[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 552 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                 S. 552

   To amend the Commodity Exchange Act to exempt certain charitable 
  organizations from regulation as commodity pool operators, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 26, 2019

  Ms. Klobuchar (for herself and Mr. Perdue) introduced the following 
      bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
   To amend the Commodity Exchange Act to exempt certain charitable 
  organizations from regulation as commodity pool operators, 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. EXEMPTION OF QUALIFIED CHARITABLE ORGANIZATIONS FROM 
              REGULATION AS COMMODITY POOL OPERATORS.

    Section 4m of the Commodity Exchange Act (7 U.S.C. 6m) is amended--
            (1) by striking ``Sec. 4m. (1) It'' and inserting the 
        following:

``SEC. 4M. USE OF MAILS OR OTHER MEANS OR INSTRUMENTALITIES OF 
              INTERSTATE COMMERCE BY COMMODITY TRADING ADVISORS AND 
              COMMODITY POOL OPERATORS.

    ``(a) Prohibition.--
            ``(1) In general.--It'';
            (2) in the second sentence--
                    (A) by striking ``The provisions of this section'' 
                and inserting the following:
            ``(2) Exceptions.--
                    ``(A) Commodity trading advisors.--
                            ``(i) In general.--Subject to clause (ii) 
                        and except as provided in subparagraphs (B) and 
                        (C), this section'';
                    (B) by striking ``commodity trading advisor who is 
                a (1) dealer'' and inserting the following: ``commodity 
                trading advisor who is a--
                                    ``(I) dealer'';
                    (C) by striking ``or (2) nonprofit'' and inserting 
                the following: ``; or
                                    ``(II) nonprofit'';
                    (D) by striking ``Commodity Futures Trading 
                Commission Act of 1974; if the advice by the person 
                described in clause (1) or (2) of this sentence'' and 
                inserting the following: ``Commodity Futures Trading 
                Commission Act of 1974.
                            ``(ii) Applicability.--Clause (i) only 
                        applies if the advice by the person described 
                        in subclause (I) or (II) of clause (i)'';
                    (E) by striking ``business:'' and inserting 
                ``business.''; and
                    (F) by striking ``Provided, That such person shall 
                be subject to proceedings under section 14 of this 
                Act.'' and inserting the following:
                    ``(B) Complaints against excepted persons.--A 
                person described in subclause (I) or (II) of clause (i) 
                shall be subject to proceedings under section 14.
                    ``(C) Charitable organizations.--This section shall 
                not apply to any commodity trading advisor or commodity 
                pool operator that is--
                            ``(i) a charitable organization, as defined 
                        in section 3(c)(10)(D)(iii) of the Investment 
                        Company Act of 1940 (15 U.S.C. 80a-
                        3(c)(10)(D)(iii)), or a trustee, director, 
                        officer, employee, or volunteer of such a 
                        charitable organization acting within the scope 
                        of the employment or duties of the person with 
                        the organization, whose trading advice is 
                        provided only to, or with respect to, 1 or more 
                        of--
                                    ``(I) any such charitable 
                                organizations; or
                                    ``(II) an investment trust, 
                                syndicate, or similar form of 
                                enterprise excluded from the definition 
                                of `investment company' pursuant to 
                                section 3(c)(10) of the Investment 
                                Company Act of 1940 (15 U.S.C. 80a-
                                3(c)(10)); or
                            ``(ii) any plan, company, or account 
                        described in section 3(c)(14) of the Investment 
                        Company Act of 1940 (15 U.S.C. 80a-3(c)(14)), 
                        any person or entity who establishes or 
                        maintains such a plan, company, or account, or 
                        any trustee, director, officer, employee, or 
                        volunteer for any of the foregoing plans, 
                        persons, or entities acting within the scope of 
                        the employment or duties of the person with the 
                        organization, whose trading advice is provided 
                        only to, or with respect to, any investment 
                        trust, syndicate, or similar form of enterprise 
                        excluded from the definition of `investment 
                        company' pursuant to section 3(c)(14) of the 
                        Investment Company Act of 1940 (15 U.S.C. 80a-
                        3(c)(14)).'';
            (3) by striking ``(2) Nothing in this Act'' and inserting 
        the following:
    ``(b) Relationship to Other Law.--Nothing in this Act'';
            (4) by striking ``(3) Exception.--'' and all that follows 
        through ``Paragraph (1) shall not apply'' and inserting the 
        following:
    ``(c) Exception.--
            ``(1) In general.--Subsection (a) shall not apply'';
            (5) by striking ``(B) Engaged primarily.--For purposes of 
        subparagraph (A)'' and inserting the following:
            ``(2) Engaged primarily.--For purposes of paragraph (1)'';
            (6) by striking ``(C) Commodity interests.--For purposes of 
        this paragraph'' and inserting the following:
            ``(3) Commodity interests.--For purposes of this 
        subsection''; and
            (7) by adding at the end the following:
    ``(d) Disclosure Concerning Exempted Charitable Organizations.--A 
commodity trading advisor or commodity pool operator that is an 
organization or person described in subsection (a)(2)(C)(i) to or of 
any investment trust, syndicate, or similar form of enterprise excluded 
from the definition of `investment company' pursuant to section 
3(c)(10)(B) of the Investment Company Act of 1940 (15 U.S.C. 80a-
3(c)(10)(B)) shall provide disclosure in accordance with section 7(e) 
of that Act (15 U.S.C. 80a-7(e)).''.
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