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CHAPTER COMMODITY EXCHANGE AUTHOR (INCLUDING COMMODITY EXCHANGE COMM

SION), DEPARTMENT OF AGRICULTURE

Part 0 1 15 16 17 18 19 20 21

Rules of practice.
General regulations under the Commodity Exchange Act.
Reports General provisions.
Reports by clearing members.
Reports by futures commission merchants and foreign brokers.
Reports by traders.
Reports by merchants, processors, and dealers.
Reports by members of contract markets.
Special calls for information from futures commission merchants, for

brokers, and members of contract markets.
Interpretations and statements of general policy under the Commodity

change Act.
Orders of the Secretary of Agriculture.
Organization, functions, and procedures of the Commodity Excha

Authority.
Orders of the Commodity Exchange Commission.

50

100 140

150

NOTE: Other regulations issued by the Department of Agriculture appear in Title 7, Tit Title 12, and Title 36, Chapter II.

Sec. PART 0RULES OF PRACTICE

0.14 Fees of witnesses. Subpart A Rules Acceptable to Proceedings 0.15 Prehearing conferences. Before the Secretary of Agriculture

0.16 Referee's report. Seo.

0.17 Shortened procedure. 0.0 Scope and applicability of rules of 0.18 Transmittal of record. practice.

0.19 Argument before Secretary. 0.1 Meaning of words.

0.20 Preparation and issuance of order. 0.2 Definitions.

0.21 Applications for reopening hearii

for rehearings or rearguments of I RULES APPLICABLE TO DISCIPLINARY

ceedings; or for reconsideration PROCEEDINGS

orders. 0.8 Institution of proceedings.

0.22 Filing; service; extensions of the 0.4 Stipulations and consent orders.

additional time for filing; and cc Complaints.

putation of time. 0.6 Docket number.

RULES OF PRACTICE APPLICABLE TO RULEMAK Referees.

PROCEEDINGS 0.8 Intervention. 0.9 The answer.

0.23 Requests for promulgation, amei 0.10 Motions and requests.

ment, or rescission of regulations. 0.11 Oral hearing before referee.

0.24 Status of persons requesting prom 0.12 Depositions.

gation, amendment, or rescission 0.18 Subpenas.

regulations.

0.5

0.7

Sec.
0.26 Notice of hearing.
0.26 conduct of hearing.
0.27 Preparation and issuance of order.

RULES APPLICABLE TO ALL PROCEEDINGS 0.28 Hearings before the Secretary. Subpart B-Rules Applicable to Proceedings

Before the Commodity Exchange Commission 0.50 Scope and applicability of rules of

practice. 0.51 Meaning of words. 0.52 Definitions. RULES APPLICABLE TO DISCIPLINARY

PROCEEDINGS 0.53 Institution of proceedings. 0.54 Stipulations and consent orders. 0.55 Complaints. 0.56 Docket number. 0.57 Referees. 0.58 Intervention. 0.59 The answer. 0.60 Motions and requests. 0.61 Oral hearing before referee. 0.62 Depositions. 0.63 Subpenas. 0.64 Fees of witnesses. 0.65 Prehearing conferences. 0.66 Referee's report. 0.67 Shortened procedure. 0.68 Transmittal of record. 0.69 Argument before Commission. 0.70 Preparation and issuance of order. 0.71 Applications for reopening hearings,

for rehearings or rearguments of proceedings, or for reconsideration of

orders. 0.72 Filing; service; extensions of time;

additional time for filing; and com

putation of time.
RULES OF PRACTICE APPLICABLE TO RULE-

MAKING PROCEEDINGS 0.73 Requests for promulgation, amend

ment, or rescission of regulations. 0.74 Status of persons requesting promul

gation, amendment, or rescission of

regulations. 0.75 Notice of hearing. 0.76 Conduct of hearing. 0.77 Preparation and issuance of order.

RULES APPLICABLE IN 6A PROCEEDING 0.78 Complaints. 0.79 Docket number. 0.80 Referees. 0.81 Intervention. 0.82 The answer. 0.83 Motions and requests. 0.84 Oral hearing before referee. 0.85 Depositions. 0.86 Subpenas. 0.87 Fees of witnesses. 0.88 Prehearing conferences. 0.89 Referee's report. 0.90 Shortened procedure. 0.91 Transmittal of record.

Sec. 0.92 Argument before the Commission. 0.93 Preparation and Issuance of order. 0.94 Applications for reopening hearings,

for rehearings or rearguments of proceedings, or for reconsideration of

orders. 0.95 Filing; service; extensions of time; ad.

ditional time for filing; and compu

tation of time. RULES APPLICABLE TO ALL PROCEEDINGS 0.96 Hearings before the Commission,

SOURCE: The provisions of this part o appear at 13 F.R. 7820, Dec. 18, 1948, unless otherwise noted. Subpart A—Rules Applicable to Pro

ceedings Before the Secretary of Agriculture AUTHORITY: The provisions of this Subpart A issued under sec, 8a, 49 Stat. 1600; 7 U.S.C. 12a. $ 0.0 Scope and applicability of rules of

practice. Sections 0.1-0.22, inclusive, shall apply to the conduct of all disciplinary proceedings as defined in $ 0.2(j).

Sections 0.1, 0.2 and 0.23-0.27, inclusive, shall apply to the conduct of all rule-making proceedings as defined in $ 0.2(k). $ 0.1 Meaning of words.

Words in this subpart in the singular form shall be deemed to import the plural, and vice versa, as the case may demand. $ 0.2

Definitions. As used in this subpart, the terms as defined in section 2 of the act shall apply with equal force and effect. In addition, and except as may be provided otherwise in this subpart:

(a) The term "act” means in Commodity Exchange Act, approved September 21, 1922 (42 Stat. 998); as amended June 15, 1936 (49 Stat. 1491; 7 U.S.C. 1-17a), and other legislation supplementary thereto and amendatory thereof;

(b) The term “Department” means the United States Department of Agriculture;

(c) The term “Secretary” means the Secretary of Agriculture or any person to whom authority has heretofore lawfully been delegated, or to whom authority may hereafter lawfully be delegated, to act in his stead;

(d) The term “Commodity Exchange Authority" means the Commodity Ex

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change Authority, United States Department of Agriculture;

(e) The term “FEDERAL REGISTER" means the publication provided for by the act of July 26, 1935, as amended (49 Stat. 500, as amended; 44 U.S.C.; and Sup., ch. 8B).

(f) The term “hearing” means that part of the proceeding which involves the submission of evidence and means either an oral or a written hearing;

(g) The term "party" includes the Secretary in those instances where he is named as a party of record in the proceeding;

(h) The term "complainant” means the party upon whose complaint the proceeding is instituted;

(i) The term "respondent” means the party proceeded against;

(j) The term "disciplinary proceeding” means any proceeding before the Secretary arising under the act, in which proceeding it is required by law that the order or other determination of the Secretary shall be made only after an opportunity for a hearing, and, if a hearing be held, only upon the basis of a record made in the course of such hearing;

(k) The term "rule-making proceeding" means any proceeding before the Secretary arising under section 5a (4) and (5) of the act;

(1) The term "hearing clerk" means the hearing clerk, United States Department of Agriculture, Washington 25, D.C.;

(m) The term "referee" means an examiner conducting a proceeding under the act;

(n) The term "referee's report” (presiding officer's report) means the referee's report to the Secretary, and includes the referee's proposed (1) findings of fact and conclusions with respect to all materia' issues of fact, law or discretion, as well as the reasons or basis therefor, 2) order, and (3) rulings on findings, conclusions and order submitted by the parties;

(0) The term "Act Administrator" means the Administrator of the Commodity Exchange Authority, United States Department of Agriculture, in his capacity as Adriinistrator of the Commodity Exchange Act, or any officer or employee of the Commodity Exchange Authority to whom he has heretofore lawfully delf:gated or may hereafter lawfully delegete the authority to act in his stead;

(p) The term "examiner" mean:
examiner in the Office of Hearing E
iners, United States Department o
riculture,
RULES APPLICABLE TO DISCIPLINA

PROCEEDINGS
$ 0.3 Institution of proceedings.

(a) Application to institute pro ing. Any interested person having information of any violation of the or of any of the regulations pra gated thereunder, by any person ( than a contract market) may file the Act Administrator an applicatio questing the Institution of such pro ing as is authorized under the act. application shall be in writing, si by or on behalf of the applicant, shall include a short and simple s ment of the facts constituting the all violation and the name and addre the applicant and the name and ad of the person against whom the appli complains.

(b) Status of applicant. The pe filing an application as described in graph (a) of this section shall hav legal status in the proceeding which be instituted as a result of the app tion, except where the applicant ma permitted to intervene therein, in manner provided in this subpart, or be called as a witness, and the applica identity shall not be divulged by any ployee of the Department, except the applicant's prior consent or court order.

(C) Who may institute. If, after vestigation of the matters compla of in the application described in p graph (a) of this section, or after vestigation made on his own motion, Secretary “has reason to believe that person (other than a contract mar is violating or has violated any of provisions of the act, or any of the r and regulations made pursuant to requirements, or has manipulated attempting to manipulate the ma price of any commodity, in inters commerce, or for future delivery or subject to the rules of any board trade,

"1 he will institute a proceedi Provided, That in any case, except of wilfulness or one in which the pu health, interest or safety otherwise quires, prior to the institution of a g ceeding for the suspension or revoca

1 Words in quotation marks from se (b), 42 Stat. 1001, as amended; 7 U.S.C.

of a registration or license, facts or con- (c) Amendments. At any time prior ditions which may warrant such action to the close of the hearing, the comshall be called, in writing, to the atten- plaint may be amended; but, in case of tion of the person complained against, an amendment adding new provisions, and such person shall be accorded op- the hearing shall, at the request of the portunity to demonstrate or achieve respondent, be adjourned for a period compliance with all lawful requirements. not exceeding 15 days. Amendments Proceedings will be instituted only upon subsequent to the first amendment or complaints issued by the Secretary and subsequent to the filing of an answer by will not be instituted upon pleadings the respondent may be made only with filed by private persons.

leave of the referee or with the written $ 0.4 Stipulations and consent orders.

consent of the adverse party. (a) Stipulation of compliance. At any

$ 0.6 Docket number, time prior to the issuance of the com- Each proceeding, immediately followplaint in any proceeding, the Secretary, ing its institution, shall be assigned a in his discretion, may enter into a stip- docket number by the hearing clerk, and ulation with the prospective respondent, thereafter the proceeding shall be rea whereby the latter admits the material ferred to by such number. facts and agrees to discontinue the acts or practices which are intended to be

$ 0.7 Referees. set up as violative of the act. Such (a) Assignment. No referee shall be stipulations shall be admissible as evi- assigned to serve in any proceedings who dence of such acts and practices in any (1) has any pecuniary interest in any subsequent proceeding against such per

matter or business involved in the proson before the Secretary.

ceeding, (2) is related within the third (b) Consent order. At any time after degree by blood or marriage to any party the issuance of the complaint and prior to the proceeding, or (3) has particito the hearing in any proceeding, the pated in the investigation preceding the Secretary, in his discretion, may allow institution of the proceeding or in the the respondent to consent to an order. determination that it should be instiIn so consenting, the respondent must tuted or in the preparation of the comsubmit, for filing in the record, a stipu- plaint or in the development of the evilation or statement in which he admits dence to be introduced therein. at least those facts necessary to the Sec- (d) Disqualification of referee. Any retary's jurisdiction and agrees that an party may file with the hearing clerk a order may be entered against him. Upon timely affidavit of disqualification of the a record composed of the complaint and referee which shall set forth with parthe stipulation or agreement consenting ticularity the grounds of alleged disto the order, the Secretary may enter qualification. After such investigation the order consented to by the respond- or hearing as the Secretary may deem ent, which shall have the same force and

necessary, he may find the affidavit effect as an order made after oral

without merit or may direct that another hearings.

referee be assigned to the proceeding. $ 0.5 Complaints.

Where the afidavit is found without

merit, the affidavit, any record made (a) Filing and service. All complaints

thereon, and the finding and order of shall be filed with the hearing clerk. the Secretary shall be made a part of The provisions of $ 0.22 shall govern the

the record. filing, number of copies, and service of

A referee shall ask to be withdrawn complaints.

from any proceeding in which he deems (b) Contents. complaint shall state

himself disqualified for any reason. briefly and clearly the allegations of

(c) Conduct. The referee shall confact which constitute basis for the

duct the proceeding in a fair and imparproceedings and shall specify with par- tial manner and, save to the extent reticularity the matters or things in issue. quired for the disposition of ex parte Complaints shall not include charges, matters as authorized by law, he shall implied charges, or requirments phrased not consult any person or party on any generally in the words of the act, but fact in issue unless upon notice and opthe words of the act may be identified portunity for all parties to participate. and quoted or used in preliminary re- (d) Powers of referee. Subject to recitals.

view by the Secretary as provided elsewhere in this subpart, the referee, in any proceeding assigned to him, shall have power to:

(1) Rule upon motions and requests;

(2) Set the time and place of hearing, adjourn the hearing from time to time, and change the time and place of hearing;

(3) Administer oaths and affirmations and take affidavits;

(4) Issue subpenas requiring the attendance and testimony of witnesses and the production of books, records, contracts, papers, and other documentary evidence;

(5) Summon and examine witnesses and receive evidence;

(6) Take or order the taking of depositions;

(7) Admit or exclude evidence;

(8) Hear oral argument on facts or law;

(9) Do all acts and take all measures necessary for the maintenance of order and efficient conduct of the proceeding.

(e) who may act in the absence of the referee. In case of the absence of the referee, or his inability to act, the powers and duties to be performed by him under this subpart in connection with a proceeding may, without abatement of the proceeding unless otherwise ordered by the Secretary, be assigned to any other referee. $ 0.8 Intervention.

At any time after the institution of a proceeding, and before it has been submitted to the Secretary for final consideration, the Secretary or the referee may, upon petition in writing and for good cause shown, permit any person to intervene therein. The petition shall state with preciseness and particularity: (a) The petitioner's relationship to the matters involved in the proceeding, (b) the nature of the material he intends to present in evidence, (c) the nature of the argument he intends to make, (d) any other reason that he should be allowed to intervene. $ 0.9

The answer. (a) Filing and service. Within 20 days after service of the complaint, the respondent shall file, in triplicate, with the hearing clerk, an answer, signed by the respondent or his attorney: Provided, That the Secretary may order that the hearing be held without answer or other pleading. The answer shall be served upon the complainant, and any other

party of record, in the manner pro
in $ 0.22.

(b) Contents; failure to file.
answer shall (1) contain a stateme
the facts which constitute the gre
of defense, and shall specifically a
deny, or explain each of the allega
of the complaint unless the responde
without knowledge, in which .case
answer shall so state; or (2) state
the respondent admits all of the al
tions of the complaint. The answer
contain a waiver of hearing.

Failure to file an answer to or p specifically to any allegation of the plaint shall constitute an admissio such allegation.

(c) Procedure upon admission of f
The admission, in the answer or by
ure to file an answer, of all the mat
allegations of fact contained in the e
plaint shall constitute a waiver of h
ing. Upon such admission of facts,
referee, without further investigatio.
hearing, shall prepare his report
which he shall adopt as his prop
findings of fact the material facts alle
in the complaint. Unless the pas
have waived service of the referee's
port, it shall be served upon them in
manner provided in $ 0.22. The par
shall be given an opportunity to file
ceptions to the report, to file briefs
support of such exceptions, and to m
oral argument thereon before the Sec
tary. Any request to make oral ar
ment before the Secretary must be f
in the manner and within the time p
vided in $ 0.16(d).
$ 0.10

Motions and requests.
(a) General. All motions and reque
shall be filed with the hearing clerk,
cept that those made during the course
an oral hearing may be filed with
referee or may be stated orally and ma
a part of the transcript.

The referee is authorized to rule up
all motions and requests filed or ma
prior to the filing of his report with t
hearing clerk, as hereinafter provide
The Secretary will rule upon all motio
and requests filed after that time.

(b) Motions entertained. Any moti will be entertained except a motion dismiss on the pleadings.

The submission or certification of a motion, request, objection, or other que tion to the Secretary prior to the tin when the referee's report is filed with ti hearing clerk shall be in the discretic of the referee.

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