Collapse to view only § 241. Definitions

§ 241. Definitions
In this chapter:
(1) Agricultural product
(2) Approval
(3) Department
(4) Electronic document
(5) Electronic receipt
(6) Holder
(7) Person
The term “person” means—
(A) a person (as defined in section 1 of title 1);
(B) a State; and
(C) a political subdivision of a State.
(8) Receipt
(9) Secretary
(10) Warehouse
(11) Warehouse operator
(Aug. 11, 1916, ch. 313, pt. C, § 2, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2061.)
§ 242. Powers of Secretary
(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
(c) Investigations
(d) Inspections
(e) Suitability for storage
(f) Classification
(g) Warehouse operator’s duties
(h) Systems for electronic conveyance
(1) Regulations governing electronic systems
(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
(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.
(Aug. 11, 1916, ch. 313, pt. C, § 3, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2062.)
§ 243. Imposition and collection of fees
(a) In general
(b) Rates
(c) Treatment of fees
(d) Interest
(e) Efficiencies and cost effectiveness
(1) In general
(2) Report
(Aug. 11, 1916, ch. 313, pt. C, § 4, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2064.)
§ 244. Quality and value standards

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.

(Aug. 11, 1916, ch. 313, pt. C, § 5, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2064.)
§ 245. Bonding and other financial assurance requirements
(a) In general
(b) Service of process
(c) Additional assurances
(d) Third party actions
(Aug. 11, 1916, ch. 313, pt. C, § 6, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2064.)
§ 246. Maintenance of records
To facilitate the administration of this chapter, the following persons shall maintain such records and make such reports, as the Secretary may by regulation require:
(1) A warehouse operator that is licensed under this chapter.
(2) A person operating a system for the electronic recording and transfer of receipts and other documents that are authorized under this chapter.
(3) Any other person engaged in the issuance of electronic receipts or the transfer of documents under this chapter.
(Aug. 11, 1916, ch. 313, pt. C, § 7, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2065.)
§ 247. Fair treatment in storage of agricultural products
(a) In general
Subject to the capacity of a warehouse, a warehouse operator shall deal, in a fair and reasonable manner, with persons storing, or seeking to store, an agricultural product in the warehouse if the agricultural product—
(1) is of the kind, type, and quality customarily stored or handled in the area in which the warehouse is located;
(2) is tendered to the warehouse operator in a suitable condition for warehousing; and
(3) is tendered in a manner that is consistent with the ordinary and usual course of business.
(b) Allocation
(Aug. 11, 1916, ch. 313, pt. C, § 8, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2065.)
§ 248. Commingling of agricultural products
(a) In general
(b) Liability
(Aug. 11, 1916, ch. 313, pt. C, § 9, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2065.)
§ 249. Transfer of stored agricultural products
(a) In general
(b) Continued duty
(Aug. 11, 1916, ch. 313, pt. C, § 10, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2065.)
§ 250. Warehouse receipts
(a) In general
(b) Actual storage required
(c) Contents
(d) Prohibition on additional receipts or other documents
(1) Receipts
(2) Other documents
(e) Electronic receipts and electronic documents
Except as provided in section 242(h)(2) of this title, notwithstanding any other provision of Federal or State law:
(1) In general
(2) Electronic receipt or electronic document systems
(3) Treatment of holder
(4) Nondiscrimination
(5) Security interests
(6) No electronic receipt required
(7) Option for non-federally licensed warehouse operators
(8) Application to State-licensed warehouse operators
This subsection shall not apply to a warehouse operator that is licensed under State law to store agricultural commodities in a warehouse in the State if the warehouse operator elects—
(A) not to issue electronic receipts authorized under this subsection; or
(B) to issue electronic receipts authorized under State law.
(Aug. 11, 1916, ch. 313, pt. C, § 11, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2065.)
§ 251. Conditions for delivery of agricultural products
(a) Prompt delivery
In the absence of a lawful excuse, a warehouse operator shall, without unnecessary delay, deliver the agricultural product stored or handled in the warehouse on a demand made by—
(1) the holder of the receipt for the agricultural product; or
(2) the person that deposited the product, if no receipt has been issued.
(b) Payment to accompany demand
(c) Surrender of receipt
(d) Cancellation of receipt
(Aug. 11, 1916, ch. 313, pt. C, § 12, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2067.)
§ 252. Suspension or revocation of licenses
(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
(c) Authority to conduct hearings
(d) Judicial review
(1) Jurisdiction
(2) Procedure
(Aug. 11, 1916, ch. 313, pt. C, § 13, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2067.)
§ 253. Public information
(a) In general
The Secretary may release to the public the names, addresses, and locations of all persons—
(1) that have been licensed under this chapter or that have been approved to engage in an activity under this chapter; and
(2) with respect to which a license or approval has been suspended or revoked under section 252 of this title, the results of any investigation made or hearing conducted under this chapter, including the reasons for the suspension or revocation.
(b) Confidentiality
(Aug. 11, 1916, ch. 313, pt. C, § 14, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2068.)
§ 254. Penalties for noncompliance
If a person fails to comply with any requirement of this chapter (including regulations promulgated under this chapter), the Secretary may assess, on the record after an opportunity for a hearing, a civil penalty—
(1) of not more than $25,000 per violation, if an agricultural product is not involved in the violation; or
(2) of not more than 100 percent of the value of the agricultural product, if an agricultural product is involved in the violation.
(Aug. 11, 1916, ch. 313, pt. C, § 15, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2068.)
§ 255. Jurisdiction and arbitration
(a) Federal jurisdiction
(b) Arbitration
(Aug. 11, 1916, ch. 313, pt. C, § 16, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2068.)
§ 256. Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this chapter.

(Aug. 11, 1916, ch. 313, pt. C, § 17, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2068.)