‘‘(h) CASH SETTLEMENT OF NATURAL GAS CON-
TRACTS.—
‘‘(1) For the purpose of diminishing, elimi-
nating, or preventing the burden on interstate com-
merce associated with excessive speculation in any 
commodity under contracts of sale of such com-
modity for future delivery made on or subject to the 
rules of contract markets, the Commission shall pre-
scribe rules requiring any board of trade to imple-
ment rules that provide for any contract of sale for 
future delivery of natural gas to be settled in cash 
in lieu of making delivery of the natural gas but only 
in circumstances in which the Commission has deter-
mined that market conditions suggest the possibility 
of manipulation. 
‘‘(2) Any rules prescribed under paragraph (1) 
shall not be construed as limiting or otherwise im-
pairing any authority granted to the Commission or 
to a board of trade, respectively, under section 5.’’. 
(b) CONFORMING AMENDMENTS.—Section 5 of such 
Act (7 U.S.C. 7) is amended—
(1) in subsection (b)(3)—
(A) by striking ‘‘or’’ at the end of subpara-
graph (B)(iii);
(B) by striking the period at the end of 
subparagraph (C) and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(D) any contract of sale for future deliv-
ery of natural gas to be settled in cash in lieu 
of making delivery of the commodity.’’; and 
(2) in subsection (d)(6)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B); 
(B) by striking the period at the end of 
subparagraph (C) and inserting ‘‘and’’; and 
(C) by adding at the end the following: 
‘‘(D) require market participants in any 
contract to settle any contract of sale for future 
delivery of natural gas in cash in lieu of making 
delivery of such commodity.’’. 
(c) DEADLINE.—The Commodity Futures Trading 
Commission shall prescribe the rules required by section 
4a(h) of the Commodity Exchange Act not later than 180 
days after the date of the enactment of this Act. 
SEC. 6. CRIMINAL AND CIVIL PENALTIES. 
(a) ENFORCEMENT POWERS OF COMMISSION.—Sec-
tion 6(c) of the Commodity Exchange Act (7 U.S.C. 9, 
15) is amended in clause (3) of the 10th sentence—
(1) by inserting ‘‘(A)’’ after ‘‘assess such per-
son’’; and 
(2) by inserting after ‘‘each such violation’’ the 
following: ‘‘or (B) in any case of manipulation of, or 
attempt to manipulate, the price of any commodity, 
a civil penalty of not more than the greater of 
$1,000,000 or triple the monetary gain to such per-
son for each such violation,’’. 
(b) MANIPULATIONS AND OTHER VIOLATIONS.—Sec-
tion 6(d) of such Act (7 U.S.C. 13b(d)) is amended in 
the 1st sentence—
(1) by striking ‘‘paragraph (a) or (b) of section 
9 of this Act’’ and inserting ‘‘subsection (a), (b), or 
(f) of section 9’’; and 
(2) by striking ‘‘said paragraph 9(a) or 9(b)’’ 
and inserting ‘‘such subsection (a), (b), or (f)’’. 
(c) NONENFORCEMENT OF RULES OF GOVERNMENT 
OR OTHER VIOLATIONS.—Section 6b of such Act (7 
U.S.C. 13a) is amended—
(1) in the 1st sentence, by inserting ‘‘, or, in 
any case of manipulation of, or an attempt to ma-
nipulate, the price of any commodity, a civil penalty 
of not more than $1,000,000 for each such viola-
tion’’ before the period; and
(2) in the 2nd sentence, by inserting ‘‘, except 
that if the failure or refusal to obey or comply with 
the order involved any offense under section 9(f), the 
registered entity, director, officer, agent, or employee 
shall be guilty of a felony and, on conviction, shall 
be subject to penalties under section 9(f)’’ before the 
period. 
(d) ACTION TO ENJOIN OR RESTRAIN VIOLATIONS.—
Section 6c(d) of such Act (7 U.S.C. 13a–1(d)) is amended 
by striking ‘‘(d)’’ and all that follows through the end of 
paragraph (1) and inserting the following: 
‘‘(d) CIVIL PENALTIES.—(1) In any action brought 
under this section, the Commission may seek and the 
court shall have jurisdiction to impose, on a proper show-
ing, on any person found in the action to have committed 
any violation—
‘‘(A) a civil penalty in the amount of not more 
than the greater of $100,000 or triple the monetary 
gain to the person for each violation; or 
‘‘(B) in any case of manipulation of, or an at-
tempt to manipulate, the price of any commodity, a 
civil penalty in the amount of not more than the 
greater of $1,000,000 or triple the monetary gain to 
the person for each violation.’’.
(e) VIOLATIONS GENERALLY.—Section 9(a) of such 
Act (7 U.S.C. 13(a)) is amended—
(1) by striking ‘‘(or $500,000 in the case of a 
person who is an individual)’’; 
(2) by striking ‘‘five years’’ and inserting ‘‘10 
years’’; and 
(3) in paragraph (2), by striking ‘‘false or mis-
leading or knowingly inaccurate reports’’ and insert-
ing ‘‘knowingly false, misleading, or inaccurate re-
ports’’. 
SEC. 7. 1-YEAR BAN ON MEMBERS OF THE COMMODITY FU-
TURES TRADING COMMISSION WORKING FOR 
ORGANIZATIONS SUBJECT TO REGULATION 
BY THE COMMISSION. 
(a) IN GENERAL.—Section 9 of the Commodity Ex-
change Act (7 U.S.C. 13) is amended by adding at the 
end the following: 
‘‘(g)(1)(A) During the 1-year period that begins with 
the date an individual ceases to be a member of the Com-
mission, the individual shall not become an employee or 
agent of any entity subject to regulation by the Commis-
sion. 
‘‘(B) Subparagraph (A) shall apply in the case of an 
individual who becomes an employee or agent of an entity
subject to regulation by the Commission, as a result of 
a merger or takeover. 
‘‘(2) Whoever violates paragraph (1) shall be liable 
for a civil money penalty of $100,000.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect 90 days after the date of 
the enactment of this Act.
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