[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4250 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 4250
To amend the Commodity Exchange Act to exempt certain charitable
organizations from regulation as commodity pool operators, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 9, 2019
Ms. Craig introduced the following bill; which was referred to the
Committee on Agriculture
_______________________________________________________________________
A BILL
To amend the Commodity Exchange Act to exempt certain charitable
organizations from regulation as commodity pool operators, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. EXEMPTION OF QUALIFIED CHARITABLE ORGANIZATIONS FROM
REGULATION AS COMMODITY POOL OPERATORS.
Section 4m of the Commodity Exchange Act (7 U.S.C. 6m) is amended--
(1) by striking ``Sec. 4m. (1) It'' and inserting the
following:
``SEC. 4M. USE OF MAILS OR OTHER MEANS OR INSTRUMENTALITIES OF
INTERSTATE COMMERCE BY COMMODITY TRADING ADVISORS AND
COMMODITY POOL OPERATORS.
``(a) Prohibition.--
``(1) In general.--It'';
(2) in the second sentence--
(A) by striking ``The provisions of this section''
and inserting the following:
``(2) Exceptions.--
``(A) Commodity trading advisors.--
``(i) In general.--Subject to clause (ii)
and except as provided in subparagraphs (B) and
(C), this section'';
(B) by striking ``commodity trading advisor who is
a (1) dealer'' and inserting the following: ``commodity
trading advisor who is a--
``(I) dealer'';
(C) by striking ``or (2) nonprofit'' and inserting
the following: ``; or
``(II) nonprofit'';
(D) by striking ``Commodity Futures Trading
Commission Act of 1974; if the advice by the person
described in clause (1) or (2) of this sentence'' and
inserting the following: ``Commodity Futures Trading
Commission Act of 1974.
``(ii) Applicability.--Clause (i) only
applies if the advice by the person described
in subclause (I) or (II) of clause (i)'';
(E) by striking ``business:'' and inserting
``business.''; and
(F) by striking ``Provided, That such person shall
be subject to proceedings under section 14 of this
Act.'' and inserting the following:
``(B) Complaints against excepted persons.--A
person described in subclause (I) or (II) of clause (i)
shall be subject to proceedings under section 14.
``(C) Charitable organizations.--This section shall
not apply to any commodity trading advisor or commodity
pool operator that is--
``(i) a charitable organization, as defined
in section 3(c)(10)(D)(iii) of the Investment
Company Act of 1940 (15 U.S.C. 80a-
3(c)(10)(D)(iii)), or a trustee, director,
officer, employee, or volunteer of such a
charitable organization acting within the scope
of the employment or duties of the person with
the organization, whose trading advice is
provided only to, or with respect to, one or
more of--
``(I) any such charitable
organizations; or
``(II) an investment trust,
syndicate, or similar form of
enterprise excluded from the definition
of `investment company' pursuant to
section 3(c)(10) of the Investment
Company Act of 1940 (15 U.S.C. 80a-
3(c)(10)); or
``(ii) any plan, company, or account
described in section 3(c)(14) of the Investment
Company Act of 1940 (15 U.S.C. 80a-3(c)(14)),
any person or entity who establishes or
maintains such a plan, company, or account, or
any trustee, director, officer, employee, or
volunteer for any of the foregoing plans,
persons, or entities acting within the scope of
the employment or duties of the person with the
organization, whose trading advice is provided
only to, or with respect to, any investment
trust, syndicate, or similar form of enterprise
excluded from the definition of `investment
company' pursuant to section 3(c)(14) of the
Investment Company Act of 1940 (15 U.S.C. 80a-
3(c)(14)).'';
(3) by striking ``(2) Nothing in this Act'' and inserting
the following:
``(b) Relationship to Other Law.--Nothing in this Act'';
(4) by striking ``(3) Exception.--'' and all that follows
through ``Paragraph (1) shall not apply'' and inserting the
following:
``(c) Exception.--
``(1) In general.--Subsection (a) shall not apply'';
(5) by striking ``(B) Engaged primarily.--For purposes of
subparagraph (A)'' and inserting the following:
``(2) Engaged primarily.--For purposes of paragraph (1)'';
(6) by striking ``(C) Commodity interests.--For purposes of
this paragraph'' and inserting the following:
``(3) Commodity interests.--For purposes of this
subsection''; and
(7) by adding at the end the following:
``(d) Disclosure Concerning Exempted Charitable Organizations.--A
commodity trading advisor or commodity pool operator that is an
organization or person described in subsection (a)(2)(C)(i) to or of
any investment trust, syndicate, or similar form of enterprise excluded
from the definition of `investment company' pursuant to section
3(c)(10)(B) of the Investment Company Act of 1940 (15 U.S.C. 80a-
3(c)(10)(B)) shall provide disclosure in accordance with section 7(e)
of that Act (15 U.S.C. 80a-7(e)).''.
<all>