Title 7, AgricultureRelease 119-73not60

§13a–2 Jurisdiction of States

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

Last updated Apr 3, 2026|Official source

Summary

A state attorney general, the state securities chief, or another state official the state picks can sue on behalf of people who live in the state when someone (but not a contract market, derivatives transaction execution facility, clearinghouse, floor broker, or floor trader) is violating or about to violate the rules in this law. The state can ask a court to stop the bad act, make the person follow the law, get money for residents, or get other relief the court thinks is right. Federal and territorial district courts (including the D.C. court) can hear these cases, order someone to follow the law, and grant temporary or permanent injunctions or other orders without requiring a bond if the state shows good cause. The state must immediately send the Commission written notice and a copy of the complaint when it files a case. The Commission may join the case and may appeal. States may bring similar cases in state court under their own fraud laws. A state may also sue in state court for antifraud violations against people registered under this law (except floor brokers, floor traders, or registered futures associations). For those state-court antifraud cases, the state must give the Commission prior written notice before filing and give a copy of the complaint when filed. The Commission may intervene, appeal, appear as amicus, or the Commission or defendant may remove the case to federal court by following removal rules and filing the removal petition within 60 days after service. States keep their usual powers to investigate, take oaths, and compel witnesses or documents. "State" here includes any U.S. State, the District of Columbia, Puerto Rico, and U.S. territories or possessions.

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 7, Agriculture

Last Updated

Apr 3, 2026

Release point: 119-73not60