§ 242. — Powers of Secretary.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC242]
TITLE 7--AGRICULTURE
CHAPTER 10--WAREHOUSES
Sec. 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
The Secretary shall specify, after an opportunity for notice and
comment, those agricultural 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
agricultural products.
(d) Inspections
The Secretary may inspect or cause to be inspected any person or
warehouse licensed under this chapter and any warehouse for which a
license is applied for under this chapter.
(e) Suitability for storage
The Secretary may determine whether a licensed warehouse, or a
warehouse for which a license is applied for under this chapter, is
suitable for the proper storage of the agricultural product or products
stored or proposed for storage in the warehouse.
(f) Classification
The Secretary may classify a licensed warehouse, or a warehouse for
which a license is applied 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 chapter, the Secretary may
prescribe the duties of a warehouse operator operating a warehouse
licensed 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 Secretary may
promulgate regulations governing one or more electronic systems
under which electronic receipts may be issued and transferred 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 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) of this
section, 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
As a condition of a license issued under paragraph (1), the
licensee shall agree to comply 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
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, Sec. 3, as added Pub. L. 106-472, title
II, Sec. 201, Nov. 9, 2000, 114 Stat. 2062.)
Prior Provisions
A prior section 242, acts Aug. 11, 1916, ch. 313, pt. C, Sec. 2, 39
Stat. 486; Feb. 23, 1923, ch. 106, 42 Stat. 1282, defined 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.
Section Referred to in Other Sections
This section is referred to in section 250 of this title.
