[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 509 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 509

To modify the authority of the Federal Energy Regulatory Commission to 
conduct investigations, to increase the penalties for violations of the 
Federal Power Act and the Natural Gas Act, to authorize the Chairman of 
  the Federal Energy Regulatory Commission to contract for consultant 
                   services, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 4, 2003

Mrs. Feinstein (for herself, Mr. Fitzgerald, Mr. Lugar, Mr. Harkin, Ms. 
  Cantwell, Mr. Wyden, and Mr. Leahy) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
To modify the authority of the Federal Energy Regulatory Commission to 
conduct investigations, to increase the penalties for violations of the 
Federal Power Act and the Natural Gas Act, to authorize the Chairman of 
  the Federal Energy Regulatory Commission to contract for consultant 
                   services, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Market Oversight Act''.

SEC. 2. JURISDICTION OF THE FEDERAL ENERGY REGULATORY COMMISSION OVER 
              ENERGY TRADING MARKETS.

    Section 402 of the Department of Energy Organization Act (42 U.S.C. 
7172) is amended by adding at the end the following:
    ``(i) Jurisdiction Over Derivatives Transactions and Other 
Financial Transactions .--
            ``(1) Referral.--
                    ``(A) In general.--To the extent that the 
                Commission determines that any contract for a 
                derivative transaction or other financial transaction 
                that comes before the Commission is not under the 
                jurisdiction of the Commission, the Commission shall 
                refer the contract to the appropriate Federal agency.
                    ``(B) No effect on authority.--The authority of the 
                Commission or any Federal agency shall not be limited 
                or otherwise affected based on whether the Commission 
                has or has not referred a contract described in 
                subparagraph (A).
            ``(2) Meetings.--A designee of the Commission shall meet 
        quarterly with a designee of the Commodity Futures Trading 
        Commission, the Securities Exchange Commission, the Federal 
        Trade Commission, the Department of Justice, the Department of 
        the Treasury, and the Federal Reserve Board to discuss--
                    ``(A) conditions and events in energy trading 
                markets; and
                    ``(B) any changes in Federal law (including 
                regulations) that may be appropriate to regulate energy 
                trading markets.
            ``(3) Liaison.--The Commission shall, in cooperation with 
        the Commodity Futures Trading Commission, maintain a liaison 
        between the Commission and the Commodity Futures Trading 
        Commission.''.

SEC. 3. INVESTIGATIONS BY THE FEDERAL ENERGY REGULATORY COMMISSION 
              UNDER THE NATURAL GAS ACT AND FEDERAL POWER ACT.

    (a) Investigations Under the Natural Gas Act.--Section 14(c) of the 
Natural Gas Act (15 U.S.C. 717m(c)) is amended--
            (1) by striking ``(c) For the purpose of'' and inserting 
        the following:
    ``(c) Taking of Evidence.--
            ``(1) In general.--For the purpose of'';
            (2) by striking ``Such attendance'' and inserting the 
        following:
            ``(2) No geographic limitation.--The attendance'';
            (3) by striking ``Witnesses summoned'' and inserting the 
        following:
            ``(3) Expenses.--Any witness summoned''; and
            (4) by adding at the end the following:
            ``(4) Authorities.--Notwithstanding any other provision of 
        law, the exercise of the authorities of the Commission under 
        this subsection shall not be subject to the consent of the 
        Office of Management and Budget or any other Federal agency.''.
    (b) Investigations Under the Federal Power Act.--Section 307(b) of 
the Federal Power Act (16 U.S.C. 825f(b)) is amended--
            (1) by striking ``(b) For the purpose of'' and inserting 
        the following:
    ``(b) Taking of Evidence.--
            ``(1) In general.--For the purpose of'';
            (2) by striking ``Such attendance'' and inserting the 
        following:
            ``(2) No geographic limitation.--The attendance'';
            (3) by striking ``Witnesses summoned'' and inserting the 
        following:
            ``(3) Expenses.--Any witness summoned''; and
            (4) by adding at the end the following:
            ``(4) Authorities.--Notwithstanding any other provision of 
        law, the exercise of the authorities of the Commission under 
        this subsection shall not be subject to the consent of the 
        Office of Management and Budget or any other Federal agency.''.

SEC. 4. INCREASE IN CRIMINAL PENALTIES UNDER THE NATURAL GAS ACT AND 
              FEDERAL POWER ACT.

    (a) Criminal Penalties Under the Natural Gas Act.--Section 21 of 
the Natural Gas Act (15 U.S.C. 717t) is amended--
            (1) in subsection (a), by striking ``punished by a fine of 
        not more than $5,000 or by imprisonment for not more than two 
        years, or both'' and inserting ``imprisoned not more than 5 
        years, fined not more than $1,000,000, or both''; and
            (2) in subsection (b), by striking ``$500 for each and 
        every day during which such offense occurs'' and inserting 
        ``$50,000 for each day of each violation''.
    (b) Criminal Penalties Under the Federal Power Act.--
            (1) General penalties.--Section 316 of the Federal Power 
        Act (16 U.S.C. 825o) is amended--
                    (A) in subsection (a), by striking ``punished by a 
                fine of not more than $5,000 or by imprisonment for not 
                more than two years or both'' and inserting 
                ``imprisoned not more than 5 years, fined not more than 
                $1,000,000, or both''; and
                    (B) in subsection (b), by striking ``$500 for each 
                and every day during which such offense occurs'' and 
                inserting ``$50,000 for each day of each violation''.
            (2) Enforcement of certain provisions.--Section 316A of the 
        Federal Power Act (16 U.S.C. 825o-1) is amended--
                    (A) by striking subsection (a) and inserting the 
                following:
    ``(a) Violations.--It shall be unlawful for any person--
            ``(1) to violate any provision of part II (including any 
        rule or order issued under a provision of that part); or
            ``(2) to fail to comply, within a time period specified by 
        the Commission, with--
                    ``(A) any written request by the Commission or a 
                member of the staff of the Commission for information; 
                or
                    ``(B) a formal investigation or proceeding under 
                this part.''; and
                    (B) in subsection (b)--
                            (i) by striking ``section 211, 212, 213 or 
                        214 or any provision of any rule or order 
                        thereunder'' and inserting the following: 
                        ``part II (including any rule or order issued 
                        under a provision of that part) or fails to 
                        comply in a timely manner with any written 
                        request for information by the Commission or a 
                        member of the staff of the Commission or in a 
                        formal investigation or proceeding under this 
                        part''; and
                            (ii) by striking ``$10,000 for each day 
                        that such violation continues'' and inserting 
                        ``$50,000 for each day of each violation''.

SEC. 5. REFUND EFFECTIVE DATE.

    Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is 
amended--
            (1) in the second sentence, by striking ``the date 60 
        days'' and all that follows and inserting ``the date of filing 
        of the complaint nor later than the date that is 150 days after 
        the date of filing of the complaint, unless the Commission 
        determines that the complaint could not have been brought 
        earlier because of fraud, intentional misrepresentation, or any 
        similar act by the public utility named in the complaint, in 
        which case the refund effective date shall be the date on which 
        the rate, charge, classification, rule, regulation, practice, 
        or contract that is found to be unjust, unreasonable, unduly 
        discriminatory, or preferential came into effect.''; and
            (2) in the third sentence--
                    (A) by striking ``date 60 days after the 
                publication'' and inserting ``date of publication''; 
                and
                    (B) by striking ``expiration of such 60-day 
                period'' and inserting ``the publication date, unless 
                the Commission determines that the motion could not 
                have been made earlier because of fraud, intentional 
                misrepresentation, or any similar act by the public 
                utility named in the motion, in which case the refund 
                effective date shall be the date on which the rate, 
                charge, classification, rule, regulation, practice, or 
                contract that is found to be unjust, unreasonable, 
                unduly discriminatory, or preferential came into 
                effect''.

SEC. 6. CONSULTING SERVICES.

    Title IV of the Department of Energy Organization Act (42 U.S.C. 
7171 et seq.) is amended by adding at the end the following:

``SEC. 408. CONSULTING SERVICES.

    ``(a) In General.--The Chairman may contract for the services of 
consultants to assist the Commission in carrying out any 
responsibilities of the Commission under this Act, the Federal Power 
Act (16 U.S.C. 791a et seq.), or the Natural Gas Act (15 U.S.C. 717 et 
seq.).
    ``(b) Applicable Law.--In contracting for consultant services under 
subsection (a), if the Chairman determines that the contract is in the 
public interest, the Chairman, in entering into a contract, shall not 
be subject to--
            ``(1) section 5, 253, 253a, or 253b of title 41, United 
        States Code; or
            ``(2) any law (including a regulation) relating to 
        conflicts of interest.''.

SEC. 7. LEGAL CERTAINTY FOR TRANSACTIONS IN EXEMPT COMMODITIES.

    Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is amended by 
striking subsections (g) and (h) and inserting the following:
    ``(g) Off-Exchange Transactions in Exempt Commodities.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Covered entity.--The term `covered entity' 
                means--
                            ``(i) an electronic trading facility; and
                            ``(ii) a dealer market.
                    ``(B) Dealer market.--
                            ``(i) In general.--The term `dealer market' 
                        has the meaning given the term by the 
                        Commission.
                            ``(ii) Inclusions.--The term `dealer 
                        market' includes each bilateral or multilateral 
                        agreement, contract, or transaction determined 
                        by the Commission, regardless of the means of 
                        execution of the agreement, contract, or 
                        transaction.
            ``(2) Exemption for transactions not on trading 
        facilities.--Except as provided in paragraph (4), nothing in 
        this Act shall apply to an  agreement, contract, or transaction 
in an exempt commodity that--
                    ``(A) is entered into solely between persons that 
                are eligible contract participants at the time the 
                persons enter into the agreement, contract, or 
                transaction; and
                    ``(B) is not entered into on a trading facility.
            ``(3) Exemption for transactions on covered entities.--
        Except as provided in paragraphs (4), (5), and (7), nothing in 
        this Act shall apply to an agreement, contract, or transaction 
        in an exempt commodity that is--
                    ``(A) entered into on a principal-to-principal 
                basis solely between persons that are eligible contract 
                participants at the time at which the persons enter 
                into the agreement, contract, or transaction; and
                    ``(B) executed or traded on a covered entity.
            ``(4) Regulatory and oversight requirements.--
                    ``(A) In general.--An agreement, contract, or 
                transaction described in paragraph (2) or (3) (and the 
                covered entity on which the agreement, contract, or 
                transaction is executed) shall be subject to--
                            ``(i) sections 5b, 12(e)(2)(B), and 
                        22(a)(4);
                            ``(ii) the provisions relating to 
                        manipulation and misleading transactions under 
                        sections 4b, 4c(a), 4c(b), 4o, 6(c), 6(d), 6c, 
                        6d, 8a, and 9(a)(2); and
                            ``(iii) the provisions relating to fraud 
                        and misleading transactions under sections 4b, 
                        4c(a), 4c(b), 4o, and 8a.
                    ``(B) Transactions exempted by commission action.--
                Notwithstanding any exemption by the Commission under 
                section 4(c), an agreement, contract, or transaction 
                described in paragraph (2) or (3) shall be subject to 
                the authorities in clauses (i), (ii), and (iii) of 
                subparagraph (A).
            ``(5) Covered entities.--An agreement, contract, or 
        transaction described in paragraph (3) and the covered entity 
        on which the agreement, contract, or transaction is executed, 
        shall be subject to (to the extent the Commission determines 
        appropriate)--
                    ``(A) section 5a, to the extent provided in section 
                5a(g)) and 5d;
                    ``(B) consistent with section 4i, a requirement 
                that books and records relating to the business of the 
                covered entity on which the agreement, contract, or 
                transaction is executed be made available to 
                representatives of the Commission and the Department of 
                Justice for inspection for a period of at least 5 years 
                after the date of each transaction, including--
                            ``(i) information relating to data entry 
                        and transaction details sufficient to enable 
                        the Commission to reconstruct trading activity 
                        on the covered entity; and
                            ``(ii) the name and address of each 
                        participant on the covered entity authorized to 
                        enter into transactions; and
                    ``(C) in the case of a transaction or covered 
                entity performing a significant price discovery 
                function for transactions in the cash market for the 
                underlying commodity, subject to paragraph (6), the 
                requirements (to the extent the Commission determines 
                appropriate by regulation) that--
                            ``(i) information on trading volume, 
                        settlement price, open interest, and opening 
                        and closing ranges be made available to the 
                        public on a daily basis;
                            ``(ii) notice be provided to the Commission 
                        in such form as the Commission may require;
                            ``(iii) reports be filed with the 
                        Commission (such as large trader position 
                        reports); and
                            ``(iv) consistent with section 4i, books 
                        and records be maintained relating to each 
                        transaction in such form as the Commission may 
                        require for a period of at least 5 years after 
                        the date of the transaction.
            ``(6) Proprietary information.--In carrying out paragraph 
        (5)(C), the Commission shall not--
                    ``(A) require the real-time publication of 
                proprietary information;
                    ``(B) prohibit the commercial sale or licensing of 
                real-time proprietary information; and
                    ``(C) publicly disclose information regarding 
                market positions, business transactions, trade secrets, 
                or names of customers, except as provided in section 8.
            ``(7) Notification, disclosures, and other requirements for 
        covered entities.--A covered entity subject to the exemption 
        under paragraph (3) shall (to the extent the Commission 
        determines appropriate)--
                    ``(A) notify the Commission of the intention of the 
                covered entity to operate as a covered entity subject 
                to the exemption under paragraph (3), which notice 
                shall include--
                            ``(i) the name and address of the covered 
                        entity and a person designated to receive 
                        communications from the Commission;
                            ``(ii) the commodity categories that the 
                        covered entity intends to list or otherwise 
                        make available for trading on the covered 
                        entity in reliance on the exemption under 
                        paragraph (3);
                            ``(iii) certifications that--
                                    ``(I) no executive officer or 
                                member of the governing board of, or 
                                any holder of a 10 percent or greater 
                                equity interest in, the covered entity 
                                is a person described in any of 
                                subparagraphs (A) through (H) of 
                                section 8a(2);
                                    ``(II) the covered entity will 
                                comply with the conditions for 
                                exemption under this subsection; and
                                    ``(III) the covered entity will 
                                notify the Commission of any material 
                                change in the information previously 
                                provided by the covered entity to the 
                                Commission under this paragraph; and
                            ``(iv) the identity of any derivatives 
                        clearing organization to which the covered 
                        entity transmits or intends to transmit 
                        transaction data for the purpose of 
                        facilitating the clearance and settlement of 
                        transactions conducted on the covered entity 
                        subject to the exemption under paragraph (3);
                    ``(B)(i) provide the Commission with access to the 
                trading protocols of the covered entity and electronic 
                access to the covered entity with respect to 
                transactions conducted in reliance on the exemption 
                under paragraph (3); and
                    ``(ii) on special call by the Commission, provide 
                to the Commission, in a form and manner and within the 
                period specified in the special call, such information 
                relating to the business of the covered entity as a 
                covered entity exempt under paragraph (3), including 
                information relating to data entry and transaction 
                details with respect to transactions entered into in 
                reliance on the exemption under paragraph (3), as the 
                Commission may determine appropriate--
                            ``(I) to enforce the provisions specified 
                        in paragraph (4);
                            ``(II) to evaluate a systemic market event; 
                        or
                            ``(III) to obtain information requested by 
                        a Federal financial regulatory authority to 
                        enable the authority to fulfill the regulatory 
                        or supervisory responsibilities of the 
                        authority;
                    ``(C)(i) on receipt of any subpoena issued by or on 
                behalf of the Commission to any foreign person that the 
                Commission believes is conducting or has conducted 
                transactions in reliance on the exemption under 
                paragraph (3) on or through the covered entity relating 
                to the transactions, promptly notify the foreign person 
                of, and transmit to the foreign person, the subpoena in 
                a manner that is reasonable under the circumstances, or 
                as specified by the Commission; and
                    ``(ii) if the Commission has reason to believe that 
                a person has not timely complied with a subpoena issued 
                by or on behalf of the Commission under clause (i), and 
                the Commission in writing directs that a covered entity 
                relying on the exemption under paragraph (3) deny or 
                limit further transactions by the person, deny that 
                person further trading access to the covered entity or, 
                as applicable, limit that access of the person to the 
                covered entity for liquidation trading only;
                    ``(D) comply with the requirements of this 
                subsection applicable to the covered entity and require 
                that each participant, as a condition of trading on the 
                covered entity in reliance on the exemption under 
                paragraph (3), agree to comply with all applicable law;
                    ``(E) certify to the Commission that the covered 
                entity has a reasonable basis for believing that 
                participants authorized to conduct transactions on the 
                covered entity in reliance on the exemption under 
                paragraph (3) are eligible contract participants;
                    ``(F) maintain sufficient capital, commensurate 
                with the risk associated with transactions conducted on 
                the covered entity; and
                    ``(G) not represent to any person that the covered 
                entity is registered with, or designated, recognized, 
                licensed, or approved by the Commission.
            ``(8) Hearing.--A person named in a subpoena referred to in 
        paragraph (7)(C) that believes the person is or may be 
        adversely affected or aggrieved by action taken by the 
        Commission under this subsection, shall have the opportunity 
        for a prompt hearing after the Commission acts under procedures 
        that the Commission shall establish by rule, regulation, or 
        order.
            ``(9) Private regulatory organizations.--
                    ``(A) Delegation of functions under core 
                principles.--A covered entity may comply with any core 
                principle under subparagraph (B) that is applicable to 
                the covered entity through delegation of any relevant 
function to--
                            ``(i) a registered futures association 
                        under section 17; or
                            ``(ii) another registered entity.
                    ``(B) Core principles.--The Commission may 
                establish core principles requiring a covered entity to 
                monitor trading to--
                            ``(i) prevent fraud and manipulation;
                            ``(ii) prevent price distortion and 
                        disruptions of the delivery or cash settlement 
                        process;
                            ``(iii) ensure that the covered entity has 
                        adequate financial, operational, and managerial 
                        resources to discharge the responsibilities of 
                        the covered entity; and
                            ``(iv) ensure that all reporting, 
                        recordkeeping, notice, and registration 
                        requirements under this subsection are 
                        discharged in a timely manner.
                    ``(C) Responsibility.--A covered entity that 
                delegates a function under subparagraph (A) shall 
                remain responsible for carrying out the function.
                    ``(D) Noncompliance.--If a covered entity that 
                delegates a function under subparagraph (A) becomes 
                aware that a delegated function is not being performed 
                as required under this Act, the covered entity shall 
                promptly take action to address the noncompliance.
                    ``(E) Violation of core principles.--
                            ``(i) In general.--If the Commission 
                        determines, on the basis of substantial 
                        evidence, that a covered entity is violating 
                        any applicable core principle specified in 
                        subparagraph (B), the Commission shall--
                                    ``(I) notify the covered entity in 
                                writing of the determination; and
                                    ``(II) afford the covered entity an 
                                opportunity to make appropriate changes 
                                to bring the covered entity into 
                                compliance with the core principles.
                            ``(ii) Failure to make changes.--If, not 
                        later than 30 days after receiving a 
                        notification under clause (i)(I), a covered 
                        entity fails to make changes that, as 
                        determined by the Commission, are necessary to 
                        comply with the core principles, the Commission 
                        may take further action in accordance with this 
                        Act.
                    ``(F) Reservation of emergency authority.--Nothing 
                in this paragraph limits or affects the emergency 
                powers of the Commission provided under section 8a(9).
            ``(10) No effect on other authority.--This subsection shall 
        not affect the authority of the Federal Energy Regulatory 
        Commission under the Federal Power Act (16 U.S.C. 791a et seq.) 
        or the Natural Gas Act (15 U.S.C 717 et seq.).''.

SEC. 8. PROHIBITION OF FRAUDULENT TRANSACTIONS.

    Section 4b of the Commodity Exchange Act (7 U.S.C. 6b) is amended 
by striking subsection (a) and inserting the following:
    ``(a) Prohibition.--It shall be unlawful for any person, directly 
or indirectly, in or in connection with any account, or any offer to 
enter into, the entry into, or the confirmation of the execution of, 
any agreement, contract, or transaction subject to this Act--
            ``(1) to cheat or defraud or attempt to cheat or defraud 
        any person (but this paragraph does not impose on parties to 
        transactions executed on or subject to the rules of designated 
        contract markets or registered derivative transaction execution 
        facilities a legal duty to provide counterparties or any other 
        market participants with any material market information);
            ``(2) willfully to make or cause to be made to any person 
        any false report or statement, or willfully to enter or cause 
        to be entered for any person any false record (but this 
        paragraph does not impose on parties to transactions executed 
        on or subject to the rules of designated contract markets or 
        registered derivative transaction execution facilities a legal 
        duty to provide counterparties or any other market participants 
        with any material market information);
            ``(3) willfully to deceive or attempt to deceive any person 
        by any means whatsoever (but this paragraph does not impose on 
        parties to transactions executed on or subject to the rules of 
        designated contract markets or registered derivative 
        transaction execution facilities a legal duty to provide 
        counterparties or any other market participants with any 
        material market information); or
            ``(4) except as permitted in written rules of a board of 
        trade designated as a contract market or derivatives 
        transaction execution facility on which the agreement, 
        contract, or transaction is traded and executed--
                    ``(A) to bucket an order;
                    ``(B) to fill an order by offset against 1 or more 
                orders of another person; or
                    ``(C) willfully and knowingly, for or on behalf of 
                any other person and without the prior consent of the 
                person, to become--
                            ``(i) the buyer with respect to any selling 
                        order of the person; or
                            ``(ii) the seller with respect to any 
                        buying order of the person.''.

SEC. 9. FERC LIAISON.

    Section 2(a)(9) of the Commodity Exchange Act (7 U.S.C. 2(a)(9)) is 
amended by adding at the end the following:
                    ``(C) Liaison with federal energy regulatory 
                commission.--The Commission shall, in cooperation with 
                the Federal Energy Regulatory Commission, maintain a 
                liaison between the Commission and the Federal Energy 
                Regulatory Commission.''.

SEC. 10. CRIMINAL AND CIVIL PENALTIES.

    (a) Enforcement Powers of Commission.--Section 6(c) of the 
Commodity Exchange Act (7 U.S.C. 9, 15) is amended in paragraph (3) of 
the tenth sentence--
            (1) by inserting ``(A)'' after ``assess such person''; and
            (2) by inserting after ``each such violation'' the 
        following: ``, or (B) in any case of manipulation of, or 
        attempt to manipulate, the price of any commodity, a civil 
        penalty of not more than the greater of $1,000,000 or triple 
        the monetary gain to such person for each such violation,''.
    (b) Manipulations and Other Violations.--Section 6(d) of the 
Commodity Exchange Act (7 U.S.C. 13b) is amended in the first 
sentence--
            (1) by striking ``paragraph (a) or (b) of section 9 of this 
        Act'' and inserting ``subsection (a), (b), or (f) of section 
        9''; and
            (2) by striking ``said paragraph 9(a) or 9(b)'' and 
        inserting ``subsection (a), (b), or (f) of section 9''.
    (c) Nonenforcement of Rules of Government or Other Violations.--
Section 6b of the Commodity Exchange Act (7 U.S.C. 13a) is amended--
            (1) in the first sentence--
                    (A) by inserting ``section 2(g)(9),'' after 
                ``sections 5 through 5c,''; and
                    (B) by inserting before the period at the end the 
                following: ``, or, in any case of manipulation of, or 
                an attempt to manipulate, the price of any commodity, a 
                civil penalty of not more than $1,000,000 for each such 
                violation''; and
            (2) in the second sentence, by inserting before the period 
        at the end the following: ``, except that if the failure or 
        refusal to obey or comply with the order involved any offense 
        under section 9(f), the registered entity, director, officer, 
        agent, or employee shall be guilty of a felony and, on 
        conviction, shall be subject to penalties under section 9(f)''.
    (d) Action To Enjoin or Restrain Violations.--Section 6c(d) of the 
Commodity Exchange Act (7 U.S.C. 13a-1(d)) is amended by striking 
``(d)'' and all that follows through the end of paragraph (1) and 
inserting the following:
    ``(d) Civil Penalties.--In any action brought under this section, 
the Commission may seek and the court shall have jurisdiction to 
impose, on a proper showing, on any person found in the action to have 
committed any violation--
            ``(1) a civil penalty in the amount of not more than the 
        greater of $100,000 or triple the monetary gain to the person 
        for each violation; or
            ``(2) in any case of manipulation of, or an attempt to 
        manipulate, the price of any commodity, a civil penalty in the 
        amount of not more than the greater of $1,000,000 or triple the 
        monetary gain to the person for each violation.''.
    (e) Violations Generally.--Section 9 of the Commodity Exchange Act 
(7 U.S.C. 13) is amended--
            (1) by redesignating subsection (f) as subsection (e); and
            (2) by adding at the end the following:
    ``(f) Price Manipulation.--It shall be a felony punishable by a 
fine of not more than $1,000,000 for each violation or imprisonment for 
not more than 10 years, or both, together with the costs of 
prosecution, for any person--
            ``(1) to manipulate or attempt to manipulate the price of 
        any commodity in interstate commerce, or for future delivery on 
        or subject to the rules of any registered entity;
            ``(2) to corner or attempt to corner any such commodity;
            ``(3) knowingly to deliver or cause to be delivered (for 
        transmission through the mails or interstate commerce by 
        telegraph, telephone, wireless, or other means of 
        communication) false or misleading or knowingly inaccurate 
        reports concerning market information or conditions that affect 
        or tend to affect the price of any commodity in interstate 
        commerce; or
            ``(4) knowingly to violate section 4 or 4b, any of 
        subsections (a) through (e) of subsection 4c, or section 4h, 
        4o(1), or 19.''.

SEC. 11. CONFORMING AMENDMENTS.

    (a) Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is 
amended--
            (1) in subsection (d)(1), by striking ``section 5b'' and 
        inserting ``section 5a(g), 5b,'';
            (2) in subsection (e)--
                    (A) in paragraph (1), by striking ``, 2(g), or 
                2(h)(3)''; and
                    (B) in paragraph (3), by striking ``2(h)(5)'' and 
                inserting ``2(g)(7)'';
            (3) by redesignating subsection (i) as subsection (h); and
            (4) in subsection (h) (as redesignated by subparagraph 
        (C))--
                    (A) in paragraph (1)--
                            (i) by striking ``No provision'' and 
                        inserting ``In general.--Subject to subsection 
                        (g), no provision''; and
                            (ii) in subparagraph (A)--
                                    (I) by striking ``section 2(c), 
                                2(d), 2(e), 2(f), or 2(g) of this Act'' 
                                and inserting ``subsection (c), (d), 
                                (e), or (f)''; and
                                    (II) by striking ``section 2(h)'' 
                                and inserting ``subsection (g)''; and
                    (B) in paragraph (2), by striking ``No provision'' 
                and inserting ``In general.--Subject to subsection (g), 
                no provision''.
    (b) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) is 
amended in the first sentence by inserting ``, or pursuant to an 
exemption under section 4(c)'' after ``transaction execution 
facility''.
    (c) Section 8a(9) of the Commodity Exchange Act (7 U.S.C. 12a(9)) 
is amended--
            (1) by inserting ``or covered entity under section 2(g)'' 
        after ``direct the contract market'';
            (2) by striking ``on any futures contract''; and
            (3) by inserting ``or covered entity under section 2(g)'' 
        after ``given by a contract market''.
                                 <all>