[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4535 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 4535
To modernize the authority of the Commodity Futures Trading Commission
to conduct research, development, demonstration, and information
programs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 26, 2019
Mr. Austin Scott of Georgia (for himself, Mr. Marshall, Mr. Johnson of
South Dakota, Mr. Crawford, and Mr. Bost) introduced the following
bill; which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To modernize the authority of the Commodity Futures Trading Commission
to conduct research, development, demonstration, and information
programs.
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 ``Commodity Futures Trading Commission
Research and Development Modernization Act''.
SEC. 2. MODERNIZATION OF AUTHORITY OF THE COMMODITY FUTURES TRADING
COMMISSION TO CONDUCT RESEARCH, DEVELOPMENT,
DEMONSTRATION, AND INFORMATION PROGRAMS.
Section 18 of the Commodity Exchange Act (7 U.S.C. 22) is amended
to read as follows:
``SEC. 18. RESEARCH, DEVELOPMENT, AND DEMONSTRATION OF FINANCIAL
TECHNOLOGY.
``(a) Authority.--The Commission shall establish and maintain, as
part of its ongoing operations, research, development, demonstration,
and information programs that further the purposes and objectives of
this Act, including programs that--
``(1) facilitate the understanding by the Commission of
emerging financial, regulatory, and compliance technologies,
the potential applications of the technologies to the
transactions and markets regulated by the Commission, and
associated implications for cybersecurity, data security, and
systemic risk;
``(2) inform the Commission of important technological
advances and innovations affecting markets regulated by the
Commission;
``(3) provide an environment where technological advances
and innovations may be explored by developers, potential users,
and the Commission to evaluate potential benefits to the
Commission and the markets regulated by the Commission;
``(4) identify areas where the Commission should adapt its
administration of this Act to facilitate technological advances
and innovations that would benefit the markets regulated by the
Commission;
``(5) improve the administration of this Act by the
Commission by identifying technological advances and
innovations, and developing novel tools that are not generally
available from traditional vendors for use by the Commission,
or any division or office of the Commission; and
``(6) develop educational and other informational materials
regarding derivatives trading, technological advances and
innovations in markets regulated by the Commission, and
applicable requirements of this Act and the regulations
prescribed under this Act.
``(b) Authorized Means.--Notwithstanding any other provision of
law, the Commission may use the following authorities for the purpose
of aiding or facilitating the programs and activities under subsection
(a):
``(1) Other transaction authority.--
``(A) In general.--The Commission may enter into
and perform a transaction (other than a standard
contract) on such terms and conditions as the Chairman
of the Commission deems appropriate.
``(B) Determination.--The Commission may only enter
into a transaction under this paragraph if the Chairman
makes a written determination that--
``(i) the transaction is only used in
furtherance of a research and development plan
established under subsection (c)(1);
``(ii) the transaction is executed in
compliance with the guidance promulgated under
subsection (c)(2);
``(iii) the Commission endeavored to use a
competitive process, where appropriate, when
determining the parties to the transaction; and
``(iv) using a standard contract to do so
is either not feasible or not appropriate.
``(2) Gift acceptance authority.--
``(A) In general.--Subject to this paragraph, the
Commission may accept and use, on behalf of the United
States, any non-monetary gift, including any provision
of access, use of facilities, tangible or intangible
personal property, or services, that is related to--
``(i) sharing of research, data, or other
information;
``(ii) public presentations; or
``(iii) non-commercially available services
or systems.
``(B) Determination.--The Commission may accept a
gift only if the Chairman makes a written determination
that--
``(i) the acceptance and use of the gift
meets the requirements of this paragraph;
``(ii) the gift will be used only in
furtherance of a research and development plan
established under subsection (c)(1);
``(iii) the gift is accepted in compliance
with the guidance promulgated under subsection
(c)(2); and
``(iv) using a standard contract or other
transaction to acquire the gift is either not
feasible or not appropriate.
``(C) Limitations.--The Commission may not accept a
gift if--
``(i) conditions inconsistent with
applicable laws or regulations apply to the
gift; or
``(ii) the gift is conditioned on, or will
require, the expenditure of appropriated funds
not available to the Commission.
``(D) Sunset.--The authority provided by
subparagraph (A) may not be exercised on or after
October 1, 2024.
``(c) Research and Development Plan; Guidance.--Before using the
means authorized in subsection (b), the Commission shall--
``(1) approve a research and development plan that furthers
the goals of this section, by establishing--
``(A) the potential areas of interest to the
Commission;
``(B) the potential activities the Commission may
undertake to investigate the potential areas of
interest; and
``(C) a general explanation of how the means will
assist the Commission in understanding the potential
areas of interest; and
``(2) promulgate guidance on the appropriate use of the
means in order to--
``(A) prohibit the Commission or Commission staff
from accepting or soliciting gifts, or engaging in
other transactions, which would unduly restrict or
interfere with the work of the Commission;
``(B) prevent the endorsement or the appearance of
the endorsement by the Commission or Commission staff
of the products, services, activities, or policies of a
donor or contractor; and
``(C) preserve the integrity and independence of
the Commission and Commission staff.
``(d) Annual Report.--Not later than 60 days after the end of each
fiscal year, the Commission shall submit to the Committee on
Agriculture, Nutrition, and Forestry of the Senate and the Committee on
Agriculture of the House of Representatives a report on all
transactions entered into, and all gifts accepted, under subsection (b)
in the fiscal year, which shall include the following:
``(1) A brief description of the subject of each
transaction or gift, with an explanation of--
``(A) its potential utility to the Commission or
the markets regulated by the Commission;
``(B) how it fulfills the goals and objectives of
the research and development plan established under
subsection (c)(1); and
``(C) the status of all related projects.
``(2) The written determination required by subsection (b)
with respect to each such transaction or gift.
``(3) A description of all sums expended by the Commission
in connection with a transaction entered into under subsection
(b)(1), and, if readily ascertainable, the value of any gift
accepted under subsection (b)(2).''.
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