§ 13a-2. — Jurisdiction of States.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC13a-2]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 13a-2. Jurisdiction of States
(1) Whenever it shall appear to the attorney general of any State,
the administrator of the securities laws of any State, or such other
official as a State may designate, that the interests of the residents
of that State have been, are being, or may be threatened or adversely
affected because any person (other than a contract market, derivatives
transaction execution facility, clearinghouse, floor broker, or floor
trader) has engaged in, is engaging or is about to engage in, any act or
practice constituting a violation of any provision of this chapter or
any rule, regulation, or order of the Commission thereunder, the State
may bring a suit in equity or an action at law on behalf of its
residents to enjoin such act or practice, to enforce compliance with
this chapter, or any rule, regulation, or order of the Commission
thereunder, to obtain damages on behalf of their residents, or to obtain
such further and other relief as the court may deem appropriate.
(2) The district courts of the United States, the United States
courts of any territory, and the District Court of the United States for
the District of Columbia, shall have jurisdiction of all suits in equity
and actions at law brought under this section to enforce any liability
or duty created by this chapter or any rule, regulation, or order of the
Commission thereunder, or to obtain damages or other relief with respect
thereto. Upon proper application, such courts shall also have
jurisdiction to issue writs of mandamus, or orders affording like
relief, commanding the defendant to comply with the provisions of this
chapter or any rule, regulation, or order of the Commission thereunder,
including the requirement that the defendant take such action as is
necessary to remove the danger of violation of this chapter or of any
such rule, regulation, or order. Upon a proper showing, a permanent or
temporary injunction or restraining order shall be granted without bond.
(3) Immediately upon instituting any such suit or action, the State
shall serve written notice thereof upon the Commission and provide the
Commission with a copy of its complaint, and the Commission shall have
the right to (A) intervene in the suit or action and, upon doing so,
shall be heard on all matters arising therein, and (B) file petitions
for appeal.
(4) Any suit or action brought under this section in a district
court of the United States may be brought in the district wherein the
defendant is found or is an inhabitant or transacts business or wherein
the act or practice occurred, is occurring, or is about to occur, and
process in such cases may be served in any district in which the
defendant is an inhabitant or wherever the defendant may be found.
(5) For purposes of bringing any suit or action under this section,
nothing in this chapter shall prevent the attorney general, the
administrator of the State securities laws, or other duly authorized
State officials from exercising the powers conferred on them by the laws
of such State to conduct investigations or to administer oaths or
affirmations or to compel the attendance of witnesses or the production
of documentary and other evidence.
(6) For purposes of this section, ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of Puerto
Rico, or any territory or possession of the United States.
(7) Nothing contained in this section shall prohibit an authorized
State official from proceeding in State court on the basis of an alleged
violation of any general civil or criminal antifraud statute of such
State.
(8)(A) Nothing in this chapter shall prohibit an authorized State
official from proceeding in a State court against any person registered
under this chapter (other than a floor broker, floor trader, or
registered futures association) for an alleged violation of any
antifraud provision of this chapter or any antifraud rule, regulation,
or order issued pursuant to the chapter.
(B) The State shall give the Commission prior written notice of its
intent to proceed before instituting a proceeding in State court as
described in this subsection and shall furnish the Commission with a
copy of its complaint immediately upon instituting any such proceeding.
The Commission shall have the right to (i) intervene in the proceeding
and, upon doing so, shall be heard on all matters arising therein, and
(ii) file a petition for appeal. The Commission or the defendant may
remove such proceeding to the district court of the United States for
the proper district by following the procedure for removal otherwise
provided by law, except that the petition for removal shall be filed
within sixty days after service of the summons and complaint upon the
defendant. The Commission shall have the right to appear as amicus
curiae in any such proceeding.
(Sept. 21, 1922, ch. 369, Sec. 6d, as added Pub. L. 95-405, Sec. 15,
Sept. 30, 1978, 92 Stat. 872; amended Pub. L. 97-444, title II,
Sec. 221, Jan. 11, 1983, 96 Stat. 2308; Pub. L. 102-546, title II,
Sec. 207(b)(1), (2), Oct. 28, 1992, 106 Stat. 3604; Pub. L. 106-554,
Sec. 1(a)(5) [title I, Sec. 123(a)(16)], Dec. 21, 2000, 114 Stat. 2763,
2763A-409.)
Amendments
2000--Par. (1). Pub. L. 106-554 inserted ``derivatives transaction
execution facility,'' after ``contract market,''.
1992--Pars. (1), (8)(A). Pub. L. 102-546 inserted reference to floor
trader.
1983--Par. (8). Pub. L. 97-444 added par. (8).
Effective Date of 1992 Amendment
Amendment by Pub. L. 102-546 effective 180 days after Oct. 28, 1992,
with Commodity Futures Trading Commission to issue any regulations
necessary to implement such amendment no later than 180 days after Oct.
28, 1992, see section 207(c) of Pub. L. 102-546, set out as a note under
section 6e of this title.
Effective Date of 1983 Amendment
Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section 239
of Pub. L. 97-444, set out as a note under section 2 of this title.
Effective Date
Section effective Oct. 1, 1978, see section 28 of Pub. L. 95-405,
set out as an Effective Date of 1978 Amendment note under section 2 of
this title.
Section Referred to in Other Sections
This section is referred to in sections 2, 6f, 6k of this title.
