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7 U.S.C. § 242 — Powers of Secretary
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The Secretary shall have exclusive power, jurisdiction, and authority, to the extent that this chapter applies, with respect to—
(1) each warehouse operator licensed under this chapter;
(2) each person that has obtained an approval to engage in an activity under this chapter; and
(3) each person claiming an interest in an agricultural product by means of a document or receipt subject to this chapter.
**(b) Covered agricultural products** 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.
**(c) Investigations** The Secretary may investigate the storing, warehousing, classifying according to grade and otherwise, weighing, and certifying of agricultural products.
**(d) Inspections** 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.
**(e) Suitability for storage** 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.
**(f) Classification** 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.
**(g) Warehouse operator’s duties** Subject to the other provisions of this chapter, the Secretary may prescribe the duties of a warehouse operator op
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**(a) In general** The Secretary shall have exclusive power, jurisdiction, and authority, to the extent that this chapter applies, with respect to—
(1) each warehouse operator licensed under this chapter;
(2) each person that has obtained an approval to engage in an activity under this chapter; and
(3) each person claiming an interest in an agricultural product by means of a document or receipt subject to this chapter.
**(b) Covered agricultural products** 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.
**(c) Investigations** The Secretary may investigate the storing, warehousing, classifying according to grade and otherwise, weighing, and certifying of agricultural products.
**(d) Inspections** 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.
**(e) Suitability for storage** 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.
**(f) Classification** 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.
**(g) Warehouse operator’s duties** 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.
**(h) Systems for electronic conveyance**
(1) **Regulations governing electronic systems** — 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.
(2) **Limitations** — The Secretary shall not have the authority under this chapter to establish—
(A) one or more central filing systems for the filing of financing statements or the filing of the notice of financing statements; or
(B) rules to determine security interests of persons affected by this chapter.
**(i) Examination and audits** 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—
(1) any person that is engaged in the business of storing an agricultural product that is subject to this chapter;
(2) any State agency that regulates the storage of an agricultural product by such a person; or
(3) any commodity exchange with regulatory authority over the storage of agricultural products that are subject to this chapter.
**(j) Licenses for operation of warehouses** The Secretary may issue to any warehouse operator a license for the operation of a warehouse in accordance with this chapter if—
(1) 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
(2) the warehouse operator agrees, as a condition of the license, to comply with this chapter (including regulations promulgated under this chapter).
**(k) Licensing of other persons**
(1) **In general** — 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—
(A) to inspect any agricultural product stored or handled in a warehouse subject to this chapter;
(B) to sample such an agricultural product;
(C) 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
(D) to weigh such an agricultural product and certify the weight of the agricultural product.
(2) **Condition** — 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).
**(l) Examination of books, records, papers, and accounts** 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—
(1) a warehouse operator operating a warehouse licensed under this chapter;
(2) a person operating a system for the electronic recording and transfer of receipts and other documents authorized by the Secretary; or
(3) any other person issuing receipts or electronic documents authorized by the Secretary under this chapter.
**(m) Cooperation with States** The Secretary may—
(1) 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
(2) enter into cooperative agreements with States to perform activities authorized under this chapter.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The Secretary shall assess persons covered by this chapter fees to cover the costs of administering this chapter.
**(b) Rates** The fees under this section shall be set at a rate determined by the Secretary.
**(c) Treatment of fees** All fees collected under this section shall be credited to the account that incurs the costs of administering this chapter and shall be available to the Secretary without further appropriation and without fiscal year limitation.
**(d) Interest** Funds collected under this section may be deposited in an interest-bearing account with a financial institution, and any interest earned on the account shall be credited under subsection (c).
**(e) Efficiencies and cost effectiveness**
(1) **In general** — The Secretary shall seek to minimize the fees established under this section by improving efficiencies and reducing costs, including the efficient use of personnel to the extent practicable and consistent with the effective implementation of this chapter.
(2) **Report** — The Secretary shall publish an annual report on the actions taken by the Secretary to comply with paragraph (1).
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Federal law — U.S. Code and appendices · legal_authorities
In this chapter:
(1) **Agricultural product** — The term “agricultural product” means an agricultural commodity, as determined by the Secretary, including a processed product of an agricultural commodity.
(2) **Approval** — The term “approval” means the consent provided by the Secretary for a person to engage in an activity authorized by this chapter.
(3) **Department** — The term “Department” means the Department of Agriculture.
(4) **Electronic document** — The term “electronic document” means a document that is generated, sent, received, or stored by electronic, optical, or similar means, including electronic data interchange, electronic mail, telegram, telex, or telecopy.
(5) **Electronic receipt** — The term “electronic receipt” means a receipt that is authorized by the Secretary to be issued or transmitted under this chapter in the form of an electronic document.
(6) **Holder** — The term “holder” means a person that has possession in fact or by operation of law of a receipt or any electronic document.
(7) **Person** — The term “person” means—
(A) a person (as defined in [section 1 of title 1](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title1-section1&num=0&edition=prelim));
(B) a State; and
(C) a political subdivision of a State.
(8) **Receipt** — The term “receipt” means a warehouse receipt issued in accordance with this chapter, including an electronic receipt.
(9) **Secretary** — The term “Secretary” means the Secretary of Agriculture.
(10) **Warehouse** — The term “warehouse” means a structure or other approved storage facility, as determined by the Secretary, in which any agricultural product may be stored or handled for the purposes of interstate or foreign commerce.
(11) **Warehouse operator** — The term “warehouse ope
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Federal law — U.S. Code and appendices · legal_authorities
If standards for the evaluation or determination of the quality or value of an agricultural product are not established under another Federal law, the Secretary may establish standards for the evaluation or determination of the quality or value of the agricultural product under this chapter.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** A warehouse operator may commingle agricultural products in a manner approved by the Secretary.
**(b) Liability** A warehouse operator shall be severally liable to each depositor or holder for the care and redelivery of the share of the depositor and holder of the commingled agricultural product to the same extent and under the same circumstances as if the agricultural products had been stored separately.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** After providing notice and an opportunity for a hearing in accordance with this section, the Secretary may suspend or revoke any license issued, or approval for an activity provided, under this chapter—
(1) for a material violation of, or failure to comply, with any provision of this chapter (including regulations promulgated under this chapter); or
(2) on the ground that unreasonable or exorbitant charges have been imposed for services rendered.
**(b) Temporary suspension** The Secretary may temporarily suspend a license or approval for an activity under this chapter prior to an opportunity for a hearing for any violation of, or failure to comply with, any provision of this chapter (including regulations promulgated under this chapter).
**(c) Authority to conduct hearings** The agency within the Department that is responsible for administering regulations promulgated under this chapter shall have exclusive authority to conduct any hearing required under this section.
**(d) Judicial review**
(1) **Jurisdiction** — A final administrative determination issued subsequent to a hearing may be reviewable only in a district court of the United States.
(2) **Procedure** — The review shall be conducted in accordance with the standards set forth in [section 706(2) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section706/2&num=0&edition=prelim).
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Federal law — U.S. Code and appendices · legal_authorities
There are authorized to be appropriated such sums as are necessary to carry out this chapter.
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Federal law — U.S. Code and appendices · legal_authorities
Page 357
TITLE 7—AGRICULTURE
§ 242
(10) Warehouse
The term ‘‘warehouse’’ means a structure or
other approved storage facility, as determined
by the Secretary, in which any agricultural
product may be stored or handled for the pur-
poses of interstate or foreign commerce.
(11) Warehouse operator
The term ‘‘warehouse operator’’ means a
person that is lawfully engaged in the business
of storing or handling agricultural products.
(Aug. 11, 1916, ch. 313, pt. C, § 2, as added Pub. L.
106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2061.)
Editorial Notes
CODIFICATION
This chapter constitutes part C of ‘‘An act making
appropriations for the Department of Agriculture for
the fiscal year ending June 13, 1917, and for other pur-
poses,’’ approved Aug. 11, 1916. Part A of act of Aug. 11,
1916, ch. 313, containing the ‘‘United States Cotton Fu-
tures Act’’ formerly classified to chapter 13 of Title 26,
Internal Revenue Code, was repealed by section 4 of act
Feb. 10, 1939, ch. 2, 53 Stat. 1. Part B of that act con-
tained the ‘‘United States Grain Standards Act’’ and
constitutes section 71 et seq. of this title.
PRIOR PROVISIONS
A prior section 241, act Aug. 11, 1916, ch. 313, pt. C, § 1,
39 Stat. 486, set forth short title, prior to the general
amendment of this chapter by Pub. L. 106–472.
A prior section 2 of act Aug. 11, 1916, ch. 313, pt. C,
was classified to section 242 of this title, prior to the
general amendment of this chapter by Pub. L. 106–472.
Statutory Notes and Related Subsidiaries
SHORT TITLE
Act Aug. 11, 1916, ch. 313, pt. C, § 1, as added by Pub.
L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2061, pro-
vided that: ‘‘This Act [enacting this chapter] may be
cited as the ‘United States Warehouse Act’.’’
EFFECTIVE DATE; REGULATIONS
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