Page:United States Statutes at Large Volume 90 Part 2.djvu/1413

 PUBLIC LAW 94-582—OCT. 21, 1976

90 STAT. 2881

(b) by Striking out the word "inspection" immediately following 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 Conflict of under this Act, or any member, director, officer, or employee thereof, interest. 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 commercial 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 governmental entity related to any 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 stockholder 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 Substantial holding 2 per centum or more, or one hundred shares or more, of stock holder. 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 "Use of official refer to the use of the services provided under such a delegation or inspection 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 Administrator 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, Authority the Administrator may delegate authority to a State agency or desig- delegation. 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 handling of grain or use of official inspection or weighing service is not such as to jeopardize the integrity or the effective and objective operation of the functions performed by such agency. Whenever the Admin- Report to cong committees.

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