Title: Commodity Futures Trading Commission Research and Development Modernization Act
Policy area: Finance and Financial Sector

Summary:
Commodity Futures Trading Commission Research and Development Modernization Act
This bill modifies requirements applicable to the Commodity Futures Trading Commission regarding research and development projects related to financial technologies as they apply to commodities markets. Specifically, the commission may enter into transactions or accept gifts to carry out these purposes. The commission must report annually on each transaction or gift.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4535 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 4535

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 26, 2019

Mr. Austin Scott of Georgia (for himself, Mr. Marshall, Mr. Johnson of 
  South Dakota, Mr. Crawford, and Mr. Bost) introduced the following 
        bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
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 COMMODITY FUTURES TRADING 
              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, DEVELOPMENT, AND DEMONSTRATION OF FINANCIAL 
              TECHNOLOGY.

    ``(a) Authority.--The Commission shall establish and maintain, as 
part of its ongoing operations, research, development, demonstration, 
and information programs that further the purposes and objectives of 
this Act, including programs that--
            ``(1) facilitate the understanding by the Commission of 
        emerging financial, regulatory, and compliance technologies, 
        the potential applications of the technologies to the 
        transactions and markets regulated by the Commission, and 
        associated implications for cybersecurity, data security, and 
        systemic risk;
            ``(2) inform the Commission of important technological 
        advances and innovations affecting markets regulated by the 
        Commission;
            ``(3) provide an environment where technological advances 
        and innovations may be explored by developers, potential users, 
        and the Commission to evaluate potential benefits to the 
        Commission and the markets regulated by the Commission;
            ``(4) identify areas where the Commission should adapt its 
        administration of this Act to facilitate technological advances 
        and innovations that would benefit the markets regulated by the 
        Commission;
            ``(5) improve the administration of this Act by the 
        Commission by identifying technological advances and 
        innovations, and developing novel tools that are not generally 
        available from traditional vendors for use by the Commission, 
        or any division or office of the Commission; and
            ``(6) develop educational and other informational materials 
        regarding derivatives trading, technological advances and 
        innovations in markets regulated by the Commission, and 
        applicable requirements of this Act and the regulations 
        prescribed under this Act.
    ``(b) Authorized Means.--Notwithstanding any other provision of 
law, the Commission may use the following authorities for the purpose 
of aiding or facilitating the programs and activities under subsection 
(a):
            ``(1) Other transaction authority.--
                    ``(A) In general.--The Commission may enter into 
                and perform a transaction (other than a standard 
                contract) on such terms and conditions as the Chairman 
                of the Commission deems appropriate.
                    ``(B) Determination.--The Commission may only enter 
                into a transaction under this paragraph if the Chairman 
                makes a written determination that--
                            ``(i) the transaction is only used in 
                        furtherance of a research and development plan 
                        established under subsection (c)(1);
                            ``(ii) the transaction is executed in 
                        compliance with the guidance promulgated under 
                        subsection (c)(2);
                            ``(iii) the Commission endeavored to use a 
                        competitive process, where appropriate, when 
                        determining the parties to the transaction; and
                            ``(iv) using a standard contract to do so 
                        is either not feasible or not appropriate.
            ``(2) Gift acceptance authority.--
                    ``(A) In general.--Subject to this paragraph, the 
                Commission may accept and use, on behalf of the United 
                States, any non-monetary gift, including any provision 
                of access, use of facilities, tangible or intangible 
                personal property, or services, that is related to--
                            ``(i) sharing of research, data, or other 
                        information;
                            ``(ii) public presentations; or
                            ``(iii) non-commercially available services 
                        or systems.
                    ``(B) Determination.--The Commission may accept a 
                gift only if the Chairman makes a written determination 
                that--
                            ``(i) the acceptance and use of the gift 
                        meets the requirements of this paragraph;
                            ``(ii) the gift will be used only in 
                        furtherance of a research and development plan 
                        established under subsection (c)(1);
                            ``(iii) the gift is accepted in compliance 
                        with the guidance promulgated under subsection 
                        (c)(2); and
                            ``(iv) using a standard contract or other 
                        transaction to acquire the gift is either not 
                        feasible or not appropriate.
                    ``(C) Limitations.--The Commission may not accept a 
                gift if--
                            ``(i) conditions inconsistent with 
                        applicable laws or regulations apply to the 
                        gift; or
                            ``(ii) the gift is conditioned on, or will 
                        require, the expenditure of appropriated funds 
                        not available to the Commission.
                    ``(D) Sunset.--The authority provided by 
                subparagraph (A) may not be exercised on or after 
                October 1, 2024.
    ``(c) Research and Development Plan; Guidance.--Before using the 
means authorized in subsection (b), the Commission shall--
            ``(1) approve a research and development plan that furthers 
        the goals of this section, by establishing--
                    ``(A) the potential areas of interest to the 
                Commission;
                    ``(B) the potential activities the Commission may 
                undertake to investigate the potential areas of 
                interest; and
                    ``(C) a general explanation of how the means will 
                assist the Commission in understanding the potential 
                areas of interest; and
            ``(2) promulgate guidance on the appropriate use of the 
        means in order to--
                    ``(A) prohibit the Commission or Commission staff 
                from accepting or soliciting gifts, or engaging in 
                other transactions, which would unduly restrict or 
                interfere with the work of the Commission;
                    ``(B) prevent the endorsement or the appearance of 
                the endorsement by the Commission or Commission staff 
                of the products, services, activities, or policies of a 
                donor or contractor; and
                    ``(C) preserve the integrity and independence of 
                the Commission and Commission staff.
    ``(d) 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, and all gifts accepted, under subsection (b) 
in the fiscal year, which shall include the following:
            ``(1) A brief description of the subject of each 
        transaction or gift, with an explanation of--
                    ``(A) its potential utility to the Commission or 
                the markets regulated by the Commission;
                    ``(B) how it fulfills the goals and objectives of 
                the research and development plan established under 
                subsection (c)(1); and
                    ``(C) the status of all related projects.
            ``(2) The written determination required by subsection (b) 
        with respect to each such transaction or gift.
            ``(3) A description of all sums expended by the Commission 
        in connection with a transaction entered into under subsection 
        (b)(1), and, if readily ascertainable, the value of any gift 
        accepted under subsection (b)(2).''.
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