7 U.S.C. § 86 — Refusal of inspection and weighing services;

Page 184 TITLE 7—AGRICULTURE § 85 Statutory Notes and Related Subsidiaries 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 Amendment by Pub. L. 94–582 effective 30 days after Oct. 21, 1976, see section 27 of Pub. L. 94–582, as amend- ed, 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. § 85. Suspension, revocation, and refusal to renew licenses; hearing; grounds; temporary suspension The Secretary may refuse to renew, or may suspend or revoke, any license issued under this chapter whenever, after the licensee has been af- forded an opportunity for a hearing, the Sec- retary shall determine that such licensee is in- competent, or has inspected or weighed or super- vised 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 of- ficial 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 the 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 the licensee by the Secretary under this chap- ter. The Secretary may, without first affording the licensee an opportunity for a hearing, sus- pend any license temporarily pending final de- termination whenever the Secretary deems such action to be in the best interests of the official inspection system under this chapter. The Sec- retary may summarily revoke any license when- ever the licensee has been convicted of any of- fense 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. (Aug. 11, 1916, ch. 313, pt. B, § 9, 39 Stat. 485; Aug. 1, 1956, ch. 812, 70 Stat. 780; Pub. L. 90–487, § 1, Aug. 15, 1968, 82 Stat. 765; Pub. L. 94–582, § 11, Oct. 21, 1976, 90 Stat. 2879; Pub. L. 103–156, § 12(h), Nov. 24, 1993, 107 Stat. 1528; Pub. L. 103–354, title II, § 293(a)(7), Oct. 13, 1994, 108 Stat. 3237.) Editorial Notes AMENDMENTS 1994—Pub. L. 103–354 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’ wherever appearing. 1993—Pub. L. 103–156, which directed amendment of ‘‘Section 9’’ by substituting ‘‘or has used the license’’ for ‘‘or has used his license’’ and ‘‘instructions issued to the licensee’’ for ‘‘instructions issued to him’’, with- out specifying the name of the Act being amended, was executed to this section, which is section 9 of the United States Grain Standards Act, to reflect the prob- able intent of Congress. 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 li- censes based on conviction of prescribed offenses. 1968—Pub. L. 90–487 substituted provisions author- izing 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 per- sons who knowingly or willfully cause or attempt to cause the issuance of a false grade certificate by decep- tive loading, handling, or sampling of grain, or any other means. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–582 effective 30 days after Oct. 21, 1976, see section 27 of Pub. L. 94–582, as amend- ed, 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. § 86. Refusal of inspection and weighing services; civil penalties (a) Grounds for refusal of services The Secretary may (for such period, or indefi- nitely, as the Secretary deems necessary to ef- fectuate the purposes of this chapter) refuse to provide official inspection or the services re- lated 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 the Secretary determines (1) that the individual (or in case such person is a part- nership, 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 un- incorporated association or other business enti- ty, any officer or director thereof; or in case of any such business entity, any individual who is otherwise responsibly connected with the busi- ness) 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 serv- ices 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 pro- viding such service with respect to such grain would be inimical to the integrity of the service. (b) Persons responsibly connected with a busi- ness For purposes of subsection (a) of this section, a person shall be deemed to be responsibly con- nected with a business if the person 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, Page 185 TITLE 7—AGRICULTURE § 87 or in lieu of, refusal of official inspection or services related to weighing in accordance with this section, the Secretary 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 offi- cial inspection of grain a civil penalty not to ex- ceed $75,000 for each such violation as the Sec- retary 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 pen- alty is assessed against any person under this section, such person shall be afforded oppor- tunity for a hearing in accordance with sections 554, 556, and 557 of title 5: Provided, That the Sec- retary may, without first affording the person a hearing, refuse official inspection or services re- lated to weighing temporarily pending final de- termination whenever the Secretary 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 offi- cial inspection system under this chapter. The Secretary shall afford such person an oppor- tunity for a hearing within seven days after temporarily refusing official inspection or serv- ices 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 pen- alties shall be deposited in the general fund of the United States Treasury. Upon any failure to pay the penalties assessed under this section, the Secretary 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. (Aug. 11, 1916, ch. 313, pt. B, § 10, 39 Stat. 485; Pub. L. 90–487, § 1, Aug. 15, 1968, 82 Stat. 765; Pub. L. 94–582, § 12, Oct. 21, 1976, 90 Stat. 2879; Pub. L. 103–156, § 12(i), Nov. 24, 1993, 107 Stat. 1528; Pub. L. 103–354, title II, § 293(a)(7), Oct. 13, 1994, 108 Stat. 3237.) Editorial Notes AMENDMENTS 1994—Subsecs. (a), (c) to (e). Pub. L. 103–354 sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever ap- pearing. 1993—Pub. L. 103–156, § 12(i), which directed amend- ment of ‘‘Section 10’’, without specifying the name of the Act being amended, was executed to this section, which is section 10 of the United States Grain Stand- ards Act, to reflect the probable intent of Congress. Subsec. (a). Pub. L. 103–156, § 12(i)(1), substituted ‘‘the Administrator’’ for ‘‘he’’ in two places. Subsec. (b). Pub. L. 103–156, § 12(i)(2), substituted ‘‘the person’’ for ‘‘he’’. 1976—Subsec. (a). Pub. L. 94–582 substituted ‘‘Admin- istrator’’ for ‘‘Secretary’’, ‘‘grain offered for such serv- ices’’ for ‘‘grain offered for inspection’’, ‘‘has know- ingly 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 re- fused’’, 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 sec- tion’’ 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 hear- ing pending final determination. Subsec. (e). Pub. L. 94–582 added subsec. (e). 1968—Pub. L. 90–487 substituted provisions author- izing the Secretary to refuse official inspection and af- fording an opportunity for a hearing in such a case, for provisions setting the penalty for interference with the execution of official duties. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–582 effective 30 days after Oct. 21, 1976, see section 27 of Pub. L. 94–582, as amend- ed, 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. § 87. Conflicts of interest (a) Prohibition with respect to persons licensed or authorized by Secretary to perform offi- cial functions No person licensed or authorized by the Sec- retary to perform any official function under this chapter, or employed by the Secretary in otherwise carrying out any of the provisions of this chapter, shall, during the term of such li- cense, authorization, or employment, (a) be fi- nancially 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 employ- ment of, or accept gratuities from, any such en- tity, or (c) be engaged in any other kind of ac- tivity specified by regulation of the Secretary as involving a conflict of interest: Provided, how- ever, That the Secretary may license qualified employees of any grain elevators or warehouses to perform official sampling functions, under such conditions as the Secretary may by regula- tion prescribe, and the Secretary may by regula- tion provide such other exceptions to the re- strictions of this section as the Secretary deter- mines are consistent with the purposes of this chapter. (b) Prohibition with respect to personnel of offi- cial or State agencies and business or gov- ernmental entities related to such agencies; substantial stockholder; use of official in- spection service; authority delegation; report to Congressional committees (1) No official agency or a State agency dele- gated authority under this chapter, or any mem-