An Act to amend the United States Grain Standards Act to improve the grain inspection and weighing system, and for other purposes.
PL 94-582 (H.R.12572), enacted 10/21/1976

PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2867 
Public Law 94-582 
94th Congress 
An Act 
To amend the United States Grain Standards Act to improve the grain inspection 
Oct. 21, 1970 _ 
and weighing system, and for other purposes. 
[H.R. 12572] 
Be it enacted hy the Senate and House of Representatwes of the 
United States of America in Congress assembled, That this Act may United States 
be cited as the "United States Grain Standards Act of 1976". 
Grain Standards 
Act of 1976. 
DECLARATION OF POLICY 
^ ^ ^ ^ ^^ °°*®-
SEC. 2. The United States Grain Standards Act (39 Stat. 482-485, 
as amended; 7 U.S.C. 71, 74-79, 84^87, and 87a-87h) is amended by 
amending section 2 (7 U.S.C. 74) as follows: 
(a) by striking out in the second sentence the word "and" 
immediately before "to provide" and by inserting in such sentence 
immediately before the semicolon the following:", and to regulate 
the weighing and the certification of the weight of grain shipped 
in interstate or foreign commerce in the manner hereinafter 
provided"; 
(b) by inserting immediately following the word "orderly" in 
the second sentence the words "and timely"; and 
(c) by adding a new sentence at the end thereof to read as 
follows: "It is hereby found that all grain and other articles and 
transactions in grain regulated under this Act are either in inter-
state or foreign commerce or substantially affect such commerce 
and that regulation thereof as provided in this Act is necessary 
to prevent or eliminate burdens on such commerce and to regulate 
effectively such commerce.". 
DEFINITIONS 
SEC. 3. Section 3 of the United States Grain Standards Act, as 
amended (7 U.S.C. 75), is amended as follows: 
(a) Subsection (i) is amended to read as follows: 
"(i) The term 'official inspection' means the determination (by 
original inspection, and when requested, reinspection and appeal 
inspection) and the certification, by official inspection personnel of 
the kind, class, quality, or condition of grain, under standards pro- 
' 
vided for in this Act, or the condition of vessels and other carriers 
or receptacles for the transportation of grain insofar as it may affect 
the quality or condition of such grain; or, upon request of the interested 
party applying for inspection, the quantity of sacks of grain, or other 
facts relating to grain under other criteria approved by the Adminis-
trator under this Act (the term 'officially inspected' shall be construed 
accordingly);". 
(b) Subsection (j) is amended to read as follows: 
"(j) The term 'official inspection personnel' means persons licensed 
or otherwise authorized by the Administrator pursuant to section 8 
of this Act to perform all or specified functions involved in official 
inspection, official weighing, or supervision of weighing, or in the 
supervision of official inspection, official weighing or supervision of 
weighing;". 
90 STAT. 2868 
PUBLIC LAW 94-582—OCT. 21, 1976 
(c) Subsection (k) is amended to read as follows: 
" (k) The term 'official mark' means any symbol prescribed by regu-
lations of the Administrator to show the official determination of 
official inspection or official weighing;". 
(d) Subsection (1) defining the term "official grade designation" 
is amended by inserting immediately after the word "standards", the 
following: "relating to kind, class, quality, and condition of grain,". 
(e) Subsection (m) is amended to read as follows: 
"(m) The term 'official agency' means any State or local govern-
mental agency, or any person, designated by the Administrator pur-
Post, p. 2870. 
suant to subsection (f) of section 7 of this Act for the conduct of 
official inspection (other than appeal inspection), or subsection (b) 
Post, p. 2875. 
of section 7A of this Act for the conduct of supervision of weighing;". 
(f) Subsection (n) is amended by striking out the word "Secretary" 
and inserting in lieu thereof the word "Administrator". 
(g) Subsection (u) is amended to read as follows: 
" (u) The term 'deceptive loading, handling, weighing, or sampling' 
means any manner of loading, handling, weighing, or sampling 
that deceives or tends to deceive official inspection personnel, as speci-
fied by regulations of the Administrator under this Act;". 
7 use 75. 
(h) Section 3 is .further amended by adding at the end thereof new 
subsections (v), (w), (x), (y), (z), and (aa) as follows: 
"(v) The term 'export elevator' means any grain elevator, ware-
house, or other storage or handling facility in the United States as 
determined by the Administrator, from which grain is shipped from 
the United States to an area outside thereof; 
"(w) The term 'export port location' means a commonly recognized 
port of export in the United States or Canada, as determined by the 
Administrator, from which grain produced in the United States is 
shipped to any place outside the United States; 
"(x) The term 'official weighing' means the determination and 
certification by official inspection personnel of the quantity of a lot 
of grain under standards provided in this Act, based on the actual 
performance of weighing or the physical supervision thereof, includ-
ing the physical inspection and testing for accuracy of the weights 
and scales and the physical inspection of the premises at which the 
weighing is performed and the monitoring of the discharge of grain 
into the elevator or conveyance (the terms 'officially weigh' and 'offi-
cially weighed' shall be construed accordingly); 
"(y) The term 'supervision o,f weighing' means the supervision of 
the weighing process and of the certification of the weight of grain, 
and the physical inspection of the premises at which the weighing 
is performed to assure that all the grain intended to be weighed has 
been weighed and discharged into the elevator or conveyance repre-
sented on the weight certificate or other document; 
"(z) The term 'Administrator' means the Administrator of the 
Federal Grain Inspection Service or his delegates; 
"(aa) The term 'Service' means the Federal Grain Inspection 
Service.". 
FEDERAL GRAIN INSPECTION SERVICE 
SEC. 4. The United States Grain Standards Act, as amended, is 
amended by adding a new section 3A as follows: 
"FEDERAL GRAIN INSPECTION SERVICE 
Establishment. 
"SEO. 3A. There is created and established in the Department of 
7 use 75a. 
Agriculture a Service to be known as the Federal Grain Inspection 
PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2869 
Service, all the powers of which shall be exercised by an Administra-
tor, under the general direction and supervision of the Secretary, who 
shall be appointed by the President, by and with the advice and con-
sent of the Senate. The Administrator shall be responsible for the 
administration of this Act and for the establishment of policies, 
guidelines, and regulations by which the Service is to carry out the 
provisions of this Act.". 
STANDARDS 
SEC. 5. Section 4 of the United States Grain Standards Act, as 
amended (7 U.S.C. 76), is amended as follows: 
(a) Subsection (a) is amended to read as follows: 
"(a) The Administrator is authorized to investigate the handling. Investigation, 
weighing, grading, and transportation of grain and to fix and estab-
lish (1) standards of kind, class, quality, and condition for corn, 
wheat, rye, oats, barley, flaxseed, grain sorghum, soybeans mixed 
grain, and such other grains as in his judgment the usages of the 
trade may warrant and permit, and (2) standards for accurate weigh-
ing and weight certification procedures and controls, including safe-
.":uards over equipment calibration and maintenance for grain shipped 
in interstate or foreign commerce; and the Administrator is author-
ized to amend or revoke such standards whenever the necessities of 
the trade may require.". 
(b) Subsection (b) is amended by striking out the word "Secretary" 
wherever it appears therein and inserting in lieu thereof the word 
"Administrator". 
OFFICIAL INSPECTION AND WEIGHING REQUIREMENTS 
SEC. 6. Section 5 of the United States Grain Standards Act, as 
amended (7 U.S.C. 77), is amended to read as follows: 
"OFFICIAL INSPECTION AND WEIGHING RF^UIREMENTS 
"SEC. 5. (a) "Whenever standards are effective under section 4 of 
this Act for any grain— 
Supra. 
"(1) no person shall ship from the United States to any place 
outside thereof any lot of such grain, unless such lot is officially 
weighed and officially inspected (on the basis of official samples 
taken after final elevation as near the final spout through which 
the grain passes as physically practicable as it is being loaded 
aboard, or while it is in, the final carrier in which it is to be trans-
ported from the United States) in accordance with such stand-
ards, and unless a valid official certificate showing the official grade 
designation and certified weight of the lot of grain has been 
provided by official inspection personnel and is promptly fur-
nished by the shipper, or his agent, to the consignee with the bill 
of lading or other shipping documents covering the shipment: 
Provided^ That the Administrator may waive the foregoing Waiver, 
requirement in emergency or other circumstances which would not 
impair the objectives of this Act: Provided further^ That the 
Administrator shall waive the requirement for official inspection 
whenever the parties to a contract for such shipment of a lot of 
grain (which is not sold, offered for sale, or consigned for sale 
by grade) from the United States to any place outside thereof 
mutually agree under the contract to ship such lot of grain with-
out official inspection being performed and a copy of the contract 
is furnished to the Administrator prior to shipment; 
90 STAT. 2870 
PUBLIC LAW 94-582—OCT. 21, 1976 
"(2) except as the Administrator may provide in emergency 
or other circumstances which would not impair the objectives of 
this Act, all other grain transferred out of and all grain trans-
ferred into an export elevator at an export port location shall be 
officially weighed in accordance with such standards; and 
"(3) except as otherwise authorized by the Administrator, 
whenever a lot of grain is both officially inspected and officially 
weighed while being transferred into or out of a grain elevator, 
warehouse, or other storage or handling facility, an official cer-
tificate shall be issued showing both the official grade designation 
and the certified weight of the lot of grain. 
"(b) All official inspection and official weighing, whether performed 
by authorized Service employees or any other person licensed under 
Post, p. 2877. 
section 8 of this Act, shall be supervised by representatives of the 
Administrator,' in accordance with such regulations as he may 
provide.". 
REQUIRED USE OF OFFICIAL GRADE DESIGNATIONS 
SEC. 7. Section 6(a) of the United States Grain Standards Act, as 
amended (7 U.S.C. 78), is amended by inserting immediately after 
the words "Whenever standards", the following: "relating to kind, 
class, quality, or condition of grain". 
OFFICIAL INSPECTION 
AUTHORITY 
SEC. 8. (a) Section 7 of the United States Grain Standards Act, as 
amended (7 U.S.C. 79), is amended as follows: 
(1) Subsections (a), (b), and (c) are amended by striking out the 
word "Secretary" wherever it appears and inserting in lieu thereof the 
word "Administrator". 
(2) Subsection (b) is further amended by striking out the words 
"or with respect to United States grain in Canadian ports". 
(3) Subsection (c) is further amended (A^ by striking out the 
words "Department of Agriculture" and inserting in lieu thereof the 
word "Service"; (B) by inserting the words "and surrender" immedi-
ately after the word "cancellation"; and (C) by adding immediately 
before the period at the end of the first sentence the following: "; and 
the use of standard forms for official certificates". 
(4) Subsection (d) is amended by striking out the word "Certifi-
cates" and inserting in lieu thereof the words "Official certificates 
setting out the results of official inspection". 
(5) Section 7 is further amended by changing subsections (e) and 
(f) and adding new subsections (g), (h), (i), and (j) to read, respec-
tively, as follows: 
"(e)(1) Except as otherwise provided in paragraph (2) of this 
subsection, the Administrator shall cause official inspection at export 
port locations, for all grain required or authorized to be inspected 
by this Act, to be performed by official inspection personnel employed 
by the Service or other persons under contract with the Service as 
provided in section 8 of this Act. 
Authority 
"(2) If the Administrator determines pursuant to paragraph (3) 
delegation. 
of this subsection that a State agency which was performing official 
inspection at an export port location under this Act on July 1, 1976, 
is qualified to perform official inspection and meets the criteria in 
< 
subsection (f) (1) (A) of this section, the Administrator may delegate 
PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2871 
authority to the State agency to perform all or specified functions in-
volved in oj0&cial inspection (other than appeal inspection) at export 
port locations within the State, including export port locations which 
may in the future be established, subject to such rules, regulations, 
instructions, and oversight as he may prescribe, and any such official 
inspection shall continue to be the direct responsibility of the Admin-
istrator. Any such delegation may be revoked by the Administrator, 
at his discretion, at any time upon notice to the State agency without 
opportunity for a hearing. The Administrator may provide that grain 
loaded at an interior point in the United States into a rail car, barge, 
or other container as the final carrier in which it is to be transported 
from the United States shall be inspected in the manner provided in 
this subsection or subsection (f) of this section, as the Administrator 
determines will best meet the objectives of this Act. 
" (3) Prior to delegating authority to a State agency for the perform- Investigation, 
ance of official inspection at export port locations pursuant to para-
graph (2) of this subsection, the Administrator shall (A) conduct an 
investigation to determine whether such agency is qualified, and (B) 
make findings based on such investigation. In conducting the investi- Consultation, 
gation, the Administrator shall consult with, and review the available review, 
files of the Department of Justice, the Office of Investigation of the 
Department of Agriculture (or such other organization or agency 
within the Department of Agriculture which may be delegated the 
authority, in lieu thereof, to conduct investigations on behalf of the 
Department of Agriculture), and the General Accounting Office. 
"(f)(1) With respect to official inspections other than at export port Designation, 
locations, the Administrator is authorized, upon application by any 
State or local governmental agency, or any person, to designate such 
agency or person as an official agency for the conduct of all or specified 
functions involved in official inspection (other than appeal inspection) 
at locations where the Administrator determines official inspection is 
needed, if— 
"(A) the agency or person shows to the satisfaction of the 
Administrator that such agency or person— 
"(i) has adequate facilities and qualified personnel for the 
performance of such official inspection functions; 
" (ii) will provide for the periodic rotation of official inspec-
tion personnel among the grain elevators, warehouses, or 
other storage or handling facilities at which the State or 
person provides official inspection, as is necessary to preserve 
the integrity of the official inspection service; 
"(iii) will meet training requirements and personnel stand-
ards established by the Administrator under section 8(g) of 
this Act; 
"(iv) will otherwise conduct such training and provide 
such supervision of its personnel as are necessary to assure 
that they will provide official inspection in accordance with 
•' -
this Act and the regulations and instructions thereunder; 
"(v) will not charge official inspection fees that are dis-
criminatory or unreasonable; 
"(vi) if a State or local governmental agency, will not use 
any moneys collected pursuant to the charging of fees for any 
purpose other than the maintenance of the official inspection 
operation or other agricultural programs operated oy the 
State or local governmental agency; 
• *
-
90 STAT. 2872 
PUBLIC LAW 94-582—OCT. 21, 1976 
"(vii) and any related entities do not have a conflict of 
Post, p. 2880. 
interest prohibited by section 11 of this Act; 
"(viii) will maintain complete and accurate records of its 
organization, staffing, official activities, and fiscal operations, 
and such other records as the Administrator may require by 
regulation; 
"(ix) if a State or local governmental agency, will employ 
personnel on the basis of job qualifications rather than politi-
cal affiliations; 
"(x) will comply with all provisions of this Act and the 
regulations and instructions thereunder; and 
''(xi) meets other criteria established in regulations issued 
under this Act relating to official functions under this Act; 
and 
" ( B ) the Administrator determines that the applicant is better 
able than any other applicant to provide official inspection service. 
"(2) Not more than one official agency for carrying out the pro-
visions of this Act shall be operative at one time for any geographic 
area as determined by the Administrator to effectuate the objectives 
Ante, p. 2867. 
stated in section 2 of this Act, but this paragraph shall not be applic-
able to prevent any inspection agency from operating in any area in 
which it was operative on August 15, 1968. No official agency or State 
delegated authority pursuant to subsection (e) (2) of this section shall 
officially inspect under this Act any official or other sample drawn 
from a lot of grain and submitted for inspection unless such lot of 
grain is physically located within the geographic area assigned to the 
agency by the Administrator at the time such sample is drawn. No 
State or local governmental agency or person shall provide any official 
inspection for the purposes of this Act except pursuant to an unsus-
pended and unrevoked delegation of authority or designation by the 
Administrator, as provided in this section, or as provided in section 
Post, ^.2^11. 
8(a) of this Act. 
Termination. 
"(g)(1) Designations of official agencies shall terminate at such time 
as specified by the Administrator but not later than triennially and 
may be renewed in accordance with the criteria and procedure pre-
scribed in subsections (e) and (f) of this section. 
" (2) A designation of an official agency may be amended at any time 
upon application by the official agency if the Administrator deter-
mines that the amendment will be consistent with the provisions and 
objectives of this Act; and a designation will be cancelled upon 
request by the official agency with ninety days written notice to the 
Administrator. A fee as prescribed by regulations of the Administra-
tor shall be paid by the official agency to the Administrator for each 
such amendment, to cover the costs incurred by the Service in con-
nection therewith, and it shall be deposited in the fund created in 
subsection (j) of this section. 
"(3) The Administrator may revoke a designation of an official 
agency whenever, after opportunity for hearing is afforded the agency, 
the Administrator determines that the agency has failed to meet one 
or more of the criteria specified in subsection (f) of this section or the 
regulations under this Act for the performance of official functions, or 
otherwise has not complied with any provision of this Act or any regu-
lation prescribed or instruction issued to such agency under this Act, 
or has been convicted of any violation of other Federal law involving 
Suspension. 
the handling or official inspection of grain: Provided, 
That the Admin-
istrator may, without first affording the official agency an opportunity 
Fee. 
Revocation. 
PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2873 
Ante, p, 2867. 
Post, p. 2877. 
Canadian 
Government, 
inspection 
agreement. 
Ante, p. 2869. 
Inspection fees, 
regulations. 
for a hearing, suspend any designation pending final determination of 
the proceeding whenever the Administrator has reason to believe there 
is cause for revocation of the designation and considers such action to 
be in the best interest of the official inspection system under this Act. 
The Administrator shall afford any such agency an opportunity Hearing. 
for a hearing within thirty days after temporarily suspending such 
designation. 
"(h) If the Administrator determines that official inspection by an 
official agency designated under subsection (f) of this section is not 
available on a regular basis at any location (other than at an export 
port location) where the Administrator determines such inspection is 
needed to effectuate the objectives stated in section 2 of this Act, and 
that no official agency within reasonable proximity to such location is 
willing to provide or has or can acquire adequate personnel and facili-
ties for providing such service on an interim basis, official inspection 
shall be provided by authorized employees of the Service, and other 
persons licensed by the Administrator to perform official inspection 
functions, as provided in section 8 of this Act, until such time as the 
service can be provided on a regular basis by an official agency. 
"(i) The Administrator is authorized to cause official inspection 
under this Act to be made, as provided in subsection (a) of section 5 
of this Act, in Canadian ports of United States export grain trans-
shipped through Canadian ports, and pursuant thereto the Secretary 
is authorized to enter into an agreement with the Canadian Govern-
ment for such inspection. 
, 
"(j) (1) The Administrator shall, under such regulations as he may 
prescribe, charge and collect reasonable inspection fees to cover the 
estimated cost to the Service incident to the performance of official 
inspection except when the official inspection is performed by a desig-
nated official agency or by a State under a delegation of authority. The 
fees authorized by this subsection shall, as nearly as practicable and 
after taking into consideration any proceeds from the sale of samples, 
cover the costs of the Service incident to its performance of official 
inspection services in the United States and on United States grain 
in Canadian ports, including administrative and supervisory costs 
directly related to such official inspection of grain incurred outside the 
Service's Washington office. Such fees, and the proceeds from the sale 
of samples obtained for purposes of official inspection which become 
the property of the United States, shall be deposited into a fund which 
shall be available without fiscal year limitation for the expenses of the 
Service incident to providing services under this Act. 
"(2) Each designated official agency and each State agency to which 
authority has been delegated under subsection (e) of this section shall 
pay to the Administrator fees in such amount as the Administrator 
determines fair and reasonable and as will cover the estimated 
costs incurred by the Service (outside of the Washington office) relat-
ing to direct supervision of official agency personnel and direct super-
vision by Service personnel of its field office personnel, except costs 
incurred under paragraph (3) of subsection (g) of this section and 
sections 9, 10, and 14 of this Act. The fees shall be payable after the Post, pp. 2879, 
services are performed at such times as specified by the Administrator 2884. 
and shall be deposited in the fund created in paragraph (1) of this 
subsection. Failure to pay the fee within thirty days after it is due Termination, 
shall result in automatic termination of the delegation or designation, 
which shall be reinstated upon payment, within such period as speci-
fied by the Administrator, of the fee currently due plus intei'est and 
Fund. 
Fees. 
90 STAT. 2874 
PUBLIC LAW 94-582—OCT. 21, 1976 
Investigation and 
study. 
7 u s e 79 note. 
Study, 
7 u s e 71. 
7 u s e 241. 
18 u s e 1 et seq. 
Findings. 
Reports to 
congressional 
committees and 
eomptroUer 
General. 
Assessment, 
evaluation. 
Report to 
congressional 
committees. 
any further expenses incurred by the Service because of such 
termination.". 
(b) (1) In order to provide information for use by the Congress in 
evaluating the needs of the grain inspection and weighing system at 
points in the United States other than at export port locations; the 
Administrator of the Federal Grain Inspection Service, the Director 
of the Office of Investigation of the United States Department of 
Agriculture (or such other organization or agency within the Depart-
ment of Agriculture which may be delegated the authority, in lieu 
thereof, to conduct investigations on behalf of the Department of 
Agriculture), and the Comptroller General of the United States shall 
severally conduct investigations into and study grain inspection and 
weighing in the interior of the United States. The studies shall 
address, but are not limited to, the tasks of (A) determining the relia-
bility and effectiveness of present official inspection and weighing pro-
cedures in the interior of the United States, and (B) evaluating the 
operating procedures and management practices of agencies provid-
ing grain inspection and weighing services in the interior of the 
United States, as they relate to the integrity and accuracy of the 
services. 
(2) The Director of the Office of Investigation specifically is 
directed to study the extent of any irregularities or problem areas 
under the present inspection and weighing systems and conflicts of 
interest rules and develop factual summaries of evidence disclosed in 
the Director's investigations into violations of the United States Grain 
Standards Act, the grain weighing provisions of the United States 
"Warehouse Act, and related provisions of title 18 of the United States 
Code: Provided, That the Director shall not submit such summary 
with respect to any criminal investigation which is pending at the time 
the report is due. 
(3) The Administrator of the Federal Grain Inspection Service 
shall make findings with respect to present grain inspection and weigh-
ing agencies at each inland terminal marketing area of the United 
States at which over fifty million bushels of grain are inspected in 
an average year, such findings to include (A) results of interviews 
with shippers who ship grain to and consignees who receive grain 
from such terminal marketing areas, and (B) a thorough analysis of 
inspection and weighing error rates of such agencies, based on exist-
ing documentation and the sampling during the investigation of a rep-
resentative number of randomly selected lots of grain shipped to and 
from such terminal marketing areas. 
(4) The Director of the Office of Investigation and the Adminis-
trator of the Federal Grain Inspection Service shall complete their 
investigations and study and shall submit their reports to the Commit-
tee on Agriculture of the House of Kepresentatives and the Commit-
tee on Agriculture and Forestry of the Senate and the Comptroller 
General not later than eighteen months after the effective date of this 
Act. 
(5) The Comptroller General, in making his investigations and 
study, shall (A) assess the present grain inspection and weighing sys-
tem in the interior of the United States, and (B) evaluate the reports 
submitted under this subsection by the Director of the Office of 
Investigation and the Administrator of the Federal Grain Inspection 
Service. The Comptroller General shall submit a report setting forth 
the findings of such study and evaluation and his recommendations 
for changes in the United States Grain Standards Act to such Com-
mittees not later than two years after the effective date of this Act. 
PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2875 
WEIGHING AND EQUIPMENT TESTING 
SEC. 9. The United States Grain Standards Act, as amended, is 
amended by adding new sections 7A and 7B as follows: 
" W E I G H I N G AUTHORITY 
"SEC. 7A. (a) The Administrator shall cause official weighing 
under standards provided for in section 4 of this Act to be made of 
all grain required to be officially weighed as provided in section 5 of 
this Act, in accordance with such regulations as the Administrator 
may prescribe. 
"(b) The Administrator is authorized to cause supervision of 
weighing under standards provided in section 4 of this Act to be 
performed at any grain elevator, warehouse, or other storage or 
handling facility located other than at export port locations at which 
official inspection is provided pursuant to the provisions of this Act, 
in such manner as the Administrator deems appropriate and under 
such regulations as the Administrator may provide. 
"(c)(1) With respect to official weighing or supervision of weighing 
for locations at which official inspection is provided by the Service, 
the Administrator shall cause such official weighing or supervision of 
weighing to be performed by official inspection personnel employed 
by the Service. 
"(2) With respect to official weighing or supervision of weighing 
for any location at which official inspection is provided other than by 
the Service, the Administrator is authorized, with respect to export 
port locations, to delegate authority to perform official weighing to 
the State agency providing official inspection service at such location, 
and with respect to any other location, to designate the agency or 
person providing official inspection service at such location to perform 
supervision of weighing, if such agency or person qualifies for a 
delegation of authority or designation number section 7 of this Act, 
except that where the term 'official inspection' is used in such section 
it shall be deemed to refer to 'official weighing' or 'supervision of 
weighing' under this section. If such agency or person is not available 
to perform such weighing services, or the Administrator determines 
that such agency or person is not qualified to perform such weighing 
services, then (A) at export elevators at export port locations official 
weighing shall be performed by official inspection personnel employed 
by the Service, and (B) at any other location, the Administrator is 
authorized to cause supervision of weighing to be performed by official 
inspection personnel employed by the Service or designate any State 
or local governmental agency, or any person to perform supervision 
of weighing, if such agency or person meets the same criteria that 
agencies must meet to be designated to perform official inspection as 
set out in section 7 of this Act, except that where the term 'official 
inspection' is used in such section it shall be deemed to refer to 'super-
vision of weighing' under this section. Delegations and designations 
made pursuant to this subsection shall be subject to the same provisions 
for delegations and designations set forth in subsection (g) of 
section 7 of this Act. 
"(d) The Administrator is authorized to cause official weighing 
under this Act to be made, as provided in subsection (a) of section ^ 
of this Act, in Canadian ports of United States export grain trans-
shipped through Canada; and pursuant thereto the Secretary is 
authorized to enter into an agreement with the Canadian Government 
for such official weighing. 
Regulations. 
7 u s e 79a. 
Ante, p. 2869. 
Ante, p. 2869. 
Supervision, 
regulations. 
Authority 
delegation. 
Ante, p. 2870. 
Canadian 
Government, 
weighing 
agreement. 
Ante, p. 2869. 
90 STAT. 2876 
PUBLIC LAW 94-582—OCT. 21, 1976 
Ante, p. 2869. 
Certificates, 
evidence. 
Access. 
"(e) The Administrator is further authorized to cause official weigh-
ing or supervision of weighing under standards provided for in sec-
tion 4 of this Act to be made at grain elevators, warehouses, or other 
storage or handling facilities not subject to subsection (a) or (b) of 
this section, upon request of the operator of such grain elevator, ware-
house, or other storage or handling facility and in accordance with 
such regulations as he may prescribe. Such weighing service shall not 
be provided for periods of less than one year; and the fees therefor 
shall be set separately from those fees provided for in subsection (1) of 
this section and shall be reasonable, nondiscriminatory, and equal, as 
nearly as possible, to the cost of providing such services. 
"(f) No official weighing or supervision of weighing shall be pro-
vided for the purposes of this Act at any grain elevator, warehouse, or 
other storage or handling facility until such time as the operator of the 
facility has demonstrated to the satisfaction of the Administrator that 
the operator (1) has and will maintain, in good order, suitable grain-
handling equipment and accurate scales for all w^eighing of grain at 
the facility, in accordance with the regulations of the Administrator; 
(2) will employ only competent persons with a reputation for honesty 
and integrity to operate the scales and to handle grain in connection 
with weighing of the grain, in accordance with this Act; (3) when 
weighing is to be done by employees of the facility, will require 
employees to operate the scales in accordance with the regulations of 
the Administrator and to require that each lot of grain for delivery 
from any railroad car, truck, barge, vessel, or other means of convey-
ance at the facility is entirely removed from such means of conveyance 
and delivered to the scales without avoidable waste or loss, and each lot 
of grain weighed at the elevator for shipment from the facility is 
entirely delivered to the means of conveyance for which intended, and 
without avoidable waste or loss, in accordance with the regulations 
of the Administrator; (4) will provide all assistance needed by the 
Administrator for making any inspection or examination and carrying 
out other functions at the facility pursuant to this Act; and (5) will 
comply with all other requirements of this Act and the regulations 
hereunder. 
"(g) Official certificates setting out the results of official weighing, 
issued and not cancelled under this Act, shall be received by all offi-
cers and all courts of the United States as prima facie evidence of the 
truth of the facts stated therein. 
"(h) No State or local governmental agency or person shall weigh 
or state in any document the weight of grain determined at a location 
where official weighing is required to be performed as provided for 
in this section exce;:)t n accordance with the procedures prescribed 
pursuant to this section. 
"(i) No State or person other than an authorized employee of the 
Service shall perform official Aveighing or supervision of weighing for 
the purposes of this Act except in accordance with the provisions of an 
unsuspended and unrevoked delegation of authority or designation 
by the Administrator as provided in this section. 
"(j) The provisions of this section shall not limit any authority 
vested in the Secretary under the United States Warehouse Act (39 
Stat. 486, as amended; 7 U.S.C. 241 et seq.). 
"(k) The representatives of the Administrator shall be afforded 
access to any elevator, warehouse, or other storage or handling facility 
from which grain is delivered for shipment in interstate or foreign 
commerce or to which grain is delivered from shipment in interstate 
or foreign commerce and all facilities therein for weighing grain. 
PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2877 
Ante, p. 2870. 
Fees. 
" (1) (1) The Administrator shall, under such regulations as he may Fees, 
prescribe, charge and collect reasonable fees to cover the estimated 
costs to the Service incident to the performance of the functions pro-
vided for under this section except as otherwise provided in paragraph 
(2) of this subsection. The fees authorized by this paragraph shall, as 
nearly as practicable, cover the costs of the Service (outside of the 
Washington office) incident to performance of its functions related 
to weighing, including administrative and supervisory costs directly 
related thereto. Such fees shall be deposited into the fund created in 
section (7) (j) of this Act. 
"(2) Each agency to which authority has been delegated under this 
section and each agency or other person which has been designated to 
perform functions related to weighing under this section shall pay to 
the Administrator fees in such amount as the Administrator deter-
mines fair and reasonable and as will cover the costs incurred by the 
Service (outside of the Washington office) relating to direct super-
vision of the agency personnel and direct supervision by Service per-
sonnel of its field office personnel incurred as a result of the functions 
performed by such agencies, except costs incurred under section 7 
(g) (3), 9, 10, and 14 of this Act. The fees shall be payable after the 
services are performed at such times as specified by the Administra-
tor and shall be deposited in the fund created in section 7(j) of this 
Act. Failure to pay the fee within thirty daysi after it is due shall Termination 
result in automatic termination of the delegation or designation, which 
shall be reinstated upon payment, within such period as specified by 
the Administrator, of the fee currently due plus interest and any fur-
ther expenses incurred by the Service because of such termination. 
Ante, p. 2870, 
Post, pp. 2879, 
2884. 
TESTING o r 
EQUIPMENT 
Regulations. 
7 use 79b. 
"SEC. 7 B . (a) The Administrator shall provide for the testing of 
all equipment used in the sampling, grading, inspection, and weighing 
of grain located at all grain elevators, warehouses, or other storage or 
handling facilities at which official inspection or weighing services are 
provided under this Act, to be made on a random and periodic basis, 
but at least annually and under such regulations as the Administrator 
may prescribe, as he deems necessary to assure the accuracy and 
integrity of such equipment. 
"(b) The Administrator is authorized to cause such testing provided Regulations, 
for in subsection (a) to be performed (1) by personnel employed by 
the Service, or (2) by States, political subdivisions thereof, or persons 
under the supervision of the Administrator, under such regulations as 
the Administrator may prescribe. 
"(c) Notwithstanding any other provision of law, no person shall 
use any such equipment not approved by the Administrator.". 
LICENSES AND AUTHORIZATIONS 
SEC. 10. Section 8 of the United States Grain Standards Act, as 
amended (7 U.S.C. 84), is amended to read as follows: 
'LICENSES AND AUTHORIZATIONS 
"SEC. 8. (a) The Administrator is authorized (1) to issue a license 
to any individual upon presentation to him of satisfactory evidence 
that such individual is competent, and is employed by an official agency 
or a State agency delegated authority under section 7 or 7A of this 
Act, to perform all or specified functions involved in original inspec-
Ante, pp. 2870, 
2875. 
-tQA nt
7Q
90 STAT. 2878 
PUBLIC LAW 94-582—OCT. 21, 1976 
Termination, 
regulation. 
Suspension. 
Reinstatement. 
Examinations. 
Personnel. 
5 use 101 et seq. 
tion or reinspection functions involved in ofRcal inspection, or 
in the official weighing or the supervision of weighing of grain 
in the United States; (2) to authorize any competent employee of the 
Service to (A) perform all or specified original inspection, reinspec-
tion, or appeal inspection functions involved in official inspection of 
grain in the United States, or of United States grain in Canadian 
ports, (B) perform official weighing or supervision of weighing of 
grain, (C) supervise the official inspection, official weighing, or super-
vision of weighing of grain in the United States and of United States 
grain in Canadian ports or tlie testing of equipment, and (D) perform 
monitoring activities in foreign ports with respect to grain officially 
inspected and officially weighed under this Act; (3) to contract with 
any person to perform specified sampling and laboratory testing and 
to license competent persons to perform such functions pursuant to 
such contract; and (4) to contract with any competent person for the 
performance of monitoring activities in foreign ports with respect to 
grain officially inspected and officially weighed under this Act. No 
person shall perform any official inspection or weighing function for 
purposes of this Act unless such person holds an unsuspended and 
unrevoked license or authorization from the Administrator under this 
Act. 
"(b) All classes of licenses issued under this Act shall terminate 
triennially on a date or dates to be fixed by regulation of the Admin-
istrator : p7'ovided, That any license shall be suspended automatically 
when the licensee ceases to be employed by an official agency or by a 
State agency under a delegation of authority pursuant to this Act 
or to operate independently under the terms of a contract for the 
conduct of any functions involved in official inspection under this 
Act: Promded 
further, 
That subject to subsection (c) of this section 
such license shall be reinstated if the licensee is employed by an offi-
cial agency or by a State agency under a delegation of authority 
pursuant to this Act or resumes operation under such a contract within 
one year of the suspension date and the license has not expired in the 
interim. 
"(c) The Administrator 
may require such examinations 
and 
reexaminations as he may deem warranted to determine the com-
petence of any applicants for licenses, licensees, or employees of the 
Service, to perform any official inspection or weighing function under 
this Act. 
"(d) Persons employed by an official agency (including persons 
employed by a State agency under a delegation of authority pursuant 
to this Act) and persons performing official inspection functions 
under contract with the Service shall not, unless otherwise employed 
by the Federal Government, be determined to be employees of the 
Federal Government of the ITnited States: Provided, That such per-
sons shall be considered in the performance of any official inspection, 
official weighing, or supervision of weighing function as prescribed 
by this Act or by the rules and regulations of the Administrator, as 
persons acting for or on behalf of the United States, for the purpose 
of determining the application of section 201 of title 18 of the United 
States Code, to such persons and as employees of the Department of 
Agriculture assigned to perform inspection functions for the purposes 
of sections 1114 and 111 of title 18 of the United States Code. 
"(e) The Administrator may hire (without regard to the pro-
visions of title 5 of the United States Code, governing appointments 
in the competitive service) as official inspection personnel anv individ-
ual who is licensed (on the date of enactment of the United States 
PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2879 
7 use 71. 
Personnel 
rotation. 
Standards. 
Grain Standards Act of 1976)) to perform functions of official inspec-
tion under the United States Grain Standards Act and as personnel 
to perform supervisory weighing or official weighing functions any 
individual who, on the date of enactment of the United States Grain 
Standards Act of 1976, was performing simil&r functions: Provided, 
That the Administrator determines that such individual is of good 
moral character and is technically and professionally qualified for the 
duties to which the individual will be assigned. 
"(f) The Administrator shall provide for the periodic rotation of 
supervisory personnel and official inspection personnel employed by 
the Service as he deems necessary to preserve the integrity of the 
official inspection system provided by this xVct. 
"(g) The Administrator shall develop and effectuate standards for 
the recruiting, training, and supervising of official inspection per-
sonnel and appropriate work production standards for such personnel, 
which shall be applicable to the Service, all State agencies under dele-
gation of authority pursuant to this Act, and all official agencies and 
all persons licensed or authorized to perform functions under this 
Act: Provided, That persons licensed or authorized on the date of Exemption 
enactment of the United States Grain Standards Act of 1976 to per-
form any official function under this Act, shall be exempted from the 
uniform recruiting and training provisions of this subsection and 
regulations or standards issued pursuant thereto if the Administrator 
determines that such persons are technically and professionally quali-
fied for the duties to which they will be assigned and they agree to 
complete whatever additional training the Administrator deems 
necessary.". 
REFUSAL o r RENEWAL, OR SUSPENSION OR REVOCATION OF LICENSES 
SEC. 11. Section 9 of the United States Grain Standards Act, as 
amended (7 U.S.C. 85), is amended as follows: 
(a) by striking out the word "Secretary" wherever it appears 
and inserting in lieu thereof the word "Administrator"; 
(b) by inserting after the word "inspected" wherever it 
appears the words "or weighed or supervised the weighing of"; 
and 
(c) by adding at the end thereof a new sentence as follows: 
"The Administrator may summarily revoke any license whenever 
the licensee has been convicted of any offense prohibited by sec-
tion 13 of this Act or convicted of any offense proscribed by 
title 18 of the United States Code, with respect to performance 
of functions under this Act.". 
Post, p. 2883. 
18 u s e 1 et seq. 
REFUSAL OF INSPECTION AND WEIGHING SERVICES AND CIVIL PENALTIES 
SEC. 12. Section 10 of the United States Grain Standards Act, as 
amended (7 U.S.C. 86), is amended as follows: 
(a) The title is changed to read "REFUSAL OF INSPECTION 
AND WEIGHING SERVICES AND CIVIL PENALTIES". 
(b) Subsection (a) is amended to read as follows: 
"(a) The Administrator may (for such period, or indefinitely, as he 
deems necessary to effectuate the purposes of this Act) refuse to pro-
vide official inspection or the services related to weighing otherwise 
available under this Act with respect to any grain offered for such 
services, or owned, wholly or in part, by any person if he determines 
(1) that the individual (or in case such person is a partnership, any 
90 STAT. 2880 
PUBLIC LAW 94-582—OCT. 21, 1976 
Post, p. 2883. 
Penalties. 
Post, p. 2884. 
Ante, p. 2867. 
Hearing. 
Fund. 
7 use 87f. 
general partner; or in case such person is a corporation, any oiRcer, 
director, or holder or owner of more than 10 per centum of the voting 
stock; or in case such person is an unincorporated association or other 
business entity, any officer or director thereof; or in case of any such 
business entit}^, any individual who is otherwise responsibly connected 
with the business) has knowingly committed any violation of section 
13 of this Act or has been convicted of any violation of other Federal 
law with respect to the handling, weighing, or official inspection of 
grain, or that official inspection or the services related to weighing have 
been refused for any of the above-specified causes (for a period which 
]ias not expired) to such person, or any other person conducting a 
business with which the former was, at the time such cause existed, 
or is responsibly connected; and (2) that providing such service with 
respect to such grain would be inimical to the integrity of the service.". 
(c) Subsection (c) is amended and new subsections (d) and (e) 
are added, to read, respectively, as follows: 
"(c) In addition to, or in lieu of, penalties provided under section 
14 of this Act, or in addition to, or in lieu of, refusal of official 
inspection or services related to weighing in accordance with this 
section, the Administrator may assess against any person who has 
knowingly committed any violation of section 13 of this Act or has 
been convicted of any violation of other Federal law with respect 
to the handling, weighing, or official inspection of grain a civil pen-
alty not to exceed $75,000 for each such violation as the Administrator 
determines is appropriate to effectuate the objectives stated in section 
2 of this Act. 
"(d) Before official inspection or services related to weighing, is 
refused to any person or a civil penalty is assessed against any person 
under this section, such person shall be afforded opportunity for a 
hearing in accordance with sections 554, 556, and 557 of title 5 of the 
United States Code: Provided, That the Administrator may, without 
first affording the person a hearing, refuse official inspection or serv-
ices related to weighing temporarily pending final determination 
whenever the Administrator has reason to believe there is cause for 
refusal of inspection or services related to weighing and considers 
such action to be in the best interest of the official inspection system 
under this Act. The Administrator shall afford such person an oppor-
tunity for a hearing within seven days after temporarily refusing 
official inspection or services related to weighing; and such hearing 
and ancillary procedures related thereto shall be conducted in an 
expedited manner. 
"(e) Moneys received in payment of such civil penalties shall be 
deposited in the general fund of the United States Treasury. Upon 
any failure to pay the penalties assessed under this section, the Admin-
istrator may request the Attorney General of the United States to 
institute a civil action to collect the penalties in the appropriate court 
identified in subsection (h) of section 17 of this Act for the jurisdic-
tion in which the respondent is found or resides or transacts business, 
and such court shall have jurisdiction to hear and decide any such 
action.". 
PROHIBITION ON CERTAIN CONFLICTS OF INTEREST 
SEC. 13. Section 11 of the United States Grain Standards Act, as 
amended (7 U.S.C. 87), is amended— 
(a) by striking out the word "Secretary" wherever it appears 
and inserting in lieu thereof the word "Administrator": 
PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2881 
Conflict of 
interest. 
Substantial 
stock holder. 
(b) by Striking out the word "inspection" immediately fol-
lowing the phrase "to perform any official"; and 
(c) by designating the provisions thereof as subsection (a) and 
adding new subsections (b) and (c) as follows: 
"(b) (1^ No official agency or a State agency delegated authority 
under this Act, or any member, director, officer, or employee thereof, 
and no business or governmental entity related to any such agency, 
shall be employed in or otherwise engaged in, or directly or indirectly 
have any stock or other financial interest in, any business involving 
the commercial transportation, storage, merchandising, or other com-
mercial handling of grain, or the use of official inspection service 
(except that in the case of a producer such use shall not be prohibited 
for grain in which he does not have an interest); and no business or 
governmental entity conducting any such business, or any member, 
director, officer, or employee thereof, and no other business or govern-
mental entity related to anv such entity, shall operate or be employed 
by or directly or indirectly have any stock or other financial interest in, 
any official agency or a State agency delegated inspection authority. 
Further, no substantial stockholder in any incorporated official agency 
shall be employed in or otherwise engaged in, or be a substantial stock-
holder in any corporation conducting any such business, or directly 
or indirectly have any other kind of financial interest in any such 
business; and no substantial stockholder in any corporation conducting 
such a business shall operate or be employed by or be a substantial 
stockholder in, or directly or indirectly have any other kind of 
financial interest in, any official agency. 
"(2) A substantial stockholder of a corporation shall be any person 
holding 2 per centum or more, or one hundred shares or more, of 
the voting stock of the corporation, whichever is the lesser interest. 
Any entity shall be considered to be related to another entity if it 
owns or controls, or is owned or controlled by, such other entity, or 
both entities are owned or controlled by another entity. 
"(3) Each State agency delegated official weighing authority under 
section 7A and each State or local agency or other person designated ^^t^' P- 2875 
by the Administrator under such section to perform supervision of 
weighing shall be subject to the provisions of subsection (b) of this 
section. The term 'use of official inspection service' shall be deemed to 
refer to the use of the services provided under such a delegation or 
designation. 
" (4) If a State or local governmental agency is delegated authority 
to perform official inspection or official weighing, or a State or local 
governmental agency is designated as an official agency, the Adminis-
trator shall specify the officials and other personnel thereof to which 
the conflict of interest provisions of this subsection (b) apply. 
"(5) Notwithstanding the foregoing provisions of this subsection, 
the Administrator may delegate authority to a State agency or desig-
nate a governmental agency, board of trade, chamber of commerce, or 
grain exchange to perform official inspection or perform supervision 
of weighing except that for purposes of supervision of weighing only, 
he may also designate any other person, if he determines that any 
conflict of interest which may exist between the agency or person or 
any member, officer, employee, or stockholder thereof and any business 
involving the transportation, storage, merchandising, or other han-
dling of grain or use of official inspection or weighing service is not 
such as to jeopardize the integrity or the effective and objective opera-
tion of the functions performed by such agency. Whenever the Admin- Report to 
cong 
committees. 
"Use of official 
inspection 
Authority 
delegation. 
90 STAT. 2882 
PUBLIC LAW 94-582—OCT. 21, 1976 
istrator makes such a determination and makes a delegation or 
designation to an agency that has a conflict of interest otherwise pro-
hibited by this subsection, the Administrator shall, within thirty days 
after making such a determination, submit a report to the Committee 
on Agriculture of the House of Representatives and the Committee on 
Agriculture and Forestry of the Senate, detailing the factual bases for 
such determination. 
"(c) The provisions of this section shall not prevent an official 
agency from engaging in the business of weighing grain.". 
Regulation. 
Maintenance. 
Access. 
Audits. 
RECORDS 
SEC. 14. Section 12 of the United States Grain Standards Act, as 
amended (7 U.S.C. 87a), is amended by amending subsections (a), (b), 
and (c) and adding a new subsection (d) to read, respectively, as 
follows: 
"(a) Every official agency and every person licensed to perform any 
official inspection or official weighing or supervision of weighing func-
tion under this Act shall maintain such samples of officially inspected 
grain and such other records as the Administrator may by regulation 
prescribe for the purpose of administration and enforcement of this 
Act. 
"(b) Every official agency and every person licensed to perform any 
official inspection or official weighing or supervision of weighing func-
tion under this Act required to maintain records under this section 
shall keep such records for a period of five years after the inspection, 
weighing, or transaction, which is the subject of the record, occurred: 
Provided^ That grain samples shall be required to be maintained only 
for such period not in excess of ninety days as the Administrator, after 
consultation with the grain trade and taking into account the needs 
and circumstances of local markets, shall prescribe; and in specific 
cases other records may be required by the Administrator to be main-
tained for not more than three years in addition to the five-year period 
whenever in his judgment the retention of such records for the longer 
period is necessary for the effective administration and enforcement 
of this Act. 
"(c) Every official agency and every person licensed to perform 
any official inspection or official weighing or supervision of weighing 
function under this Act required to maintain records under this 
section shall permit any authorized representative of the Secretary or 
Administrator or the Comptroller General of the United States to 
have access to, and to copy, such records at all reasonable times. The 
Administrator shall, from time to time, perform audits of official 
agencies and State agencies delegate authority of this Act in such 
manner and at such periodic intervals as he deems appropriate. 
" (d) Every State, political subdivision thereof, or person who is the 
owner or operator of a commercial grain elevator, warehouse, or 
other storage or handling facility or is engaged in the merchandising 
of grain other than as a producer, and who, at any time, has obtained 
or obtains official inspection or weighing services shall, within the 
five-year period thereafter, maintain complete and accurate records 
of purchases, sales, transportation, storage, weighing, handling, treat-
ing, cleaning, drying, blending, and other processing, and official 
inspection and official weighing of grain, and permit any authorized 
representative of the Secretary or the Administrator, at all reasonable 
times, to have access to, and to copy, such records and to have access 
to any grain elevator, warehouse, or other storage or handling facility 
used by such persons for handling of grain.". 
PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2883 
PROHIBITED ACTS 
\ 
SEC. 15. Section 13 of the United States Grain Standards Act, as 
amended (7 U.S.C. 87b), is amended as follows: 
(a) Subsection (a) is amended as .follows: 
(1) by striking out in paragraphs (1) and (2) thereof the 
word "inspection" wherever it appears and by striking out the 
word "Secretary" in paragraph (2) and inserting in lieu thereof 
the word "Administrator"; 
(2) by amending paragraph (3) thereof to read as follows: 
"(3) knowingly cause or attempt (whether successfully or 
not) to cause the issuance of a false or incorrect official certifi-
cate or other official form by any means, including but not limited 
to deceptive loading, handling, weighing, or sampling of grain, 
' 
or submitting grain for official inspection or official weighing 
or supervision of weighing knowing that it has been deceptively 
loaded, handled, weighed, or sampled, without disclosing such 
knowledge to the official inspection personnel before official 
sampling or official weighing or supervision of weighing;"; 
(3) by amending paragraph (5) thereof to read as follows: 
"(5) knowingly use any official grade designation or official 
mark on any container of grain by means of a tag, label, or 
otherwise, unless the grain in such container was 
officially 
inspected on the basis of an official sample taken while the grain 
was being loaded into or was in such container or officially 
weighed, respectively, and the grain was found to qualify for 
such desi^ation or mark;"; 
(4) by inserting in paragraphs (7) and (8) immediately after 
t; » v,,-: 
the word "personnel" the words "or personnel of agencies dele-
gated authority or of agencies or other persons designated under 
this Act"; 
(5) by inserting in paragraphs (9) and (10) immediately after 
the words "official inspection" the words "or official weighing or 
supervision of weighing" and by inserting in paragraph (11) 
"7(f)(2),7A,7B(c),"after"soction5,6";and 
(6) by striking the word "or" at the end of paragraph (10) 
striking the period at the end of subsection (a) and inserting a 
semicolon in lieu thereof, and adding new paragraphs (12) and 
(13) as follows: 
"(12) knowingly engage in falsely stating or falsifying the 
weight of any grain shipped in interstate or foreign commerce 
by any means, including, but not limited to, the use of inaccurate, 
faulty, or defective testing equipment; or 
"(13) knowingly prevent or impede any buyer or seller of 
grain or other person having a financial interest in the grain, or 
the authorized agent of any such person, from observing the 
loading of grain inspected under this Act and the weiring, 
sampling, and inspection of such grain under conditions pre-
scribed by the Administrator.". 
(b) Subsection (b) is amended by inserting in paragraph (2) the 
words "or weighing" after the word inspection". 
PROTECTION OF SERVICE PERSONNEL 
SEC. 16. Section 1114 of title 18 of the United States Code, as 
amended, is hereby amended by (a) striking the phrase "any employee 
of the Bureau of Animal Industry of the Department of Agriculture," 
90 STAT. 2884 
PUBLIC LAW 94-582—OCT. 21, 1976 
and (b) by inserting immediately after the phrase "or of the Depart-
ment of Labor" the words "or of the Department of Agriculture". 
PENALTIES 
SEC. 17. Section 14 of the United States Grain Standards Act, as 
amended (7 U.S.C. 87c), is amended to read as follows: 
"CRIMINAL PENALTIES 
"SEC. 14. (a) Any person who commits an oflfense prohibited by 
Ante, p. 288S. 
section 13 (except an offense prohibited by paragraphs (a)(7), 
(a) (8), and (b) (4) in which case he shall be subject to the general 
18 use 1 et seq. penal Statutes in title 18 of the United States Code relating to crimes 
and offenses against the United States) shall be guilty of a misde-
meanor and shall, on conviction thereof, be subject to imprisonment 
for not more than twelve months, or a fine of not more than $10,000, or 
both such imprisonment and fine; but, for each subsequent offense sub-
ject to this subsection, such person shall be guilty of a felony and 
shall, on conviction thereof, be subject to imprisonment for not more 
than five years, or a fine of not more than $20,000, or both such 
imprisonment and fine. 
"(b) Nothing in this Act shall be construed as requiring the Admin-
istrator to report minor violations of this Act for criminal prosecu-
tion whenever he believes that the public interest will be adequately 
served by a suitable written notice or warning, or to report any viola-
tion of this Act for prosecution when he believes that institution of 
Anu, p. 2879. 
a proceeding under section 10 of this Act will obtain compliance with 
this Act and he institutes such a proceeding. 
"(c) Any officer or employee of the Department of Agriculture 
assigned to perform weighing functions under this Act shall be 
considered as an employee of the Department of Agriculture assigned 
to perform inspection functions for the purposes of sections 1114 and 
HI of title 18 of the United States Code." 
GENERAL AUTHORITIES 
SEC. 18. Section 16 of the United States Grain Standards Act, as 
amended (7 U.S.C. 87e), is amended to read as follows: 
(( 
Investigations, 
hearings and 
reports. 
Rules, 
regulations and 
instructions. 
GENERAL AUTHORITIES 
"SEC. 16. (a) The Administrator is authorized to conduct such inves-
tigations; hold such hearings; require such reports from any official 
agency, any State agency delegated authority under this Act, licensee, 
or other person; require by regulation as a condition for official inspec-
tion, among other things (1) that there be installed specified sampling 
and monitoring equipment in grain elevators, (2) that approval of 
the Administrator be obtained as to the condition of vessels and 
other carriers or receptacles for transporting or storing of grain, and 
(3) that persons having a financial interest in the grain which is to 
be inspected (or their agents) shall be afforded an opportunity to 
observe the weighing, loading, and official inspection thereof, under 
conditions prescribed by the Administrator. The Administrator is 
further authorized to prescribe such other rules, regulations, and 
instructions as he deems necessary to effectuate the purposes or provi-
sions of this Act. Whether any certificate, other form, representation, 
designation, or other description is false, incorrect, or misleading 
PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2885 
within the meaning of this Act shall be determined by tests made in 
accordance with such procedures as the Administrator may adopt to 
effectuate the objectives of this Act, if the relevant facts are deter-
minable by such tests. Proceedings under section 9 of this Act for 
refusal to renew, or for suspension or revocation of, a license shall not, 
unless requested by the respondent, be subject to the administrative 
procedure provisions in sections 554, 556, and 557 of title 5 of the 
United States Code. 
"(b) The Administrator is authorized to investigate reports or com-
plaints of discrepancies and abuses in the official inspection and weigh-
ing of grain under this Act, The Administrator shall prescribe by 
regulation procedures for (1) promptly investigating (A) complaints 
of foreign grain purchasers regarding the official inspection or official 
weighing of grain shipped from the United States, (B) the cancella-
tion of contracts for the export sale of grain required to be inspected 
or weighed under this Act, and (C) any complaint regarding the 
operation or administration of this Act or any official transaction 
with which this Act is concerned; and (2) taking appropriate action 
on the basis of the findings of any investigation of such complaints. 
The Administrator shall report to the Committee on Agriculture 
of the House of Representatives and the Committee on Agriculture 
and Forestry of the Senate at the end of every three-month period 
with respect to investigative action taken on complaints, during the 
immediately preceding three-month period. 
"(c) The Administrator is authorized to cause official inspection 
personnel to monitor in foreign nations which are substantial import-
ers of grain from the United StateSj grain imported from the United 
States upon its entry into the foreign nation, to determine whether 
such gram is of a comparable kind, class, quality, and condition after 
considering the handling methods and conveyance utilized at the time 
of loading, and the same quantity that it was certified to be upon offi-
cial inspection and official weighing in the United States. 
"(d) The Office of Investigation of the Department of Agriculture 
(or such other organization or agency within the Department of Agri-
culture which may be delegated the authority, in lieu thereof, to con-
duct investigations on behalf of the Department of Agriculture) shall 
conduct such investigations regarding the operation or administration 
of this Act or any official transaction with which this Act is concerned, 
as the Director thereof deems necessary to assure the integrity of offi-
cial inspection and weighing under this Act. 
"(e) The Administrator is authorized to conduct, in cooperation 
with other agencies within the Department of Agriculture, a continu-
ing research program for the purpose of developing methods to 
improve accuracy and uniformity in grading grain. 
"(f) To assure the normal movement of grain at all inspection 
points in a timely manner consistent with the policy expressed in sec-
tion 2 of this Act, the Administrator shall, notwithstanding any other 
provision of law, provide adequate personnel to meet the additional 
inspection and weighing requirements of this Act.". 
Ante, p. 2879. 
Investigation. 
Procedures, 
regulation. 
Report to 
congressional 
committees. 
Investigations. 
Research 
program. 
Ante, p. 2867. 
ENFORCEMENT PROVISIONS 
SEC. 19. Section 17 of the United States Grain Standards Act, as 
jimended (7 U.S.C. 87f), is amended as follows: 
(a) by striking out the word "Secretary" wherever it appears 
and inserting in lieu thereof the word "Administrator"; 
90 STAT. 2886 
PUBLIC LAW 94-582—OCT. 21, 1976 
(b) by inserting in subsection (a) the words "by the Admin-
istrator" immediately following the words "under investigation"; 
(c) by inserting in subsection (e) the words "subsection (a) 
" 
of" immediately before the words "section 14"; and 
(d) by striking out subsection (g). 
RELATION TO STATE AND LOCAL LAWS; SEPARABILITY OF PROVISIONS 
SEC. 20. Section 18 of the United States Grain Standards Act, as 
amended (7 U.S.C. 87g), is amended by striking out from the first 
sentence of subsection (a) the words "function under this Act by 
official inspection personnel" and inserting in lieu thereof the follow-
ing: "or weighing function under this Act by official inspection 
personnel". 
APPROPRIATIONS 
SEC. 21. Section 19 of the United States Grain Standards Act, as 
amended (7 U.S.C. 87h), is amended to read as follows: 
"APPROPRIATIONS 
"SEC. 21. There are hereby authorized to be appropriated such sums 
as are necessary for research and development as provided in section 16 
Ante, p. 2884. 
of this Act; monitoring in foreign ports grain officially inspected and 
officially weighed under this Act; development and issuance of rules, 
regulations, and instructions; improvement of official standards for 
grain, improvement of inspection and weighing procedures and equip-
Ante, p. 2869. 
ment, and other activities authorized by section 4 of this Act; those 
Federal administrative and supervisory costs incurred within the 
Service's Washington office or not directly related to the official 
inspection or the provision of weighing services for grain; the purchase 
or lease of any buildings, other facilities, or equipment necessary to 
carry out the provisions of this Act; and any other expenses necessary 
to carry out the provisions of this Act to the extent that financing is not 
obtained from the fees and sales of samples as provided for in sections 
Ante, pp. 2870, 
7,7A, and 17A of this Act.". 
2875, Infra. 
REGISTRATION AND REPORTING 
REQUIREMENTS 
SEC. 22. The United States Grain Standards Act, as amended, is 
amended by adding new sections 17A and 17B as follows: 
"REGISTRATION REQUIREMENTS 
Regulation. 
"SEC. 17A. (a) The Administrator shall provide, by regulation, for 
7 use 87f-l. 
^i^Q registration of all persons engaged in the business of buying grain 
for sale in foreign commerce, and in the business of handling, weigh-
ing, or transporting of grain for sale in foreign commerce. This section 
shall not apply to— 
"(1) any person who only incidentally or occasionally buys for 
sale, or handles, weighs, or transports grain for sale and is not 
engaged in the regular business of buying grain for sale, or han-
dling, weighing, or transporting grain for sale; 
"(2) any producer of grain who only incidentally or occa-
sionally sells or transports grain which he has purchased; 
" (3) any person who transports grain for hire and does not own 
a financial interest in such grain; or 
PUBLIC LAW 94-582—OCT. 21, 1976 
90 STAT. 2887 
"(4) any person who buys grain for feeding or processing and 
not for the purpose of reselling and only incidentally or occa-
sionally sells such grain as grain. 
"(b) (1) All persons registered under this Act shall submit the fol-
lowing information to the Administrator: 
" (A) the name and principal address of the business, 
"(B) the names of all directors of such business, 
"(C) the names of the principal officers of such business, 
"(D) the names of all persons in a control relationship with 
respect to such business, 
"(E) a list of locations where the business conducts substantial 
operations, and 
"(F) such other information as the Administrator deems 
necessary to carry out the purposes of this Act. 
Persons required to register under this section shall also submit to the 
Administrator the information specified in clauses (A) through (F) 
of this paragraph with respect to any business engaged in the business 
of buying grain for sale in interstate commerce, and in the business of 
handling, weighing, or transporting of grain for sale in interstate 
commerce, if, with respect to such business, the person otherwise 
required to register under this section is in a control relationship. 
" (2) For the purposes of this section, a person shall be deemed to be 
in a 'control relationship' with respect to a business required to 
register under subsection (a) and with respect to applicable interstate 
businesses if— 
"(A) such person has an ownership interest of 10 per centum 
or more in such business, or 
"(B) a business or group of business entities, with respect to 
which such person is in a control relationship, has an ownership 
interest of 10 per centum or more in such business. 
"(3) For purposes of clauses (A) and (B) of paragraph (2) of this 
subsection, a person shall be considered to own the ownership interest 
which is owned by his or her spouse, minor children, and relatives 
living in the same household. 
"(c) The Administrator shall issue a certificate of registration to 
persons who comply with the provisions of this section. The certificate 
of registration issued in accordance with this section shall be renewed 
annually. If there has been any change in the information required 
under subsection (b), the person holding such certificate shall, within 
thirty days of the discovery of such change, notify the Administrator 
of such change. No person shall engage in the business of buying grain 
for sale in forei^ commerce, and in the business of handling, weigh-
ing, or transporting of grain in foreign commerce unless he has regis-
tered with the Administrator as required by this Act and has an 
unsuspended and unrevoked certificate of registration. 
"(d) The Administrator may suspend or revoke any certificate of 
registration issued under this section whenever, after the person hold-
ing such certificate has been afforded an opportunity for a hearing in 
accordance with sections 554, 556, and 557 of title 5 of the United 
States Code, the Administrator shall determine that such person has 
violated any provision of this Act or of the regulations promulgated 
thereunder, or has been convicted of any violation involving the han-
dling, weighing, or inspection of grain under title 18 of the United 
States Code. 
"(e) The Administrator shall charge and collect fees from any 
person registered under this section. The amount of such fees shall be 
determined on the basis of the costs of the Administrator in adminis-
"Control 
relationship.' 
Registration 
certificate. 
Suspension or 
revocation. 
18 u s e 1 et seq. 
Fees. 
90 STAT. 2888 
PUBLIC LAW 94-582—OCT. 21, 1976 
Deposit. 
7 use 79. 
Reports to 
congressional 
committees. 
7 u s e 87f-2. 
Ante, p. 2867. 
Notification of 
congressional 
committees. 
Complaint 
summary, 
submittal to 
congressional 
committees. 
tering the registration required by this section. Such fees shall be 
deposited in, and used as part of, the fund described in section 7(j) of 
this Act. 
"REPORTING REQUIREMENTS 
"SEC. 17B. (a) The Administrator shall submit a report to the com-
mittee on Agriculture of the House of Representatives and the Com-
mittee on Agriculture and Forestry of the Senate one year after the 
effective date of the United States Grain Standards Act of 1976 setting 
forth the actions taken by him in implementing the provisions of that 
Act; and, on December 1 of each year thereafter, the Administrator 
shall report to such committees regarding the effectiveness of the offi-
cial inspection system under this Act for the prior fiscal year, with 
recommendations for any legislative changes necessary to accomplish 
the objectives stated in section 2 of this Act. 
"(b) The Administrator shall notify the Committee on Agriculture 
of the House of Representatives and the Committee on Agriculture 
and Forestry of the Senate (1) of any complaint regarding faulty 
grain delivery made to the Department of Agriculture by a foreign 
purchaser of United States grain, within thirty days after a determi-
nation by the Administrator that there is reasonable cause to believe 
that the grain delivery was in fact faulty, and (2) within thirty days 
after receipt by the Administrator or the Secretary of the cancellation 
of any contract for the export of more than one hundred thousand 
mei^ric tons of grain. 
"(c) On December 1 of each year, the Administrator shall submit 
to the Committee on Agriculture of the House of Representatives and 
the Committee on Agriculture and Forestry of the Senate a summary 
of all other complaints received by the Department of Agriculture 
during the prior fiscal year from foreign purchasers and prospective 
purchasers of United States grain and other foreign purchasers inter-
ested in the trade of grain, and the resolution thereof: Promded, That 
the summary shall not include a complaint unless reasonable cause 
exists to believe that the complaint is valid, as determined by the 
Administrator.". 
7 use 87e-l. 
7 use 71. 
Investigation and 
study. 
7 u s e 76 note. 
PURCHASE OR LEASE OF INSPECTION EQUIPMENT 
SEC. 23. Notwithstanding the provisions of section 3709 of the 
Revised Statutes (41 U.S.C. 5) and section 302 of the Federal Prop-
erty and Administrative Services Act of 1949 (40 U.S.C. 490), the 
Administrator of the Federal Grain Inspection Service is authorized 
to negotiate for and purchase or lease, from any person licensed or 
designated (on the date of enactment of this Act) to perform official 
inspection functions under the United States Grain Standards Act, 
at fair market value, any facilities or equipment which the Admin-
istrator determines to be necessary for the conduct of official 
inspection. 
STUDIES OF GRAIN STANDARDS 
SEC. 24, (a) In order to assure that producers, handlers, and trans-
porters of grain are encourag^ed and rewarded for the production, 
maintenance, and delivery of high quality grain and grain of the type 
needed to meet the end-use requirements of domestic and foreign 
buyers, the Administrator of the Federal Grain Inspection Service 
shall conduct an investigation and make a study regarding the ade-
quacy of the current grain standards established under the United 
States Grain Standards Act. 
PUBLIC LAW 94^582—OCT. 21, 1976 
90 STAT. 2889 
(b) To determine the items of concern to buyers, both foreign and 
domestic, and how sellers in the United States might best satisfy 
those needs, the Administrator may seek the advice of and may 
employ the services of representatives of the grain industry, land-
grant colleges, and other members of the public (without regard to 
the provisions of title 5 of the United States Code, governing appoint- 5 USC 101 et seq. 
ments in the competitive service). 
(c) The study shall address specifically, but is not limited thereto, 
the tasks of determining (A) if standards msLj be developed that 
would reduce grading errors and remove, where possible, subjective 
human judgment from grading by increased utilization of mechanical, 
electrical, and chemical means of grading, (B) whether grain should 
be subclassed according to color or other factor not affecting the qual-
ity of the grain, (C) whether the protein factor should be included in 
the standards, and (D) whether broken grain should be grouped 
together with foreign material. 
(d) On the basis of the results of such study, the Administrator, in Report to 
accordance with section 4 of the United States Grain Standards Act, ^^°^'^^**2869 
shall make such changes in the grain standards as he determines nee- 
"'^' ^' 
essary and appropriate, and, not later than two years after the date 
of enactment of this Act, submit a report to the Congress setting forth 
the findings of such study and action taken by him as a result of the 
study. 
TEMPORARY EXERCISE OF POWERS, DUTIES, AND AUTHORIZATIONS 
SEC. 25, The powers, duties, and authorizations established by this ^ U
S
C 75a note. 
Act for the Administrator of the Federal Grain Inspection Service 
shall in all instances be exercised by the Secretary of Agriculture of 
the United States during the period between the effective date of this 
Act and the appointment of the Administrator. 
CONFORMING AMENDMENT 
SEC. 26. Section 5316 of title 5 of the United States Code, as 
amended, is amended by adding at the end thereof a new paragraph 
to read as follows: 
"(137) Administrator, Federal Grain Inspection Service, 
Department of Agriculture.". 
EFFECTIVE DATE 
SEC. 27. This Act shall become effective thirty days after enactment 7 USC 74 note, 
hereof; and thereafter no State agency shall provide official inspec-
tion at an export port location or official weighing at an export eleva-
tor at an export port location without a delegation of authority and 
no agency or person shall provide official inspection service or super-
vision of weighing in any other area without a designation under the 
United States Grain Standards Act, as amended by this Act, except 
that any agency or person then providing such service in any area, 
who pays fees when due, in the same manner as prescribed in section 
7 or 7A of the United States Grain Standards Act, as amended by 
this Act, may continue to operate in that area without a delegation ^
r
a
^
«
» PP- 2870, 
or designation but shall be subject to all provisions of the United States 2875. 
Grain Standards Act and regulations thereunder in effect immediately 
prior to the effective date of this Act, until whichever of the following 
events occurs first: 
90 STAT. 2890 
PUBLIC LAW 94-582—OCT. 21, 1976 
(1) a delegation or designation of such agency or person to 
perform such services is granted or denied by the Administrator 
of the Federal Grain Inspection Service pursuant to the United 
States Grain Standards Act, as amended by this Act; or 
(2) such agency or person, or two or more members or employ-
ees thereof, have been or are convicted of a violation of any 
provision of the United States Grain Standards Act in effect 
' 
immediately prior to the effective date of this Act; or convicted 
of any offense proscribed by other Federal law involving the 
handling, weighing, or official inspection of grain; 
(3) with respect to export port locations and export elevators 
located at export port locations, the expiration of a period deter-
mined by the Administrator of not more than eighteen months 
following the effective date hereof; or 
(4) with respect to any other area, the expiration of a period 
as determined by the Administrator of not more than two years 
following the effective date hereof: 
Provided, That the Administrator is authorized and directed to 
cause official inspection and official weighing of grain pursuant to 
the provisions of the United States Grain Standards Act, as amended 
by this Act, to be performed by authorized employees of the United 
States Department of Agriculture or the Service, to begin at any 
time immediately thereafter the date of enactment of this Act, at 
those export port locations and export elevators located at export 
port locations at which the Administrator determines that such 
performance by such authorized employees is necessary to effectuate 
the provisions of section 2 of the United States Grain Standards Act, 
Ante, p. 2867. 
as amended. 
Approved October 21, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-966 (Comm. on Agriculture) and No. 94-1722 (Comm. of 
Conference). 
SENATE REPORT No. 94-747 accompanying S. 3055 (Comm. on Agriculture and 
Forestry). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
Apr. 2, considered and passed House. 
Apr. 14, S. 3055 considered in Senate. 
Apr. 26, considered and passed Senate, amended, in lieu of S. 3055. 
Oct. 1, House and Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 12, No. 43: 
Oct. 22, Presidential statement.