§ 13a. — Nonenforcement of rules of government or other violations; cease and desist orders; fines and penalties; imprisonment; misdemeanor; separate offenses.
[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]
TITLE 7--AGRICULTURE
CHAPTER 1--COMMODITY EXCHANGES
Sec. 13a. Nonenforcement of rules of government or other
violations; cease and desist orders; fines and penalties;
imprisonment; misdemeanor; separate offenses
If any registered entity is not enforcing or has not enforced its
rules of government made a condition of its designation or registration
as set forth in sections 7 through 7a-2 of this title, or if any
registered entity, or any director, officer, agent, or employee of any
registered entity otherwise is violating or has violated any of the
provisions of this chapter or any of the rules, regulations, or orders
of the Commission thereunder, the Commission may, upon notice and
hearing on the record and subject to appeal as in other cases provided
for in section 8(b) of this title, make and enter an order directing
that such registered entity, director, officer, agent, or employee shall
cease and desist from such violation, and assess a civil penalty of not
more than $500,000 for each such violation. If such registered entity,
director, officer, agent, or employee, after the entry of such a cease
and desist order and the lapse of the period allowed for appeal of such
order or after the affirmance of such order, shall fail or refuse to
obey or comply with such order, such registered entity, director,
officer, agent, or employee shall be guilty of a misdemeanor and, upon
conviction thereof, shall be fined not more than $500,000 or imprisoned
for not less than six months nor more than one year, or both. Each day
during which such failure or refusal to obey such cease and desist order
continues shall be deemed a separate offense. If the offending
registered entity or other person upon whom such penalty is imposed,
after the lapse of the period allowed for appeal or after the affirmance
of such penalty, shall fail to pay such penalty, the Commission shall
refer the matter to the Attorney General who shall recover such penalty
by action in the appropriate United States district court. In
determining the amount of the money penalty assessed under this section,
the Commission shall consider the gravity of the offense, and in the
case of a registered entity shall further consider whether the amount of
the penalty will materially impair the ability of the registered entity
to carry on its operations and duties.
(Sept. 21, 1922, ch. 369, Sec. 6b, as added June 15, 1936, ch. 545,
Sec. 9, 49 Stat. 1500; amended Pub. L. 90-258, Sec. 18, Feb. 19, 1968,
82 Stat. 31; Pub. L. 93-463, title II, Sec. 212(b), Oct. 23, 1974, 88
Stat. 1403; Pub. L. 95-405, Sec. 14, Sept. 30, 1978, 92 Stat. 872; Pub.
L. 102-546, title II, Secs. 209(b)(5), 212(c), Oct. 28, 1992, 106 Stat.
3607, 3609; Pub. L. 106-554, Sec. 1(a)(5) [title I, Sec. 123(a)(14)],
Dec. 21, 2000, 114 Stat. 2763, 2763A-409.)
Amendments
2000--Pub. L. 106-554 substituted ``registered entity'' for
``contract market'' wherever appearing, ``designation or registration as
set forth in sections 7 through 7a-2 of this title'' for ``designation
as set forth in section 7 of this title'' in first sentence, and ``the
ability of the registered entity'' for ``the contract market's ability''
in last sentence.
1992--Pub. L. 102-546 substituted ``section 8(b) of this title'' for
``paragraph (a) of section 8 of this title'', substituted ``$500,000''
for ``$100,000'' in two places, and in last sentence struck out ``the
appropriateness of such penalty to the net worth of the offending person
and'' after ``Commission shall consider''.
1978--Pub. L. 95-405 inserted ``on the record'' after ``notice and
hearing''.
1974--Pub. L. 93-463 inserted provision for assessment of a civil
penalty of not more than $100,000 for each violation, substituted ``not
more than $100,000'' for ``not less than $500 nor more than $10,000'' as
permissible range of fines imposed, inserted provisions for enforcement
of a penalty, and substituted ``orders of the Commission'' for ``orders
of the Secretary of Agriculture or the commission''.
1968--Pub. L. 90-258 amended section to clarify application only to
boards of trade designated as contract markets, to include as grounds
for cease and desist orders failure to enforce the market's rules of
government made a condition of its designation and violation of rules or
regulations of the commission or orders of the Secretary, and to
authorize such orders in conjunction with a suspension or revocation of
designation as a contract market rather than in lieu of suspension or
revocation.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section 28
of Pub. L. 95-405, set out as a note under section 2 of this title.
Effective Date of 1974 Amendment
For effective date of amendment by Pub. L. 93-463, see section 418
of Pub. L. 93-463, set out as a note under section 2 of this title.
Effective Date of 1968 Amendment
Amendment by Pub. L. 90-258 effective 120 days after Feb. 19, 1968,
see section 28 of Pub. L. 90-258, set out as a note under section 2 of
this title.
Effective Date
For effective date of section, see section 13 of act June 15, 1936,
set out as an Effective Date of 1936 Amendment note under section 1 of
this title.
