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Title 7 — Agriculture

Chapter 3 — Grain Standards

§ 87. Conflicts of interest

Statutory text

(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.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Pub. L. 64–313 · 39 Stat. 446

    Enacted · 7 U.S.C. § 87

    Aug. 11, 1916, ch. 313, pt. B, § 11, 39 Stat. 485

    Source evidence

    Code source credit
    Aug. 11, 1916, ch. 313, pt. B, § 11, 39 Stat. 485

  2. Pub. L. 90–487 § 1 · 82 Stat. 761

    Substituted · 7 U.S.C. § 87

    Pub. L. 90–487 substituted provisions prohibiting a conflict of interest on the part of inspectors who are interested financially in a grain elevator or in grain merchandising, for provisions covering the separability of provisions of this chapter

    Source evidence

    Code amendment note
    Pub. L. 90–487 substituted provisions prohibiting a conflict of interest on the part of inspectors who are interested financially in a grain elevator or in grain merchandising, for provisions covering the separability of provisions of this chapter.

  3. United States Grain Standards Act of 1976

    Pub. L. 94–582 § 13(a) · 90 Stat. 2867

    1. Substituted · 7 U.S.C. § 87(a)

      Pub. L. 94–582, § 13(a)–(c), substituted “Administrator” for “Secretary”

    2. Substituted · 7 U.S.C. § 87(a)

      Pub. L. 94–582, § 13(a)–(c), substituted “perform any official function” for “perform any official inspection function”

    3. Amended · 7 U.S.C. § 87(a)

      Pub. L. 94–582, § 13(a)–(c), designated first paragraph provisions, as amended, as subsec. (a), respectively

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 94–582, § 13(a)–(c), substituted “Administrator” for “Secretary” wherever appearing and “perform any official function” for “perform any official inspection function”, and designated first paragraph provisions, as amended, as subsec. (a), respectively.

    Enacted provision · exact public law section
    (a) by striking out the word “Secretary” wherever it appears and inserting in lieu thereof the word “Administrator”;

  4. United States Grain Standards Act of 1976

    Pub. L. 94–582 § 13(c) · 90 Stat. 2867

    Added · 7 U.S.C. § 87(b); 7 U.S.C. § 87(c)

    Pub. L. 94–582, § 13(c), added subsecs. (b) and (c)

    Source evidence

    Code amendment note
    Subsecs. (b), (c). Pub. L. 94–582, § 13(c), added subsecs. (b) and (c).

    Enacted provision · exact public law section
    (c) by designating the provisions thereof as subsection (a) and adding new subsections (b) and (c) as follows: “(b) (1) No official agency or a State agency delegated authority Conflict of interest. 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 he 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 Substantial stock holder. 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 7A and each State or local agency or other person designated Ante, p. 2875. by the Administrator under such section to perform 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 “Use of official inspection service.” 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 a State or local governmental agency is designated as an official agency, the Administrator 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, Authority delegation. the Administrator 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 supervision of weighing except that for purposes of supervision of weighing only, he may also designate any other person, if he determines that any conflict of interest which may exist between the agency or person or any member, 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 Admin- Report to congressional committees. istrator 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 Administrator 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) The provisions of this section shall not prevent an official agency from engaging in the business of weighing grain.”.

  5. Food and Agriculture Act of 1977

    Pub. L. 95–113 § 1604(h)(1) · 91 Stat. 913

    Substituted · 7 U.S.C. § 87(b)(3)

    Pub. L. 95–113, § 1604(h)(1), substituted “to perform official weighing or supervision of weighing” for “to perform supervision of weighing”

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 95–113, § 1604(h)(1), substituted “to perform official weighing or supervision of weighing” for “to perform supervision of weighing”.

    Enacted provision · exact public law section
    (1) inserting “official weighing or” immediately before “super-vision of weighing” in paragraph (3) of subsection (b);

    Effective date note
    Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.

  6. Food and Agriculture Act of 1977

    Pub. L. 95–113 § 1606(g) · 91 Stat. 913

    Substituted · 7 U.S.C. § 87(b)(4)

    Pub. L. 95–113, § 1606(g), substituted “official weighing or supervision of weighing” for “official weighing”

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 95–113, § 1606(g), substituted “official weighing or supervision of weighing” for “official weighing”.

    Enacted provision · exact public law section
    (g) Section 11(b)(4) is amended by inserting “or supervision of weighing” immediately after “official weighing”.

    Effective date note
    Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.

  7. Food and Agriculture Act of 1977

    Pub. L. 95–113 § 1604(h)(2) · 91 Stat. 913

    1. Substituted · 7 U.S.C. § 87(b)(5)

      Pub. L. 95–113, § 1604(h)(2), substituted “to perform official inspection or perform official weighing or supervision of weighing except that” for “to perform official inspection or perform supervision of weighing except that”

    2. Substituted · 7 U.S.C. § 87(b)(5)

      Pub. L. 95–113, § 1604(h)(2), substituted “member, director, officer” for “member, officer”

    Source evidence

    Code amendment note
    Subsec. (b)(5). Pub. L. 95–113, § 1604(h)(2), substituted “to perform official inspection or perform official weighing or supervision of weighing except that” for “to perform official inspection or perform supervision of weighing except that” and “member, director, officer” for “member, officer”.

    Enacted provision · exact public law section
    (2) in the first sentence of paragraph (5) of subsection (b), inserting “official weighing or” immediately before “supervision of weighing except”, and inserting “director,” immediately before “officer, employee,”; and

    Effective date note
    Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.

  8. Food and Agriculture Act of 1977

    Pub. L. 95–113 § 1604(h)(3) · 91 Stat. 913

    Inserted · 7 U.S.C. § 87(c)

    Pub. L. 95–113, § 1604(h)(3), inserted “or State agency delegated authority under this chapter” after “official agency”

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 95–113, § 1604(h)(3), inserted “or State agency delegated authority under this chapter” after “official agency”.

    Enacted provision · exact public law section
    (3) inserting “or State agency delegated authority under this Act” immediately after “official agency” in subsection (c).

    Effective date note
    Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.

  9. United States Grain Standards Act Amendments of 1993

    Pub. L. 103–156 § 12(j) · 107 Stat. 1525

    Amended · 7 U.S.C. § 87

    Pub. L. 103–156, § 12(j), which directed amendment of “Section 11”, without specifying the name of the Act being amended, was executed to this section, which is section 11 of the United States Grain Standards Act, to reflect the probable intent of Congress

    Source evidence

    Code amendment note
    Pub. L. 103–156, § 12(j), which directed amendment of “Section 11”, without specifying the name of the Act being amended, was executed to this section, which is section 11 of the United States Grain Standards Act, to reflect the probable intent of Congress.

    Enacted provision · exact public law section
    (j) Section 11 (7 U.S.C. 87) is amended— (1) in subsection (a), by striking “he” and inserting “the Administrator”; and (2) in subsection (b)— (A) in paragraph (1), by striking “he” and inserting “the producer”; and (B) in paragraph (5), by striking “he” each place it appears and inserting “the Administrator”.

  10. United States Grain Standards Act Amendments of 1993

    Pub. L. 103–156 § 12(j)(1) · 107 Stat. 1525

    Substituted · 7 U.S.C. § 87(a)

    Pub. L. 103–156, § 12(j)(1), substituted “the Administrator” for “he” before “determines”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 103–156, § 12(j)(1), substituted “the Administrator” for “he” before “determines”.

    Enacted provision · exact public law section
    (1) in subsection (a), by striking “he” and inserting “the Administrator”; and

  11. United States Grain Standards Act Amendments of 1993

    Pub. L. 103–156 § 12(j)(2)(A) · 107 Stat. 1525

    Substituted · 7 U.S.C. § 87(b)(1)

    Pub. L. 103–156, § 12(j)(2)(A), substituted “the producer” for “he”

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 103–156, § 12(j)(2)(A), substituted “the producer” for “he”.

    Enacted provision · exact public law section
    (A) in paragraph (1), by striking “he” and inserting “the producer”; and

  12. United States Grain Standards Act Amendments of 1993

    Pub. L. 103–156 § 12(j)(2)(B) · 107 Stat. 1525

    Substituted · 7 U.S.C. § 87(b)(5)

    Pub. L. 103–156, § 12(j)(2)(B), substituted “the Administrator” for “he” in two places

    Source evidence

    Code amendment note
    Subsec. (b)(5). Pub. L. 103–156, § 12(j)(2)(B), substituted “the Administrator” for “he” in two places.

    Enacted provision · exact public law section
    (B) in paragraph (5), by striking “he” each place it appears and inserting “the Administrator”.

  13. Department of Agriculture Reorganization Act of 1994

    Pub. L. 103–354 title II § 293(a)(7) · 108 Stat. 3178

    Substituted · 7 U.S.C. § 87(a); 7 U.S.C. § 87(b)

    Pub. L. 103–354 substituted “Secretary” for “Administrator” wherever appearing

    Source evidence

    Code amendment note
    Subsecs. (a), (b). Pub. L. 103–354 substituted “Secretary” for “Administrator” wherever appearing.

    Enacted provision · exact public law section
    (7) except as otherwise provided in this subsection, by striking “Administrator” each place it appears and inserting “Secretary”; and

  14. Pub. L. 103–437 § 4(a)(1) · 108 Stat. 4581

    Substituted · 7 U.S.C. § 87(b)(5)

    Pub. L. 103–437 substituted “Committee on Agriculture, Nutrition, and Forestry” for “Committee on Agriculture and Forestry”

    Source evidence

    Code amendment note
    Subsec. (b)(5). Pub. L. 103–437 substituted “Committee on Agriculture, Nutrition, and Forestry” for “Committee on Agriculture and Forestry”.

    Enacted provision · exact public law section
    (1) section 11(b)(5) of the United States Grain Standards Act (7 U.S.C. 87(b)(5)).

15 of 17 references resolved to an enrolled provision · 2 partial

Editorial Notes

Amendments1968–1994 · 5 rounds

1994

Subsecs. (a), (b). Pub. L. 103–354 substituted “Secretary” for “Administrator” wherever appearing.

Subsec. (b)(5). Pub. L. 103–437 substituted “Committee on Agriculture, Nutrition, and Forestry” for “Committee on Agriculture and Forestry”.

1993

Pub. L. 103–156, § 12(j), which directed amendment of “Section 11”, without specifying the name of the Act being amended, was executed to this section, which is section 11 of the United States Grain Standards Act, to reflect the probable intent of Congress.

Subsec. (a). Pub. L. 103–156, § 12(j)(1), substituted “the Administrator” for “he” before “determines”.

Subsec. (b)(1). Pub. L. 103–156, § 12(j)(2)(A), substituted “the producer” for “he”.

Subsec. (b)(5). Pub. L. 103–156, § 12(j)(2)(B), substituted “the Administrator” for “he” in two places.

1977

Subsec. (b)(3). Pub. L. 95–113, § 1604(h)(1), substituted “to perform official weighing or supervision of weighing” for “to perform supervision of weighing”.

Subsec. (b)(4). Pub. L. 95–113, § 1606(g), substituted “official weighing or supervision of weighing” for “official weighing”.

Subsec. (b)(5). Pub. L. 95–113, § 1604(h)(2), substituted “to perform official inspection or perform official weighing or supervision of weighing except that” for “to perform official inspection or perform supervision of weighing except that” and “member, director, officer” for “member, officer”.

Subsec. (c). Pub. L. 95–113, § 1604(h)(3), inserted “or State agency delegated authority under this chapter” after “official agency”.

1976

Subsec. (a). Pub. L. 94–582, § 13(a)–(c), substituted “Administrator” for “Secretary” wherever appearing and “perform any official function” for “perform any official inspection function”, and designated first paragraph provisions, as amended, as subsec. (a), respectively.

Subsecs. (b), (c). Pub. L. 94–582, § 13(c), added subsecs. (b) and (c).

1968

Pub. L. 90–487 substituted provisions prohibiting a conflict of interest on the part of inspectors who are interested financially in a grain elevator or in grain merchandising, for provisions covering the separability of provisions of this chapter.

Statutory Notes and Related Subsidiaries

Effective Date of 1977 Amendment

Amendment by Pub. L. 95–113 effective , see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.

Effective Date of 1976 Amendment

Amendment by Pub. L. 94–582 effective 30 days after , see section 27 of Pub. L. 94–582, as amended, set out as a note under section 74 of this title.

Effective Date of 1968 Amendment

For effective date of amendment by Pub. L. 90–487, see section 2 of Pub. L. 90–487, set out as a note under section 78 of this title.

Credits

1916–1994 · 7 acts
  1. 1916Aug. 11, 1916, ch. 313, pt. B, § 11, 39 Stat. 485
  2. 1968Pub. L. 90–487, § 1, , 82 Stat. 766
  3. 1976Pub. L. 94–582, § 13, , 90 Stat. 2880
  4. 1977Pub. L. 95–113, title XVI, §§ 1604(h), 1606(g), , 91 Stat. 1028, 1030
  5. 1993Pub. L. 103–156, § 12(j), , 107 Stat. 1529
  6. 1994Pub. L. 103–354, title II, § 293(a)(7), , 108 Stat. 3237
  7. 1994Pub. L. 103–437, § 4(a)(1), , 108 Stat. 4581.
Show as published

(Aug. 11, 1916, ch. 313, pt. B, § 11, 39 Stat. 485; Pub. L. 90–487, § 1, , 82 Stat. 766; Pub. L. 94–582, § 13, , 90 Stat. 2880; Pub. L. 95–113, title XVI, §§ 1604(h), 1606(g), , 91 Stat. 1028, 1030; Pub. L. 103–156, § 12(j), , 107 Stat. 1529; Pub. L. 103–354, title II, § 293(a)(7), , 108 Stat. 3237; Pub. L. 103–437, § 4(a)(1), , 108 Stat. 4581.)

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