---
kind: "section"
citation: "7 U.S.C. § 242"
title: "7"
title_heading: "Agriculture"
number: "242"
heading: "Powers of Secretary"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/7/242"
units:
  - "Chapter 10 — Warehouses"
---

# §242. Powers of Secretary

- (a) **In general—** The [Secretary](/usc/7/241.md?p=9) shall have exclusive power, jurisdiction, and authority, to the extent that this chapter applies, with respect to—
  - (1) each [warehouse operator](/usc/7/241.md?p=11) licensed under this chapter;
  - (2) each [person](/usc/7/241.md?p=7) that has obtained an [approval](/usc/7/241.md?p=2) to engage in an activity under this chapter; and
  - (3) each [person](/usc/7/241.md?p=7) claiming an interest in an [agricultural product](/usc/7/241.md?p=1) by means of a document or [receipt](/usc/7/241.md?p=8) subject to this chapter.
- (b) **Covered agricultural products—** The [Secretary](/usc/7/241.md?p=9) shall specify, after an opportunity for notice and comment, those [agricultural products](/usc/7/241.md?p=1) for which a [warehouse](/usc/7/241.md?p=10) license may be issued under this chapter.
- (c) **Investigations—** The [Secretary](/usc/7/241.md?p=9) may investigate the storing, warehousing, classifying according to grade and otherwise, weighing, and certifying of [agricultural products](/usc/7/241.md?p=1).
- (d) **Inspections—** The [Secretary](/usc/7/241.md?p=9) may inspect or cause to be inspected any [person](/usc/7/241.md?p=7) or [warehouse](/usc/7/241.md?p=10) licensed under this chapter and any [warehouse](/usc/7/241.md?p=10) for which a license is applied for under this chapter.
- (e) **Suitability for storage—** The [Secretary](/usc/7/241.md?p=9) may determine whether a licensed [warehouse](/usc/7/241.md?p=10), or a [warehouse](/usc/7/241.md?p=10) for which a license is applied for under this chapter, is suitable for the proper storage of the [agricultural product](/usc/7/241.md?p=1) or products stored or proposed for storage in the [warehouse](/usc/7/241.md?p=10).
- (f) **Classification—** The [Secretary](/usc/7/241.md?p=9) may classify a licensed [warehouse](/usc/7/241.md?p=10), or a [warehouse](/usc/7/241.md?p=10) for which a license is applied for under this chapter, in accordance with the ownership, location, surroundings, capacity, conditions, and other qualities of the [warehouse](/usc/7/241.md?p=10) and as to the kinds of licenses issued or that may be issued for the [warehouse](/usc/7/241.md?p=10) under this chapter.
- (g) **Warehouse operator’s duties—** Subject to the other provisions of this chapter, the [Secretary](/usc/7/241.md?p=9) may prescribe the duties of a [warehouse operator](/usc/7/241.md?p=11) operating a [warehouse](/usc/7/241.md?p=10) licensed under this chapter with respect to the [warehouse operator](/usc/7/241.md?p=11)’s care of and responsibility for [agricultural products](/usc/7/241.md?p=1) stored or handled by the [warehouse operator](/usc/7/241.md?p=11).
- (h) **Systems for electronic conveyance—**
  - (1) **Regulations governing electronic systems—** Except as provided in [paragraph (2)](#h-2), the [Secretary](/usc/7/241.md?p=9) may promulgate regulations governing one or more electronic systems under which [electronic receipts](/usc/7/241.md?p=5) may be issued and transferred and other [electronic documents](/usc/7/241.md?p=4) relating to the shipment, payment, and financing of the sale of [agricultural products](/usc/7/241.md?p=1) may be issued or transferred.
  - (2) **Limitations—** The [Secretary](/usc/7/241.md?p=9) shall not have the authority under this chapter to establish—
    - (A) one or more central filing systems for the filing of financing statements or the filing of the notice of financing statements; or
    - (B) rules to determine [security](/usc/7/24.md?p=b) interests of [persons](/usc/7/241.md?p=7) affected by this chapter.
- (i) **Examination and audits—** In addition to the authority provided under [subsection (l)](#l), on request of the [person](/usc/7/241.md?p=7), [State](/usc/7/198.md?p=5) agency, or commodity exchange, the [Secretary](/usc/7/241.md?p=9) may conduct an examination, audit, or similar activity with respect to—
  - (1) any [person](/usc/7/241.md?p=7) that is engaged in the business of storing an [agricultural product](/usc/7/241.md?p=1) that is subject to this chapter;
  - (2) any [State](/usc/7/198.md?p=5) agency that regulates the storage of an [agricultural product](/usc/7/241.md?p=1) by such a [person](/usc/7/241.md?p=7); or
  - (3) any commodity exchange with regulatory authority over the storage of [agricultural products](/usc/7/241.md?p=1) that are subject to this chapter.
- (j) **Licenses for operation of warehouses—** The [Secretary](/usc/7/241.md?p=9) may issue to any [warehouse operator](/usc/7/241.md?p=11) a license for the operation of a [warehouse](/usc/7/241.md?p=10) in accordance with this chapter if—
  - (1) the [Secretary](/usc/7/241.md?p=9) determines that the [warehouse](/usc/7/241.md?p=10) is suitable for the proper storage of the [agricultural product](/usc/7/241.md?p=1) or products stored or proposed for storage in the [warehouse](/usc/7/241.md?p=10); and
  - (2) the [warehouse operator](/usc/7/241.md?p=11) agrees, as a condition of the license, to comply with this chapter (including regulations promulgated under this chapter).
- (k) **Licensing of other persons—**
  - (1) **In general—** On presentation of satisfactory proof of competency to carry out the activities described in this paragraph, the [Secretary](/usc/7/241.md?p=9) may issue to any [person](/usc/7/241.md?p=7) a Federal license—
    - (A) to inspect any [agricultural product](/usc/7/241.md?p=1) stored or handled in a [warehouse](/usc/7/241.md?p=10) subject to this chapter;
    - (B) to sample such an [agricultural product](/usc/7/241.md?p=1);
    - (C) to classify such an [agricultural product](/usc/7/241.md?p=1) according to condition, grade, or other class and certify the condition, grade, or other class of the [agricultural product](/usc/7/241.md?p=1); or
    - (D) to weigh such an [agricultural product](/usc/7/241.md?p=1) and certify the weight of the [agricultural product](/usc/7/241.md?p=1).
  - (2) **Condition—** As a condition of a license issued under [paragraph (1)](#k-1), the licensee shall agree to comply with this chapter (including regulations promulgated under this chapter).
- (l) **Examination of books, records, papers, and accounts—** The [Secretary](/usc/7/241.md?p=9) may examine and audit, using designated officers, employees, or agents of the [Department](/usc/7/241.md?p=3), all books, records, papers, and accounts relating to activities subject to this chapter of—
  - (1) a [warehouse operator](/usc/7/241.md?p=11) operating a [warehouse](/usc/7/241.md?p=10) licensed under this chapter;
  - (2) a [person](/usc/7/241.md?p=7) operating a system for the electronic recording and transfer of [receipts](/usc/7/241.md?p=8) and other documents authorized by the [Secretary](/usc/7/241.md?p=9); or
  - (3) any other [person](/usc/7/241.md?p=7) issuing [receipts](/usc/7/241.md?p=8) or [electronic documents](/usc/7/241.md?p=4) authorized by the [Secretary](/usc/7/241.md?p=9) under this chapter.
- (m) **Cooperation with States—** The [Secretary](/usc/7/241.md?p=9) may—
  - (1) cooperate with officers and employees of a [State](/usc/7/198.md?p=5) who administer or enforce [State](/usc/7/198.md?p=5) laws relating to [warehouses](/usc/7/241.md?p=10), [warehouse operators](/usc/7/241.md?p=11), weighers, graders, inspectors, samplers, or classifiers; and
  - (2) enter into cooperative agreements with [States](/usc/7/198.md?p=5) to perform activities authorized under this chapter.

## Source credit

(Aug. 11, 1916, ch. 313, pt. C, § 3, as added Pub. L. 106–472, title II, § 201, Nov. 9, 2000, 114 Stat. 2062.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 242, acts Aug. 11, 1916, ch. 313, pt. C, § 2, 39 Stat. 486; Feb. 23, 1923, ch. 106, 42 Stat. 1282, defined terms, prior to the general amendment of this chapter by Pub. L. 106–472. See section 241 of this title.

A prior section 3 of act Aug. 11, 1916, ch. 313, pt. C, was classified to section 243 of this title, prior to the general amendment of this chapter by Pub. L. 106–472.