Commodity Futures Trading Commission Research and Development Modernization Act
Bill: H.R.4337 | Sponsor: Rep. Scott, Austin (R-GA)
Policy area: Finance and Financial Sector

Summary:
Commodity Futures Trading Commission Research and Development Modernization Act
This bill directs the Commodity Futures Trading Commission to establish and maintain research, development, demonstration, and information programs regarding emerging technologies and their application to commodities markets. The commission may establish research and development plans for such programs. The bill provides requirements for transactions and nonmonetary contributions related to such programs.

To modernize the authority of the Commodity Futures Trading Commission 
   to conduct research, development, demonstration, and information 
                               programs.

    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 ``Commodity Futures Trading Commission 
Research and Development Modernization Act''.

SEC. 2. MODERNIZATION OF AUTHORITY OF THE COMMISSION TO CONDUCT 
              RESEARCH, DEVELOPMENT, DEMONSTRATION, AND INFORMATION 
              PROGRAMS.

    Section 18 of the Commodity Exchange Act (7 U.S.C. 22) is amended 
to read as follows:

``SEC. 18. RESEARCH AND DEVELOPMENT PROGRAMS.

    ``(a) Programs.--The Commission, as part of its ongoing operations, 
shall establish and maintain research, development, demonstration, and 
information programs that further the purposes of this Act, including 
programs that--
            ``(1) facilitate the understanding by the Commission of--
                    ``(A) emerging technologies, technological 
                advances, and innovations;
                    ``(B) with respect to those technologies, 
                technological advances, and innovations, the potential 
                application to, and effect on, the transactions and 
                markets under the jurisdiction of the Commission;
                    ``(C) associated implications for cybersecurity, 
                data security, and systemic risk; and
                    ``(D) the economics of markets and market 
                participants by the administration of this Act;
            ``(2) provide an environment where emerging technologies, 
        technological advances, and innovations may be explored by the 
        Commission with developers and potential users to evaluate 
        potential effects on the Commission and the markets under the 
        jurisdiction of the Commission;
            ``(3) identify areas where the Commission should adapt its 
        administration of this Act in light of emerging technologies, 
        technological advances, and innovations to benefit the markets 
        under the jurisdiction of the Commission; and
            ``(4) develop educational and other informational materials 
        for dissemination and use among producers, market-users, and 
        the general public regarding--
                    ``(A) the activities, products, entities and 
                markets regulated under this Act;
                    ``(B) emerging technologies, technological 
                advances, and innovations in markets under the 
                jurisdiction of the Commission; and
                    ``(C) applicable requirements of this Act and the 
                regulations prescribed under this Act with regard to 
                the subjects described in subparagraphs (A) and (B).
    ``(b) Research and Development Plan.--
            ``(1) In general.--The Commission may, after notice and 
        comment, adopt a research and development plan for a program 
        established under subsection (a).
            ``(2) Conditions.--A research and development plan adopted 
        pursuant to paragraph (1) shall identify--
                    ``(A) specific areas of interest to the Commission;
                    ``(B) potential activities the Commission will 
                undertake to investigate an area of interest; and
                    ``(C) the means by which the authority described in 
                subsection (c) will be used in the applicable program 
                established under subsection (a).
    ``(c) Other Transaction Authority.--
            ``(1) In general.--Notwithstanding the full and open 
        competition requirements under chapter 33 of title 41, United 
        States Code, the Commission may enter into and perform a 
        transaction (other than a standard contract) for the purpose of 
        aiding or facilitating the programs and activities under 
        subsection (a).
            ``(2) Conditions.--The Commission may enter into a 
        transaction under this subsection only if--
                    ``(A) the transaction is used only in furtherance 
                of a research and development plan established under 
                subsection (b);
                    ``(B) the Commission endeavors to use a competitive 
                process, where appropriate, when determining the 
                parties to the transaction; and
                    ``(C) using a standard contract to do so is either 
                not feasible or not appropriate.
            ``(3) Policies.--The Commission shall, after notice and 
        comment, establish and publish written policies setting forth 
        the manner and criteria for utilizing the authority provided by 
        this subsection.
    ``(d) Acceptance of Nonmonetary Contributions for Research and 
Development Programs, Projects, and Activities.--
            ``(1) Definition of covered nonmonetary contribution.--In 
        this subsection, the term `covered nonmonetary contribution' 
        means a nonmonetary contribution of provision of access, use of 
        facilities, personal property, or services, that is related 
        to--
                    ``(A) sharing of research, data, or other 
                information;
                    ``(B) public presentations; or
                    ``(C) non-commercially available services or 
                systems.
            ``(2) Authorization.--The Commission may accept and use, on 
        behalf of the United States and in accordance with this 
        subsection, any covered nonmonetary contribution.
            ``(3) Conditions.--
                    ``(A) In general.--A covered nonmonetary 
                contribution may be accepted pursuant to this 
                subsection only if the covered nonmonetary contribution 
                is in furtherance of a research and development plan 
                established under subsection (b).
                    ``(B) Limitations.--The Commission may not accept a 
                covered nonmonetary contribution if--
                            ``(i) conditions inconsistent with 
                        applicable laws or regulations apply to the 
                        covered nonmonetary contribution;
                            ``(ii) the covered nonmonetary contribution 
                        is conditioned on, or will require, the 
                        expenditure of appropriated funds not available 
                        to the Commission;
                            ``(iii) using a standard contract or other 
                        transaction authority under subsection (c) to 
                        acquire the covered nonmonetary contribution is 
                        either feasible or appropriate; or
                            ``(iv) acceptance of the covered 
                        nonmonetary contribution would--
                                    ``(I) reflect unfavorably on the 
                                ability of the Commission to carry out 
                                its responsibilities or official duties 
                                in a fair and objective manner;
                                    ``(II) compromise the integrity or 
                                the appearance of the integrity of its 
                                programs or any official involved in 
                                its programs; or
                                    ``(III) give the endorsement or the 
                                appearance of the endorsement by the 
                                Commission or Commission staff of the 
                                products, services, activities, or 
                                policies of the donor.
                    ``(C) Solicitation prohibition.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a covered nonmonetary contribution 
                        may not be solicited by any Commissioner, 
                        employee of, or contractor at the Commission.
                            ``(ii) Exception.--A Commissioner or 
                        employee of the Commission may solicit only a 
                        covered nonmonetary contribution described in 
                        paragraph (1)(B).
                    ``(D) Duration.--To the extent applicable, the 
                Commission shall return any covered nonmonetary 
                contribution accepted pursuant to this subsection 
                within 90 days after accepting the covered nonmonetary 
                contribution.
                    ``(E) Rules.--The Commission shall, after notice 
                and comment, establish and publish written rules 
                setting forth the manner and criteria to be used in 
                determining whether a covered nonmonetary contribution 
                meets the conditions of this paragraph.
            ``(4) Disclosure.--Within 30 days after accepting a covered 
        nonmonetary contribution pursuant to this subsection, the 
        Commission shall publish in the Federal Register a notice 
        detailing--
                    ``(A) the source of the covered nonmonetary 
                contribution;
                    ``(B) the nature of the covered nonmonetary 
                contribution;
                    ``(C) whether the covered nonmonetary contribution 
                was solicited pursuant to paragraph (3)(C)(ii), and if 
                so, by whom; and
                    ``(D) the means by which the covered nonmonetary 
                contribution meets the conditions set forth in 
                paragraph (3).
            ``(5) Sunset.--The authority provided in this subsection 
        may not be exercised on or after October 1, 2025.
    ``(e) Annual Report.--Not later than 60 days after the end of each 
fiscal year, the Commission shall submit to the Committee on 
Agriculture, Nutrition, and Forestry of the Senate and the Committee on 
Agriculture of the House of Representatives a report on all 
transactions entered into under subsection (c) and all covered 
nonmonetary contributions accepted under subsection (d) in the fiscal 
year, which shall include the following:
            ``(1) A brief description of the subject of each such 
        transaction or covered nonmonetary contribution, with an 
        explanation of--
                    ``(A) the potential utility of the transaction or 
                covered nonmonetary contribution to the Commission or 
                the markets regulated by the Commission;
                    ``(B) the means by which the transaction or covered 
                nonmonetary contribution fulfills the goals and 
                objectives of the research and development plan 
                established under subsection (b); and
                    ``(C) the status of all related projects.
            ``(2) The information required to be published pursuant to 
        subsection (d)(4).
            ``(3) A description of all sums expended by the Commission 
        in connection with a transaction entered into under subsection 
        (c), and, if readily ascertainable, the value of any covered 
        nonmonetary contribution accepted under subsection (d).''.
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