was enacted as part of the Department of Agriculture Appropriation Act, 1953, and not as part of the United States Cotton Standards Act which comprises this chapter. ------DocID 9117 Document 85 of 2641------ -CITE- 7 USC Sec. 51b -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 51b. Licensing samplers; revocation and suspension of license -STATUTE- Further to carry out the purposes of this chapter the Secretary of Agriculture is authorized to issue to any qualified person, upon presentation of satisfactory evidence of competency, a license to sample cotton. Any such license may be suspended or revoked by the Secretary of Agriculture whenever he is satisfied that such licensee is incompetent or has knowingly or carelessly sampled cotton improperly, or has violated any provision of this chapter or the regulations thereunder so far as the same may relate to him, or has used his license, or allowed it to be used, for any improper purpose. The Secretary of Agriculture may prescribe by regulation the conditions under which licenses may be issued hereunder, and may require any licensed sampler to give bond for the faithful performance of his duties and for the protection of persons affected thereby and may prescribe the conditions under which cotton shall be sampled by licensed samplers for the purpose of classification by officers of the Department of Agriculture, or by licensed cotton classifiers. -SOURCE- (Mar. 4, 1933, ch. 284, Sec. 2, 47 Stat. 1621.) -COD- CODIFICATION This section was not enacted as part of the United States Cotton Standards Act which comprises this chapter. ------DocID 9118 Document 86 of 2641------ -CITE- 7 USC Sec. 52 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 52. Use of nonofficial standards prohibited; sales by sample excepted -STATUTE- It shall be unlawful (a) in or in connection with any transaction or shipment in commerce made after August 1, 1923, or (b) in any publication of a price or quotation determined in or in connection with any transaction or shipment in commerce after August 1, 1923, or (c) in any classification for the purposes of or in connection with a transaction or shipment in commerce after August 1, 1923, for any person to indicate for any cotton a grade or other class which is of or within the official cotton standards of the United States then in effect under this chapter by a name, description, or designation, or any system of names, description, or designation not used in said standards: Provided, That nothing herein shall prevent a transaction otherwise lawful by actual sample or on the basis of a private type which is used in good faith and not in evasion of or substitution for said standards. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 2, 42 Stat. 1517.) -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section, see section 60 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 60 of this title. ------DocID 9119 Document 87 of 2641------ -CITE- 7 USC Sec. 53 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 53. Licensing classifiers; revocation and suspension of license -STATUTE- The Secretary of Agriculture may, upon presentation of satisfactory evidence of competency, issue to any person a license to grade or otherwise classify cotton and to certificate the grade or other class thereof in accordance with the official cotton standards of the United States. Any such license may be suspended or revoked by the Secretary of Agriculture whenever he is satisfied, after reasonable opportunity afforded to the licensee for a hearing, that such licensee is incompetent or has knowingly or carelessly classified cotton improperly, or has violated any provision of this chapter or the regulations thereunder so far as the same may relate to him, or has used his license or allowed it to be used for any improper purpose. Pending investigation the Secretary of Agriculture, whenever he deems necessary, may suspend a license temporarily without a hearing. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 3, 42 Stat. 1517.) -CROSS- CROSS REFERENCES Charges for licenses issued to classifiers of cotton under this section, see section 55 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 55 of this title. ------DocID 9120 Document 88 of 2641------ -CITE- 7 USC Sec. 54 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 54. Classification by Department of Agriculture; certification thereof; effect of certificate; regulations for classification -STATUTE- Any person who has custody of or a financial interest in any cotton may submit the same or samples thereof, drawn in accordance with the regulations of the Secretary of Agriculture, to such officer or officers of the Department of Agriculture, as may be designated for the purpose pursuant to the regulations of the Secretary of Agriculture for a determination of the true classification of such cotton or samples, including the comparison thereof, if requested, with types or other samples submitted for the purpose. The final certificate of the Department of Agriculture showing such determination shall be binding on officers of the United States and shall be accepted in the courts of the United States as prima facie evidence of the true classification or comparison of such cotton or samples when involved in any transaction or shipment in commerce. The Secretary of Agriculture shall fix rules and regulations for submitting samples of cotton for classification providing that all samples shall be numbered so that no one interested in the transaction involved shall be known by any classifier engaged in the classification of such cotton samples. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 4, 42 Stat. 1517.) -CROSS- CROSS REFERENCES Charges for determinations made under this section, see section 55 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 55, 58 of this title. ------DocID 9121 Document 89 of 2641------ -CITE- 7 USC Sec. 55 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 55. Fees and charges for cotton classing and related services; criteria; disposition of moneys and samples -STATUTE- (a) The Secretary of Agriculture shall cause to be collected such fees and charges for licenses issued to classifiers of cotton under section 53 of this title, for determinations made under section 54 of this title, and for the establishment of standards and sale of copies of standards under sections 56, 57, and 57a of this title, as will cover, as nearly as practicable, and after taking into consideration net proceeds from any sale of samples, the costs incident to providing services and standards under such sections, including administrative and supervisory costs. The Secretary may provide by regulation conditions under which cotton samples submitted or used in the performance of services authorized by this chapter shall become the property of the United States and may be sold with the proceeds credited to the foregoing account: Provided, That such cotton samples shall not be subject to the provisions of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.). Any fees or charges, late payment penalties, or proceeds from the sales of samples collected under this subsection, and any interest earned through the investment of such funds shall be credited to the current appropriation account that incurs the costs of the services provided under this chapter, and shall remain available without fiscal year limitation to pay the expenses of the Secretary incident to providing services and standards under this chapter and section 15b of this title. Such funds may be invested by the Secretary in insured or fully collateralized, interest-bearing accounts or, at the discretion of the Secretary, by the Secretary of the Treasury in United States Government debt instruments. (b) The price established by the Secretary of Agriculture under the foregoing provisions of this section for practical forms representing the official cotton standards of the United States shall cover, as nearly as practicable, the estimated actual cost to the Department of Agriculture for developing and preparing such practical forms. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 5, 42 Stat. 1518; Aug. 13, 1981, Pub. L. 97-35, title I, Sec. 156(a), 95 Stat. 373; Oct. 24, 1988, Pub. L. 100-518, Sec. 4, 102 Stat. 2587.) -REFTEXT- REFERENCES IN TEXT The Federal Property and Administrative Services Act of 1949, referred to in subsec. (a), is act June 30, 1949, ch. 288, 63 Stat. 377, as amended. The provisions of that Act relating to management and disposal of government property are classified to chapter 10 (Sec. 471 et seq.) of Title 40, Public Buildings, Property, and Works. For complete classification of this Act to the Code, see Short Title note set out under section 471 of Title 40 and Tables. -MISC2- AMENDMENTS 1988 - Subsec. (a). Pub. L. 100-518 included late payment penalties, proceeds, and interest within amounts to be credited to current appropriation account and remain available until expended, and authorized investment of such funds in certain interest-bearing accounts or debt instruments. 1981 - Pub. L. 97-35 designated existing provisions as subsec. (a), substituted provisions requiring Secretary to cause to be collected fees and charges, for provisions authorizing Secretary to cause to be collected charges, and added subsec. (b). EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 156(e) of Pub. L. 97-35, set out as an Effective Date note under section 61a of this title. APPROPRIATION ACCOUNT Effective July 1, 1935, the appropriation account for expenses provided for in this chapter was abolished by act June 26, 1934, ch. 756, Sec. 5, 48 Stat. 1228. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 15b of this title. ------DocID 9122 Document 90 of 2641------ -CITE- 7 USC Sec. 56 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 56. Establishment of cotton standards; furnishing copies of established standards sold -STATUTE- The Secretary of Agriculture is authorized to establish from time to time standards for the classification of cotton by which its quality or value may be judged or determined for commercial purposes which shall be known as the official cotton standards of the United States. Any such standard or change or replacement thereof shall become effective only on and after a date specified in the order of the Secretary of Agriculture establishing the same, which date shall be not less than one year after the date of such order: Provided, That the official cotton standards established, effective August 1, 1923, under the United States Cotton Futures Act shall be at the same time the official cotton standards for the purpose of this chapter unless and until changed or replaced under this chapter. Whenever any standard or change or replacement thereof shall become effective under this chapter, it shall also, when so specified in the order of the Secretary of Agriculture, become effective for the purposes of the United States Cotton Futures Act and supersede any inconsistent standard established under said Act. Whenever the official cotton standards of the United States established under this chapter shall be represented by practical forms the Department of Agriculture shall furnish copies thereof, upon request, to any person, and the cost thereof, as determined by the Secretary of Agriculture, shall be paid by the person making the request. The Secretary of Agriculture may cause such copies to be certified under the seal of the Department of Agriculture and may attach such conditions to the purchase and use thereof, including provision for the inspection, condemnation, and exchange thereof by duly authorized representatives of the Department of Agriculture as he may find to be necessary to the proper application of the official cotton standards of the United States. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 6(a), formerly Sec. 6, 42 Stat. 1518, renumbered Sept. 21, 1944, ch. 412, Sec. 401(b), 58 Stat. 738.) -REFTEXT- REFERENCES IN TEXT The United States Cotton Futures Act, referred to in text, is part A of act Aug. 11, 1916, ch. 313, 39 Stat. 476, as amended, which was repealed by section 4 of act Feb. 10, 1939, ch. 2, 53 Stat. 1. For complete classification of this Act to the Code prior to its repeal, see Tables. -COD- CODIFICATION Section is composed of the first five sentences of subsec. (a) of section 6 of act Mar. 4, 1923, as renumbered by section 401(b), of act Sept. 21, 1944. Last sentence of subsec. (a) is set out as section 57 of this title. Subsec. (b) is set out as section 57a of this title. -CROSS- CROSS REFERENCES Disposition of proceeds of sale of cotton and of copies of standards, see section 57 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 55, 57 of this title. ------DocID 9123 Document 91 of 2641------ -CITE- 7 USC Sec. 57 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 57. Disposition of proceeds of sale of cotton and of copies of standards -STATUTE- Any moneys received from or in connection with the sale of cotton purchased for the preparation of the copies mentioned in section 56 of this title and condemned as unsuitable for such use or with the sale of such copies may be expended for the purchase of other cotton for such use. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 6(a), formerly Sec. 6, 42 Stat. 1518, renumbered Sept. 21, 1944, ch. 412, Sec. 401(b), 58 Stat. 738.) -COD- CODIFICATION Section is composed of the last sentence of subsec. (a) of section 6 of act Mar. 4, 1923, as renumbered by section 401(b) of act Sept. 21, 1944. First five sentences of subsec. (a) are set out as section 56 of this title. Subsec. (b) is set out as section 57a of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 55 of this title. ------DocID 9124 Document 92 of 2641------ -CITE- 7 USC Sec. 57a -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 57a. Agreements with cotton associations, etc., in foreign countries to establish cotton standards -STATUTE- The Secretary of Agriculture is authorized to effectuate agreements with cotton associations, cotton exchanges, and other cotton organizations in foreign countries, for (1) the adoption, use, and observance of universal standards of cotton classification, (2) the arbitration or settlement of disputes with respect thereto, and (3) the preparation, distribution, inspection, and protection of the practical forms or copies thereof under such agreements. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 6(b), as added Sept. 21, 1944, ch. 412, title IV, Sec. 401(b), 58 Stat. 738.) -COD- CODIFICATION Section was enacted as subsec. (b) of section 6 of act Mar. 4, 1923, by act Sept. 21, 1944, Sec. 401(b). Subsec. (a) of section 6 is classified to sections 56 and 57 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 55 of this title. ------DocID 9125 Document 93 of 2641------ -CITE- 7 USC Sec. 58 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 58. General inspection and sampling of cotton -STATUTE- In order to carry out the provisions of this chapter, the Secretary of Agriculture is authorized to cause the inspection, including the sampling, of any cotton involved in any transaction or shipment in commerce, wherever such cotton may be found, or of any cotton with respect to which a determination of the true classification is requested under section 54 of this title. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 7, 42 Stat. 1518.) ------DocID 9126 Document 94 of 2641------ -CITE- 7 USC Sec. 59 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 59. Offenses in relation to cotton standards -STATUTE- It shall be unlawful for any person (a) with intent to deceive or defraud, to make, receive, use, or have in his possession any simulate or counterfeit practical form or copy of any standard or part thereof established under this chapter; or (b) without the written authority of the Secretary of Agriculture, to make, alter, tamper with, or in any respect change any practical form or copy of any standard established under this chapter; or (c) to display or use any such practical form or copy after the Secretary of Agriculture shall have caused it to be condemned. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 8, 42 Stat. 1519.) -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section, see section 60 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 60 of this title. ------DocID 9127 Document 95 of 2641------ -CITE- 7 USC Sec. 60 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 60. Penalties for violations -STATUTE- (a) Any person who shall knowingly violate any provision of sections 52 or 59 of this title, or (b) any person licensed under this chapter who, for the purposes of or in connection with any transaction or shipment in commerce, shall knowingly classify cotton improperly, or shall knowingly falsify or forge any certificate of classification, or shall accept money or other consideration, either directly or indirectly, for any neglect or improper performance of duty as such licensee, or (c) any person who shall knowingly influence improperly or attempt to influence improperly any person licensed under this chapter in the performance of his duties as such licensee relating to any transaction or shipment in commerce, or (d) any person who shall forcibly assault, resist, impede, or interfere with or influence improperly or attempt to influence improperly any person employed under this chapter in the performance of his duties, shall, upon conviction thereof, be deemed guilty of a misdemeanor and shall be fined not exceeding $1,000, or imprisoned not exceeding six months, or both, in the discretion of the court. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 9, 42 Stat. 1519.) ------DocID 9128 Document 96 of 2641------ -CITE- 7 USC Sec. 61 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 61. General regulations, investigations, tests, etc., by Secretary -STATUTE- For the purposes of this chapter the Secretary of Agriculture shall cause to be promulgated such regulations, may cause such investigations, tests, demonstrations, and publications to be made, including the investigation and determination of some practical method whereby repeated and unnecessary sampling and classification of cotton may be avoided, and may cooperate with any department or agency of the Government, any State, Territory, District, or possession, or department, agency, or political subdivision thereof, or any person, as he shall find to be necessary. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 10, 42 Stat. 1519.) ------DocID 9129 Document 97 of 2641------ -CITE- 7 USC Sec. 61a -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 61a. Annual review meetings with cotton industry representatives; purposes, etc. -STATUTE- The Secretary of Agriculture shall hold annual meetings with representatives of the cotton industry to review (1) activities and operations under the Cotton Standards Act (7 U.S.C. 51 et seq.), and the Cotton Statistics and Estimates Act (7 U.S.C. 471 et seq.), (2) activities and operations relating to cotton under the United States Warehouse Act (7 U.S.C. 241 et seq.), and (3) the effect of such activities and operations on prices received by producers and sales to domestic and foreign users, for the purpose of improving procedures for financing and administering such activities and operations for the benefit of the industry and the Government. Notwithstanding any other provision of law, the Secretary shall take such action as may be necessary to insure that the universal cotton standards system and the licensing and inspection procedures for cotton warehouses are preserved and that the Government cotton classification system continues to operate so that the United States cotton crop is provided an official quality description. -SOURCE- (Pub. L. 97-35, title I, Sec. 156(d), Aug. 13, 1981, 95 Stat. 374.) -REFTEXT- REFERENCES IN TEXT The Cotton Standards Act, referred to in text, probably meaning the United States Cotton Standards Act, is act Mar. 4, 1923, ch. 288, 42 Stat. 1517, as amended, which is classified generally to this chapter. For complete classification of this Act to the Code, see section 51 of this title and Tables. The Cotton Statistics and Estimates Act, referred to in text, is act Mar. 3, 1927, ch. 337, 44 Stat. 1372, as amended, which is classified generally to chapter 19 (Sec. 471 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 471 of this title and Tables. The United States Warehouse Act, referred to in text, is part C of act Aug. 11, 1916, ch. 313, 39 Stat. 486, as amended, which is classified generally to chapter 10 (Sec. 241 et seq.) of this title. For complete classification of this Act to the Code, see section 241 of this title and Tables. -COD- CODIFICATION Section was enacted as part of the Omnibus Budget Reconciliation Act of 1981, and not as part of the United States Cotton Standards Act which comprises this chapter. -MISC3- EFFECTIVE DATE Section 156(e) of Pub. L. 97-35 provided that: 'The provisions of this section (enacting this section, amending sections 15b, 55, and 473a of this title, and enacting provision set out as a note under section 473a of this title) shall become effective October 1, 1981.' ------DocID 9130 Document 98 of 2641------ -CITE- 7 USC Sec. 62 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 62. Definitions -STATUTE- Wherever used in this chapter, (a) the word 'person' imports the plural or the singular, as the case demands, and includes an individual, a partnership, a corporation, or two or more persons having a joint or common interest; (b) the word 'commerce' means commerce between any State or the District of Columbia and any place outside thereof, or between points within the same State or the District of Columbia but through any place outside thereof, or within the District of Columbia; and (c) the word 'cotton' means cotton of any variety produced within the continental United States, including linters. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 11, 42 Stat. 1519.) -COD- CODIFICATION Section is composed of the first sentence of section 11 of act Mar. 4, 1923. The remainder of section 11 is contained in section 63 of this title. ------DocID 9131 Document 99 of 2641------ -CITE- 7 USC Sec. 63 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 63. Liability of principal for act of agent -STATUTE- When construing and enforcing the provisions of this chapter, the act, omission, or failure of any agent, officer, or other person acting for or employed by any person, within the scope of his employment or office, shall in every case be deemed also the act, omission, or failure of such person as well as that of such agent, officer, or other person. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 11, 42 Stat. 1519.) -COD- CODIFICATION Section is composed of the second sentence of section 11 of act Mar. 4, 1923. The first sentence of section 11 is contained in section 62 of this title. ------DocID 9132 Document 100 of 2641------ -CITE- 7 USC Sec. 64 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 64. Appropriation for expenses; appointment by Secretary of officers and agents; compensation -STATUTE- There are authorized to be appropriated out of any moneys in the Treasury not otherwise appropriated, such sums as may be necessary for carrying out the provisions of this chapter; and the Secretary of Agriculture is authorized, within the limits of such appropriations, to appoint, remove, and fix the compensations of such officers and employees, not in conflict with existing law, and make such expenditures for rent outside the District of Columbia, printing, telegrams, telephones, law books, books of reference, periodicals, furniture, stationery, office equipment, travel, and other supplies and expenses as shall be necessary to the administration of this chapter in the District of Columbia and elsewhere. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 12, 42 Stat. 1519.) ------DocID 9133 Document 101 of 2641------ -CITE- 7 USC Sec. 65 -EXPCITE- TITLE 7 CHAPTER 2 -HEAD- Sec. 65. Separability -STATUTE- If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the chapter and the application of such provision to other persons and circumstances shall not be affected thereby. -SOURCE- (Mar. 4, 1923, ch. 288, Sec. 13, 42 Stat. 1520.) ------DocID 9134 Document 102 of 2641------ -CITE- 7 USC CHAPTER 3 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- CHAPTER 3 - GRAIN STANDARDS -MISC1- Sec. 71. Short title. 72, 73. Omitted. 74. Congressional findings and declaration of policy. 75. Definitions. 75a. Federal Grain Inspection Service; Administrator. 75b. Committee on Grain Quality and Grain Quality Coordinator. (a) Establishment of Committee and Coordinator. (b) Duties. (c) Termination. 76. Standards and procedures; establishment, amendment, and revocation. (a) Authority of Administrator. (b) Notice and opportunity for comment; standards regarding cleanliness of grain. (c) Grade determining factors related to physical soundness and purity; notice and opportunity for comment. (d) Moisture content criterion. 77. Official inspection and weighing requirements; waiver; supervision by representatives of Administrator. (a) Official samples and certificates; waiver; excepted grains. (b) Supervision by representatives of Administrator. (c) Testing for aflatoxin contamination of corn shipped in foreign commerce. 78. Use of official grade designations required; false or misleading grade designations for grain shipped out of the United States. 79. Official inspection. (a) Grain required to be officially inspected. (b) Inspections made pursuant to request of interested persons. (c) Reinspections and appeals; cancellation of superseded certificates; sale of samples. (d) Official certificates as evidence. (e) Official inspection at export port locations; delegation of authority to State agencies. (f) Official inspections at other than export port locations; designation of agencies or persons to conduct official inspections. (g) Termination, renewal, amendment, cancellation, and revocation of designations of official agencies. (h) Official inspections at locations other than export port locations when designated official agencies are not available. (i) Official inspections in Canadian ports. (j) Fees; establishment, amount, payment, etc. 79a. Weighing authority. (a) Official weighing in accordance with prescribed regulations. (b) Official weighing or supervision of weighing at grain elevators, warehouses, or other storage or handling facilities located other than at export elevators at export port locations. (c) Personnel performing official weighing or supervision of weighing at locations at which official inspection is provided. (d) Official weighing in Canadian ports. (e) Official weighing or supervision of weighing upon request of operators of grain elevators, warehouses, or other storage or handling facilities. (f) Demonstrated willingness of operators of grain elevators, warehouses, or other storage or handling facilities to meet equipment and personnel requirements. (g) Official certificates as evidence. (h) Weighing prohibited when not in accordance with prescribed procedures. (i) Unauthorized weighing prohibited. (j) Authority under United States Warehouse Act not limited. (k) Access to elevators, warehouses, or other storage or handling facilities. (l) Fees; establishment, amount, payment, etc. 79b. Testing of equipment. (a) Random and periodic testing at least annually; fees. (b) Personnel to conduct testing. (c) Use of non-approved equipment prohibited. 79c. Omitted. 79d. Limitation on administrative and supervisory costs. 80 to 83. Omitted. 84. Licensing of inspectors. (a) Authorization. (b) Duration of licenses; suspension; reinstatement. (c) Examination of applicants; reexaminations. (d) Inspectors performing under contract not deemed Federal employees. (e) Hiring of official inspection personnel and supervisory personnel without regard to laws governing appointments to the competitive service. (f) Periodic rotation of personnel. (g) Recruitment, training, and supervision of personnel; work production standards; exemption for certain personnel. 85. Suspension, revocation, and refusal to renew licenses; hearing; grounds; temporary suspension. 86. Refusal of inspection and weighing services; civil penalties. (a) Grounds for refusal of services. (b) Persons responsibly connected with a business. (c) Civil penalties. (d) Opportunity for hearing; temporary refusal without hearing pending final determination. (e) Collection and disposition of civil penalties. 87. Conflicts of interest. (a) Prohibition with respect to persons licensed or authorized by Administrator to perform official functions. (b) Prohibition with respect to personnel of official or State agencies and business or governmental entities related to such agencies; substantial stock holder; use of official inspection service; authority delegation; report to Congressional committees. (c) Official agencies or State agencies not prevented from engaging in business of weighing grain. 87a. Records. (a) Samples of grain. (b) Period of maintenance. (c) Access to records; audits. (d) Maintenance of records by persons or entities receiving official inspection or weighing services; access to records and facilities. 87b. Prohibited acts. 87c. Criminal penalties. 87d. Responsibility for acts of others. 87e. General authorities. (a) Authority of Administrator. (b) Investigation of reports or complaints of discrepancies and abuses in official inspection or weighing of grain. (c) Monitoring of United States grain upon its entry into foreign nations. (d) Authority of Office of Investigation of Department of Agriculture. (e) Research program to develop methods of improving accuracy and uniformity in grading grain. (f) Adequate personnel to meet inspection and weighing requirements. 87e-1. Purchase or lease of inspection equipment. 87f. Enforcement provisions. (a) Subpena power. (b) Disobedience of subpena. (c) Court order requiring attendance and testimony of witnesses. (d) Fees and mileage costs of witnesses. (e) Violation of subpena as misdemeanor. (f), (g) Repealed. (h) District Court jurisdiction. 87f-1. Registration requirements. (a) General requirement. (b) Required information. (c) Certificate of registration. (d) Suspension or registration of certificate of registration. (e) Fees. 87f-2. Reporting requirements. (a) General requirements; annual report to Congressional committees. (b) Notification of Congressional committees of complaints regarding faulty grain deliveries and cancellation of export contracts. (c) Submission to Congressional committees of annual summary of complaints from foreign purchasers and prospective purchasers of grain. 87g. Relation to State and local laws; separability. 87h. Appropriations. 87i. Omitted. 87j. Advisory committee. (a) Establishment; number and terms of members; transition. (b) Federal Advisory Committee Act as governing. (c) Clerical assistance and staff personnel. (d) Compensation and travel expenses. 87k. Standardizing commercial inspections. (a) Testing equipment. (b) General inspection procedures. (c) Inspection services and information. (d) Standardized aflatoxin equipment and procedures. -SECREF- CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in section 420 of this title. ------DocID 9135 Document 103 of 2641------ -CITE- 7 USC Sec. 71 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 71. Short title -STATUTE- This chapter may be cited as the 'United States Grain Standards Act.' -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 1, 39 Stat. 482; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 761.) -COD- CODIFICATION This chapter constitutes part B of 'An act making appropriations for the Department of Agriculture for the fiscal year ending June 30, 1917, and for other purposes,' approved Aug. 11, 1916. Part A of act of Aug. 11, 1916, containing the 'United States Cotton Futures Act,' was repealed by section 4 of act Feb. 10, 1939, ch. 2, 53 Stat. 1. Part C of that act contained the 'United States Warehouse Act,' and is incorporated, as amended, as section 241 et seq. of this title. Section is composed of part of section 1 of part B of act Aug. 11, 1916. Other provisions contained in section 1 were classified to former sections 72 and 73 of this title. -MISC3- AMENDMENTS 1968 - Pub. L. 90-487 substituted 'may be cited as' for 'shall be known by the short title of'. EFFECTIVE DATE OF 1968 AMENDMENT Amendment by Pub. L. 90-487 effective 180 days after Aug. 15, 1968, see section 2 of Pub. L. 90-487, set out as a note under section 78 of this title. SHORT TITLE OF 1990 AMENDMENT Pub. L. 101-624, title XX, Sec. 2001, Nov. 28, 1990, 104 Stat. 3928, provided that: 'This title (enacting sections 75b, 87k, 1427-1, 1593a, and 1622a of this title, amending sections 74, 76, 77, 87b, 1423, and 1445e of this title, and enacting provisions set out as a note under section 76 of this title) may be cited as the 'Grain Quality Incentives Act of 1990'.' SHORT TITLE OF 1988 AMENDMENT Pub. L. 100-518, Sec. 1, Oct. 24, 1988, 102 Stat. 2584, provided that: 'This Act (enacting sections 79d and 87j of this title, amending sections 55, 79, 79a, and 87h of this title, and enacting provisions set out as notes under sections 79 and 1421 of this title) may be cited as the 'United States Grain Standards Act Amendments of 1988'.' SHORT TITLE OF 1986 AMENDMENT Pub. L. 99-641, title III, Sec. 301, Nov. 10, 1986, 100 Stat. 3564, provided that: 'This title (amending sections 74 and 87b of this title and enacting provisions set out as notes under sections 76 and 87b of this title) may be cited as the 'Grain Quality Improvement Act of 1986'.' SHORT TITLE OF 1976 AMENDMENT Section 1 of Pub. L. 94-582, Oct. 21, 1976, 90 Stat. 2867, provided: 'That this Act (enacting sections 75a, 79a, 79b, 87e-1, 87f-1, and 87f-2 of this title, amending sections 74, 75, 76, 77, 78, 79, 84, 85, 86, 87, 87a, 87b, 87c, 87e, 87f, 87g, and 87h of this title, section 5316 of Title 5, Government Organization and Employees, and section 1114 of Title 18, Crimes and Criminal Procedure, and enacting provisions set out as notes under sections 74, 75a, 76, and 79 of this title) may be cited as the 'United States Grain Standards Act of 1976'.' ------DocID 9136 Document 104 of 2641------ -CITE- 7 USC Sec. 72, 73 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 72, 73. Omitted -COD- CODIFICATION Sections were omitted in the general reorganization of this chapter by Pub. L. 90-487, Sec. 1, Aug. 15, 1968, 82 Stat. 761. Section 72, act Aug. 11, 1916, ch. 313, pt. B, Sec. 1 (part), 39 Stat. 482, defined the words 'person' and 'in interstate or foreign commerce'. See section 75 of this title. Section 73, act Aug. 11, 1916, ch. 313, pt. B, Sec. 1 (part), 39 Stat. 482, made associations, partnerships, and corporations liable for the acts of their agents within the scope of their employment or office. See section 87d of this title. ------DocID 9137 Document 105 of 2641------ -CITE- 7 USC Sec. 74 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 74. Congressional findings and declaration of policy -STATUTE- (a) Grain is an essential source of the world's total supply of human food and animal feed and is merchandised in interstate and foreign commerce. It is declared to be the policy of the Congress, for the promotion and protection of such commerce in the interests of producers, merchandisers, warehousemen, processors, and consumers of grain, and the general welfare of the people of the United States, to provide for the establishment of official United States standards for grain, to promote the uniform application thereof by official inspection personnel, to provide for an official inspection system for grain, and to regulate the weighing and the certification of the weight of grain shipped in interstate or foreign commerce in the manner hereinafter provided; with the objectives that grain may be marketed in an orderly and timely manner and that trading in grain may be facilitated. It is hereby found that all grain and other articles and transactions in grain regulated under this chapter are either in interstate or foreign commerce or substantially affect such commerce and that regulation thereof as provided in this chapter is necessary to prevent or eliminate burdens on such commerce and to regulate effectively such commerce. (b) It is also declared to be the policy of Congress - (1) to promote the marketing of grain of high quality to both domestic and foreign buyers; (2) that the primary objective of the official United States standards for grain is to certify the quality of grain as accurately as practicable; and (3) that official United States standards for grain shall - (A) define uniform and accepted descriptive terms to facilitate trade in grain; (B) provide information to aid in determining grain storability; (C) offer users of such standards the best possible information from which to determine end-product yield and quality of grain; (D) provide the framework necessary for markets to establish grain quality improvement incentives; (E) reflect the economic value-based characteristics in the end uses of grain; and (F) accommodate scientific advances in testing and new knowledge concerning factors related to, or highly correlated with, the end use performance of grain. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 2, 39 Stat. 482; July 18, 1940, ch. 636, 54 Stat. 765; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 761; Oct. 21, 1976, Pub. L. 94-582, Sec. 2, 90 Stat. 2867; Nov. 10, 1986, Pub. L. 99-641, title III, Sec. 302, 100 Stat. 3564; Nov. 28, 1990, Pub. L. 101-624, title XX, Sec. 2004, 104 Stat. 3929.) -MISC1- AMENDMENTS 1990 - Subsec. (b)(3)(E), (F). Pub. L. 101-624 added subpars. (E) and (F). 1986 - Pub. L. 99-641 designated existing provisions as subsec. (a) and added subsec. (b). 1976 - Pub. L. 94-582 expressed the policy of Congress to regulate the weighing and the certification of the weight of grain shipped in interstate or foreign commerce and the finding of Congress of the necessity to regulate grain transactions to prevent or eliminate burdens on commerce and to regulate effectively such interstate or foreign commerce, and provided that the grain be marketed in a timely manner. 1968 - Pub. L. 90-487 substituted a declaration of policy by the Congress for provisions authorizing promulgation and establishment of grain standards by Secretary of Agriculture. 1940 - Act July 18, 1940, inserted 'soybeans,' after 'flaxseed,'. EFFECTIVE DATE OF 1976 AMENDMENT Section 27 of Pub. L. 94-582, as amended by Pub. L. 95-113, title XVI, Sec. 1602(d), 1605(b), 1607(b), 1608, Sept. 29, 1977, 91 Stat. 1025, 1030, 1031, provided that: 'This Act (see Short Title of 1976 Amendment note set out under section 71 of this title) shall become effective thirty days after enactment hereof (Oct. 21, 1976); and thereafter no State or other agency or person shall provide official inspection or official weighing or supervision of weighing under the United States Grain Standards Act as amended by this Act (this chapter), at an export port location without a delegation of authority or other authorization under such amended Act, and no agency or person shall provide official inspection service or official weighing or supervision of weighing under such amended Act in any other area without a designation or other authorization under such amended Act, except that any agency or person then providing such service in any area may continue to operate in that area without a delegation or designation or other authorization under such Act but shall be subject to all provisions of the United States Grain Standards Act and regulations thereunder in effect immediately prior to the effective date of this Act, until whichever of the following events occurs first: '(1) a delegation or designation of such agency or person to perform such services is granted or denied by the Administrator of the Federal Grain Inspection Service pursuant to the United States Grain Standards Act, as amended by this Act; or '(2) such agency or person, or two or more members or employees thereof, have been or are convicted of a violation of any provision of the United States Grain Standards Act in effect immediately prior to the effective date of this Act; or convicted of any offense proscribed by other Federal law involving the handling, weighing, or official inspection of grain: Provided, That the Administrator may allow such affected agency or person to continue to operate in that area if the Administrator determines that such continued operations are necessary or desirable in carrying out the requirements of this Act: Provided further, That the Administrator shall, within 30 days after making such determination, submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate detailing the factual bases for such determination; or '(3) with respect to export port locations, the expiration of a period determined by the Administrator of not more than eighteen months following the effective date hereof; or '(4) with respect to any other area, the expiration of a period as determined by the Administrator of not more than two years following the effective date hereof: Provided, That the Administrator is authorized and directed to cause official inspection and official weighing of grain pursuant to the provisions of the United States Grain Standards Act, as amended by this Act, to be performed by authorized employees of the United States Department of Agriculture or the Service, to begin at any time immediately thereafter the date of enactment of this Act (Oct. 21, 1976), at those export port locations and export elevators located at export port locations at which the Administrator determines that such performance by such authorized employees is necessary to effectuate the provisions of section 2 of the United States Grain Standards Act, as amended (this section).' EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by Pub. L. 90-487, see section 2 of Pub. L. 90-487, set out as a note under section 78 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 79, 79a, 86, 87e, 87f-2, 87j of this title. ------DocID 9138 Document 106 of 2641------ -CITE- 7 USC Sec. 75 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 75. Definitions -STATUTE- When used in this chapter, except where the context requires otherwise - (a) the term 'Secretary' means the Secretary of Agriculture of the United States or his delegates; (b) the term 'Department of Agriculture' means the United States Department of Agriculture; (c) the term 'person' means any individual, partnership, corporation, association, or other business entity; (d) the term 'United States' means the States (including Puerto Rico) and the territories and possessions of the United States (including the District of Columbia); (e) the term 'State' means any one of the States (including Puerto Rico) or territories or possessions of the United States (including the District of Columbia); (f) the term 'interstate or foreign commerce' means commerce from any State to or through any other State, or to or through any foreign country; (g) the term 'grain' means corn, wheat, rye, oats, barley, flaxseed, sorghum, soybeans, mixed grain, and any other food grains, feed grains, and oilseeds for which standards are established under section 76 of this title; (h) the term 'export grain' means grain for shipment from the United States to any place outside thereof; (i) The (FOOTNOTE 1) term 'official inspection' means the determination (by original inspection, and when requested, reinspection and appeal inspection) and the certification, by official inspection personnel of the kind, class, quality, or condition of grain, under standards provided for in this chapter, or the condition of vessels and other carriers or receptacles for the transportation of grain insofar as it may affect the quality or condition of such grain; or other facts relating to grain under other criteria approved by the Administrator under this chapter (the term 'officially inspected' shall be construed accordingly); (FOOTNOTE 1) So in original. Probably should be 'the'. (j) The (FOOTNOTE 1) term 'official inspection personnel' means persons licensed or otherwise authorized by the Administrator pursuant to section 84 of this title to perform all or specified functions involved in official inspection, official weighing, or supervision of weighing, or in the supervision of official inspection, official weighing or supervision of weighing; (k) The (FOOTNOTE 1) term 'official mark' means any symbol prescribed by regulations of the Administrator to show the official determination of official inspection or official weighing; (l) the term 'official grade designation' means a numerical or sample grade designation, specified in the standards relating to kind, class, quality, and condition of grain, provided for in this chapter; (m) the term 'official agency' means any State or local governmental agency, or any person, designated by the Administrator pursuant to subsection (f) of section 79 of this title for the conduct of official inspection (other than appeal inspection), or subsection (c) of section 79a of this title for the conduct of official weighing or supervision of weighing (other than appeal weighing); (n) the terms 'official certificate' and 'official form' mean, respectively, a certificate or other form prescribed by regulations of the Administrator under this chapter; (o) the term 'official sample' means a sample obtained from a lot of grain by, and submitted for official inspection by, official inspection personnel (the term 'official sampling' shall be construed accordingly); (p) the term 'submitted sample' means a sample submitted by or for an interested person for official inspection, other than an official sample; (q) the term 'lot' means a specific quantity of grain identified as such; (r) the term 'interested person' means any person having a contract or other financial interest in grain as the owner, seller, purchaser, warehouseman, or carrier, or otherwise; (s) the verb 'ship' with respect to grain means transfer physical possession of the grain to another person for the purpose of transportation by any means of conveyance, or transport one's own grain by any means of conveyance; (t) the terms 'false', 'incorrect', and 'misleading' mean, respectively, false, incorrect, and misleading in any particular; (u) The (FOOTNOTE 1) term 'deceptive loading, handling, weighing, or sampling' means any manner of loading, handling, weighing, or sampling that deceives or tends to deceive official inspection personnel, as specified by regulations of the Administrator under this chapter; (v) The (FOOTNOTE 1) term 'export elevator' means any grain elevator, warehouse, or other storage or handling facility in the United States as determined by the Administrator, from which grain is shipped from the United States to an area outside thereof; (w) The (FOOTNOTE 1) term 'export port location' means a commonly recognized port of export in the United States or Canada, as determined by the Administrator, from which grain produced in the United States is shipped to any place outside the United States; (x) The (FOOTNOTE 2) term 'official weighing' means the determination and certification by official inspection personnel of the quantity of a lot of grain under standards provided for in this chapter, based on the actual performance of weighing or the physical supervision thereof, including the physical inspection and testing for accuracy of the weights and scales and the physical inspection of the premises at which the weighing is performed and the monitoring of the discharge of grain into the elevator or conveyance (the terms 'officially weigh' and 'officially weighed' shall be construed accordingly); (FOOTNOTE 2) So in original. Probably should be 'the'. (y) the term 'supervision of weighing' means such supervision by official inspection personnel of the grain-weighing process as is determined by the Administrator to be adequate to reasonably assure the integrity and accuracy of the weighing and of certificates which set forth the weight of the grain and such physical inspection by such personnel of the premises at which the grain weighing is performed as will reasonably assure that all the grain intended to be weighed has been weighed and discharged into the elevator or conveyance; (z) The (FOOTNOTE 2) term 'Administrator' means the Administrator of the Federal Grain Inspection Service or his delegates; (aa) The (FOOTNOTE 2) term 'Service' means the Federal Grain Inspection Service; and (bb) the term 'intracompany shipment' means the shipment, within the United States, of grain lots between facilities owned or controlled by the person owning the grain. The shipment of grain owned by a cooperative, from a facility owned by that cooperative, to an export facility which it jointly owns with other cooperatives, qualifies as an intracompany shipment. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 3, 39 Stat. 483; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 761; Oct. 21, 1976, Pub. L. 94-582, Sec. 3, 90 Stat. 2867; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1604(a), 1606(a), 91 Stat. 1026, 1030; Oct. 13, 1980, Pub. L. 96-437, Sec. 1, 94 Stat. 1870.) -MISC1- AMENDMENTS 1980 - Subsec. (bb). Pub. L. 96-437 added subsec. (bb). 1977 - Subsec. (g). Pub. L. 95-113, Sec. 1604(a)(1), substituted 'sorghum' for 'grain sorghum'. Subsec. (i). Pub. L. 95-113, Sec. 1606(a), struck out reference to the determination of the quantity of sacks of grain upon the request of the interested party applying for inspection. Subsec. (m). Pub. L. 95-113, Sec. 1604(a)(2), substituted 'or subsection (c) of section 79a of this title for the conduct of official weighing or supervision of weighing (other than appeal weighing)' for 'or subsection (b) of section 79a of this title for the conduct of supervision of weighing'. Subsec. (x). Pub. L. 95-113, Sec. 1604(a)(3), substituted 'under standards provided for in this chapter' for 'under standards provided in this chapter'. Subsec. (y). Pub. L. 95-113, Sec. 1604(a)(4), substituted 'such supervision by official inspection personnel of the grain-weighing process as is determined by the Administrator to be adequate to reasonably assure the integrity and accuracy of the weighing and of certificates which set forth the weight of the grain and such physical inspection by such personnel of the premises at which the grain weighing is performed as will reasonably assure that all the grain intended to be weighed has been weighed and discharged into the elevator or conveyance' for 'the supervision of the weighing process and of the certification of the weight of grain, and the physical inspection of the premises at which the weighing is performed to assure that all the grain intended to be weighed has been weighed and discharged into the elevator or conveyance represented on the weight certificate or other document'. 1976 - Subsec. (i). Pub. L. 94-582, Sec. 3(a), substituted 'Administrator' for 'Secretary', and expanded definition of 'official inspection' to include determination '(by original inspection, and when requested, reinspection and appeal inspection)' and determination and certification of the condition of vessels and other carriers or receptacles for the transportation of grain insofar as it may affect the quality or condition of the grain. Subsec. (j). Pub. L. 94-582, Sec. 3(b), in redefining 'official inspection personnel', substituted provision declaring term to mean 'persons licensed or otherwise authorized by the Administrator pursuant to section 84 of this title to perform all or specified functions involved in official inspection, official weighing, or supervision of weighing, or in the supervision of official inspection, official weighing or supervision of weighing' for 'employees of State or other governmental agencies or commercial agencies or other persons who are licensed to perform all or specified functions involved in official inspection under this chapter; employees of the Department of Agriculture who are authorized to supervise official inspection and to conduct appeal inspection or initial inspection of United States grain in Canadian ports'. Subsec. (k). Pub. L. 94-582, Sec. 3(c), substituted 'Administrator' for 'Secretary' and 'official inspection or official weighing' for 'an official inspection'. Subsec. (l). Pub. L. 94-582, Sec. 3(d), substituted 'standards relating to kind, class, quality, and condition of grain,' for 'standards'. Subsec. (m). Pub. L. 94-582, Sec. 3(e), substituted definition of 'official agency' meaning 'any State or local governmental agency, or any person, designated by the Administrator pursuant to subsection (f) of section 79 of this title for the conduct of official inspection (other than appeal inspection), or subsection (b) of section 79a of this title for the conduct of supervision of weighing' for definition of 'official inspection agency' meaning 'the agency or person located at an inspection point designated by the Secretary for the conduct of official inspection under this chapter'. Subsec. (n). Pub. L. 94-582, Sec. 3(f), substituted 'Administrator' for 'Secretary'. Subsec. (u). Pub. L. 94-582, Sec. 3(g), included within term defined and its definition the concept of 'weighing' and substituted 'Administrator' for 'Secretary'. Subsecs. (v) to (aa). Pub. L. 94-582, Sec. 3(h), added subsecs. (v) to (aa). 1968 - Pub. L. 90-487 substituted provisions defining terms used in the chapter for provisions that the standards fixed and established by the Secretary of Agriculture be known as the official grain standards of the United States. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by Pub. L. 90-487, see section 2 of Pub. L. 90-487, set out as a note under section 78 of this title. ------DocID 9139 Document 107 of 2641------ -CITE- 7 USC Sec. 75a -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 75a. Federal Grain Inspection Service; Administrator -STATUTE- There is created and established in the Department of Agriculture a Service to be known as the Federal Grain Inspection Service, all the powers of which shall be exercised by an Administrator, under the general direction and supervision of the Secretary, who shall be appointed by the President, by and with the advice and consent of the Senate. The Administrator shall be responsible for the administration of this chapter and for the establishment of policies, guidelines, and regulations by which the Service is to carry out the provisions of this chapter. The Secretary may delegate authority to the Administrator to perform related functions for grain and similar commodities and products thereof under other statutes administered by the Department of Agriculture. Notwithstanding any other provision of law, the Secretary is authorized to appoint four individuals to positions at grade 16 of the General Schedule, in the Service. -SOURCE- (Aug. 11, 1916, ch. 313, Pt. B, Sec. 3A, as added Oct. 21, 1976, Pub. L. 94-582, Sec. 4, 90 Stat. 2868, and amended Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1604(b), 91 Stat. 1026.) -MISC1- AMENDMENTS 1977 - Pub. L. 95-113 inserted provisions authorizing Secretary to delegate authority to Administrator to perform related functions for grain and similar commodities and products thereof under other statutes administered by the Department of Agriculture and authorizing the Secretary to appoint four individuals to positions at grade 16 of the General Schedule in the Service. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE For effective date of section, see Effective Date of 1976 Amendment note set out under section 74 of this title. TERMINATION OF AUTHORITY TO PLACE POSITIONS IN GS-16, 17, AND 18 For termination (effective 180 days after Oct. 13, 1978) of authority of agencies to place positions in GS-16, 17, and 18, see section 414(a)(1)(B) of Pub. L. 95-454 set out as a note under section 5108 of Title 5, Government Organization and Employees. TEMPORARY ADVISORY COMMITTEE Section 1603 of Pub. L. 95-113 provided that: '(a) In order to assure the normal movement of grain in an orderly and timely manner, the Secretary of Agriculture shall establish a temporary advisory committee to provide advice to the Administrator of the Federal Grain Inspection Service with respect to the implementation of the United States Grain Standards Act of 1976 (see Short Title of 1976 Amendment note under section 71 of this title). The advisory committee shall consist of not more than twelve members, appointed by the Secretary, representing the interests of grain producers, consumers, and all segments of the grain industry, including grain inspection and weighing agencies. Members of the advisory committee shall be appointed not later than thirty days after the date of enactment of this Act (Sept. 29, 1977). '(b) The advisory committee shall be governed by the provisions of the Federal Advisory Committee Act (Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, set out in the Appendix to Title 5, Government Organization and Employees). '(c) The Administrator of the Federal Grain Inspection Service shall provide the advisory committee with necessary clerical assistance and staff personnel. '(d) Members of the advisory committee shall serve without compensation, if not otherwise officers or employees of the United States, except that members shall, while away from their homes or regular places of business in the performance of services under this title, be allowed travel expenses, including per diem in lieu of subsistence, as authorized under section 5703 of title 5 of the United States Code. '(e) The advisory committee shall terminate eighteen months after the date of enactment of this Act (Sept. 29, 1977). '(f) There are hereby authorized to be appropriated such sums as are necessary to carry out the provisions of this section.' TEMPORARY EXERCISE OF POWERS, DUTIES, AND AUTHORIZATIONS PENDING APPOINTMENT OF ADMINISTRATOR Section 25 of Pub. L. 94-582 provided that: 'The powers, duties, and authorizations established by this Act (see Short Title of 1976 Amendment note set out under section 71 of this title) for the Administrator of the Federal Grain Inspection Service shall in all instances be exercised by the Secretary of Agriculture of the United States during the period between the effective date of this Act (effective thirty days after Oct. 21, 1976) and the appointment of the Administrator.' ------DocID 9140 Document 108 of 2641------ -CITE- 7 USC Sec. 75b -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 75b. Committee on Grain Quality and Grain Quality Coordinator -STATUTE- (a) Establishment of Committee and Coordinator (1) Committee The Secretary of Agriculture (hereafter referred to in this title (FOOTNOTE 1) as the 'Secretary') shall establish, within the Department of Agriculture, a Committee on Grain Quality (hereafter referred to in this section as the 'Committee'). (FOOTNOTE 1) See References in Text note below. (2) Coordinator The Committee established under paragraph (1) shall be chaired by an individual, appointed by the Secretary, who shall serve as the Grain Quality Coordinator (hereafter referred to in this title (FOOTNOTE 1) as the 'Coordinator') and, in consultation with the Committee, carry out the duties described in subsection (b) of this section. (b) Duties The Coordinator shall be responsible for - (1) assembling and evaluating, in a systematic manner, concerns and problems with the quality of United States grain, expressed by foreign and domestic buyers and end-users; (2) developing and implementing a coordinated effort to inform and educate foreign buyers concerning the proper specifications of grain purchase contracts to obtain the quality of grain they desire; (3) reviewing the programs and activities of the Department of Agriculture with respect to United States grain to determine whether the activities are consistent with the provisions of this title (FOOTNOTE 2) (and other provisions of law) as such provisions relate to grain quality and grain quality competitiveness; (FOOTNOTE 2) See References in Text note below. (4) serving as the Federal Government coordinator with respect to grain quality and grain quality competitiveness; and (5) investigating and communicating, through the Secretary, to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate concerning - (A) actions undertaken by the Department of Agriculture - (i) to improve the quality of United States grain; and (ii) that are inconsistent with the goal of improving grain quality; (B) conditions in the production and marketing sectors that discourage improvements in grain quality; (C) interrelationships of rules and actions taken by the Federal Grain Inspection Service, other agencies of the Department of Agriculture, Food and Drug Administration, Environmental Protection Agency, and other Federal agencies, relating to grain production, handling, storage, transportation, and processing as such actions affect the wholesomeness and performance of grain; (D) recommendations for legislative or regulatory changes that would address grain quality issues; (E) progress made and benefits expected from the international harmonization of sanitary and phytosanitary requirements affecting grain; (F) potential opportunities and benefits from the international harmonization of grain grades and standards; (G) alternative forms of financial and technical assistance available and needed by producers and elevator operators to acquire and properly utilize grain cleaning, drying, and storage equipment; and (H) progress on requirements of other sections of this title. (FOOTNOTE 2) (c) Termination This section shall terminate on January 1, 2001. -SOURCE- (Pub. L. 101-624, title XX, Sec. 2002, Nov. 28, 1990, 104 Stat. 3928.) -REFTEXT- REFERENCES IN TEXT This title, referred to in subsecs. (a) and (b)(3), (5)(H), is title XX of Pub. L. 101-624, Nov. 28, 1990, 104 Stat. 3928, known as the Grain Quality Incentives Act of 1990. For complete classification of title XX to the Code, see Short Title of 1990 Amendment note set out under section 71 of this title and Tables. -COD- CODIFICATION Section was enacted as part of the Grain Quality Incentives Act of 1990, and not as part of the United States Grain Standards Act which comprises this chapter. ------DocID 9141 Document 109 of 2641------ -CITE- 7 USC Sec. 76 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 76. Standards and procedures; establishment, amendment, and revocation -STATUTE- (a) Authority of Administrator The Administrator is authorized to investigate the handling, weighing, grading, and transportation of grain and to fix and establish (1) standards of kind, class, quality, and condition for corn, wheat, rye, oats, barley, flaxseed, sorghum, soybeans, mixed grain, and such other grains as in his judgment the usages of the trade may warrant and permit, and (2) standards or procedures for accurate weighing and weight certification and controls, including safeguards over equipment calibration and maintenance, for grain shipped in interstate or foreign commerce; and the Administrator is authorized to amend or revoke such standards or procedures whenever the necessities of the trade may require. (b) Notice and opportunity for comment; standards regarding cleanliness of grain (1) Before establishing, amending, or revoking any standards under this chapter, the Administrator shall publish notice of the proposals and give interested persons opportunity to submit data, views, and arguments thereon and, upon request, an opportunity to present data, views, and arguments orally in an informal manner. No standards established or amendments or revocations of standards under this chapter shall become effective less than one calendar year after promulgation thereof, unless in the judgment of the Administrator, the public health, interest, or safety require that they become effective sooner. (2)(A)(i) If the Administrator determines that the establishment or amendment of standards regarding cleanliness conditions of wheat, corn, barley, sorghum and soybeans that meet the requirements for grade number 3 or better (as set forth in subparagraph (B)) would - (I) enhance the competitiveness of exports of wheat, corn, barley, sorghum and soybeans from the United States with wheat, corn, barley, sorghum and soybean exports marketed by other major exporters; (II) result in the maintenance or expansion of the United States export market share for wheat, corn, barley, sorghum and soybeans; (III) result in the maintenance or increase of United States producer income; and (IV) be in the interest of United States agriculture, taking into consideration technical constraints, economic benefits and costs to producers and industry, price competitiveness, and importer needs; the Administrator shall establish or amend the standards to include economically and commercially practical levels of cleanliness for wheat, corn, barley, sorghum and soybeans. (ii) The Administrator shall make a finding under this subsection for grain of the type described in clause (i) as soon as practicable after November 28, 1990. (B)(i) In establishing requirements for cleanliness characteristics, the Administrator shall - (I) consider technical constraints, economic benefits and costs to producers and industry, the price competitiveness of United States agricultural production, and levels of cleanliness met by major competing nations that export wheat, corn, barley, sorghum and soybeans; (II) promulgate regulations after providing for notice and an opportunity for public comment; and (III) phase in any requirements for cleanliness characteristics by incrementally decreasing the levels of the objectionable material permitted in shipments of grade number 3 or better wheat, corn, barley, sorghum and soybeans. (ii) Following the phase-in period referred to in clause (i)(III), subsequent revision of cleanliness requirements shall be conducted consistent with the schedule of the Administrator for reviewing grain standards. (C) If the Administrator determines to establish requirements for cleanliness characteristics under this section, the Administrator shall ensure that such requirements are fully implemented not later than 6 years after November 28, 1990. (c) Grade determining factors related to physical soundness and purity; notice and opportunity for comment (1) In establishing standards under subsection (a) of this section for each grain for which official grades are established, the Administrator shall establish for each such grain official grade-determining factors and factor limits that reflect the levels of soundness and purity that are consistent with end-use performance goals of the major foreign and domestic users of each such grain. Such factors and factor limits for grades number 3 and better shall provide users of such standards the best possible information from which to determine end-use product quality. The Administrator shall establish factors and factor limits that will provide that grain meeting the requirements for grades number 3 and better will perform in accordance with general trade expectations for the predominant uses of such grain. (2) In establishing factors and factor limits under paragraph (1), the Administrator shall provide for notice and an opportunity for public comment prior to making changes in the grade-determining factors and factor limits that shall be applicable under this section to grain that is officially graded. (d) Moisture content criterion If the Government of any country requests that moisture content remain a criterion in the official grade designations of grain, such criterion shall be included in determining the official grade designation of grain shipped to such country. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 4, 39 Stat. 483; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 762; Oct. 21, 1976, Pub. L. 94-582, Sec. 5, 90 Stat. 2869; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1604(c), 91 Stat. 1027; Dec. 23, 1985, Pub. L. 99-198, title XVI, Sec. 1671, 99 Stat. 1632; Nov. 28, 1990, Pub. L. 101-624, title XX, Sec. 2005, 2006, 104 Stat. 3930.) -MISC1- AMENDMENTS 1990 - Subsec. (b). Pub. L. 101-624, Sec. 2005, designated existing provisions as par. (1) and added par. (2). Subsecs. (c), (d). Pub. L. 101-624, Sec. 2006, added subsec. (c) and redesignated former subsec. (c) as (d). 1985 - Subsec. (c). Pub. L. 99-198 added subsec. (c). 1977 - Subsec. (a). Pub. L. 95-113 substituted 'sorghum' for 'grain sorghum', 'standards or procedures' for 'standards', 'weight certification and controls' for 'weight certification procedures and controls', and 'calibration and maintenance, for grain' for 'calibration and maintenance for grain'. 1976 - Subsec. (a). Pub. L. 94-582, Sec. 5(a), authorized weighing of grain, designated existing provisions as cl. (1), inserted cl. (2), and reenacted provision for amendment or revocation of standards. Subsec. (b). Pub. L. 94-582, Sec. 5(b), substituted 'Administrator' for 'Secretary' in two places. 1968 - Pub. L. 90-487 substituted provisions authorizing Secretary to establish, amend, and revoke standards for provisions making the use of official standards compulsory, setting out exceptions, and providing for the right of appeal. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by Pub. L. 90-487, see section 2 of Pub. L. 90-487, set out as a note under section 78 of this title. BENEFITS AND COSTS ASSOCIATED WITH IMPROVED GRAIN QUALITY Section 2003 of title XX of Pub. L. 101-624 provided that: 'The Administrator of the Federal Grain Inspection Service shall estimate the economic impact, including the benefits and costs and the distribution of such benefits and costs, of any major changes necessary to carry out the amendments made under this title to sections 4 and 13 of the United States Grain Standards Act (7 U.S.C. 76 and 87b) prior to making such changes.' REVISION OF GRAIN INSPECTION PROCEDURES TO REFLECT LEVELS OF INSECT INFESTATION Pub. L. 99-641, title III, Sec. 304, Nov. 10, 1986, 100 Stat. 3565, provided that: 'Not later than 6 months after the date of enactment of this Act (Nov. 10, 1986), the Administrator of the Federal Grain Inspection Service shall issue a final rule that revises grain inspection procedures and standards established under the United States Grain Standards Act (7 U.S.C. 71 et seq.) to more accurately reflect levels of insect infestation.' STUDY OF UNIFORM END-USE VALUE TESTS FOR GRAIN Pub. L. 99-641, title III, Sec. 307, Nov. 10, 1986, 100 Stat. 3566, provided that: '(a) Study. - The Secretary of Agriculture shall direct the Federal Grain Inspection Service and the Agricultural Research Service to conduct a study of the need for and availability of uniform end-use value tests for grain. The study shall include the following: '(1) A survey of domestic and foreign buyers of grain to identify the information about grain characteristics that would be most useful to such buyers. The survey shall take into account those factors that buyers specify in contracts, test for, measure, or would measure if tests were available, including - '(A) the starch, oil, and protein content, breakage susceptibility, and individual kernel moisture of corn; '(B) the baking characteristics, protein content, gluten content and quality, and milling hardness of wheat; and '(C) the protein, oil, and free-fatty-acid content of soybeans. '(2) A review of the development and availability of tests for the characteristics identified in the survey conducted under paragraph (1), including an evaluation of the costs of providing such tests. '(b) End-Use Tests. - '(1) Ongoing review. - The Secretary of Agriculture shall direct the Federal Grain Inspection Service and the Agricultural Research Service to maintain an ongoing review to determine the end-use tests that are of economic value to buyers, and the availability and costs of such tests. '(2) Revision of procedures. - The Administrator of the Federal Grain Inspection Service, to the extent practicable, shall revise official grain inspection and certification procedures to include within official inspection (as defined in section 3(i) of the United States Grain Standards Act (7 U.S.C. 75(i))) those tests that are identified under the study conducted under subsection (a) as useful, available, and economically feasible. '(c) Reports. - '(1) Study and revision of procedures. - Not later than 1 year after the date of enactment of this Act (Nov. 10, 1986), the Administrator of the Federal Grain Inspection Service shall submit a report to Congress setting forth the results of the study conducted under subsection (a) and actions taken under subsection (b)(2). '(2) Ongoing review. - The Administrator shall report yearly to Congress on the ongoing review conducted under subsection (b)(1).' NEW GRAIN CLASSIFICATIONS Section 1672 of Pub. L. 99-198 provided that: '(a) The Secretary of Agriculture shall direct the Federal Grain Inspection Service and the Agricultural Research Service to cooperate in developing new means of establishing grain classifications taking into account characteristics other than those visually evident. '(b) The Secretary shall report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, semiannually, with the first report due not later than December 31, 1985, on the status of cooperative efforts required under subsection (a), as such efforts relate to more accurately classifying types of wheat and other grains currently in use.' INVESTIGATION AND STUDY REGARDING ADEQUACY OF GRAIN STANDARDS; CHANGES IN STANDARDS; REPORT TO CONGRESS BY OCTOBER 21, 1978 Section 24 of Pub. L. 94-582 provided for an investigation and study to be made by the Administrator of the Federal Grain Inspection Service regarding the adequacy of the grain standards established under this chapter in relation to the needs and concerns of domestic and foreign grain buyers, with the Administrator to seek the advice of or employ the services of representatives of the grain industry, land grant colleges and other members of the public, the study to address specifically, without being limited to determining (A) if standards may be developed that would reduce grading errors and remove, where possible, subjective human judgment from grading by increased utilization of mechanical, electrical, and chemical means of grading, (B) whether grain should be subclassed according to color or other factor not affecting the quality of the grain, (C) whether the protein factor should be included in the standards, and (D) whether broken grain should be grouped together with foreign material, and the Administrator, as a result of such study, to make necessary changes in the grain standards in accordance with section 75a of this title, and to submit a report to Congress setting forth the findings of the study and actions taken as a result thereof not later than two years after Oct. 21, 1976. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 75, 77, 78, 79, 79a of this title. ------DocID 9142 Document 110 of 2641------ -CITE- 7 USC Sec. 77 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 77. Official inspection and weighing requirements; waiver; supervision by representatives of Administrator -STATUTE- (a) Official samples and certificates; waiver; excepted grains Whenever standards or procedures are effective under section 76 of this title for any grain - (1) no person shall ship from the United States to any place outside thereof any lot of such grain, unless such lot is officially weighed and officially inspected (on the basis of official samples taken after final elevation as near the final spout through which the grain passes as physically practicable as it is being loaded aboard, or while it is in, the final carrier in which it is to be transported from the United States) in accordance with such standards or procedures, and unless a valid official certificate showing the official grade designation and certified weight of the lot of grain has been provided by official inspection personnel and is promptly furnished by the shipper, or his agent, to the consignee with the bill of lading or other shipping documents covering the shipment: Provided, That the Administrator may waive the foregoing requirement in emergency or other circumstances which would not impair the objectives of this chapter: Provided further, That the Administrator shall waive the requirement for official inspection whenever the parties to a contract for such shipment of a lot of grain (which is not sold, offered for sale, or consigned for sale by grade) from the United States to any place outside thereof mutually agree under the contract to ship such lot of grain without official inspection being performed and a copy of the contract is furnished to the Administrator prior to shipment; (2) except as the Administrator may provide in emergency or other circumstances which would not impair the objectives of this chapter, all other grain transferred out of and all grain transferred into an export elevator at an export port location shall be officially weighed in accordance with such standards or procedure: Provided, That, unless the shipper or receiver requests that the grain be officially weighed, intracompany shipments of grain into an export elevator by any mode of transportation, grain transferred into an export elevator by transportation modes other than barge, and grain transferred out of an export elevator to destinations within the United States shall not be officially weighed; and (3) except as otherwise authorized by the Administrator, whenever a lot of grain is both officially inspected and officially weighed while being transferred into or out of a grain elevator, warehouse, or other storage or handling facility, an official certificate shall be issued showing both the official grade designation and the certified weight of the lot of grain. (b) Supervision by representatives of Administrator All official inspection and official weighing, whether performed by authorized Service employees or any other person licensed under section 84 of this title, shall be supervised by representatives of the Administrator, in accordance with such regulations as he may provide. (c) Testing for aflatoxin contamination of corn shipped in foreign commerce The Administrator is authorized and directed to require that all corn exported from the United States be tested to ascertain whether it exceeds acceptable levels of aflatoxin contamination, unless the contract for export between the buyer and seller stipulates that aflatoxin testing shall not be conducted. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 5, 39 Stat. 483; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 763; Oct. 21, 1976, Pub. L. 94-582, Sec. 6, 90 Stat. 2869; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1606(b), 91 Stat. 1030; Oct. 13, 1980, Pub. L. 96-437, Sec. 2, 94 Stat. 1870; Nov. 28, 1990, Pub. L. 101-624, title XX, Sec. 2007, 104 Stat. 3931.) -MISC1- AMENDMENTS 1990 - Subsec. (c). Pub. L. 101-624 added subsec. (c). 1980 - Subsec. (a)(2). Pub. L. 96-437 inserted proviso that, unless the shipper or receiver requests that the grain be officially weighed, intracompany shipments of grain into an export elevator by any mode of transportation, grain transferred into an export elevator by transportation modes other than barge, and grain transferred out of an export elevator to destinations within the United States shall not be officially weighed. 1977 - Subsec. (a). Pub. L. 95-113 substituted 'standards or procedures' for 'standards' wherever appearing. 1976 - Subsec. (a). Pub. L. 94-582 designated existing provisions as par. (1) of subsec. (a); struck out 'that is sold, offered for sale, or consigned for sale by grade' after 'any lot of such grain'; inserted official weighing requirement; substituted 'officially inspected (on the basis of official samples taken after final elevation as near the final spout through which the grain passes as physically practicable as it is being loaded aboard, or while it is in, the final carrier in which it is to be transported from the United States)' for 'officially inspected in accordance with such standards on the basis of official samples taken after final elevation as the grain is being loaded aboard, or while it is in, the final carrier in which it is to be transported from the United States'; required the certificate to show the certified weight of the lot of grain provided by official inspection personnel; substituted provision for waiver by the Administrator of requirement for official inspection certificate in emergency or other circumstances which would not impair the objectives of this chapter for provision for waiver by the Secretary of any requirement of this section with respect to shipments from or to any area or any other class of shipments when in his judgment it is impracticable to provide official inspection with respect to such shipments; inserted provision for waiver by Administrator of requirement for official inspection whenever the parties to a contract for such shipment of a lot of grain (which is not sold, offered for sale, or consigned for sale by grade) from the United States to any place outside thereof mutually agree under the contract to ship such lot of grain without official inspection being performed and a copy of the contract is furnished to the Administrator prior to shipment; and added pars. (2) and (3) of subsec. (a). Subsec. (b). Pub. L. 94-582 added subsec. (b). 1968 - Pub. L. 90-487 substituted provisions requiring an official inspection for export grains but authorizing the waiver of such requirements when official inspection is impracticable for provisions prohibiting misrepresentation respecting grade shipped or delivered for shipment, allowing reexamination, requiring hearing in the event of a false or misleading description, and allowing publication of findings. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by Pub. L. 90-487, see section 2 of Pub. L. 90-487, set out as a note under section 78 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 79, 79a, 87b of this title. ------DocID 9143 Document 111 of 2641------ -CITE- 7 USC Sec. 78 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 78. Use of official grade designations required; false or misleading grade designations for grain shipped out of the United States -STATUTE- (a) Whenever standards relating to kind, class, quality, or condition of grain are effective under section 76 of this title for any grain no person shall in any sale, offer for sale, or consignment for sale, which involves the shipment of such grain in interstate or foreign commerce, describe such grain as being of any grade in any advertising, price quotation, other negotiation of sale, contract of sale, invoice, bill of lading, other document, or description on bags or other containers of the grain, other than by an official grade designation, with or without additional information as to specified factors: Provided, That the description of such grain by any proprietary brand name or trademark that does not resemble an official grade designation, or with respect to interstate commerce, by the use of one or more grade factor designations set forth in the official United States standards for grain, or by other criteria shall not be deemed to be a description of grain as being of any grade. (b) No person shall, in any sale, offer for sale, or consignment for sale, of any grain which involves the shipment of such grain from the United States to any place outside thereof, knowingly describe such grain by any official grade designation, or other description, which is false or misleading. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 6, 39 Stat. 484; July 11, 1958, Pub. L. 85-509, 72 Stat. 352; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 763; Oct. 21, 1976, Pub. L. 94-582, Sec. 7, 90 Stat. 2870; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1606(c), 91 Stat. 1030.) -MISC1- AMENDMENTS 1977 - Subsec. (a). Pub. L. 95-113 substituted 'criteria' for 'factor information'. 1976 - Subsec. (a). Pub. L. 94-582 substituted 'standards relating to kind, class, quality, or condition of grain' for 'standards'. 1968 - Pub. L. 90-487 substituted provisions requiring the use of official grade designations and prohibiting the use of false or misleading description of grain shipped out of the United States, for provisions allowing the appeal to the Secretary from official grading, authorizing the payment of additional fees for employees required in making appeal inspections, and making the findings prima facie evidence of the grain's true grade. 1958 - Pub. L. 85-509 authorized payment of employees assigned to perform appeal inspection for all overtime, night, or holiday work, and permitted acceptance of reimbursement for any sums paid for such work. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE OF 1968 AMENDMENT Section 2 of Pub. L. 90-487 provided that: 'This Act (amending sections 71, 74, 75, 76, 77, 78, 79, 84, 85, 86, and 87 of this title and enacting sections 87a to 87h of this title) shall become effective one hundred and eighty days after enactment hereof (August 15, 1968), except that the repeal of the mandatory inspection provisions with respect to grain shipped or delivered for shipment in interstate commerce shall become effective thirty days after enactment hereof (August 15, 1968), and the provisions of sections 6(a) and 13(a)(5) of the United States Grain Standards Act, as amended by this Act (subsec. (a) of this section and section 87b(a)(5) of this title) shall then become effective with respect to such grain.' -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 87b of this title. ------DocID 9144 Document 112 of 2641------ -CITE- 7 USC Sec. 79 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 79. Official inspection -STATUTE- (a) Grain required to be officially inspected The Administrator is authorized to cause official inspection under the standards provided for in section 76 of this title to be made of all grain required to be officially inspected as provided in section 77 of this title, in accordance with such regulations as he may prescribe. (b) Inspections made pursuant to request of interested persons The Administrator is further authorized, upon request of any interested person, and under such regulations as he may prescribe, to cause official inspection to be made with respect to any grain whether by official sample, submitted sample, or otherwise within the United States under standards provided for in section 76 of this title, or, upon request of the interested person, under other criteria approved by the Administrator for determining the kind, class, quality, or condition of grain, or other facts relating to grain, whenever in his judgment providing such service will effectuate any of the objectives stated in section 74 of this title. (c) Reinspections and appeals; cancellation of superseded certificates; sale of samples The regulations prescribed by the Administrator under this chapter shall include provisions for reinspections and appeal inspections; cancellation and surrender of certificates superseded by reinspections and appeal inspections; and the use of standard forms for official certificates. The Administrator may provide by regulation that samples obtained by or for employees of the Service for purposes of official inspection shall become the property of the United States, and such samples may be disposed of without regard to the provisions of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 471 et seq.). (d) Official certificates as evidence Official certificates setting out the results of official inspection issued and not canceled under this chapter shall be received by all officers and all courts of the United States as prima facie evidence of the truth of the facts stated therein. (e) Official inspection at export port locations; delegation of authority to State agencies (1) Except as otherwise provided in paragraph (2) of this subsection, the Administrator shall cause official inspection at export port locations, for all grain required or authorized to be inspected by this chapter, to be performed by official inspection personnel employed by the Service or other persons under contract with the Service as provided in section 84 of this title. (2) If the Administrator determines, pursuant to paragraph (3) of this subsection, that a State agency is qualified to perform official inspection, meets the criteria in subsection (f)(1)(A) of this section, and (A) was performing official inspection at an export port location under this chapter on July 1, 1976, or (B)(i) performed official inspection at an export port location at any time prior to July 1, 1976, (ii) was designated under subsection (f) of this section on December 22, 1982, to perform official inspections at locations other than export port locations, and (iii) operates in a State from which total annual exports of grain do not exceed, as determined by the Administrator, 5 per centum of the total amount of grain exported from the United States annually, the Administrator may delegate authority to the State agency to perform all or specified functions involved in official inspection (other than appeal inspection) at export port locations within the State, including export port locations which may in the future be established, subject to such rules, regulations, instructions, and oversight as he may prescribe, and any such official inspection shall continue to be the direct responsibility of the Administrator. Any such delegation may be revoked by the Administrator, at his discretion, at any time upon notice to the State agency without opportunity for a hearing. (3) Prior to delegating authority to a State agency for the performance of official inspection at export port locations pursuant to paragraph (2) of this subsection, the Administrator shall (A) conduct an investigation to determine whether such agency is qualified, and (B) make findings based on such investigation. In conducting the investigation, the Administrator shall consult with, and review the available files of the Department of Justice, the Office of Investigation of the Department of Agriculture (or such other organization or agency within the Department of Agriculture which may be delegated the authority, in lieu thereof, to conduct investigations on behalf of the Department of Agriculture), and the General Accounting Office. (4) The Administrator may provide that grain loaded at an interior point in the United States into a rail car, barge, or other container as the final carrier in which it is to be transported from the United States shall be inspected in the manner provided in this subsection or subsection (f) of this section, as the Administrator determines will best meet the objectives of this chapter. (f) Official inspections at other than export port locations; designation of agencies or persons to conduct official inspections (1) With respect to official inspections other than at export port locations, the Administrator is authorized, upon application by any State or local governmental agency, or any person, to designate such agency or person as an official agency for the conduct of all or specified functions involved in official inspection (other than appeal inspection) at locations where the Administrator determines official inspection is needed, if - (A) the agency or person shows to the satisfaction of the Administrator that such agency or person - (i) has adequate facilities and qualified personnel for the performance of such official inspection functions; (ii) will provide for the periodic rotation of official inspection personnel among the grain elevators, warehouses, or other storage or handling facilities at which the State or person provides official inspection, as is necessary to preserve the integrity of the official inspection service; (iii) will meet training requirements and personnel standards established by the Administrator under section 84(g) of this title; (iv) will otherwise conduct such training and provide such supervision of its personnel as are necessary to assure that they will provide official inspection in accordance with this chapter and the regulations and instructions thereunder; (v) will not charge official inspection fees that are discriminatory or unreasonable; (vi) if a State or local governmental agency, will not use any moneys collected pursuant to the charging of fees for any purpose other than the maintenance of the official inspection operation or other agricultural programs operated by the State or local governmental agency; (vii) and any related entities do not have a conflict of interest prohibited by section 87 of this title; (viii) will maintain complete and accurate records of its organization, staffing, official activities, and fiscal operations, and such other records as the Administrator may require by regulation; (ix) if a State or local governmental agency, will employ personnel on the basis of job qualifications rather than political affiliations; (x) will comply with all provisions of this chapter and the regulations and instructions thereunder; and (xi) meets other criteria established in regulations issued under this chapter relating to official functions under this chapter; and (B) the Administrator determines that the applicant is better able than any other applicant to provide official inspection service. (2) Not more than one official agency or State delegated authority pursuant to subsection (e)(2) of this section for carrying out the inspection provisions of this chapter shall be operative at one time for any geographic area as determined by the Administrator to effectuate the objectives stated in section 74 of this title. (3) Except as authorized by the Administrator, no official agency or State delegated authority pursuant to subsection (e)(2) of this section shall officially inspect under this chapter any official or other sample drawn from a lot of grain and submitted for inspection unless such lot of grain is physically located within the geographic area assigned to the agency by the Administrator at the time such sample is drawn. (4) No State or local governmental agency or person shall provide any official inspection for the purposes of this chapter except pursuant to an unsuspended and unrevoked delegation of authority or designation by the Administrator, as provided in this section, or as provided in section 84(a) of this title. (g) Termination, renewal, amendment, cancellation, and revocation of designations of official agencies (1) Designations of official agencies shall terminate at such time as specified by the Administrator but not later than triennially and may be renewed in accordance with the criteria and procedure prescribed in subsection (f) of this section. (2) A designation of an official agency may be amended at any time upon application by the official agency if the Administrator determines that the amendment will be consistent with the provisions and objectives of this chapter; and a designation will be cancelled upon request by the official agency with ninety days written notice to the Administrator. A fee as prescribed by regulations of the Administrator shall be paid by the official agency to the Administrator for each such amendment, to cover the costs incurred by the Service in connection therewith, and it shall be deposited in the fund created in subsection (j) of this section. (3) The Administrator may revoke a designation of an official agency whenever, after opportunity for hearing is afforded the agency, the Administrator determines that the agency has failed to meet one or more of the criteria specified in subsection (f) of this section or the regulations under this chapter for the performance of official functions, or otherwise has not complied with any provision of this chapter or any regulation prescribed or instruction issued to such agency under this chapter, or has been convicted of any violation of other Federal law involving the handling or official inspection of grain: Provided, That the Administrator may, without first affording the official agency an opportunity for a hearing, suspend any designation pending final determination of the proceeding whenever the Administrator has reason to believe there is cause for revocation of the designation and considers such action to be in the best interest of the official inspection system under this chapter. The Administrator shall afford any such agency an opportunity for a hearing within thirty days after temporarily suspending such designation. (h) Official inspections at locations other than export port locations when designated official agencies are not available If the Administrator determines that official inspection by an official agency designated under subsection (f) of this section is not available on a regular basis at any location (other than at an export port location) where the Administrator determines such inspection is needed to effectuate the objectives stated in section 74 of this title, and that no official agency within reasonable proximity to such location is willing to provide or has or can acquire adequate personnel and facilities for providing such service on an interim basis, official inspection shall be provided by authorized employees of the Service, and other persons licensed by the Administrator to perform official inspection functions, as provided in section 84 of this title, until such time as the service can be provided on a regular basis by an official agency. (i) Official inspections in Canadian ports The Administrator is authorized to cause official inspection under this chapter to be made, as provided in subsection (a) of section 77 of this title, in Canadian ports of United States export grain transshipped through Canadian ports, and pursuant thereto the Secretary is authorized to enter into an agreement with the Canadian Government for such inspection. All or specified functions of such inspections shall be performed by official inspection personnel employed by the Service or, except for appeals, by persons operating under a contract with the Service. (j) Fees; establishment, amount, payment, etc. (1) The Administrator shall, under such regulations as the Administrator may prescribe, charge and collect reasonable inspection fees to cover the estimated cost to the Service incident to the performance of official inspection except when the official inspection is performed by a designated official agency or by a State under a delegation of authority. The fees authorized by this subsection shall, as nearly as practicable and after taking into consideration any proceeds from the sale of samples, cover the costs of the Service incident to its performance of official inspection services in the United States and on United States grain in Canadian ports, including administrative and supervisory costs related to such official inspection of grain. Such fees, and the proceeds from the sale of samples obtained for purposes of official inspection which become the property of the United States, shall be deposited into a fund which shall be available without fiscal year limitation for the expenses of the Service incident to providing services under this chapter. (2) Each designated official agency and each State agency to which authority has been delegated under subsection (e) of this section shall pay to the Administrator fees in such amount as the Administrator determines fair and reasonable and as will cover the estimated costs incurred by the Service relating to supervision of official agency personnel and supervision by Service personnel of its field office personnel, except costs incurred under paragraph (3) of subsection (g) of this section and sections 85, 86, and 87c of this title. The fees shall be payable after the services are performed at such times as specified by the Administrator and shall be deposited in the fund created in paragraph (1) of this subsection. Failure to pay the fee within thirty days after it is due shall result in automatic termination of the delegation or designation, which shall be reinstated upon payment, within such period as specified by the Administrator, of the fee currently due plus interest and any further expenses incurred by the Service because of such termination. The interest rate on overdue fees shall be as prescribed by the Secretary, but not less than the current average market yield on outstanding marketable obligations of the United States of comparable maturity, plus an additional charge of not to exceed 1 per centum per annum as determined by the Secretary and adjusted to the nearest one-eighth of 1 per centum. (3) Any sums collected or received by the Administrator under this chapter and deposited to the fund created in paragraph (1) of this subsection and any late payment penalties collected by the Administrator and credited to such fund may be invested by the Secretary in insured or fully collateralized, interest-bearing accounts or, at the discretion of the Secretary, by the Secretary of the Treasury in United States Government debt instruments. The interest earned on such sums and any late payment penalties collected by the Administrator shall be credited to the fund and shall be available without fiscal year limitation for the expenses of the Service incident to providing services under this chapter. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 7, 39 Stat. 484; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 763; Oct. 21, 1976, Pub. L. 94-582, Sec. 8(a), 90 Stat. 2870; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1602(a), 1604(d), 1606(d), 91 Stat. 1025, 1027, 1030; Aug. 13, 1981, Pub. L. 97-35, title I, Sec. 155(1), 95 Stat. 371; Dec. 22, 1981, Pub. L. 97-98, title IX, Sec. 1113(a), 95 Stat. 1268; Oct. 11, 1984, Pub. L. 98-469, Sec. 2(1), 98 Stat. 1831; Oct. 24, 1988, Pub. L. 100-518, Sec. 2(1), 102 Stat. 2584.) -STATAMEND- AMENDMENT OF SECTION For termination of amendment by section 2 of Pub. L. 100-518, see Effective and Termination Dates of 1988 Amendment note below. -REFTEXT- REFERENCES IN TEXT The Federal Property and Administrative Services Act of 1949, as amended, referred to in subsec. (c), is act June 30, 1949, ch. 288, 63 Stat. 377, as amended. The provisions of that act relating to management and disposal of government property are classified to chapter 10 (Sec. 471 et seq.) of Title 40, Public Buildings, Property, and Works. For complete classification of this Act to the Code, see Short Title note set out under section 471 of Title 40 and Tables. -COD- CODIFICATION Section as originally enacted was composed of part of section 7 of part B of act Aug. 11, 1916. Other provisions of section 7 were classified to former sections 80 to 83 of this title. -MISC3- AMENDMENTS 1988 - Subsec. (j). Pub. L. 100-518 temporarily reenacted subsec. (j) without change. See Effective and Termination Dates of 1988 Amendment note below. 1984 - Subsec. (j)(3). Pub. L. 98-469 temporarily added par. (3). See Effective and Termination Dates of 1984 Amendment note below. 1981 - Subsec. (e)(2). Pub. L. 97-98 inserted provision authorizing the Administrator to delegate authority to perform grain inspection functions at export port locations to any State agency that performed official inspection at an export port location at any time prior to July 1, 1976, was designated under subsec. (f) of this section on Dec. 22, 1981, to perform inspections at locations other than export port locations, and operates in a State from which the total annual exports of grain do not exceed 5 per centum of the total amount of grain exported from the United States. Subsec. (j). Pub. L. 97-35 temporarily designated existing provisions as par. (1), made changes in nomenclature and provided for inclusion, rather than exclusion, of administrative and supervisory costs, and added par. (2). See Effective and Termination Dates of 1981 Amendments note below. 1977 - Subsec. (b). Pub. L. 95-113, Sec. 1606(d), struck out reference to a determination of the quantity of sacks of grain. Subsec. (e). Pub. L. 95-113, Sec. 1604(d)(1), designated as par. (4) provisions, formerly forming a part of par. (2), authorizing the Administrator to provide that grain loaded at an interior point in the United States into a rail car, barge, or other container as the final carrier in which it is to be transported from the United States be inspected in the manner provided in this subsection or subsec. (f) of this section, as the Administrator determines best meets the objectives of this chapter. Subsec. (f)(2). Pub. L. 95-113, Sec. 1604(d)(2), substituted 'official agency or State delegated authority pursuant to subsection (e)(2) of this section for carrying out the inspection provisions of this chapter' for 'official agency for carrying out the provisions of this chapter', struck out ', but this paragraph shall not be applicable to prevent any inspection agency from operating in any area in which it was operative on August 15, 1968' after 'section 74 of this title', and redesignated other existing provisions as pars. (3) and (4). Subsec. (f)(3). Pub. L. 95-113, Sec. 1604(d)(2)(B), (C), redesignated a portion of existing par. (2) as (3) and substituted 'Except as authorized by the Administrator, no' for 'No'. Subsec. (f)(4). Pub. L. 95-113, Sec. 1604(d)(2)(D), redesignated a portion of existing par. (2) as (4). Subsec. (g)(1). Pub. L. 95-113, Sec. 1604(d)(3), substituted 'prescribed in subsection (f)' for 'prescribed in subsections (e) and (f)'. Subsec. (i). Pub. L. 95-113, Sec. 1604(d)(4), inserted provision that all or specified functions of the inspections be performed by official inspection personnel employed by the Service or, except for appeals, by persons operating under a contract with the Service. Subsec. (j). Pub. L. 95-113, Sec. 1602(a), revised provisions relating to fees so as to remove requirement that field supervision of inspection be supported by fees. 1976 - Subsec. (a). Pub. L. 94-582, Sec. 8(a)(1), substituted 'Administrator' for 'Secretary'. Subsec. (b). Pub. L. 94-582, Sec. 8(a)(1), (2), substituted 'Administrator' for 'Secretary' in two places and struck out from first sentence 'or with respect to United States grain in Canadian ports' after 'within the United States'. Subsec. (c). Pub. L. 94-582, Sec. 8(a)(1), (3), substituted 'Administrator' for 'Secretary' in two places; and substituted 'Service' for 'Department of Agriculture' and 'cancellation and surrender' for 'cancellation' and required regulation provision for use of standard forms for official certificates, respectively. Subsec. (d). Pub. L. 94-582, Sec. 8(a)(4), substituted 'Official certificates setting out the results of official inspection' for 'Certificates'. Subsec. (e). Pub. L. 94-582, Sec. 8(a)(5), added subsec. (e) and struck out former subsec. (e) which authorized charging and collection of reasonable fees to cover cost of official inspection and to cover costs of Department of Agriculture incident to performance of appeal and Canadian port inspection services for which fees are collected, including supervisory and administrative costs, and for deposit of fees and proceeds from sale of samples obtained for purposes of official inspection which become property of the United States into a fund to be available without fiscal year limitation for expenses of the Department of Agriculture incident to providing official inspection services. Fee provisions are now covered in subsec. (j)(2) of this section. Subsec. (f). Pub. L. 94-582, Sec. 8(a)(5), added par. (1) and second and third sentences of par. (2), and designated existing provisions as par. (2), substituting 'one official agency for carrying out the provisions of this chapter shall be operative at one time for any geographic area as determined by the Administrator to effectuate the objectives stated in section 74 of this title' for 'one inspection agency for carrying out the provisions of this section shall be operative at one time for any one city, town, or other area'. Subsecs. (g) to (j). Pub. L. 94-582, Sec. 8(a)(5), added subsecs. (g) to (j). 1968 - Pub. L. 90-487 substituted provisions covering the authority and funding of official inspections for provisions covering the licensing of inspectors and the utilization by the Secretary of Agriculture of State inspectors. EFFECTIVE AND TERMINATION DATES OF 1988 AMENDMENT Section 2 of Pub. L. 100-518 provided that the amendment made by Pub. L. 100-518 is effective for period Oct. 1, 1988, through Sept. 30, 1993, inclusive. EFFECTIVE AND TERMINATION DATES OF 1984 AMENDMENT Section 2 of Pub. L. 98-469 provided that the amendment made by Pub. L. 98-469 is effective for period beginning Oct. 11, 1984, and ending Sept. 30, 1988. EFFECTIVE AND TERMINATION DATES OF 1981 AMENDMENTS Section 1113(b) of Pub. L. 97-98 provided that: 'The provisions of this section (amending this section) shall become effective one hundred and eighty days after enactment of this Act (Dec. 22, 1981).' Section 155 of Pub. L. 97-35, as amended by Pub. L. 98-469, Sec. 1, Oct. 11, 1984, 98 Stat. 1831, provided that the amendment made by Pub. L. 97-35 is effective for period beginning Oct. 1, 1981, and ending Sept. 30, 1988. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by Pub. L. 90-487, see section 2 of Pub. L. 90-487, set out as a note under section 78 of this title. INVESTIGATIONS AND STUDIES OF GRAIN INSPECTION AND WEIGHING IN INTERIOR OF UNITED STATES; COMPLETION OF STUDIES AND SUBMISSION OF REPORTS BY MAY 20, 1979, AND NOV. 20, 1979, RESPECTIVELY Section 8(b) of Pub. L. 94-582, as amended by Pub. L. 95-113, title XVI, Sec. 1605(a), 1607(a), Sept. 29, 1977, 91 Stat. 1029, 1031, provided that: '(1) In order to provide information for use by the Congress in evaluating the needs of the grain inspection and weighing system at points in the United States other than at export port locations; the Administrator of the Federal Grain Inspection Service, the Director of the Office of Investigation of the United States Department of Agriculture (or such other organization or agency within the Department of Agriculture which may be delegated the authority, in lieu thereof, to conduct investigations on behalf of the Department of Agriculture), and the Comptroller General of the United States shall severally conduct investigations into and study grain inspection and weighing in the interior of the United States. The studies shall address, but are not limited to, the tasks of (A) determining the reliability and effectiveness of present official inspection and weighing procedures in the interior of the United States, and (B) evaluating the operating procedures and management practices of agencies providing grain inspection and weighing services in the interior of the United States, as they relate to the integrity and accuracy of the services. '(2) The Director of the Office of Investigation specifically is directed to study the extent of any irregularities or problem areas under the present inspection and weighing systems and conflicts of interest rules and develop factual summaries of evidence disclosed in the Director's investigations into violations of the United States Grain Standards Act (this chapter), the grain weighing provisions of the United States Warehouse Act (section 241 et seq. of this title), and related provisions of title 18 of the United States Code: Provided, That the Director shall not submit such summary with respect to any criminal investigation which is pending at the time the report is due. '(3) The Administrator of the Federal Grain Inspection Service shall make findings with respect to present grain inspection and weighing agencies at each inland terminal marketing area of the United States at which over fifty million bushels of grain are inspected in an average year, such findings to include (A) results of interviews with shippers who ship grain to and consignees who receive grain from such terminal marketing areas, and (B) a thorough analysis of inspection and weighing error rates of such agencies (which may include the application of statistical tolerances for expected variations), based on existing documentation and the sampling during the investigation of a representative number of randomly selected lots of grain shipped to and from such terminal marketing areas. '(4) The Director of the Office of Investigation and the Administrator of the Federal Grain Inspection Service shall complete their investigations and study and shall submit their reports to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Comptroller General not later than thirty months after the effective date of this Act (see Effective Date of 1976 Amendment note set out under section 74 of this title). '(5) The Comptroller General, in making his investigations and study, shall (A) assess the present grain inspection and weighing system in the interior of the United States, and (B) evaluate the reports submitted under this subsection by the Director of the Office of Investigation and the Administrator of the Federal Grain Inspection Service. The Comptroller General shall submit a report setting forth the findings of such study and evaluation and his recommendations for changes in the United States Grain Standards Act (this chapter) to such Committees not later than three years after the effective date of this Act (see Effective Date of 1976 Amendment note set out under section 74 of this title).' -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 75, 79a, 79b, 84, 87b, 87f-1, 87h of this title. ------DocID 9145 Document 113 of 2641------ -CITE- 7 USC Sec. 79a -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 79a. Weighing authority -STATUTE- (a) Official weighing in accordance with prescribed regulations The Administrator shall cause official weighing under standards or procedures provided for in section 76 of this title to be made of all grain required to be officially weighed as provided in section 77 of this title, in accordance with such regulations as the Administrator may prescribe. (b) Official weighing or supervision of weighing at grain elevators, warehouses, or other storage or handling facilities located other than at export elevators at export port locations The Administrator is authorized to cause official weighing or supervision of weighing under standards or procedures provided in section 76 of this title to be performed at any grain elevator, warehouse, or other storage or handling facility located other than at export elevators at export port locations at which official inspection is provided pursuant to the provisions of this chapter, in such manner as the Administrator deems appropriate and under such regulations as the Administrator may provide. (c) Personnel performing official weighing or supervision of weighing at locations at which official inspection is provided (1) With respect to official weighing or supervision of weighing for locations at which official inspection is provided by the Service, the Administrator shall cause such official weighing or supervision of weighing to be performed by official inspection personnel employed by the Service. (2) With respect to official weighing or supervision of weighing for any location at which official inspection is provided other than by the Service, the Administrator is authorized, with respect to export port locations, to delegate authority to perform official weighing or supervision of weighing to the State agency providing official inspection service at such location, and with respect to any other location, to designate the agency or person providing official inspection service at such location to perform official weighing or supervision of weighing, if such agency or person qualifies for a delegation of authority or designation under section 79 of this title, except that where the term 'official inspection' is used in such section it shall be deemed to refer to 'official weighing' or 'supervision of weighing' under this section. If such agency or person is not available to perform such weighing services, or the Administrator determines that such agency or person is not qualified to perform such weighing services, then (A) at export port locations official weighing or supervision of weighing shall be performed by official inspection personnel employed by the Service, and (B) at any other location, the Administrator is authorized to cause official weighing or supervision of weighing to be performed by official inspection personnel employed by the Service or designate any State or local governmental agency, or any person to perform official weighing or supervision of weighing, if such agency or person meets the same criteria that agencies must meet to be designated to perform official inspection as set out in section 79 of this title, except that where the term 'official inspection' is used in such section it shall be deemed to refer to 'supervision of weighing' under this section. Delegations and designations made pursuant to this subsection shall be subject to the same provisions for delegations and designations set forth in subsection (g) of section 79 of this title. (d) Official weighing in Canadian ports The Administrator is authorized to cause official weighing under this chapter to be made, as provided in subsection (a) of section 77 of this title, in Canadian ports of United States export grain transshipped through Canada; and pursuant thereto the Secretary is authorized to enter into an agreement with the Canadian Government for such official weighing. All or specified functions of such weighing shall be performed by official inspection personnel employed by the Service or, except for appeals, by persons operating under a contract with the Service. (e) Official weighing or supervision of weighing upon request of operators of grain elevators, warehouses, or other storage or handling facilities The Administrator is further authorized to cause official weighing or supervision of weighing under standards or procedures provided for in section 76 of this title to be made at grain elevators, warehouses, or other storage or handling facilities not subject to subsection (a) or (b) of this section, upon request of the operator of such grain elevator, warehouse, or other storage or handling facility and in accordance with such regulations as he may prescribe. (f) Demonstrated willingness of operators of grain elevators, warehouses, or other storage or handling facilities to meet equipment and personnel requirements No official weighing or supervision of weighing shall be provided for the purposes of this chapter at any grain elevator, warehouse, or other storage or handling facility until such time as the operator of the facility has demonstrated to the satisfaction of the Administrator that the operator (1) has and will maintain, in good order, suitable grain-handling equipment and accurate scales for all weighing of grain at the facility, in accordance with the regulations of the Administrator; (2) will permit only competent persons with a reputation for honesty and integrity and who are approved by the Administrator to operate the scales and to handle grain in connection with weighing of the grain, in accordance with this chapter; (3) when weighing is to be done by persons other than official inspection personnel, will require such persons to operate the scales in accordance with the regulations of the Administrator and to require that each lot of grain for delivery from any railroad car, truck, barge, vessel, or other means of conveyance at the facility is entirely removed from such means of conveyance and delivered to the scales without avoidable waste or loss, and each lot of grain weighed at the elevator for shipment from the facility is entirely delivered to the means of conveyance for which intended, and without avoidable waste or loss, in accordance with the regulations of the Administrator; (4) will provide all assistance needed by the Administrator for making any inspection or examination and carrying out other functions at the facility pursuant to this chapter; and (5) will comply with all other requirements of this chapter and the regulations hereunder. (g) Official certificates as evidence Official certificates setting out the results of official weighing or supervision of weighing, issued and not cancelled under this chapter, shall be received by all officers and all courts of the United States as prima facie evidence of the truth of the facts stated therein. (h) Weighing prohibited when not in accordance with prescribed procedures No State or local governmental agency or person shall weigh or state in any document the weight of grain determined at a location where official weighing is required to be performed as provided for in this section except in accordance with the procedures prescribed pursuant to this section. (i) Unauthorized weighing prohibited No State or local governmental agency or person other than an authorized employee of the Service shall perform official weighing or supervision of weighing for the purposes of this chapter except in accordance with the provisions of an unsuspended and unrevoked delegation of authority or designation by the Administrator as provided in this section. Not more than one official agency or State delegated authority pursuant to subsection (c)(2) of this section for carrying out the weighing provisions of this chapter shall be operative at one time for any geographic area as determined by the Administrator to effectuate the objectives stated in section 74 of this title. (j) Authority under United States Warehouse Act not limited The provisions of this section shall not limit any authority vested in the Secretary under the United States Warehouse Act (39 Stat. 486, as amended; 7 U.S.C. 241 et seq.). (k) Access to elevators, warehouses, or their storage or handling facilities The representatives of the Administrator shall be afforded access to any elevator, warehouse, or other storage or handling facility from which grain is delivered for shipment in interstate or foreign commerce or to which grain is delivered from shipment in interstate or foreign commerce and all facilities therein for weighing grain. (l) Fees; establishment, amount, payment, etc. (1) The Administrator shall, under such regulations as the Administrator may prescribe, charge and collect reasonable fees to cover the estimated costs to the Service incident to the performance of the functions provided for under this section except as otherwise provided in paragraph (2) of this subsection. The fees authorized by this paragraph shall, as nearly as practicable, cover the costs of the Service incident to performance of its functions related to weighing, including administrative and supervisory costs directly related thereto. Such fees shall be deposited into the fund created in section 79(j) of this title. (2) Each agency to which authority has been delegated under this section and each agency or other person which has been designated to perform functions related to weighing under this section shall pay to the Administrator fees in such amount as the Administrator determines fair and reasonable and as will cover the costs incurred by the Service relating to supervision of the agency personnel and supervision by Service personnel of its field office personnel incurred as a result of the functions performed by such agencies, except costs incurred under sections 79(g)(3), 85, 86, and 87c of this title. The fees shall be payable after the services are performed at such times as specified by the Administrator and shall be deposited in the fund created in section 79(j) of this title. Failure to pay the fee within thirty days after it is due shall result in automatic termination of the delegation or designation, which shall be reinstated upon payment, within such period as specified by the Administrator, of the fee currently due plus interest and any further expenses incurred by the Service because of such termination. The interest rate on overdue fees shall be as prescribed by the Secretary, but not less than the current average market yield on outstanding marketable obligations of the United States of comparable maturity, plus an additional charge of not to exceed 1 per centum per annum as determined by the Secretary, and adjusted to the nearest one-eighth of 1 per centum. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 7A, as added Oct. 21, 1976, Pub. L. 94-582, Sec. 9, 90 Stat. 2875, and amended Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1602(b), 1604(e), 1606(e), 91 Stat. 1025, 1027, 1030; Aug. 13, 1981, Pub. L. 97-35, title I, Sec. 155(2), 95 Stat. 371; Oct. 24, 1988, Pub. L. 100-518, Sec. 2(2), 102 Stat. 2585.) -STATAMEND- AMENDMENT OF SECTION For termination of amendment by section 2 of Pub. L. 100-518, see Effective and Termination Dates of 1988 Amendment note below. -REFTEXT- REFERENCES IN TEXT The United States Warehouse Act, referred to in subsec. (j), is part C of act Aug. 11, 1916, ch. 313, 39 Stat. 486, as amended, which is classified generally to chapter 10 (Sec. 241 et seq.) of this title. For complete classification of this Act to the Code, see section 241 of this title and Tables. -MISC2- AMENDMENTS 1988 - Subsec. (l). Pub. L. 100-518 temporarily amended subsec. (l) generally, substituting 'cover the costs of the Service' for 'cover the costs of the service' in par. (1). See Effective and Termination Dates of 1988 Amendment note below. 1981 - Subsec. (l). Pub. L. 97-35 temporarily designated existing provisions as par. (1), made changes in nomenclature, provided for inclusion, rather than exclusion, of administrative and supervisory costs, and struck out provisions respecting availability of deposited funds, and added par. (2). See Effective and Termination Dates of 1981 Amendment note below. 1977 - Subsec. (a). Pub. L. 95-113, Sec. 1606(e), substituted 'standards or procedures' for 'standards'. Subsec. (b). Pub. L. 95-113, Sec. 1604(e)(1), 1606(e), substituted 'The Administrator is authorized to cause official weighing or supervision of weighing under standards or procedures' for 'The Administrator is authorized to cause supervision of weighing under standards' and 'other than at export elevators at export port locations' for 'other than at export port locations'. Subsec. (c)(2). Pub. L. 95-113, Sec. 1604(e)(2), made technical amendments to conform par. (2) to increased authority granted in subsec. (b) to cause official weighing as well as supervision of weighing at interior inspection points and corrected a typographical error in which 'number' had been erroneously used for 'under' in text as originally enacted by Pub. L. 94-582. Subsec. (d). Pub. L. 95-113, Sec. 1604(e)(3), inserted requirement that all or specified functions of Canadian weighing be performed by official inspection personnel employed by the Service or, except for appeals, by persons operating under a contract with the Service. Subsec. (e). Pub. L. 95-113, Sec. 1604(e)(4), 1606(e), substituted 'under standards or procedures provided' for 'under standards provided' and struck out provisions which had required that the weighing service not be provided for periods of less than a year, that the fees therefor be set separately from the fees provided for in subsec. (l), and that they be reasonable, nondiscriminatory, and equal, as nearly as possible, to the cost of providing the service. Subsec. (f)(2). Pub. L. 95-113, Sec. 1604(e)(5)(A), substituted 'permit only competent persons with a reputation for honesty and integrity and who are approved by the Administrator' for 'employ only competent persons with a reputation for honesty and integrity'. Subsec. (f)(3). Pub. L. 95-113, Sec. 1604(e)(5)(B), substituted 'when weighing is to be done by persons other than official inspection personnel, will require such persons to operate the scales' for 'when weighing is to be done by employees of the facility, will require employees to operate the scales'. Subsec. (g). Pub. L. 95-113, Sec. 1604(e)(6), substituted 'official weighing or supervision of weighing' for 'official weighing'. Subsec. (i). Pub. L. 95-113, Sec. 1604(e)(7), (8), substituted 'No State or local governmental agency' for 'No State' and inserted provision that not more than one official agency or State delegated authority pursuant to subsection (c)(2) of this section for carrying out the weighing provisions of this chapter be operative at one time for any geographic area as determined by the Administrator to effectuate the objectives stated in section 74 of this title. Subsec. (l). Pub. L. 95-113, Sec. 1602(b), revised provisions relating to fees so as to remove requirement that field supervision of weighing be supported by fees. EFFECTIVE AND TERMINATION DATES OF 1988 AMENDMENT Section 2 of Pub. L. 100-518 provided that the amendment made by Pub. L. 100-518 is effective for period Oct. 1, 1988, through Sept. 30, 1993, inclusive. EFFECTIVE AND TERMINATION DATES OF 1981 AMENDMENT Section 155 of Pub. L. 97-35, as amended by Pub. L. 98-469, Sec. 1, Oct. 11, 1984, 98 Stat. 1831, provided that the amendment made by Pub. L. 97-35 is effective for period beginning Oct. 1, 1981, and ending Sept. 30, 1988. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE For effective date of section, see Effective Date of 1976 Amendment note set out under section 74 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 75, 84, 87, 87h of this title. ------DocID 9146 Document 114 of 2641------ -CITE- 7 USC Sec. 79b -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 79b. Testing of equipment -STATUTE- (a) Random and periodic testing at least annually; fees The Administrator shall provide for the testing of all equipment used in the sampling, grading, inspection, and weighing for the purpose of official inspection, official weighing, or supervision of weighing of grain located at all grain elevators, warehouses, or other storage or handling facilities at which official inspection or weighing services are provided under this chapter, to be made on a random and periodic basis, but at least annually and under such regulations as the Administrator may prescribe, as he deems necessary to assure the accuracy and integrity of such equipment. Such regulations shall provide for the charging and collection of reasonable fees to cover the estimated costs to the Service incident to the performance of such testing by employees of the Service. Such fees shall be deposited into the fund created by section 79(j) of this title. (b) Personnel to conduct testing The Administrator is authorized to cause such testing provided for in subsection (a) of this section to be performed (1) by personnel employed by the Service, or (2) by States, political subdivisions thereof, or persons under the supervision of the Administrator, under such regulations as the Administrator may prescribe. (c) Use of non-approved equipment prohibited Notwithstanding any other provision of law, no person shall use for the purposes of this chapter any such equipment not approved by the Administrator. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 7B, as added Oct. 21, 1976, Pub. L. 94-582, Sec. 9, 90 Stat. 2877, and amended Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1604(f), 91 Stat. 1028.) -MISC1- AMENDMENTS 1977 - Subsec. (a). Pub. L. 95-113, Sec. 1604(f)(1), (2), substituted 'and weighing for the purpose of official inspection, official weighing, or supervision of weighing of grain located at all grain elevators' for 'and weighing of grain located at all grain elevators' and inserted provisions that regulations provide for the charging and collection of reasonable fees to cover the estimated costs to the Service incident to the performance of testing by employees of the Service and that the fees be deposited into the fund created by section 79(j) of this title. Subsec. (c). Pub. L. 95-113, Sec. 1604(f)(3), substituted 'shall use for the purposes of this chapter' for 'shall use'. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE For effective date of section, see Effective Date of 1976 Amendment note set out under section 74 of this title. ------DocID 9147 Document 115 of 2641------ -CITE- 7 USC Sec. 79c -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 79c. Omitted -COD- CODIFICATION Section, act Aug. 11, 1916, ch. 313, part B, Sec. 7C, as added Aug. 13, 1981, Pub. L. 97-35, title I, Sec. 155(3), 95 Stat. 372, and amended Oct. 11, 1984, Pub. L. 98-469, Sec. 2(2), 98 Stat. 1831, which limited the total administrative and supervisory costs which could be incurred under this chapter for fiscal years 1982 through 1988, was effective for the period Oct. 1, 1981, through Sept. 30, 1988, pursuant to section 155 of Pub. L. 97-35, as amended. See section 79d of this title. ------DocID 9148 Document 116 of 2641------ -CITE- 7 USC Sec. 79d -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 79d. Limitation on administrative and supervisory costs -STATUTE- The total administrative and supervisory costs which may be incurred under this chapter for inspection and weighing (excluding standardization, compliance, and foreign monitoring activities) for each of the fiscal years 1989 through 1993 shall not exceed 40 per centum of the total costs for such activities carried out by the Service for such year. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 7D, as added Oct. 24, 1988, Pub. L. 100-518, Sec. 2(3), 102 Stat. 2585.) -STATAMEND- TERMINATION OF SECTION For termination of section by section 2 of Pub. L. 100-518, see Effective and Termination Dates note below. -MISC1- EFFECTIVE AND TERMINATION DATES Section 2 of Pub. L. 100-518 provided that section is effective for the period Oct. 1, 1988, through Sept. 30, 1993, inclusive. ------DocID 9149 Document 117 of 2641------ -CITE- 7 USC Sec. 80 to 83 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 80 to 83. Omitted -COD- CODIFICATION Sections were omitted in the general reorganization of this chapter by Pub. L. 90-487, Sec. 1, Aug. 15, 1968, 82 Stat. 761. Section 80, act Aug. 11, 1916, ch. 313, pt. B, Sec. 7 (part), 39 Stat. 484, provided for revocation and suspension of licenses issued by the Secretary of Agriculture. See section 85 of this title. Section 81, act Aug. 11, 1916, ch. 313, pt. B, Sec. 7 (part), 39 Stat. 484, prohibited the existence of an interest, financial or otherwise, direct or indirect, on the part of inspectors in grain elevators or warehouses or in the merchandising of grain. See section 87 of this title. Section 82, act Aug. 11, 1916, ch. 313, pt. B, Sec. 7 (part), 39 Stat. 484, required maintenance of records and reports by inspectors. See section 87a of this title. Section 83, act Aug. 11, 1916, ch. 313, pt. B, Sec. 7 (part), 39 Stat. 484, called for a semiannual report by the Secretary of Agriculture on the delivery of grain in the nation. ------DocID 9150 Document 118 of 2641------ -CITE- 7 USC Sec. 84 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 84. Licensing of inspectors -STATUTE- (a) Authorization The Administrator is authorized (1) to issue a license to any individual upon presentation to him of satisfactory evidence that such individual is competent, and is employed by an official agency or a State agency delegated authority under section 79 or 79a of this title, to perform all or specified functions involved in original inspection or reinspection functions involved in official inspection, or in the official weighing or the supervision of weighing, other than appeal weighing, of grain in the United States; (2) to authorize any competent employee of the Service to (A) perform all or specified original inspection, reinspection, or appeal inspection functions involved in official inspection of grain in the United States, or of United States grain in Canadian ports, (B) perform official weighing or supervision of weighing (including appeal weighing) of grain in the United States, or of United States grain in Canadian ports, (C) supervise the official inspection, official weighing, or supervision of weighing of grain in the United States and of United States grain in Canadian ports or the testing of equipment, and (D) perform monitoring activities in foreign ports with respect to grain officially inspected and officially weighed under this chapter; (3) to contract with any person or governmental agency to perform specified sampling, laboratory testing, and similar technical functions and to license competent persons to perform such functions pursuant to such contract; and (4) to contract with any competent person for the performance of monitoring activities in foreign ports with respect to grain officially inspected and officially weighed under this chapter. No person shall perform any official inspection or weighing function for purposes of this chapter unless such person holds an unsuspended and unrevoked license or authorization from the Administrator under this chapter. (b) Duration of licenses; suspension; reinstatement All classes of licenses issued under this chapter shall terminate triennially on a date or dates to be fixed by regulation of the Administrator: Provided, That any license shall be suspended automatically when the licensee ceases to be employed by an official agency or by a State agency under a delegation of authority pursuant to this chapter or to operate independently under the terms of a contract for the conduct of any functions involved in official inspection under this chapter: Provided further, That subject to subsection (c) of this section such license shall be reinstated if the licensee is employed by an official agency or by a State agency under a delegation of authority pursuant to this chapter or resumes operation under such a contract within one year of the suspension date and the license has not expired in the interim. (c) Examination of applicants; reexaminations The Administrator may require such examinations and reexaminations as he may deem warranted to determine the competence of any applicants for licenses, licensees, or employees of the Service, to perform any official inspection or weighing function under this chapter. (d) Inspectors performing under contract not deemed Federal employees Persons employed by an official agency (including persons employed by a State agency under a delegation of authority pursuant to this chapter) and persons performing official inspection functions under contract with the Service shall not, unless otherwise employed by the Federal Government, be determined to be employees of the Federal Government of the United States: Provided, That such persons shall be considered in the performance of any official inspection, official weighing, or supervision of weighing function as prescribed by this chapter or by the rules and regulations of the Administrator, as persons acting for or on behalf of the United States, for the purpose of determining the application of section 201 of title 18, to such persons and as employees of the Department of Agriculture assigned to perform inspection functions for the purposes of sections 1114 and 111 of title 18. (e) Hiring of official inspection personnel and supervisory personnel without regard to laws governing appointments to the competitive service The Administrator may hire (without regard to the provisions of title 5 governing appointments in the competitive service) as official inspection personnel any individual who is licensed (on October 21, 1976) to perform functions of official inspection under this chapter and as personnel to perform supervisory weighing or official weighing functions any individual who, on October 21, 1976, was performing similar functions: Provided, That the Administrator determines that such individual is of good moral character and is technically and professionally qualified for the duties to which the individual will be assigned. The Administrator may compensate such personnel at any rate within the appropriate grade of the General Schedule as the Administrator deems necessary without regard to section 5333 of title 5. (f) Periodic rotation of personnel The Administrator shall provide for the periodic rotation of supervisory personnel and official inspection personnel employed by the Service as he deems necessary to preserve the integrity of the official inspection and weighing system provided by this chapter. (g) Recruitment, training, and supervision of personnel; work production standards; exemption for certain personnel The Administrator shall develop and effectuate standards for the recruiting, training, and supervising of official inspection personnel and appropriate work production standards for such personnel, which shall be applicable to the Service, all State agencies under delegation of authority pursuant to this chapter, and all official agencies and all persons licensed or authorized to perform functions under this chapter: Provided, That persons licensed or authorized on October 21, 1976, to perform any official function under this chapter, shall be exempted from the uniform recruiting and training provisions of this subsection and regulations or standards issued pursuant thereto if the Administrator determines that such persons are technically and professionally qualified for the duties to which they will be assigned and they agree to complete whatever additional training the Administrator deems necessary. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 8, 39 Stat. 485; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 764; Oct. 21, 1976, Pub. L. 94-582, Sec. 10, 90 Stat. 2877; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1604(g), 1606(f), 91 Stat. 1028, 1030.) -REFTEXT- REFERENCES IN TEXT The provisions of title 5 governing appointments in the competitive service, referred to in subsec. (e), are classified to section 3301 et seq. of Title 5, Government Organization and Employees. The General Schedule, referred to in subsec. (e), is set out under section 5332 of Title 5. -MISC2- AMENDMENTS 1977 - Subsec. (a)(1). Pub. L. 95-113, Sec. 1604(g)(1)(A), substituted 'weighing, other than appeal weighing, of grain' for 'weighing of grain'. Subsec. (a)(2)(B). Pub. L. 95-113, Sec. 1604(g)(1)(B), substituted 'weighing (including appeal weighing) of grain in the United States, or of United States grain in Canadian ports' for 'weighing of grain'. Subsec. (a)(3). Pub. L. 95-113, Sec. 1604(g)(1)(C), substituted 'any person or governmental agency specified sampling, laboratory testing, and similar technical functions' for 'any person to perform specified sampling and laboratory testing'. Subsec. (e). Pub. L. 95-113, Sec. 1604(g)(2), inserted provisions authorizing the Administrator to compensate the personnel at any rate within the appropriate grade of the General Schedule as the Administrator deems necessary without regard to section 5333 of title 5. Subsec. (f). Pub. L. 95-113, Sec. 1606(f), substituted 'official inspection and weighing system' for 'official inspection system'. 1976 - Subsec. (a). Pub. L. 94-582 substituted 'Administrator' for 'Secretary' in two places; designated existing provisions as item (1) and substituted 'official agency or a State agency delegated authority under section 79 or 79a of this title, to perform all or specified functions involved in original inspection or reinspection functions involved in official inspection, or in the official weighing or the supervision of weighing of grain in the United States' for 'official inspection agency to perform all or specified functions involved in official inspection'; substituted provisions designated as item (2) for 'to authorize any competent employee of the Department of Agriculture to perform all or specified functions involved in supervisory or appeal inspection or initial inspection of United States grain in Canadian ports'; inserted items (3) and (4); struck out authorization to license any competent individual to perform specified functions involved in official inspection under a contract with the Department of Agriculture; and conditioned performance of any official weighing function on the holding of a license or authorization. Subsec. (b). Pub. L. 94-582 substituted 'Administrator' for 'Secretary', 'official agency' for 'official inspection agency' in two places, and 'subsection (c)' for 'paragraph (c)', and inserted provision respecting employment of licensee by a State agency under a delegation of authority pursuant to this chapter in two places. Subsec. (c). Pub. L. 94-582 substituted 'Administrator' for 'Secretary' and 'Service' for 'Department of Agriculture' and included performance of weighing function. Subsec. (d). Pub. L. 94-582 substituted 'official agency (including persons employed by a State agency under a delegation of authority pursuant to this chapter)' for 'official inspection agency' and 'contract with the Service' for 'contracts with the Department of Agriculture' and inserted provision respecting status as persons acting for or on behalf of the United States in application of sections 118, 201, and 1114 of Title 18. Subsecs. (e) to (g). Pub. L. 94-582 added subsecs. (e) to (g). 1968 - Pub. L. 90-487 substituted provisions for the licensing and examination and reexamination of inspectors for provisions authorizing the Secretary of Agriculture to promulgate rules and regulations. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by Pub. L. 90-487, see section 2 of Pub. L. 90-487, set out as a note under section 78 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 75, 77, 79, 87b of this title. ------DocID 9151 Document 119 of 2641------ -CITE- 7 USC Sec. 85 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 85. Suspension, revocation, and refusal to renew licenses; hearing; grounds; temporary suspension -STATUTE- The Administrator may refuse to renew, or may suspend or revoke, any license issued under this chapter whenever, after the licensee has been afforded an opportunity for a hearing, the Administrator shall determine that such licensee is incompetent, or has inspected or weighed or supervised the weighing of grain for purposes of this chapter, by any standard or criteria other than as provided for in this chapter, or has issued, or caused the issuance of, any false or incorrect official certificate or other official form, or has knowingly or carelessly inspected or weighed or supervised the weighing of grain improperly under this chapter, or has accepted any money or other consideration, directly or indirectly, for any neglect or improper performance of duty, or has used his license or allowed it to be used for any improper purpose, or has otherwise violated any provision of this chapter or of the regulations prescribed or instructions issued to him by the Administrator under this chapter. The Administrator may, without first affording the licensee an opportunity for a hearing, suspend any license temporarily pending final determination whenever the Administrator deems such action to be in the best interests of the official inspection system under this chapter. The Administrator may summarily revoke any license whenever the licensee has been convicted of any offense prohibited by section 87b of this title or convicted of any offense proscribed by title 18, with respect to performance of functions under this chapter. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 9, 39 Stat. 485; Aug. 1, 1956, ch. 812, 70 Stat. 780; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 765; Oct. 21, 1976, Pub. L. 94-582, Sec. 11, 90 Stat. 2879.) -MISC1- AMENDMENTS 1976 - Pub. L. 94-582 substituted 'Administrator' for 'Secretary' wherever appearing and 'inspected or weighed or supervised the weighing of' for 'inspected' in two places and authorized summary revocation of licenses based on conviction of prescribed offenses. 1968 - Pub. L. 90-487 substituted provisions authorizing the suspension, revocation, and refusal of renewal of licenses by the Secretary, for provisions setting out the penalties for violations of this chapter. 1956 - Act Aug. 1, 1956, provided penalties for persons who knowingly sample grain improperly and for persons who knowingly or willfully cause or attempt to cause the issuance of a false grade certificate by deceptive loading, handling, or sampling of grain, or any other means. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by Pub. L. 90-487, see section 2 of Pub. L. 90-487, set out as a note under section 78 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 79, 79a, 87e of this title. ------DocID 9152 Document 120 of 2641------ -CITE- 7 USC Sec. 86 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 86. Refusal of inspection and weighing services; civil penalties -STATUTE- (a) Grounds for refusal of services The Administrator may (for such period, or indefinitely, as he deems necessary to effectuate the purposes of this chapter) refuse to provide official inspection or the services related to weighing otherwise available under this chapter with respect to any grain offered for such services, or owned, wholly or in part, by any person if he determines (1) that the individual (or in case such person is a partnership, any general partner; or in case such person is a corporation, any officer, director, or holder or owner of more than 10 per centum of the voting stock; or in case such person is an unincorporated association or other business entity, any officer or director thereof; or in case of any such business entity, any individual who is otherwise responsibly connected with the business) has knowingly committed any violation of section 87b of this title, or has been convicted of any violation of other Federal law with respect to the handling, weighing, or official inspection of grain, or that official inspection or the services related to weighing have been refused for any of the above-specified causes (for a period which has not expired) to such person, or any other person conducting a business with which the former was, at the time such cause existed, or is responsibly connected; and (2) that providing such service with respect to such grain would be inimical to the integrity of the service. (b) Persons responsibly connected with a business For purposes of subsection (a) of this section, a person shall be deemed to be responsibly connected with a business if he was or is a partner, officer, director, or holder or owner of 10 per centum or more of its voting stock, or an employee in a managerial or executive capacity. (c) Civil penalties In addition to, or in lieu of, penalties provided under section 87c of this title, or in addition to, or in lieu of, refusal of official inspection or services related to weighing in accordance with this section, the Administrator may assess against any person who has knowingly committed any violation of section 87b of this title or has been convicted of any violation of other Federal law with respect to the handling, weighing, or official inspection of grain a civil penalty not to exceed $75,000 for each such violation as the Administrator determines is appropriate to effectuate the objectives stated in section 74 of this title. (d) Opportunity for hearing; temporary refusal without hearing pending final determination Before official inspection or services related to weighing is refused to any person or a civil penalty is assessed against any person under this section, such person shall be afforded opportunity for a hearing in accordance with sections 554, 556, and 557 of title 5: Provided, That the Administrator may, without first affording the person a hearing, refuse official inspection or services related to weighing temporarily pending final determination whenever the Administrator has reason to believe there is cause for refusal of inspection or services related to weighing and considered such action to be in the best interest of the official inspection system under this chapter. The Administrator shall afford such person an opportunity for a hearing within seven days after temporarily refusing official inspection or services related to weighing; and such hearing and ancillary procedures related thereto shall be conducted in an expedited manner. (e) Collection and disposition of civil penalties Moneys received in payment of such civil penalties shall be deposited in the general fund of the United States Treasury. Upon any failure to pay the penalties assessed under this section, the Administrator may request the Attorney General of the United States to institute a civil action to collect the penalties in the appropriate court identified in subsection (h) of section 87f of this title for the jurisdiction in which the respondent is found or resides or transacts business, and such court shall have jurisdiction to hear and decide any such action. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 10, 39 Stat. 485; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 765; Oct. 21, 1976, Pub. L. 94-582, Sec. 12, 90 Stat. 2879.) -MISC1- AMENDMENTS 1976 - Subsec. (a). Pub. L. 94-582 substituted 'Administrator' for 'Secretary', 'grain offered for such services' for 'grain offered for inspection', 'has knowingly committed any violation of section 87b of this title or has been convicted of any violation of other Federal law with respect to the handling, weighing, or official inspection of grain, or that official inspection or the services related to weighing have been refused' for 'has been convicted of any violation of section 87b of this title, or that official inspection has been refused', and 'integrity of the service' for 'integrity of the official inspection service', and authorized refusal of provision of services relating to weighing. Subsec. (c). Pub. L. 94-582 added subsec. (c). Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 94-582 redesignated provisions of former subsec. (c) as (d), inserted 'or services related to weighing' before 'is refused', inserted 'or a civil penalty is assessed against any person under this section' after 'to any person', provided for the hearing under sections 554, 556, and 557 of title 5, and inserted provisions relating to temporary refusal without hearing pending final determination. Subsec. (e). Pub. L. 94-582 added subsec. (e). 1968 - Pub. L. 90-487 substituted provisions authorizing the Secretary to refuse official inspection and affording an opportunity for a hearing in such a case, for provisions setting the penalty for interference with the execution of official duties. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by Pub. L. 90-487, see section 2 of Pub. L. 90-487, set out as a note under section 78 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 79, 79a, 87c of this title. ------DocID 9153 Document 121 of 2641------ -CITE- 7 USC Sec. 87 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87. Conflicts of interest -STATUTE- (a) Prohibition with respect to persons licensed or authorized by Administrator to perform official functions No person licensed or authorized by the Administrator to perform any official function under this chapter, or employed by the Administrator in otherwise carrying out any of the provisions of this chapter, shall, during the term of such license, authorization, or employment, (a) be financially interested (directly or otherwise) in any business entity owning or operating any grain elevator or warehouse or engaged in the merchandising of grain, or (b) be in the employment of, or accept gratuities from, any such entity, or (c) be engaged in any other kind of activity specified by regulation of the Administrator as involving a conflict of interest: Provided, however, That the Administrator may license qualified employees of any grain elevators or warehouses to perform official sampling functions, under such conditions as the Administrator may by regulation prescribe, and the Administrator may by regulation provide such other exceptions to the restrictions of this section as he determines are consistent with the purposes of this chapter. (b) Prohibition with respect to personnel of official or State agencies and business or governmental entities related to such agencies; substantial stockholder; use of official inspection service; authority delegation; report to Congressional committees (1) No official agency or a State agency delegated authority under this chapter, or any member, director, officer, or employee thereof, and no business or governmental entity related to any such agency, shall be employed in or otherwise engaged in, or directly or indirectly have any stock or other financial interest in, any business involving the commercial transportation, storage, merchandising, or other commercial handling of grain, or the use of official inspection service (except that in the case of a producer such use shall not be prohibited for grain in which he does not have an interest); and no business or governmental entity conducting any such business, or any member, director, officer, or employee thereof, and no other business or governmental entity related to any such entity, shall operate or be employed by or directly or indirectly have any stock or other financial interest in, any official agency or a State agency delegated inspection authority. Further, no substantial stockholder in any incorporated official agency shall be employed in or otherwise engaged in, or be a substantial stockholder in any corporation conducting any such business, or directly or indirectly have any other kind of financial interest in any such business; and no substantial stockholder in any corporation conducting such a business shall operate or be employed by or be a substantial stockholder in, or directly or indirectly have any other kind of financial interest in, any official agency. (2) A substantial stockholder of a corporation shall be any person holding 2 per centum or more, or one hundred shares or more, of the voting stock of the corporation, whichever is the lesser interest. Any entity shall be considered to be related to another entity if it owns or controls, or is owned or controlled by, such other entity, or both entities are owned or controlled by another entity. (3) Each State agency delegated official weighing authority under section 79a of this title and each State or local agency or other person designated by the Administrator under such section to perform official weighing or supervision of weighing shall be subject to the provisions of subsection (b) of this section. The term 'use of official inspection service' shall be deemed to refer to the use of the services provided under such a delegation or designation. (4) If a State or local governmental agency is delegated authority to perform official inspection or official weighing or supervision of weighing, or a State or local governmental agency is designated as an official agency, the Administrator shall specify the officials and other personnel thereof to which the conflict of interest provisions of this subsection (b) apply. (5) Notwithstanding the foregoing provisions of this subsection, the Administrator may delegate authority to a State agency or designate a governmental agency, board of trade, chamber of commerce, or grain exchange to perform official inspection or perform official weighing or supervision of weighing except that for purposes of supervision of weighing only, he may also designate any other person, if he determines that any conflict of interest which may exist between the agency or person or any member, director, officer, employee, or stockholder thereof and any business involving the transportation, storage, merchandising, or other handling of grain or use of official inspection or weighing service is not such as to jeopardize the integrity or the effective and objective operation of the functions performed by such agency. Whenever the Administrator makes such a determination and makes a delegation or designation to an agency that has a conflict of interest otherwise prohibited by this subsection, the Administrator shall, within thirty days after making such a determination, submit a report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate, detailing the factual bases for such determination. (c) Official agencies or State agencies not prevented from engaging in business of weighing grain The provisions of this section shall not prevent an official agency or State agency delegated authority under this chapter from engaging in the business of weighing grain. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 11, 39 Stat. 485; Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 766; Oct. 21, 1976, Pub. L. 94-582, Sec. 13, 90 Stat. 2880; S. Res. 4, Feb. 4, 1977; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1604(h), 1606(g), 91 Stat. 1028, 1030.) -MISC1- AMENDMENTS 1977 - Subsec. (b)(3). Pub. L. 95-113, Sec. 1604(h)(1), substituted 'to perform official weighing or supervision of weighing' for 'to perform supervision of weighing'. Subsec. (b)(4). Pub. L. 95-113, Sec. 1606(g), substituted 'official weighing or supervision of weighing' for 'official weighing'. Subsec. (b)(5). Pub. L. 95-113, Sec. 1604(h)(2), substituted 'to perform official inspection or perform official weighing or supervision of weighing except that' for 'to perform official inspection or perform supervision of weighing except that' and 'member, director, officer' for 'member, officer'. Subsec. (c). Pub. L. 95-113, Sec. 1604(h)(3), inserted 'or State agency delegated authority under this chapter' after 'official agency'. 1976 - Subsec. (a). Pub. L. 94-582, Sec. 13(a)-(c), substituted 'Administrator' for 'Secretary' wherever appearing and 'perform any official function' for 'perform any official inspection function', and designated first paragraph provisions, as amended, as subsec. (a), respectively. Subsecs. (b), (c). Pub. L. 94-582, Sec. 13(c), added subsecs. (b) and (c). 1968 - Pub. L. 90-487 substituted provisions prohibiting a conflict of interest on the part of inspectors who are interested financially in a grain elevator or in grain merchandising, for provisions covering the separability of provisions of this chapter. -CHANGE- CHANGE OF NAME Committee on Agriculture and Forestry of Senate abolished and replaced by Committee on Agriculture, Nutrition, and Forestry of Senate, effective Feb. 11, 1977. See Rule XXV of Standing Rules of the Senate, as amended by Senate Resolution 4 (popularly cited as the 'Committee System Reorganization Amendments of 1977'), approved Feb. 4, 1977. -MISC4- EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by Pub. L. 90-487, see section 2 of Pub. L. 90-487, set out as a note under section 78 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 79, 87b of this title. ------DocID 9154 Document 122 of 2641------ -CITE- 7 USC Sec. 87a -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87a. Records -STATUTE- (a) Samples of grain Every official agency, every State agency delegated authority under this chapter, and every person licensed to perform any official inspection or official weighing or supervision of weighing function under this chapter shall maintain such samples of officially inspected grain and such other records as the Administrator may by regulation prescribe for the purpose of administration and enforcement of this chapter. (b) Period of maintenance Every official agency, every State agency delegated authority under this chapter, and every person licensed to perform any official inspection or official weighing or supervision of weighing function under this chapter required to maintain records under this section shall keep such records for a period of five years after the inspection, weighing, or transaction, which is the subject of the record, occurred: Provided, That grain samples shall be required to be maintained only for such period not in excess of ninety days as the Administrator, after consultation with the grain trade and taking into account the needs and circumstances of local markets, shall prescribe; and in specific cases other records may be required by the Administrator to be maintained for not more than three years in addition to the five-year period whenever in his judgment the retention of such records for the longer period is necessary for the effective administration and enforcement of this chapter. (c) Access to records; audits Every official agency, every State agency delegated authority under this chapter, and every person licensed to perform any official inspection or official weighing or supervision of weighing function under this chapter required to maintain records under this section shall permit any authorized representative of the Secretary or Administrator or the Comptroller General of the United States to have access to, and to copy, such records at all reasonable times. The Administrator shall, from time to time, perform audits of official agencies and State agencies delegated authority of this chapter in such manner and at such periodic intervals as he deems appropriate. (d) Maintenance of records by persons or entities receiving official inspection or weighing services; access to records and facilities Every State, political subdivision thereof, or person who is the owner or operator of a commercial grain elevator, warehouse, or other storage or handling facility or is engaged in the merchandising of grain other than as a producer, and who, at any time, has obtained or obtains official inspection or weighing services shall maintain such complete and accurate records for such period of time as the Administrator may, by regulation, prescribe for the purpose of the administration and enforcement of this chapter, and permit any authorized representative of the Secretary or the Administrator, at all reasonable times, to have access to, and to copy, such records and to have access to any grain elevator, warehouse, or other storage or handling facility used by such persons for handling of grain. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 12, as added Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 766, and amended Oct. 21, 1976, Pub. L. 94-582, Sec. 14, 90 Stat. 2882; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1601, 1604(i), 91 Stat. 1024, 1029.) -MISC1- PRIOR PROVISIONS A prior section 12 of Act Aug. 11, 1916, ch. 313, pt. B, 39 Stat. 485, which appropriated a sum of $250,000 for expenses of carrying into effect this chapter, was not classified to the Code. AMENDMENTS 1977 - Subsecs. (a), (b). Pub. L. 95-113, Sec. 1604(i)(1), inserted ', every State agency delegated authority under this chapter,' after 'official agency'. Subsec. (c). Pub. L. 95-113, Sec. 1604(i)(1), (2), inserted ', every State delegated authority under this chapter,' after 'official agency' and corrected a typographical error in Pub. L. 94-582 under which 'delegate authority of this chapter' had been erroneously used instead of 'delegated authority under this chapter'. Subsec. (d). Pub. L. 95-113, Sec. 1601, substituted 'shall maintain such complete and accurate records for such period of time as the Administrator may, by regulation, prescribe for the purpose of the administration and enforcement of this chapter' for 'shall, within the five-year period thereafter, maintain complete and accurate records of purchases, sales, transportation, storage, weighing, handling, treating, cleaning, drying, blending, and other processing, and official inspection and official weighing of grain,'. 1976 - Subsec. (a). Pub. L. 94-582 substituted 'official agency' for 'official inspection agency' and 'Administrator' for 'Secretary' and inserted reference to licensed performance of official weighing or supervision of weighing function. Subsec. (b). Pub. L. 94-582 substituted 'Every official agency and every person licensed to perform any official inspection or official weighing or supervision of weighing function under this chapter' for 'Every official inspection agency' and 'Administrator' for 'Secretary' in two places, increased from two to five years the period of time for keeping the records, and inserted provision for keeping the records after the weighing. Subsec. (c). Pub. L. 94-582 substituted 'Every official agency and every person licensed to perform any official inspection or official weighing or supervision of weighing function under this chapter' for 'Every official inspection agency', provided for access to and the copying of records by any authorized representative of the Administrator or the Comptroller General, and required Administrator audits of official agencies and State agencies delegate authority. Subsec. (d). Pub. L. 94-582 added subsec. (d). EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE For effective date of section, see section 2 of Pub. L. 90-487, set out as an Effective Date of 1968 Amendment note under section 78 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 87b of this title. ------DocID 9155 Document 123 of 2641------ -CITE- 7 USC Sec. 87b -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87b. Prohibited acts -STATUTE- (a) No person shall - (1) knowingly falsely make, issue, alter, forge, or counterfeit any official certificate or other official form or official mark; (2) knowingly utter, publish, or use as true any falsely made, issued, altered, forged, or counterfeited official certificate or other official form or official mark, or knowingly possess, without promptly notifying the Administrator or his representative, or fail to surrender to such a representative upon demand, any falsely made, issued, altered, forged, or counterfeited official certificate or other official form, or any device for making any official mark or simulation thereof, or knowingly possess any grain in a container bearing any falsely made, issued, altered, forged, or counterfeited official mark without promptly giving such notice; (3) knowingly cause or attempt (whether successfully or not) to cause the issuance of a false or incorrect official certificate or other official form by any means, including but not limited to deceptive loading, handling, weighing, or sampling of grain, or submitting grain for official inspection or official weighing or supervision of weighing knowing that it has been deceptively loaded, handled, weighed, or sampled, without disclosing such knowledge to the official inspection personnel before official sampling or official weighing or supervision of weighing; (4) alter any official sample of grain in any manner or, knowing that an official sample has been altered, thereafter represent it as an official sample; (5) knowingly use any official grade designation or official mark on any container of grain by means of a tag, label, or otherwise, unless the grain in such container was officially inspected on the basis of an official sample taken while the grain was being loaded into or was in such container or officially weighed, respectively, and the grain was found to qualify for such designation or mark; (6) knowingly make any false representation that any grain has been officially inspected, or officially inspected and found to be of a particular kind, class, quality, or condition, or that particular facts have been established with respect to grain by official inspection under this chapter, or that any weighing service under this chapter has been performed with respect to grain; (7) improperly influence, or attempt to improperly influence, any official inspection personnel or personnel of agencies delegated authority or of agencies or other persons designated under this chapter or any officer or employee of the Department of Agriculture with respect to the performance of his duties under this chapter; (8) forcibly assault, resist, oppose, impede, intimidate, or interfere with any official inspection personnel or personnel of agencies delegated authority or of agencies or other persons designated under this chapter or any officer or employee of the Department of Agriculture in, or on account of, the performance of his duties under this chapter; (9) falsely represent that he is licensed or authorized to perform an official inspection or official weighing or supervision of weighing function under this chapter; (10) use any false or misleading means in connection with the making or filing of an application for official inspection or official weighing or supervision of weighing; (11) violate any provision of section 77; 78; 79(f)(2), (3), or (4); 79a; 79b(c); 84; 87; 87a; or 87f-1 of this title; (12) knowingly engage in falsely stating or falsifying the weight of any grain shipped in interstate or foreign commerce by any means, including, but not limited to, the use of inaccurate, faulty, or defective weighing equipment; or (13) knowingly prevent or impede any buyer or seller of grain or other person having a financial interest in grain, or the authorized agent of any such person, from observing the loading of the grain inspected under this chapter and the weighing, sampling, and inspection of such grain under conditions prescribed by the Administrator. (b) No person licensed or authorized to perform any function under this chapter shall - (1) commit any offense prohibited by subsection (a) of this section; (2) knowingly perform improperly any official sampling or other official inspection or weighing function under this chapter; (3) knowingly execute or issue any false or incorrect official certificate or other official form; or (4) accept money or other consideration, directly or indirectly, for any neglect or improper performance of duty. (c) An offense shall be deemed to have been committed knowingly under this chapter if it resulted from gross negligence or was committed with knowledge of the pertinent facts. (d)(1) Subject to paragraphs (2) and (3), to ensure the quality of grain marketed in or exported from the United States - (A) no dockage or foreign material, as defined by the Secretary, once removed from grain shall be recombined with any grain; and (B) no dockage or foreign material of any origin may be added to any grain. (2) Nothing in paragraph (1) shall be construed to prohibit - (A) the treatment of grain to suppress, destroy, or prevent insects and fungi injurious to stored grain; (B) the marketing, domestically or for export, of dockage or foreign material removed from grain if such dockage or foreign material is marketed - (i) separately and uncombined with any such whole grain; (ii) in pelletized form; or (iii) as a part of a processed ration for livestock, poultry, or fish; (C) the blending of grain with similar grain of a different quality to adjust the quality of the resulting mixture; (D) the recombination of broken corn or broken kernels, as defined by the Administrator, with grain of the type from which the broken corn or broken kernels were derived; (E) effective for the period ending December 31, 1987, the recombination of dockage or foreign material, except dust, removed at an export loading facility from grain destined for shipment as a cargo under one export official certificate of inspection if - (i) the recombination occurs during the loading of the cargo; (ii) the purpose is to ensure uniformity of dockage or foreign material throughout that specific cargo; and (iii) the separation and recombination are conducted in accordance with regulations issued by the Administrator; or (F) the addition to grain of a dust suppressant, or the addition of confetti or any other similar material that serves the same purpose in a quantity necessary to facilitate identification of ownership or origin of a particular lot of grain. (3)(A) The Secretary may, by regulation, exempt from paragraph (1) the last handling of grain in the final sale and shipment of such grain to a domestic user or processor if such exemption is determined by the Secretary to be in the best economic interest of producers, grain merchants, the industry involved, and the public. (B) Grain sold under an exemption authorized by this paragraph shall be consumed or processed into one or more products by the purchaser, but may not be resold into commercial channels for such grain or blended with other grain for resale. Neither products nor byproducts derived therefrom (except vegetable oils as defined by the Secretary and used as a dust suppressant) shall be blended with or added to grain in commercial channels. (e)(1) The Administrator may prohibit the contamination of sound and pure grain as a result of the introduction of - (A) nongrain substances; (B) grain unfit for ordinary commercial purposes; or (C) grain that exceeds action limits established by the Food and Drug Administration or grain having residues that exceed the tolerance levels established by the Environmental Protection Agency. (2) No prohibition imposed under this section shall be construed to restrict the marketing of any grain so long as the grade or condition of the grain is properly identified. (3) Prior to taking action under this subsection, the Administrator shall promulgate regulations after providing for notice and an opportunity for public comment, that identify and define actions and conditions that are subject to prohibition. (4) In no case shall the Administrator prohibit the blending of an entire grade of grain. (5) In implementing paragraph (1)(C), the Administrator shall report any prohibitions to other appropriate public health agencies. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 13, as added Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 766, and amended Oct. 21, 1976, Pub. L. 94-582, Sec. 15, 90 Stat. 2883; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1604(j), 1606(h), 91 Stat. 1029, 1030; Nov. 10, 1986, Pub. L. 99-641, title III, Sec. 303(a), 100 Stat. 3564; Nov. 28, 1990, Pub. L. 101-624, title XX, Sec. 2008, 104 Stat. 3931.) -MISC1- AMENDMENTS 1990 - Subsec. (e). Pub. L. 101-624 added subsec. (e). 1986 - Subsec. (d). Pub. L. 99-641 added subsec. (d). 1977 - Subsec. (a)(6). Pub. L. 95-113, Sec. 1604(j)(1), 1606(h), substituted 'or condition' for 'condition, or quantity' and inserted ', or that any weighing service under this chapter has been performed with respect to grain' after 'official inspection under this chapter'. Subsec. (a)(11). Pub. L. 95-113, Sec. 1604(j)(2), inserted references to sections 79(f)(3) and (4) and 87f-1 of this title. Subsec. (a)(12). Pub. L. 95-113, Sec. 1604(j)(3), substituted 'weighing equipment' for 'testing equipment'. Subsec. (a)(13). Pub. L. 95-113, Sec. 1604(j)(4), substituted 'financial interest in grain' for 'financial interest in the grain' and 'loading of the grain' for 'loading of grain'. 1976 - Subsec. (a)(1). Pub. L. 94-582, Sec. 15(a)(1), substituted 'official mark' for 'official inspection mark'. Subsec. (a)(2). Pub. L. 94-582, Sec. 15(a)(2), substituted 'official mark' for 'official inspection mark' in three places, 'official certificate' for 'official inspection certificate' and 'Administrator' for 'Secretary'. Subsec. (a)(3). Pub. L. 94-582, Sec. 15(a)(2), prohibited deceptive weighing of grain or submitting grain for official weighing or supervision of weighing knowing it has been deceptively weighed without disclosure before official weighing or supervision of weighing. Subsec. (a)(5). Pub. L. 94-582, Sec. 15(a)(3), substituted 'official mark' for 'official inspection mark' and inserted 'or officially weighed, respectively,' after 'such container'. Subsecs. (a)(7), (8). Pub. L. 94-582, Sec. 15(a)(4), inserted 'or personnel of agencies delegated authority or of agencies or other persons designated under this chapter' after 'personnel'. Subsec. (a)(9). Pub. L. 94-582, Sec. 15(a)(5), inserted 'or official weighing or supervision of weighing' after 'official inspection'. Subsec. (a)(10). Pub. L. 94-582, Sec. 15(a)(5), (6), inserted 'or official weighing or supervision of weighing' after 'official inspection' and struck out 'or' at end. Subsec. (a)(11). Pub. L. 94-582, Sec. 15(a)(5), inserted after 'sections 77, 78,' references to '79(f)(2), 79a, 79b(c)'. Subsecs. (a)(12), (13). Pub. L. 94-582, Sec. 15(a)(6), added pars. (12) and (13). Subsec. (b)(2). Pub. L. 94-582, Sec. 15(b), substituted 'inspection or weighing function' for 'inspection function'. EFFECTIVE DATE OF 1986 AMENDMENT Section 303(b) of Pub. L. 99-641 provided that: 'The amendments made by this section (amending this section) shall become effective on May 1, 1987.' EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE For effective date of section, see section 2 of Pub. L. 90-487, set out as an Effective Date of 1968 Amendment note under section 78 of this title. BENEFITS AND COSTS ASSOCIATED WITH IMPROVED GRAIN QUALITY Administrator of Federal Grain Inspection Service to estimate economic impact, including benefits and costs and distribution of such benefits and costs, of any major changes necessary to carry out amendments to this section by title XX of Pub. L. 101-624 prior to making such changes, see section 2003 of Pub. L. 101-624, set out as a note under section 76 of this title. -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section, see section 87c of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 85, 86, 87c of this title. ------DocID 9156 Document 124 of 2641------ -CITE- 7 USC Sec. 87c -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87c. Criminal penalties -STATUTE- (a) Any person who commits any offense prohibited by section 87b of this title (except an offense prohibited by paragraphs (a)(7), (a)(8), and (b)(4) in which case he shall be subject to the general penal statutes in title 18 relating to crimes and offenses against the United States) shall be guilty of a misdemeanor and shall, on conviction thereof, be subject to imprisonment for not more than twelve months, or a fine of not more than $10,000, or both such imprisonment and fine; but, for each subsequent offense subject to this subsection, such person shall be guilty of a felony and shall, on conviction thereof, be subject to imprisonment for not more than five years, or a fine of not more than $20,000, or both such imprisonment and fine. (b) Nothing in this chapter shall be construed as requiring the Administrator to report minor violations of this chapter for criminal prosecution whenever he believes that the public interest will be adequately served by a suitable written notice or warning, or to report any violation of this chapter for prosecution when he believes that institution of a proceeding under section 86 of this title will obtain compliance with this chapter and he institutes such a proceeding. (c) Any officer or employee of the Department of Agriculture assigned to perform weighing functions under this chapter shall be considered as an employee of the Department of Agriculture assigned to perform inspection functions for the purposes of sections 1114 and 111 of Title 18. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 14, as added Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 767, and amended Oct. 21, 1976, Pub. L. 94-582, Sec. 17, 90 Stat. 2884.) -MISC1- AMENDMENTS 1976 - Subsec. (a). Pub. L. 94-582 inserted '(except an offense prohibited by paragraphs (a)(7), (a)(8), and (b)(4) in which case he shall be subject to the general penal statutes in Title 18 relating to crimes and offenses against the United States)', increased the punishment for misdemeanors from six months to twelve months and the fine from $3,000 to $10,000, and denominated subsequent offenses as felonies, substituting 'but, for each subsequent offense subject to this subsection, such person shall be guilty of a felony and shall, on conviction thereof, be subject to imprisonment for not more than five years, or a fine of not more than $20,000, or both such imprisonment and fine' for 'but if such offense is committed after one conviction of such person under this section has become final, such person shall be subject to imprisonment for not more than one year, or a fine of not more than $5,000, or both such imprisonment and fine'. Subsec. (b). Pub. L. 94-582 substituted 'Administrator' for 'Secretary' and inserted provision that nothing in this chapter shall be construed as requiring the Administrator to report any violation of this chapter for prosecution when he believes that institution of a proceeding under section 86 of this title will obtain compliance with this chapter and he institutes such a proceeding. Subsec. (c). Pub. L. 94-582 added subsec. (c). EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE For effective date of section, see section 2 of Pub. L. 90-487, set out as an Effective Date of 1968 Amendment note under section 78 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 79, 79a, 86, 87f of this title. ------DocID 9157 Document 125 of 2641------ -CITE- 7 USC Sec. 87d -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87d. Responsibility for acts of others -STATUTE- When construing and enforcing the provisions of this chapter, the act, omission, or failure of any official, agent, or other person acting for or employed by any association, partnership, or corporation within the scope of his employment or office shall, in every case, also be deemed the act, omission, or failure of such association, partnership, or corporation as well as that of the person. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 15, as added Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 768.) -MISC1- EFFECTIVE DATE For effective date of section, see section 2 of Pub. L. 90-487, set out as an Effective Date of 1968 Amendment note under section 78 of this title. ------DocID 9158 Document 126 of 2641------ -CITE- 7 USC Sec. 87e -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87e. General authorities -STATUTE- (a) Authority of Administrator The Administrator is authorized to conduct such investigations; hold such hearings; require such reports from any official agency, any State agency delegated authority under this chapter, licensee, or other person; and prescribe such rules, regulations, and instructions, as the Administrator deems necessary to effectuate the purposes or provisions of this chapter. Such regulations may require, as a condition for official inspection or official weighing or supervision of weighing, among other things, (1) that there be installed specified sampling, handling, weighing, and monitoring equipment in grain elevators, warehouses, and other grain storage or handling facilities, (2) that approval of the Administrator be obtained as to the condition of vessels and other carriers or receptacles for the transporting or storing of grain, and (3) that persons having a financial interest in the grain which is to be inspected (or their agents) shall be afforded an opportunity to observe the weighing, loading, and official inspection thereof, under conditions prescribed by the Administrator. Whether any certificate, other form, representation, designation, or other description is false, incorrect, or misleading within the meaning of this chapter shall be determined by tests made in accordance with such procedures as the Administrator may adopt to effectuate the objectives of this chapter, if the relevant facts are determinable by such tests. Proceedings under section 85 of this title for refusal to renew, or for suspension or revocation of, a license shall not, unless requested by the respondent, be subject to the administrative procedure provisions in sections 554, 556, and 557 of title 5. (b) Investigation of reports or complaints of discrepancies and abuses in official inspection or weighing of grain The Administrator is authorized to investigate reports or complaints of discrepancies and abuses in the official inspection and weighing of grain under this chapter. The Administrator shall prescribe by regulation procedures for (1) promptly investigating (A) complaints of foreign grain purchasers regarding the official inspection or official weighing of grain shipped from the United States, (B) the cancellation of contracts for the export sale of grain required to be inspected or weighed under this chapter, and (C) any complaint regarding the operation or administration of this chapter or any official transaction with which this chapter is concerned; and (2) taking appropriate action on the basis of the findings of any investigation of such complaints. The Administrator shall report to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate at the end of every three-month period with respect to investigative action taken on complaints, during the immediately preceding three-month period. (c) Monitoring of United States grain upon its entry into foreign nations The Administrator is authorized to cause official inspection personnel to monitor in foreign nations which are substantial importers of grain from the United States, grain imported from the United States upon its entry into the foreign nation, to determine whether such grain is of a comparable kind, class, quality, and condition after considering the handling methods and conveyance utilized at the time of loading, and the same quantity that it was certified to be upon official inspection and official weighing in the United States. (d) Authority of Office of Investigation of Department of Agriculture The Office of Investigation of the Department of Agriculture (or such other organization or agency within the Department of Agriculture which may be delegated the authority, in lieu thereof, to conduct investigations on behalf of the Department of Agriculture) shall conduct such investigations regarding the operation or administration of this chapter or any official transaction with which this chapter is concerned, as the Director thereof deems necessary to assure the integrity of official inspection and weighing under this chapter. (e) Research program to develop methods of improving accuracy and uniformity in grading grain The Administrator is authorized to conduct, in cooperation with other agencies within the Department of Agriculture, a continuing research program for the purpose of developing methods to improve accuracy and uniformity in grading grain. (f) Adequate personnel to meet inspection and weighing requirements To assure the normal movement of grain at all inspection points in a timely manner consistent with the policy expressed in section 74 of this title, the Administrator shall, notwithstanding any other provision of law, provide adequate personnel to meet the inspection and weighing requirements of this chapter. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 16, as added Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 768, and amended Oct. 21, 1976, Pub. L. 94-582, Sec. 18, 90 Stat. 2884; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1604(k), 1606(i), 91 Stat. 1029, 1030.) -MISC1- AMENDMENTS 1977 - Subsec. (a). Pub. L. 95-113, Sec. 1604(k)(1), rearranged existing provisions and inserted references to the installation of handling and weighing equipment and to warehouses and other grain storage or handling facilities. Subsec. (b). Pub. L. 95-113, Sec. 1606(i), substituted 'Committee on Agriculture, Nutrition, and Forestry' for 'Committee on Agriculture and Forestry'. Subsec. (f). Pub. L. 95-113, Sec. 1604(k)(2), struck out 'additional' before 'inspection and weighing requirements'. 1976 - Subsec. (a). Pub. L. 94-582 substituted authorizations of 'Administrator' for authorizations of 'Secretary', 'official agency' for 'official inspection agency', and 'other person' for 'any person' respecting reporting requirement, required reports from State agencies delegated authority under this chapter and from licensees, inserted items (1) to (3) relating to conditions for official inspection, authorized issuance of instructions, and struck out reference to section 86 of this title, including proceedings for refusal of official inspection service not required by section 77 of this title, as not being subject to administrative procedure provisions. Subsecs. (b) to (f). Pub. L. 94-582 added subsecs. (b) to (f). EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE For effective date of section, see section 2 of Pub. L. 90-487, set out as an Effective Date of 1968 Amendment note under section 78 of this title. TEMPORARY EXERCISE BY SECRETARY OF AGRICULTURE OF POWERS, DUTIES, AND AUTHORIZATIONS OF ADMINISTRATOR PENDING APPOINTMENT OF ADMINISTRATOR Powers, duties, and authorizations of the Administrator of the Federal Grain Inspection Service to be exercised by the Secretary of Agriculture pending the appointment of the Administrator, see section 25 of Pub. L. 94-582, set out as a note under section 75a of this title. ------DocID 9159 Document 127 of 2641------ -CITE- 7 USC Sec. 87e-1 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87e-1. Purchase or lease of inspection equipment -STATUTE- Notwithstanding the provisions of section 5 of title 41 and section 490 of title 40, the Administrator of the Federal Grain Inspection Service is authorized to negotiate for and purchase or lease, from any person licensed or designated (on October 21, 1976) to perform official inspection functions under this chapter, at fair market value, any facilities or equipment which the Administrator determines to be necessary for the conduct of official inspection. -SOURCE- (Pub. L. 94-582, Sec. 23, Oct. 21, 1976, 90 Stat. 2888.) -COD- CODIFICATION Section was not enacted as part of the United States Grain Standards Act which comprises this chapter. -MISC3- EFFECTIVE DATE For effective date of section, see Effective Date of 1976 Amendment note set out under section 74 of this title. ------DocID 9160 Document 128 of 2641------ -CITE- 7 USC Sec. 87f -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87f. Enforcement provisions -STATUTE- (a) Subpena power For the purposes of this chapter, the Administrator shall at all reasonable times have access to, for the purpose of examination, and the right to copy any documentary evidence of any person with respect to whom such authority is exercised; and the Administrator shall have power to require by subpena the attendance and testimony of witnesses and the production of all such documentary evidence relating to any matter under investigation by the Administrator, and may administer oaths and affirmations, examine witnesses, and receive evidence. (b) Disobedience of subpena Such attendance of witnesses, and the production of such documentary evidence, may be required from any place in the United States, at any designated place of hearing. In case of disobedience to a subpena the Administrator may invoke the aid of any court designated in subsection (h) of this section in requiring the attendance and testimony of witnesses and the production of documentary evidence. (c) Court order requiring attendance and testimony of witnesses Any such court within the jurisdiction of which such inquiry is carried on may, in case of contumacy or refusal to obey a subpena issued to any person, issue an order requiring such person to appear before the Administrator or to produce documentary evidence if so ordered, or to give evidence touching the matter in question; and any failure to obey such order of the court may be punished by such court as a contempt thereof. (d) Fees and mileage costs of witnesses Witnesses summoned before the Administrator shall be paid the same fees and mileage that are paid witnesses in the courts of the United States, and witnesses from whom depositions are taken and the persons taking the same shall severally be entitled to the same fees as are paid for like services in the courts of the United States. (e) Violation of subpena as misdemeanor Any person who shall neglect or refuse to attend and testify, or to answer any lawful inquiry, or to produce documentary evidence, if in his power to do so, in obedience to the subpena or lawful requirement of the Administrator, shall be guilty of a misdemeanor, and upon conviction thereof be subject to the penalties set forth in subsection (a) of section 87c of this title. (f) Repealed. Pub. L. 91-452, title II, Sec. 203, Oct. 15, 1970, 84 Stat. 928 (g) Repealed. Pub. L. 94-582, Sec. 19(d), Oct. 21, 1976, 90 Stat. 2886 (h) District Court jurisdiction The United States district courts, the District Court of Guam, the District Court of the Virgin Islands, the highest court of American Samoa, and the United States courts of the other territories and possessions of the United States shall have jurisdiction in cases arising under this chapter. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 17, as added Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 768, and amended Oct. 15, 1970, Pub. L. 91-452, title II, Sec. 203, 84 Stat. 928; Oct. 21, 1976, Pub. L. 94-582, Sec. 19, 90 Stat. 2885.) -MISC1- AMENDMENTS 1976 - Subsec. (a). Pub. L. 94-582, Sec. 19(a), (b), substituted 'Administrator' for 'Secretary' in two places and inserted 'by the Administrator' after 'under investigation', respectively. Subsecs. (b) to (d). Pub. L. 94-582, Sec. 19(a), substituted 'Administrator' for 'Secretary' in subsecs. (b) to (d). Subsec. (e). Pub. L. 94-582, Sec. 19(a), (c), substituted 'Administrator' for 'Secretary' and inserted 'subsection (a) of' before 'section 87c of this title'. Subsec. (g). Pub. L. 94-582, Sec. 19(d), struck out subsec. (g) which made unlawful disclosure of information by an officer or employee of the Department of Agriculture a misdemeanor, subject to the penalties set forth in section 87c of this title. 1970 - Subsec. (f). Pub. L. 91-452 struck out subsec. (f) which related to the immunity from prosecution of any individual compelled to testify or produce evidence, documentary or otherwise, after having claimed his privilege against self-incrimination. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE OF 1970 AMENDMENT For effective date of amendment by Pub. L. 91-452, and amendment not to affect any immunity to which any individual is entitled under this section by reason of any testimony given before sixtieth day following Oct. 15, 1970, see section 260 of Pub. L. 91-452, set out as an Effective Date; Savings Provision note under section 6001 of Title 18, Crimes and Criminal Procedure. EFFECTIVE DATE For effective date of section, see section 2 of Pub. L. 90-487, set out as an Effective Date of 1968 Amendment note under section 78 of this title. -CROSS- CROSS REFERENCES Immunity of witnesses, see section 6001 et seq. of Title 18, Crimes and Criminal Procedure. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 86 of this title. ------DocID 9161 Document 129 of 2641------ -CITE- 7 USC Sec. 87f-1 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87f-1. Registration requirements -STATUTE- (a) General requirement The Administrator shall provide, by regulation, for the registration of all persons engaged in the business of buying grain for sale in foreign commerce, and in the business of handling, weighing, or transporting of grain for sale in foreign commerce. This section shall not apply to - (1) any person who only incidentally or occasionally buys for sale, or handles, weighs, or transports grain for sale and is not engaged in the regular business of buying grain for sale, or handling, weighing, or transporting grain for sale; (2) any producer of grain who only incidentally or occasionally sells or transports grain which he has purchased; (3) any person who transports grain for hire and does not own a financial interest in such grain; or (4) any person who buys grain for feeding or processing and not for the purpose of reselling and only incidentally or occasionally sells such grain as grain. (b) Required information (1) All persons required to register under this chapter shall submit the following information to the Administrator: (A) the name and principal address of the business, (B) the names of all directors of such business, (C) the names of the principal officers of such business, (D) the names of all persons in a control relationship with respect to such business, (E) a list of locations where the business conducts substantial operations, and (F) such other information as the Administrator deems necessary to carry out the purposes of this chapter. Persons required to register under this section shall also submit to the Administrator the information specified in clauses (A) through (F) of this paragraph with respect to any business engaged in the business of buying grain for sale in interstate commerce, and in the business of handling, weighing, or transporting of grain for sale in interstate commerce, if, with respect to such business, the person otherwise required to register under this section is in a control relationship. (2) For the purposes of this section, a person shall be deemed to be in a 'control relationship' with respect to a business required to register under subsection (a) of this section and with respect to applicable interstate businesses if - (A) such person has an ownership interest of 10 per centum or more in such business, or (B) a business or group of business entities, with respect to which such person is in a control relationship, has an ownership interest of 10 per centum or more in such business. (3) For purposes of clauses (A) and (B) of paragraph (2) of this subsection, a person shall be considered to own the ownership interest which is owned by his or her spouse, minor children, and relatives living in the same household. (c) Certificate of registration The Administrator shall issue a certificate of registration to persons who comply with the provisions of this section. The certificate of registration issued in accordance with this section shall be renewed annually. If there has been any change in the information required under subsection (b) of this section, the person holding such certificate shall, within thirty days of the discovery of such change, notify the Administrator of such change. No person shall engage in the business of buying grain for sale in foreign commerce, and in the business of handling, weighing, or transporting of grain in foreign commerce unless he has registered with the Administrator as required by this chapter and has an unsuspended and unrevoked certificate of registration. (d) Suspension or registration of certificate of registration The Administrator may suspend or revoke any certificate of registration issued under this section whenever, after the person holding such certificate has been afforded an opportunity for a hearing in accordance with sections 554, 556, and 557 of title 5, the Administrator shall determine that such person has violated any provision of this chapter or of the regulations promulgated thereunder, or has been convicted of any violation involving the handling, weighing, or inspection of grain under title 18. (e) Fees The Administrator shall charge and collect fees from any person registered under this section. The amount of such fees shall be determined on the basis of the costs of the Administrator in administering the registration required by this section. Such fees shall be deposited in, and used as part of, the fund described in section 79(j) of this title. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 17A, as added Oct. 21, 1976, Pub. L. 94-582, Sec. 22, 90 Stat. 2886, and amended Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1604(l), 91 Stat. 1029.) -MISC1- AMENDMENTS 1977 - Subsec. (b)(1). Pub. L. 95-113 substituted 'All persons required to register' for 'All persons registered' in provisions preceding subpar. (A). EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE For effective date of section, see Effective Date of 1976 Amendment note set out under section 74 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 87b, 87h of this title. ------DocID 9162 Document 130 of 2641------ -CITE- 7 USC Sec. 87f-2 -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87f-2. Reporting requirements -STATUTE- (a) General requirements; annual report to Congressional committees The Administrator shall submit a report to the committee (FOOTNOTE 1) on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate one year after the effective date of the United States Grain Standards Act of 1976 setting forth the actions taken by him in implementing the provisions of that Act; and, on December 1 of each year thereafter, the Administrator shall report to such committees regarding the effectiveness of the official inspection and weighing system under this chapter for the prior fiscal year, with recommendations for any legislative changes necessary to accomplish the objectives stated in section 74 of this title. (FOOTNOTE 1) So in original. Probably should be 'Committee'. (b) Notification of Congressional committees of complaints regarding faulty grain deliveries and cancellation of export contracts The Administrator shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate (1) of any complaint regarding faulty grain delivery made to the Department of Agriculture by a foreign purchaser of United States grain, within thirty days after a determination by the Administrator that there is reasonable cause to believe that the grain delivery was in fact faulty, and (2) notwithstanding the provisions of section 612c-3 of this title, within thirty days after receipt by the Administrator or the Secretary of notice of the cancellation of any contract for the export of more than one hundred thousand metric tons of grain. (c) Submission to Congressional committees of annual summary of complaints from foreign purchasers and prospective purchasers of grain On December 1 of each year, the Administrator shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a summary of all other complaints received by the Department of Agriculture during the prior fiscal year from foreign purchasers and prospective purchasers of United States grain and other foreign purchasers interested in the trade of grain, and the resolution thereof: Provided, That the summary shall not include a complaint unless reasonable cause exists to believe that the complaint is valid, as determined by the Administrator. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 17B, as added Oct. 21, 1976, Pub. L. 94-582, Sec. 22, 90 Stat. 2888, and amended Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1604(m), 1606(i), (j), 91 Stat. 1029, 1030.) -REFTEXT- REFERENCES IN TEXT The United States Grain Standards Act of 1976, referred to in subsec. (a), is Pub. L. 94-582, Oct. 21, 1976, 90 Stat. 2867, as amended. For complete classification of this Act to the Code, see Short Title of 1976 Amendment note set out under section 71 of this title and Tables. For effective date of this Act, see Effective Date of 1976 Amendment note set out under section 74 of this title. -MISC2- AMENDMENTS 1977 - Subsec. (a). Pub. L. 95-113, Sec. 1606(i), (j), substituted 'Committee on Agriculture, Nutrition, and Forestry' for 'Committee on Agriculture and Forestry' and 'inspection and weighing' for 'inspection'. Subsec. (b). Pub. L. 95-113, Sec. 1604(m), 1606(i), substituted 'Committee on Agriculture, Nutrition, and Forestry' for 'Committee on Agriculture and Forestry' in provisions preceding cl. (1) and, in cl. (2) substituted 'notwithstanding the provisions of section 612c-3 of this title, within thirty days after receipt by the Administrator or the Secretary of notice of the cancellation' for 'within thirty days after receipt by the Administrator or the Secretary of the cancellation'. Subsec. (c). Pub. L. 95-113, Sec. 1606(i), substituted 'Committee on Agriculture, Nutrition, and Forestry' for 'Committee on Agriculture and Forestry'. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE For effective date of section, see Effective Date of 1976 Amendment note set out under section 74 of this title. ------DocID 9163 Document 131 of 2641------ -CITE- 7 USC Sec. 87g -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87g. Relation to State and local laws; separability -STATUTE- (a) No State or subdivision thereof may require the inspection or description in accordance with any standards of kind, class, quality, condition, or other characteristics of grain as a condition of shipment, or sale, of such grain in interstate or foreign commerce, or require any license for, or impose any other restrictions upon the performance of any official inspection or weighing function under this chapter by official inspection personnel. Otherwise nothing in this chapter shall invalidate any law or other provision of any State or subdivision thereof in the absence of a conflict with this chapter. (b) If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the chapter and of the application of such provision to other persons and circumstances shall not be affected thereby. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 18, as added Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 769, and amended Oct. 21, 1976, Pub. L. 94-582, Sec. 20, 90 Stat. 2886.) -MISC1- AMENDMENTS 1976 - Subsec. (a). Pub. L. 94-582 substituted in first sentence 'official inspection or weighing function' for 'official inspection function'. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE For effective date of section, see section 2 of Pub. L. 90-487, set out as an Effective Date of 1968 Amendment note under section 78 of this title. ------DocID 9164 Document 132 of 2641------ -CITE- 7 USC Sec. 87h -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87h. Appropriations -STATUTE- There are hereby authorized to be appropriated such sums as are necessary for standardization and compliance activities, monitoring in foreign ports grain officially inspected and weighed under this chapter, and any other expenses necessary to carry out the provisions of this chapter for each of the fiscal years during the period beginning October 1, 1988, and ending September 30, 1993, to the extent that financing is not obtained from fees and sales of samples as provided for in sections 79, 79a, and 87f-1 of this title. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 19, as added Aug. 15, 1968, Pub. L. 90-487, Sec. 1, 82 Stat. 769, and amended Oct. 21, 1976, Pub. L. 94-582, Sec. 21, 90 Stat. 2886; Sept. 29, 1977, Pub. L. 95-113, title XVI, Sec. 1602(c), 1604(n), 91 Stat. 1025, 1029; Aug. 13, 1981, Pub. L. 97-35, title I, Sec. 155(4), 95 Stat. 372; Oct. 11, 1984, Pub. L. 98-469, Sec. 2(3), 98 Stat. 1832; Oct. 24, 1988, Pub. L. 100-518, Sec. 2(4), 102 Stat. 2586.) -STATAMEND- AMENDMENT OF SECTION For termination of amendment by section 2 of Pub. L. 100-518, see Effective and Termination Dates of 1988 Amendment note below. -MISC1- AMENDMENTS 1988 - Pub. L. 100-518 temporarily amended section generally, substituting '1988' for '1981' and '1993' for '1984'. See Effective and Termination Dates of 1988 Amendment note below. 1984 - Pub. L. 98-469 temporarily substituted 'September 30, 1988' for 'September 30, 1984'. See Effective and Termination Dates of 1984 Amendment note below. 1981 - Pub. L. 97-35 temporarily amended section, substantially revising enumerated activities for which appropriations are authorized and limiting such authorization for each of the fiscal years during the period beginning Oct. 1, 1981, and ending Sept. 30, 1984. See Effective and Termination Dates of 1981 Amendment note below. 1977 - Pub. L. 95-113 substituted 'Federal administrative and supervisory costs related to the official inspection or the provision of weighing services for grain' for 'those Federal administrative and supervisory costs incurred within the Service's Washington office or not directly related to the official inspection or the provision of weighing services for grain' and renumbered this section as section 19 of the United States Grain Standards Act, thereby correcting an error in the 1976 amendment of this section by Pub. L. 94-582 under which this section had inadvertently been renumbered from section 19 of the United States Grain Standards Act to section 21 thereof. 1976 - Pub. L. 94-582 enumerated specific items for which appropriations are authorized and provided for financing obtained from fees and sales of samples as provided in sections 79a and 87f-1 of this title. EFFECTIVE AND TERMINATION DATES OF 1988 AMENDMENT Section 2 of Pub. L. 100-518 provided that amendment made by Pub. L. 100-518 is effective for the period Oct. 1, 1988, through Sept. 30, 1993, inclusive. EFFECTIVE AND TERMINATION DATES OF 1984 AMENDMENT Section 2 of Pub. L. 98-469 provided that the amendment made by Pub. L. 98-469 is effective for period beginning Oct. 11, 1984, and ending Sept. 30, 1988. EFFECTIVE AND TERMINATION DATES OF 1981 AMENDMENT Section 155 of Pub. L. 97-35, as amended by Pub. L. 98-469, Sec. 1, Oct. 11, 1984, 98 Stat. 1831, provided that the amendment made by Pub. L. 97-35 is effective for period beginning Oct. 1, 1981, and ending Sept. 30, 1988. EFFECTIVE DATE OF 1977 AMENDMENT Amendment by Pub. L. 95-113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95-113, set out as a note under section 1307 of this title. EFFECTIVE DATE OF 1976 AMENDMENT For effective date of amendment by Pub. L. 94-582, see section 27 of Pub. L. 94-582, set out as a note under section 74 of this title. EFFECTIVE DATE For effective date of section, see section 2 of Pub. L. 90-487, set out as an Effective Date of 1968 Amendment note under section 78 of this title. ------DocID 9165 Document 133 of 2641------ -CITE- 7 USC Sec. 87i -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87i. Omitted -COD- CODIFICATION Section, act Aug. 11, 1916, ch. 313, part B, Sec. 20, as added Aug. 13, 1981, Pub. L. 97-35, title I, Sec. 155(5), 95 Stat. 372, which established an advisory committee, was effective for the period Oct. 1, 1981, through Sept. 30, 1988, pursuant to section 155 of Pub. L. 97-35, as amended. See section 87j of this title. ------DocID 9166 Document 134 of 2641------ -CITE- 7 USC Sec. 87j -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87j. Advisory committee -STATUTE- (a) Establishment; number and terms of members; transition (1) Not later than ninety days after October 24, 1988, the Secretary shall establish an advisory committee to provide advice to the Administrator with respect to implementation of this chapter consistent with the declarations of policy in section 74 of this title. The advisory committee shall consist of fifteen members, appointed by the Secretary, who represent the interests of all segments of the grain producing, processing, storing, merchandising, consuming, and exporting industries, including grain inspection and weighing agencies and scientists with expertise in research related to the policies established in section 74 of this title. Members of the advisory committee shall be appointed to three-year terms, except that of the initial fifteen members of the advisory committee first appointed following the enactment of this section, five shall be appointed for terms of one year and five shall be appointed for terms of two years. No member of the advisory committee may serve successive terms. (2) To ensure a smooth transition, the advisory committee established under section 87i of this title (as in effect prior to October 1, 1988) shall continue in existence until all members of the advisory committee established under this section are appointed; and the Secretary may appoint members of the advisory committee established under section 87i of this title to serve on the advisory committee established under this section, without regard to the time of service of such members on the advisory committee established under section 87i of this title. (b) Federal Advisory Committee Act as governing The advisory committee shall be governed by the provisions of the Federal Advisory Committee Act (5 U.S.C. App.). (c) Clerical assistance and staff personnel The Administrator shall provide the advisory committee with necessary clerical assistance and staff personnel. (d) Compensation and travel expenses Members of the advisory committee shall serve without compensation, if not otherwise officers or employees of the United States, except that members shall, while away from their homes or regular places of business in the performance of services under this chapter, be allowed travel expenses, including per diem in lieu of subsistence, as authorized under section 5703 of title 5. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 21, as added Oct. 24, 1988, Pub. L. 100-518, Sec. 2(5), 102 Stat. 2586.) -STATAMEND- TERMINATION OF SECTION For termination of section by section 2 of Pub. L. 100-518, see Effective and Termination Dates note below. -REFTEXT- REFERENCES IN TEXT The enactment of this section, referred to in subsec. (a)(1), means Oct. 24, 1988, the date of enactment of Pub. L. 100-518. Section 87i of this title, referred to in subsec. (a)(2), was omitted from the Code. The Federal Advisory Committee Act, referred to in subsec. (b), is Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 770, as amended, which is set out in the Appendix to Title 5, Government Organization and Employees. -MISC2- EFFECTIVE AND TERMINATION DATES Section 2 of Pub. L. 100-518 provided that section is effective for period Oct. 1, 1988, through Sept. 30, 1993, inclusive. ------DocID 9167 Document 135 of 2641------ -CITE- 7 USC Sec. 87k -EXPCITE- TITLE 7 CHAPTER 3 -HEAD- Sec. 87k. Standardizing commercial inspections -STATUTE- (a) Testing equipment To promote greater uniformity in commercial grain inspection results, the Administrator may work in conjunction with the National Institute for Standards and Technology and the National Conference on Weights and Measures to - (1) identify inspection instruments requiring standardization under subsection (b) of this section; (2) establish performance criteria for commercial grain inspection instruments; (3) develop a national program to approve grain inspection instruments for commercial inspection; and (4) develop standard reference materials or other means necessary for calibration or testing of approved instruments. (b) General inspection procedures To ensure that producers are treated uniformly in delivering grain, the Administrator shall develop practical and cost-effective procedures for conducting commercial inspections of grain with respect to the application of quality factors, that result in premiums and discounts. The procedures shall be made available to country elevators and others making first-point-of-delivery inspections. (c) Inspection services and information To encourage the use of equipment and procedures developed in accordance with subsection (FOOTNOTE 1) (a) and (b) of this section, the Administrator shall provide for official inspection services by the Service, States, and official inspection agencies and provide information on the proper use of sampling and inspection equipment, application of the grain standards, and availability of official inspection services, including appeals under this chapter. (FOOTNOTE 1) So in original. Probably should be 'subsections'. (d) Standardized aflatoxin equipment and procedures The Administrator shall - (1) establish uniform standards for testing equipment; and (2) establish uniform testing procedures and sampling techniques; that may be used by processors, refiners, operators of grain elevators and terminals, and others to accurately detect the level of aflatoxin contamination of corn in the United States. -SOURCE- (Aug. 11, 1916, ch. 313, part B, Sec. 22, as added Nov. 28, 1990, Pub. L. 101-624, title XX, Sec. 2009, 104 Stat. 3931.) -REFTEXT- REFERENCES IN TEXT This chapter, referred to in subsec. (c), was in the original 'this Act' and was translated as reading 'this part', meaning part B of act Aug. 11, 1916, known as the United States Grain Standards Act, to reflect the probable intent of Congress. ------DocID 9168 Document 136 of 2641------ -CITE- 7 USC CHAPTER 4 -EXPCITE- TITLE 7 CHAPTER 4 -HEAD- CHAPTER 4 - NAVAL STORES -MISC1- Sec. 91. Short title. 92. Definitions. 93. Establishment of official naval stores standards. 94. Supplying duplicates of standards; examination, etc., of naval stores and certification thereof. 95. Prohibition of acts deemed injurious to commerce in naval stores. 96. Punishment for violation of prohibition. 97. Purchase and analysis by Secretary of samples of spirits of turpentine to detect violations; reports to Department of Justice; publication of results of analysis, etc. 98. Fees and charges for naval stores inspection and related services; establishment; collection, etc.; authorization of appropriations; administrative expenses. 99. Separability. -TRANS- TRANSFER OF FUNCTIONS All functions of the Federal Security Administrator were transferred to the Secretary of Health, Education, and Welfare and all agencies of the Federal Security Agency were transferred to the Department of Health, Education, and Welfare by section 5 of 1953 Reorg. Plan No. 1, eff. Mar. 12, 1953, 18 F.R. 2053, 67 Stat. 631, set out in the Appendix to Title 5, Government Organization and Employees. The Federal Security Agency and the office of Administrator were abolished by section 8 of 1953 Reorg. Plan No. 1. The Secretary and Department of Health, Education, and Welfare was redesignated the Secretary and Department of Health and Human Services by section 3508 of Title 20, Education. The Food and Drug Administration in the Department of Agriculture and its functions, except those functions relating to the administration of the Naval Stores Act, this chapter, were transferred to the Federal Security Agency by 1940 Reorg. Plan No. IV, Sec. 12, set out in the Appendix to Title 5, Government Organization and Employees. -SECREF- CHAPTER REFERRED TO IN OTHER SECTIONS This chapter is referred to in section 608c of this title. ------DocID 9169 Document 137 of 2641------ -CITE- 7 USC Sec. 91 -EXPCITE- TITLE 7 CHAPTER 4 -HEAD- Sec. 91. Short title -STATUTE- For convenience of reference, this chapter may be designated and cited as 'The Naval Stores Act.' -SOURCE- (Mar. 3, 1923, ch. 217, Sec. 1, 42 Stat. 1435.) -MISC1- EFFECTIVE DATE Section 10 of act Mar. 3, 1923, provided: 'That this Act (enacting this chapter) shall become effective at the expiration of ninety days next after the date of its approval (Mar. 23, 1923).' -CROSS- CROSS REFERENCES Orders regulating handling of naval stores, see section 608c of this title. ------DocID 9170 Document 138 of 2641------ -CITE- 7 USC Sec. 92 -EXPCITE- TITLE 7 CHAPTER 4 -HEAD- Sec. 92. Definitions -STATUTE- When used in this chapter - (a) 'Naval stores' means spirits of turpentine and rosin. (b) 'Spirits of turpentine' includes gum spirits of turpentine and wood turpentine. (c) 'Gum spirits of turpentine' means spirits of turpentine made from gum (oleoresin) from a living tree. (d) 'Wood turpentine' includes steam distilled wood turpentine and destructively distilled wood turpentine. (e) 'Steam distilled wood turpentine' means wood turpentine distilled with steam from the oleoresin within or extracted from the wood. (f) 'Destructively distilled wood turpentine' means wood turpentine obtained in the destructive distillation of the wood. (g) 'Rosin' includes gum rosin and wood rosin. (h) 'Gum rosin' means rosin remaining after the distillation of gum spirits of turpentine. (i) 'Wood rosin' means rosin remaining after the distillation of steam distilled wood turpentine. (j) 'Package' means any container of naval stores, and includes barrel, tank, tank car, or other receptacle. (k) 'Person' includes partnerships, associations, and corporations, as well as individuals. (l) The term 'commerce' means commerce between any State, Territory, or possession, or the District of Columbia, and any place outside thereof; or between points within the same State, Territory, or possession, or the District of Columbia, but through any place outside thereof; or within any Territory or possession or the District of Columbia. -SOURCE- (Mar. 3, 1923, ch. 217, Sec. 2, 42 Stat. 1435.) -CROSS- CROSS REFERENCES Standards for naval stores until otherwise prescribed as provided in this chapter, kinds of spirits of turpentine defined in subdivisions (c), (e), and (f) of this section as, see section 93 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 93 of this title; title 12 section 1141j. ------DocID 9171 Document 139 of 2641------ -CITE- 7 USC Sec. 93 -EXPCITE- TITLE 7 CHAPTER 4 -HEAD- Sec. 93. Establishment of official naval stores standards -STATUTE- For the purposes of this chapter the kinds of spirits of turpentine defined in subdivisions (c), (e), and (f) of section 92 of this title and the rosin types heretofore prepared and recommended under existing laws, by or under authority of the Secretary of Agriculture, are made the standards for naval stores until otherwise prescribed as hereinafter provided. The Secretary of Agriculture is authorized to establish and promulgate standards for naval stores for which no standards are herein provided, after at least three months' notice of the proposed standard shall have been given to the trade, so far as practicable, and due hearings or reasonable opportunities to be heard shall have been afforded those favoring or opposing the same. No such standard shall become effective until after three months from the date of the promulgation thereof. Any standard made by this chapter or established and promulgated by the Secretary of Agriculture in accordance therewith may be modified by said Secretary whenever, for reasons and causes deemed by him sufficient, the interests of the trade shall so require, after at least six months' notice of the proposed modifications shall have been given to the trade, so far as practicable, and due hearings or reasonable opportunities to be heard shall have been afforded those favoring or opposing the same; and no such modification so made shall become effective until after six months from the date when made. The various grades of rosin, from highest to lowest, shall be designated, unless and until changed, as hereinbefore provided, by the following letters, respectively: X, WW, WG, N, M, K, I, H, G, F, E, D, and B, together with the designation 'gum rosin' or 'wood rosin', as the case may be. The standards herein made and authorized to be made shall be known as the 'Official Naval Stores Standards of the United States,' and may be referred to by the abbreviated expression 'United States Standards', and shall be the standards by which all naval stores in commerce shall be graded and described. -SOURCE- (Mar. 3, 1923, ch. 217, Sec. 3, 42 Stat. 1435.) -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 98 of this title. ------DocID 9172 Document 140 of 2641------ -CITE- 7 USC Sec. 94 -EXPCITE- TITLE 7 CHAPTER 4 -HEAD- Sec. 94. Supplying duplicates of standards; examination, etc., of naval stores and certification thereof -STATUTE- The Secretary of Agriculture shall provide, if practicable, any interested persons with duplicates of the official naval stores standards of the United States upon request accompanied by tender of satisfactory security for the return thereof, under such regulations as he may prescribe. The Secretary of Agriculture shall examine, if practicable, upon request of any interested person, any naval stores and shall analyze, classify, or grade the same under such regulations as he may prescribe. He shall furnish a certificate showing the analysis, classification, or grade of such naval stores, which certificate shall be prima facie evidence of the analysis, classification, or grade of such naval stores and of the contents of any package from which the same may have been taken, as well as of the correctness of such analysis, classification, or grade and shall be admissible as such in any court. -SOURCE- (Mar. 3, 1923, ch. 217, Sec. 4, 42 Stat. 1436; Aug. 13, 1981, Pub. L. 97-35, title I, Sec. 159(a)(1), 95 Stat. 376.) -MISC1- AMENDMENTS 1981 - Pub. L. 97-35 struck out 'on tender of the cost thereof as required by him,' after 'grade the same'. EFFECTIVE DATE OF 1981 AMENDMENT Section 159(b) of Pub. L. 97-35 provided that: 'The provisions of this section (amending this section and section 98 of this title) shall become effective October 1, 1981'. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 98 of this title. ------DocID 9173 Document 141 of 2641------ -CITE- 7 USC Sec. 95 -EXPCITE- TITLE 7 CHAPTER 4 -HEAD- Sec. 95. Prohibition of acts deemed injurious to commerce in naval stores -STATUTE- The following acts are hereby declared injurious to commerce in naval stores and are hereby prohibited and made unlawful: (a) The sale in commerce of any naval stores, or of anything offered as such, except under or by reference to United States standards. (b) The sale of any naval stores under or by reference to United States standards which is other than what it is represented to be. (c) The use in commerce of the word 'turpentine' or the word 'rosin,' singly or with any other word or words, or of any compound, derivative, or imitation of either such word, or of any misleading word, or of any word, combination of words, letter, or combination of letters, provided herein or by the Secretary of Agriculture to be used to designate naval stores of any kind or grade, in selling, offering for sale, advertising, or shipping anything other than naval stores of the United States standards. (d) The use in commerce of any false, misleading, or deceitful means or practice in the sale of naval stores or of anything offered as such. -SOURCE- (Mar. 3, 1923, ch. 217, Sec. 5, 42 Stat. 1436.) -CROSS- CROSS REFERENCES Punishment for violating the provisions of this section, see section 96 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 96 of this title. ------DocID 9174 Document 142 of 2641------ -CITE- 7 USC Sec. 96 -EXPCITE- TITLE 7 CHAPTER 4 -HEAD- Sec. 96. Punishment for violation of prohibition -STATUTE- Any person willfully violating any provision of section 95 of this title shall, on conviction, be punished for each offense by a fine not exceeding $5,000 or by imprisonment for not exceeding one year, or both. -SOURCE- (Mar. 3, 1923, ch. 217, Sec. 6, 42 Stat. 1436.) ------DocID 9175 Document 143 of 2641------ -CITE- 7 USC Sec. 97 -EXPCITE- TITLE 7 CHAPTER 4 -HEAD- Sec. 97. Purchase and analysis by Secretary of samples of spirits of turpentine to detect violations; reports to Department of Justice; publication of results of analysis, etc. -STATUTE- The Secretary of Agriculture is hereby authorized to purchase from time to time in open market samples of spirits of turpentine and of anything offered for sale as such for the purpose of analysis, classification, or grading and of detecting any violation of this chapter. He shall report to the Department of Justice for appropriate action any violation of this chapter coming to his knowledge. He is also authorized to publish from time to time results of any analysis, classification, or grading of spirits of turpentine and of anything offered for sale as such made by him under any provision of this chapter. -SOURCE- (Mar. 3, 1923, ch. 217, Sec. 7, 42 Stat. 1436.) ------DocID 9176 Document 144 of 2641------ -CITE- 7 USC Sec. 98 -EXPCITE- TITLE 7 CHAPTER 4 -HEAD- Sec. 98. Fees and charges for naval stores inspection and related services; establishment, collection, etc.; authorization of appropriations; administrative expenses -STATUTE- (a) The Secretary of Agriculture shall fix and cause to be collected fees and charges for the establishment of standards under section 93 of this title and for examinations, analyses, classifications, and other services under section 94 of this title which shall cover, as nearly as practicable, the costs of providing such services and standards as the Secretary shall deem necessary, including administrative and supervisory costs. Such fees and charges, when collected, shall be credited to the current appropriation account that incurs such costs and shall be available without fiscal year limitation to pay the expenses of the Secretary incident to providing such services and standards under this chapter. Fees and charges shall be assessed and collected from processors and warehousers of naval stores, and inspection and related services shall be suspended or denied to any such processor or warehouser upon failure to timely pay the fees and charges assessed. (b) There are hereby authorized to be appropriated such sums as may be necessary for the enforcement and administration of this chapter. -SOURCE- (Mar. 3, 1923, ch. 217, Sec. 8, 42 Stat. 1436; Aug. 13, 1981, Pub. L. 97-35, title I, Sec. 159(a)(2), 95 Stat. 376.) -MISC1- AMENDMENTS 1981 - Pub. L. 97-35 added subsec. (a). Former unlettered provisions were designated subsec. (b) and, as so designated, struck out authorization of the Secretary to employ personnel and make administrative expenditures. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 159(b) of Pub. L. 97-35, set out as a note under section 94 of this title. ------DocID 9177 Document 145 of 2641------ -CITE- 7 USC Sec. 99 -EXPCITE- TITLE 7 CHAPTER 4 -HEAD- Sec. 99. Separability -STATUTE- If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the chapter and of the application of such provisions to other persons and circumstances shall not be affected thereby. -SOURCE- (Mar. 3, 1923, ch. 217, Sec. 9, 42 Stat. 1437.) ------DocID 9178 Document 146 of 2641------ -CITE- 7 USC CHAPTER 5 -EXPCITE- TITLE 7 CHAPTER 5 -HEAD- CHAPTER 5 - IMPORTATION OF ADULTERATED SEEDS ------DocID 9179 Document 147 of 2641------ -CITE- 7 USC Sec. 111 to 116 -EXPCITE- TITLE 7 CHAPTER 5 -HEAD- Sec. 111 to 116. Repealed. Aug. 9, 1939, ch. 615, Sec. 419, 53 Stat. 1290 -MISC1- Sections, act Aug. 24, 1912, ch. 382, Sec. 1-6, 37 Stat. 506, related to regulation of foreign commerce by prohibiting admission into United States of adulterated grain and seeds. See section 1551 et seq. of this title. Section 111 amended by acts Aug. 11, 1916, ch. 313, 39 Stat. 453; Apr. 26, 1926, ch. 186, Sec. 1, 44 Stat. 325. Section 113 amended by act Aug. 11, 1916, ch. 313, 39 Stat. 453. Sections 115 and 116 amended by act Apr. 26, 1926, ch. 186, Sec. 2, 44 Stat. 325. EFFECTIVE DATE OF REPEAL; EXCEPTIONS Repeal effective on the one hundred and eightieth day after Aug. 9, 1939, except that notices with respect to imported alfalfa and red clover seed promulgated by the Secretary of Agriculture under authority of former sections 111 to 116 of this title, which were in effect Aug. 9, 1939, remained in full force and effect as if promulgated under sections 1551 to 1610 of this title. ------DocID 9180 Document 148 of 2641------ -CITE- 7 USC CHAPTER 6 -EXPCITE- TITLE 7 CHAPTER 6 -HEAD- CHAPTER 6 - INSECTICIDES AND ENVIRONMENTAL PESTICIDE CONTROL -MISC1- SUBCHAPTER I - INSECTICIDES Sec. 121 to 134. Repealed. SUBCHAPTER II - ENVIRONMENTAL PESTICIDE CONTROL 135 to 135k. Omitted. 136. Definitions. (a) Active ingredient. (b) Administrator. (c) Adulterated. (d) Animal. (e) Certified applicator, etc. (f) Defoliant. (g) Desiccant. (h) Device. (i) District court. (j) Environment. (k) Fungus. (l) Imminent hazard. (m) Inert ingredient. (n) Ingredient statement. (o) Insect. (p) Label and labeling. (q) Misbranded. (r) Nematode. (s) Person. (t) Pest. (u) Pesticide. (v) Plant regulator. (w) Producer and produce. (x) Protect health and the environment. (y) Registrant. (z) Registration. (aa) State. (bb) Unreasonable adverse effects on the environment. (cc) Weed. (dd) Establishment. (ee) To use any registered pesticide in a manner inconsistent with its labeling. (ff) Outstanding data requirement. (gg) To distribute or sell. 136a. Registration of pesticides. (a) Requirement of registration. (b) Exemptions. (c) Procedure for registration. (d) Classification of pesticides. (e) Products with same formulation and claims. (f) Miscellaneous. 136a-1. Reregistration of registered pesticides. (a) General rule. (b) Reregistration phases. (c) Phase one. (d) Phase two. (e) Phase three. (f) Phase four. (g) Phase five. (h) Compensation of data submitter. (i) Fees. (j) Exemption of certain registrants. (k) Reregistration and expedited processing fund. (l) Judicial review. 136b. Transferred. 136c. Experimental use permits. (a) Issuance. (b) Temporary tolerance level. (c) Use under permit. (d) Studies. (e) Revocation. (f) State issuance of permits. (g) Exemption for agricultural research agencies. 136d. Administrative review; suspension. (a) Cancellation after five years. (b) Cancellation and change in classification. (c) Suspension. (d) Public hearings and scientific review. (e) Conditional registration. (f) General provisions. (g) Notice for stored pesticides with canceled or suspended registrations. (h) Judicial review. 136e. Registration of establishments. (a) Requirement. (b) Registration. (c) Information required. (d) Confidential records and information. 136f. Books and records. (a) Requirements. (b) Inspection. 136g. Inspection of establishments, etc. (a) In general. (b) Warrants. (c) Enforcement. 136h. Protection of trade secrets and other information. (a) In general. (b) Disclosure. (c) Disputes. (d) Limitations. (e) Disclosure to contractors. (f) Penalty for disclosure by Federal employees. (g) Disclosure to foreign and multinational pesticide producers. 136i. Use of restricted use pesticides; applicators. (a) Certification procedure. (b) State plans. (c) Instruction in integrated pest management techniques. (d) In general. (e) Separate standards. 136i-1. Pesticide recordkeeping. (a) Requirements. (b) Access. (c) Health care personnel. (d) Penalty. (e) Federal or State provisions. (f) Surveys and reports. (g) Regulations. 136j. Unlawful acts. (a) In general. (b) Exemptions. 136k. Stop sale, use, removal, and seizure. (a) Stop sale, etc., orders. (b) Seizure. (c) Disposition after condemnation. (d) Court costs, etc. 136l. Penalties. (a) Civil penalties. (b) Criminal penalties. 136m. Indemnities. (a) General indemnification. (b) Indemnification of end users, dealers, and distributors. (c) Amount of payment. 136n. Administrative procedure; judicial review. (a) District court review. (b) Review by court of appeals. (c) Jurisdiction of district courts. (d) Notice of judgments. 136o. Imports and exports. (a) Pesticides and devices intended for export. (b) Cancellation notices furnished to foreign governments. (c) Importation of pesticides and devices. (d) Cooperation in international efforts. (e) Regulations. 136p. Exemption of Federal and State agencies. 136q. Storage, disposal, transportation, and recall. (a) Storage, disposal, and transportation. (b) Recalls. (c) Storage costs. (d) Administration of storage, disposal, transportation, and recall programs. (e) Container design. (f) Pesticide residue removal. (g) Pesticide container study. (h) Relationship to Solid Waste Disposal Act. 136r. Research and monitoring. (a) Research. (b) National monitoring plan. (c) Monitoring. 136s. Solicitation of comments; notice of public hearings. (a) Secretary of Agriculture. (b) Views. (c) Notice. 136t. Delegation and cooperation. (a) Delegation. (b) Cooperation. 136u. State cooperation, aid, and training. (a) Cooperative agreements. (b) Contracts for training. (c) Information and education. 136v. Authority of States. (a) In general. (b) Uniformity. (c) Additional uses. 136w. Authority of Administrator. (a) In general. (b) Exemption of pesticides. (c) Other authority. (d) Scientific advisory panel. (e) Peer review. 136w-1. State primary enforcement responsibility. (a) In general. (b) Special rules. (c) Administrator. 136w-2. Failure by the State to assure enforcement of State pesticide use regulations. (a) Referral. (b) Notice. (c) Construction. 136w-3. Identification of pests; cooperation with Department of Agriculture's program. (a) In general. (b) Pest control availability. (c) Integrated pest management. 136w-4. Annual report. 136x. Severability. 136y. Authorization of appropriations. ------DocID 9181 Document 149 of 2641------ -CITE- 7 USC SUBCHAPTER I -EXPCITE- TITLE 7 CHAPTER 6 SUBCHAPTER I -HEAD- SUBCHAPTER I - INSECTICIDES ------DocID 9182 Document 150 of 2641------ -CITE- 7 USC Sec. 121 to 134 -EXPCITE- TITLE 7 CHAPTER 6 SUBCHAPTER I -HEAD- Sec. 121 to 134. Repealed. June 25, 1947, ch. 125, Sec. 16, 61 Stat. 172 -MISC1- Sections, act Apr. 26, 1910, ch. 191, 36 Stat. 335, formerly known as 'The Insecticides Act', are covered by subchapter II of this chapter. EFFECTIVE DATE OF REPEAL; SAVINGS PROVISIONS Section 16 of act June 25, 1947, repealed this subchapter effective one year after June 25, 1947, and further provided that this subchapter should be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceeding with respect to any violations, liabilities incurred, or appeals taken prior to such date of repeal or to sales, shipments, or deliveries of insecticides and fungicides exempted by the Secretary. ------DocID 9183 Document 151 of 2641------ -CITE- 7 USC SUBCHAPTER II -EXPCITE- TITLE 7 CHAPTER 6 SUBCHAPTER II -HEAD- SUBCHAPTER II - ENVIRONMENTAL PESTICIDE CONTROL -SECREF- SUBCHAPTER REFERRED TO IN OTHER SECTIONS This subchapter is referred to in sections 150dd, 450i, 511r, 5506, 5882, 6502, 6519 of this title; title 15 sections 1261, 1277, 1459, 2052, 2602; title 21 sections 321, 346a, 1401; title 42 sections 300g-1, 6905, 9603, 9604, 9607. ------DocID 9184 Document 152 of 2641------ -CITE- 7 USC Sec. 135 to 135k -EXPCITE- TITLE 7 CHAPTER 6 SUBCHAPTER II -HEAD- Sec. 135 to 135k. Omitted -COD- CODIFICATION Sections 135 to 135k, acts June 25, 1947, ch. 125, Sec. 2-13, 61 Stat. 163-172; Aug. 7, 1959, Pub. L. 86-139, Sec. 2, 73 Stat. 286; May 12, 1964, Pub. L. 88-305, Sec. 1-6, 78 Stat. 190-193; Oct. 15, 1970, Pub. L. 91-452, title II, Sec. 204, 84 Stat. 928; Dec. 30, 1970, Pub. L. 91-601, Sec. 6(b), formerly Sec. 7(b), 84 Stat. 1673, renumbered, Aug. 13, 1981, Pub. L. 97-35, title XII, Sec. 1205(c), 95 Stat. 716, which related to economic poison control, were superseded by the amendments made to act June 25, 1947, by Pub. L. 92-516, Oct. 21, 1972, 86 Stat. 975. See section 4 of Pub. L. 92-516, set out as a note under section 136 of this title. The provisions of act June 25, 1947, as amended by Pub. L. 92-516, are set out in section 136 et seq. of this title. Section 135 provided definitions for the purposes of this subchapter. Section 135a related to prohibited acts. Section 135b related to registration of economic poisons. Section 135c related to access, inspection, and use in criminal prosecutions of books and records. Section 135d related to rules and regulations, examination of economic poisons or devices, notification to violators, certification to United States attorney, duty of attorney, and publication of judgments. Section 135e related to exemptions from penalties. Section 135f provided for penalties. Section 135g related to seizure, disposal, and award of costs against claimant. Section 135h related to refusal of admission of imports. Section 135i related to delegation of duties. Section 135j related to authorization of appropriations and expenditure of funds. Section 135k related to cooperation between departments and agencies. ------DocID 9185 Document 153 of 2641------ -CITE- 7 USC Sec. 136 -EXPCITE- TITLE 7 CHAPTER 6 SUBCHAPTER II -HEAD- Sec. 136. Definitions -STATUTE- For purposes of this subchapter - (a) Active ingredient The term 'active ingredient' means - (1) in the case of a pesticide other than a plant regulator, defoliant, or desiccant, an ingredient which will prevent, destroy, repel, or mitigate any pest; (2) in the case of a plant regulator, an ingredient which, through physiological action, will accelerate or retard the rate of growth or rate of maturation or otherwise alter the behavior of ornamental or crop plants or the product thereof; (3) in the case of a defoliant, an ingredient which will cause the leaves or foliage to drop from a plant; and (4) in the case of a desiccant, an ingredient which will artificially accelerate the drying of plant tissue. (b) Administrator The term 'Administrator' means the Administrator of the Environmental Protection Agency. (c) Adulterated The term 'adulterated' applies to any pesticide if - (1) its strength or purity falls below the professed standard of quality as expressed on its labeling under which it is sold; (2) any substance has been substituted wholly or in part for the pesticide; or (3) any valuable constituent of the pesticide has been wholly or in part abstracted. (d) Animal The term 'animal' means all vertebrate and invertebrate species, including but not limited to man and other mammals, birds, fish, and shellfish. (e) Certified applicator, etc. (1) Certified applicator The term 'certified applicator' means any individual who is certified under section 136b (FOOTNOTE 1) of this title as authorized to use or supervise the use of any pesticide which is classified for restricted use. Any applicator who holds or applies registered pesticides, or use (FOOTNOTE 2) dilutions of registered pesticides consistent with subsection (ee) of this section, only to provide a service of controlling pests without delivering any unapplied pesticide to any person so served is not deemed to be a seller or distributor of pesticides under this subchapter. (FOOTNOTE 1) See References in Text note below. (FOOTNOTE 2) So in original. Probably should be 'uses'. (2) Private applicator The term 'private applicator' means a certified applicator who uses or supervises the use of any pesticide which is classified for restricted use for purposes of producing any agricultural commodity on property owned or rented by him or his employer or (if applied without compensation other than trading of personal services between producers of agricultural commodities) on the property of another person. (3) Commercial applicator The term 'commercial applicator' means an applicator (whether or not he is a private applicator with respect to some uses) who uses or supervises the use of any pesticide which is classified for restricted use for any purpose or on any property other than as provided by paragraph (2). (4) Under the direct supervision of a certified applicator Unless otherwise prescribed by its labeling, a pesticide shall be considered to be applied under the direct supervision of a certified applicator if it is applied by a competent person acting under the instructions and control of a certified applicator who is available if and when needed, even though such certified applicator is not physically present at the time and place the pesticide is applied. (f) Defoliant The term 'defoliant' means any substance of mixture of substances intended for causing the leaves or foliage to drop from a plant, with or without causing abscission. (g) Desiccant The term 'desiccant' means any substance or mixture of substances intended for artificially accelerating the drying of plant tissue. (h) Device The term 'device' means any instrument or contrivance (other than a firearm) which is intended for trapping, destroying, repelling, or mitigating any pest or any other form of plant or animal life (other than man and other than bacteria, virus, or other microorganism on or in living man or other living animals); but not including equipment used for the application of pesticides when sold separately therefrom. (i) District court The term 'district court' means a United States district court, the District Court of Guam, the District Court of the Virgin Islands, and the highest court of American Samoa. (j) Environment The term 'environment' includes water, air, land, and all plants and man and other animals living therein, and the interrelationships which exist among these. (k) Fungus The term 'fungus' means any non-chlorophyll-bearing thallophyte (that is, any non-chlorophyll-bearing plant of a lower order than mosses and liverworts), as for example, rust, smut, mildew, mold, yeast, and bacteria, except those on or in living man or other animals and those on or in processed food, beverages, or pharmaceuticals. (l) Imminent hazard The term 'imminent hazard' means a situation which exists when the continued use of a pesticide during the time required for cancellation proceeding would be likely to result in unreasonable adverse effects on the environment or will involve unreasonable hazard to the survival of a species declared endangered or threatened by the Secretary pursuant to the Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.). (m) Inert ingredient The term 'inert ingredient' means an ingredient which is not active. (n) Ingredient statement The term 'ingredient statement' means a statement which contains - (1) the name and percentage of each active ingredient, and the total percentage of all inert ingredients, in the pesticide; and (2) if the pesticide contains arsenic in any form, a statement of the percentages of total and water soluble arsenic, calculated as elementary arsenic. (o) Insect The term 'insect' means any of the numerous small invertebrate animals generally having the body more or less obviously segmented, for the most part belonging to the class insecta, comprising six-legged, usually winged forms, as for example, beetles, bugs, bees, flies, and to other allied classes of anthropods whose members are wingless and usually have more than six legs, as for example, spiders, mites, ticks, centipedes, and wood lice. (p) Label and labeling (1) Label The term 'label' means the written, printed, or graphic matter on, or attached to, the pesticide or device or any of its containers or wrappers. (2) Labeling The term 'labeling' means all labels and all other written, printed, or graphic matter - (A) accompanying the pesticide or device at any time; or (B) to which reference is made on the label or in literature accompanying the pesticide or device, except to current official publications of the Environmental Protection Agency, the United States Departments of Agriculture and Interior, the Department of Health and Human Services, State experiment stations, State agricultural colleges, and other similar Federal or State institutions or agencies authorized by law to conduct research in the field of pesticides. (q) Misbranded (1) A pesticide is misbranded if - (A) its labeling bears any statement, design, or graphic representation relative thereto or to its ingredients which is false or misleading in any particular; (B) it is contained in a package or other container or wrapping which does not conform to the standards established by the Administrator pursuant to section 136w(c)(3) of this title; (C) it is an imitation of, or is offered for sale under the name of, another pesticide; (D) its label does not bear the registration number assigned under section 136e of this title to each establishment in which it was produced; (E) any word, statement, or other information required by or under authority of this subchapter to appear on the label or labeling is not prominently placed thereon with such conspicuousness (as compared with other words, statements, designs, or graphic matter in the labeling) and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use; (F) the labeling accompanying it does not contain directions for use which are necessary for effecting the purpose for which the product is intended and if complied with, together with any requirements imposed under section 136a(d) of this title, are adequate to protect health and the environment; (G) the label does not contain a warning or caution statement which may be necessary and if complied with, together with any requirements imposed under section 136a(d) of this title, is adequate to protect health and the environment; or (H) in the case of a pesticide not registered in accordance with section 136a of this title and intended for export, the label does not contain, in words prominently placed thereon with such conspicuousness (as compared with other words, statements, designs, or graphic matter in the labeling) as to render it likely to be noted by the ordinary individual under customary conditions of purchase and use, the following: 'Not Registered for Use in the United States of America'. (2) A pesticide is misbranded if - (A) the label does not bear an ingredient statement on that part of the immediate container (and on the outside container or wrapper of the retail package, if there be one, through which the ingredient statement on the immediate container cannot be clearly read) which is presented or displayed under customary conditions or purchase, except that a pesticide is not misbranded under this subparagraph if - (i) The size of (FOOTNOTE 3) form of the immediate container, or the outside container or wrapper of the retail package, makes it impracticable to place the ingredient statement on the part which is presented or displayed under customary conditions of purchase; and (FOOTNOTE 3) So in original. Probably should be 'or'. (ii) the ingredient statement appears prominently on another part of the immediate container, or outside container or wrapper, permitted by the Administrator; (B) the labeling does not contain a statement of the use classification under which the product is registered; (C) there is not affixed to its container, and to the outside container or wrapper of the retail package, if there be one, through which the required information on the immediate container cannot be clearly read, a label bearing - (i) the name and address of the producer, registrant, or person for whom produced; (ii) the name, brand, or trademark under which the pesticide is sold; (iii) the net weight or measure of the content, except that the Administrator may permit reasonable variations; and (iv) when required by regulation of the Administrator to effectuate the purposes of this subchapter, the registration number assigned to the pesticide under this subchapter, and the use classification; and (D) the pesticide contains any substance or substances in quantities highly toxic to man, unless the label shall bear, in addition to any other matter required by this subchapter - (i) the skull and crossbones; (ii) the word 'poison' prominently in red on a background of distinctly contrasting color; and (iii) a statement of a practical treatment (first aid or otherwise) in case of poisoning by the pesticide. (r) Nematode The term 'nematode' means invertebrate animals of the phylum nemathelminthes and class nematoda, that is, unsegmented round worms with elongated, fusiform, or saclike bodies covered with cuticle, and inhabiting soil, water, plants, or plant parts; may also be called nemas or eelworms. (s) Person The term 'person' means any individual, partnership, association, corporation, or any organized group of persons whether incorporated or not. (t) Pest The term 'pest' means (1) any insect, rodent, nematode, fungus, weed, or (2) any other form of terrestrial or aquatic plant or animal life or virus, bacteria, or other micro-organism (except viruses, bacteria, or other micro-organisms on or in living man or other living animals) which the Administrator declares to be a pest under section 136w(c)(1) of this title. (u) Pesticide The term 'pesticide' means (1) any substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any pest, and (2) any substance or mixture of substances intended for use as a plant regulator, defoliant, or desiccant, except that the term 'pesticide' shall not include any article that is a 'new animal drug' within the meaning of section 321(w) of title 21, that has been determined by the Secretary of Health and Human Services not to be a new animal drug by a regulation establishing conditions of use for the article, or that is an animal feed within the meaning of section 321(x) of title 21 bearing or containing a new animal drug. (v) Plant regulator The term 'plant regulator' means any substance or mixture of substances intended, through physiological action, for accelerating or retarding the rate of growth or rate of maturation, or for otherwise altering the behavior of plants or the produce thereof, but shall not include substances to the extent that they are intended as plant nutrients, trace elements, nutritional chemicals, plant inoculants, and soil amendments. Also, the term 'plant regulator' shall not be required to include any of such of those nutrient mixtures or soil amendments as are commonly known as vitamin-hormone horticultural products, intended for improvement, maintenance, survival, health, and propagation of plants, and as are not for pest destruction and are nontoxic, nonpoisonous in the undiluted packaged concentration. (w) Producer and produce The term 'producer' means the person who manufactures, prepares, compounds, propagates, or processes any pesticide or device or active ingredient used in producing a pesticide. The term 'produce' means to manufacture, prepare, compound, propagate, or process any pesticide or device or active ingredient used in producing a pesticide. The dilution by individuals of formulated pesticides for their own use and according to the directions on registered labels shall not of itself result in such individuals being included in the definition of 'producer' for the purposes of this subchapter. (x) Protect health and the environment The terms 'protect health and the environment' and 'protection of health and the environment' mean protection against any unreasonable adverse effects on the environment. (y) Registrant The term 'registrant' means a person who has registered any pesticide pursuant to the provisions of this subchapter. (z) Registration The term 'registration' includes reregistration. (aa) State The term 'State' means a State, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Trust Territory of the Pacific Islands, and American Samoa. (bb) Unreasonable adverse effects on the environment The term 'unreasonable adverse effects on the environment' means any unreasonable risk to man or the environment, taking into account the economic, social, and environmental costs and benefits of the use of any pesticide. (cc) Weed The term 'weed' means any plant which grows where not wanted. (dd) Establishment The term 'establishment' means any place where a pesticide or device or active ingredient used in producing a pesticide is produced, or held, for distribution or sale. (ee) To use any registered pesticide in a manner inconsistent with its labeling The term 'to use any registered pesticide in a manner inconsistent with its labeling' means to use any registered pesticide in a manner not permitted by the labeling, except that the term shall not include (1) applying a pesticide at any dosage, concentration, or frequency less than that specified on the labeling unless the labeling specifically prohibits deviation from the specified dosage, concentration, or frequency, (2) applying a pesticide against any target pest not specified on the labeling if the application is to the crop, animal, or site specified on the labeling, unless the Administrator has required that the labeling specifically state that the pesticide may be used only for the pests specified on the labeling after the Administrator has determined that the use of the pesticide against other pests would cause an unreasonable adverse effect on the environment, (3) employing any method of application not prohibited by the labeling unless the labeling specifically states that the product may be applied only by the methods specified on the labeling, (4) mixing a pesticide or pesticides with a fertilizer when such mixture is not prohibited by the labeling, (5) any use of a pesticide in conformance with section 136c, 136p, or 136v of this title, or (6) any use of a pesticide in a manner that the Administrator determines to be consistent with the purposes of this subchapter. After March 31, 1979, the term shall not include the use of a pesticide for agricultural or forestry purposes at a dilution less than label dosage unless before or after that date the Administrator issues a regulation or advisory opinion consistent with the study provided for in section 27(b) of the Federal Pesticide Act of 1978, which regulation or advisory opinion specifically requires the use of definite amounts of dilution. (ff) Outstanding data requirement (1) In general The term 'outstanding data requirement' means a requirement for any study, information, or data that is necessary to make a determination under section 136a(c)(5) of this title and which study, information, or data - (A) has not been submitted to the Administrator; or (B) if submitted to the Administrator, the Administrator has determined must be resubmitted because it is not valid, complete, or adequate to make a determination under section 136a(c)(5) of this title and the regulations and guidelines issued under such section. (2) Factors In making a determination under paragraph (1)(B) respecting a study, the Administrator shall examine, at a minimum, relevant protocols, documentation of the conduct and analysis of the study, and the results of the study to determine whether the study and the results of the study fulfill the data requirement for which the study was submitted to the Administrator. (gg) To distribute or sell The term 'to distribute or sell' means to distribute, sell, offer for sale, hold for distribution, hold for sale, hold for shipment, ship, deliver for shipment, release for shipment, or receive and (having so received) deliver or offer to deliver. The term does not include the holding or application of registered pesticides or use dilutions thereof by any applicator who provides a service of controlling pests without delivering any unapplied pesticide to any person so served. -SOURCE- (June 25, 1947, ch. 125, Sec. 2, as added Oct. 21, 1972, Pub. L. 92-516, Sec. 2, 86 Stat. 975, and amended Dec. 28, 1973, Pub. L. 93-205, Sec. 13(f), 87 Stat. 903; Nov. 28, 1975, Pub. L. 94-140, Sec. 9, 89 Stat. 754; Sept. 30, 1978, Pub. L. 95-396, Sec. 1, 92 Stat. 819; Oct. 25, 1988, Pub. L. 100-532, title I, Sec. 101, title VI, Sec. 601(a), title VIII, Sec. 801(a), 102 Stat. 2655, 2677, 2679.) -REFTEXT- REFERENCES IN TEXT The Endangered Species Act of 1973, referred to in subsec. (l), is Pub. L. 93-205, Dec. 28, 1973, 87 Stat. 884, as amended, which is classified principally to chapter 35 (Sec. 1531 et seq.) of Title 16, Conservation. For complete classification of this Act to the Code, see Short Title note set out under section 1531 of Title 16 and Tables. Section 136b of this title, referred to in subsec. (e)(1), was transferred and redesignated as subsecs. (a) to (c) of section 136i of this title by Pub. L. 100-532, title VIII, Sec. 801(q)(1)(A), Oct. 25, 1988, 102 Stat. 2683. Section 27(b) of Federal Pesticide Act of 1978, referred to in subsec. (ee), is section 27(b) of Pub. L. 95-396, Sept. 30, 1978, 92 Stat. 841, which is set out as a note under section 136w-4 of this title. -MISC2- PRIOR PROVISIONS A prior section 2 of act June 25, 1947, was classified to section 135 of this title prior to amendment of act June 25, 1947, by Pub. L. 92-516. AMENDMENTS 1988 - Subsec. (c). Pub. L. 100-532, Sec. 801(a)(1), substituted 'if - ' for 'if:'. Subsec. (p)(2)(B). Pub. L. 100-532, Sec. 801(a)(2), substituted 'Health and Human Services' for 'Health, Education, and Welfare'. Subsec. (q)(2)(A). Pub. L. 100-532, Sec. 801(a)(3), substituted 'if - ' for 'if:'. Subsec. (q)(2)(C)(iii). Pub. L. 100-532, Sec. 801(a)(4), substituted ', except that' for ': Provided, That'. Subsec. (u). Pub. L. 100-532, Sec. 801(a)(5), substituted ', except that' for ': Provided, That', struck out '(1)(a)' after 'include any article' and 'or (b)' after 'section 321(w) of title 21,', and substituted 'Health and Human Services' for 'Health, Education, and Welfare', 'or that is' for 'or (2) that is', and 'a new animal drug' for 'an article covered by clause (1) of this proviso'. Subsec. (ee). Pub. L. 100-532, Sec. 601(a)(1), 801(a)(6), substituted ', except that' for ': Provided, That', inserted 'unless the labeling specifically prohibits deviation from the specified dosage, concentration, or frequency' and 'unless the labeling specifically states that the product may be applied only by the methods specified on the labeling', substituted 'labeling, (4) mixing' for 'labeling, or (4) mixing', ', (5)' for ': Provided further, That the term also shall not include', 'or (6) any use' for 'or any use', and '. After' for ': And provided further, That after'. Subsec. (ff). Pub. L. 100-532, Sec. 101, added subsec. (ff). Subsec. (gg). Pub. L. 100-532, Sec. 601(a)(2), added subsec. (gg). 1978 - Subsec. (e)(1). Pub. L. 95-396, Sec. 1(1), inserted provision deeming an applicator not a seller or distributor of pesticides when providing a service of controlling pests. Subsec. (e)(3). Pub. L. 95-396, Sec. 1(2), substituted 'an applicator' for 'a certified applicator'. Subsec. (q)(1)(H). Pub. L. 95-396, Sec. 1(3), added subpar. (H). Subsec. (w). Pub. L. 95-396, Sec. 1(4), (5), amended definition of 'producer' and 'produce' to include reference to active ingredient used in producing a pesticide and inserted provision that an individual did not become a producer when there was dilution of a pesticide for personal use according to directions on registered labels. Subsec. (dd). Pub. L. 95-396, Sec. 1(6), inserted 'or active ingredient used in producing a pesticide'. Subsec. (ee). Pub. L. 95-396, Sec. 1(7), added subsec. (ee). 1975 - Subsec. (u). Pub. L. 94-140 inserted proviso which excluded from term 'pesticide' any article designated as 'new animal drug' and any article denominated as animal feed. 1973 - Subsec. (l). Pub. L. 93-205 substituted 'or threatened by the Secretary pursuant to the Endangered Species Act of 1973' for 'by the Secretary of the Interior under Public Law 91-135'. EFFECTIVE DATE OF 1988 AMENDMENT Section 901 of Pub. L. 100-532 provided that: 'Except as otherwise provided in this Act, the amendments made by this Act (see Short Title of 1988 Amendment note below) shall take effect on the expiration of 60 days after the date of enactment of this Act (Oct. 25, 1988).' EFFECTIVE DATE OF 1973 AMENDMENT Amendment by Pub. L. 93-205 effective Dec. 28, 1973, see section 16 of Pub. L. 93-205, set out as an Effective Date note under section 1531 of Title 16, Conservation. EFFECTIVE DATE Section 4 of Pub. L. 92-516, as amended by Pub. L. 94-140, Sec. 4, Nov. 28, 1975, 89 Stat. 752; Pub. L. 95-396, Sec. 28, Sept. 30, 1978, 92 Stat. 842, provided that: '(a) Except as otherwise provided in the Federal Insecticide, Fungicide, and Rodenticide Act (this subchapter), as amended by this Act and as otherwise provided by this section, the amendments made by this Act (see Short Title note set out below) shall take effect at the close of the date of the enactment of this Act (Oct. 21, 1972), provided if regulations are necessary for the implementation of any provision that becomes effective on the date of enactment, such regulations shall be promulgated and shall become effective within 90 days from the date of enactment of this Act. '(b) The provisions of the Federal Insecticide, Fungicide, and Rodenticide Act (this subchapter) and the regulations thereunder as such existed prior to the enactment of this Act shall remain in effect until superseded by the amendments made by this Act and regulations thereunder. '(c)(1) Two years after the enactment of this Act the Administrator shall have promulgated regulations providing for the registration and classification of pesticides under the provisions of this Act and thereafter shall register all new applications under such provisions. '(2) Any requirements that a pesticide be registered for use only by a certified applicator shall not be effective until five years from the date of enactment of this Act. '(3) A period of five years from date of enactment shall be provided for certification of applicators. '(A) One year after the enactment of this Act the Administrator shall have prescribed the standards for the certification of applicators. '(B) Each State desiring to certify applicators shall submit a State plan to the Administrator for the purpose provided by section 4(b). '(C) As promptly as possible but in no event more than one year after submission of a State plan, the Administrator shall approve the State plan or disapprove it and indicate the reasons for disapproval. Consideration of plans resubmitted by States shall be expedited. '(4) One year after the enactment of this Act the Administrator shall have promulgated and shall make effective regulations relating to the registration of establishments, permits for experimental use, and the keeping of books and records under the provisions of this Act. '(d) No person shall be subject to any criminal or civil penalty imposed by the Federal Insecticide, Fungicide, and Rodenticide Act, as amended by this Act, for any act (or failure to act) occurring before the expiration of 60 days after the Administrator has published effective regulations in the Federal Register and taken such other action as may be necessary to permit compliance with the provisions under which the penalty is to be imposed. '(e) For purposes of determining any criminal or civil penalty or liability to any third person in respect of any act or omission occurring before the expiration of the periods referred to in this section, the Federal Insecticide, Fungicide, and Rodenticide Act shall be treated as continuing in effect as if this Act had not been enacted.' SHORT TITLE OF 1988 AMENDMENT Section 1(a) of Pub. L. 100-532 provided that: 'This Act (enacting section 136a-1 of this title, amending sections 136 to 136d, 136f to 136q, 136s, 136v to 136w-2, and 136y of this title, and enacting provisions set out as notes under sections 136, 136m, and 136y of this title) may be cited as the 'Federal Insecticide, Fungicide, and Rodenticide Act Amendments of 1988'.' SHORT TITLE OF 1978 AMENDMENT Section 29 of Pub. L. 95-396 provided that: 'This Act (enacting sections 136w-1 to 136w-4 of this title, amending sections 136 to 136f, 136h, 136j, 136l, 136o, 136q, 136r, 136u to 136w, 136x, and 136y of this title, enacting provisions set out as notes under sections 136a, 136o, and 136w-4 of this title, and amending provisions set out as a note under this section) may be cited as the 'Federal Pesticide Act of 1978'.' SHORT TITLE Section 1 of Pub. L. 92-516 provided: 'That this Act (amending this subchapter generally, enacting notes set out under this section, and amending sections 1261 and 1471 of Title 15, Commerce and Trade, and sections 321 and 346a of Title 21, Foods and Drugs) may be cited as the 'Federal Environmental Pesticide Control Act of 1972'.' Section 1(a) of Act June 25, 1947, as added by Pub. L. 92-516, Sec. 2, provided that: 'This Act (enacting this subchapter) may be cited as the 'Federal Insecticide, Fungicide, and Rodenticide Act'.' FEDERAL COMPLIANCE WITH POLLUTION CONTROL STANDARDS For provisions relating to the responsibility of the head of each Executive agency for compliance with applicable pollution control standards, see Ex. Ord. No. 12088, Oct. 13, 1978, 43 F.R. 47707, set out as a note under section 4321 of Title 42, The Public Health and Welfare. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 136o, 136w, 136w-1, 138, 5882 of this title. ------DocID 9186 Document 154 of 2641------ -CITE- 7 USC Sec. 136a -EXPCITE- TITLE 7 CHAPTER 6 SUBCHAPTER II -HEAD- Sec. 136a. Registration of pesticides -STATUTE- (a) Requirement of registration Except as provided by this subchapter, no person in any State may distribute or sell to any person any pesticide that is not registered under this subchapter. To the extent necessary to prevent unreasonable adverse effects on the environment, the Administrator may by regulation limit the distribution, sale, or use in any State of any pesticide that is not registered under this subchapter and that is not the subject of an experimental use permit under section 136c of this title or an emergency exemption under section 136p of this title. (b) Exemptions A pesticide which is not registered with the Administrator may be transferred if - (1) the transfer is from one registered establishment to another registered establishment operated by the same producer solely for packaging at the second establishment or for use as a constituent part of another pesticide produced at the second establishment; or (2) the transfer is pursuant to and in accordance with the requirements of an experimental use permit. (c) Procedure for registration (1) Statement required Each applicant for registration of a pesticide shall file with the Administrator a statement which includes - (A) the name and address of the applicant and of any other person whose name will appear on the labeling; (B) the name of the pesticide; (C) a complete copy of the labeling of the pesticide, a statement of all claims to be made for it, and any directions for its use; (D) except as otherwise provided in paragraph (2)(D), if requested by the Administrator, a full description of the tests made and the results thereof upon which the claims are based, or alternatively a citation to data that appear in the public literature or that previously had been submitted to the Administrator and that the Administrator may consider in accordance with the following provisions: (i) with respect to pesticides containing active ingredients that are initially registered under this subchapter after September 30, 1978, data submitted to support the application for the original registration of the pesticide, or an application for an amendment adding any new use to the registration and that pertains solely to such new use, shall not, without the written permission of the original data submitter, be considered by the Administrator to support an application by another person during a period of ten years following the date the Administrator first registers the pesticide, except that such permission shall not be required in the case of defensive data; (ii) except as otherwise provided in clause (i), with respect to data submitted after December 31, 1969, by an applicant or registrant to support an application for registration, experimental use permit, or amendment adding a new use to an existing registration, to support or maintain in effect an existing registration, or for reregistration, the Administrator may, without the permission of the original data submitter, consider any such item of data in support of an application by any other person (hereinafter in this subparagraph referred to as the 'applicant') within the fifteen-year period following the date the data were originally submitted only if the applicant has made an offer to compensate the original data submitter and submitted such offer to the Administrator accompanied by evidence of delivery to the original data submitter of the offer. The terms and amount of compensation may be fixed by agreement between the original data submitter and the applicant, or, failing such agreement, binding arbitration under this subparagraph. If, at the end of ninety days after the date of delivery to the original data submitter of the offer to compensate, the original data submitter and the applicant have neither agreed on the amount and terms of compensation nor on a procedure for reaching an agreement on the amount and terms of compensation, either person may initiate binding arbitration proceedings by requesting the Federal Mediation and Conciliation Service to appoint an arbitrator from the roster of arbitrators maintained by such Service. The procedure and rules of the Service shall be applicable to the selection of such arbitrator and to such arbitration proceedings, and the findings and determination of the arbitrator shall be final and conclusive, and no official or court of the United States shall have power or jurisdiction to review any such findings and determination, except for fraud, misrepresentation, or other misconduct by one of the parties to the arbitration or the arbitrator where there is a verified complaint with supporting affidavits attesting to specific instances of such fraud, misrepresentation, or other misconduct. The parties to the arbitration shall share equally in the payment of the fee and expenses of the arbitrator. If the Administrator determines that an original data submitter has failed to participate in a procedure for reaching an agreement or in an arbitration proceeding as required by this subparagraph, or failed to comply with the terms of an agreement or arbitration decision concerning compensation under this subparagraph, the original data submitter shall forfeit the right to compensation for the use of the data in support of the application. Notwithstanding any other provision of this subchapter, if the Administrator determines that an applicant has failed to participate in a procedure for reaching an agreement or in an arbitration proceeding as required by this subparagraph, or failed to comply with the terms of an agreement or arbitration decision concerning compensation under this subparagraph, the Administrator shall deny the application or cancel the registration of the pesticide in support of which the data were used without further hearing. Before the Administrator takes action under either of the preceding two sentences, the Administrator shall furnish to the affected person, by certified mail, notice of intent to take action and allow fifteen days from the date of delivery of the notice for the affected person to respond. If a registration is denied or canceled under this subparagraph, the Administrator may make such order as the Administrator deems appropriate concerning the continued sale and use of existing stocks of such pesticide. Registration action by the Administrator shall not be delayed pending the fixing of compensation; (iii) after expiration of any period of exclusive use and any period for which compensation is required for the use of an item of data under clauses (i) and (ii), the Administrator may consider such item of data in support of an application by any other applicant without the permission of the original data submitter and without an offer having been received to compensate the original data submitter for the use of such item of data; (E) the complete formula of the pesticide; and (F) a request that the pesticide be classified for general use, for restricted use, or for both. (2) Data in support of registration (A) The Administrator shall publish guidelines specifying the kinds of information which will be required to support the registration of a pesticide and shall revise such guidelines from time to time. If thereafter he requires any additional kind of information under subparagraph (B) of this paragraph, he shall permit sufficient time for applicants to obtain such additional information. The Administrator, in establishing standards for data requirements for the registration of pesticides with respect to minor uses, shall make such standards commensurate with the anticipated extent of use, pattern of use, and the level and degree of potential exposure of man and the environment to the pesticide. The Administrator shall not require a person to submit, in relation to a registration or reregistration of a pesticide for minor agricultural use under this subchapter, any field residue data from a geographic area where the pesticide will not be registered for such use. In the development of these standards, the Administrator shall consider the economic factors of potential national volume of use, extent of distribution, and the impact of the cost of meeting the requirements on the incentives for any potential registrant to undertake the development of the required data. Except as provided by section 136h of this title, within 30 days after the Administrator registers a pesticide under this subchapter he shall make available to the public the data called for in the registration statement together with such other scientific information as he deems relevant to his decision. (B)(i) If the Administrator determines that additional data are required to maintain in effect an existing registration of a pesticide, the Administrator shall notify all existing registrants of the pesticide to which the determination relates and provide a list of such registrants to any interested person. (ii) Each registrant of such pesticide shall provide evidence within ninety days after receipt of notification that it is taking appropriate steps to secure the additional data that are required. Two or more registrants may agree to develop jointly, or to share in the cost of developing, such data if they agree and advise the Administrator of their intent within ninety days after notification. Any registrant who agrees to share in the cost of producing the data shall be entitled to examine and rely upon such data in support of maintenance of such registration. The Administrator shall issue a notice of intent to suspend the registration of a pesticide in accordance with the procedures prescribed by clause (iv) if a registrant fails to comply with this clause. (iii) If, at the end of sixty days after advising the Administrator of their agreement to develop jointly, or share in the cost of developing, data, the registrants have not further agreed on the terms of the data development arrangement or on a procedure for reaching such agreement, any of such registrants may initiate binding arbitration proceedings by requesting the Federal Mediation and Conciliation Service to appoint an arbitrator from the roster of arbitrators maintained by such Service. The procedure and rules of the Service shall be applicable to the selection of such arbitrator and to such arbitration proceedings, and the findings and determination of the arbitrator shall be final and conclusive, and no official or court of the United States shall have power or jurisdiction to review any such findings and determination, except for fraud, misrepresentation, or other misconduct by one of the parties to the arbitration or the arbitrator where there is a verified complaint with supporting affidavits attesting to specific instances of such fraud, misrepresentation, or other misconduct. All parties to the arbitration shall share equally in the payment of the fee and expenses of the arbitrator. The Administrator shall issue a notice of intent to suspend the registration of a pesticide in accordance with the procedures prescribed by clause (iv) if a registrant fails to comply with this clause. (iv) Notwithstanding any other provision of this subchapter, if the Administrator determines that a registrant, within the time required by the Administrator, has failed to take appropriate steps to secure the data required under this subparagraph, to participate in a procedure for reaching agreement concerning a joint data development arrangement under this subparagraph or in an arbitration proceeding as required by this subparagraph, or to comply with the terms of an agreement or arbitration decision concerning a joint data development arrangement under this subparagraph, the Administrator may issue a notice of intent to suspend such registrant's registration of the pesticide for which additional data is required. The Administrator may include in the notice of intent to suspend such provisions as the Administrator deems appropriate concerning the continued sale and use of existing stocks of such pesticide. Any suspension proposed under this subparagraph shall become final and effective at the end of thirty days from receipt by the registrant of the notice of intent to suspend, unless during that time a request for hearing is made by a person adversely affected by the notice or the registrant has satisfied the Administrator that the registrant has complied fully with the requirements that served as a basis for the notice of intent to suspend. If a hearing is requested, a hearing shall be conducted under section 136d(d) of this title. The only matters for resolution at that hearing shall be whether the registrant has failed to take the action that served as the basis for the notice of intent to suspend the registration of the pesticide for which additional data is required, and whether the Administrator's determination with respect to the disposition of existing stocks is consistent with this subchapter. If a hearing is held, a decision after completion of such hearing shall be final. Notwithstanding any other provision of this subchapter, a hearing shall be held and a determination made within seventy-five days after receipt of a request for such hearing. Any registration suspended under this subparagraph shall be reinstated by the Administrator if the Administrator determines that the registrant has complied fully with the requirements that served as a basis for the suspension of the registration. (v) Any data submitted under this subparagraph shall be subject to the provisions of paragraph (1)(D). Whenever such data are submitted jointly by two or more registrants, an agent shall be agreed on at the time of the joint submission to handle any subsequent data compensation matters for the joint submitters of such data. (C) Within nine months after September 30, 1978, the Administrator shall, by regulation, prescribe simplified procedures for the registration of pesticides, which shall include the provisions of subparagraph (D) of this paragraph. (D) Exemption. - No applicant for registration of a pesticide who proposes to purchase a registered pesticide from another producer in order to formulate such purchased pesticide into the pesticide that is the subject of the application shall be required to - (i) submit or cite data pertaining to such purchased product; or (ii) offer to pay reasonable compensation otherwise required by paragraph (1)(D) of this subsection for the use of any such data. (3) Application (A) The Administrator shall review the data after receipt of the application and shall, as expeditiously as possible, either register the pesticide in accordance with paragraph (5), or notify the applicant of his determination that it does not comply with the provisions of the subchapter in accordance with paragraph (6). (B)(i) The Administrator shall, as expeditiously as possible, review and act on any application received by the Administrator that - (I) proposes the initial or amended registration of an end-use pesticide that, if registered as proposed, would be identical or substantially similar in composition and labeling to a currently-registered pesticide identified in the application, or that would differ in composition and labeling from such currently-registered pesticide only in ways that would not significantly increase the risk of unreasonable adverse effects on the environment; or (II) proposes an amendment to the registration of a registered pesticide that does not require scientific review of data. (ii) In expediting the review of an application for an action described in clause (i), the Administrator shall - (I) within 45 days after receiving the application, notify the registrant whether or not the application is complete and, if the application is found to be incomplete, reject the application; (II) within 90 days after receiving a complete application, notify the registrant if the application has been granted or denied; and (III) if the application is denied, notify the registrant in writing of the specific reasons for the denial of the application. (4) Notice of application The Administrator shall publish in the Federal Register, promptly after receipt of the statement and other data required pursuant to paragraphs (1) and (2), a notice of each application for registration of any pesticide if it contains any new active ingredient or if it would entail a changed use pattern. The notice shall provide for a period of 30 days in which any Federal agency or any other interested person may comment. (5) Approval of registration The Administrator shall register a pesticide if he determines that, when considered with any restrictions imposed under subsection (d) of this section - (A) its composition is such as to warrant the proposed claims for it; (B) its labeling and other material required to be submitted comply with the requirements of this subchapter; (C) it will perform its intended function without unreasonable adverse effects on the environment; and (D) when used in accordance with widespread and commonly recognized practice it will not generally cause unreasonable adverse effects on the environment. The Administrator shall not make any lack of essentiality a criterion for denying registration of any pesticide. Where two pesticides meet the requirements of this paragraph, one should not be registered in preference to the other. In considering an application for the registration of a pesticide, the Administrator may waive data requirements pertaining to efficacy, in which event the Administrator may register the pesticide without determining that the pesticide's composition is such as to warrant proposed claims of efficacy. If a pesticide is found to be efficacious by any State under section 136v(c) of this title, a presumption is established that the Administrator shall waive data requirements pertaining to efficacy for use of the pesticide in such State. (6) Denial of registration If the Administrator determines that the requirements of paragraph (5) for registration are not satisfied, he shall notify the applicant for registration of his determination and of his reasons (including the factual basis) therefor, and that, unless the applicant corrects the conditions and notifies the Administrator thereof during the 30-day period beginning with the day after the date on which the applicant receives the notice, the Administrator may refuse to register the pesticide. Whenever the Administrator refuses to register a pesticide, he shall notify the applicant of his decision and of his reasons (including the factual basis) therefor. The Administrator shall promptly publish in the Federal Register notice of such denial of registration and the reasons therefor. Upon such notification, the applicant for registration or other interested person with the concurrence of the applicant shall have the same remedies as provided for in section 136d of this title. (7) Registration under special circumstances Notwithstanding the provisions of paragraph (5) - (A) The Administrator may conditionally register or amend the registration of a pesticide if the Administrator determines that (i) the pesticide and proposed use are identical or substantially similar to any currently registered pesticide and use thereof, or differ only in ways that would not significantly increase the risk of unreasonable adverse effects on the environment, and (ii) approving the registration or amendment in the manner proposed by the applicant would not significantly increase the risk of any unreasonable adverse effect on the environment. An applicant seeking conditional registration or amended registration under this subparagraph shall submit such data as would be required to obtain registration of a similar pesticide under paragraph (5). If the applicant is unable to submit an item of data because it has not yet been generated, the Administrator may register or amend the registration of the pesticide under such conditions as will require the submission of such data not later than the time such data are required to be submitted with respect to similar pesticides already registered under this subchapter. (B) The Administrator may conditionally amend the registration of a pesticide to permit additional uses of such pesticide notwithstanding that data concerning the pesticide may be insufficient to support an unconditional amendment, if the Administrator determines that (i) the applicant has submitted satisfactory data pertaining to the proposed additional use, and (ii) amending the registration in the manner proposed by the applicant would not significantly increase the risk of any unreasonable adverse effect on the environment. Notwithstanding the foregoing provisions of this subparagraph, no registration of a pesticide may be amended to permit an additional use of such pesticide if the Administrator has issued a notice stating that such pesticide, or any ingredient thereof, meets or exceeds risk criteria associated in whole or in part with human dietary exposure enumerated in regulations issued under this subchapter, and during the pendency of any risk-benefit evaluation initiated by such notice, if (I) the additional use of such pesticide involves a major food or feed crop, or (II) the additional use of such pesticide involves a minor food or feed crop and the Administrator determines, with the concurrence of the Secretary of Agriculture, there is available an effective alternative pesticide that does not meet or exceed such risk criteria. An applicant seeking amended registration under this subparagraph shall submit such data as would be required to obtain registration of a similar pesticide under paragraph (5). If the applicant is unable to submit an item of data (other than data pertaining to the proposed additional use) because it has not yet been generated, the Administrator may amend the registration under such conditions as will require the submission of such data not later than the time such data are required to be submitted with respect to similar pesticides already registered under this subchapter. (C) The Administrator may conditionally register a pesticide containing an active ingredient not contained in any currently registered pesticide for a period reasonably sufficient for the generation and submission of required data (which are lacking because a period reasonably sufficient for generation of the data has not elapsed since the Administrator first imposed the data requirement) on the condition that by the end of such period the Administrator receives such data and the data do not meet or exceed risk criteria enumerated in regulations issued under this subchapter, and on such other conditions as the Administrator may prescribe. A conditional registration under this subparagraph shall be granted only if the Administrator determines that use of the pesticide during such period will not cause any unreasonable adverse effect on the environment, and that use of the pesticide is in the public interest. (8) Interim administrative review Notwithstanding any other provision of this subchapter, the Administrator may not initiate a public interim administrative review process to develop a risk-benefit evaluation of the ingredients of a pesticide or any of its uses prior to initiating a formal action to cancel, suspend, or deny registration of such pesticide, required under this subchapter, unless such interim administrative process is based on a validated test or other significant evidence raising prudent concerns of unreasonable adverse risk to man or to the environment. Notice of the definition of the terms 'validated test' and 'other significant evidence' as used herein shall be published by the Administrator in the Federal Register. (d) Classification of pesticides (1) Classification for general use, restricted use, or both (A) As a part of the registration of a pesticide the Administrator shall classify it as being for general use or for restricted use. If the Administrator determines that some of the uses for which the pesticide is registered should be for general use and that other uses for which it is registered should be for restricted use, he shall classify it for both general use and restricted use. Pesticide uses may be classified by regulation on the initial classification, and registered pesticides may be classified prior to reregistration. If some of the uses of the pesticide are classified for general use, and other uses are classified for restricted use, the directions relating to its general uses shall be clearly separated and distinguished from those directions relating to its restricted uses. The Administrator may require that its packaging and labeling for restricted uses shall be clearly distinguishable from its packaging and labeling for general uses. (B) If the Administrator determines that the pesticide, when applied in accordance with its directions for use, warnings and cautions and for the uses for which it is registered, or for one or more of such uses, or in accordance with a widespread and commonly recognized practice, will not generally cause unreasonable adverse effects on the environment, he will classify the pesticide, or the particular use or uses of the pesticide to which the determination applies, for general use. (C) If the Administrator determines that the pesticide, when applied in accordance with its directions for use, warnings and cautions and for the uses for which it is registered, or for one or more of such uses, or in accordance with a widespread and commonly recognized practice, may generally cause, without additional regulatory restrictions, unreasonable adverse effects on the environment, including injury to the applicator, he shall classify the pesticide, or the particular use or uses to which the determination applies, for restricted use: (i) If the Administrator classifies a pesticide, or one or more uses of such pesticide, for restricted use because of a determination that the acute dermal or inhalation toxicity of the pesticide presents a hazard to the applicator or other persons, the pesticide shall be applied for any use to which the restricted classification applies only by or under the direct supervision of a certified applicator. (ii) If the Administrator classifies a pesticide, or one or more uses of such pesticide, for restricted use because of a determination that its use without additional regulatory restriction may cause unreasonable adverse effects on the environment, the pesticide shall be applied for any use to which the determination applies only by or under the direct supervision of a certified applicator, or subject to such other restrictions as the Administrator may provide by regulation. Any such regulation shall be reviewable in the appropriate court of appeals upon petition of a person adversely affected filed within 60 days of the publication of the regulation in final form. (2) Change in classification If the Administrator determines that a change in the classification of any use of a pesticide from general use to restricted use is necessary to prevent unreasonable adverse effects on the environment, he shall notify the registrant of such pesticide of such determination at least forty-five days before making the change and shall publish the proposed change in the Federal Register. The registrant, or other interested person with the concurrence of the registrant, may seek relief from such determination under section 136d(b) of this title. (3) Change in classification from restricted use to general use The registrant of any pesticide with one or more uses classified for restricted use may petition the Administrator to change any such classification from restricted to general use. Such petition shall set out the basis for the registrant's position that restricted use classification is unnecessary because classification of the pesticide for general use would not cause unreasonable adverse effects on the environment. The Administrator, within sixty days after receiving such petition, shall notify the registrant whether the petition has been granted or denied. Any denial shall contain an explanation therefor and any such denial shall be subject to judicial review under section 136n of this title. (e) Products with same formulation and claims Products which have the same formulation, are manufactured by the same person, the labeling of which contains the same claims, and the labels of which bear a designation identifying the product as the same pesticide may be registered as a single pesticide; and additional names and labels shall be added to the registration by supplemental statements. (f) Miscellaneous (1) Effect of change of labeling or formulation If the labeling or formulation for a pesticide is changed, the registration shall be amended to reflect such change if the Administrator determines that the change will not violate any provision of this subchapter. (2) Registration not a defense In no event shall registration of an article be construed as a defense for the commission of any offense under this subchapter. As long as no cancellation proceedings are in effect registration of a pesticide shall be prima facie evidence that the pesticide, its labeling and packaging comply with the registration provisions of the subchapter. (3) Authority to consult other Federal agencies In connection with consideration of any registration or application for registration under this section, the Administrator may consult with any other Federal agency. -SOURCE- (June 25, 1947, ch. 125, Sec. 3, as added Oct. 21, 1972, Pub. L. 92-516, Sec. 2, 86 Stat. 979, and amended Nov. 28, 1975, Pub. L. 94-140, Sec. 12, 89 Stat. 755; Sept. 30, 1978, Pub. L. 95-396, Sec. 2(a), 3-8, 92 Stat. 820, 824-827; Oct. 25, 1988, Pub. L. 100-532, title I, Sec. 102(b), 103, title VI, Sec. 601(b)(1), title VIII, Sec. 801(b), 102 Stat. 2667, 2677, 2680; Nov. 28, 1990, Pub. L. 101-624, title XIV, Sec. 1492, 104 Stat. 3628.) -MISC1- PRIOR PROVISIONS A prior section 3 of act June 25, 1947, was classified to section 135a of this title prior to amendment of act June 25, 1947, by Pub. L. 92-516. AMENDMENTS 1990 - Subsec. (c)(2)(A). Pub. L. 101-624 inserted after third sentence 'The Administrator shall not require a person to submit, in relation to a registration or reregistration of a pesticide for minor agricultural use under this subchapter, any field residue data from a geographic area where the pesticide will not be registered for such use.' 1988 - Subsec. (a). Pub. L. 100-532, Sec. 601(b)(1), substituted 'Requirement of registration' for 'Requirement' in heading and amended text generally. Prior to amendment, text read as follows: 'Except as otherwise provided by this subchapter, no person in any State may distribute, sell, offer for sale, hold for sale, ship, deliver for shipment, or receive and (having so received) deliver or offer to deliver, to any person any pesticide which is not registered with the Administrator.' Subsec. (c)(1)(D). Pub. L. 100-532, Sec. 801(b)(1)-(4), in introductory provisions, substituted 'paragraph (2)(D)' for 'subsection (c)(2)(D) of this section', in cl. (i), substituted '(i) with' for '(i) With' and ', except that' for ': Provided, That', in cl. (ii), substituted 'clause (i)' for 'subparagraph (D)(i) of this paragraph', and in cl. (iii), substituted 'clauses (i) and (ii)' for 'subparagraphs (D)(i) and (D)(ii) of this paragraph'. Subsec. (c)(2)(A). Pub. L. 100-532, Sec. 801(b)(5)(A), (B), substituted '(2) Data in support of registration. - '(A) The' for '(2)(A) Data in support of registration. - The', and directed that subpar. (A) be aligned with left margin of subsec. (d)(1)(A) of this section. Subsec. (c)(2)(B). Pub. L. 100-532, Sec. 102(b)(1), 801(b)(5)(C)-(F), substituted '(B)(i) If' for '(B) Additional data to support existing registration. - (i) If', directed that cls. (ii) to (v) be aligned with left margin of subpar. (A), in cls. (ii) and (iii), inserted 'The Administrator shall issue a notice of intent to suspend the registration of a pesticide in accordance with the procedures prescribed by clause (iv) if a registrant fails to comply with this clause.', in cl. (iv), substituted 'title. The only' for 'title: Provided, that the only', and in cl. (v), substituted 'paragraph (1)(D)' for 'subsection (c)(1)(D) of this section'. Subsec. (c)(2)(C). Pub. L. 100-532, Sec. 801(b)(5)(G), (H), struck out 'Simplified procedures' after '(C)' and directed that text be aligned with left margin of subpar. (A). Subsec. (c)(2)(D). Pub. L. 100-532, Sec. 102(b)(2), in introductory provisions, substituted 'the pesticide that is the subject of the application' for 'an end-use product', and in cl. (i), struck out 'the safety of' after 'data pertaining to'. Subsec. (c)(3). Pub. L. 100-532, Sec. 103, substituted '(A) The Administrator' for 'The Administrator' and added subpar. (B). Subsec. (c)(7). Pub. L. 100-532, Sec. 801(b)(6), in introductory provisions, substituted 'paragraph (5)' for 'subsection (c)(5) of this section', in subpars. (A) and (B), substituted 'paragraph (5). If' for 'subsection (c)(5) of this section: Provided, That, if', and in subpar. (C), substituted 'prescribe. A' for 'prescribe: Provided, that a'. Subsec. (d)(1)(A). Pub. L. 100-532, Sec. 801(b)(7), substituted 'restricted use. If' for 'restricted use, provided that if' and 'restricted uses. The Administrator' for 'restricted uses: Provided, however, That the Administrator'. Subsec. (f)(2). Pub. L. 100-532, Sec. 801(b)(8), substituted 'this subchapter. As' for 'this subchapter: Provided, That as'. Subsec. (g). Pub. L. 100-532, Sec. 801(b)(9), struck out subsec. (g) which read as follows: 'The Administrator shall accomplish the reregistration of all pesticides in the most expeditious manner practicable: Provided, That, to the extent appropriate, any pesticide that results in a postharvest residue in or on food or feed crops shall be given priority in the reregistration process.' 1978 - Subsec. (c)(1)(D). Pub. L. 95-396, Sec. 2(a)(1), added subpar. (D), and struck out provisions which required the applicant for registration of a pesticide to file with the Administrator a statement containing 'if requested by the Administrator, a full description of the tests made and the results thereof upon which the claims are based, except that data submitted on or after January 1, 1970, in support of an application shall not, without permission of the applicant, be considered by the Administrator in support of any other application for registration unless such other applicant shall have first offered to pay reasonable compensation for producing the test data to be relied upon and such data is not protected from disclosure by section 136h(b) of this title. This provision with regard to compensation for producing the test data to be relied upon shall apply with respect to all applications for registration or reregistration submitted on or after October 21, 1972. If the parties cannot agree on the amount and method of payment, the Administrator shall make such determination and may fix such other terms and conditions as may be reasonable under the circumstances. The Administrator's determination shall be made on the record after notice and opportunity for hearing. If either party does not agree with said determination, he may, within thirty days, take an appeal to the Federal district court for the district in which he resides with respect to either the amount of the payment or the terms of payment, or both. Registration shall not be delayed pending the determination of reasonable compensation between the applicants, by the Administrator or by the court.'. Subsec. (c)(2). Pub. L. 95-396, Sec. 2(a)(2)(A)-(D), 3, 4, designated existing provisions as subpar. (A), inserted in second sentence 'under subparagraph (B) of this paragraph' after 'kind of information', struck out from introductory text of third sentence 'subsection (c)(1)(D) of this section and' after 'Except as provided by', and inserted provisions relating to establishment of standards for data requirements for registration of pesticides with respect to minor uses and consideration of economic factors in development of standards and cost of development, and added subpars. (B) to (D). Subsec. (c)(5). Pub. L. 95-396, Sec. 5, provided for waiver of data requirements pertaining to efficacy. Subsec. (c)(7), (8). Pub. L. 95-396, Sec. 6, added pars. (7) and (8). Subsec. (d)(1)(A). Pub. L. 95-396, Sec. 7(1), authorized classification of pesticide uses by regulation on the initial classification and registered pesticides prior to reregistration. Subsec. (d)(2). Pub. L. 95-396, Sec. 7(2), substituted 'forty-five days' for '30 days'. Subsec. (d)(3). Pub. L. 95-396, Sec. 7(3), added par. (3). Subsec. (g). Pub. L. 95-396, Sec. 8, added subsec. (g). 1975 - Subsec. (c)(1)(D). Pub. L. 94-140 inserted exception relating to test data submitted on or after January 1, 1970, in support of application, inserted provision that compensation for producing test data shall apply to all applications submitted on or after October 21, 1972, and provision relating to delay of registration pending determination of reasonable compensation, struck out requirement that payment determined by court not be less than amount determined by Administrator, and substituted 'If either party' for 'If the owner of the test data'. EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100-532 effective on expiration of 60 days after Oct. 25, 1988, see section 901 of Pub. L. 100-532, set out as a note under section 136 of this title. EFFECTIVE DATE OF 1978 AMENDMENT Section 2(b) of Pub. L. 95-396 provided that: 'The amendment to section 3(c)(1)(D) of the Federal Insecticide, Fungicide, and Rodenticide Act (subsec. (c)(1)(D) of this section) made by (subsec. (a)(1) of) this section shall apply with respect to all applications for registration approved after the date of enactment of this Act (Sept. 30, 1978).' EFFECTIVE DATE For effective date of section, see section 4 of Pub. L. 92-516, set out as a note under section 136 of this title. BIOLOGICAL PESTICIDE HANDLING STUDY Section 1498 of Pub. L. 101-624 provided that: '(a) Study. - Not later than September 30, 1992, the National Academy of Sciences shall conduct a study of the biological control programs and registration procedures utilized by the Food and Drug Administration, the Animal and Plant Health Inspection Service, and the Environmental Protection Agency. '(b) Development of Procedures. - Not later than 1 year after the completion of the study under subsection (a), the agencies and offices described in such subsection shall develop and implement a common process for reviewing and approving biological control applications that are submitted to such agencies and offices that shall be based on the study conducted under such subsection and the recommendation of the National Academy of Sciences, and other public comment.' EDUCATION, STUDY, AND REPORT Pub. L. 100-478, title I, Sec. 1010, Oct. 7, 1988, 102 Stat. 2313, provided that: '(a) Education. - The Administrator of the Environmental Protection Agency in cooperation with the Secretary of Agriculture and the Secretary of the Interior, promptly upon enactment of this Act (Oct. 7, 1988), shall conduct a program to inform and educate fully persons engaged in agricultural food and fiber commodity production of any proposed pesticide labeling program or requirements that may be imposed by the Administrator in compliance with the Endangered Species Act (16 U.S.C. 1531 et seq.). The Administrator also shall provide the public with notice of, and opportunity for comment on, the elements of any such program and requirements based on compliance with the Endangered Species Act, including (but not limited to) an identification of any pesticides affected by the program; an explanation of the restriction or prohibition on the user or applicator of any such pesticide; an identification of those geographic areas affected by any pesticide restriction or prohibition; an identification of the effects of any restricted or prohibited pesticide on endangered or threatened species; and an identification of the endangered or threatened species along with a general description of the geographic areas in which such species are located wherein the application of a pesticide will be restricted, prohibited, or its use otherwise limited, unless the Secretary of the Interior determines that the disclosure of such information may create a substantial risk of harm to such species or its habitat. '(b) Study. - The Administrator of the Environmental Protection Agency, jointly with the Secretary of Agriculture and the Secretary of the Interior, shall conduct a study to identify reasonable and prudent means available to the Administrator to implement the endangered species pesticides labeling program which would comply with the Endangered Species Act of 1973, as amended, and which would allow persons to continue production of agricultural food and fiber commodities. Such study shall include investigation by the Administrator of the best available methods to develop maps and the best available alternatives to mapping as means of identifying those circumstances in which use of pesticides may be restricted; identification of alternatives to prohibitions on pesticide use, including, but not limited to, alternative pesticides and application methods and other agricultural practices which can be used in lieu of any pesticides whose use may be restricted by the labeling program; examination of methods to improve coordination among the Environmental Protection Agency, Department of Agriculture, and Department of the Interior in administration of the labeling program; and analysis of the means of implementing the endangered species pesticides labeling program or alternatives to such a program, if any, to promote the conservation of endangered or threatened species and to minimize the impacts to persons engaged in agricultural food and fiber commodity production and other affected pesticide users and applicators. '(c) Report. - The Administrator of the Environmental Protection Agency in cooperation with the Secretary of Agriculture and the Secretary of the Interior shall submit a report within one year of the date of enactment of this Act (Oct. 7, 1988), presenting the results of the study conducted pursuant to subsection (b) of this section to the Committee on Merchant Marine and Fisheries and the Committee on Agriculture of the United States House of Representatives, and the Committee on Environment and Public Works and the Committee on Agriculture, Nutrition, and Forestry of the United States Senate.' -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 136, 136a-1, 136c, 136d, 136h, 136i-1, 136j, 136k, 136l, 136m, 136o, 136q, 136v, 136w-4 of this title. ------DocID 9187 Document 155 of 2641------ -CITE- 7 USC Sec. 136a-1 -EXPCITE- TITLE 7 CHAPTER 6 SUBCHAPTER II -HEAD- Sec. 136a-1. Reregistration of registered pesticides -STATUTE- (a) General rule The Administrator shall reregister, in accordance with this section, each registered pesticide containing any active ingredient contained in any pesticide first registered before November 1, 1984, except for any pesticide as to which the Administrator has determined, after November 1, 1984, and before the effective date of this section, that - (1) there are no outstanding data requirements; and (2) the requirements of section 136a(c)(5) of this title have been satisfied. (b) Reregistration phases Reregistrations of pesticides under this section shall be carried out in the following phases: (1) The first phase shall include the listing under subsection (c) of this section of the active ingredients of the pesticides that will be reregistered. (2) The second phase shall include the submission to the Administrator under subsection (d) of this section of notices by registrants respecting their intention to seek reregistration, identification by registrants of missing and inadequate data for such pesticides, and commitments by registrants to replace such missing or inadequate data within the applicable time period. (3) The third phase shall include submission to the Administrator by registrants of the information required under subsection (e) of this section. (4) The fourth phase shall include an independent, initial review by the Administrator under subsection (f) of this section of submissions under phases two and three, identification of outstanding data requirements, and the issuance, as necessary, of requests for additional data. (5) The fifth phase shall include the review by the Administrator under subsection (g) of this section of data submitted for reregistration and appropriate regulatory action by the Administrator. (c) Phase one (1) Priority for reregistration For purposes of the reregistration of the pesticides described in subsection (a) of this section, the Administrator shall list the active ingredients of pesticides and shall give priority to, among others, active ingredients (other than active ingredients for which registration standards have been issued before the effective date of this section) that - (A) are in use on or in food or feed and may result in postharvest residues; (B) may result in residues of potential toxicological concern in potable ground water, edible fish, or shellfish; (C) have been determined by the Administrator before the effective date of this section to have significant outstanding data requirements; or (D) are used on crops, including in greenhouses and nurseries, where worker exposure is most likely to occur. (2) Reregistration lists For purposes of reregistration under this section, the Administrator shall by order - (A) not later than 70 days after the effective date of this section, list pesticide active ingredients for which registration standards have been issued before such effective date; (B) not later than 4 months after such effective date, list the first 150 pesticide active ingredients, as determined under paragraph (1); (C) not later than 7 months after such effective date, list the second 150 pesticide active ingredients, as determined under paragraph (1); and (D) not later than 10 months after such effective date, list the remainder of the pesticide active ingredients, as determined under paragraph (1). Each list shall be published in the Federal Register. (3) Judicial review The content of a list issued by the Administrator under paragraph (2) shall not be subject to judicial review. (4) Notice to registrants On the publication of a list of pesticide active ingredients under paragraph (2), the Administrator shall send by certified mail to the registrants of the pesticides containing such active ingredients a notice of the time by which the registrants are to notify the Administrator under subsection (d) of this section whether the registrants intend to seek or not to seek reregistration of such pesticides. (d) Phase two (1) In general The registrant of a pesticide that contains an active ingredient listed under subparagraph (B), (C), or (D) of subsection (c)(2) of this section shall submit to the Administrator, within the time period prescribed by paragraph (4), the notice described in paragraph (2) and any information, commitment, or offer described in paragraph (3). (2) Notice of intent to seek or not to seek reregistration (A) The registrant of a pesticide containing an active ingredient listed under subparagraph (B), (C), or (D) of subsection (c)(2) of this section shall notify the Administrator by certified mail whether the registrant intends to seek or does not intend to seek reregistration of the pesticide. (B) If a registrant submits a notice under subparagraph (A) of an intention not to seek reregistration of a pesticide, the Administrator shall publish a notice in the Federal Register stating that such a notice has been submitted. (3) Missing or inadequate data Each registrant of a pesticide that contains an active ingredient listed under subparagraph (B), (C), or (D) of subsection (c)(2) of this section and for which the registrant submitted a notice under paragraph (2) of an intention to seek reregistration of such pesticide shall submit to the Administrator - (A) in accordance with regulations issued by the Administrator under section 136a of this title, an identification of - (i) all data that are required by regulation to support the registration of the pesticide with respect to such active ingredient; (ii) data that were submitted by the registrant previously in support of the registration of the pesticide that are inadequate to meet such regulations; and (iii) data identified under clause (i) that have not been submitted to the Administrator; and (B) either - (i) a commitment to replace the data identified under subparagraph (A)(ii) and submit the data identified under subparagraph (A)(iii) within the applicable time period prescribed by paragraph (4)(B); or (ii) an offer to share in the cost to be incurred by a person who has made a commitment under clause (i) to replace or submit the data and an offer to submit to arbitration as described by section 136a(c)(2)(B) of this title with regard to such cost sharing. For purposes of a submission by a registrant under subparagraph (A)(ii), data are inadequate if the data are derived from a study with respect to which the registrant is unable to make the certification prescribed by subsection (e)(1)(G) of this section that the registrant possesses or has access to the raw data used in or generated by such study. For purposes of a submission by a registrant under such subparagraph, data shall be considered to be inadequate if the data are derived from a study submitted before January 1, 1970, unless it is demonstrated to the satisfaction of the Administrator that such data should be considered to support the registration of the pesticide that is to be reregistered. (4) Time periods (A) A submission under paragraph (2) or (3) shall be made - (i) in the case of a pesticide containing an active ingredient listed under subsection (c)(2)(B) of this section, not later than 3 months after the date of publication of the listing of such active ingredient; (ii) in the case of a pesticide containing an active ingredient listed under subsection (c)(2)(C) of this section, not later than 3 months after the date of publication of the listing of such active ingredient; and (iii) in the case of a pesticide containing an active ingredient listed under subsection (c)(2)(D) of this section, not later than 3 months after the date of publication of the listing of such active ingredient. On application, the Administrator may extend a time period prescribed by this subparagraph if the Administrator determines that factors beyond the control of the registrant prevent the registrant from complying with such period. (B) A registrant shall submit data in accordance with a commitment entered into under paragraph (3)(B) within a reasonable period of time, as determined by the Administrator, but not more than 48 months after the date the registrant submitted the commitment. The Administrator, on application of a registrant, may extend the period prescribed by the preceding sentence by no more than 2 years if extraordinary circumstances beyond the control of the registrant prevent the registrant from submitting data within such prescribed period. (5) Cancellation and removal (A) If the registrant of a pesticide does not submit a notice under paragraph (2) or (3) within the time prescribed by paragraph (4)(A), the Administrator shall issue a notice of intent to cancel the registration of such registrant for such pesticide and shall publish the notice in the Federal Register and allow 60 days for the submission of comments on the notice. On expiration of such 60 days, the Administrator, by order and without a hearing, may cancel the registration or take such other action, including extension of applicable time periods, as may be necessary to enable reregistration of such pesticide by another person. (B)(i) If - (I) no registrant of a pesticide containing an active ingredient listed under subsection (c)(2) of this section notifies the Administrator under paragraph (2) that the registrant intends to seek reregistration of any pesticide containing that active ingredient; (II) no such registrant complies with paragraph (3)(A); or (III) no such registrant makes a commitment under paragraph (3)(B) to replace or submit all data described in clauses (ii) and (iii) of paragraph (3)(A); the Administrator shall publish in the Federal Register a notice of intent to remove the active ingredient from the list established under subsection (c)(2) of this section and a notice of intent to cancel the registrations of all pesticides containing such active ingredient and shall provide 60 days for comment on such notice. (ii) After the 60-day period has expired, the Administrator, by order, may cancel any such registration without hearing, except that the Administrator shall not cancel a registration under this subparagraph if - (I) during the comment period a person acquires the rights of the registrant in that registration; (II) during the comment period that person furnishes a notice of intent to reregister the pesticide in accordance with paragraph (2); and (III) not later than 120 days after the publication of the notice under this subparagraph, that person has complied with paragraph (3) and the fee prescribed by subsection (i)(1) of this section has been paid. (6) Suspensions and penalties The Administrator shall issue a notice of intent to suspend the registration of a pesticide in accordance with the procedures prescribed by section 136a(c)(2)(B)(iv) of this title if the Administrator determines that (A) progress is insufficient to ensure the submission of the data required for such pesticide under a commitment made under paragraph (3)(B) within the time period prescribed by paragraph (4)(B) or (B) the registrant has not submitted such data to the Administrator within such time period. (e) Phase three (1) Information about studies Each registrant of a pesticide that contains an active ingredient listed under subparagraph (B), (C), or (D) of subsection (c)(2) of this section who has submitted a notice under subsection (d)(2) of this section of an intent to seek the reregistration of such pesticide shall submit, in accordance with the guidelines issued under paragraph (4), to the Administrator - (A) a summary of each study concerning the active ingredient previously submitted by the registrant in support of the registration of a pesticide containing such active ingredient and considered by the registrant to be adequate to meet the requirements of section 136a of this title and the regulations issued under such section; (B) a summary of each study concerning the active ingredient previously submitted by the registrant in support of the registration of a pesticide containing such active ingredient that may not comply with the requirements of section 136a of this title and the regulations issued under such section but which the registrant asserts should be deemed to comply with such requirements and regulations; (C) a reformat of the data from each study summarized under subparagraph (A) or (B) by the registrant concerning chronic dosing, oncogenicity, reproductive effects, mutagenicity, neurotoxicity, teratogenicity, or residue chemistry of the active ingredient that were submitted to the Administrator before January 1, 1982; (D) where data described in subparagraph (C) are not required for the active ingredient by regulations issued under section 136a of this title, a reformat of acute and subchronic dosing data submitted by the registrant to the Administrator before January 1, 1982, that the registrant considers to be adequate to meet the requirements of section 136a of this title and the regulations issued under such section; (E) an identification of data that are required to be submitted to the Administrator under section 136d(a)(2) of this title, indicating an adverse effect of the pesticide; (F) an identification of any other information available that in the view of the registrant supports the registration; (G) a certification that the registrant or the Administrator possesses or has access to the raw data used in or generated by the studies that the registrant summarized under subparagraph (A) or (B); (H) either - (i) a commitment to submit data to fill each outstanding data requirement identified by the registrant; or (ii) an offer to share in the cost of developing such data to be incurred by a person who has made a commitment under clause (i) to submit such data, and an offer to submit to arbitration as described by section 136a(c)(2)(B) of this title with regard to such cost sharing; and (I) evidence of compliance with section 136a(c)(1)(D)(ii) of this title and regulations issued thereunder with regard to previously submitted data as if the registrant were now seeking the original registration of the pesticide. A registrant who submits a certification under subparagraph (G) that is false shall be considered to have violated this subchapter and shall be subject to the penalties prescribed by section 136l of this title. (2) Time periods (A) The information required by paragraph (1) shall be submitted to the Administrator - (i) in the case of a pesticide containing an active ingredient listed under subsection (c)(2)(B) of this section, not later than 12 months after the date of publication of the listing of such active ingredient; (ii) in the case of a pesticide containing an active ingredient listed under subsection (c)(2)(C) of this section, not later than 12 months after the date of publication of the listing of such active ingredient; and (iii) in the case of a pesticide containing an active ingredient listed under subsection (c)(2)(D) of this section, not later than 12 months after the date of publication of the listing of such active ingredient. (B) A registrant shall submit data in accordance with a commitment entered into under paragraph (1)(H) within a reasonable period of time, as determined by the Administrator, but not more than 48 months after the date the registrant submitted the commitment under such paragraph. The Administrator, on application of a registrant, may extend the period prescribed by the preceding sentence by no more than 2 years if extraordinary circumstances beyond the control of the registrant prevent the registrant from submitting data within such prescribed period. (3) Cancellation (A) If the registrant of a pesticide fails to submit the information required by paragraph (1) within the time prescribed by paragraph (2), the Administrator, by order and without hearing, shall cancel the registration of such pesticide. (B)(i) If the registrant of a pesticide submits the information required by paragraph (1) within the time prescribed by paragraph (2) and such information does not conform to the guidelines for submissions established by the Administrator, the Administrator shall determine whether the registrant made a good faith attempt to conform its submission to such guidelines. (ii) If the Administrator determines that the registrant made a good faith attempt to conform its submission to such guidelines, the Administrator shall provide the registrant a reasonable period of time to make any necessary changes or corrections. (iii)(I) If the Administrator determines that the registrant did not make a good faith attempt to conform its submission to such guidelines, the Administrator may issue a notice of intent to cancel the registration. Such a notice shall be sent to the registrant by certified mail. (II) The registration shall be canceled without a hearing or further notice at the end of 30 days after receipt by the registrant of the notice unless during that time a request for a hearing is made by the registrant. (III) If a hearing is requested, a hearing shall be conducted under section 136d(d) of this title, except that the only matter for resolution at the hearing shall be whether the registrant made a good faith attempt to conform its submission to such guidelines. The hearing shall be held and a determination made within 75 days after receipt of a request for hearing. (4) Guidelines (A) Not later than 1 year after the effective date of this section, the Administrator, by order, shall issue guidelines to be followed by registrants in - (i) summarizing studies; (ii) reformatting studies; (iii) identifying adverse information; and (iv) identifying studies that have been submitted previously that may not meet the requirements of section 136a of this title or regulations issued under such section, under paragraph (1). (B) Guidelines issued under subparagraph (A) shall not be subject to judicial review. (5) Monitoring The Administrator shall monitor the progress of registrants in acquiring and submitting the data required under paragraph (1). (f) Phase four (1) Independent review and identification of outstanding data requirements (A) The Administrator shall review the submissions of all registrants of pesticides containing a particular active ingredient under subsections (d)(3) and (e)(1) of this section to determine if such submissions identified all the data that are missing or inadequate for such active ingredient. To assist the review of the Administrator under this subparagraph, the Administrator may require a registrant seeking reregistration to submit complete copies of studies summarized under subsection (e)(1) of this section. (B) The Administrator shall independently identify and publish in the Federal Register the outstanding data requirements for each active ingredient that is listed under subparagraph (B), (C), or (D) of subsection (c)(2) of this section and that is contained in a pesticide to be reregistered under this section. The Administrator, at the same time, shall issue a notice under section 136a(c)(2)(B) of this title for the submission of the additional data that are required to meet such requirements. (2) Time periods (A) The Administrator shall take the action required by paragraph (1) - (i) in the case of a pesticide containing an active ingredient listed under subsection (c)(2)(B) of this section, not later than 18 months after the date of the listing of such active ingredient; (ii) in the case of a pesticide containing an active ingredient listed under subsection (c)(2)(C) of this section, not later than 24 months after the date of the listing of such active ingredient; and (iii) in the case of a pesticide containing an active ingredient listed under subsection (c)(2)(D) of this section, not later than 33 months after the date of the listing of such active ingredient. (B) If the Administrator issues a notice to a registrant under paragraph (1)(B) for the submission of additional data, the registrant shall submit such data within a reasonable period of time, as determined by the Administrator, but not to exceed 48 months after the issuance of such notice. The Administrator, on application of a registrant, may extend the period prescribed by the preceding sentence by no more than 2 years if extraordinary circumstances beyond the control of the registrant prevent the registrant from submitting data within such prescribed period. (3) Suspensions and penalties The Administrator shall issue a notice of intent to suspend the registration of a pesticide in accordance with the procedures prescribed by section 136a(c)(2)(B)(iv) of this title if the Administrator determines that (A) tests necessary to fill an outstanding data requirement for such pesticide have not been initiated within 1 year after the issuance of a notice under paragraph (1)(B), or (B) progress is insufficient to ensure submission of the data referred to in clause (A) within the time period prescribed by paragraph (2)(B) or the required data have not been submitted to the Administrator within such time period. (g) Phase five (1) Data review The Administrator shall conduct a thorough examination of all data submitted under this section concerning an active ingredient listed under subsection (c)(2) of this section and of all other available data found by the Administrator to be relevant. (2) Reregistration and other actions (A) Within 1 year after the submission of all data concerning an active ingredient of a pesticide under subsection (f) of this section, the Administrator shall determine whether pesticides containing such active ingredient are eligible for reregistration. For extraordinary circumstances, the Administrator may extend such period for not more than 1 additional year. (B) Before reregistering a pesticide, the Administrator shall obtain any needed product-specific data regarding the pesticide by use of section 136a(c)(2)(B) of this title and shall review such data within 90 days after its submission. The Administrator shall require that data under this subparagraph be submitted to the Administrator not later than 8 months after a determination of eligibility under subparagraph (A) has been made for each active ingredient of the pesticide, unless the Administrator determines that a longer period is required for the generation of the data. (C) After conducting the review required by paragraph (1) for each active ingredient of a pesticide and the review required by subparagraph (B) of this paragraph, the Administrator shall determine whether to reregister a pesticide by determining whether such pesticide meets the requirements of section 136a(c)(5) of this title. If the Administrator determines that a pesticide is eligible to be reregistered, the Administrator shall reregister such pesticide within 6 months after the submission of the data concerning such pesticide under subparagraph (B). (D) If after conducting a review under paragraph (1) or subparagraph (B) of this paragraph the Administrator determines that a pesticide should not be reregistered, the Administrator shall take appropriate regulatory action. (h) Compensation of data submitter If data that are submitted by a registrant under subsection (d), (e), (f), or (g) of this section are used to support the application of another person under section 136a of this title, the registrant who submitted such data shall be entitled to compensation for the use of such data as prescribed by section 136a(c)(1)(D) of this title. In determining the amount of such compensation, the fees paid by the registrant under this section shall be taken into account. (i) Fees (1) Initial fee for food or feed use pesticide active ingredients The registrants of pesticides that contain an active ingredient that is listed under subparagraph (B), (C), or (D) of subsection (c)(2) of this section and that is an active ingredient of any pesticide registered for a major food or feed use shall collectively pay a fee of $50,000 on submission of information under paragraphs (2) and (3) of subsection (d) of this section for such ingredient. (2) Final fee for food or feed use pesticide active ingredients (A) The registrants of pesticides that contain an active ingredient that is listed under subparagraph (B), (C), or (D) of subsection (c)(2) of this section and that is an active ingredient of any pesticide registered for a major food or feed use shall collectively pay a fee of $100,000 - (i) on submission of information for such ingredient under subsection (e)(1) of this section if data are reformatted under subsection (e)(1)(C) of this section; or (ii) on submission of data for such ingredient under subsection (e)(2)(B) of this section if data are not reformatted under subsection (e)(1)(C) of this section. (B) The registrants of pesticides that contain an active ingredient that is listed under subsection (c)(2)(A) of this section and that is an active ingredient of any pesticide registered for a major food or feed use shall collectively pay a fee of $150,000 at such time as the Administrator shall prescribe. (3) Fees for other pesticide active ingredients (A) The registrants of pesticides that contain an active ingredient that is listed under subparagraph (B), (C), or (D) of subsection (c)(2) of this section and that is not an active ingredient of any pesticide registered for a major food or feed use shall collectively pay fees in amounts determined by the Administrator. Such fees may not be less than one-half of, nor greater than, the fees required by paragraphs (1) and (2). A registrant shall pay such fees at the times corresponding to the times fees prescribed by paragraphs (1) and (2) are to be paid. (B) The registrants of pesticides that contain an active ingredient that is listed under subsection (c)(2)(A) of this section and that is not an active ingredient of any pesticide that is registered for a major food or feed use shall collectively pay a fee of not more than $100,000 and not less than $50,000 at such time as the Administrator shall prescribe. (4) Reduction or waiver of fees for minor use and other pesticides (A) An active ingredient that is contained only in pesticides that are registered solely for agricultural or nonagricultural minor uses, or a pesticide the value or volume of use of which is small, shall be exempt from the fees prescribed by paragraph (3). (B) An antimicrobial active ingredient, the production level of which does not exceed 1,000,000 pounds per year, shall be exempt from the fees prescribed by paragraph (3). For purposes of this subparagraph, the term 'antimicrobial active ingredient' means any active ingredient that is contained only in pesticides that are not registered for any food or feed use and that are - (i) sanitizers intended to reduce the number of living bacteria or viable virus particles on inanimate surface or in water or air; (ii) bacteriostats intended to inhibit the growth of bacteria in the presence of moisture; (iii) disinfectants intended to destroy or irreversibly inactivate bacteria, fungi, or viruses on surfaces or inanimate objects; (iv) sterilizers intended to destroy viruses and all living bacteria, fungi, and their spores on inanimate surfaces; or (v) fungicides or fungistats. (C)(i) Notwithstanding any other provision of this subsection, in the case of a small business registrant of a pesticide, the registrant shall pay a fee for the reregistration of each active ingredient of the pesticide that does not exceed an amount determined in accordance with this subparagraph. (ii) If during the 3-year period prior to reregistration the average annual gross revenue of the registrant from pesticides containing such active ingredient is - (I) less than $5,000,000, the registrant shall pay 0.5 percent of such revenue; (II) $5,000,000 or more but less than $10,000,000, the registrant shall pay 1 percent of such revenue; or (III) $10,000,000 or more, the registrant shall pay 1.5 percent of such revenue, but not more than $150,000. (iii) For the purpose of this subparagraph, a small business registrant is a corporation, partnership, or unincorporated business that - (I) has 150 or fewer employees; and (II) during the 3-year period prior to reregistration, had an average annual gross revenue from chemicals that did not exceed $40,000,000. (5) Maintenance fee (A) Subject to other provisions of this paragraph, each registrant of a pesticide shall pay an annual fee by March 1 of each year of - (i) in the case of a registrant holding not more than 50 pesticide registrations, $425 for each registration; and (ii) in the case of a registrant holding more than 50 pesticide registrations - (I) $425 for each registration up to 50 registrations; and (II) $100 for each registration over 50 registrations, except that no fee shall be charged for more than 200 registrations held by any registrant. In the case of a pesticide that is registered for a minor agricultural use, the Administrator may reduce or waive the payment of the fee imposed under this subparagraph if the Administrator determines that the fee would significantly reduce the availability of the pesticide for the use. (B) The amount of each fee prescribed under subparagraph (A) shall be adjusted by the Administrator to a level that will result in the collection under this paragraph of, to the extent practicable, an aggregate amount of $14,000,000 each fiscal year. (C)(i) The maximum annual fee payable by a registrant under clause (i) of subparagraph (A) (as adjusted under subparagraph (B)) shall be $20,000. (ii) The maximum annual fee payable by a registrant under clause (ii) of subparagraph (A) (as adjusted under subparagraph (B)) shall be $35,000. (D) If any fee prescribed by this paragraph with respect to the registration of a pesticide is not paid by a registrant by the time prescribed, the Administrator, by order and without hearing, may cancel the registration. (E) The authority provided under this paragraph shall terminate on September 30, 1997. (6) Other fees During the period beginning on October 25, 1988, and ending on September 30, 1997, the Administrator may not levy any other fees for the registration of a pesticide under this subchapter except as provided in paragraphs (1) through (5). (7) Apportionment (A) If two or more registrants are required to pay any fee prescribed by paragraph (1), (2), or (3) with respect to a particular active ingredient, the fees for such active ingredient shall be apportioned among such registrants on the basis of the market share in United States sales of the active ingredient for the 3 calendar years preceding the date of payment of such fee, except that - (i) small business registrants that produce the active ingredient shall pay fees in accordance with paragraph (4)(C); and (ii) registrants who have no market share but who choose to reregister a pesticide containing such active ingredient shall pay the lesser of - (I) 15 percent of the reregistration fee; or (II) a proportionate amount of such fee based on the lowest percentage market share held by any registrant active in the marketplace. In no event shall registrants who have no market share but who choose to reregister a pesticide containing such active ingredient collectively pay more than 25 percent of the total active ingredient reregistration fee. (B) The Administrator, by order, may require any registrant to submit such reports as the Administrator determines to be necessary to allow the Administrator to determine and apportion fees under this subsection or to determine the registrant's eligibility for a reduction or waiver of a fee. (C) If any such report is not submitted by a registrant after receiving notice of such report requirement, or if any fee prescribed by this subsection (other than paragraph (5)) for an active ingredient is not paid by a registrant to the Administrator by the time prescribed under this subsection, the Administrator, by order and without hearing, may cancel each registration held by such registrant of a pesticide containing the active ingredient with respect to which the fee is imposed. The Administrator shall reapportion the fee among the remaining registrants and notify the registrants that the registrants are required to pay to the Administrator any unpaid balance of the fee within 30 days after receipt of such notice. (j) Exemption of certain registrants The requirements of subsections (d), (e), (f), and (i) of this section (other than subsection (i)(5) of this section) regarding data concerning an active ingredient and fees for review of such data shall not apply to any person who is the registrant of a pesticide to the extent that, under section 136a(c)(2)(D) of this title, the person would not be required to submit or cite such data to obtain an initial registration of such pesticide. (k) Reregistration and expedited processing fund (1) Establishment There shall be established in the Treasury of the United States a reregistration and expedited processing fund. (2) Source and use All fees collected by the Administrator under subsection (i) of this section shall be deposited into the fund and shall be available to the Administrator, without fiscal year limitation, to carry out reregistration and expedited processing of similar applications. (3) Expedited processing of similar applications (A) The Administrator shall use each fiscal year not more than $2,000,000 of the amounts in the fund to obtain sufficient personnel and resources to assure the expedited processing and review of any application that - (i) proposes the initial or amended registration of an end-use pesticide that, if registered as proposed, would be identical or substantially similar in composition and labeling to a currently-registered pesticide identified in the application, or that would differ in composition and labeling from any such currently-registered pesticide only in ways that would not significantly increase the risk of unreasonable adverse effects on the environment; or (ii) proposes an amendment to the registration of a registered pesticide that does not require scientific review of data. (B) Any amounts made available under subparagraph (A) shall be used to obtain sufficient personnel and resources to carry out the activities described in such subparagraph that are in addition to the personnel and resources available to carry out such activities on October 25, 1988. (4) Unused funds Money in the fund not currently needed to carry out this section shall be - (A) maintained on hand or on deposit; (B) invested in obligations of the United States or guaranteed thereby; or (C) invested in obligations, participations, or other instruments that are lawful investments for fiduciary, trust, or public funds. (5) Accounting The Administrator shall - (A) provide an annual accounting of the fees collected and disbursed from the fund; and (B) take all steps necessary to ensure that expenditures from such fund are used only to carry out this section. (l) Judicial review Any failure of the Administrator to take any action required by this section shall be subject to judicial review under the procedures prescribed by section 136n(b) of this title. -SOURCE- (June 25, 1947, ch. 125, Sec. 4, formerly Sec. 3A, as added and renumbered Sec. 4, Oct. 25, 1988, Pub. L. 100-532, title I, Sec. 102(a), title VIII, Sec. 801(q)(2)(A), 102 Stat. 2655, 2683; amended Nov. 28, 1990, Pub. L. 101-624, title XIV, Sec. 1493, 104 Stat. 3628.) -REFTEXT- REFERENCES IN TEXT The effective date of this section, referred to in subsecs. (a), (c)(1), (2), and (e)(4)(A), is 60 days after Oct. 25, 1988. See Effective Date note below. -MISC2- PRIOR PROVISIONS A prior section 4 of act June 25, 1947, which was classified to section 136b of this title was transferred to section 11(a)-(c) of act June 25, 1947, which is classified to section 136i(a)-(c) of this title. Another prior section 4 of act June 25, 1947, was classified to section 135b of this title prior to amendment of act June 25, 1947, by Pub. L. 92-516. AMENDMENTS 1990 - Subsec. (i)(5)(A). Pub. L. 101-624 inserted sentence at end relating to reduction or waiver of fee where pesticide is registered for minor agricultural use. EFFECTIVE DATE Section effective on expiration of 60 days after Oct. 25, 1988, see section 901 of Pub. L. 100-532, set out as an Effective Date of 1988 Amendment note under section 136 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 136d, 136j of this title. ------DocID 9188 Document 156 of 2641------ -CITE- 7 USC Sec. 136b -EXPCITE- TITLE 7 CHAPTER 6 SUBCHAPTER II -HEAD- Sec. 136b. Transferred -COD- CODIFICATION Section, acts June 25, 1947, ch. 125, Sec. 4, as added Oct. 21, 1972, Pub. L. 92-516, Sec. 2, 86 Stat. 983, and amended Nov. 28, 1975, Pub. L. 94-140, Sec. 5, 11, 89 Stat. 753, 754; Sept. 30, 1978, Pub. L. 95-396, Sec. 9, 92 Stat. 827; Oct. 25, 1988, Pub. L. 100-532, title VIII, Sec. 801(c), (q)(1)(A), (B), 102 Stat. 2681, 2683, which related to use of restricted use pesticides and certification of applicators, was transferred to subsecs. (a) to (c) of section 11 of act June 25, 1947, by section 801(q)(1)(A) of Pub. L. 100-532 and is classified to section 136i(a) to (c) of this title. ------DocID 9189 Document 157 of 2641------ -CITE- 7 USC Sec. 136c -EXPCITE- TITLE 7 CHAPTER 6 SUBCHAPTER II -HEAD- Sec. 136c. Experimental use permits -STATUTE- (a) Issuance Any person may apply to the Administrator for an experimental use permit for a pesticide. The Administrator shall review the application. After completion of the review, but not later than one hundred and twenty days after receipt of the application and all required supporting data, the Administrator shall either issue the permit or notify the applicant of the Administrator's determination not to issue the permit and the reasons therefor. The applicant may correct the application or request a waiver of the conditions for such permit within thirty days of receipt by the applicant of such notification. The Administrator may issue an experimental use permit only if the Administrator determines that the applicant needs such permit in order to accumulate information necessary to register a pesticide under section 136a of this title. An application for an experimental use permit may be filed at any time. (b) Temporary tolerance level If the Administrator determines that the use of a pesticide may reasonably be expected to result in any residue on or in food or feed, he may establish a temporary tolerance level for the residue of the pesticide before issuing the experimental use permit. (c) Use under permit Use of a pesticide under an experimental use permit shall be under the supervision of the Administrator, and shall be subject to such terms and conditions and be for such period of time as the Administrator may prescribe in the permit. (d) Studies When any experimental use permit is issued for a pesticide containing any chemical or combination of chemicals which has not been included in any previously registered pesticide, the Administrator may specify that studies be conducted to detect whether the use of the pesticide under the permit may cause unreasonable adverse effects on the environment. All results of such studies shall be reported to the Administrator before such pesticide may be registered under section 136a of this title. (e) Revocation The Administrator may revoke any experimental use permit, at any time, if he finds that its terms or conditions are being violated, or that its terms and conditions are inadequate to avoid unreasonable adverse effects on the environment. (f) State issuance of permits Notwithstanding the foregoing provisions of this section, the Administrator shall, under such terms and conditions as he may by regulations prescribe, authorize any State to issue an experimental use permit for a pesticide. All provisions of section 136i of this title relating to State plans shall apply with equal force to a State plan for the issuance of experimental use permits under this section. (g) Exemption for agricultural research agencies Notwithstanding the foregoing provisions of this section, the Administrator may issue an experimental use permit for a pesticide to any public or private agricultural research agency or educational institution which applies for such permit. Each permit shall not exceed more than a one-year period or such other specific time as the Administrator may prescribe. Such permit shall be issued under such terms and conditions restricting the use of the pesticide as the Administrator may require. Such pesticide may be used only by such research agency or educational institution for purposes of experimentation. -SOURCE- (June 25, 1947, ch. 125, Sec. 5, as added Oct. 21, 1972, Pub. L. 92-516, Sec. 2, 86 Stat. 983, and amended Nov. 28, 1975, Pub. L. 94-140, Sec. 10, 89 Stat. 754; Sept. 30, 1978, Pub. L. 95-396, Sec. 10, 92 Stat. 828; Oct. 25, 1988, Pub. L. 100-532, title VIII, Sec. 801(d), (q)(1)(D), 102 Stat. 2681, 2683.) -MISC1- PRIOR PROVISIONS A prior section 5 of act June 25, 1947, was classified to section 135c of this title prior to amendment of act June 25, 1947, by Pub. L. 92-516. AMENDMENTS 1988 - Subsec. (f). Pub. L. 100-532, Sec. 801(q)(1)(D), substituted '136i' for '136b'. Subsec. (g). Pub. L. 100-532, Sec. 801(d), substituted 'require. Such pesticide' for 'require: Provided, That such pesticide'. 1978 - Subsec. (a). Pub. L. 95-396, Sec. 10(1), provided for review of application, issuance or nonissuance of experimental use permit within prescribed period including reasons for denial, correction of application, and waiver of conditions and substituted provision for filing an application for experimental use permit at any time for prior provision for filing at the time of or before or after an application for registration is filed. Subsec. (f). Pub. L. 95-396, Sec. 10(2), substituted in first sentence 'shall' for 'may' where first appearing. 1975 - Subsec. (g). Pub. L. 94-140 added subsec. (g). EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100-532 effective on expiration of 60 days after Oct. 25, 1988, see section 901 of Pub. L. 100-532, set out as a note under section 136 of this title. EFFECTIVE DATE For effective date of section, see section 4 of Pub. L. 92-516, set out as a note under section 136 of this title. -SECREF- SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 136, 136a, 136j of this title. ------DocID 9190 Document 158 of 2641------ -CITE- 7 USC Sec. 136d -EXPCITE- TITLE 7 CHAPTER 6 SUBCHAPTER II -HEAD- Sec. 136d. Administrative review; suspension -STATUTE- (a) Cancellation after five years (1) Procedure The Administrator shall cancel the registration of any pesticide at the end of the five-year period which begins on the date of its registration (or at the end of any five year period thereafter) unless the registrant, or other interested person with the concurrence of the registrant, before the end of such period, requests in accordance with regulations prescribed by the Administrator that the registration be continued in effect. The Administrator may permit the continued sale and use of existing stocks of a pesticide whose registration is canceled under this subsection or subsection (b) of this section to such extent, under such conditions, and for such uses as he may specify if he determines that such sale or use is not inconsistent with the purposes of this subchapter and will not have unreasonable adverse effects on the environment. The Administrator shall publish in the Federal Register, at least 30 days prior to the expiration of such five-year period, notice that the registration will be canceled if the registrant or other interested person with the concurrence of the registrant does not request that the registration be continued in effect. (2) Information If at any time after the registration of a pesticide the registrant has additional factual information regarding unreasonable adverse effects on the environment of the pesticide, he shall submit such information to the Administrator. (b) Cancellation and change in classification If it appears to the Administrator that a pesticide or its labeling or other material required to be submitted does not comply with the provisions of this subchapter or, when used in accordance with widespread and commonly recognized practice, generally causes unreasonable adverse effects on the environment, the Administrator may issue a notice of his intent either - (1) to cancel its registration or to change its classification together with the reasons (including the factual basis) for his action, or (2) to hold a hearing to determine whether or not its registration should be canceled or its classification changed. Such notice shall be sent to the registrant and made public. In determining whether to issue any such notice, the Administrator shall inclu