Title 7AgricultureRelease 119-73

§13a–2 Jurisdiction of States

Title 7 › Chapter CHAPTER 1— - COMMODITY EXCHANGES › § 13a–2

Last updated Apr 6, 2026|Official source

Summary

A State’s top lawyer, its securities chief, or someone the State picks can sue in court to stop or fix things that hurt the State’s residents when someone breaks the rules in this chapter. The State can ask a court to stop the bad act, make the person follow the rules, get money for residents, or get other relief. Some market operators and certain floor brokers, floor traders, and similar entities are excluded from parts of this authority. Federal district courts, territorial courts, and the D.C. court can hear these cases. Those courts can order people to obey the law, force them to act to remove dangers, and grant temporary or permanent orders without a bond. A State can sue where the defendant lives, is found, does business, or where the act happened. State officials can still use their own state powers to investigate, take oaths, and compel witnesses or documents. “State” includes the 50 States, D.C., Puerto Rico, and U.S. territories or possessions. When a State starts one of these suits it must immediately send written notice and a copy of the complaint to the Commission. The Commission can join the case and appeal. If a State brings an antifraud case in State court against a person registered under this chapter, it must give the Commission written notice before filing and a copy when it files. The Commission can join, ask to remove the case to federal court, or appear as a friend of the court. Any removal petition must be filed within 60 days after the defendant is served.

Full Legal Text

Title 7, §13a–2

Agriculture — Source: USLM XML via OLRC

(1)Whenever it shall appear to the attorney general of any State, the administrator of the securities laws of any State, or such other official as a State may designate, that the interests of the residents of that State have been, are being, or may be threatened or adversely affected because any person (other than a contract market, derivatives transaction execution facility, clearinghouse, floor broker, or floor trader) has engaged in, is engaging or is about to engage in, any act or practice constituting a violation of any provision of this chapter or any rule, regulation, or order of the Commission thereunder, the State may bring a suit in equity or an action at law on behalf of its residents to enjoin such act or practice, to enforce compliance with this chapter, or any rule, regulation, or order of the Commission thereunder, to obtain damages on behalf of their residents, or to obtain such further and other relief as the court may deem appropriate.
(2)The district courts of the United States, the United States courts of any territory, and the District Court of the United States for the District of Columbia, shall have jurisdiction of all suits in equity and actions at law brought under this section to enforce any liability or duty created by this chapter or any rule, regulation, or order of the Commission thereunder, or to obtain damages or other relief with respect thereto. Upon proper application, such courts shall also have jurisdiction to issue writs of mandamus, or orders affording like relief, commanding the defendant to comply with the provisions of this chapter or any rule, regulation, or order of the Commission thereunder, including the requirement that the defendant take such action as is necessary to remove the danger of violation of this chapter or of any such rule, regulation, or order. Upon a proper showing, a permanent or temporary injunction or restraining order shall be granted without bond.
(3)Immediately upon instituting any such suit or action, the State shall serve written notice thereof upon the Commission and provide the Commission with a copy of its complaint, and the Commission shall have the right to (A) intervene in the suit or action and, upon doing so, shall be heard on all matters arising therein, and (B) file petitions for appeal.
(4)Any suit or action brought under this section in a district court of the United States may be brought in the district wherein the defendant is found or is an inhabitant or transacts business or wherein the act or practice occurred, is occurring, or is about to occur, and process in such cases may be served in any district in which the defendant is an inhabitant or wherever the defendant may be found.
(5)For purposes of bringing any suit or action under this section, nothing in this chapter shall prevent the attorney general, the administrator of the State securities laws, or other duly authorized State officials from exercising the powers conferred on them by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.
(6)For purposes of this section, “State” means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States.
(7)Nothing contained in this section shall prohibit an authorized State official from proceeding in State court on the basis of an alleged violation of any general civil or criminal antifraud statute of such State.
(8)(A)Nothing in this chapter shall prohibit an authorized State official from proceeding in a State court against any person registered under this chapter (other than a floor broker, floor trader, or registered futures association) for an alleged violation of any antifraud provision of this chapter or any antifraud rule, regulation, or order issued pursuant to the chapter.
(B)The State shall give the Commission prior written notice of its intent to proceed before instituting a proceeding in State court as described in this subsection and shall furnish the Commission with a copy of its complaint immediately upon instituting any such proceeding. The Commission shall have the right to (i) intervene in the proceeding and, upon doing so, shall be heard on all matters arising therein, and (ii) file a petition for appeal. The Commission or the defendant may remove such proceeding to the district court of the United States for the proper district by following the procedure for removal otherwise provided by law, except that the petition for removal shall be filed within sixty days after service of the summons and complaint upon the defendant. The Commission shall have the right to appear as amicus curiae in any such proceeding.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2000—Par. (1). Pub. L. 106–554 inserted “derivatives transaction execution facility,” after “contract market,”. 1992—Pars. (1), (8)(A). Pub. L. 102–546 inserted reference to floor trader. 1983—Par. (8). Pub. L. 97–444 added par. (8).

Statutory Notes and Related Subsidiaries

Effective Date

of 1992 AmendmentAmendment by Pub. L. 102–546 effective 180 days after Oct. 28, 1992, with Commodity Futures Trading Commission to issue any

Regulations

necessary to implement such amendment no later than 180 days after Oct. 28, 1992, see section 207(c) of Pub. L. 102–546, set out as a note under section 6e of this title.

Effective Date

of 1983 AmendmentAmendment by Pub. L. 97–444 effective Jan. 11, 1983, see section 239 of Pub. L. 97–444, set out as a note under section 2 of this title.

Effective Date

Section effective Oct. 1, 1978, see section 28 of Pub. L. 95–405, set out as an

Effective Date

of 1978 Amendment note under section 2 of this title.

Reference

Citations & Metadata

Citation

7 U.S.C. § 13a–2

Title 7Agriculture

Last Updated

Apr 6, 2026

Release point: 119-73