§242 Powers of Secretary

Summary

The Secretary has the sole job of overseeing warehouses and the people who run them, plus anyone approved to do work under this law and anyone who claims an interest in farm products using documents or receipts covered by the law. The Secretary must name which agricultural products can be covered by a warehouse license after public notice and a chance to comment. The Secretary can investigate how products are stored, graded, weighed, or certified; inspect warehouses and license applications; decide if a warehouse is suitable for certain products; group warehouses by things like ownership, location, size, condition, and the types of licenses they can get; and set the duties for warehouse operators. The Secretary can make rules for electronic systems that issue and transfer electronic receipts and related shipping, payment, and financing documents, but cannot create central filing systems for financing statements or set rules about security interests. The Secretary can issue a license to operate a warehouse if the warehouse is suitable and the operator agrees to follow the law. The Secretary can also license people to inspect, sample, grade and certify, or weigh and certify products if they show they are competent and agree to follow the law. The Secretary may examine books and records of licensed operators, electronic system operators, and others who issue authorized receipts or electronic documents. On request, the Secretary can audit businesses that store covered products, State agencies that regulate storage, and commodity exchanges. The Secretary may also work with State officials and enter cooperative agreements to carry out these duties.