(d) Standardized aflatoxin equipment and procedures
UNITED STATES GRAIN STANDARDS ACT AS AMENDED
(SECTION 1) 7 U.S.C. 71. Short Title
This Act may be cited as the "United States Grain Standards Act".
(SEC. 2) 7 U.S.C. 74. Congressional findings and declaration of policy
(a) Grain is an essential source of the world's total supply of human food and animal feed and is
merchandised in interstate and foreign commerce. It is declared to be the policy of the Congress,
for the promotion and protection of such commerce in the interests of producers, merchandisers,
warehousemen, processors, and consumers of grain, and the general welfare of the people of the
United States, to provide for the establishment of official United States standards for grain, to
promote the uniform application thereof by official inspection personnel, to provide for an official
inspection system for grain, and to regulate the weighing and the certification of the weight of
grain shipped in interstate or foreign commerce in the manner hereinafter provided; with the
objectives that grain may be marketed in an orderly and timely manner and that trading in grain
may be facilitated. It is hereby found that all grain and other articles and transactions in grain
regulated under this Act are either in interstate or foreign commerce or substantially affect such
commerce and that regulations thereof as provided in this Act as necessary to prevent or eliminate
burdens on such commerce and to regulate effectively such commerce.
(b) It is also declared to be the policy of Congress
(1) to promote the marketing of grain of high quality to both domestic and foreign buyers;
(2) that the primary objective of the Official United States Standards for Grain is to certify the
quality of grain as accurately as practicable; and
(3) that Official United States Standards for Grain shall
(A) define uniform and accepted descriptive terms to facilitate trade in grain;
(B) provide information to aid in determining grain storability;
(C) offer users of such standards the best possible information from which to determine
end-product yield and quality of grain;
(D) provide the framework necessary for markets to establish grain quality improvement incentives;
(E) reflect the economic value-based characteristics in the end uses of grain; and
(F) accommodate scientific advances in testing and new knowledge concerning factors related to,
or highly correlated with, the end use performance of grain.
(SEC. 3) 7 U.S.C. 75. Definitions
When used in this Act, except where the context requires otherwise
(a) the term "Secretary" means the Secretary of Agriculture of the United States or delegates of
the Secretary;
(b) the term "Department of Agriculture" means the United States Department of Agriculture;
(c) the term "person" means any individual, partnership, corporation, association, or other
business entity;
(d) the term "United States" means the States (including Puerto Rico) and the territories and
possessions of the United States (including the District of Columbia);
(e) the term "State" means any one of the States (including Puerto Rico) or territories or
possessions of the United States (including the District of Columbia);
(f) the term "interstate or foreign commerce" means commerce from any State to or through any
other State, or to or through any foreign country;
(g) the term "grain" means corn, wheat, rye, oats, barley, flaxseed, sorghum, soybeans, mixed
grain, and any other food grains, feed grains, and oilseeds for which standards are established
under section 76 of this Act;
(h) the term "export grain" means grain for shipment from the United States to any place outside thereof;
(i) the term "official inspection" means the determination (by original inspection, and when
requested, reinspection and appeal inspection) and the certification, by official inspection
personnel, of the kind, class, quality, or condition of grain, under standards provided for in this
Act, or the condition of vessels and other carriers or receptacles for the transportation of grain
insofar as it may affect the quality or condition of such grain; or other facts relating to grain under
other criteria approved by the Secretary under this Act (the term "officially inspected" shall be
construed accordingly);
(j) the term "official inspection personnel" means persons licensed or otherwise authorized by the
Secretary pursuant to section 84 of this Act to perform all or specified functions involved in
official inspection, official weighing, or supervision of weighing, or in the supervision of official
inspection, official weighing or supervision of weighing;
(k) the term "official mark" means any symbol prescribed by regulations of the Secretary to show
the official determination of official inspection or official weighing;
(l) the term "official grade designation" means a numerical or sample grade designation, specified
in the standards relating to kind, class, quality, and condition of grain, provided for in this Act;
(m) the term "official agency" means any State or local governmental agency, or any person,
designated by the Secretary pursuant to subsection (f) of section 79 of this Act for the conduct of
official inspection (other than appeal inspection), or subsection (c) of section 79a of this Act for
the conduct of official weighing or supervision of weighing (other than appeal weighing);
(n) the terms "official certificate" and "official form" mean, respectively, a certificate or other
form prescribed by regulations of the Secretary under this Act;
(o) the term "official sample" means a sample obtained from a lot of grain by, and submitted for
official inspection by, official inspection personnel (the term "official sampling" shall be construed accordingly);
(p) the term "submitted sample" means a sample submitted by or for an interested person for
official inspection, other than an official sample;
(q) the term "lot" means a specific quantity of grain identified as such;
(r) the term "interested person" means any person having a contract or other financial interest in
grain as the owner, seller, purchaser, warehouseman, or carrier, or otherwise;
(s) the verb "ship" with respect to grain means transfer physical possession of the grain to another
person for the purpose of transportation by any means of conveyance, or transport one's own
grain by any means of conveyance;
(t) the terms "false," "incorrect," and "misleading" mean, respectively, false, incorrect, and
misleading in any particular;
(u) the term "deceptive loading, handling, weighing, or sampling" means any manner of loading,
handling, weighing, or sampling that deceives or tends to deceive official inspection personnel, as
specified by regulations of the Secretary under this Act;
(v) the term "export elevator" means any grain elevator, warehouse, or other storage or handling
facility in the United States as determined by the Secretary, from which grain is shipped from the
United States to an area outside thereof;
(w) the term "export port location" means a commonly recognized port of export in the United
States or Canada, as determined by the Secretary, from which grain produced in the United States
is shipped to any place outside the United States;
(x) the term "official weighing" means the determination and certification by official inspection
personnel of the quantity of a lot of grain under standards provided for in this Act, based on the
actual performance of weighing or the physical supervision thereof, including the physical
inspection and testing for accuracy of the weights and scales and the physical inspection of the
premises at which the weighing is performed and the monitoring of the discharge of grain into the
elevator or conveyance (the terms "officially weigh" and "officially weighed" shall be construed accordingly);
(y) the term "supervision of weighing" means such supervision by official inspection personnel of
the grain-weighing process as is determined by the Secretary to be adequate to reasonably assure
the integrity and accuracy of the weighing and of certificates which set forth the weight of the
grain and such physical inspection by such personnel of the premises at which the grain weighing
is performed as will reasonably assure that all the grain intended to be weighed has been weighed
and discharged into the elevator or conveyance; and
(z) the term "intracompany shipment" means the shipment, within the United States, of grain lots
between facilities owned or controlled by the person owning the grain. The shipment of grain
owned by a cooperative, from a facility owned by that cooperative, to an export facility which it
jointly owns with other cooperatives, qualifies as an intracompany shipment.
(SEC. 3B) 7 U.S.C. 75b.
Committee on Grain Quality and Grain Quality Coordinator
(a) Establishment of Committee and Coordinator
(1) Committee
The Secretary of Agriculture (hereafter referred to in this title as the "Secretary") shall establish,
within the Department of Agriculture, a Committee on Grain Quality (hereafter referred to in this
section as the "Committee").
(2) Coordinator The Committee established under paragraph (1) shall be chaired by an individual,
appointed by the Secretary, who shall serve as the Grain Quality Coordinator (hereafter referred
to in this title as the "Coordinator") and, in consultation with the Committee, carry out the duties
described in subsection (b) of this section.
(b) Duties
The Coordinator shall be responsible for
(1) assembling and evaluating, in a systematic manner, concerns and problems with the quality of
United States grain, expressed by foreign and domestic buyers and end-users;
(2) developing and implementing a coordinated effort to inform and educate foreign buyers
concerning the proper specifications of grain purchase contracts to obtain the quality of grain they
desire;
(3) reviewing the programs and activities of the Department of Agriculture with respect to United
States grain to determine whether the activities are consistent with the provisions of this title (and
other provisions of law) as such provisions relate to grain quality and grain quality competitiveness;
(4) serving as the Federal Government coordinator with respect to grain quality and grain quality
competitiveness, and
(5) investigating and communicating, through the Secretary, to the Committee on Agriculture of
the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the
Senate concerning
(A) actions undertaken by the Department of Agriculture
(i) to improve the quality of United States grain; and
(ii) that are inconsistent with the goal of improving grain quality;
(B) conditions in the production and marketing sectors that discourage improvement in grain quality;
(C) interrelationships of rules and actions taken by the Federal Grain Inspection Service, other
agencies of the Department of Agriculture, Food and Drug Administration, Environmental
Protection Agency, and other Federal agencies, relating to grain production, handling, storage,
transportation, and processing as such actions affect the wholesomeness and performance of grain;
(D) recommendations for legislative or regulatory changes that would address grain quality issues;
(E) progress made and benefits expected from the international harmonization of sanitary and
phytosanitary requirements affecting grain;
(F) potential opportunities and benefits from the international harmonization of grain grades and standards;
(G) alternative forms of financial and technical assistance available and needed by producers and
elevator operators to acquire and properly utilize grain cleaning, drying, and storage equipment;
and
(H) progress on requirements of other sections of this title.
(c) Termination This section shall terminate on January 1, 2001.
(SEC. 4) 7 U.S.C. 76.
Standards and procedures; establishment, amendment, and
revocation
(a) Authority of Secretary
The Secretary is authorized to investigate the handling, weighing, grading, and transportation of
grain and to fix and establish
(1) standards of kind, class, quality, and condition for corn, wheat, rye, oats, barley, flaxseed,
sorghum, soybeans, mixed grain, and such other grains as in the judgment of the Secretary the
usages of the trade may warrant and permit, and
(2) standards or procedures for accurate weighing and weight certification and controls, including
safeguards over equipment calibration and maintenance, for grain shipped in interstate or foreign
commerce; and the Secretary is authorized to amend or revoke such standards or procedures
whenever the necessities of the trade may require.
(b) Notice and opportunity for comment; standards regarding cleanliness of grain
(1) Before establishing, amending, or revoking any standards under this Act, the Secretary shall
publish notice of the proposal and give interested persons opportunity to submit data, views, and
arguments thereon and, upon request, an opportunity to present data, views, and arguments orally
in an informal manner. No standards established or amendments or revocations of standards
under this Act shall become effective less than one calendar year after promulgation thereof,
unless in the judgment of the Secretary, the public health, interest, or safety require that they
become effective sooner.
(2) (A) (i) If the Secretary determines that the establishment or amendment of standards
regarding cleanliness conditions of wheat, corn, barley, sorghum and soybeans that meet the
requirements for grade number 3 or better (as set forth in subparagraph (B) ) would (I) enhance
the competitiveness of exports of wheat, corn, barley, sorghum and soybeans from the United
States with wheat, corn, barley, sorghum and soybean exports marketed by other major exporters;
(II) result in the maintenance or expansion of the United States export market share for wheat,
corn, barley, sorghum and soybeans;
(III) result in the maintenance or increase of United States producer income; and
(IV) be in the interest of United States agriculture, taking into consideration technical constraints,
economic benefits and costs to producers and industry, price competitiveness, and importer needs;
the Secretary shall establish or amend the standards to include economically and commercially
practical levels of cleanliness for wheat, corn, barley, sorghum and soybeans.
(ii) The Secretary shall make a finding under this subsection for grain of the type
described in clause (i) as soon as practicable after the date of enactment of this paragraph.
(B) (i) In establishing requirements for cleanliness characteristics, the Secretary shall (I) consider
technical constraints, economic benefits and costs to producers and industry, the price
competitiveness of United States agricultural production, and levels of cleanliness met by major
competing nations that export wheat, corn, barley, sorghum and soybeans;
(II) promulgate regulations after providing for notice and an opportunity for public comment; and
(III) phase in any requirements for cleanliness characteristics by incrementally decreasing the
levels of the objectionable material permitted in shipments of grade number 3 or better wheat,
corn, barley, sorghum and soybeans.
(ii) Following the phase-in period referred to in clause (i) (III), subsequent revision of cleanliness
requirements shall be conducted consistent with the schedule of the Secretary for reviewing grain
standards.
(C) If the Secretary determines to establish requirements for cleanliness characteristics under this
section, the Secretary shall ensure that such requirements are fully implemented not later than 6
years after November 28, 1990.
(c) Grade determining factors related to physical soundness and purity; notice and opportunity
for comment
(1) In establishing standards under subsection (a) for each grain for which official grades are
established, the Secretary shall establish for each such grain official grade-determining factors and
factor limits that reflect the levels of soundness and purity that are consistent with end-use
performance goals of the major foreign and domestic users of each such grain. Such factors and
factor limits for grades number 3 and better shall provide users of such standards the best possible
information from which to determine end-use product quality. The Secretary shall establish
factors and factor limits that will provide that grain meeting the requirements for grades number 3
and better will perform in accordance with general trade expectations for the predominant uses of
such grain.
(2) In establishing factors and factor limits under paragraph (1), the Secretary shall provide for
notice and an opportunity for public comment prior to making changes in the grade-determining
factors and factor limits that shall be applicable under this section to grain that is officially graded.
(d) Moisture content criterion
If the Government of any country requests that moisture content remain a criterion in the official
grade designations of grain, such criterion shall be included in determining the official grade
designation of grain shipped to such country.
(SEC. 5) 7 U.S.C. 77
. Official inspection and weighing requirements; waiver; supervision
by representatives of Secretary
(a) Official samples and certificates; waiver; excepted grains
Whenever standards or procedures are effective under section 76 of this Act for any grain
(1) no person shall ship from the United States to any place outside thereof any lot of such grain,
unless such lot is officially weighed and officially inspected (on the basis of official samples taken
after final elevation as near the final spout through which the grain passes as physically practicable
as it is being loaded aboard, or while it is in, the final carrier in which it is to be transported from
the United States) in accordance with such standards or procedures, and unless a valid official
certificate showing the official grade designation and certified weight of the lot of grain has been
provided by official inspection personnel and is promptly furnished by the shipper, or the agent of
the shipper, to the consignee with the bill of lading or other shipping documents covering the
shipment: Provided, That the Secretary may waive the foregoing requirement in emergency or
other circumstances which would not impair the objectives of this Act: Provided further, That the
Secretary shall waive the requirement for official inspection whenever the parties to a contract for
such shipment of a lot of grain (which is not sold, offered for sale, or consigned for sale by grade)
from the United States to any place outside thereof mutually agree under the contract to ship such
lot of grain without official inspection being performed and a copy of the contract is furnished to
the Secretary prior to shipment;
(2) except as the Secretary may provide in emergency weighing or other circumstances which
would not impair the objectives of this Act, all other grain transferred out of and all grain
transferred into an export elevator at an export port location shall be officially weighed in
accordance with such standards or procedure: Provided, That, unless the shipper or receiver
requests that the grain be officially weighed, intracompany shipments of grain into an export
elevator by any mode of transportation, grain transferred into an export elevator by transportation
modes other than barge, and grain transferred out of an export elevator to destinations within the
United States shall not be officially weighed; and
(3) except as otherwise authorized by the Secretary, whenever a lot of grain is both officially
inspected and officially weighed while being transferred into or out of a grain elevator, warehouse
or other storage or handling facility, an official certificate shall be issued showing both the official
grade designation and the certified weight of the lot of grain.
(b) Supervision by representatives of Secretary
All official inspection and official weighing, whether performed by authorized employees of the
Secretary or any other person licensed under Section 84 of this Act, shall be supervised by
representatives of the Secretary, in accordance with such regulations as the Secretary may
provide.
(c) Testing for aflatoxin contamination of corn shipped in foreign commerce
The Secretary is authorized and directed to require that all corn exported from the United States
be tested to ascertain whether it exceeds acceptable levels of aflatoxin contamination, unless the
contract for export between the buyer and seller stipulates that aflatoxin testing shall not be
conducted.
(SEC. 6) 7 U.S.C. 78. Use of official grade designations required; false or misleading grade
designations for grain shipped out of the United States
(a) Use of official grade designations required
Whenever standards relating to kind, class, quality, or condition of grain are effective under
section 76 of this Act for any grain no person shall in any sale, offer for sale, or consignment for
sale, which involves the shipment of such grain in interstate or foreign commerce, describe such
grain as being of any grade in any advertising, price quotation, other negotiation of sale, contract
of sale, invoice, bill of lading, other document, or description on bags or other containers of the
grain, other than by an official grade designation, with or without additional information as to
specified factors: Provided, That the description of such grain by any proprietary brand name or
trademark that does not resemble an official grade designation, or with respect to interstate
commerce, by the use of one or more grade factor designations set forth in the official United
States standards for grain, or by other criteria shall not be deemed to be a description of grain as
being of any grade.
(b) Prohibited use of false or misleading grade designations
No person shall, in any sale, offer for sale or consignment for sale, of any grain which involves the
shipment of such grain from the United States to any place outside thereof, knowingly describe
such grain by any official grade designation, or other description, which is false or misleading.
(SEC. 7) 7 U.S.C. 79. Official inspection
(a) Grain required to be officially inspected
The Secretary is authorized to cause official inspection under the standards provided for in section
76 of this Act to be made of all grain required to be officially inspected as provided in section 77
of this Act, in accordance with such regulations as the Secretary may prescribe.
(b) Inspection made pursuant to request of interested persons
The Secretary is further authorized upon request of any interested person, and under such
regulations as the Secretary may prescribe, to cause official inspection to be made with respect to
any grain whether by official sample, submitted sample, or otherwise within the United States
under standards provided for in section 76 of this Act, or, upon request of the interested person,
under other criteria approved by the Secretary for determining the kind, class, quality, or
condition of grain, or other facts relating to grain, whenever in the judgment of the Secretary
providing such service will effectuate any of the objectives stated in section 74 of this Act.
(c) Reinspection and appeals; cancellation and surrender of superseded certificates; sale of
samples The regulations prescribed by the Secretary under this Act shall include provisions for
reinspections and appeal inspections; cancellation and surrender of certificates superseded by
reinspection and appeal inspections; and the use of standard forms for official certificates. The
Secretary may provide by regulation that samples obtained by or for employees of the Secretary
for purposes of official inspection shall become the property of the United States, and such
samples may be disposed of without regard to the provisions of the Federal Property and
Administrative Services Act of 1949, as amended (40 U.S.C. 471 et seq.).
(d) Official certificates as evidence
Official certificates setting out the results of official inspection issued and not canceled under this
Act shall be received by all officers and all courts of the United States as prima facie evidence of
the truth of the facts stated therein.
(e) Official inspection at export port locations; delegation of authority to State agencies
(1) Except as otherwise provided in paragraph (2) of this subsection, the Secretary shall cause
inspection at export port locations, for all grain required or authorized to be inspected by this
Act, to be performed by official inspection personnel employed by the Secretary or other persons
under contract with the Secretary as provided in section 84 of this Act.
(2) If the Secretary determines, pursuant to paragraph (3) of this subsection, that a State agency
is qualified to perform official inspection, meets the criteria in subsection (f)(1)(A) of this section,
and (A) was performing official inspection at an export port location under this Act on July 1,
1976, or (B)(i) performed official inspection at an export port location at any time prior to July 1,
1976, (ii) was designated under subsection (f) of this section on the date of enactment of the
Agriculture and Food Act of 1981 to perform official inspections at locations other than export
port locations, and (iii) operates in a State from which total annual exports of grain do not
exceed, as determined by the Secretary, 5 per centum of the total amount of grain exported from
the United States annually, the Secretary may delegate authority to the State agency to perform
all or specified functions involved in official inspection (other than appeal inspection) at export
port locations within the State, including export port locations which may in the future be
established, subject to such rules, regulations, instructions, and oversight as the Secretary may
prescribe, and any such official inspection shall continue to be the direct responsibility of the
Secretary. Any such delegation may be revoked by the Secretary, at the discretion of the
Secretary, at any time upon notice to the State agency without opportunity for a hearing.
(3) Prior to delegating authority to a State agency for the performance of official inspection at
export port locations pursuant to paragraph (2) of this subsection, the Secretary shall
(A) conduct an investigation to determine whether such agency is qualified, and
(B) make findings based on such investigation. In conducting the investigation, the Secretary
shall consult with, and review the available files of the Department of Justice, the Office of
Investigation of the Department of Agriculture (or such other organization or agency within the
Department of Agriculture which may be delegated the authority, in lieu thereof, to conduct
investigations on behalf of the Department of Agriculture), and the General Accounting Office.
(4) The Secretary may provide that grain loaded at an interior point in the United States into a rail
car, barge, or other container as the final carrier in which it is to be transported from the United
States shall be inspected in the manner provided in this subsection or subsection (f) of this section,
as the Secretary determines will best meet the objectives of this Act.
(f) Official inspection at other than export port locations; designation of agencies or persons to
conduct official inspection
(1) With respect to official inspections other than at export port locations, the Secretary is
authorized, upon application by any State or local governmental agency, or any person, to
designate such agency or person as an official agency for the conduct of all or specified functions
involved in official inspection (other than appeal inspection) at locations where the Secretary
determines official inspection is needed, if
(A) the agency or person shows to the satisfaction of the Secretary that such agency or person
(i) has adequate facilities and qualified personnel for the performance of such official inspection
functions;
(ii) will provide for the periodic rotation of official inspection personnel among the grain
elevators, warehouses, or other storage or handling facilities at which the State or person provides
official inspection, as is necessary to preserve the integrity of the official inspection service;
(iii) will meet training requirements and personnel standards established by the Secretary under
section 84(g) of this Act;
(iv) will otherwise conduct such training and provide such supervision of its personnel as are
necessary to assure that they will provide official inspection in accordance with this Act and the
regulations and instructions thereunder;
(v) will not charge official inspection fees that are discriminatory or unreasonable;
(vi) if a State or local governmental agency, will not use any moneys collected pursuant to the
charging of fees for any purpose other than the maintenance of the official inspection operation or
other agricultural programs operated by the State or local governmental agency;
(vii) and any related entities do not have a conflict of interest prohibited by section 87 of this Act;
(viii) will maintain complete and accurate records of its organization, staffing, official activities,
and fiscal operations, and such other records as the Secretary may require by regulation;
(ix) if a State or local governmental agency, will employ personnel on the basis of job
qualifications rather than political affiliations;
(x) will comply with all provisions of this Act and the regulations and instructions thereunder; and
(xi) meets other criteria established in regulations issued under this Act relating to official
functions under this Act; and (B) the Secretary determines that the applicant is better able than
any other applicant to provide official inspection service.
(2) Not more than one official agency or State delegated authority pursuant to subsection (e)(2)
of this section for carrying out the inspection provisions of this Act shall be operative at one time
for any geographic area as determined by the Secretary to effectuate the objectives stated in
section 74 of this Act, except that the Secretary may conduct pilot programs to allow more than 1
official agency to carry out inspections within a single geographical area without undermining the
policy stated in section 74 of this Act.
(3) Except as authorized by the Secretary, no official agency or State delegated authority
pursuant to subsection (e)(2) of this section shall officially inspect under this Act any official or
other sample drawn from a lot of grain and submitted for inspection unless such lot of grain is
physically located within the geographic area assigned to the agency by the Secretary at the time
such sample is drawn.
(4) No State or local governmental agency or person shall provide any official inspection for the
purposes of this Act except pursuant to an unsuspended and unrevoked delegation of authority or
designation by the Secretary, as provided in this section, or as provided in section 84(a) of this
Act.
(g) Termination, renewal, amendment, cancellation, and revocation of designations of official
agencies
(1) Designations of official agencies shall terminate at such time as specified by the Secretary but
not later than triennially and may be renewed in accordance with the criteria and procedure
prescribed in subsection (f) of this section.
(2) A designation of an official agency may be amended at any time upon application by the
official agency if the Secretary determines that the amendment will be consistent with the
provisions and objectives of this Act; and a designation will be canceled upon request by the
official agency with ninety days written notice to the Secretary. A fee as prescribed by regulations
of the Secretary shall be paid by the official agency to the Secretary for each such amendment, to
cover the costs incurred by the Secretary in connection therewith, and it shall be deposited in the
fund created in subsection (j) of this section.
(3) The Secretary may revoke a designation of an official agency whenever, after opportunity for
hearing is afforded the agency, the Secretary determines that the agency has failed to meet one or
more of the criteria specified in subsection (f) of this section or the regulations under this Act for
the performance of official functions, or otherwise has not complied with any provision of this Act
or any regulation prescribed or instruction issued to such agency under this Act, or has been
convicted of any violation of other Federal law involving the handling or official inspection of
grain: Provided, That the Secretary may, without first affording the official agency an opportunity
for a hearing, suspend any designation pending final determination of the proceeding whenever
the Secretary has reason to believe there is cause for revocation of the designation and considers
such action to be in the best interest of the official inspection system under this Act.
The Secretary shall afford any such agency an opportunity for a hearing within thirty days after
temporarily suspending such designation.
(h) Official inspections at locations other than export port locations when designated official
agencies are not available.
If the Secretary determines that official inspection by an official agency designated under
subsection (f) of this section is not available on a regular basis at any location (other than at an
export port location) where the Secretary determines such inspection is needed to effectuate the
objectives stated in section 74 of this Act, and that no official agency within reasonable proximity
to such location is willing to provide or has or can acquire adequate personnel and facilities for
providing such service on an interim basis, official inspection shall be provided by authorized
employees of the Secretary, and other persons licensed by the Secretary to perform official
inspection functions, as provided in section 84 of this Act, until such time as the service can be
provided on a regular basis by an official agency.
(i) Official inspections in Canadian ports
The Secretary is authorized to cause official inspection under this chapter to be made as provided
in subsection (a) of section 77 of this Act, in Canadian ports of United States export grain
transshipped through Canadian ports, and pursuant thereto the Secretary is authorized to enter
into an agreement with the Canadian Government for such inspection. All or specified functions
of such inspections shall be performed by official inspection personnel employed by the Secretary
or, except for appeals, by persons operating under a contract with the Secretary or as otherwise
provided by agreement with the Canadian Government.
(j) Fees; establishment, amount, payment, etc.
(1) The Secretary shall, under such regulations as the Secretary may prescribe, charge and
collect reasonable inspection fees to cover the estimated cost to the service incident to the
performance of official inspection except when the official inspection is performed by a designated
official agency or by a State under a delegation of authority. The fees authorized by this
subsection shall, as nearly as practicable and after taking into consideration any proceeds from the
sale of samples, cover the costs of the Secretary incident to its performance of official inspection
services in the United States and on United States grain in Canadian ports, including
administrative and supervisory costs related to such official inspection of grain. Such fees, and
the proceeds from the sale of samples obtained for purposes of official inspection which become
the property of the United States, shall be deposited into a fund which shall be available without
fiscal year limitation for the expenses of the Secretary incident to providing services under this
Act.
(2) Each designated official agency and each State agency to which authority has been delegated
under subsection (e) of this section shall pay to the Secretary fees in such amount as the Secretary
determines fair and reasonable and as will cover the estimated costs incurred by the Secretary
relating to supervision of official agency personnel and supervision by the Secretary of the
Secretary's field office personnel, except costs incurred under paragraph (3) of subsection (g) of
this section and sections 85, 86, and 87 of this Act. The fees shall be payable after the services
are performed at such time as specified by the Secretary and shall be deposited in the fund created
in paragraph (1) of this subsection. Failure to pay the fee within thirty days after it is due shall
result in automatic termination of the delegation or designation, which shall be reinstated upon
payment, within such period as specified by the Secretary, of the fee currently due plus interest
and any further expenses incurred by the Secretary because of such termination. The interest rate
on overdue fees shall be as prescribed by the Secretary, but not less than the current average
market yield on outstanding marketable obligations of the United States of comparable maturity,
plus an additional charge of not to exceed 1 per centum per annum as determined by the Secretary
and adjusted to the nearest one-eighth of 1 per centum.
(3) Any sums collected or received by the Secretary under this Act and deposited to the fund
created in paragraph (1) of this subsection and any late payment penalties collected by the
Secretary and credited to such fund may be invested by the Secretary in insured or fully
collateralized, interest-bearing accounts or, at the discretion of the Secretary, by the Secretary of
the Treasury in United States Government debt instruments. The interest earned on such sums
and any late payment penalties collected by the Secretary shall be credited to the fund and shall be
available without fiscal year limitation for the expenses of the Secretary incident to providing
services under this Act.
(4) The duties imposed by paragraph (2) on designated official agencies and State agencies
described in such paragraph and the investment authority provided by paragraph (3) shall expire
on September 30, 2000. After that date, the fees established by the Secretary pursuant to
paragraph (1) shall not cover administrative and supervisory costs related to the official inspection
of grain.
(SEC. 7A) 7 U.S.C. 79a. Weighing authority
(a) Official weighing in accordance with prescribed regulations
The Secretary shall cause official weighing under standards or procedures provided for in section
76 of this Act to be made of all grain required to be officially weighed as provided in section 77 of
this Act, in accordance with such regulations as the Secretary may prescribe.
(b) Official weighing or supervision of weighing at grain elevators, warehouses, or other storage
facilities located other than at export elevators at export port locations The Secretary is
authorized to cause official weighing or supervision of weighing under standards or procedures
provided in section 76 of this Act to be performed at any grain elevator, warehouse, or other
storage or handling facility located other than at export elevators at export port locations at which
official inspection is provided pursuant to the provisions of this Act, in such manner as the
Secretary deems appropriate and under such regulations as the Secretary may provide.
(c) Personnel performing official weighing or supervision of weighing at locations at which
official inspection is provided
(1) With respect to official weighing or supervision of weighing for locations at which official
inspection is provided by the Secretary, the Secretary shall cause such official weighing or
supervision of weighing to be performed by official inspection personnel employed by the
Secretary.
(2) With respect to official weighing or supervision of weighing for any location at which official
inspection is provided other than by the Secretary, the Secretary is authorized, with respect to
export port locations, to delegate authority to perform official weighing or supervision of
weighing to the State agency providing official inspection service at such location, and with
respect to any other location, to designate the agency or person providing official inspection
service at such location to perform official weighing or supervision of weighing, if such agency or
person qualifies for a delegation of authority or designation under section 79 of this Act, except
that where the term "official inspection" is used in such section it shall be deemed to refer to
"official weighing" or "supervision of weighing" under this section. If such agency or person is
not available to perform such weighing services, or the Secretary determines that such agency or
person is not qualified to perform such weighing services, then (A) at export port locations
official weighing or supervision of weighing shall be performed by official inspection personnel
employed by the Secretary, and (B) at any other location, the Secretary is authorized to cause
official weighing or supervision of weighing to be performed by official inspection personnel
employed by the Secretary or designate any State or local governmental agency, or any person to
perform official weighing or supervision of weighing, if such agency or person meets the same
criteria that agencies must meet to be designated to perform official inspection as set out in
section 79 of this Act, except that where the term "official inspection" is used in such section it
shall be deemed to refer to "official weighing" or "supervision of weighing" under this section.
Delegations and designations made pursuant to this subsection shall be subject to the same
provisions for delegations and designations set forth in subsection (g) of section 79 of this Act.
(d) Official weighing in Canadian ports
The Secretary is authorized to cause official weighing under this Act to be made, as agreement
provided in subsection (a) of section 77 of this Act, in Canadian ports of United States export
grain transshipped through Canada; and pursuant thereto the Secretary is authorized to enter into
an agreement with the Canadian Government for such official weighing. All or specified functions
of such weighing shall be performed by official inspection personnel employed by the Secretary
or, except for appeals, by persons operating under a contract with the Secretary or as otherwise
provided by agreement with the Canadian Government.
(e) Official weighing or supervision of weighing upon request of operators of grain
elevators, warehouses, or other storage or handling facilities
The Secretary is further authorized to cause official weighing or supervision of weighing under
standards or procedures provided for in section 76 of this Act to be made at grain elevators,
warehouses, or other storage or handling facilities not subject to subsection (a) or (b) of this
section, upon request of the operator of such grain elevator, warehouse, or other storage or
handling facility and in accordance with such regulations as the Secretary may prescribe.
(f) Demonstrated willingness of operators of grain elevators, warehouses, or other storage or
handling facilities to meet equipment and personnel requirements
No official weighing or supervision of weighing shall be provided for the purpose of this Act at
any grain elevator, warehouse, or other storage or handling facility until such time as the operator
of the facility has demonstrated to the satisfaction of the Secretary that the operator (1) has and
will maintain, in good order, suitable grain-handling equipment and accurate scales for all
weighing of grain at the facility, in accordance with the regulations of the Secretary; (2) will
permit only competent persons with a reputation for honesty and integrity and who are approved
by the Secretary to operate the scales and to handle grain in connection with weighing of the
grain, in accordance with this Act; (3) when weighing is to be done by persons other than official
inspection personnel, will require such persons to operate the scales in accordance with the
regulations of the Secretary and to require that each lot of grain for delivery from any railroad car,
truck, barge, vessel, or other means of conveyance at the facility is entirely removed from such
means of conveyance and delivered to the scales without avoidable waste or loss, and each lot of
grain weighed at the elevator for shipment from the facility is entirely delivered to the means of
conveyance for which intended, and without avoidable waste or loss, in accordance with the
regulations of the Secretary; (4) will provide all assistance needed by the Secretary for making any
inspection or examination and carrying out other functions at the facility pursuant to this Act; and
(5) will comply with all other requirements of this Act and the regulations hereunder.
(g) Official certificates as evidence
Official certificates setting out the results of official weighing or supervision of weighing, issued
and not canceled under this Act, shall be received by all officers and all courts of the United States
as prima facie evidence of the truth of the facts stated therein.
(h) Weighing prohibited when not in accordance with prescribed procedures
No State or local governmental agency or person shall weigh or state in any document the weight
of grain determined at a location where official weighing is required to be performed as provided
for in this section except in accordance with the procedures prescribed pursuant to this section.
(i) Unauthorized weighing prohibited
No State or local governmental agency or person other than an authorized employee of the
Secretary shall perform official weighing or supervision of weighing for the purposes of this Act
except in accordance with the provisions of an unsuspended and unrevoked delegation of
authority of designation by the Secretary as provided in this section or as otherwise provided in
section 79(i) of this Act and subsection (d) of this section. Not more than one official agency or
State delegated authority pursuant to subsection (c)(2) of this section for carrying out the
weighing provisions of this Act shall be operative at one time for any geographic area as
determined by the Secretary to effectuate the objectives stated in section 74 of this Act, except
that the Secretary may conduct pilot programs to allow more than 1 official agency to carry out
the weighing provisions within a single geographic area without undermining the policy stated in
section 74 of this Act.
(j) Authority under United States Warehouse Act not limited
The provisions of this section shall not limit any authority vested in the Secretary under the United
States Warehouse Act (39 Stat. 486, as amended; 7 U.S.C. 241 et seq.).
(k) Access to elevators, warehouses, or other storage or handling facilities
The representatives of the Secretary shall be afforded access to any elevator, warehouse, or other
storage or handling facility from which grain is delivered for shipment in interstate or foreign
commerce or to which grain is delivered from shipment in interstate or foreign commerce and all
facilities therein for weighing grain.
(l) Fees; establishment, amount, payment, etc.
(1) The Secretary shall, under such regulations as the Secretary may prescribe, charge and collect
reasonable fees to cover the estimated costs to the Secretary incident to the performance of the
functions provided under this section except as otherwise provided in paragraph (2) of this
subsection. The fees authorized by this paragraph shall, as nearly as practicable, cover the costs
of the Secretary incident to performance of its functions related to weighing, including
administrative and supervisory costs directly related thereto. Such fees shall be deposited into the
fund created in section 79(j) of this Act.
(2) Each agency to which authority has been delegated under this section and each agency or
other person which has been designated to perform functions related to weighing under this
section shall pay to the Secretary fees in such amount as the Secretary determines fair and
reasonable and as will cover the costs incurred by the Secretary relating to supervision of the
agency personnel and supevision by the Secretary of the Secretary's field office personnel incurred
as a result of the functions performed by such agencies, except costs incurred under sections
79(g)(3), 85, 86, and 87(c) of this Act. The fees shall be payable after the services are performed
at such times as specified by the Secretary and shall be deposited in the fund created in section
79(j) of this Act. Failure to pay the fee within thirty days after it is due shall result in automatic
termination of the delegation or designation, which shall be reinstated upon payment, within such
period as specified by the Secretary, of the fee currently due plus interest and any further expenses
incurred by the Secretary because of such termination. The interest rate on overdue fees shall be
as prescribed by the Secretary, but not less than the current average market yield on outstanding
marketable obligations of the United States of comparable maturity, plus an additional charge of
not to exceed 1 per centum per annum as determined by the Secretary, and adjusted to the nearest
one-eighth of 1 per centum.
(3) The authority provided to the Secretary by paragraph (1) and the duties imposed by
paragraph (2) on agencies and other persons described in such paragraph shall expire on
September 30, 2000. After that date, the Secretary shall, under such regulations as the Secretary
may prescribe, charge and collect reasonable fees to cover the estimated costs of official weighing
and supervision of weighing except when the official weighing or supervision of weighing is
performed by a designated official agency or by a State under a delegation of authority. The fees
authorized by this paragraph shall, as nearly as practicable, cover the costs of the Secretary
incident to its performance of official weighing and supervision of weighing services in the United
States and on United States grain in Canadian ports, excluding administrative and supervisory
costs. The fees authorized by this paragraph shall be deposited into a fund which shall be
available without fiscal year limitation for the expenses of the Secretary incident to providing
services under this Act.
(SEC. 7B) 7 U.S.C. 79b. Testing of equipment
(a) Random and periodic testing at least annually; fees
The Secretary shall provide for the testing of all equipment used in the sampling, grading,
inspection, and weighing for the purpose of official inspection, official weighing, or supervision of
weighing of grain located at all grain elevators, warehouses, or other storage or handling facilities
at which official inspection or weighing services are provided under this Act, to be made on a
random and periodic basis, but at least annually and under such regulations as the Secretary may
prescribe, as the Secretary deems necessary to assure the accuracy and integrity of such
equipment. Such regulations shall provide for the charging and collection of reasonable fees to
cover the estimated costs to the Secretary incident to the performance of such testing by
employees of the Secretary. Such fees shall be deposited into the fund created by section 79(j) of
this Act.
(b) Authorization
The Secretary is authorized to cause such testing provided for in subsection (a) to be performed
(1) by personnel employed by the Secretary, or (2) by States, political subdivisions thereof, or
persons under the supervision of the Secretary, under such regulations as the Secretary may
prescribe.
(c) Restrictions
Notwithstanding any other provision of law, no person shall use for the purposes of this Act any
such equipment not approved by the Secretary.
(SEC. 7D) 7 U.S.C. 79d. Limitation on administrative and supervisory costs
The total administrative and supervisory costs which may be incurred under this Act for services
performed (excluding standardization, compliance, and foreign monitoring activities) for each of
the fiscal years 1989 through 2000 shall not exceed 40 per centum of the total costs for such
activities carried out by the Secretary for such year.
(SEC. 8) 7 U.S.C. 84. Licenses of inspectors
(a) Authorization
The Secretary is authorized (1) to issue a license to any individual upon presentation to the
Secretary of satisfactory evidence that such individual is competent, and is employed (or is
supervised under a contractual arrangement) by an official agency or a State agency delegated
authority under section 79 or 79a of this Act, to perform all or specified functions involved in
original inspection or reinspection functions involved in official inspection, or in the official
weighing or the supervision of weighing, other than appeal weighing, of grain in the United
States; (2) to authorize any competent employee of the Secretary to (A) perform all or specified
original inspection, reinspection, or appeal inspection functions involved in official inspection of
grain in the United States, or of United States grain in Canadian ports, (B) perform official
weighing or supervision of weighing (including appeal weighing) of grain in the United States, or
of United States grain in Canadian ports, (C) supervise the official inspection, official weighing, or
supervision of weighing of grain in the United States and of United States grain in Canadian ports
or the testing of equipment, and (D) perform monitoring activities in foreign ports with respect to
grain officially inspected and officially weighed under this Act; (3) to contract with any person or
governmental agency to perform specified sampling, laboratory testing, and similar technical
functions and to license competent persons to perform such functions pursuant to such contract;
and (4) to contract with any competent person for the performance of monitoring activities in
foreign ports with respect to grain officially inspected and officially weighed under this Act.
Except as otherwise provided in sections 79(i) and 79a(d) of this Act, no person shall perform
any official inspection or weighing function for purposes of this Act unless such person holds an
unsuspended and unrevoked license or authorization from the Secretary under this Act.
(b) Duration of licenses; suspension; reinstatement
All classes of licenses issued under this Act shall terminate triennially on a date or dates to be
fixed by regulation of the Secretary: Provided, That any license shall be suspended automatically
when the licensee ceases to be employed by an official agency or by a State agency under a
delegation of authority pursuant to this Act or to operate under the terms of a contract for the
conduct of any functions under this Act: Provided further, That subject to subsection (c) of this
section such license shall be reinstated if the licensee is employed by an official agency or by a
State agency under a delegation of authority pursuant to this Act or resumes operation under such
a contract within one year of the suspension date and the license has not expired in the interim.
(c) Examination of applicants; reexamination
The Secretary may require such examinations and reexaminations as the Secretary may deem
warranted to determine the competence of any applicants for licenses, licensees, or employees of
the Secretary, to perform any official inspection or weighing function under this Act.
(d) Inspectors performing under contract not deemed Federal employees
Persons employed or supervised under a contractual arrangement by an official agency (including
persons employed by a State agency under a delegation of authority pursuant to this Act) and
persons performing official inspection functions under contract with the Secretary shall not, unless
otherwise employed by the Federal Government, be determined to be employees of the Federal
Government of the United States: Provided, That such persons shall be considered in the
performance of any official inspection, official weighing, or supervision of weighing function as
prescribed by this Act or by the rules and regulations of the Secretary, as persons acting for or on
behalf of the United States, for the purpose of determining the application of section 201 of title
18 of the United States Code, to such persons and as employees of the Department of Agriculture
assigned to perform inspection functions for the purposes of sections 1114 and 111 of title 18 .
(e) Civil Service exemptions
The Secretary may hire (without regard to the provisions of title 5 of the United States Code,
governing appointments in the competitive service) as official inspection personnel any individual
who is licensed (on the date of enactment of the United States Grain Standards Act of 1976) to
perform functions of official inspection under the United States Standards Act and as personnel to
perform supervisory weighing or official weighing functions any individual who, on the date of
enactment of the United States Grain Standards Act of 1976, was performing similar functions:
Provided, That the Secretary determines that such individual is of good moral character and is
technically and professionally qualified for the duties to which the individual will be assigned. The
Secretary may compensate such personnel at rate within the appropriate grade of the General
Schedule as the Secretary deems necessary without regard to section 5333 of title 5 of the United
States Code.
(f) Periodic rotation of personnel
The Secretary shall provide for the periodic rotation of supervisory personnel and official
inspection personnel employed by the Secretary as the Secretary deems necessary to preserve the
integrity of the official inspection and weighing system provided by this Act.
(g) Personnel standards
The Secretary shall develop and effectuate standards for the recruiting, training, and supervising
of official inspection personnel and appropriate work production standards for such personnel,
which shall be applicable to the Secretary, all State agencies under delegation of authority
pursuant to this Act, and all official agencies and all persons licensed or authorized to perform
functions under this Act: Provided, That persons licensed or authorized on the date of enactment
of the United States Grain Standards Act of 1976 to perform any official function under this Act,
shall be exempted from the uniform recruiting and training provisions of this subsection and
regulations or standards issued pursuant thereto if the Secretary determines that such persons are
technically and professionally qualified for the duties to which they will be assigned and they agree
to complete whatever additional training the Secretary deems necessary.
(SEC. 9) 7 U.S.C. 85. Suspension, revocation, and refusal to renew licenses; hearings;
grounds; temporary suspension
The Secretary may refuse to renew, or may suspend or revoke, any license issued under this Act
whenever, after the licensee has been afforded an opportunity for a hearing, the Secretary shall
determine that such licensee is incompetent, or has inspected or weighed or supervised the
weighing of grain for purposes of this Act by any standard or criteria other than as provided for in
this Act, or has issued, or caused the issuance of, any false or incorrect official certificate or other
official form, or has knowingly or carelessly inspected or weighed or supervised the weighing of
grain improperly under this Act, or has accepted any money or other consideration, directly or
indirectly, for any neglect or improper performance of duty, or has used the license or allowed it
to be used for any improper purpose, or has otherwise violated any provision of this Act or of the
regulations prescribed or instructions issued to the licensee by the Secretary under this Act. The
Secretary may, without first affording the licensee an opportunity for a hearing, suspend any
license temporarily pending final determination when the Secretary deems such action to be in the
best interest of the official inspection system under this Act. The Secretary may summarily revoke
any license whenever the licensee has been convicted of any offense prohibited by section 87b of
this Act or convicted of any offense proscribed by title 18 of the United States Code, with respect
to performance of functions under this Act.
(SEC. 10) 7 U.S.C. 86. Refusal of inspection and weighing services; civil penalties
(a) Grounds for refusal of services
The Secretary may (for such period, or indefinitely, as the Secretary deems necessary to effectuate
the purposes of this Act) refuse to provide official inspection or the services related to weighing
otherwise available under this Act with respect to any grain offered for such services, or owned,
wholly or in part, by any person if the Secretary determines (1) that the individual (or in case such
person is a partnership, any general partner; or in case such person is a corporation, any officer,
director, or holder or owner of more than 10 per centum of the voting stock; or in case such
person is an unincorporated association or other business entity, any officer or director, thereof;
or in case of any such business entity, any individual who is otherwise responsibly connected with
the business) has knowingly committed any violation of section 87b of this Act or has been
convicted of any violation or other Federal law with respect to the handling, weighing, official
inspection of grain, or that official inspection or the services related to weighing have been
refused for any of the above-specified causes (for a period which has not expired) to such person,
or any other person conducting a business with which the former was, at the time such cause
existed, or is responsibly connected; and (2) that providing such service with respect to such grain
would be inimical to the integrity of the service.
(b) Persons responsibly connected with a business
For purposes of paragraph (a) of this section, a person shall be deemed to be responsibly
connected with a business if the person was or is a partner, officer, director, or holder or owner of
10 per centum of more or its voting stock, or an employee in a managerial or executive capacity.
(c) Civil penalties
In addition to, or in lieu of, penalties provided under section 87c of this Act, or in addition to, or
in lieu of, refusal of official inspection or services related to weighing in accordance with this
section, the Secretary may assess against any person who has knowingly committed any violation
of section 87b of this Act or has been convicted of any violation of other Federal law with respect
to the handling, weighing, or official inspection of grain a civil penalty not to exceed $75,000 for
each such violation as the Secretary determines is appropriate to effectuate the objectives stated in
section 74 of this Act.
(d) Opportunity for hearing; temporary refusal without hearing pending final determination
Before official inspection or services related to weighing is refused to any person or a civil penalty
is assessed against any person under this section, such person shall be afforded opportunity for a
hearing in accordance with sections 554, 556, and 557 of title 5 of the United States Code:
Provided, That the Secretary may, without first affording the person a hearing refuse official
inspection or services related to weighing temporarily pending final determination whenever the
Secretary has reason to believe there is cause for refusal of inspection or services related to
weighing and considers such action to be in the best interest of the official inspection system
under this Act. The Secretary shall afford such person an opportunity for a hearing within seven
days after temporarily refusing official inspection or services related to weighing; and such hearing
and ancillary procedures related thereto shall be conducted in an expedited manner.
(e) Collection and disposition of civil penalties
Moneys received in payment of such civil penalties shall be deposited in the general fund of the
United States Treasury. Upon any failure to pay the penalties assessed under this section, the
Secretary may request the Attorney General of the United States to institute a civil action to
collect the penalties in the appropriate court identified in subsection (h) of section 87f of this Act
for the jurisdiction in which the respondent is found or resides or transacts business, and such
court shall have jurisdiction to hear and decide any such action.
(SEC. 11) 7 U.S.C 87. Conflicts of interest
(a) Prohibition with respect to persons licensed or authorized by Secretary to perform official
functions
No person licensed or authorized by the Secretary to perform any official function under this Act,
or employed by the Secretary in otherwise carrying out any of the provisions of this Act, shall,
during the term of such license, authorization, or employment, (a) be financially interested
(directly or otherwise) in any business entity owning or operating any grain elevator or warehouse
or engaged in the merchandising of grain, or (b) be in the employment of, or accept gratuities
from, any such entity, or (c) be engaged in any other kind of activity specified by regulation of the
Secretary as involving a conflict of interest: Provided, however, That the Secretary may license
qualified employees of any grain elevators or warehouses to perform official sampling functions,
under such conditions as the Secretary may by regulation prescribe, and the Secretary may by
regulation provide such other exceptions to the restrictions of this section as the Secretary
determines are consistent with the purposes of this Act.
(b) Prohibition with respect to personnel of official or State agencies and business or
governmental entities related to such agencies; substantial stockholder; use of official inspection
service; authority delegation; report to Congressional committees
(1) No official agency or a State agency delegated authority under this Act, or any member,
director, officer, or employee thereof, and no business or governmental entity related to any such
agency, shall be employed in or otherwise engaged in, or directly or indirectly have any stock or
other financial interest in, any business involving the commercial transportation, storage,
merchandising, or other commercial handling of grain, or the use of official inspection service
(except that in the case of a producer such use shall not be prohibited for grain in which the
producer does not have an interest); and no business or governmental entity conducting any such
business, or any member, director, officer, or employee thereof, and no other business or
governmental entity related to any such entity, shall operate or be employed by or directly or
indirectly have any stock or other financial interest in, any official agency or a State agency
delegated inspection authority. Further, no substantial stockholder in any incorporated official
agency shall be employed in or otherwise engaged in, or be a substantial stockholder in any
corporation conducting any such business, or directly or indirectly have any other kind of financial
interest in any such business; and no substantial stockholder in any corporation conducting such a
business shall operate or be employed by or be a substantial stockholder in, or directly or
indirectly have any other kind of financial interest in, any official agency.
(2) A substantial stockholder of a corporation shall be any person holding 2 per centum or more,
or one hundred shares or more, of the voting stock of the corporation, whichever is the lesser
interest. Any entity shall be considered to be related to another entity if it owns or controls, or is
owned or controlled by, such other entity, or both entities are owned or controlled by another
entity.
(3) Each State agency delegated official weighing authority under section 79a and each State or
local agency or other person designated by the Secretary under such section to perform official
weighing or supervision of weighing shall be subject to the provisions of subsection (b) of this
section. The term "use of official inspection service" shall be deemed to refer to the use of the
services provided under such a delegation or designation.
(4) If a State or local governmental agency is delegated authority to perform official inspection or
official weighing or supervision of weighing, or a State or local governmental agency is
designated as an official agency, the Secretary shall specify the officials and other personnel
thereof to which the conflict of interest provisions of this subsection (b) apply.
(5) Notwithstanding the foregoing provisions of this subsection, the Secretary may delegate
authority to a State agency or designate a governmental agency, board of trade, chamber of
commerce, or grain exchange to perform official inspection or perform official weighing or
supervision of weighing except that for purposes of supervision of weighing only, the Secretary
may also designate any other person, if the Secretary determines that any conflict of interest which
may exist between the agency or person or any member, director, officer, employee, or
stockholder thereof and any business involving the transportation, storage, merchandising, or
other handling of grain or use of official inspection or weighing service is not such as to
jeopardize the integrity or the effective and objective operation of the functions performed by
such agency. Whenever the Secretary makes such a determination and makes a delegation or
designation to an agency that has a conflict of interest otherwise prohibited by this subsection, the
Secretary shall, within thirty days after making such a determination, submit a report to the
Committee on Agriculture of the House of Representatives and the Committee on Agriculture and
Forestry of the Senate, detailing the factual bases for such determination.
(c) Exception for business of weighing grain
The provisions of this section shall not prevent an official agency or State agency delegated
authority under this Act from engaging in weighing grain or the business of weighing grains.
(SEC. 12) 7 U.S.C.87a. Records
(a) Samples of grain
Every official agency, every State agency delegated authority under this Act and every
personlicensed to perform any official inspection or official weighing or supervision of weighing
function under this Act shall maintain such samples of officially inspected grain and such other
records as the Secretary may by regulation prescribe for the purpose of administration and
enforcement of this Act.
(b) Period of maintenance
Every official agency, every State agency delegated authority under this Act, and every person
licensed to perform any official inspection or official weighing or supervision of weighing function
under this Act required to maintain records under this section shall keep such records for a period
of five years after the inspection, weighing, or transaction, which is the subject of the record,
occurred: Provided, That grain samples shall be required to be maintained only for such period
not in excess of ninety days as the Secretary, after consultation with the grain trade and taking
into account the needs and circumstances of local markets, shall prescribe; and in specific cases
other records may be required by the Secretary to be maintained for not more than three years in
addition to the five-year period whenever in the judgment of the Secretary the retention of such
records for the longer period is necessary for the effective administration and enforcement of this
Act.
(c) Access to records; audits
Every official agency, every State agency delegated authority under this Act, and every person
licensed to perform any official inspection or official weighing or supervision of weighing function
under this Act required to maintain records under this section shall permit any authorized
representative of the Secretary or the Comptroller General of the United States to have access to,
and to copy, such records at all reasonable times. The Secretary shall, from time to time, perform
audits of official agencies and State agencies delegated authority under this Act in such manner
and at such periodic intervals as the Secretary deems appropriate.
(d) Maintenance of records by persons or entities receiving official inspection or weighing
services; access to records and facilities
Every State, political subdivision thereof, or person who is the owner or operator of a commercial
grain elevator, warehouse, or other storage or handling facility or is engaged in the merchandising
of grain other than as a producer, and who, at any time, has obtained or obtains official inspection
or weighing services shall maintain such complete and accurate records for such period of time as
the Secretary may, by regulation, prescribe for the purpose of the administration and enforcement
of this Act, and permit any authorized representative of the Secretary, at all reasonable times, to
have access to, and to copy, such records and to have access to any grain elevator, warehouse, or
other storage or handling facility used by such persons for handling of grain.
(SEC. 13) 7 U.S.C.87b. Prohibited acts
(a) No person shall
(1) knowingly falsely make, issue, alter, forge, or counterfeit any official certificate or other
official form or official mark;
(2) knowingly utter, publish, or use as true any falsely made, issued, altered, forged, or
counterfeited official certificate or other official form or official mark, or knowingly possess,
without promptly notifying the Secretary or the representative of the Secretary, or fail to
surrender to such a representative upon demand, any falsely made, issued, altered, forged, or
counterfeited official certificate or other official form, or any device for making any official mark
or simulation thereof, or knowingly possess any grain in a container bearing any falsely made,
issued, altered, forged, or counterfeited official mark without promptly giving such notice;
(3) knowingly cause or attempt (whether successfully or not) to cause the issuance of a false or
incorrect official certificate or other official form by any means, including but not limited to
deceptive loading, handling, weighing, or sampling of grain, or submitting grain for official
inspection or official weighing or supervision of weighing knowing that it has been deceptively
loaded, handled, weighed, or sampled, without disclosing such knowledge to the official
inspection personnel before official sampling or official weighing or supervision of weighing;
(4) alter any official sample of grain in any manner or, knowing that an official sample has been
altered, thereafter represent it as an official sample;
(5) knowingly use any official grade designation or official mark on any container of grain by
means of a tag, label, or otherwise, unless the grain in such container was officially inspected on
the basis of an official sample taken while the grain was being loaded into or was in such container
or officially weighed, respectively, and the grain was found to qualify for such designation or
mark;
(6) knowingly make any false representation that any grain has been officially inspected, or
officially inspected and found to be of a particular kind, class, quality, or condition, or that
particular facts have been established with respect to grain by official inspection under this Act, or
that any weighing service under this Act has been performed with respect to grain;
(7) improperly influence, or attempt to improperly influence, any official inspection personnel or
personnel of agencies delegated authority or of agencies or other persons designated under the
Act; or any officer or employee of the Department of Agriculture with respect to the performance
of the duties of the officer, employee, or other person under this Act;
(8) forcibly assault, resist, oppose, impede, intimidate, or interfere with any official inspection
personnel or personnel of agencies delegated authority or of agencies or other persons designated
under this Act or any officer or employee of the Department of Agriculture in, or on account of,
the performance of the person's duties under this Act;
(9) falsely represent that the person is licensed or authorized to perform an official inspection or
official weighing or supervision of weighing function under this Act;
(10) use any false or misleading means in connection with the making or filing of an application
for official inspection or official weighing or supervision of weighing;
(11) violate section 77, 78, 79, 79a, 79b, 84, 87, 87a, 87e, or 87f-1 of this Act;
(12) knowingly engage in falsely stating or falsifying the weight of any grain shipped in interstate
or foreign commerce by any means, including, but not limited to, the use of inaccurate, faulty, or
defective weighing equipment; or
(13) knowingly prevent or impede any buyer or seller of grain or other person having a financial
interest in grain, or the authorized agent of any such person, from observing the loading of the
grain inspected under this Act and the weighing, sampling, and inspection of such grain under
conditions prescribed by the Secretary.
(b) No person licensed or authorized to perform any function under this Act shall
(1) commit any offense prohibited by subsection (a);
(2) knowingly perform improperly any official sampling or other official inspection or weighing
function under this Act;
(3) knowingly execute or issue any false or incorrect official certificate or other official
form; or
(4) accept money or other consideration, directly or indirectly, for any neglect or improper
performance of duty.
(c) An offense shall be deemed to have been committed knowingly under this Act if it resulted
from gross negligence or was committed with knowledge of the pertinent facts.
(d)(1) Subject to paragraphs (2) and (3), to ensure the quality of grain marketed in or exported
from the United States
(A) no dockage or foreign material, as defined by the Secretary, once removed from grain shall
be recombined with any grain; and
(B) no dockage or foreign material of any origin may be added to any grain.
(2) Nothing in paragraph (1) shall be construed to prohibit
(A) the treatment of grain to suppress, destroy, or prevent insects and fungi injurious to stored
grain;
(B) the marketing, domestically or for export, of dockage or foreign material removed from grain
if such dockage or foreign material is marketed
(i) separately and uncombined with any such whole grain;
(ii) in pelletized form; or
(iii) as a part of a processed ration for livestock, poultry, or fish;
(C) the blending of grain with similar grain of a different quality to adjust the quality of the
resulting mixture;
(D) the recombination of broken corn or broken kernels, as defined by the Secretary, with grain
of the type from which the broken corn or broken kernels were derived;
(E) effective for the period ending December 31, 1987, the recombination of dockage or foreign
material, except dust, removed at an export loading facility from grain destined for shipment as a
cargo under one export official certificate of inspection if
(i) the recombination occurs during the loading of the cargo;
(ii) the purpose is to ensure uniformity of dockage or foreign material throughout that specific
cargo; and
(iii) the separation and recombination are conducted in accordance with regulations issued by the
Secretary; or
(F) the addition to grain of a dust suppression, or the addition of confetti or any other similar
material that serves the same purpose in a quantity necessary to facilitate identification of
ownership or origin of a particular lot of grain.
(3)(A) The Secretary may, by regulations, exempt from paragraph (1) the last handling of grain in
the final sale and shipment of such grain to a domestic user or processor if such exemption is
determined by the Secretary to be in the best economic interest of producers, grain merchants, the
industry involved, and the public.
(B) Grain sold under an exemption authorized by this paragraph shall be consumed or processed
into one or more products by the purchaser, but may not be resold into commercial channels for
such grain or blended with other grain for resale. Neither products nor by-products derived
therefrom (except vegetable oils as defined by the Secretary and used as a dust suppressant) shall
be blended with or added to grain in commercial channels.
(e)(1) The Secretary may prohibit the contamination of sound and pure grain as a result of the
introduction of
(A) nongrain substances;
(B) grain unfit for ordinary commercial purposes; or
(C) grain that exceeds action limits established by the Food and Drug Administration of grain
having residues that exceed the tolerance levels established by the Environmental Protection
Agency.
(2) No prohibition imposed under this section shall be construed to restrict the marketing of any
grain so long as the grade or condition of the grain is properly identified.
(3) Prior to taking action under this subsection, the Secretary shall promulgate regulations after
providing for notice and an opportunity for public comment, that identify and define actions and
conditions that are subject to prohibition.
(4) In no case shall the Secretary prohibit the blending of an entire grade of grain.
(5) In implementing paragraph (1)(C), the Secretary shall report any prohibition to other
appropriate public health agencies.
(SEC. 14) 7 U.S.C. 87c. Criminal penalties
(a) Any person who commits an offense prohibited by section 87b of this Act (except an offense
prohibited by paragraphs (a)(7), (a)(8), and (b)(4) in which case the person shall be subject to the
general penal statutes in title 18 of the United States Code relating to crimes and offenses against
the United States) shall be guilty of a felony and shall, on conviction thereof, be subject to
imprisonment for not more than five years, or a fine of not more than $20,000, or both such
imprisonment and fine.
(b) Nothing in this Act shall be construed as requiring the Secretary to report minor violations of
this Act for criminal prosecution whenever the Secretary believes that the public interest will be
adequately served by a suitable written notice or warning, or to report any violation of this Act for
prosecution when the Secretary believes that institution of a proceeding under section 86 of this
Act will obtain compliance with this Act and the Secretary institutes such a proceeding.
(c) Any officer or employee of the Department of Agriculture assigned to perform weighing
functions under this Act shall be considered as an employee of the Department of Agriculture
assigned to perform inspection functions for the purposes of sections 1114 and 111 of title 18 of
the United States Code.
(SEC. 15) 7 U.S.C. 87d. Responsibility for acts of others
When construing and enforcing the provisions of this title, the act, omission, or failure of any
official, agent, or other person acting for or employed by any association, partnership, or
corporation within the scope of the employment or office shall, in every case, also be deemed the
act, omission, or failure of such association, partnership, or corporation as well as that of the
person.
(SEC. 16) 7 U.S.C. 87e. General Authorities
(a) Authority of Secretary
The Secretary is authorized to conduct such investigations; hold such hearings; require such
reports from any official agency, and State agency delegated authority under this Act, licensee, or
other person and prescribe such rules, regulations, and instructions, as the Secretary deems
necessary to effectuate the purposes or provisions of this Act. Such regulations may require, as a
condition for official inspection or official weighing or supervision of weighing, among other
things, (1) that there be installed specified sampling, handling, weighing, and monitoring
equipment in grain elevators, warehouses, and other grain storage or handling facilities, (2) that
approval of the Secretary be obtained as to the condition of vessels and other carriers or
receptacles for the transporting or storing of grain, and (3) that persons having a financial interest
in the grain which is to be inspected (or their agents) shall be afforded an opportunity to observe
the weighing, loading, and official inspection thereof, under conditions prescribed by the
Secretary.
Whether any certificate, other form, representation, designation, or other description is false,
incorrect, or misleading within the meaning of this Act shall be determined by tests made in
accordance with such procedures as the Secretary may adopt to effectuate the objectives of this
Act, if the relevant facts are determinable by such tests. Proceedings under section 85 of this Act
for refusal to renew, or for suspension or revocation of, a license shall not, unless requested by
the respondent, be subject to the administrative procedure provisions in sections 554, 556, and
557 of title 5 of the United States Code.
(b) Investigation of reports or complaints of discrepancies and abuses in official inspection or
weighing of grain
The Secretary is authorized to investigate reports or complaints of discrepancies and abuses in the
official inspection and weighing of grain under this Act. The Secretary shall prescribe by
regulation procedures for (1) promptly investigating (A) complaints of foreign grain purchasers
regarding the official inspection or official weighing of grain shipped from the United States, (B)
the cancellation of contracts for the export sale of grain required to be inspected or weighed
under this Act and (C) any complaint regarding the operation or administration of this Act or any
official transaction with which this Act is concerned; and (2) taking appropriate action on the
basis of the findings of any investigation of such complaints.
(c) Monitoring of United States grain upon its entry into foreign countries
The Secretary is authorized to cause official inspection personnel to monitor in foreign nations
which are substantial importers of grain from the United States, grain imported from the United
States upon its entry into the foreign nation, to determine whether such grain is of a comparable
kind, class, quality, and condition after considering the handling methods and conveyance utilized
at the time of loading, and the same quantity that it was certified to be upon official inspection and
official weighing in the United States.
(d) Authority of Office of Investigation of Department of Agriculture
The Office of Investigation of the Department of Agriculture (or such other organization or
agency within the Department of Agriculture which may be delegated the authority, in lieu
thereof, to conduct investigations on behalf of the Department of Agriculture) shall conduct such
investigations regarding the operation or administration of this Act or any official transaction with
which this Act is concerned, as the Director thereof deems necessary to assure the integrity of
official inspection and weighing under this Act.
(e) Research program to develop methods of improving accuracy and uniformity in grading grain
The Secretary is authorized to conduct, in cooperation with other agencies within the Department
of Agriculture, a continuing research program for the purpose of developing methods to improve
accuracy and uniformity in grading grain.
(f) Adequate personnel to meet inspection and weighing requirements
To assure the normal movement of grain at all inspection points in a timely manner consistent
with the policy expressed in section 74 of this Act, the Secretary shall, notwithstanding any other
provision of law, provide adequate personnel to meet the inspection and weighing requirements of
this Act.
(g) Testing of certain weighing equipment
(1) Subject to paragraph (2), the Secretary may provide for the testing of weighing equipment
used for the purposes other than weighing grain. The testing shall be performed
(A) in accordance with such regulations as the Secretary may prescribe; and
(B) for a reasonable fee established by regulation or contractual agreement and sufficient to cover,
as nearly as practicable, the estimated costs of the testing performed.
(2) Testing performed under paragraph (1) may not conflict with or impede the objectives
specified in section 74 of this Act.
(h) Testing of grain inspection instruments
(1) Subject to paragraph (2), the Secretary may provide for the testing of grain inspection
instruments used for commercial inspection. The testing shall be performed
(A) in accordance with such regulations as the Secretary may prescribe; and
(B) for a reasonable fee established by regulation or contractual agreement and sufficient to cover,
as nearly as practicable, the estimated costs of the testing performed.
(2) Testing performed under paragraph (1) may not conflict with or impede the objectives
specified in section 74 of this Act.
(i) Additional for fee services
(1) In accordance with such regulations as the Secretary may provide, the Secretary may perform
such other services as the Secretary considers to be appropriate.
(2) In addition to the fees authorized by sections 79, 79a, and 87f-1 of this title, and this section,
the Secretary shall collect reasonable fees to cover the estimated costs of services performed
under paragraph (1) other than standardization and foreign monitoring activities.
(3) To the extent practicable, the fees collected under paragraph (2), together with any proceeds
from the sale of any samples, shall cover the costs, including administrative and supervisory costs,
of services performed under paragraph (1).
(j) Deposit of fees
Fees collected under subsections (g), (h), and (i) of this section shall be deposited into the fund
created under section 79(j) of this Act.
(k) Official courtesies
The Secretary may extend appropriate courtesies to official representatives of foreign countries in
order to establish and maintain relationships to carry out the policy stated in section 74 of this
Act. No gift offered or accepted pursuant to this subsection shall exceed $20 in value.
(SEC. 16A) 7 U.S.C. 87e-1. Purchase or lease of inspection equipment
Notwithstanding the provisions of section 3709 of the Revised Statutes (41 U.S.C. 5) and section
302 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490), the
Secretary of the Federal Grain Inspection Service is authorized to negotiate for and purchase or
lease, from any person licensed or designated (on the date of enactment of this Act) to perform
official inspection functions under the United States Grain Standards Act, at fair market value,
any facilities or equipment which the Secretary determines to be necessary for the conduct of
official inspection.
(SEC. 17) 7 U.S.C. 87f. Enforcement Provisions
(a) Subpena power
For the purposes of this Act, the Secretary shall at all reasonable times have access to, for the
purpose of examination, and the right to copy any documentary evidence of any person with
respect to whom such authority is exercised; and the Secretary shall have power to require by
subpena the attendance and testimony of witnesses and the production of all such documentary
evidence relating to any matter under investigation by the Secretary and may administer oaths and
affirmations, examine witnesses, and receive evidence.
(b) Disobedience of subpena
Such attendance of witnesses, and the production of such documentary evidence, may be required
from any place in the United States, at any designated place of hearing. In case of disobedience to
a subpena the Secretary may invoke the aid of any court designated in paragraph (h) of this
section in requiring the attendance and testimony of witnesses and the production of documentary
evidence.
(c) Court order requiring attendance and testimony of witnesses
Any such court within the jurisdiction of which such inquiry is carried on may, in case of
contumacy or refusal to obey such a subpena issued to any person, issue an order requiring such
person to appear before the Secretary or to produce documentary evidence if so ordered, or to
give evidence touching the matter in question; and any failure to obey such order of the court may
be punished by such court as a contempt thereof.
(d) Fees and mileage costs of witnesses
Witnesses summoned before the Secretary shall be paid the same fees and mileage that are paid
witnesses in the courts of the United States, and witnesses from whom dispositions are taken and
the persons taking the same shall severally be entitled to the same fees as are paid for like services
in the courts of the United States.
(e) Violation of subpena as misdemeanor
Any person who shall neglect or refuse to attend and testify; or to answer any lawful inquiry, or to
produce documentary evidence, if in the person's power to do so, in obedience to the subpena or
lawful requirement of the Secretary, shall be guilty of a misdemeanor, and upon conviction thereof
be subject to imprisonment for not more than 1 year or a fine of not more than $10,000 or both
the imprisonment and fine.
(f) [Repealed by sec. 203 of the Organized Crime Control Act of 1970, P.L. 91-452.]
(g) [Repealed by sec. 19(d) of P.L. 94-582.]
(h) Jurisdiction of courts
The United States district courts, the District Court of Guam, the District Court of the Virgin
Islands, the highest court of American Samoa, and the United States courts of the other territories
and possessions of the United States shall have jurisdiction in cases arising under this Act.
(SEC. 17A) 7 U.S.C. 87f-1. Registration requirements
(a) General Requirements
The Secretary shall provide, by regulation, for the registration of all persons engaged in the
business of buying grain for sale in foreign commerce, and in the business of handling, weighing,
or transporting of grain for sale in foreign commerce. This section shall not apply to (1) any
person who only incidentally or occasionally buys for sale, or handles, weighs, or transports grain
for sale and is not engaged in the regular business of buying grain for sale, or handling, weighing,
or transporting grain for sale;
(2) any producer of grain who only incidentally or occasionally sells or transports grain which the
producer has purchased;
(3) any person who transports grain for hire and does not own a financial interest in such grain; or
(4) any person who buys grain for feeding or processing and not for the purpose of reselling and
only incidentally or occasionally sells such grain as grain.
(b) Required information
(1) All persons required to register under this Act shall submit the following information to the
Secretary:
(A) the name and principal address of the business,
(B) the names of all directors of such business,
(C) the names of the principal officers of such business,
(D) the names of all persons in a control relationship with respect to such business,
(E) a list of locations where the business conducts substantial operations, and
(F) such other information as the Secretary deems necessary to carry out the purposes of this Act.
Persons required to register under this section shall also submit to the Secretary the information
specified in clauses (A) through (F) of this paragraph with respect to any business engaged in the
business of buying grain for sale in interstate commerce, and in the business of handling, weighing,
or transporting of grain for sale in interstate commerce, if, with respect to such business, the
person otherwise required to register under this section is in a control relationship.
(2) For the purposes of this section, a person shall be deemed to be in "control relationship" with
respect to a business required to register under subsection (a) and with respect to applicable
interstate businesses if
(A) such person has an ownership interest of 10 per centum or more in such business, or
(B) a business or group of business entities, with respect to which such person is in a control
relationship, has an ownership interest of 10 per centum or more in such business.
(3) For purposes of clauses (A) and (B) of paragraph (2) of this subsection, a person shall be
considered to own the ownership interest which is owned by his or her spouse, minor children,
and relatives living in the same household.
(c) Registration of certificate
The Secretary shall issue a certificate of registration to persons who comply with the provisions of
this section. The certificate of registration issued in accordance with this section shall be renewed
annually. If there has been any change in the information required under subsection (b), the
person holding such certificate shall, within thirty days of the discovery of such change, notify the
Secretary of such change. No person shall engage in the business of buying grain for sale in
foreign commerce, and in the business of handling, weighing, or transporting of grain in foreign
commerce unless the person has registered with the Secretary as required by this Act and has an
unsuspended and unrevoked certificate of registration.
(d) Suspension or registration of certificates of registration
The Secretary may suspend or revoke any certificate of registration issued under this section
whenever, after the person holding such certificate has been afforded an opportunity for a hearing
in accordance with sections 554, 556, and 557 of title 5 of the United States Code, the Secretary
shall determine that such person has violated any provision of this Act or of the regulations
promulgated thereunder, or has been convicted of any violation involving the handling, weighing,
or inspection of grain under title 18 of the United States Code.
(e) Fees
The Secretary shall charge and collect fees from any person registered under this section. The
amount of such fees shall be determined on the basis of the costs of the Secretary in administering
the registration required by this section. Such fees shall be deposited in, and used as part of, the
fund described in section 79(j) of this Act.
(SEC. 17B) 7 U.S.C. 87f-2. Reporting requirements
(a) General requirements; annual report to Congressional committees
On December 1 of each year, the Secretary shall submit a report to the Committee on Agriculture
of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the
Senate regarding the effectiveness of the official inspection and weighing system under this Act
for the prior fiscal year, with recommendations for any legislative changes necessary to
accomplish the objectives stated in section 74 of this Act.
(b) Notification of Congressional Committee of complaints regarding faulty grain deliveries and
cancellation of export contracts The Secretary shall notify the Committee of Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the
Senate (1) of any complaint regarding faulty grain delivery made to the Department of Agriculture
by a foreign purchaser of the United States grain, within thirty days after a determination by the
Secretary that there is reasonable cause to believe that the grain delivery was in fact faulty, and
(2) notwithstanding the provisions of section 812 of the Agricultural Act of 1970, as added by the
Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c-3), within thirty days after
receipt by the Secretary or the Secretary of notice of the cancellation of any contract for the
export of more than one hundred thousand metric tons of grain.
(c) Submission to Congressional Committee of annual summary of complaints from foreign
purchases and prospective purchasers of grain
On December 1 of each year, the Secretary shall submit to the Committee on Agriculture of the
House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the
Senate a summary of all other complaints received by the Department of Agriculture during the
prior fiscal year from foreign purchasers and prospective purchasers of United States grain and
other foreign purchasers interested in the trade of grain, and the resolution thereof: Provided,
That the summary shall not include a complaint unless reasonable cause exists to believe that the
complaint is valid, as determined by the Secretary.
(SEC. 18) 7 U.S.C. 87g. Relation to State and local laws; separability of provisions
(a) No state or subdivision thereof may require the inspection or description in accordance with
any standards of kind, class, quality, condition, or other characteristics of grain as a condition of
shipment, or sale, of such grain in interstate or foreign commerce, or require any license for, or
impose any other restrictions upon, the performance of any official inspection or weighing
function under this Act by official inspection personnel. Otherwise nothing in this Act shall
invalidate any law or other provision of any State or subdivision thereof in the absence of a
conflict with this Act.
(b) If any provision of this Act or the application thereof to any person or circumstances is held
invalid, the validity of the remainder of the Act and of the application of such provision to other
persons and circumstances shall not be affected thereby.
(SEC. 19) 7 U.S.C. 87h. Appropriations
There are hereby authorized and to be appropriated such sums as are necessary for
standardization and compliance activities, monitoring in foreign ports grain officially inspected
and weighed under this Act, and any other expenses necessary to carry out the provisions of this
Act for each of the fiscal years 1988 through 2000, to the extent that financing is not obtained
from fees and sales of samples as provided for in sections 79, 79a, 79b, 87e, and 87f-1 of this Act.
(SEC. 21) 7 U.S.C. 87j. Advisory committee
(a) Establishment; number and terms of members
(1) Not later than ninety days after October 24, 1988, the Secretary shall establish an advisory
committee to provide advice to the Secretary with respect to implementation of this Act
consistent with the declarations of policy in section 74 of this Act. The advisory committee shall
consist of fifteen members, appointed by the Secretary, who represent the interest of all segments
of the grain producing, processing, storing, merchandising, consuming, and exporting industries,
including grain inspection and weighing agencies and scientists with expertise in research related
to the policies established in section 74 of this Act. Members of the advisory committee shall be
appointed to three-year terms, except that of the initial fifteen members of the advisory committee
first appointed following the enactment of this section, five shall be appointed for terms of one
year and five shall be appointed for terms of two years. No member of the advisory committee
may serve successive terms.
(2) To ensure a smooth transition, the advisory committee established under section 20 (as in
effect prior to October 1, 1988) shall continue in existence until all members of the advisory
committee established under this section are appointed; and the Secretary may appoint members
of the advisory committee established under section 20 to serve on the advisory committee
established under this section, without regard to the time of service of such members on the
advisory committee established under section 20.
(b) Federal Advisory Committee Act as governing
The advisory committee shall be governed by the provisions of the Federal Advisory Committee
Act. (5 U.S.C. App. 2)
(c) Clerical assistance and staff personnel
The Secretary shall provide the advisory committee with necessary clerical assistance and staff
personnel.
(d) Compensation and travel expenses
Members of the advisory committee shall serve without compensation, if not otherwise officers or
employees of the United States, except that members shall, while away from their homes or
regular places of business in the performance of services under this Act, be allowed travel
expenses, including per diem in lieu of subsistence, as authorized under section 5703 of title 5,
United States Code.
(e) Expiration of the Secretary's authority
The authority provided to the Secretary for the establishment and maintenance of an advisory
committee under this section shall expire on September 30, 2000.
(SEC. 22) 7 U.S.C. 87k. Standardizing commercial inspections
(a) Testing equipment
To promote greater uniformity in commercial grain inspection results, the Secretary may work in
conjunction with the National Institute for Standards and Technology and the National
Conference on Weights and Measures or other appropriate governmental, scientific, or technical
organizations to
(1) identify inspection instruments requiring standardization under subsection (b);
(2) establish performance criteria for commercial grain inspection instruments;
(3) develop a national program to approve grain inspection instruments for commercial
inspection; and
(4) develop standard reference materials or other materials or other means necessary for
calibration or testing of approved instruments.
(b) General inspection procedures
To ensure that producers are treated uniformly in delivering grain, the Secretary shall develop
practical and cost-effective procedures for conducting commercial inspections of grain with
respect to the application of quality factors, that result in premiums and discounts. The
procedures shall be made available to country elevators and others making first-point-of-delivery
inspections.
(c) Inspection services and information
To encourage the use of equipment and procedures developed in accordance with subsections
(a) and (b), the Secretary shall provide for official inspection services by the Secretary, States, and
official inspection agencies and provide information on the proper use of sampling and inspection
equipment, application of grain standards, and availability of official inspection services, including
appeals under this Act.
(d) Standardized aflatoxin equipment and procedures
The Secretary shall
(1) establish uniform standards for testing equipment; and
(2) establish uniform testing procedures and sampling techniques; that may be used by processors,
refiners, operators of grain elevators and terminals, and others to accurately detect the level of
aflatoxin contamination of corn in the United States.
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