Futures Trading Act of 1986

(Measure indefinitely postponed in Senate, H.R. 4613 passed in lieu)

Futures Trading Act of 1986: Title I: Enforcement - Amends the Commodity Exchange Act to state that the fraud and related abuse prohibitions apply to the offer or sale of all commodity futures contracts whether or not such contracts are traded on designated contract markets. Stipulates that such prohibitions shall not apply to foreign exchanges.

Authorizes the Commodity Futures Trading Commission (Commission) to serve subpoenas on persons outside the United States.

Authorizes the ex parte appointment of temporary receivers to administer the provisions of any other ex parte restraining order and to perform other related duties.

Title II: Leverage Transactions - Excludes leverage transactions as a distinct form of commodity instrument from regulation under such Act, effective two years after enactment of this Act. Repeals other related leverage transaction provisions.

Title III: Registered Futures Associations - Makes the automatic stay provisions inapplicable to a registered futures association (association) disciplinary action.

Provides that the Commission shall review only final disciplinary actions taken by an association.

Sets forth the standards for Commission review of denial of membership actions.

Repeals the 30-day Commission approval period for proposed association rules changes.

Title IV: Authorization for Appropriations and Miscellaneous Amendments - Makes the prohibition against a Commissioner's or Commission agent's or employee's participating in commodity transactions applicable only if: (1) nonpublic information is used in the transaction; (2) the transaction is prohibited by rule or regulation; or (3) the transaction is made through the use of any Commission-regulated instrument. States that such prohibitions shall not apply to any transaction or class of transactions that the Commission determines would not be contrary to the public interest.

Authorizes appropriations through FY 1992 to carry out the provisions of such Act.

Requires Government Accounting Office studies of: (1) trading in cattle futures contracts; and (2) marketing characteristics of Farmers Home Administration borrowers.

Transfers 173 acres of National Forest System land in Dawes County, Nebraska, to the Nebraska Game and Parks Commission.

Title V: Grain Quality Improvement - Grain Quality Improvement Act of 1986 - Amends the United States Grain Standards Act to state that: (1) it is U.S. policy to provide quality grain to domestic and foreign buyers; (2) the primary objective of the Official United States Standards for Grain is to certify grain quality as accurately as possible; and (3) U.S. grain standards shall provide the framework necessary for the markets to establish quality improvement incentives.

Prohibits, as of May 1, 1987, the recombination of dockage or foreign material with any grain marketed in or exported from the United States. Directs the Secretary to establish a dust tolerance level for export grain.

Stipulates that such prohibitions shall not be construed to bar: (1) the treatment of grain to destroy or prevent injurious fungi and insects; (2) any marketing of dockage or foreign material removed from grain which is marketed separately and uncombined with whole grain, or as part of a processed food for livestock, poultry, or fish; (3) the blending of similar grains to adjust mixture quality; (4) the recombination of broken corn or kernels with grain of the same type; (5) effective for the period ending December 31, 1987, the recombination of dockage or foreign material removed at an export loading facility from grain to be shipped as a cargo under one export inspection certificate; and (6) the addition of identification material.

Authorizes the Secretary to exempt from such prohibitions the last handling of grain in a final domestic sale and shipment when in the public interest.

Directs the Administrator of the Federal Grain Inspection Service to issue a final rulemaking within six months regarding insect infestation of grain.

Directs the Secretary: (1) in consultation with farmers and members of the grain industry, to study the feasibility of adjusting the Commodity Credit Corporation grain premium and discount schedules in order to encourage the delivery, storage, and export of high quality grain; and (2) report to the appropriate congressional committees within 180 days.

Directs the Administrator to: (1) publish and seek public comment on H.R. 5354 (Optimal Grain Grading Act); and (2) report to the Congress by May 1, 1987.

Provides for a Federal Grain Inspection Service and Agricultural Research Service study of the need for an availability of uniform end-use value tests for grain including an ongoing review of such tests that are of economic value to buyers. Directs the Administrator: (1) to the extent practicable, to revise official grain standards accordingly; and (2) to report to the Congress within one year, and annually thereafter.

Title VI: General Provisions - Amends the Agricultural Act of 1949 to authorize the Secretary of Agriculture, regarding the 1989 and 1990 extra long staple cotton crops, to require compliance with the terms and conditions of the extra long staple cotton program as a condition of eligibility for benefits under other commodity programs. Prohibits such requirement for the 1987 and 1988 extra long staple cotton crops.

Amends the Soil Conservation and Domestic Allotment Act to permit the continuation of one local agricultural stabilization and conservation administrative area in those counties that had less than three such areas as of December 23, 1985.

Prohibits peanut marketing pools by type except for Valencia peanuts produced in New Mexico.

Directs the Secretary to make 1986 wheat deficiency payments not later than the end of the fifth month of the marketing year.

Authorizes alfalfa and other multiyear grasses and legumes, as approved by the Secretary, to be included as agricultural commodities for purposes of the highly erodible land and conservation reserve program.

Title VII: Federal Meat Inspection - Processed Products Inspection Improvement Act of 1986 - Amends the Federal Meat Inspection Act to redescribe the manner and frequency of inspection of meat food products to include the requirement that the Secretary of Agriculture take into account for each establishment: (1) the nature and frequency of processing operations; (2) the adequacy and reliability of processing controls and sanitary procedures; and (3) the history of inspection compliance. Changes the requirement that condemned meat food products be destroyed for "food purposes," to a requirement that they be destroyed for "human food purposes."

Authorizes a court, upon the Secretary's request, to issue a temporary order forbidding operation control of a facility subject to Federal inspection by any person convicted of a felony involving intentional adulteration of food, extortion, or bribery, if control by such person would pose a threat to public health or safety or a clear likelihood of significant economic harm to consumers.

Authorizes the Secretary to commence civil actions for inspection suspensions in cases of: (1) repeated offenses; and (2) assaults or threats of assault on inspectors.

Provides for judicial review of such suspension in courts of appeal.

Requires the Secretary to provide an alleged violator with notice before reporting the case for criminal prosecution.

Provides that amendments made by this Act shall not be construed to authorize the Secretary to refuse to provide inspection solely because an establishment does not participate in a total plant quality-control program.

Repeals this Act after six years.

Expresses the sense of the Congress that the Secretary should: (1) establish a residue detection program for livestock; and (2) evaluate the feasibility of developing a livestock tracing program.

Requires an annual report to the Congress, beginning not later than one year after enactment of this Act, regarding activities provided for by this Act.

Directs the Congress to evaluate the operation and effects of this Act not later than six years after its enactment.

Prohibits the President from allocating any limitation imposed on the quantity of sugar to: (1) any country whose government is involved in the trade of illicit narcotics or is failing to cooperate with U.S. narcotics enforcement activities; or (2) any foreign country that imports Cuban sugar.

States that the Philippines should be given access to the U.S. sugar market (including syrups and molasses) on terms at least as favorable as those provided to any other country, including duty-free entry and other related entry benefits.

States that the 1987 sugar quota for the Philippines, Ecuador, and the Caribbean Basin countries shall not be lower than 1986 levels.