Notes on 7 U.S.C. § 13 : US Code - Notes

Search Notes on 7 U.S.C. § 13 : US Code - Notes

(Sept. 21, 1922, ch. 369, Sec. 9, 42 Stat. 1003; June 15, 1936, ch.
545, Secs. 2, 11, 49 Stat. 1491, 1501; Pub. L. 90-258, Sec. 25,
Feb. 19, 1968, 82 Stat. 33; Pub. L. 93-463, title II, Sec. 212(d),
title IV, Secs. 401, 409, Oct. 23, 1974, 88 Stat. 1404, 1412, 1414;
Pub. L. 95-405, Sec. 19, Sept. 30, 1978, 92 Stat. 875; Pub. L. 97-
444, title II, Sec. 227, Jan. 11, 1983, 96 Stat. 2316; Pub. L. 99-
641, title I, Secs. 105, 110(3), (4), Nov. 10, 1986, 100 Stat.
3558, 3561; Pub. L. 102-546, title II, Secs. 212(a), 214(a), Oct.
28, 1992, 106 Stat. 3608, 3610; Pub. L. 106-554, Sec. 1(a)(5)
[title I, Sec. 123(a)(22)], Dec. 21, 2000, 114 Stat. 2763, 2763A-
410.)
AMENDMENTS                            
2000 - Subsecs. (a)(2) to (4), (f)(1), (2). Pub. L. 106-554
substituted "registered entity" for "contract market".
1992 - Subsec. (a). Pub. L. 102-546, Sec. 212(a)(1)(A), (C),
added subsec. (a) and struck out former subsec. (a) which related
to penalty for embezzlement and larcenous actions.
Subsec. (b). Pub. L. 102-546, Sec. 212(a)(1)(A), (C), added
subsec. (b) and struck out former subsec. (b) which related to
penalty for price manipulation, cornering, and fraudulent
information.
Subsec. (c). Pub. L. 102-546, Sec. 212(a)(1)(A), (B), (2),
redesignated subsec. (d) as (c), substituted "$500,000" for
"$100,000", and struck out former subsec. (c) which related to
penalty for misdemeanors.
Subsecs. (d) to (f). Pub. L. 102-546, Secs. 212(a)(1)(B), (3),
214(a), redesignated subsec. (e) as (d), substituted "$500,000" for
"$100,000", and added subsec. (f).
1986 - Subsec. (c). Pub. L. 99-641, Sec. 110(3), substituted
"6k," for "6k."
Subsec. (d). Pub. L. 99-641, Sec. 110(4), substituted "advance
guaranty" for "advance guarantee".
Pub. L. 99-641, Sec. 105, inserted "if nonpublic information is
used in the investment transaction, if the investment transaction
is prohibited by rule or regulation of the Commission, or if the
investment transaction is effected by means of any instrument
regulated by the Commission" after "actual commodity", and
substituted provisions which related to foregoing prohibitions not
being applicable to transactions determined by Commission not
contrary to public interest or inconsistent with this subsection
for provisions which read as follows: "Such prohibition against any
investment transaction in an actual commodity shall not apply to
(1) a transaction in which such person buys an agricultural
commodity or livestock for use in such person's own farming or
ranching operations or sells an agricultural commodity which such
person has produced in connection with such person's own farming or
ranching operations nor to any transaction in which such person
sells livestock owned by such person for at least three months, (2)
a transaction entered into by the trustee of a trust established by
such person over which such person exercises no control if such
transaction is entered into solely to hedge against adverse price
changes in connection with such farming or ranching operations or
is a transaction for the lease of oil or gas or other mineral
rights or interests owned by such person, or (3) a transaction in
which such person buys or sells, directly or indirectly (except by
means of an instrument regulated by the Commission), a United
States Government security, a certificate of deposit, or a similar
financial instrument if no nonpublic information is used by such
person in such transaction. With respect to such excepted
transactions, the Commission shall require any Commissioner of the
Commission or any employee or agent thereof who participates in any
such transaction to notify the Commission thereof in accordance
with such regulations as the Commission shall prescribe and the
Commission shall make such information available to the public."
1983 - Subsec. (a). Pub. L. 97-444, Sec. 227(1), expanded
applicability to any person registered or required to be registered
under this chapter and inserted provision suspending persons
convicted under this subsec. from registration and denying
reregistration for five years or longer as determined by the
Commission, unless such suspension or denial is not required to
protect the public interest.
Subsec. (b). Pub. L. 97-444, Sec. 227(2), inserted "A person
convicted of a felony under this subsection shall be suspended from
any registration under this chapter, denied registration or
reregistration for five years or such longer period as the
Commission shall determine, and barred from using or participating
in any manner in any market regulated by the Commission for five
years or such longer period as the Commission shall determine on
such terms and conditions as the Commission may prescribe, unless
the Commission determines that the imposition of such suspension,
denial of registration or reregistration, or market bar is not
required to protect the public interest. The Commission may upon
petition later review such disqualification and market bar and for
good cause shown reduce the period thereof."
Subsec. (c). Pub. L. 97-444, Sec. 227(3), inserted "A person
convicted under this subsection of knowingly violating the
provisions of section 6a of this title shall be suspended from any
registration under this chapter, denied registration or
reregistration for a period of two years or such longer period as
the Commission shall determine, and barred from using or
participating in any manner in any market regulated by the
Commission for two years or such longer period as the Commission
shall determine on such terms and conditions as the Commission may
prescribe, unless the Commission determines that the imposition of
such suspension, denial of registration or reregistration, or
market bar is not required to protect the public interest. The
Commission may upon petition later review such disqualification and
market bar and for good cause shown reduce the period thereof."
Subsec. (d). Pub. L. 97-444, Sec. 227(4), in amending subsec. (d)
generally, added to range of felonious conduct, participation in
any transaction for the delivery of any commodity under a
standardized contract commonly known to the trade as a margin
account, margin contract, leverage account, or leverage contract,
or under any contract, account, arrangement, scheme, or device that
the Commission determines serves the same function or functions as
such a standardized contract, or is marketed or managed in
substantially the same manner as such a standardized contract, and
added to nonapplicability of prohibition against any investment
transaction in an actual commodity, a transaction entered into by
the trustee of a trust established by such person over which such
person exercises no control if such transaction is entered into
solely to hedge against adverse price changes in connection with
such farming or ranching operations or is a transaction for the
lease of oil or gas or other mineral rights or interests owned by
such person, or a transaction in which such person buys or sells,
directly or indirectly (except by means of an instrument regulated
by the Commission), a United States Government security, a
certificate of deposit, or a similar financial instrument if no
nonpublic information is used by such person in such transaction.
Subsec. (e). Pub. L. 97-444, Sec. 227(5), inserted after words "
'decline guaranty' " each place they appear the following: ", or in
any transaction for the delivery of any commodity under a
standardized contract commonly known to the trade as a margin
account, margin contract, leverage account, or leverage contract,
or under any contract, account, arrangement, scheme, or device that
the Commission determines serves the same function or functions as
such a standardized contract, or is marketed or managed in
substantially the same manner as such a standardized contract".
1978 - Subsec. (a). Pub. L. 95-405, Sec. 19(1), substituted
"$500,000" for "$100,000" and inserted provision relating to a fine
of not more than $100,000 plus costs of prosecution for a violation
by a person who is an individual.
Subsec. (b). Pub. L. 95-405, Sec. 19(2), substituted "$500,000"
for "$100,000" and inserted provisions making felonies the
violation of sections 6, 6b, 6c(b) to (e), 6h, 6o(1) and 23 of this
title, knowingly making any false or misleading statement of
material fact, or omitting such fact in any application or report,
and setting the fine for such felonies at not more than $100,000
for a person who is an individual.
Subsec. (c). Pub. L. 95-405, Sec. 19(3), inserted references to
subsecs. (d) and (e) of this section and substituted "sections 6a,
6c(a), 6d, 6e, 6i, 6k, 6m, 6o(2), or 12b of this title" for
"sections 6 to 6e, 6h, 6i, 6k, 6m, 6o or 12b of this title".
Subsecs. (d), (e). Pub. L. 95-405, Sec. 19(4), (5), substituted
"$100,000" for "$10,000".
1974 - Subsecs. (a), (b). Pub. L. 93-463, Sec. 212(d)(1), (2),
substituted "$100,000" for "$10,000".
Subsec. (c). Pub. L. 93-463, Secs. 212(d)(3), 409, substituted
"$100,000" for "$10,000" and inserted reference to sections 6k, 6m,
and 6o of this title.
Subsecs. (d), (e). Pub. L. 93-463, Sec. 401, added subsecs. (d)
and (e).
1968 - Subsec. (a). Pub. L. 90-258 added subsec. (a).
Subsec. (b). Pub. L. 90-258 incorporated existing offenses in
provisions designated as subsec. (b), changed classification
thereof from misdemeanors to felonies, and increased term of
imprisonment from not more than one year to not more than five
years.
Subsec. (c). Pub. L. 90-258 incorporated existing offenses in
provisions designated as subsec. (c), and included penalty for
violation of section 12b of this title.
1936 - Act June 15, 1936, amended section generally and provided
that price manipulations of commodities in interstate commerce was
a violation.
EFFECTIVE DATE OF 1983 AMENDMENT                 
Amendment by Pub. L. 97-444 effective Jan. 11, 1983, see section
239 of Pub. L. 97-444, set out as a note under section 2 of this
title.
EFFECTIVE DATE OF 1978 AMENDMENT                 
Amendment by Pub. L. 95-405 effective Oct. 1, 1978, see section
28 of Pub. L. 95-405, set out as a note under section 2 of this
title.
EFFECTIVE DATE OF 1974 AMENDMENT                 
For effective date of amendment by Pub. L. 93-463, see section
418 of Pub. L. 93-463, set out as a note under section 2 of this
title.
EFFECTIVE DATE OF 1968 AMENDMENT                 
Amendment by Pub. L. 90-258 effective 120 days after Feb. 19,
1968, see section 28 of Pub. L. 90-258, set out as a note under
section 2 of this title.
EFFECTIVE DATE OF 1936 AMENDMENT                 
Amendment by act June 15, 1936, effective 90 days after June 15,
1936, see section 13 of that act, set out as a note under section 1
of this title.
REGULATIONS                            
Section 214(b) of Pub. L. 102-546 provided that: "The Commodity
Futures Trading Commission shall issue regulations to implement the
amendment made by subsection (a) [amending this section] not later
than three hundred and sixty days after the date of enactment of
this Act [Oct. 28, 1992]."
PENALTIES STUDY AND GUIDELINES                  
Section 225 of Pub. L. 102-546 provided that:
"(a) Study. - The Commodity Futures Trading Commission shall
study the penalties the Commission imposes against persons found to
have violated the Commodity Exchange Act (7 U.S.C. 1 et seq.) and
the penalties imposed by contract markets and registered futures
associations against persons found to have violated their
respective rules established under such Act.
"(b) Report. - Not later than two years after the date of
enactment of this Act [Oct. 28, 1992], the Commission shall submit
to the Committee on Agriculture of the House of Representatives and
the Committee on Agriculture, Nutrition, and Forestry of the Senate
a report that describes the results of the study conducted under
subsection (a). The report shall - 
"(1) include an analysis of whether systematic differences
exist among penalties imposed by various contract markets and
registered futures associations for similar offenses, and, if so,
the causes of such differences;
"(2) propose industry-wide guidelines or rules to make penalty
levels among contract markets and registered futures associations
consistent, including, if appropriate, minimum penalties or
penalty ranges for various offenses; and
"(3) propose guidelines or rules to make Commission penalty
levels consistent, including, if appropriate, minimum penalties
or penalty ranges for various offenses."
(!1) So in original. Probably should be "section".

(!2) So in original. The period probably should be "; or".