7 U.S.C. § 87 : US Code - Section 87: Conflicts of interest

Search 7 U.S.C. § 87 : US Code - Section 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 chapter, or employed by the Secretary
in otherwise carrying out any of the provisions of this chapter,
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
chapter.
(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 chapter, 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 of this title 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, Nutrition, and
Forestry of the Senate, detailing the factual bases for such
determination.
(c) Official agencies or State agencies not prevented from engaging
in business of weighing grain
The provisions of this section shall not prevent an official
agency or State agency delegated authority under this chapter from
engaging in the business of weighing grain.