[House Report 114-174]
[From the U.S. Government Publishing Office]
114th Congress { } Report
1st Session { HOUSE OF REPRESENTATIVES } 114-174
======================================================================
TO AMEND THE UNITED STATES COTTON FUTURES ACT TO EXCLUDE CERTAIN COTTON
FUTURES CONTRACTS FROM COVERAGE UNDER SUCH ACT
_______
June 23, 2015.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Conaway, from the Committee on Agriculture, submitted the following
R E P O R T
[To accompany H.R. 2620]
[Including cost estimate of the Congressional Budget Office]
The Committee on Agriculture, to whom was referred the bill
(H.R. 2620) to amend the United States Cotton Futures Act to
exclude certain cotton futures contracts from coverage under
such Act, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. EXCLUDING CERTAIN COTTON FUTURES CONTRACTS FROM COVERAGE
UNDER UNITED STATES COTTON FUTURES ACT.
(a) In General.--Subsection (c)(1) of the United States Cotton
Futures Act (7 U.S.C. 15B(c)(1)) is amended--
(1) by striking ``except that any cotton futures contract''
and inserting the following: ``except that--
``(A) any cotton futures contract'';
(2) in subparagraph (A) (as designated by paragraph (1)), by
striking the period at the end and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(B) any cotton futures contract that permits tender
of cotton grown outside of the United States is
excluded from the coverage of this paragraph and
section to the extent that the cotton grown outside of
the United States is tendered for delivery under the
cotton futures contract.''.
(b) Application.--The amendments made by subsection (a) shall apply
with respect to cotton futures contracts entered into on or after the
date of the enactment of this Act.
Brief Explanation
H.R. 2620 amends the United States Cotton Futures Act to
exclude cotton future contracts involving cotton that is grown
outside of the United States and tendered for delivery from
coverage under the Act, including the requirement that the
cotton be classified by the U.S. Department of Agriculture
(USDA).
Purpose and Need
The U.S. cotton industry relies significantly on the
futures market--primarily the U.S. Cotton No. 2 futures
contract traded on the Intercontinental Exchange (ICE)--for
price discovery, risk management, and other business needs of
the industry. While continuing to recognize the importance of
the No. 2 contract to the U.S. cotton industry, some market
participants are calling for a new ``world cotton contract''
that is tailored to address risks faced in the global cotton
market.
The Cotton Futures Act of 1916 requires that for any cotton
futures contract listed on a U.S. futures exchange, every
cotton bale tendered under the contract must be sampled and
classed by U.S. Department of Agriculture (USDA) employees. In
addition to classing by USDA, the No. 2 contract currently
permits cotton grown within the United States to be delivered
at only five U.S. cities: Galveston, TX; Houston, TX; Dallas/
Ft. Worth, TX; Greenville, SC; and Memphis, TN. Because its
delivery points are only in the United States, some argue that
the No. 2 contract does not adequately reflect price movements
in foreign markets. In addition, classing and sampling
requirements of the Cotton Futures Act present a commercial
challenge for the cotton industry in hedging risk associated
with the purchase and transport of foreign-grown cotton, as no
U.S. exchange can accept deliveries of any foreign-grown cotton
at any delivery point, unless the USDA has classed it.
The intent of H.R. 2620 is to enable the listing of futures
contracts on U.S.-based exchanges that allow for the delivery
of cotton from multiple origins, including the United States,
and to a variety of global delivery points, also including the
United States. The legislation would exempt cotton grown
outside of the U.S. from the classing and sampling requirements
of the Cotton Futures Act. This would allow such cotton to be
classed in either a USDA testing lab in the U.S. or an
international lab recognized and designated by ICE rules and
policies (such as ICA-Bremen located in Germany) and at a
designated sampling rate less than 100%, if so approved by ICE.
The legislation would not change the treatment of U.S.-
origin cotton for delivery on the current No. 2 contract or a
new world contract, namely that all U.S. cotton would remain
subject to Cotton Futures Act requirements that all bales to be
delivered must be sampled 100% and classed by the USDA
exclusively.
While this bill clears the way for the development of new
contracts, the Committee stresses the importance of ensuring
the No. 2 cotton contract is not changed and continues to serve
as a means of price discovery and hedging for the U.S. cotton
industry. The Committee expects USDA and the Commodity Futures
Trading Commission (CFTC) to monitor the development of any new
cotton contract and the impact it has on the U.S. cotton
industry.
Section-by-Section Analysis of Legislation
Section 1. Excluding certain cotton futures contracts from coverage
under such Act
Subsection (a) amends the Act to exclude any cotton futures
contract that permits the tender of cotton grown outside of the
United States from the definition of ``cotton futures
contract'' to the extent that the cotton grown outside of the
United States is tendered for delivery under the cotton futures
contract.
Subsection (b) amends the Act to provide that the amendment
in subsection (a) will only apply to cotton futures contracts
entered into on or after the date of enactment of this
legislation.
Committee Consideration
I. HEARINGS
No hearings were held by the Committee on H.R. 2620,
legislation to amend the United States Cotton Futures Act.
II. FULL COMMITTEE
The Committee on Agriculture met, pursuant to notice, with
a quorum present, on June 17, 2015, to consider H.R. 2620,
legislation to amend the United States Cotton Futures Act.
H.R. 2620 was placed before the Committee for
consideration. Without objection, a first reading of the bill
was waived and it was open for amendment at any point.
Chairman Conaway, Mr. Peterson, Mr. Austin Scott, and Mr.
David Scott were recognized for statements. Mr. David Scott
offered a technical amendment, which passed by a voice vote.
Mr. Peterson was recognized to offer a motion that the bill
H.R. 2620, as amended, be reported favorably to the House with
recommendation that it do pass. The motion was subsequently
approved by voice vote.
At the conclusion of the meeting, Chairman Conaway advised
Members that pursuant to the Rules of the House of
Representatives Members had until June 19, 2015, to file any
supplemental, minority, additional, or dissenting views with
the Committee.
Without objection, staff was given permission to make any
necessary clerical, technical or conforming changes to reflect
the intent of the Committee. Chairman Conaway thanked all the
Members and adjourned the meeting.
Committee Votes
In compliance with clause 3(b) of rule XIII of the House of
Representatives, H.R. 2620 was reported by voice vote with a
majority quorum present. There was no request for a recorded
vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee on Agriculture's
oversight findings and recommendations are reflected in the
body of this report.
Budget Act Compliance (Sections 308, 402, and 423)
The provisions of clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives and section 308(a)(1) of the
Congressional Budget Act of 1974 (relating to estimates of new
budget authority, new spending authority, new credit authority,
or increased or decreased revenues or tax expenditures) are not
considered applicable. The estimate and comparison required to
be prepared by the Director of the Congressional Budget Office
under clause 3(c)(3) of rule XIII of the Rules of the House of
Representatives and sections 402 and 423 of the Congressional
Budget Act of 1974 submitted to the Committee prior to the
filing of this report are as follows:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 22, 2015.
Hon. K. Michael Conaway,
Chairman, Committee on Agriculture,
U.S. House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2620, a bill to
amend the United States Cotton Futures Act to exclude certain
cotton futures contracts from coverage under such Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Keith Hall.
Enclosure.
H.R. 2620--A bill to amend the United States Cotton Futures Act to
exclude certain cotton futures contracts from coverage under
such Act
Under current law, all cotton tendered for delivery against
a futures contract traded on an exchange listed in the United
States must be sampled and graded by the Department of
Agriculture. As a consequence, nearly all cotton tendered for
such contracts is domestically grown; cost considerations,
among other things, limit the amount of foreign-grown cotton
that is submitted for grading. H.R. 2620 would exempt certain
futures contracts for cotton from those sampling and grading
requirements. Specifically, cotton grown outside of the United
States that is tendered against a futures contract traded on a
United States exchange would not need to be graded by the
Agricultural Marketing Service (AMS), the federal agency that
tests and grades cotton.
Based on information from the AMS, CBO estimates that
implementing the bill would not have a significant effect on
the agency's workload or discretionary costs, because the
agency does not expect a significant increase in requests to
grade cotton grown outside of the United States. Further, under
current law the AMS is authorized to collect fees to cover the
cost of providing classification services; therefore, assuming
appropriations action consistent with that authority, CBO
estimates that the net cost to implement H.R. 2620 would not be
significant. Enacting H.R. 2620 would not affect direct
spending or revenues; therefore, pay-as-you-go procedures do
not apply.
H.R. 2620 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would not affect the budgets of state, local, or tribal
governments.
The CBO staff contact for this estimate is Susan Willie.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Performance Goals and Objectives
H.R. 2620 does not authorize funding, therefore, clause
3(c)(4) of rule XIII of the rules of the House of
Representatives is inapplicable.
Committee Cost Estimate
Pursuant to clause 3(d)(2) of rule XIII of the Rules of the
House of Representatives, the Committee report incorporates the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to sections 402 and 423 of the
Congressional Budget Act of 1974.
Advisory Committee Statement
No advisory committee within the meaning of section 5(b) of
the Federal Advisory Committee Act was created by this
legislation.
Applicability to the Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).
Federal Mandates Statement
The Committee adopted as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).
Earmark Statement Required by Clause 9 of Rule XXI of the Rules of the
House of Representatives
H.R. 2620 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(e), 9(f), or 9(g) of rule XXI of the Rules of the
House of Representatives.
Duplication of Federal Programs
This bill does not establish or reauthorize a program of
the Federal Government known to be duplicative of another
Federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Disclosure of Directed Rule Makings
The Committee does not believe that the legislation directs
an executive branch official to conduct any specific rule
making proceedings within the meaning of 5 U.S.C. 551.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
UNITED STATES COTTON FUTURES ACT
SEC. 1952. COTTON FUTURES CONTRACTS.
(a) Short Title.--This section may be cited as the ``United
States Cotton Futures Act''.
(b) Repeal of Tax on Cotton Futures.--Subchapter D of chapter
39 of title 26 (relating to tax on cotton futures) is repealed.
(c) Definitions.--For purposes of this section--
(1) Cotton futures contract.--The term ``cotton
futures contract'' means any contract of sale of cotton
for future delivery made at, on, or in any exchange,
board of trade, or similar institution or place of
business which has been designated a ``contract
market'' by the Commodity Futures Trading Commission
pursuant to the Commodity Exchange Act and the term
``contract of sale'' as so used shall be held to
include sales, agreements of sale, and agreements to
sell, [except that any cotton futures contract] except
that--
(A) any cotton futures contract that, by its
terms, is settled in cash is excluded from the
coverage of this paragraph and Act[.]; and
(B) any cotton futures contract that permits
tender of cotton grown outside of the United
States is excluded from the coverage of this
paragraph and section to the extent that the
cotton grown outside of the United States is
tendered for delivery under the cotton futures
contract.
(2) Future delivery.--The term ``future delivery''
shall not include any cash sale of cotton for deferred
shipment or delivery.
(3) Person.--The term ``person'' includes an
individual, trust, estate, partnership, association,
company, or corporation.
(4) Secretary.--The term ``Secretary'' means the
Secretary of Agriculture of the United States.
(5) Standards.--The term ``standards'' means the
official cotton standards of the United States
established by the Secretary pursuant to the United
States Cotton Standards Act, as amended.
(d) Bona Fide Spot Markets and Commercial Differences.--
(1) Definition.--For purposes of this section, the
only markets which shall be considered bona fide spot
markets shall be those which the Secretary shall, from
time to time, after investigation, determine and
designate to be such, and of which he shall give public
notice.
(2) Determination.--In determining, pursuant to the
provisions of this section, what markets are bona fide
spot markets, the Secretary is directed to consider
only markets in which spot cotton is sold in such
volume and under such conditions as customarily to
reflect accurately the value of middling cotton and the
differences between the prices or values of middling
cotton and of other grades of cotton for which
standards shall have been established by the Secretary;
except that if there are not sufficient places, in the
markets of which are made bona fide sales of spot
cotton of grades for which standards are established by
the Secretary, to enable him to designate at least five
spot markets in accordance with subsection (f)(3), he
shall, from data as to spot sales collected by him,
make rules and regulations for determining the actual
commercial differences in the value of spot cotton of
the grades established by him as reflected by bona fide
sales of spot cotton, of the same or different grades,
in the market selected and designated by him, from time
to time, for that purpose, and in that event
differences in value of cotton of various grades
involved in contracts made pursuant to subsection
(f)(1) and (2) shall be determined in compliance with
such rules and regulations. It shall be the duty of any
person engaged in the business of dealing in cotton,
when requested by the Secretary or any agent acting
under his instructions, to answer correctly to the best
of his knowledge, under oath or otherwise, all
questions touching his knowledge of the number of
bales, the classification, the price or bona fide price
offered, and other terms of purchase or sale, of any
cotton involved in any transaction participated in by
him, or to produce all books, letters, papers, or
documents in his possession or under his control
relating to such matter. A person complying with the
preceding sentence shall not be liable for any loss or
damage arising or resulting from such compliance.
(3) Withholding information.--Any person engaged in
the business of dealing in cotton who shall, within a
reasonable time prescribed by the Secretary or any
agent acting under his instructions, willfully fail or
refuse to answer questions or to produce books,
letters, papers, or documents, as required under
paragraph (2) of this subsection, or who shall
willfully give any answer that is false or misleading,
shall, upon conviction thereof, be fined not more than
$500.
(e) Form and Validity of Cotton Futures Contracts.--Each
cotton futures contract shall be a basis grade contract, or a
tendered grade contract, or a specific grade contract as
specified in subsections (f), (g), or (h) and shall be in
writing plainly stating, or evidenced by written memorandum
showing, the terms of such contract, including the quantity of
the cotton involved and the names and addresses of the seller
and buyer in such contract, and shall be signed by the party to
be charged, or by his agent in his behalf. No cotton futures
contract which does not conform to such requirements shall be
enforceable by, or on behalf of, any party to such contract or
his privies.
(f) Basis Grade Contracts.--
(1) Conditions.--Each basis grade cotton futures
contract shall comply with each of the following
conditions:
(A) Conformity with regulations.--Conform to
the regulations made pursuant to this section.
(B) Specification of grade, price, and dates
of sale and settlement.--Specify the basis
grade for the cotton involved in the contract,
which shall be one of the grades for which
standards are established by the Secretary,
except grades prohibited from being delivered
on a contract made under this subsection by
subparagraph (E), the price per pound at which
the cotton of such basis grade is contracted to
be bought or sold, the date when the purchase
or sale was made, and the month or months in
which the contract is to be fulfilled or
settled; except that middling shall be deemed
the basis grade incorporated into the contract
if no other basis grade be specified either in
the contract or in the memorandum evidencing
the same.
(C) Provision for delivery of standard grades
only.--Provide that the cotton dealt with
therein or delivered thereunder shall be of or
within the grades for which standards are
established by the Secretary except grades
prohibited from being delivered on a contract
made under this subsection by subparagraph (E)
and no other grade or grades.
(D) Provision for settlement on basis of
actual commercial differences.--Provide that in
case cotton of grade other than the basis grade
be tendered or delivered in settlement of such
contract, the differences above or below the
contract price which the receiver shall pay for
such grades other than the basis grade shall be
the actual commercial differences, determined
as hereinafter provided.
(E) Prohibition of delivery of inferior
cotton.--Provide that cotton that, because of
the presence of extraneous matter of any
character, or irregularities or defects, is
reduced in value below that of low middling, or
cotton that is below the grade of low middling,
or, if tinged, cotton that is below the grade
of strict middling, or, if yellow stained,
cotton that is below the grade of good
middling, the grades mentioned being of the
official cotton standards of the United States,
or cotton that is less than seven-eighths of an
inch in length of staple, or cotton of perished
staple, or of immature staple, or cotton that
is ``gin cut'' or reginned, or cotton that is
``repacked'' or ``false packed'' or ``mixed
packed'' or ``water packed'', shall not be
delivered on, under, or in settlement of such
contract.
(F) Provisions for tender in full, notice of
delivery date, and certificate of grade.--
Provide that all tenders of cotton under such
contract shall be the full number of bales
involved therein, except that such variations
of the number of bales may be permitted as is
necessary to bring the total weight of the
cotton tendered within the provisions of the
contract as to weight; that, on the fifth
business day prior to delivery, the person
making the tender shall give to the person
receiving the same written notice of the date
of delivery, and that, on or prior to the date
so fixed for delivery, and in advance of final
settlement of the contract, the person making
the tender shall furnish to the person
receiving the same a written notice or
certificate stating the grade of each
individual bale to be delivered and, by means
of marks or numbers, identifying each bale with
its grade.
(G) Provision for tender and settlement in
accordance with government classification.--
Provide that all tenders of cotton and
settlements therefor under such contract shall
be in accordance with the classification
thereof made under the regulations of the
Secretary by such officer or officers of the
Government as shall be designated for the
purpose, and the costs of such classification
shall be fixed, assessed, collected, and paid
as provided in such regulations and shall be
credited to the account referred to in section
55 of this title. The Secretary may provide by
regulation conditions under which cotton
samples submitted or used in the performance of
services authorized by this act shall become
the property of the United States and may be
sold and the proceeds credited to the foregoing
account: Provided, That such cotton samples
shall not be subject to the provisions of
chapters 1 to 11 of title 40 and division C
(except sections 3302, 3307(e), 3501(b), 3509,
3906, 4710, and 4711) of subtitle I of title
41. The Secretary is authorized to prescribe
regulations for carrying out the purposes of
this subparagraph and the certificates of the
officers of the Government as to the
classification of any cotton for the purposes
of this subparagraph shall be accepted in the
courts of the United States in all suits
between the parties to such contract, or their
privies, as prima facie evidence of the true
classification of the cotton involved.
(2) Incorporation of conditions in contracts.--The
provisions of paragraphs (1)(C), (D), (E), (F), and (G)
shall be deemed fully incorporated into any such
contract if there be written or printed thereon, or on
the memorandums evidencing the same, at or prior to the
time the same is signed, the phrase ``Subject to United
States Cotton Futures Act, subsection (f).''
(3) Delivery allowances.--For the purpose of this
subsection, the differences above or below the contract
price which the receiver shall pay for cotton of grades
above or below the basic grade in the settlement of a
contract of sale for the future delivery of cotton
shall be determined by the actual commercial
differences in value thereof upon the sixth business
day prior to the day fixed, in accordance with
paragraph (1)(F), for the delivery of cotton on the
contract, established by the sale of spot cotton in the
spot markets of not less than five places designated
for the purpose from time to time by the Secretary, as
such values were established by the sales of spot
cotton, in such designated five or more markets. For
purposes of this paragraph, such values in the such
spot markets shall be based upon the standards for
grades of cotton established by the Secretary. Whenever
the value of one grade is to be determined from the
sale or sales of spot cotton of another grade or
grades, such value shall be fixed in accordance with
rules and regulations which shall be prescribed for the
purpose by the Secretary.
(g) Tendered Grade Contracts.--
(1) Conditions.--Each tendered grade cotton future
contract shall comply with each of the following
conditions:
(A) Compliance with subsection (f).--Comply
with all the terms and conditions of subsection
(f) not inconsistent with this subsection; and
(B) Provision for contingent specific
performance.--Provide that, in case cotton of
grade or grades other than the basis grade
specified in the contract shall be tendered in
performance of the contract, the parties to
such contract may agree, at the time of the
tender, as to the price of the grade or grades
so tendered, and that if they shall not then
agree as to such price, then, and in that
event, the buyer of said contract shall have
the right to demand the specific fulfillment of
such contract by the actual delivery of cotton
of the basis grade named therein and at the
price specified for such basis grade in said
contract.
(2) Incorporation of conditions in contract.--
Contracts made in compliance with this subsection shall
be known as ``subsection (g) Contracts''. The
provisions of this subsection shall be deemed fully
incorporated into any such contract if there be written
or printed thereon, or on the memorandum evidencing the
same, at or prior to the time the same is signed, the
phrase ``Subject to United States Cotton Futures Act,
subsection (g)''.
(3) Application of subsection.--Nothing in this
subsection shall be so construed as to authorize any
contract in which, or in the settlement of or in
respect to which, any device or arrangement whatever is
resorted to, or any agreement is made, for the
determination or adjustment of the price of the grade
or grades tendered other than the basis grade specified
in the contract by any ``fixed difference'' system, or
by arbitration, or by any other method not provided for
by this section.
(h) Specific Grade Contracts.--
(1) Conditions.--Each specific grade cotton futures
contract shall comply with each of the following
conditions:
(A) Conformity with rules and regulations.--
Conform to the rules and regulations made
pursuant to this section.
(B) Specification of grade, price, dates of
sale and delivery.--Specify the grade, type,
sample, or description of the cotton involved
in the contract, the price per pound at which
such cotton is contracted to be bought or sold,
the date of the purchase or sale, and the time
when shipment or delivery of such cotton is to
be made.
(C) Prohibition of delivery of other than
specified grade.--Provide that cotton of or
within the grade or of the type, or according
to the sample or description, specified in the
contract shall be delivered thereunder, and
that no cotton which does not conform to the
type, sample, or description, or which is not
of or within the grade specified in the
contract shall be tendered or delivered
thereunder.
(D) Provision for specific performance.--
Provide that the delivery of cotton under the
contract shall not be effected by means of
``setoff'' or ``ring'' settlement, but only by
the actual transfer of the specified cotton
mentioned in the contract.
(2) Incorporation of conditions in contract The
provisions of paragraphs (1)(A), (C), and (D) shall be
deemed fully incorporated into any such contract if
there be written or printed thereon, or on the document
or memorandum evidencing the same, at or prior to the
time the same is entered into, the words ``Subject to
United States Cotton Futures Act, subsection (h)''.
(3) Application of subsection.--This subsection shall
not be construed to apply to any contract of sale made
in compliance with subsection (f) or (g).
(i) Liability of Principal for Acts of Agent.--When
construing and enforcing the provisions of this section, the
act, omission, or failure of any official, agent, or other
person acting for or employed by any association, partnership,
or corporation within the scope of his employment or office
shall, in every case, also be deemed the act, omission, or
failure of such association, partnership, or corporation, as
well as that of the person.
(j) Regulations.--The Secretary is authorized to make such
regulations with the force and effect of law as he determines
may be necessary to carry out the provisions of this section
and the powers vested in him by this section.
(k) Violations.--Any person who knowingly violates any
regulation made in pursuance of this section, shall, upon
conviction thereof, be fined not less than $100 nor more than
$500, for each violation thereof, in the discretion of the
court, and, in case of natural persons, may, in addition be
punished by imprisonment for not less than 30 days nor more
than 90 days, for each violation, in the discretion of the
court except that this subsection shall not apply to violations
subject to subsection (d)(3).
(l) Applicability to contracts prior to effective date.--The
provisions of this section shall not apply to any cotton
futures contract entered into prior to the effective date of
this section or to any act or failure to act by any person
prior to such effective date and all such prior contracts, acts
or failure to act shall continue to be governed by the
applicable provisions of the Internal Revenue Code of 1954 as
in effect prior to the enactment of this section. All
designations of bona fide spot markets and all rules and
regulations issued by the Secretary pursuant to the applicable
provisions of the Internal Revenue Code of 1954 which were in
effect on the effective date of this section, shall remain
fully effective as designations and regulations under this
section until superseded, amended, or terminated by the
Secretary.
(m) Authorization.--There are authorized to be appropriated
such sums as may be necessary to carry out this section.