[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

<bullet> 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The Warehouse Act was originally enacted in 1916, and was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.''.<bullet>
______