7 U.S.C. § 242 — Powers of Secretary

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the ‘‘United States Cotton Fu- tures Act’’ formerly classified to chapter 13 of Title 26, Internal Revenue Code, was repealed by section 4 of act Feb. 10, 1939, ch. 2, 53 Stat. 1.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 Pub. L. 106–472, title II, § 202, Nov. 9, 2000, 114 Stat. 2068, provided that: ‘‘(a) PROPOSED REGULATIONS.—Not later than 90 days after the date of the enactment of this Act [Nov. 9, 2000], the Secretary of Agriculture shall publish in the Federal Register proposed regulations for carrying out the amendment made by section 201 [enacting this chapter]. ‘‘(b) FINAL REGULATIONS.—Not later than 180 days after the date of the enactment of this Act, the Sec- retary shall promulgate final regulations for carrying out the amendment made by section 201. ‘‘(c) EFFECTIVENESS OF EXISTING ACT.—The United States Warehouse Act (7 U.S.C. 241 et seq.) (as it ex- isted before the amendment made by section 201) shall be effective until the earlier of— ‘‘(1) the date on which final regulations are promul- gated under subsection (b); or ‘‘(2) August 1, 2001.’’ § 242. Powers of Secretary (a) In general The Secretary shall have exclusive power, ju- risdiction, 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 ap- proval 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 oppor- tunity for notice and comment, those agricul- tural 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 agricul- tural products. (d) Inspections The Secretary may inspect or cause to be in- spected any person or warehouse licensed under this chapter and any warehouse for which a li- cense is applied for under this chapter. (e) Suitability for storage The Secretary may determine whether a li- censed warehouse, or a warehouse for which a li- cense is applied for under this chapter, is suit- able for the proper storage of the agricultural product or products stored or proposed for stor- age in the warehouse. (f) Classification The Secretary may classify a licensed ware- house, or a warehouse for which a license is ap- plied 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 chap- ter, the Secretary may prescribe the duties of a warehouse operator operating a warehouse li- censed 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 Sec- retary may promulgate regulations governing one or more electronic systems under which electronic receipts may be issued and trans- ferred 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 fil- ing 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— Page 358 TITLE 7—AGRICULTURE § 243 (1) any person that is engaged in the busi- ness of storing an agricultural product that is subject to this chapter; (2) any State agency that regulates the stor- age of an agricultural product by such a per- son; 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 op- erator a license for the operation of a warehouse in accordance with this chapter if— (1) the Secretary determines that the ware- house is suitable for the proper storage of the agricultural product or products stored or pro- posed for storage in the warehouse; and (2) the warehouse operator agrees, as a con- dition of the license, to comply with this chap- ter (including regulations promulgated under this chapter). (k) Licensing of other persons (1) In general On presentation of satisfactory proof of com- petency 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 prod- uct; (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 com- ply 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 ac- counts relating to activities subject to this chapter of— (1) a warehouse operator operating a ware- house licensed under this chapter; (2) a person operating a system for the elec- tronic recording and transfer of receipts and other documents authorized by the Secretary; or (3) any other person issuing receipts or elec- tronic 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. (Aug. 11, 1916, ch. 313, pt. C, § 3, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2062.) Editorial Notes PRIOR PROVISIONS A prior section 242, acts Aug. 11, 1916, ch. 313, pt. C, § 2, 39 Stat. 486; Feb. 23, 1923, ch. 106, 42 Stat. 1282, de- fined terms, prior to the general amendment of this chapter by Pub. L. 106–472. See section 241 of this title. A prior section 3 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 243 of this title, prior to the general amendment of this chapter by Pub. L. 106–472. § 243. Imposition and collection of fees (a) In general The Secretary shall assess persons covered by this chapter fees to cover the costs of admin- istering 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 avail- able to the Secretary without further appropria- tion and without fiscal year limitation. (d) Interest Funds collected under this section may be de- posited in an interest-bearing account with a fi- nancial 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 improv- ing 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 com- ply with paragraph (1). (Aug. 11, 1916, ch. 313, pt. C, § 4, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2064.) Editorial Notes PRIOR PROVISIONS A prior section 243, act Aug. 11, 1916, ch. 313, pt. C, § 3, 39 Stat. 486, authorized investigation of warehousing, weighing, classifying, and certification of agricultural products, inspection of warehouses, and prescription of duties of warehousemen by Secretary of Agriculture, prior to the general amendment of this chapter by Pub. L. 106–472. See section 242 of this title. A prior section 4 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 244 of this title, prior to the general amendment of this chapter by Pub. L. 106–472. § 244. Quality and value standards If standards for the evaluation or determina- tion of the quality or value of an agricultural