7 U.S.C. § 242 — Powers of Secretary
submitted 110 years ago by Pub. L. 106-472 to r/title-7-AGRICULTURE · 839 words · no verdicts yet
The Secretary of Agriculture has full authority over warehouse operators and others licensed to store or certify farm products. The Secretary decides which products qualify, inspects warehouses, sets warehouse operators' duties, and can license inspectors, samplers, graders, and weighers. The Secretary can also audit records and cooperate with states.
This section gives the Secretary* of Agriculture broad power over the warehouse* licensing system for farm products.
(a) In general. The Secretary has exclusive power over three groups: warehouse operators licensed under this chapter, people approved to do licensed activities, and people who claim a right to a farm product through a covered receipt* or document.
(b) Covered agricultural products. After giving the public notice and a chance to comment, the Secretary decides which farm products can get a warehouse license.
(c) Investigations. The Secretary may investigate how farm products are stored, warehoused, graded, weighed, and certified.
(d) Inspections. The Secretary may inspect any licensed person* or warehouse, or any warehouse that has applied for a license.
(e) Suitability for storage. The Secretary may decide whether a warehouse is fit to properly store the products kept or planned to be kept there.
(f) Classification. The Secretary may sort warehouses into categories based on things like ownership, location, size, and condition, and based on what kind of license they hold or could hold.
(g) Warehouse operator's duties. The Secretary may set rules for how a warehouse operator* must care for and take responsibility for the products stored there.
(h) Systems for electronic conveyance.
(1) The Secretary may make rules for electronic systems that issue and transfer electronic receipts and other documents used for shipping, paying for, and financing farm products.
(2) Limits: the Secretary cannot create a central system for filing financing statements, and cannot make rules deciding who holds a security interest in the products.
(i) Examination and audits. If a person, state agency, or commodity exchange asks, the Secretary may examine or audit anyone storing a covered product, any state agency that regulates that storage, or any commodity exchange that regulates it.
(j) Licenses for operation of warehouses. The Secretary may license a warehouse operator if the warehouse is suitable for the products it stores, and the operator agrees to follow this chapter and its regulations.
(k) Licensing of other persons.
(1) If a person proves they are qualified, the Secretary may give them a federal license to inspect, sample, grade and certify the grade of, or weigh and certify the weight of, covered products.
(2) As a condition of that license, the person must agree to follow this chapter and its regulations.
(l) Examination of books, records, papers, and accounts. Using Department* staff or agents, the Secretary may examine and audit the records of licensed warehouse operators, people who run electronic receipt* systems approved by the Secretary, and anyone else issuing receipts or electronic documents the Secretary has authorized.
(m) Cooperation with States. The Secretary may work with state officials who enforce state warehouse laws, and may enter into cooperative agreements with states to carry out activities under this chapter.
The Secretary* shall have exclusive power, jurisdiction, and authority, to the extent that this chapter applies, with respect to—
each warehouse operator* licensed under this chapter;
each person* that has obtained an approval* to engage in an activity under this chapter; and
each person claiming an interest in an agricultural product* by means of a document or receipt* subject to this chapter.
The Secretary shall specify, after an opportunity for notice and comment, those agricultural products for which a warehouse* license may be issued under this chapter.
The Secretary may investigate the storing, warehousing, classifying according to grade and otherwise, weighing, and certifying of agricultural products.
The Secretary may inspect or cause to be inspected any person or warehouse licensed under this chapter and any warehouse for which a license is applied for under this chapter.
The Secretary may determine whether a licensed warehouse, or a warehouse for which a license is applied for under this chapter, is suitable for the proper storage of the agricultural product or products stored or proposed for storage in the warehouse.
The Secretary may classify a licensed warehouse, or a warehouse for which a license is applied for under this chapter, in accordance with the ownership, location, surroundings, capacity, conditions, and other qualities of the warehouse and as to the kinds of licenses issued or that may be issued for the warehouse under this chapter.
Subject to the other provisions of this chapter, the Secretary may prescribe the duties of a warehouse operator operating a warehouse licensed under this chapter with respect to the warehouse operator’s care of and responsibility for agricultural products stored or handled by the warehouse operator.
Except as provided in paragraph (2), the Secretary may promulgate regulations governing one or more electronic systems under which electronic receipts may be issued and transferred and other electronic documents relating to the shipment, payment, and financing of the sale of agricultural products may be issued or transferred.
The Secretary shall not have the authority under this chapter to establish—
one or more central filing systems for the filing of financing statements or the filing of the notice of financing statements; or
rules to determine security interests of persons affected by this chapter.
In addition to the authority provided under subsection (l), on request of the person, State agency, or commodity exchange, the Secretary may conduct an examination, audit, or similar activity with respect to—
any person that is engaged in the business of storing an agricultural product that is subject to this chapter;
any State agency that regulates the storage of an agricultural product by such a person; or
any commodity exchange with regulatory authority over the storage of agricultural products that are subject to this chapter.
The Secretary may issue to any warehouse operator a license for the operation of a warehouse in accordance with this chapter if—
the Secretary determines that the warehouse is suitable for the proper storage of the agricultural product or products stored or proposed for storage in the warehouse; and
the warehouse operator agrees, as a condition of the license, to comply with this chapter (including regulations promulgated under this chapter).
On presentation of satisfactory proof of competency to carry out the activities described in this paragraph, the Secretary may issue to any person a Federal license—
to inspect any agricultural product stored or handled in a warehouse subject to this chapter;
to sample such an agricultural product;
to classify such an agricultural product according to condition, grade, or other class and certify the condition, grade, or other class of the agricultural product; or
to weigh such an agricultural product and certify the weight of the agricultural product.
As a condition of a license issued under paragraph (1), the licensee shall agree to comply with this chapter (including regulations promulgated under this chapter).
The Secretary may examine and audit, using designated officers, employees, or agents of the Department*, all books, records, papers, and accounts relating to activities subject to this chapter of—
a warehouse operator operating a warehouse licensed under this chapter;
a person operating a system for the electronic recording and transfer of receipts and other documents authorized by the Secretary; or
any other person issuing receipts or electronic documents authorized by the Secretary under this chapter.
The Secretary may—
cooperate with officers and employees of a State who administer or enforce State laws relating to warehouses, warehouse operators, weighers, graders, inspectors, samplers, or classifiers; and
enter into cooperative agreements with States to perform activities authorized under this chapter.
Source credit: (Aug. 11, 1916, ch. 313, pt. C, § 3, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2062.)
- 1916Enacted · Pub. L. 106-472 · 114 Stat. 2062
A history note hasn’t been published yet. The record shows enactment by Pub. L. 106-472 on 1916-08-11.
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