[Congressional Record Volume 146, Number 75 (Thursday, June 15, 2000)]
[Senate]
[Pages S5251-S5254]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FITZGERALD:
  S. 2734. A bill to amend the United States Warehouse Act to authorize 
the issuance of electronic warehouse receipts, and for other purposes; 
to the Committee on Agriculture, Nutrition, and Forestry.


                 the Warehouse Improvement Act of 2000

 Mr. FITZGERALD. Mr. President, I rise today to introduce 
legislation to revitalize and streamline the federal program governing 
agricultural commodity warehouses. This legislation, entitled the 
``Warehouse Improvement Act of 2000,'' will make U.S. agriculture more 
competitive in foreign markets through efficiencies and cost savings 
provided by today's computer technology and information management 
systems.
  The Warehouse Act was originally enacted in 1916, and was 
subsequently amended in 1919, 1923, and 1931. However, since that time, 
the authorizing legislation for this program has seen little change. At 
the same time, U.S. agriculture and our society has seen drastic 
changes since the early part of the 20th century. Computer technology 
has revolutionized our world and laptops and handheld computers have 
become almost commonplace. Now is the time for us to bring USDA's 
agricultural warehouse program out of the dark ages and into the 
information age.
  The U.S. Warehouse Act does not mandate participation by warehouse 
operators that it regulates; it simply offers those who apply and 
qualify for licenses an alternative to state regulation. Currently, 
warehouse licenses may be issued for the storage of cotton, grain, 
tobacco, wool, dry beans, nuts, syrup and cottonseed. According to the 
U.S. Department of Agriculture, 45.5 percent of the U.S. off-farm grain 
and rice storage capacity and 49.5 percent of the total cotton storage 
capacity is licensed under the Warehouse Act. In general, these paper 
warehouse receipts that are issued under the Warehouse Act are 
documents of title and represent ownership of the stored commodity.
  The Warehouse Improvement Act of 2000 will make this program more 
relevant to today's agricultural marketing system. The legislation 
would authorize and standardize electronic documents and allow their 
transfer from buyer to seller across state and international 
boundaries. This new paperless flow of agricultural commodities from 
farm gate to end-user would provide significant savings and 
efficiencies for farmers across the Nation.
  In 1992, the Congress directed the Secretary of Agriculture to 
establish electronic warehouse receipts for only the cotton industry. 
Since that time participation in the electronic-based program has grown 
to over half of the U.S. cotton crop. In 1996, for example, nearly 12 
million bales of cotton, out of the total crop of approximately 19 
million bales, were represented by electronic warehouse receipts. 
Recently, the cotton industry estimated that this electronic system 
saves them 5 to 15 dollars per bale, a savings of over $275 million per 
year. The legislation that I introduce today extends this electronic 
warehouse receipt program to all agricultural commodities covered by 
the U.S. Warehouse Act. This reduced paperwork, increased efficiency, 
and substantial time savings will certainly make U.S. agriculture more 
competitive in world markets, giving our U.S. farmers the upper hand.
  In the short year and a half I have served in the U.S. Senate, I have 
introduced two bills that have been delivered to the President's desk 
to help bring the United States Department of Agriculture into the 
information age. First, S. 1733, the Electronic Benefit Transfer 
Interoperability and portability Act of 2000, which improves the 
electronic benefits transfer system that has provided significant 
savings and efficiency to the food stamp program, was signed into law 
on February 11 of this year (P.L. 106-171). And second, S. 777, the 
Freedom to E-File Act, requires USDA to set up a system to allow 
farmers to file all USDA required paperwork over the internet. This 
legislation unanimously passed both the House and Senate recently and 
is currently awaiting the President's signature. The legislation I am 
introducing today follows these two pieces of legislation by requiring 
USDA to use computer technology and information management systems to 
better serve farmers and the American public.
  The Warehouse Improvement Act of 2000 is a positive step toward 
moving the Department of Agriculture from the computer technology 
``dirt road'' to the information superhighway of the 21st century. It 
is common sense legislation and I look forward to working with my 
colleagues on this issue as the legislative session moves forward. I 
would also like to thank a number of the Senate Agriculture Committee 
staff who have worked tirelessly on this issue, including Michael Knipe 
and Bob White on Senator Lugar's staff and Terry Van Doren on my staff. 
They have worked to build consensus among the USDA and the agricultural 
industry to bring about these needed changes to improve the efficiency 
of our grain marketing system. In fact, this legislation enjoys the 
support of USDA, the Association of American Warehouse Control 
Officials, the National Grain and Feed Association, the American Far 
Bureau Federation, and various other commodity groups.
  I ask unanimous consent that the bill be printed in the Record 
following the conclusion of my remarks.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2734

       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 ``Warehouse Improvement Act of 
     2000''.

     SEC. 2. STORAGE OF AGRICULTURAL PRODUCTS IN WAREHOUSES.

       The United States Warehouse Act (7 U.S.C. 241 et seq.) is 
     amended to read as follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `United States Warehouse 
     Act'.

     ``SEC. 2. DEFINITIONS.

       ``In this Act:
       ``(1) Agricultural product.--The term `agricultural 
     product' means an agricultural

[[Page S5252]]

     commodity, as determined by the Secretary, including a 
     processed product of an agricultural commodity.
       ``(2) Approval.--The term `approval' means the consent 
     provided by the Secretary for a person to engage in an 
     activity authorized by this Act.
       ``(3) Department.--The term ``Department'' means the 
     Department of Agriculture.
       ``(4) Electronic document.--The term `electronic document' 
     means a document authorized under this Act generated, sent, 
     received, or stored by electronic, optical, or similar means, 
     including electronic data interchange, electronic mail, 
     telegram, telex, or telecopy.
       ``(5) Electronic receipt.--The term `electronic receipt' 
     means a receipt that is authorized by the Secretary to be 
     issued or transmitted under this Act in the form of an 
     electronic document.
       ``(6) Holder.--
       ``(A) In general.--The term `holder' means a person, as 
     defined by the Secretary, that has possession in fact or by 
     operation of law of a receipt or any electronic document.
       ``(B) Inclusion.--The term `holder' includes a person that 
     has possession of a receipt or electronic document as a 
     creditor of another person.
       ``(7) Person.--The term `person' means--
       ``(A) a person (as defined in section 1 of title 1, United 
     States Code);
       ``(B) a State; and
       ``(C) a political subdivision of a State.
       ``(8) Receipt.--The term `receipt' means a warehouse 
     receipt issued in accordance with this Act, including an 
     electronic receipt.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(10) Warehouse.--The term `warehouse' means a structure 
     or other approved storage facility, as determined by the 
     Secretary, in which any agricultural product may be stored or 
     handled for the purposes of interstate or foreign commerce.
       ``(11) Warehouse operator.--The term `warehouse operator' 
     means a person that is lawfully engaged in the business of 
     storing or handling agricultural products.

     ``SEC. 3. POWERS OF SECRETARY.

       ``(a) In General.--The Secretary shall have exclusive 
     power, jurisdiction, and authority, to the extent that this 
     Act applies, with respect to--
       ``(1) each warehouse operator licensed under this Act;
       ``(2) each person that has obtained an approval to engage 
     in an activity under this Act; and
       ``(3) each person claiming an interest in an agricultural 
     product by means of an electronic document or electronic 
     receipt subject to this Act.
       ``(b) Covered Agricultural Products.--The Secretary shall 
     specify, after an opportunity for notice and comment, those 
     agricultural products for which a warehouse license may be 
     issued under this Act.
       ``(c) Investigations.--The Secretary may investigate the 
     storing, warehousing, classifying according to grade and 
     otherwise, weighing, and certifying of agricultural products.
       ``(d) Inspections.--The Secretary may inspect or cause to 
     be inspected any person or warehouse licensed under this Act 
     and any warehouse for which a license is applied for under 
     this Act.
       ``(e) Suitability for Storage.--The Secretary may determine 
     whether a licensed warehouse, or a warehouse for which a 
     license is applied for under this Act, is suitable for the 
     proper storage of the agricultural product or products stored 
     or proposed for storage in the warehouse.
       ``(f) Classification.--The Secretary may classify a 
     licensed warehouse, or a warehouse for which a license is 
     applied for under this Act, in accordance with the ownership, 
     location, surroundings, capacity, conditions, and other 
     qualities of the warehouse and as to the kinds of licenses 
     issued or that may be issued for the warehouse under this 
     Act.
       ``(g) Warehouse Operator's Duties.--Subject to the other 
     provisions of this Act, the Secretary may prescribe the 
     duties of a warehouse operator operating a warehouse licensed 
     under this Act with respect to the warehouse operator's care 
     of and responsibility for agricultural products stored or 
     handled by the warehouse operator.
       ``(h) Systems for Conveyance of Title in Agricultural 
     Products.--The Secretary may approve 1 or more systems under 
     which title in agricultural products may be conveyed and 
     under which documents relating to the shipment, payment, and 
     financing of the sale of agricultural products may be 
     transferred, including conveyance of receipts and any other 
     written or electronic documents in accordance with a process 
     established by the Secretary.
       ``(i) Examination and Audits.--The Secretary may conduct an 
     examination, audit, or similar activity with respect to--
       ``(1) any person that is engaged in the business of storing 
     an agricultural product that is subject to this Act;
       ``(2) any State agency that regulates the storage of an 
     agricultural product by such a person; or
       ``(3) any commodity exchange with regulatory authority over 
     the storage of agricultural products that are subject to this 
     Act.
       ``(j) Licenses for Operation of Warehouses.--The Secretary 
     may issue to any warehouse operator a license for the 
     operation of a warehouse in accordance with this Act if--
       ``(1) the Secretary determines that the warehouse is 
     suitable for the proper storage of the agricultural product 
     or products stored or proposed for storage in the warehouse; 
     and
       ``(2) the warehouse operator agrees, as a condition of the 
     license, to comply with this Act (including regulations 
     promulgated under this Act).
       ``(k) Licensing of Other Persons.--
       ``(1) In general.--On presentation of satisfactory proof of 
     competency to carry out the activities described in this 
     paragraph, the Secretary may issue to any person a Federal 
     license--
       ``(A) to inspect any agricultural product stored or handled 
     in a warehouse subject to this Act;
       ``(B) to sample such an agricultural product;
       ``(C) to classify such an agricultural product according to 
     condition, grade, or other class and certify the condition, 
     grade, or other class of the agricultural product; or
       ``(D) to weigh such an agricultural product and certify the 
     weight of the agricultural product.
       ``(2) Condition.--As a condition of a license issued under 
     paragraph (1), the licensee shall agree to comply with this 
     Act (including regulations promulgated under this Act).
       ``(l) Examination of Books, Records, Papers, and 
     Accounts.--The Secretary may examine, using designated 
     officers, employees, or agents of the Department, all books, 
     records, papers, and accounts relating to activities subject 
     to this Act of--
       ``(1) a warehouse operator operating a warehouse licensed 
     under this Act;
       ``(2) a person operating a system for the electronic 
     recording and transfer of receipts and other documents 
     authorized by the Secretary; or
       ``(3) any other person issuing receipts or electronic 
     documents authorized by the Secretary under this Act.
       ``(m) Cooperation With States.--The Secretary may--
       ``(1) cooperate with officers and employees of a State who 
     administer or enforce State laws relating to warehouses, 
     warehouse operators, weighers, graders, inspectors, samplers, 
     or classifiers; and
       ``(2) enter into cooperative agreements with States to 
     perform activities authorized under this Act.

     ``SEC. 4. IMPOSITION AND COLLECTION OF FEES.

       ``(a) In General.--The Secretary shall charge, assess, and 
     cause to be collected fees to cover the costs of 
     administering this Act.
       ``(b) Rates.--The fees under this section shall be set at a 
     rate determined by the Secretary.
       ``(c) Treatment of Fees.--All fees collected under this 
     section shall be credited to the account that incurs the 
     costs of administering this Act and shall be available to the 
     Secretary without further appropriation and without fiscal 
     year limitation.
       ``(d) Interest.--Funds collected under this section may be 
     deposited in an interest bearing account with a financial 
     institution, and any interest earned on the account shall be 
     credited under subsection (c).
       ``(e) Efficiencies and Cost Effectiveness.--
       ``(1) In general.--The Secretary shall seek to minimize the 
     fees established under this section by improving efficiencies 
     and reducing costs, including the efficient use of personnel 
     to the extent practicable and consistent with the effective 
     implementation of this Act.
       ``(2) Report.--The Secretary shall publish an annual report 
     on the actions taken by the Secretary to comply with 
     paragraph (1).

     ``SEC. 5. QUALITY AND VALUE STANDARDS.

       ``If standards for the evaluation or determination of the 
     quality or value of an agricultural product are not 
     established under another Federal law, the Secretary may 
     establish standards for the evaluation or determination of 
     the quality or value of the agricultural product under this 
     Act.

     ``SEC. 6. BONDING AND OTHER FINANCIAL ASSURANCE REQUIREMENTS.

       ``(a) In General.--As a condition of receiving a license or 
     approval under this Act (including regulations promulgated 
     under this Act), the person applying for the license or 
     approval shall execute and file with the Secretary a bond, or 
     provide such other financial assurance as the Secretary 
     determines appropriate, to secure the person's performance of 
     the activities so licensed or approved.
       ``(b) Service of Process.--To qualify as a suitable bond or 
     other financial assurance under subsection (a), the surety, 
     sureties, or financial institution shall be subject to 
     service of process in suits on the bond or other financial 
     assurance in the State, district, or territory in which the 
     warehouse is located.
       ``(c) Additional Assurances.--If the Secretary determines 
     that a previously approved bond or other financial assurance 
     is insufficient, the Secretary may suspend or revoke the 
     license or approval covered by the bond or other financial 
     assurance if the person that filed the bond or other 
     financial assurance does not provide such additional bond or 
     other financial assurance as the Secretary determines 
     appropriate.
       ``(d) Third Party Actions.--Any person injured by the 
     breach of any obligation arising under this Act for which a 
     bond or other financial assurance has been obtained as 
     required by this section may sue with respect to the bond or 
     other financial assurance in a district court of the United 
     States to recover

[[Page S5253]]

     the damages that the person sustained as a result of the 
     breach.

     ``SEC. 7. MAINTENANCE OF RECORDS.

       ``To facilitate the administration of this Act, the 
     following persons shall maintain such records and make such 
     reports, as the Secretary may by regulation require:
       ``(1) A warehouse operator that is licensed under this Act.
       ``(2) A person operating a system for the electronic 
     recording and transfer of receipts and other documents that 
     are authorized under this Act.
       ``(3) Any other person issuing receipts or electronic 
     documents that are authorized under this Act.

     ``SEC. 8. PRECLUSION OF LIABILITY.

       ``Nothing in this Act creates any liability with respect to 
     the Secretary or any officer, employee, or agent of the 
     Department in any case in which a warehouse operator or other 
     person authorized by the Secretary to carry out this Act 
     fails to perform a contractual obligation that is not subject 
     to this Act (including regulations promulgated under this 
     Act).

     ``SEC. 9. FAIR TREATMENT IN STORAGE OF AGRICULTURAL PRODUCTS.

       ``(a) In General.--Subject to the capacity of a warehouse, 
     a warehouse operator shall deal, in a fair and reasonable 
     manner, with persons storing, or seeking to store, an 
     agricultural product in the warehouse if the agricultural 
     product--
       ``(1) is of the kind, type, and quality customarily stored 
     or handled in the area in which the warehouse is located;
       ``(2) is tendered to the warehouse operator in a suitable 
     condition for warehousing; and
       ``(3) is tendered in a manner that is consistent with the 
     ordinary and usual course of business.
       ``(b) Allocation.--Nothing in this section prohibits a 
     warehouse operator from entering into an agreement with a 
     depositor of an agricultural product to allocate available 
     storage space.

     ``SEC. 10. COMMINGLING OF AGRICULTURAL PRODUCTS.

       ``(a) In General.--A warehouse operator may commingle 
     agricultural products in a manner approved by the Secretary.
       ``(b) Liability.--A warehouse operator shall be severally 
     liable to each depositor or holder for the care and 
     redelivery of the share of the depositor and holder of the 
     commingled agricultural product to the same extent and under 
     the same circumstances as if the agricultural products had 
     been stored separately.

     ``SEC. 11. TRANSFER OF STORED AGRICULTURAL PRODUCTS.

       ``(a) In General.--In accordance with regulations 
     promulgated under this Act, a warehouse operator may transfer 
     a stored agricultural product from 1 warehouse to another 
     warehouse for continued storage.
       ``(b) Continued Duty.--The warehouse operator from which 
     agricultural products have been transferred under subsection 
     (a) shall deliver to the rightful owner of such products, on 
     request at the original warehouse, such products in the 
     quantity and of the kind, quality, and grade called for by 
     the receipt or other evidence of storage of the owner.

     ``SEC. 12. ISSUANCE OF RECEIPTS AND OTHER DOCUMENTS.

       ``(a) In General.--Subject to subsections (b) and (c) and 
     except as otherwise provided in this Act, at the request of 
     the depositor of an agricultural product stored or handled in 
     a warehouse licensed under this Act, the warehouse operator 
     shall issue a receipt to the depositor as prescribed by the 
     Secretary.
       ``(b) Actual Storage Required.--A receipt may not be issued 
     under this section for an agricultural product unless the 
     agricultural product is actually stored in the warehouse at 
     the time of the issuance of the receipt.
       ``(c) Contents.--Each receipt issued for an agricultural 
     product stored or handled in a warehouse licensed under this 
     Act shall contain such information, for each agricultural 
     product covered by the receipt, as the Secretary may require 
     by regulation.
       ``(d) Prohibition on Additional Receipts or Other 
     Documents.--
       ``(1) Receipts.--While a receipt issued under this Act is 
     outstanding and uncanceled by the warehouse operator, no 
     other or further receipt may be issued for the same 
     agricultural product (or any portion of the same agricultural 
     product) represented by the outstanding receipt, except as 
     authorized by the Secretary.
       ``(2) Other documents.--If a written or electronic document 
     is recorded or transferred under this section, no other 
     similar document in any form shall be issued by any person 
     with respect to the same agricultural product represented by 
     the document, except as authorized by the Secretary.
       ``(e) Electronic Receipts and Electronic Documents.--Except 
     as provided in subsection (f) and notwithstanding any other 
     provision of Federal or State law:
       ``(1) In general.--The Secretary shall promulgate 
     regulations to authorize the issuance of electronic receipts, 
     and the recording and transfer of electronic receipts and 
     other documents, in accordance with this subsection.
       ``(2) Systems for electronic recording and transfer.--
     Electronic receipts and electronic documents issued with 
     respect to an agricultural product may be recorded in, and 
     transferred under, a system or systems maintained in 1 or 
     more locations.
       ``(3) Treatment of holder.--The person designated as a 
     holder of an electronic receipt or other electronic document 
     shall be considered, for the purposes of Federal and State 
     law, to be in possession of the receipt or document.
       ``(4) Security interests.--
       ``(A) Perfection of interest.--Any security interest 
     lawfully asserted by a person under any Federal or State law 
     with respect to an agricultural product that is the subject 
     of an electronic receipt, or an electronic document filed 
     under any system for electronic receipts or other electronic 
     documents issued or filed in accordance with this Act, may be 
     perfected only by recording the security interest in the 
     system in the manner specified by the regulations promulgated 
     under paragraph (1).
       ``(B) Effect of recordation.--The recordation by a person 
     of the person's security interest in any agricultural product 
     included in any system for electronic receipts or other 
     electronic documents issued or filed in accordance with this 
     Act shall, for the purposes of Federal and State law, 
     establish the security interest of the person.
       ``(C) Priority.--If more than 1 security interest exists in 
     an agricultural product covered by an electronic receipt, the 
     priority of the security interests shall be determined by the 
     applicable Federal or State law.
       ``(D) Encumbrances.--
       ``(i) Operators licensed under state law.--If a warehouse 
     operator licensed under State law elects to issue an 
     electronic receipt authorized under this subsection, a 
     security interest, lien, or other encumbrance may be recorded 
     on the electronic receipt under this subsection only if the 
     security interest, lien, or other encumbrance is--

       ``(I) authorized by State law to be included on a written 
     warehouse receipt; and
       ``(II) recorded in a manner prescribed by the Secretary.

       ``(ii) Other applications.--If a warehouse operator 
     licensed under this Act, or a warehouse operator not licensed 
     under State law, elects to issue an electronic receipt 
     authorized under this subsection, a security interest, lien, 
     or other encumbrance shall be recorded on the electronic 
     receipt in a manner prescribed by the Secretary.
       ``(5) Effect of purchase of receipt or document.--A person 
     purchasing an electronic receipt or electronic document shall 
     take possession of the agricultural product free and clear of 
     all liens, except those liens recorded in the system or 
     systems established under the regulations promulgated under 
     paragraph (1).
       ``(6) Acceptance.--
       ``(A) In general.--An electronic receipt issued, and an 
     electronic document transferred, in accordance with the 
     regulations promulgated under paragraph (1) shall be accepted 
     in any business, market, or financial transaction, whether 
     governed by Federal or State law.
       ``(B) No electronic receipt required.--A person shall not 
     be required to issue a receipt or document with respect to an 
     agricultural product in electronic format.
       ``(7) Legal effect.--Information created to comply with 
     this Act (including regulations promulgated under this Act) 
     shall not be denied legal effect, validity, or enforceability 
     on the ground that the information is generated, sent, 
     received, or stored by electronic or similar means.
       ``(8) Option for state licensed warehouse operators.--
     Notwithstanding any other provision of this Act, a State-
     licensed warehouse operator not licensed under this Act may, 
     at the option of the warehouse operator, issue electronic 
     receipts and electronic documents in accordance with this 
     subsection.
       ``(9) Application.--This subsection shall not apply to a 
     warehouse operator that is licensed under State law to store 
     agricultural commodities in a warehouse in the State if the 
     warehouse operator elects--
       ``(A) not to issue electronic receipts authorized under 
     this subsection; or
       ``(B) to issue electronic receipts authorized under State 
     law.
       ``(f) Electronic Receipts and Electronic Documents for 
     Cotton.--
       ``(1) Authority.--
       ``(A) Central filing.--Notwithstanding any other provision 
     of Federal or State law, the Secretary, or the designated 
     representative of the Secretary, may provide that, in lieu of 
     issuing a receipt for cotton stored in a warehouse licensed 
     under this Act or in any other warehouse, the information 
     required to be included in a receipt (i) under this Act in 
     the case of a warehouse licensed under this Act or (ii) under 
     any applicable State law in the case of a warehouse not 
     licensed under this Act, shall be recorded instead in 1 or 
     more central filing systems maintained in 1 or more locations 
     in accordance with regulations promulgated by the Secretary.
       ``(B) Delivery of cotton.--Any record under subparagraph 
     (A) shall include a statement that the cotton shall be 
     delivered to a specified person or to the order of the 
     person.
       ``(C) Electronic transmission facilities between warehouses 
     and system.--
       ``(i) Nonapplicability to warehouses without facilities.--
     This subsection and section 4 shall not apply to a warehouse 
     that does not have facilities to electronically transmit and 
     receive information to and from a central filing system under 
     this subsection.
       ``(ii) No requirement to obtain facilities.--Nothing in 
     this subsection requires a warehouse operator to obtain 
     facilities described in clause (i).

[[Page S5254]]

       ``(2) Recordation and enforcement of liens in central 
     filing system.--Notwithstanding any other provision of 
     Federal or State law:
       ``(A) Recordation.--The record of the possessory interests 
     of persons in cotton included in a central filing system 
     under this subsection--
       ``(i) shall be considered to be a receipt for the purposes 
     of this Act and State law; and
       ``(ii) shall establish the possessory interest of persons 
     in the cotton.
       ``(B) Enforcement.--
       ``(i) Possession of warehouse receipt.--Any person 
     designated as a holder of an electronic warehouse receipt 
     authorized under this subsection or section 4 shall, for the 
     purpose of perfecting the security interest of the person 
     under Federal or State law with respect to the cotton covered 
     by the warehouse receipt, be considered to be in possession 
     of the warehouse receipt.
       ``(ii) Priority of security interests.--If more than 1 
     security interest exists in the cotton represented by the 
     electronic warehouse receipt, the priority of the security 
     interests shall be determined by applicable Federal or State 
     law.
       ``(iii) Applicability.--This subsection is applicable to 
     electronic cotton warehouse receipts and any other security 
     interests covering cotton stored in a cotton warehouse, 
     regardless of whether the warehouse is licensed under this 
     Act.
       ``(3) Conditions for delivery on demand for cotton 
     stored.--A warehouse operator operating a warehouse covered 
     by this subsection, in the absence of a lawful excuse, shall, 
     without unnecessary delay, deliver the cotton stored in the 
     warehouse on demand made by the person named in the record in 
     the central filing system as the holder of the receipt 
     representing the cotton, if the demand is accompanied by--
       ``(A) an offer to satisfy the valid lien of a warehouse 
     operator, as determined by the Secretary; and
       ``(B) an offer to provide an acknowledgment in a central 
     filing system under this subsection, if requested by the 
     warehouse operator, that the cotton has been delivered.

     ``SEC. 13. CONDITIONS FOR DELIVERY OF AGRICULTURAL PRODUCTS.

       ``(a) Prompt Delivery.--In the absence of a lawful excuse, 
     a warehouse operator shall, without unnecessary delay, 
     deliver the agricultural product stored or handled in the 
     warehouse on a demand made by--
       ``(1) the holder of the receipt for the agricultural 
     product; or
       ``(2) the person that deposited the product, if no receipt 
     has been issued.
       ``(b) Payment To Accompany Demand if Requested.--
       ``(1) In general.--Demand for delivery shall be accompanied 
     by payment of the accrued charges associated with the storage 
     of the agricultural product if requested by the warehouse 
     operator.
       ``(2) Special rule for cotton.--In the case of cotton 
     stored in a warehouse, the warehouse operator shall provide a 
     written request for payment of the accrued charges associated 
     with the storage of the cotton to the holder of the receipt 
     at the time at which demand for the delivery of the cotton is 
     made.
       ``(c) Surrender of Receipt.--When the holder of a receipt 
     requests delivery of an agricultural product covered by the 
     receipt, the holder shall surrender the receipt to the 
     warehouse operator, in the manner prescribed by the 
     Secretary, to obtain the agricultural product.
       ``(d) Cancellation of Receipt.--A warehouse operator shall 
     cancel each receipt returned to the warehouse operator upon 
     the delivery of the agricultural product for which the 
     receipt was issued.

     ``SEC. 14. SUSPENSION OR REVOCATION OF LICENSES.

       ``(a) In General.--After providing notice and an 
     opportunity for a hearing in accordance with this section, 
     the Secretary may suspend or revoke any license issued, or 
     approval for an activity provided, under this Act--
       ``(1) for a material violation of, or failure to comply, 
     with any provision of this Act (including regulations 
     promulgated under this Act); or
       ``(2) on the ground that unreasonable or exorbitant charges 
     have been imposed for services rendered.
       ``(b) Temporary Suspension.--The Secretary may temporarily 
     suspend a license or approval for an activity under this Act 
     prior to an opportunity for a hearing for any violation of, 
     or failure to comply with, any provision of this Act 
     (including regulations promulgated under this Act).
       ``(c) Authority To Conduct Hearings.--The agency within the 
     Department that is responsible for administering regulations 
     promulgated under this Act shall have exclusive authority to 
     conduct any hearing required under this section.
       ``(d) Judicial Review.--
       ``(1) Jurisdiction.--A final administrative determination 
     issued subsequent to a hearing may be reviewable only in a 
     district court of the United States.
       ``(2) Procedure.--The review shall be conducted in 
     accordance with the standards set forth in section 706(2) of 
     title 5, United States Code.

     ``SEC. 15. PUBLIC INFORMATION.

       ``(a) In General.--The Secretary may release to the public 
     the results of any investigation made or hearing conducted 
     under this Act, including the names, addresses, and locations 
     of all persons--
       ``(1) that have been licensed under this Act or that have 
     been approved to engage in an activity under this Act; and
       ``(2) with respect to which a license or approval has been 
     suspended or revoked under section 14, including the reasons 
     for the suspension or revocation.
       ``(b) Confidentiality.--Except as otherwise provided by 
     law, an officer, employee, or agent of the Department shall 
     not divulge confidential business information obtained during 
     a warehouse examination or other function performed as part 
     of the duties of the officer, employee, or agent under this 
     Act.

     ``SEC. 16. PENALTIES FOR NONCOMPLIANCE.

       ``(a) Civil Penalties.--If a person fails to comply with 
     any requirement of this Act (including regulations 
     promulgated under this Act), the Secretary may assess, on the 
     record after an opportunity for a hearing, a civil penalty--
       ``(1) of not more than $25,000 per violation, if an 
     agricultural product is not involved in the violation; or
       ``(2) of not more than 100 percent of the value of the 
     agricultural product, if an agricultural product is involved 
     in the violation.
       ``(b) Federal Jurisdiction.--A district court of the United 
     States shall have exclusive jurisdiction over any action 
     brought under this Act without regard to the amount in 
     controversy or the citizenship of the parties.
       ``(c) Arbitration.--Nothing in this Act prevents the 
     enforceability of an agreement to arbitrate that would 
     otherwise be enforceable under chapter 1 of title 9, United 
     States Code.

     ``SEC. 17. REGULATIONS.

       ``The Secretary shall promulgate such regulations as the 
     Secretary considers necessary to carry out this Act.

     ``SEC. 18. AUTHORIZATION OF APPROPRIATION.

       ``There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.''.
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