US (United States) Code. Title7. Chapter 20A: Perishable agricultural commodities

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Agriculture

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-CITE-

7 USC CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

.

-HEAD-

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-MISC1-

Sec.

499a. Short title and definitions.

(a) Short title.

(b) Definitions.

499b. Unfair conduct.

499b-1. Products produced in distinct geographic areas.

(a) In general.

(b) Penalties.

(c) Reimbursement.

(d) Prohibition.

(e) Regulations.

499c. Licenses.

(a) License required; penalties for violations.

(b) Application and fees for licenses.

(c) Use of trade names.

499d. Issuance of license.

(a) Authority to do business; termination; renewal.

(b) Refusal of license; grounds.

(c) Issuance of license upon furnishing bond;

issuance after three years without bond; effect

of termination of bond; increase or decrease in

amount; payment of increase.

(d) Withholding license pending investigation.

(e) Refusal of license.

499e. Liability to persons injured.

(a) Amount of damages.

(b) Remedies.

(c) Trust on commodities and sales proceeds for

benefit of unpaid suppliers, sellers, or

agents; preservation of trust; jurisdiction of

courts.

499f. Complaints, written notifications, and investigations.

(a) Reparation complaints.

(b) Disciplinary violations.

(c) Investigation of complaints and notifications.

(d) Decisions on complaints.

(e) Bond required for certain complaints.

499g. Reparation order.

(a) Determination by Secretary of Agriculture of

amount of damages; order for payment.

(b) Failure to comply with order of Secretary; suit

to enforce liability; order as evidence; costs

and fees.

(c) Appeal from reparation order; proceedings.

(d) Suspension of license for failure to obey

reparation order or appeal.

499h. Grounds for suspension or revocation of license.

(a) Authority of Secretary.

(b) Unlawful employment of certain persons;

restrictions; bond assuring compliance;

approval of employment without bond; change in

amount of bond; payment of increased amount;

penalties.

(c) Fraud in procurement.

(d) Injunction.

(e) Alternative civil penalties.

499i. Accounts, records, and memoranda; duty of licensees to keep;

contents; suspension of license for violation of duty.

499j. Orders; effective date; continuance in force; suspension,

modification and setting aside; penalty.

499k. Injunctions; application of injunction laws governing orders

of Interstate Commerce Commission.

499l. Violations; report to Attorney General; proceedings; costs.

499m. Complaints; procedure, penalties, etc.

(a) Investigation by Secretary of Agriculture;

inspection of accounts, records, and memoranda;

penalty for refusing inspection.

(b) Inspection of records; surety bond; suspension of

license.

(c) Hearings; subpoenas; oaths; witnesses; evidence.

(d) Disobedience to subpoenas; remedy; contempt.

(e) Depositions; production of accounts, records and

memoranda.

(f) Fees and mileage of witnesses.

499n. Inspection of perishable agricultural commodities.

(a) Employment of inspectors; fees and expenses;

inspection certificate as evidence.

(b) Issuance of fraudulent certificates; penalties.

499o. Rules, regulations, and orders; appointment, removal, and

compensation of officers and employees; expenditures;

authorization of appropriations; abrogation of inconsistent

statutes.

499p. Liability of licensees for acts and omissions of agents.

499q. Separability.

499r. Repealed.

499s. Depositing appropriations in fund.

499t. Omitted.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in section 499b-1 of this title;

title 11 section 525; title 28 section 2342; title 49 section 5906.

-CITE-

7 USC Sec. 499a 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499a. Short title and definitions

-STATUTE-

(a) Short title

This chapter may be cited as the ''Perishable Agricultural

Commodities Act, 1930''.

(b) Definitions

For purposes of this chapter:

(1) The term ''person'' includes individuals, partnerships,

corporations, and associations.

(2) The term ''Secretary'' means the Secretary of Agriculture.

(3) The term ''interstate or foreign commerce'' means commerce

between any State or Territory, or the District of Columbia and

any place outside thereof; or between points within the same

State or Territory, or the District of Columbia but through any

place outside thereof. or within the District of Columbia.

(4) The term ''perishable agricultural commodity'' -

(A) Means any of the following, whether or not frozen or

packed in ice: Fresh fruits and fresh vegetables of every kind

and character; and

(B) Includes cherries in brine as defined by the Secretary in

accordance with trade usages.

(5) The term ''commission merchant'' means any person engaged

in the business of receiving in interstate or foreign commerce

any perishable agricultural commodity for sale, on commission, or

for or on behalf of another.

(6) The term ''dealer'' means any person engaged in the

business of buying or selling in wholesale or jobbing quantities,

as defined by the Secretary, any perishable agricultural

commodity in interstate or foreign commerce, except that (A) no

producer shall be considered as a ''dealer'' in respect to sales

of any such commodity of his own raising; (B) no person buying

any such commodity solely for sale at retail shall be considered

as a ''dealer'' until the invoice cost of his purchases of

perishable agricultural commodities in any calendar year are in

excess of $230,000; and (C) no person buying any commodity other

than potatoes for canning and/or processing within the State

where grown shall be considered a ''dealer'' whether or not the

canned or processed product is to be shipped in interstate or

foreign commerce, unless such product is frozen or packed in ice,

or consists of cherries in brine, within the meaning of paragraph

(4) of this section. Any person not considered as a ''dealer''

under clauses (A), (B), and (C) may elect to secure a license

under the provisions of section 499c of this title, and in such

case and while the license is in effect such person shall be

considered as a ''dealer''.

(7) The term ''broker'' means any person engaged in the

business of negotiating sales and purchases of any perishable

agricultural commodity in interstate or foreign commerce for or

on behalf of the vendor or the purchaser, respectively, except

that no person shall be deemed to be a ''broker'' if such person

is an independent agent negotiating sales for and on behalf of

the vendor and if the only sales of such commodities negotiated

by such person are sales of frozen fruits and vegetables having

an invoice value not in excess of $230,000 in any calendar year.

(8) A transaction in respect of any perishable agricultural

commodity shall be considered in interstate or foreign commerce

if such commodity is part of that current of commerce usual in

the trade in that commodity whereby such commodity and/or the

products of such commodity are sent from one State with the

expectation that they will end their transit, after purchase, in

another, including, in addition to cases within the above general

description, all cases where sale is either for shipment to

another State, or for processing within the State and the

shipment outside the State of the products resulting from such

processing. Commodities normally in such current of commerce

shall not be considered out of such commerce through resort being

had to any means or device intended to remove transactions in

respect thereto from the provisions of this chapter.

(9) The term ''responsibly connected'' means affiliated or

connected with a commission merchant, dealer, or broker as (A)

partner in a partnership, or (B) officer, director, or holder of

more than 10 per centum of the outstanding stock of a corporation

or association. A person shall not be deemed to be responsibly

connected if the person demonstrates by a preponderance of the

evidence that the person was not actively involved in the

activities resulting in a violation of this chapter and that the

person either was only nominally a partner, officer, director, or

shareholder of a violating licensee or entity subject to license

or was not an owner of a violating licensee or entity subject to

license which was the alter ego of its owners.

(10) The terms ''employ'' and ''employment'' mean any

affiliation of any person with the business operations of a

licensee, with or without compensation, including ownership or

self-employment.

(11) The term ''retailer'' means a person that is a dealer

engaged in the business of selling any perishable agricultural

commodity at retail.

(12) The term ''grocery wholesaler'' means a person that is a

dealer primarily engaged in the full-line wholesale distribution

and resale of grocery and related nonfood items (such as

perishable agricultural commodities, dry groceries, general

merchandise, meat, poultry, and seafood, and health and beauty

care items) to retailers. However, such term does not include a

person described in the preceding sentence if the person is

primarily engaged in the wholesale distribution and resale of

perishable agricultural commodities rather than other grocery and

related nonfood items.

(13) The term ''collateral fees and expenses'' means any

promotional allowances, rebates, service or materials fees paid

or provided, directly or indirectly, in connection with the

distribution or marketing of any perishable agricultural

commodity.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 1, 46 Stat. 531; Apr. 13, 1934, ch.

120, Sec. 1, 48 Stat. 584; Aug. 20, 1937, ch. 719, Sec. 1, 50 Stat.

725; June 29, 1940, ch. 456, Sec. 1, 2, 54 Stat. 696; Pub. L.

87-725, Sec. 1, 2, Oct. 1, 1962, 76 Stat. 673; Pub. L. 91-107, Sec.

1, 2, Nov. 4, 1969, 83 Stat. 182; Pub. L. 95-562, Sec. 1, Nov. 1,

1978, 92 Stat. 2381; Pub. L. 97-98, title XI, Sec. 1115(a), Dec.

22, 1981, 95 Stat. 1269; Pub. L. 102-237, title X, Sec. 1011(1),

Dec. 13, 1991, 105 Stat. 1898; Pub. L. 104-48, Sec. 2, 9(a), 12(a),

Nov. 15, 1995, 109 Stat. 424, 429, 430.)

-COD-

CODIFICATION

Section was formerly classified to section 551 of this title.

-MISC3-

AMENDMENTS

1995 - Subsec. (b)(9). Pub. L. 104-48, Sec. 12(a), inserted at

end ''A person shall not be deemed to be responsibly connected if

the person demonstrates by a preponderance of the evidence that the

person was not actively involved in the activities resulting in a

violation of this chapter and that the person either was only

nominally a partner, officer, director, or shareholder of a

violating licensee or entity subject to license or was not an owner

of a violating licensee or entity subject to license which was the

alter ego of its owners.''

Subsec. (b)(11), (12). Pub. L. 104-48, Sec. 2, added pars. (11)

and (12).

Subsec. (b)(13). Pub. L. 104-48, Sec. 9(a), added par. (13).

1991 - Pub. L. 102-237 inserted section catchline, added subsec.

(a), designated existing provisions as subsec. (b), and in subsec.

(b), inserted heading, substituted ''For purposes of this

chapter:'' for ''When used in this chapter - '' and periods for

semicolons at the end of pars. (1) to (6) and (9).

1981 - Pars. (6), (7). Pub. L. 97-98 substituted ''$230,000'' for

''$200,000''.

1978 - Par. (6)(B). Pub. L. 95-562, Sec. 1(a)(1), substituted

''$200,000'' for ''$100,000''.

Par. (6)(C). Pub. L. 95-562, Sec. 1(b), inserted ''other than

potatoes'' after ''commodity''.

Par. (7). Pub. L. 95-562, Sec. 1(a)(2), substituted ''$200,000''

for ''$100,000''.

1969 - Par. (6)(B). Pub. L. 91-107, Sec. 1, substituted

''$100,000'' for ''$90,000''.

Par. (7). Pub. L. 91-107, Sec. 2, substituted ''$100,000'' for

''$90,000''.

1962 - Par. (6). Pub. L. 87-725, Sec. 1, substituted ''wholesale

or jobbing quantities'' for ''carloads'', the requirement that the

dealer's invoice cost of his purchases in any calendar year exceed

$90,000 for the requirement that his purchases in such year exceed

20 carloads, and struck out definition of ''in carloads''.

Par. (7). Pub. L. 87-725, Sec. 1, excluded from definition of

''broker'', persons who are independent agents negotiating sales

for vendors and whose sales are of frozen fruits and vegetables

having an invoice value not exceeding $90,000 in any calendar year.

Pars. (9), (10). Pub. L. 87-725, Sec. 2, added pars. (9) and

(10).

1940 - Par. (4). Act June 29, 1940, Sec. 1, designated existing

provisions as cl. (A) and added cl. (B).

Par. (6)(C). Act June 29, 1940, Sec. 2, inserted '', or consists

of cherries in brine,'' after ''ice''.

1937 - Par. (6)(C). Act Aug. 20, 1937, inserted ''unless such

product is frozen or packed in ice within the meaning of paragraph

4 of this section'' after ''foreign commerce''.

1934 - Par. (6)(C). Act Apr. 13, 1934, added cl. (C).

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section

1801 of Pub. L. 97-98, set out as an Effective Date note under

section 4301 of this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Section 1(a) of Pub. L. 95-562 provided that the amendment made

by that section is effective Jan. 1, 1979.

SHORT TITLE OF 1995 AMENDMENT

Section 1(a) of Pub. L. 104-48 provided that: ''This Act

(amending this section and sections 499b, 499c to 499f, and 499h of

this title and repealing provisions set out as a note under section

499f of this title) may be cited as the 'Perishable Agricultural

Commodities Act Amendments of 1995'.''

STUDY OF DOMESTIC FRUIT AND VEGETABLE INDUSTRY

Pub. L. 101-624, title XIII, Sec. 1301-1305, Nov. 28, 1990, 104

Stat. 3559, 3560, provided that:

''SEC. 1301. FINDINGS.

''Congress finds that -

''(1) fruits, vegetables, and specialty crops are a vital and

important source of nutrition for the general health and welfare

of the people of the United States; and

''(2) fruits and vegetables are recommended as an essential

part of a healthy, nutritious diet by numerous health officials

and organizations including the Surgeon General of the United

States; the National Institutes of Health; the National Cancer

Institute; the American Heart Association; the Committee on Diet,

Nutrition and Cancer of the National Academy of Sciences; the

Department of Agriculture; and the Department of Health and Human

Services.

''SEC. 1302. PURPOSES.

''The purposes of this subtitle (subtitle A (Sec. 1301-1309) of

Pub. L. 101-624, enacting section 499b-1 of this title, amending

sections 608c and 608e-1 of this title, and enacting this note) are

to -

''(1) improve the Nation's dietary and nutritional standards by

promoting domestically produced wholesome and nutritious fruit

and vegetable products;

''(2) increase the public awareness as to the difficulties

domestic producers experience regarding the production,

harvesting, and marketing of these products; and

''(3) aid in the development of new technology and techniques

that will assist domestic producers in meeting the challenges of

increased demands for fruit and vegetable products in the future.

''SEC. 1303. DECLARATION.

''Congress declares that the domestic production of fruits and

vegetables is an integral part of this Nation's farm policy.

''SEC. 1304. STUDY OF THE FRUIT AND VEGETABLE INDUSTRY.

''(a) Study. -

''(1) In general. - The Secretary of Agriculture shall conduct

a study to determine the state of the domestic fruit and

vegetable industry. In conducting such study, the Secretary of

Agriculture shall consult with such agencies or departments, as

determined necessary by the Secretary of Agriculture, including

the Environmental Protection Agency, the Department of Health and

Human Services, the Department of Commerce, the Department of

Labor, and the Department of Education.

''(2) Contents. - The study conducted under paragraph (1) shall

include -

''(A) a review of the availability of an adequate labor

supply for maintaining and harvesting of fruits and vegetables;

''(B) a review of the availability of crop insurance or

disaster assistance for fruit and vegetable producers;

''(C) a review of scientific and technological advances in

the areas of genetics, biotechnology, integrated pest

management, post harvest protection, and other scientific

developments related to the production and marketing of fruits

and vegetables;

''(D) an examination of the availability of safe and

effective chemicals for use in the production of fruits and

vegetables, and an evaluation of the value of national

uniformity to both consumers and producers;

''(E) a review of the requirements and cost of labeling

fruits and vegetables in the industry, and the benefits that

would result from the labeling of such products; and

''(F) a review of Federal educational programs that teach the

importance of fruits and vegetables to a proper diet.

''(b) Report. - Not later than 18 months after the date of

enactment of this title (Nov. 28, 1990), the Secretary of

Agriculture shall prepare and submit, to the Committee on

Agriculture of the House of Representatives and the Committee on

Agriculture, Nutrition, and Forestry of the Senate, a report

containing the results of the study described in subsection (a).

Such report shall include -

''(1) the recommendations of the Secretary concerning the

manner in which producers of domestic fruit and vegetable

commodities that are not receiving assistance under the programs

that provide market enhancement assistance (such as the export

enhancement program under subtitle B of title XI of the Food

Security Act of 1985 (7 U.S.C. 1736p et seq.) to producers of

domestic fruit and vegetable commodities, could participate in

such programs; and

''(2) the recommendations to the Secretary concerning the

establishment of additional programs of the type described in

paragraph (1) to assist producers of domestic fruit and vegetable

commodities in increasing their production and in expanding

domestic and foreign markets for the products of such producers.

''SEC. 1305. COUNTRY OF ORIGIN LABELING PROGRAMS.

''(a) Grown in the U.S. Program. - The Secretary of Agriculture

(hereafter referred to in this section as the 'Secretary') shall

implement a program defining the conditions under which

non-perishable agricultural products may be designated as 'grown in

the U.S.'.

''(b) Pilot Program. -

''(1) In general. - The Secretary shall implement a 2-year

pilot program during which time perishable agricultural products

(fresh fruits and vegetables) are labeled or marked as to their

country of origin. This program shall be conducted nationwide.

After the 2-year period, the Secretary shall conduct a study to

determine the results of the program. The Secretary shall submit

to the Congress the results of the study within 18 months from

the date of completion of the program.

''(2) Details of the pilot program. -

''(A) Designation of country of origin. - The program shall

require that the country of origin of perishable agricultural

products be indicated on any such products or on the package,

display, holding unit, or bin by means of a label, stamp, mark,

placard, or other clear and visible indication at the point of

sale by any commission merchant, dealer, broker, or grocer. A

sign near the products shall be an acceptable indication of the

country of origin.

''(B) Application of program. -

''(i) Imported and domestic products. - The program shall

apply to imported and domestic perishable agricultural

products (including fresh fruits and vegetables).

''(ii) Imported perishable agricultural products. - The

labeling program shall apply to imported perishable

agricultural products that enter the United States marked as

to the country of origin and that are in compliance with

section 304(a) of the Tariff Act of 1930 (19 U.S.C. 1304(a)).

''(C) Exemptions. - The Secretary may provide for exemptions

for products that are exempted, under section 304(a)(3)(J) of

the Tariff Act of 1930, from the country of origin marking

requirements of that Act (19 U.S.C. 1202 et seq.).

''(c) Authorization of Appropriations. - There are authorized to

be appropriated such sums as are necessary to carry out this

section.''

POTATO DEALERS

Section 1(b) of Pub. L. 95-562 provided in part that no person

buying potatoes for processing solely within the State where grown

shall be deemed or considered to be a dealer under par. (6) of this

section as amended by section 1(b) of Pub. L. 95-562 until Jan. 1,

1982.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 499b-1, 1638 of this

title; title 31 section 3903.

-CITE-

7 USC Sec. 499b 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499b. Unfair conduct

-STATUTE-

It shall be unlawful in or in connection with any transaction in

interstate or foreign commerce:

(1) For any commission merchant, dealer, or broker to engage in

or use any unfair, unreasonable, discriminatory, or deceptive

practice in connection with the weighing, counting, or in any way

determining the quantity of any perishable agricultural commodity

received, bought, sold, shipped, or handled in interstate or

foreign commerce.

(2) For any dealer to reject or fail to deliver in accordance

with the terms of the contract without reasonable cause any

perishable agricultural commodity bought or sold or contracted to

be bought, sold, or consigned in interstate or foreign commerce by

such dealer.

(3) For any commission merchant to discard, dump, or destroy

without reasonable cause, any perishable agricultural commodity

received by such commission merchant in interstate or foreign

commerce.

(4) For any commission merchant, dealer, or broker to make, for a

fraudulent purpose, any false or misleading statement in connection

with any transaction involving any perishable agricultural

commodity which is received in interstate or foreign commerce by

such commission merchant, or bought or sold, or contracted to be

bought, sold, or consigned, in such commerce by such dealer, or the

purchase or sale of which in such commerce is negotiated by such

broker; or to fail or refuse truly and correctly to account and

make full payment promptly in respect of any transaction in any

such commodity to the person with whom such transaction is had; or

to fail, without reasonable cause, to perform any specification or

duty, express or implied, arising out of any undertaking in

connection with any such transaction; or to fail to maintain the

trust as required under section 499e(c) of this title. However,

this paragraph shall not be considered to make the good faith

offer, solicitation, payment, or receipt of collateral fees and

expenses, in and of itself, unlawful under this chapter.

(5) For any commission merchant, dealer, or broker to

misrepresent by word, act, mark, stencil, label, statement, or

deed, the character, kind, grade, quality, quantity, size, pack,

weight, condition, degree of maturity, or State, country, or region

of origin of any perishable agricultural commodity received,

shipped, sold, or offered to be sold in interstate or foreign

commerce. However, any commission merchant, dealer, or broker who

has violated -

(A) any provision of this paragraph may, with the consent of

the Secretary, admit the violation or violations; or

(B) any provision of this paragraph relating to a

misrepresentation by mark, stencil, or label shall be permitted

by the Secretary to admit the violation or violations if such

violation or violations are not repeated or flagrant;

and pay, in the case of a violation under either clause (A) or (B)

of this paragraph, a monetary penalty not to exceed $2,000 in lieu

of a formal proceeding for the suspension or revocation of license,

any payment so made to be deposited into the Treasury of the United

States as miscellaneous receipts. A person other than the first

licensee handling misbranded perishable agricultural commodities

shall not be held liable for a violation of this paragraph by

reason of the conduct of another if the person did not have

knowledge of the violation or lacked the ability to correct the

violation.

(6) For any commission merchant, dealer, or broker, for a

fraudulent purpose, to remove, alter, or tamper with any card,

stencil, stamp, tag, or other notice placed upon any container or

railroad car containing any perishable agricultural commodity, if

such card, stencil, stamp, tag, or other notice contains a

certificate or statement under authority of any Federal or State

inspector or in compliance with any Federal or State law or

regulation as to the grade or quality of the commodity contained in

such container or railroad car or the State or country in which

such commodity was produced.

(7) For any commission merchant, dealer or broker, without the

consent of an inspector, to make, cause, or permit to be made any

change by way of substitution or otherwise in the contents of a

load or lot of any perishable agricultural commodity after it has

been officially inspected for grading and certification, but this

shall not prohibit re-sorting and discarding inferior produce.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 2, 46 Stat. 532; Apr. 13, 1934, ch.

120, Sec. 2, 3, 48 Stat. 585; June 19, 1936, ch. 602, Sec. 1, 49

Stat. 1533; Aug. 20, 1937, ch. 719, Sec. 2-4, 50 Stat. 725, 726;

June 29, 1940, ch. 456, Sec. 3, 4, 54 Stat. 696; Apr. 6, 1942, ch.

211, 56 Stat. 200; July 30, 1956, ch. 786, Sec. 1, 70 Stat. 726;

Pub. L. 93-369, Aug. 10, 1974, 88 Stat. 423; Pub. L. 97-352, Sec.

1, Oct. 18, 1982, 96 Stat. 1667; Pub. L. 98-273, Sec. 2, May 7,

1984, 98 Stat. 166; Pub. L. 104-48, Sec. 9(b), 10, Nov. 15, 1995,

109 Stat. 430.)

-COD-

CODIFICATION

Section was formerly classified to section 552 of this title.

-MISC3-

AMENDMENTS

1995 - Pub. L. 104-48, Sec. 9(b)(1), substituted ''commerce:''

for ''commerce - '' in introductory provisions.

Pars. (1) to (3). Pub. L. 104-48, Sec. 9(b)(2), substituted

period for semicolon at end.

Par. (4). Pub. L. 104-48, Sec. 9(b)(2), (3), substituted period

for semicolon after ''section 499e(c) of this title'' and inserted

at end ''However, this paragraph shall not be considered to make

the good faith offer, solicitation, payment, or receipt of

collateral fees and expenses, in and of itself, unlawful under this

chapter.''

Par. (5). Pub. L. 104-48, Sec. 9(b)(2), 10, substituted ''foreign

commerce. However,'' for ''foreign commerce: Provided, That'',

substituted period for semicolon after ''miscellaneous receipts'',

and inserted at end ''A person other than the first licensee

handling misbranded perishable agricultural commodities shall not

be held liable for a violation of this paragraph by reason of the

conduct of another if the person did not have knowledge of the

violation or lacked the ability to correct the violation.''

Par. (6). Pub. L. 104-48, Sec. 9(b)(2), substituted period for

semicolon at end.

1984 - Par. (4). Pub. L. 98-273 inserted ''or to fail to maintain

the trust as required under section 499e(c) of this title;''.

1982 - Par. (5). Pub. L. 97-352 substituted ''Provided, That any

commission merchant, dealer, or broker who has violated (A) any

provision of this paragraph may, with the consent of the Secretary,

admit the violation or violations; or (B) any provision of this

paragraph relating to a misrepresentation by mark, stencil, or

label shall be permitted by the Secretary to admit the violation or

violations if such violation or violations are not repeated or

flagrant; and pay, in the case of a violation under either clause

(A) or (B) of this paragraph,'' for ''Provided, That any commission

merchant, dealer, or broker who has violated this paragraph may,

with the consent of the Secretary, admit the violation or

violations and pay''.

1974 - Par. (5). Pub. L. 93-369 inserted proviso for consent

admission of violations, payment of monetary penalty not in excess

of $2,000 in lieu of formal proceedings for suspension or

revocation of license, and for deposit of the payments into the

Treasury of the United States as miscellaneous receipts.

1956 - Par. (5). Act July 30, 1956, struck out ''for a fraudulent

purpose'' after ''broker'', and included misrepresentation of

region of origin.

1942 - Par. (4). Act Apr. 6, 1942, inserted ''and make full

payment'' and ''or to fail, without reasonable cause, to perform

any specification or duty, express or implied, arising out of any

undertaking in connection with any such transaction''.

1940 - Par. (1). Act June 29, 1940, Sec. 3, among other changes,

inserted ''dealer'' after ''merchant''.

Par. (5). Act June 29, 1940, inserted ''quantity, size, pack,

weight'' after ''quality''.

1937 - Par. (5). Act Aug. 20, 1937, Sec. 2, among other changes,

inserted ''mark, stencil, label, statement'' after ''act'' and

''the character, kind, grade, quality, condition, degree of

maturity'' after ''or deed''.

Par. (6). Act Aug. 20, 1937, Sec. 3, inserted ''or in compliance

with any Federal or State law or regulation'' after ''inspector''.

Par. (7). Act Aug. 20, 1937, Sec. 4, added par. (7).

1936 - Par. (4). Act June 17, 1936, struck out ''or concerning

the condition of the market for'' after ''involving''.

1934 - Par. (2). Act Apr. 13, 1934, Sec. 2, inserted ''or

consigned'' after ''sold''.

Par. (4). Act Apr. 13, 1934, Sec. 3, substituted ''in connection

with any transaction involving or concerning'' for ''concerning the

condition, quality, quantity or disposition of'' and inserted ''or

consigned'' after ''contracted to be bought or sold''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 499b-1, 499d, 499e, 499f,

499g, 499h, 499m of this title.

-CITE-

7 USC Sec. 499b-1 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499b-1. Products produced in distinct geographic areas

-STATUTE-

(a) In general

In the case of a perishable agricultural commodity (as defined

under the Perishable Agricultural Commodity Act (7 U.S.C. 499a(4))

- (FOOTNOTE 1)

(FOOTNOTE 1) See References in Text note below.

(1) subject to a Federal marketing order under the Agricultural

Marketing Agreement Act of 1937 (7 U.S.C. 601 et seq.);

(2) traditionally identified as being produced in a distinct

geographic area, State, or region; and

(3) the unique identity, based on such distinct geographic

area, of which has been promoted with funds collected through

producer contributions pursuant to such marketing order,

no person may use the unique name or geographical designation of

such commodity to promote the sale of a similar commodity produced

outside such area, State, or region.

(b) Penalties

A violation of this section shall be considered a violation of

paragraphs (4) and (5) of section 2 of the Perishable Agricultural

Commodities Act (7 U.S.C. 499b(4) and (5)).

(c) Reimbursement

A person bringing a complaint under this section shall reimburse

the Secretary of Agriculture for any and all costs associated with

the enforcement of this section.

(d) Prohibition

The Secretary of Agriculture shall not increase any fees charged

under the Perishable Agricultural Commodities Act (7 U.S.C. 499a et

seq.) to offset costs associated with the operation of this

section.

(e) Regulations

The Secretary shall promulgate regulations to carry out this

section.

-SOURCE-

(Pub. L. 101-624, title XIII, Sec. 1309, Nov. 28, 1990, 104 Stat.

3562.)

-REFTEXT-

REFERENCES IN TEXT

The Perishable Agricultural Commodity Act, and the Perishable

Agricultural Commodities Act, referred to in subsecs. (a), (b), and

(d), probably mean the Perishable Agricultural Commodities Act,

1930, act June 10, 1930, ch. 436, 46 Stat. 531, as amended, which

is classified generally to this chapter (Sec. 499a et seq.). For

complete classification of this Act to the Code, see section

499a(a) of this title and Tables.

7 U.S.C. 499a(4), referred to in subsec. (a), was redesignated 7

U.S.C. 499a(b)(4) by Pub. L. 102-237, title X, Sec. 1011(1)(A),

Dec. 13, 1991, 105 Stat. 1898.

The Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601 et

seq.), referred to in subsec. (a)(1), is act June 3, 1937, ch. 296,

50 Stat. 246, as amended, which is classified principally to

chapter 26A (Sec. 671 et seq.) of this title. For complete

classification of this Act to the Code, see section 674 of this

title and Tables. The Agricultural Marketing Agreement Act of 1937

reenacted and amended the Agricultural Adjustment Act, title I of

act May 12, 1933, ch. 25, 48 Stat. 31, as amended, which is

classified generally to chapter 26 (Sec. 601 et seq.) of this

title. For complete classification of this Act to the Code, see

Short Title note set out under section 601 of this title and

Tables.

-COD-

CODIFICATION

Section was enacted as part of the Food, Agriculture,

Conservation, and Trade Act of 1990, and not as part of the

Perishable Agricultural Commodities Act, 1930 which comprises this

chapter.

-CITE-

7 USC Sec. 499c 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499c. Licenses

-STATUTE-

(a) License required; penalties for violations

After December 10, 1930, no person shall at any time carry on the

business of a commission merchant dealer, or broker without a

license valid and effective at such time. Any person who violates

any provision of this subsection shall be liable to a penalty of

not more than $1,000 for each such offense and not more than $250

for each day it continues, which shall accrue to the United States

and may be recovered in a civil suit brought by the United States.

Any person violating this provision may, upon a showing

satisfactory to the Secretary of Agriculture, or his authorized

representative, that such violation was not willful but was due to

inadvertence, be permitted by the Secretary, or such

representative, to settle his liability in the matter by the

payment of the fees due for the period covered by such violation

and an additional sum, not in excess of $250, to be fixed by the

Secretary of Agriculture or his authorized representative. Such

payment shall be deposited in the Treasury of the United States in

the same manner as regular license fees.

(b) Application and fees for licenses

(1) Application for license

Any person desiring any such license shall make application to

the Secretary. The Secretary may by regulation prescribe the

information to be contained in such application and to be

furnished thereafter.

(2) License fees

Upon the filing of an application under paragraph (1), the

applicant shall pay such license fees, both individually and in

the aggregate, as the Secretary determines necessary to meet the

reasonably anticipated expenses for administering this chapter

and the Act to prevent the destruction or dumping of farm

produce, approved March 3, 1927 (7 U.S.C. 491-497). Thereafter,

the licensee shall pay such license fees annually or at such

longer interval as the Secretary may prescribe. The Secretary

shall take due account of savings to the program when determining

an appropriate interval for renewal of licenses. The Secretary

shall establish and alter license fees only by rulemaking under

section 553 of title 5, except that the Secretary may not alter

the fees required under paragraph (3) or (4) for retailers and

grocery wholesalers that are dealers. Effective on November 15,

1995, and until such time as the Secretary alters such fees by

rule, an individual license fee shall equal $550 per year, plus

$200 for each branch or additional business facility operated by

the applicant in excess of nine such facilities, as determined by

the Secretary, subject to an annual aggregate limit of $4,000 per

licensee. Any increase in license fees prescribed by the

Secretary under this paragraph shall not take effect unless the

Secretary determines that, without such increase, the funds on

hand as of the end of the fiscal year in which the increase takes

effect will be less than 25 percent of the projected budget to

administer this chapter and such Act for the next fiscal year.

In no case may a license fee increase by the Secretary take

effect before the end of the three-year period beginning on

November 15, 1995.

(3) One-time fee for retailers and grocery wholesalers that are

dealers

During the three-year period beginning on November 15, 1995, a

retailer or grocery wholesaler making an initial application for

a license under this section shall pay the license fee required

under subparagraph (A), (B), or (C) of paragraph (4) for license

renewals in the year in which the initial application is made.

After the end of such period, a retailer or grocery wholesaler

making an initial application for a license under this section

shall pay an administrative fee equal to $100. In either case, a

retailer or grocery wholesaler paying a fee under this paragraph

shall not be required to pay any fee for renewal of the license

for subsequent years.

(4) Gradual elimination of annual fees for retailers and grocery

wholesalers that are dealers

In the case of a retailer or grocery wholesaler that holds a

license under this section as of November 15, 1995, payments for

the renewal of the license shall be made pursuant to the

following schedule:

(A) For anniversary dates occurring during the one-year

period beginning on November 15, 1995, the licensee shall pay a

renewal fee in an amount equal to 100 percent of the applicable

renewal fee (subject to the $4,000 aggregate limit on such

payments) in effect under this subsection on the day before

November 15, 1995.

(B) For anniversary dates occurring during the one-year

period beginning at the end of the period in subparagraph (A),

the licensee shall pay a renewal fee in an amount equal to 75

percent of the amount paid by the licensee under subparagraph

(A).

(C) For anniversary dates occurring during the one-year

period beginning at the end of the period in subparagraph (B),

the licensee shall pay a renewal fee in an amount equal to 50

percent of the amount paid by the licensee under subparagraph

(A).

(D) After the end of the three-year period beginning on

November 15, 1995, the licensee shall not be required to pay

any fee if the licensee seeks renewal of the license.

(5) Perishable Agricultural Commodities Act Fund

Such fee, when collected, shall be deposited in the Treasury of

the United States as a special fund, without fiscal year

limitation, to be designated as the ''Perishable Agricultural

Commodities Act Fund'', which shall be available for all expenses

necessary to the administration of this chapter and the Act

approved March 3, 1927, referred to above. Any reserve funds in

the Perishable Agricultural Commodities Act Fund may be invested

by the Secretary in insured or fully-collateralized

interest-bearing accounts or, at the discretion of the Secretary,

by the Secretary of the Treasury in United States Government debt

instruments. Any interest earned on such reserve funds shall be

credited to the Perishable Agricultural Commodities Act Fund and

shall be available for the same purposes as the fees deposited in

such fund. Financial statements prescribed by the Director of

the Office of Management and Budget for the last completed fiscal

year, and as estimated for the current and ensuing fiscal years,

shall be included in the budget as submitted to the Congress

annually.

(c) Use of trade names

A licensee may conduct business in more than one trade name or

change the name under which business is conducted without requiring

an additional or new license. The Secretary may disapprove the use

of a trade name if, in his opinion, the use of the trade name by

the licensee would be deceptive, misleading, or confusing to the

trade, and the Secretary may, after notice and opportunity for a

hearing, suspend for a period not to exceed ninety days the license

of any licensee who continues to use a trade name which the

Secretary has disapproved for use by such licensee. The Secretary

may refuse to issue a license to an applicant if he finds that the

trade name in which the applicant proposes to do business would be

deceptive, misleading, or confusing to the trade if used by such

applicant.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 3, 46 Stat. 533; Aug. 20, 1937, ch.

719, Sec. 5, 50 Stat. 726; June 15, 1950, ch. 254, Sec. 1, 64 Stat.

217; July 30, 1956, ch. 786, Sec. 2(a), 70 Stat. 726; Pub. L.

87-725, Sec. 3, 4, Oct. 1, 1962, 76 Stat. 673, 674; Pub. L. 91-107,

Sec. 3, Nov. 4, 1969, 83 Stat. 182; 1970 Reorg. Plan No. 2, Sec.

102, eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2085; Pub. L.

95-562, Sec. 2, Nov. 1, 1978, 92 Stat. 2381; Pub. L. 97-98, title

XI, Sec. 1115(b), Dec. 22, 1981, 95 Stat. 1269; Pub. L. 100-414,

Sec. 1, Aug. 22, 1988, 102 Stat. 1102; Pub. L. 101-624, title XIII,

Sec. 1361, Nov. 28, 1990, 104 Stat. 3568; Pub. L. 104-48, Sec.

3-4(b), 5(a), Nov. 15, 1995, 109 Stat. 425-427.)

-REFTEXT-

REFERENCES IN TEXT

The Act to prevent the destruction or dumping of farm produce,

approved March 3, 1927, referred to in subsec. (b)(2), (5), is act

Mar. 3, 1927, ch. 309, 44 Stat. 1355, as amended, which is

classified generally to chapter 20 (Sec. 491 et seq.) of this

title. For complete classification of this Act to the Code, see

Tables.

-COD-

CODIFICATION

Section was formerly classified to section 553 of this title.

-MISC3-

AMENDMENTS

1995 - Pub. L. 104-48, Sec. 3(b)(1), reenacted section catchline

without change.

Subsec. (a). Pub. L. 104-48, Sec. 3(b)(1), 5(a), inserted heading

and substituted ''$1,000'' for ''$500'' in first paragraph and

''$250'' for ''$25'' in two places.

Subsec. (b). Pub. L. 104-48, Sec. 3(b)(2), inserted heading.

Subsec. (b)(1). Pub. L. 104-48, Sec. 3(a)(1), (2), inserted

heading, realigned margins, and struck out after second sentence

''Upon the filing of the application, and annually thereafter, the

applicant shall pay such fee as the Secretary determines necessary

to meet the reasonably anticipated expenses for administering this

chapter and the Act to prevent the destruction or dumping of farm

produce, approved March 3, 1927 (7 U.S.C. 491-497), but in no event

shall such fee exceed $400, plus $200 for each branch or additional

business facility operated by the applicant in excess of nine such

facilities, as determined by the Secretary. Total annual fees for

any applicant shall not exceed $4,000 in the aggregate.''

Subsec. (b)(2). Pub. L. 104-48, Sec. 4(a), added par. (2).

Subsec. (b)(3), (4). Pub. L. 104-48, Sec. 3(a)(5), added pars.

(3) and (4).

Subsec. (b)(5). Pub. L. 104-48, Sec. 3(a)(3), (4), 4(b),

designated provisions of subsec. (b) relating to Perishable

Agricultural Commodities Act Fund as par. (5), inserted heading,

realigned margins, and struck out ''The amount of money accumulated

and on hand in the special fund at the end of any fiscal year shall

not exceed 25 percent of the projected budget for the next

following fiscal year.'' after ''fees deposited in such fund.'' and

''The Secretary shall give public notice of any increase to be made

in the annual fee prescribed by him hereunder and shall allow a

reasonable time prior to the effective date of such increase for

interested persons to file their views on or objections to such

increase.'' after ''budget as submitted to the Congress annually.''

Subsec. (c). Pub. L. 104-48, Sec. 3(b)(3), inserted heading.

1990 - Subsec. (b). Pub. L. 101-624 substituted ''. Any reserve

funds in the Perishable Agricultural Commodities Act Fund may be

invested by the Secretary in insured or fully-collateralized

interest-bearing accounts or, at the discretion of the Secretary,

by the Secretary of the Treasury in United States Government debt

instruments. Any interest earned on such reserve funds shall be

credited to the Perishable Agricultural Commodities Act Fund and

shall be available for the same purposes as the fees deposited in

such fund. The'' for '': Provided, That the'' and ''. Financial''

for '': Provided further, That financial''.

1988 - Subsec. (b). Pub. L. 100-414 substituted ''$400, plus

$200'' for ''$300, plus $150'' and ''$4,000'' for ''$3,000''.

1981 - Subsec. (b). Pub. L. 97-98 substituted ''$300'', ''$150'',

and ''$3,000'' for ''$150'', ''$50'', and ''$1,000'', respectively.

1978 - Subsec. (b). Pub. L. 95-562 substituted ''in such

application and to be furnished thereafter'' for ''in such

application'' and ''$150, plus $50 for each branch or additional

business facility operated by the applicant in excess of nine such

facilities, as determined by the Secretary'' for ''$100'', and

inserted provisions limiting the total annual fees for any

applicant to an amount not to exceed $1,000 in the aggregate and

limiting the amount of money in the special fund at the end of any

fiscal year to an amount not to exceed 25 percent of the projected

budget for the next following fiscal year.

1969 - Subsec. (b). Pub. L. 91-107 increased limitation on fees

from $50 to $100.

1962 - Subsec. (b). Pub. L. 87-725, Sec. 3, increased annual fee

from a maximum of $25, to such fee as the Secretary determines

necessary to meet the expenses of administering this chapter and

the Act approved March 3, 1927, but not exceeding $50, directed the

Secretary to give public notice of any increase in the annual fee

and to allow reasonable time before the effective date of such

increase for submission of views on, or objections to, such

increase, and struck out references to the availability of the

Perishable Agricultural Commodities Act Fund for administrative

expenses of sections 581 to 589 of this title.

Subsec. (c). Pub. L. 87-725, Sec. 4, added subsec. (c).

1956 - Subsec. (b). Act July 30, 1956, increased fee from $15

annually to not more than $25 annually.

1950 - Subsec. (b). Act June 15, 1950, increased fee from $10 to

$15 annually, provided for its disposition in fund, made fund

available for administrative expenses, and provided for financial

statements.

1937 - Subsec. (a). Act Aug. 20, 1937, added second par.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section

1801 of Pub. L. 97-98, set out as an Effective Date note under

section 4301 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

Functions vested by law (including reorganization plan) in Bureau

of the Budget or Director of Bureau of the Budget transferred to

President by section 101 of 1970 Reorg. Plan No. 2. Section 102 of

1970 Reorg. Plan No. 2 redesignated Bureau of the Budget as Office

of Management and Budget and offices of Director of Bureau of the

Budget, Deputy Director of Bureau of the Budget, and Assistant

Directors of Bureau of the Budget as Director of Office of

Management and Budget, Deputy Director of Office of Management and

Budget, and Assistant Directors of Office of Management and Budget,

respectively. Section 103 of 1970 Reorg. Plan No. 2 transferred

all records, property, personnel, and funds of Bureau to Office of

Management and Budget. See part I of Reorg. Plan No. 2 of 1970, set

out in the Appendix to Title 5, Government Organization and

Employees.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 499a, 499d, 499f, 499h,

499o, 499s of this title.

-CITE-

7 USC Sec. 499d 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499d. Issuance of license

-STATUTE-

(a) Authority to do business; termination; renewal

Whenever an applicant has paid the prescribed fee the Secretary,

except as provided elsewhere in this chapter, shall issue to such

applicant a license, which shall entitle the licensee to do

business as a commission merchant and/or dealer and/or broker

unless and until it is suspended or revoked by the Secretary in

accordance with the provisions of this chapter, or is automatically

suspended under section 499g(d) of this title, but said license

shall automatically terminate on the anniversary date of the

license at the end of the annual or multiyear period covered by the

license fee unless the licensee submits the required renewal

application and pays the applicable renewal fee (if such fee is

required): Provided, That notice of the necessity of renewing the

license and of paying the renewal fee (if such fee is required)

shall be mailed at least thirty days before the anniversary date:

Provided, further, That if the renewal fee (if required) is not

paid by the anniversary date the licensee may obtain a renewal of

that license at any time within thirty days by paying the fee

provided in section 499c(b) of this title, plus $50, which shall be

deposited in the Perishable Agricultural Commodities Act fund

provided for by section 499c(b) of this title: And provided

further, That the license of any licensee shall terminate upon said

licensee, or in case the licensee is a partnership, any partner,

being discharged as a bankrupt, unless the Secretary finds upon

examination of the circumstances of such bankruptcy, which he shall

examine if requested to do so by said licensee, that such

circumstances do not warrant such termination.

(b) Refusal of license; grounds

The Secretary shall refuse to issue a license to an applicant if

he finds that the applicant, or any person responsibly connected

with the applicant, is prohibited from employment with a licensee

under section 499h(b) of this title or is a person who, or is or

was responsibly connected with a person who -

(A) has had his license revoked under the provisions of section

499h of this title within two years prior to the date of the

application or whose license is currently under suspension;

(B) within two years prior to the date of application has been

found after notice and opportunity for hearing to have committed

any flagrant or repeated violation of section 499b of this title,

but this provision shall not apply to any case in which the

license of the person found to have committed such violation was

suspended and the suspension period has expired or is not in

effect;

(C) within two years prior to the date of the application, has

been found guilty in a Federal court of having violated the

provisions of sections 491, 493 to 497 of this title, relating to

the prevention of destruction and dumping of farm produce; or

(D) has failed, except in the case of bankruptcy and subject to

his right of appeal under section 499g(c) of this title, to pay

any reparation order issued against him within two years prior to

the date of the application.

(c) Issuance of license upon furnishing bond; issuance after three

years without bond; effect of termination of bond; increase or

decrease in amount; payment of increase

An applicant ineligible for a license by reason of the provisions

of subsection (b) of this section may, upon the expiration of the

two-year period applicable to him, be issued a license by the

Secretary if such applicant furnishes a surety bond in the form and

amount satisfactory to the Secretary as assurance that his business

will be conducted in accordance with this chapter and that he will

pay all reparation orders which may be issued against him in

connection with transactions occurring within four years following

the issuance of the license, subject to his right of appeal under

section 499g(c) of this title. In the event such applicant does

not furnish such a surety bond, the Secretary shall not issue a

license to him until three years have elapsed after the date of the

applicable order of the Secretary or decision of the court on

appeal. If the surety bond so furnished is terminated for any

reason without the approval of the Secretary the license shall be

automatically canceled as of the date of such termination and no

new license shall be issued to such person during the four-year

period without a new surety bond covering the remainder of such

period. The Secretary, based on changes in the nature and volume

of business conducted by a bonded licensee, may require an increase

or authorize a reduction in the amount of the bond. A bonded

licensee who is notified by the Secretary to provide a bond in an

increased amount shall do so within a reasonable time to be

specified by the Secretary, and upon failure of the licensee to

provide such bond his license shall be automatically suspended

until such bond is provided. The Secretary may not issue a license

to an applicant under this subsection if the applicant or any

person responsibly connected with the applicant is prohibited from

employment with a licensee under section 499h(b) of this title.

(d) Withholding license pending investigation

The Secretary may withhold the issuance of a license to an

applicant, for a period not to exceed thirty days pending an

investigation, for the purpose of determining (a) whether the

applicant is unfit to engage in the business of a commission

merchant, dealer, or broker because the applicant, or in case the

applicant is a partnership, any general partner, or in case the

applicant is a corporation, any officer or holder of more than 10

per centum of the stock, prior to the date of the filing of the

application engaged in any practice of the character prohibited by

this chapter or was convicted of a felony in any State or Federal

court, or (b) whether the application contains any materially false

or misleading statement or involves any misrepresentation,

concealment, or withholding of facts respecting any violation of

the chapter by any officer, agent, or employee of the applicant.

If after investigation the Secretary believes that the applicant

should be refused a license, the applicant shall be given an

opportunity for hearing within sixty days from the date of the

application to show cause why the license should not be refused.

If after the hearing the Secretary finds that the applicant is

unfit to engage in the business of a commission merchant, dealer,

or broker because the applicant, or in case the applicant is a

partnership, any general partner, or in case the applicant is a

corporation, any officer or holder of more than 10 per centum of

the stock, prior to the date of the filing of the application

engaged in any practice of the character prohibited by this chapter

or was convicted of a felony in any State or Federal court, or

because the application contains a materially false or misleading

statement made by the applicant or by its representative on its

behalf, or involves a misrepresentation, concealment, or

withholding of facts respecting any violation of the chapter by any

officer, agent, or employee, the Secretary may refuse to issue a

license to the applicant.

(e) Refusal of license

The Secretary may refuse to issue a license to an applicant if he

finds that the applicant, or in case the applicant is a

partnership, any general partner, or in case the applicant is a

corporation, any officer or holder of more than 10 per centum of

the stock, has, within three years prior to the date of the

application, been adjudicated or discharged as a bankrupt, or was a

general partner of a partnership or officer or holder of more than

10 per centum of the stock of a corporation adjudicated or

discharged as a bankrupt, and if he finds that the circumstances of

such bankruptcy warrant such a refusal, unless the applicant

furnishes a bond of such nature and amount as may be determined by

the Secretary or other assurance satisfactory to the Secretary that

the business of the applicant will be conducted in accordance with

this chapter.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 4, 46 Stat. 533; Apr. 13, 1934, ch.

120, Sec. 4-7, 48 Stat. 585, 586; June 19, 1936, ch. 602, Sec. 2,

49 Stat. 1533; Aug. 20, 1937, ch. 719, Sec. 6, 50 Stat. 726; June

15, 1950, ch. 254, Sec. 2, 64 Stat. 218; July 30, 1956, ch. 786,

Sec. 2(b), 3, 4, 70 Stat. 726; Pub. L. 87-725, Sec. 5-7, Oct. 1,

1962, 76 Stat. 674; Pub. L. 95-598, title III, Sec. 303, Nov. 6,

1978, 92 Stat. 2673; Pub. L. 102-237, title X, Sec. 1011(2), Dec.

13, 1991, 105 Stat. 1898; Pub. L. 104-48, Sec. 4(c), 5(b), 12(c),

Nov. 15, 1995, 109 Stat. 427, 431.)

-COD-

CODIFICATION

Section was formerly classified to section 554 of this title.

-MISC3-

AMENDMENTS

1995 - Subsec. (a). Pub. L. 104-48, Sec. 4(c), 5(b), substituted

''the anniversary date of the license at the end of the annual or

multiyear period covered by the license fee unless the licensee

submits the required renewal application and pays the applicable

renewal fee (if such fee is required)'' for ''any anniversary date

thereof unless the annual fee has been paid'' in provisions before

first proviso, ''the necessity of renewing the license and of

paying the renewal fee (if such fee is required)'' for ''the

necessity of paying the annual fee'' in first proviso and ''renewal

fee (if required)'' for ''annual fee'' and ''plus $50'' for ''plus

$5'' in second proviso.

Subsec. (b). Pub. L. 104-48, Sec. 12(c)(1), inserted ''is

prohibited from employment with a licensee under section 499h(b) of

this title or'' after ''with the applicant,'' in introductory

provisions.

Subsec. (c). Pub. L. 104-48, Sec. 12(c)(2), inserted at end ''The

Secretary may not issue a license to an applicant under this

subsection if the applicant or any person responsibly connected

with the applicant is prohibited from employment with a licensee

under section 499h(b) of this title.''

1991 - Subsec. (a). Pub. L. 102-237 substituted ''annual'' for

''anual'' before ''fee has been paid''.

1978 - Subsec. (a). Pub. L. 95-598, Sec. 303(a), inserted '',

unless the Secretary finds upon examination of the circumstances of

such bankruptcy, which he shall examine if requested to do so by

said licensee, that such circumstances do not warrant such

termination''.

Subsec. (e). Pub. L. 95-598, Sec. 303(b), inserted ''and if he

finds that the circumstances of such bankruptcy warrant such a

refusal,''.

1962 - Subsec. (a). Pub. L. 87-725, Sec. 5, inserted proviso that

the license of any licensee shall terminate, if he, or in case the

licensee is a partnership, any partner, is discharged as a

bankrupt.

Subsec. (b). Pub. L. 87-725, Sec. 6, amended subsection

generally, and among other changes, required refusal of a license

upon showing responsible connection by the applicant, or by any

person responsibly connected with him, with a person guilty of the

specified conduct, without requiring that the applicant was

responsible in whole or in part for such conduct, and upon the

grounds specified in clause (C) relating to being found guilty in a

Federal court of having violated the provisions of sections 491,

493 to 497 of this title, provided that the provisions regarding

flagrant or repeated violation of section 499b of this title shall

not apply where the license in such case was suspended and the

suspension period has expired or is not in effect, and eliminated

provisions which, notwithstanding the grounds for refusal specified

in the section, permitted the Secretary to issue a license upon the

applicant furnishing a bond or other satisfactory assurance that

his business would be conducted in accordance with this chapter,

and that he would pay reparation orders previously issued against

him or which could be issued against him within two years after

receiving the license, but such license could not be issued until

after the expiration of one year from the revocation or from the

finding that the applicant was responsible, for any flagrant or

repeated violation of section 499b of this title.

Subsec. (c). Pub. L. 87-725, Sec. 7, substituted provisions which

permit a license to be issued to an applicant ineligible under

subsec. (b) of this section, upon expiration of the two year period

applicable to him, if he furnishes a surety bond as assurance that

his business will be conducted in accordance with this chapter and

that he will pay all reparation orders issued against him in

connection with transactions occurring within four years following

issuance of license, subject to appeal under section 499g(c) of

this title, or if no bond is given, permit issuance of the license

after three years from the applicable order, or decision of the

court on appeal, and which provide that if a bond is terminated

without the Secretary's approval, the license is automatically

canceled and cannot be re-issued during the four year period

without a new bond, that the Secretary may order an increase or a

reduction in the bond, and that a licensee notified to increase the

bond must do so in a reasonable time or his license will be

suspended until such bond is provided, for provisions which

required the Secretary to refuse a license to an applicant, or if

the applicant was a partnership, or an association or a

corporation, to a partner or officer or any person holding a

responsible position therein, respectively, found within two years

of being guilty of violating sections 491 to 497 or 499n(b) of this

title.

1956 - Subsec. (a). Act July 30, 1956, Sec. 2(b), substituted

''the fee provided in section 499c(b) of this title, plus $5'' for

''a fee of $20''.

Subsec. (d). Act July 30, 1956, Sec. 3, included within term

''applicant'' any general partner of a partnership, and officers or

holders of more than 10 per centum of the stock of a corporation,

and permitted the Secretary to refuse to issue a license to an

applicant who was convicted of a felony in any State or Federal

court.

Subsec. (e). Act July 30, 1956, Sec. 4, added subsec. (e).

1950 - Subsec. (a). Act June 15, 1950, increased fee for late

registration from $15 to $20, and provided for its disposition in

the fund.

1937 - Subsec. (a). Act Aug. 20, 1937, inserted first and second

provisos.

Subsec. (b). Act Aug. 20, 1937, among other changes, inserted

''Such bond shall be in an amount sufficient in the judgment of the

Secretary of Agriculture to insure payment of such reparation

orders'' at the end.

Subsecs. (c), (d). Act Aug. 20, 1937, amended subsecs. (c) and

(d) generally.

1936 - Subsec. (b). Act June 19, 1936, among other changes,

inserted ''if he finds'' after ''or (3)'' and ''or (5)'' after

''section 499b''.

1934 - Subsec. (b). Act Apr. 13, 1934, Sec. 4, among other

changes, added cls. (3) and (4).

Subsecs. (c) to (e). Act Apr. 13, 1934, Sec. 5-7, added subsecs.

(c) to (e).

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section

402(a) of Pub. L. 95-598, set out as an Effective Date note

preceding section 101 of Title 11, Bankruptcy.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 499h of this title.

-CITE-

7 USC Sec. 499e 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499e. Liability to persons injured

-STATUTE-

(a) Amount of damages

If any commission merchant, dealer, or broker violates any

provision of section 499b of this title he shall be liable to the

person or persons injured thereby for the full amount of damages

(including any handling fee paid by the injured person or persons

under section 499f(a)(2) of this title) sustained in consequence of

such violation.

(b) Remedies

Such liability may be enforced either (1) by complaint to the

Secretary as hereinafter provided, or (2) by suit in any court of

competent jurisdiction; but this section shall not in any way

abridge or alter the remedies now existing at common law or by

statute, and the provisions of this chapter are in addition to such

remedies.

(c) Trust on commodities and sales proceeds for benefit of unpaid

suppliers, sellers, or agents; preservation of trust;

jurisdiction of courts

(1) It is hereby found that a burden on commerce in perishable

agricultural commodities is caused by financing arrangements under

which commission merchants, dealers, or brokers, who have not made

payment for perishable agricultural commodities purchased,

contracted to be purchased, or otherwise handled by them on behalf

of another person, encumber or give lenders a security interest in,

such commodities, or on inventories of food or other products

derived from such commodities, and any receivables or proceeds from

the sale of such commodities or products, and that such

arrangements are contrary to the public interest. This subsection

is intended to remedy such burden on commerce in perishable

agricultural commodities and to protect the public interest.

(2) Perishable agricultural commodities received by a commission

merchant, dealer, or broker in all transactions, and all

inventories of food or other products derived from perishable

agricultural commodities, and any receivables or proceeds from the

sale of such commodities or products, shall be held by such

commission merchant, dealer, or broker in trust for the benefit of

all unpaid suppliers or sellers of such commodities or agents

involved in the transaction, until full payment of the sums owing

in connection with such transactions has been received by such

unpaid suppliers, sellers, or agents. Payment shall not be

considered to have been made if the supplier, seller, or agent

receives a payment instrument which is dishonored. The provisions

of this subsection shall not apply to transactions between a

cooperative association, as defined in section 1141j(a) of title

12, and its members.

(3) The unpaid supplier, seller, or agent shall lose the benefits

of such trust unless such person has given written notice of intent

to preserve the benefits of the trust to the commission merchant,

dealer, or broker within thirty calendar days (i) after expiration

of the time prescribed by which payment must be made, as set forth

in regulations issued by the Secretary, (ii) after expiration of

such other time by which payment must be made, as the parties have

expressly agreed to in writing before entering into the

transaction, or (iii) after the time the supplier, seller, or agent

has received notice that the payment instrument promptly presented

for payment has been dishonored. The written notice to the

commission merchant, dealer, or broker shall set forth information

in sufficient detail to identify the transaction subject to the

trust. When the parties expressly agree to a payment time period

different from that established by the Secretary, a copy of any

such agreement shall be filed in the records of each party to the

transaction and the terms of payment shall be disclosed on

invoices, accountings, and other documents relating to the

transaction.

(4) In addition to the method of preserving the benefits of the

trust specified in paragraph (3), a licensee may use ordinary and

usual billing or invoice statements to provide notice of the

licensee's intent to preserve the trust. The bill or invoice

statement must include the information required by the last

sentence of paragraph (3) and contain on the face of the statement

the following: ''The perishable agricultural commodities listed on

this invoice are sold subject to the statutory trust authorized by

section 5(c) of the Perishable Agricultural Commodities Act, 1930

(7 U.S.C. 499e(c)). The seller of these commodities retains a trust

claim over these commodities, all inventories of food or other

products derived from these commodities, and any receivables or

proceeds from the sale of these commodities until full payment is

received.''.

(5) The several district courts of the United States are vested

with jurisdiction specifically to entertain (i) actions by trust

beneficiaries to enforce payment from the trust, and (ii) actions

by the Secretary to prevent and restrain dissipation of the trust.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 5, 46 Stat. 534; Aug. 20, 1937, ch.

719, Sec. 7, 50 Stat. 728; Pub. L. 98-273, Sec. 1, May 7, 1984, 98

Stat. 165; Pub. L. 102-237, title X, Sec. 1011(3), Dec. 13, 1991,

105 Stat. 1898; Pub. L. 104-48, Sec. 6, 8(b), Nov. 15, 1995, 109

Stat. 427, 429.)

-COD-

CODIFICATION

Section was formerly classified to section 555 of this title.

-MISC3-

AMENDMENTS

1995 - Subsec. (a). Pub. L. 104-48, Sec. 8(b), inserted

''(including any handling fee paid by the injured person or persons

under section 499f(a)(2) of this title)'' after ''damages''.

Subsec. (c)(3). Pub. L. 104-48, Sec. 6(a), (b), struck out ''and

has filed such notice with the Secretary'' before ''within thirty

calendar days'' in first sentence and inserted after first sentence

''The written notice to the commission merchant, dealer, or broker

shall set forth information in sufficient detail to identify the

transaction subject to the trust.''

Subsec. (c)(4), (5). Pub. L. 104-48, Sec. 6(c), added par. (4)

and redesignated former par. (4) as (5).

1991 - Subsec. (c)(2). Pub. L. 102-237 substituted '', as'' for

''(as'' before ''defined''.

1984 - Subsec. (c). Pub. L. 98-273 added subsec. (c).

1937 - Subsec. (a). Act Aug. 20, 1937, struck out ''paragraph

(1), (2), (3), or (4) of'' after ''provisions of''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 499b, 499f of this title.

-CITE-

7 USC Sec. 499f 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499f. Complaints, written notifications, and investigations

-STATUTE-

(a) Reparation complaints

(1) Petition; process

Any person complaining of any violation of any provision of

section 499b of this title by any commission merchant, dealer, or

broker may, at any time within nine months after the cause of

action accrues, apply to the Secretary by petition, which shall

briefly state the facts, whereupon, if, in the opinion of the

Secretary, the facts therein contained warrant such action, a

copy of the complaint thus made shall be forwarded by the

Secretary to the commission merchant, dealer, or broker, who

shall be called upon to satisfy the complaint, or to answer it in

writing, within a reasonable time to be prescribed by the

Secretary.

(2) Filing and handling fees

A person submitting a petition to the Secretary under paragraph

(1) shall include a filing fee of $60 per petition. If the

Secretary determines under paragraph (1) that the facts contained

in the petition warrant further action, the person or persons

submitting the petition shall submit to the Secretary a handling

fee of $300. The Secretary may not forward a copy of the

complaint to the commission merchant, dealer, or broker involved

until after the Secretary receives the required handling fee.

The Secretary shall deposit fees submitted under this paragraph

into the Perishable Agricultural Commodities Act Fund provided

for by section 499c(b) of this title. The Secretary may alter

the fees specified in this paragraph by rulemaking under section

553 of title 5.

(b) Disciplinary violations

Any officer or agency of any State or Territory having

jurisdiction over commission merchants, dealers, or brokers in such

State or Territory and any other interested person (other than an

employee of an agency of the Department of Agriculture

administering this chapter) may file, in accordance with rules

prescribed by the Secretary, a written notification of any alleged

violation of this chapter by any commission merchant, dealer, or

broker. In addition, any official certificates of the United

States Government or States or Territories of the United States and

trust notices filed pursuant to section 499e of this title shall

constitute written notification for the purposes of conducting an

investigation under subsection (c) of this section. The identity

of any person filing a written notification under this subsection

shall be considered to be confidential information. The identity

of such person, and any portion of the notification to the extent

that it would indicate the identity of such person, are

specifically exempt from disclosure under section 552 of title 5

(commonly known as the Freedom of Information Act), as provided in

subsection (b)(3) of such section.

(c) Investigation of complaints and notifications

(1) Commencing or expanding an investigation

If there appears to be, in the opinion of the Secretary,

reasonable grounds for investigating a complaint made under

subsection (a) of this section or a written notification made

under subsection (b) of this section, the Secretary shall

investigate such complaint or notification. In the course of the

investigation, if the Secretary determines that violations of

this chapter are indicated other than the alleged violations

specified in the complaint or notification that served as the

basis for the investigation, the Secretary may expand the

investigation to include such additional violations.

(2) Issuance of complaint by Secretary; process

In the opinion of the Secretary, if an investigation under this

subsection substantiates the existence of violations of this

chapter, the Secretary may cause a complaint to be issued. The

Secretary shall have the complaint served by registered mail or

certified mail or otherwise on the person concerned and afford

such person an opportunity for a hearing thereon before a duly

authorized examiner of the Secretary in any place in which the

subject of the complaint is engaged in business. However, in

complaints wherein the amount claimed as damages does not exceed

$30,000, a hearing need not be held and proof in support of the

complaint and in support of respondent's answer may be supplied

in the form of depositions or verified statements of fact.

(3) Special notification requirements for certain investigations

Whenever the Secretary initiates an investigation on the basis

of a written notification made under subsection (b) of this

section or expands such an investigation, the Secretary shall

promptly notify the subject of the investigation of the existence

of the investigation and the nature of the alleged violations of

this chapter to be investigated. Not later than 180 days after

providing the initial notification, the Secretary shall provide

the subject of the investigation with notice of the status of the

investigation, including whether the Secretary intends to issue a

complaint under paragraph (2), terminate the investigation, or

continue or expand the investigation. The Secretary shall

provide additional status reports at the request of the subject

of the investigation and shall promptly notify the subject of the

investigation whenever the Secretary terminates the

investigation.

(d) Decisions on complaints

After opportunity for hearing on complaints where the damages

claimed exceed the sum of $30,000 has been provided or waived and

on complaints where damages claimed do not exceed the sum of

$30,000 not requiring hearing as provided herein, the Secretary

shall determine whether or not the commission merchant, dealer, or

broker has violated any provision of section 499b of this title.

(e) Bond required for certain complaints

In case a complaint is made by a nonresident of the United

States, or by a resident of the United States to whom the claim of

a nonresident of the United States has been assigned, the

complainant shall be required, before any formal action is taken on

his complaint, to furnish a bond in double the amount of the claim

conditioned upon the payment of costs, including a reasonable

attorney's fee for the respondent if the respondent shall prevail,

and any reparation award that may be issued by the Secretary of

Agriculture against the complainant on any counter claim by

respondent: Provided, That the Secretary shall have authority to

waive the furnishing of a bond by a complainant who is a resident

of a country which permits the filing of a complaint by a resident

of the United States without the furnishing of a bond.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 6, 46 Stat. 534; Apr. 13, 1934, ch.

120, Sec. 8-10, 48 Stat. 586, 587; Aug. 20, 1937, ch. 719, Sec. 8,

9, 50 Stat. 728; Pub. L. 86-507, Sec. 1(4), June 11, 1960, 74 Stat.

200; Pub. L. 87-725, Sec. 8, Oct. 1, 1962, 76 Stat. 675; Pub. L.

92-231, Sec. 1, Feb. 15, 1972, 86 Stat. 38; Pub. L. 97-98, title

XI, Sec. 1115(c), Dec. 22, 1981, 95 Stat. 1270; Pub. L. 97-352,

Sec. 2, Oct. 18, 1982, 96 Stat. 1667; Pub. L. 102-237, title X,

Sec. 1011(4), Dec. 13, 1991, 105 Stat. 1898; Pub. L. 104-48, Sec.

7, 8(a), Nov. 15, 1995, 109 Stat. 428, 429.)

-COD-

CODIFICATION

Section was formerly classified to section 556 of this title.

-MISC3-

AMENDMENTS

1995 - Pub. L. 104-48, Sec. 7(d)(1), substituted ''Complaints,

written notifications, and investigations'' for ''Complaint and

investigation'' in section catchline.

Subsec. (a). Pub. L. 104-48, Sec. 8(a), inserted subsec. heading,

designated existing provisions as par. (1), inserted par. (1)

heading, and added par. (2).

Subsec. (b). Pub. L. 104-48, Sec. 7(a), inserted heading and

amended text generally. Prior to amendment, text read as follows:

''Any officer or agency of any State or Territory having

jurisdiction over commission merchants, dealers, or brokers in such

State or Territory and any employee of the United States Department

of Agriculture or any interested person may file, in accordance

with rules and regulations of the Secretary, a complaint of any

violation of any provision of this chapter by any commission

merchant, dealer, or broker and may request an investigation of

such complaint by the Secretary.''

Subsec. (c). Pub. L. 104-48, Sec. 7(b), inserted heading and

amended text generally. Prior to amendment, text read as follows:

''If there appear to be, in the opinion of the Secretary, any

reasonable grounds for investigating any complaint made under this

section, the Secretary shall investigate such complaint and may, if

in his opinion the facts warrant such action, have said complaint

served by registered mail or by certified mail or otherwise on the

person concerned and afford such person an opportunity for a

hearing thereon before a duly authorized examiner of the Secretary

in any place in which the said person is engaged in business:

Provided, That in complaints wherein the amount claimed as damages

does not exceed the sum of $15,000, a hearing need not be held and

proof in support of the complaint and in support of respondent's

answer may be supplied in the form of depositions or verified

statements of fact.''

Subsec. (d). Pub. L. 104-48, Sec. 7(c), (d)(2), inserted heading

and substituted ''$30,000'' for ''$15,000'' in two places in text.

Subsec. (e). Pub. L. 104-48, Sec. 7(d)(3), inserted heading.

1991 - Subsecs. (c), (d). Pub. L. 102-237 inserted a period at

end of subsec. (c) and substituted a period for semicolon at end of

subsec. (d).

1982 - Subsec. (e). Pub. L. 97-352 inserted ''or by a resident of

the United States to whom the claim of a nonresident of the United

States has been assigned,'' after ''In case a complaint is made by

a nonresident of the United States,''.

1981 - Subsecs. (c), (d). Pub. L. 97-98 substituted ''$15,000''

for ''$3,000''.

1972 - Subsec. (c). Pub. L. 92-231 substituted ''$3,000'' for

''$1,500''.

Subsec. (d). Pub. L. 92-231 substituted ''$3,000'' for ''$1,500''

wherever appearing.

1962 - Subsec. (c). Pub. L. 87-725 substituted ''$1,500'' for

''$500''.

Subsec. (d). Pub. L. 87-725 substituted ''$1,500'' for ''$500''

wherever appearing.

1960 - Subsec. (c). Pub. L. 86-507 inserted ''or by certified

mail'' after ''registered mail''.

1937 - Subsec. (b). Act Aug. 20, 1937, Sec. 8, substituted

''section 499b of this title'' for ''this chapter''.

Subsec. (e). Act Aug. 20, 1937, Sec. 9, inserted ''and any

reparation award that may be issued by the Secretary of Agriculture

against the complainant on any counter claim by respondent'' and

proviso.

1934 - Subsec. (c). Act Apr. 13, 1934, Sec. 8, inserted proviso.

Subsec. (d). Act Apr. 13, 1934, Sec. 9, substituted

''complaints'' for ''a complaint'' after ''on'' and inserted

''where damages claimed do not exceed the sum of $500 not requiring

hearing as provided herein'' after ''complaints''.

Subsec. (e). Act Apr. 13, 1934, Sec. 10, among other changes,

inserted ''formal'' before ''action''.

EFFECTIVE DATE OF 1982 AMENDMENT

Section 3 of Pub. L. 97-352 provided that: ''The amendment made

by section 2 (amending this section) shall not apply with respect

to complaints made under section 6(e) of the Perishable

Agricultural Commodities Act, 1930 (subsec. (e) of this section),

before the date of enactment of this Act (Oct. 18, 1982).''

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-98 effective Dec. 22, 1981, see section

1801 of Pub. L. 97-98, set out as an Effective Date note under

section 4301 of this title.

FILING AND HANDLING FEES DURING FISCAL YEARS 1995 AND 1996

Pub. L. 103-276, Sec. 1, July 5, 1994, 108 Stat. 1406, during

fiscal years 1995 and 1996, directed Secretary of Agriculture to

require filing fee of $60 per petition for petitions alleging

violation of section 499b of this title and handling fee of $300

for petitions that warrant further action, which handling fee was

to be included in determining amount of damages, with both fees to

be deposited into the Perishable Agricultural Commodities Act Fund,

prior to repeal by Pub. L. 104-48, Sec. 8(c), Nov. 15, 1995, 109

Stat. 429. See subsec. (a)(2) of this section.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 499e, 499g, 499h, 499m of

this title.

-CITE-

7 USC Sec. 499g 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499g. Reparation order

-STATUTE-

(a) Determination by Secretary of Agriculture of amount of damages;

order for payment

If after a hearing on a complaint made by any person under

section 499f of this title, or without hearing as provided in

subsections (c) and (d) of section 499f of this title, or upon

failure of the party complained against to answer a complaint duly

served within the time prescribed, or to appear at a hearing after

being duly notified, the Secretary determines that the commission

merchant, dealer, or broker has violated any provision of section

499b of this title, he shall, unless the offender has already made

reparation to the person complaining, determine the amount of

damage, if any, to which such person is entitled as a result of

such violation and shall make an order directing the offender to

pay to such person complaining such amount on or before the date

fixed in the order. The Secretary shall order any commission

merchant, dealer, or broker who is the losing party to pay the

prevailing party, as reparation or additional reparation,

reasonable fees and expenses incurred in connection with any such

hearing. If, after the respondent has filed his answer to the

complaint, it appears therein that the respondent has admitted

liability for a portion of the amount claimed in the complaint as

damages, the Secretary under such rules and regulations as he shall

prescribe, unless the respondent has already made reparation to the

person complaining, may issue an order directing the respondent to

pay to the complainant the undisputed amount on or before the date

fixed in the order, leaving the respondent's liability for the

disputed amount for subsequent determination. The remaining

disputed amount shall be determined in the same manner and under

the same procedure as it would have been determined if no order had

been issued by the Secretary with respect to the undisputed sum.

(b) Failure to comply with order of Secretary; suit to enforce

liability; order as evidence; costs and fees

If any commission merchant, dealer, or broker does not pay the

reparation award within the time specified in the Secretary's

order, the complainant, or any person for whose benefit such order

was made, may within three years of the date of the order file in

the district court of the United States for the district in which

he resides or in which is located the principal place of business

of the commission merchant, dealer, or broker, or in any State

court having general jurisdiction of the parties, a petition

setting forth briefly the causes for which he claims damages and

the order of the Secretary in the premises. The orders, writs, and

processes of the district courts may in these cases run, be served,

and be returnable anywhere in the United States. Such suit in the

district court shall proceed in all respects like other civil suits

for damages, except that the findings and orders of the Secretary

shall be prima-facie evidence of the facts therein stated, and the

petitioner shall not be liable for costs in the district court, nor

for costs at any subsequent state of the proceedings, unless they

accrue upon his appeal. If the petitioner finally prevails, he

shall be allowed a reasonable attorney's fee, to be taxed and

collected as a part of the costs of the suit.

(c) Appeal from reparation order; proceedings

Either party adversely affected by the entry of a reparation

order by the Secretary may, within thirty days from and after the

date of such order, appeal therefrom to the district court of the

United States for the district in which said hearing was held:

Provided, That in cases handled without a hearing in accordance

with subsections (c) and (d) of section 499f of this title or in

which a hearing has been waived by agreement of the parties, appeal

shall be to the district court of the United States for the

district in which the party complained against is located. Such

appeal shall be perfected by the filing with the clerk of said

court a notice of appeal, together with a petition in duplicate

which shall recite prior proceedings before the Secretary and shall

state the grounds upon which the petitioner relies to defeat the

right of the adverse party to recover the damages claimed, with

proof of service thereof upon the adverse party. Such appeal shall

not be effective unless within thirty days from and after the date

of the reparation order the appellant also files with the clerk a

bond in double the amount of the reparation awarded against the

appellant conditioned upon the payment of the judgment entered by

the court, plus interest and costs, including a reasonable

attorney's fee for the appellee, if the appellee shall prevail.

Such bond shall be in the form of cash, negotiable securities

having a market value at least equivalent to the amount of bond

prescribed, or the undertaking of a surety company on the approved

list of sureties issued by the Treasury Department of the United

States. The clerk of court shall immediately forward a copy thereof

to the Secretary of Agriculture, who shall forthwith prepare,

certify, and file in said court a true copy of the Secretary's

decision, findings of fact, conclusions, and order in said case,

together with copies of the pleadings upon which the case was heard

and submitted to the Secretary. Such suit in the district court

shall be a trial de novo and shall proceed in all respects like

other civil suits for damages, except that the findings of fact and

order or orders of the Secretary shall be prima-facie evidence of

the facts therein stated. Appellee shall not be liable for costs

in said court and if appellee prevails he shall be allowed a

reasonable attorney's fee to be taxed and collected as a part of

his costs. Such petition and pleadings certified by the Secretary

upon which decision was made by him shall upon filing in the

district court constitute the pleadings upon which said trial de

novo shall proceed subject to any amendment allowed in that court.

(d) Suspension of license for failure to obey reparation order or

appeal

Unless the licensee against whom a reparation order has been

issued shows to the satisfaction of the Secretary within five days

from the expiration of the period allowed for compliance with such

order that he has either taken an appeal as herein authorized or

has made payment in full as required by such order his license

shall be suspended automatically at the expiration of such five-day

period until he shows to the satisfaction of the Secretary that he

has paid the amount therein specified with interest thereon to date

of payment: Provided, That if on appeal the appellee prevails or if

the appeal is dismissed the automatic suspension of license shall

become effective at the expiration of thirty days from the date of

the judgment on the appeal, but if the judgment is stayed by a

court of competent jurisdiction the suspension shall become

effective ten days after the expiration of such stay, unless prior

thereto the judgment of the court has been satisfied.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 7, 46 Stat. 534; Apr. 13, 1934, ch.

120, Sec. 11-13, 48 Stat. 587, 588; June 19, 1936, ch. 602, Sec. 3,

49 Stat. 1534; Aug. 20, 1937, ch. 719, Sec. 10, 50 Stat. 728; June

23, 1938, ch. 599, 52 Stat. 953; May 14, 1940, ch. 196, 54 Stat.

214; Pub. L. 87-725, Sec. 9, 10, Oct. 1, 1962, 76 Stat. 675; Pub.

L. 92-231, Sec. 2, Feb. 15, 1972, 86 Stat. 38; Pub. L. 102-237,

title X, Sec. 1011(5), Dec. 13, 1991, 105 Stat. 1898.)

-COD-

CODIFICATION

Section was formerly classified to section 557 of this title.

-MISC3-

AMENDMENTS

1991 - Subsecs. (a) to (c). Pub. L. 102-237 substituted periods

for semicolons at end of subsecs. (a) to (c).

1972 - Subsec. (a). Pub. L. 92-231 directed the Secretary to

order commission merchants, dealers, or brokers who are the losing

party to pay the prevailing party, as reparation or additional

reparation, reasonable fees and expenses incurred in connection

with hearings.

1962 - Subsec. (c). Pub. L. 87-725, Sec. 9, limited time for

filing the bond to within 30 days from and after the date of the

reparation order, and required such bond to be in cash, negotiable

securities having a market value of at least equivalent to the

amount of bond prescribed or the undertaking of a surety company on

the approved list of sureties issued by the Treasury Department.

Subsec. (d). Pub. L. 87-725, Sec. 10, lengthened period upon the

expiration of which the license is suspended from ten to thirty

days, and provided that if the judgment is stayed by a court of

competent jurisdiction the suspension becomes effective ten days

after the expiration of such stay.

1940 - Subsec. (c). Act May 14, 1940, inserted proviso in first

sentence.

1938 - Subsec. (a). Act June 23, 1938, inserted last two

sentences.

1937 - Subsec. (a). Act Aug. 20, 1937, among other changes,

inserted ''or without hearing as provided in section 499f of this

title, paragraphs (c) and (d), or upon failure of the party

complained against to answer a complaint duly served within the

time prescribed, or to appear at a hearing after being duly

notified'' after ''section 499f''.

Subsec. (b). Act Aug. 20, 1937, among other changes, substituted

''pay the reparation award'' for ''comply with an order for the

payment of money''.

Subsec. (c). Act Aug. 20, 1937, inserted ''together with a bond

in double the amount of the reparation award conditioned upon the

payment of the judgment entered by the court plus interest and

costs, including a reasonable attorney's fee for the appellee, if

the appellee shall prevail'' after ''upon adverse party'' and

struck out proviso in first sentence and ''by registered mail''

after ''adverse party''.

Subsec. (d). Act Aug. 20, 1937, inserted proviso.

1936 - Subsec. (c). Act June 19, 1936, inserted proviso in first

sentence and ''by registered mail'' after ''adverse party''.

1934 - Subsec. (b). Act Apr. 13, 1934, Sec. 11, inserted after

first sentence ''The orders, writs and processes of the district

courts may in these cases run, be served, and be returnable

anywhere in the United States.''

Subsecs. (c), (d). Act Apr. 13, 1934, Sec. 12, 13, added subsecs.

(c) and (d).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 499d, 499h, 499m of this

title; title 28 section 2342.

-CITE-

7 USC Sec. 499h 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499h. Grounds for suspension or revocation of license

-STATUTE-

(a) Authority of Secretary

Whenever (1) the Secretary determines, as provided in section

499f of this title, that any commission merchant, dealer, or broker

has violated any of the provisions of section 499b of this title,

or (2) any commission merchant, dealer, or broker has been found

guilty in a Federal court of having violated section 499n(b) of

this title, the Secretary may publish the facts and circumstances

of such violation and/or, by order, suspend the license of such

offender for a period not to exceed ninety days, except that, if

the violation is flagrant or repeated, the Secretary may, by order,

revoke the license of the offender.

(b) Unlawful employment of certain persons; restrictions; bond

assuring compliance; approval of employment without bond;

change in amount of bond; payment of increased amount;

penalties

Except with the approval of the Secretary, no licensee shall

employ any person, or any person who is or has been responsibly

connected with any person -

(1) whose license has been revoked or is currently suspended by

order of the Secretary;

(2) who has been found after notice and opportunity for hearing

to have committed any flagrant or repeated violation of section

499b of this title, but this provision shall not apply to any

case in which the license of the person found to have committed

such violation was suspended and the suspension period has

expired or is not in effect; or

(3) against whom there is an unpaid reparation award issued

within two years, subject to his right of appeal under section

499g(c) of this title.

The Secretary may approve such employment at any time following

nonpayment of a reparation award, or after one year following the

revocation or finding of flagrant or repeated violation of section

499b of this title, if the licensee furnishes and maintains a

surety bond in form and amount satisfactory to the Secretary as

assurance that such licensee's business will be conducted in

accordance with this chapter and that the licensee will pay all

reparation awards, subject to its right of appeal under section

499g(c) of this title, which may be issued against it in connection

with transactions occurring within four years following the

approval. The Secretary may approve employment without a surety

bond after the expiration of two years from the effective date of

the applicable disciplinary order. The Secretary, based on changes

in the nature and volume of business conducted by the licensee, may

require an increase or authorize a reduction in the amount of the

bond. A licensee who is notified by the Secretary to provide a

bond in an increased amount shall do so within a reasonable time to

be specified by the Secretary, and if the licensee fails to do so

the approval of employment shall automatically terminate. The

Secretary may, after thirty days notice and an opportunity for a

hearing, suspend or revoke the license of any licensee who, after

the date given in such notice, continues to employ any person in

violation of this section. The Secretary may extend the period of

employment sanction as to a responsibly connected person for an

additional one-year period upon the determination that the person

has been unlawfully employed as provided in this subsection.

(c) Fraud in procurement

If, after a license shall have been issued to an applicant, the

Secretary believes that the license was obtained through a false or

misleading statement in the application therefor or through a

misrepresentation, concealment, or withholding of facts respecting

any violation of this chapter by any officer, agent, or employee,

he may, after thirty days' notice and an opportunity for a hearing,

revoke said license, whereupon no license shall be issued to said

applicant or any applicant in which the person responsible for such

false or misleading statement or misrepresentation, concealment, or

withholding of facts is financially interested, except under the

conditions set forth in section 499d(b) of this title.

(d) Injunction

In addition to being subject to the penalties provided by section

499c(a) of this title, any commission merchant, dealer, or broker

who engages in or operates such business without a valid and

effective license from the Secretary shall be liable to be

proceeded against in any court of competent jurisdiction in a suit

by the United States for an injunction to restrain such defendant

from further continuing so to engage in or operate such business,

and, if the court shall find that the defendant is continuing to

engage in such business without a valid and effective license, the

court shall issue an injunction to restrain such defendant from

continuing to engage in or to operate such business without such

license.

(e) Alternative civil penalties

In lieu of suspending or revoking a license under this section

when the Secretary determines, as provided by section 499f of this

title, that a commission merchant, dealer, or broker has violated

section 499b of this title or subsection (b) of this section, the

Secretary may assess a civil penalty not to exceed $2,000 for each

violative transaction or each day the violation continues. In

assessing the amount of a penalty under this subsection, the

Secretary shall give due consideration to the size of the business,

the number of employees, and the seriousness, nature, and amount of

the violation. Amounts collected under this subsection shall be

deposited in the Treasury of the United States as miscellaneous

receipts.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 8, 46 Stat. 535; Apr. 13, 1934, ch.

120, Sec. 14, 48 Stat. 588; Aug. 20, 1937, ch. 719, Sec. 11, 50

Stat. 730; July 30, 1956, ch. 786, Sec. 5, 70 Stat. 727; Pub. L.

87-725, Sec. 11, Oct. 1, 1962, 76 Stat. 675; Pub. L. 102-237, title

X, Sec. 1011(6), Dec. 13, 1991, 105 Stat. 1898; Pub. L. 104-48,

Sec. 11, 12(b), Nov. 15, 1995, 109 Stat. 430, 431.)

-COD-

CODIFICATION

Section was formerly classified to section 558 of this title.

-MISC3-

AMENDMENTS

1995 - Subsec. (b). Pub. L. 104-48, Sec. 12(b), inserted at end

''The Secretary may extend the period of employment sanction as to

a responsibly connected person for an additional one-year period

upon the determination that the person has been unlawfully employed

as provided in this subsection.''

Subsec. (e). Pub. L. 104-48, Sec. 11, added subsec. (e).

1991 - Subsec. (a). Pub. L. 102-237 redesignated cls. (a) and (b)

as (1) and (2), respectively, and substituted a period for

semicolon at end.

1962 - Subsec. (b). Pub. L. 87-725 amended subsec. (b) generally,

and among other changes, provided that any licensee hiring any

person without the Secretary's approval in violation of this

section, after notice and opportunity for hearing, may have his

license suspended or revoked, that the restrictions shall apply to

persons found, after notice and opportunity for hearing, to have

committed any flagrant or repeated violation of section 499b of

this title, but not where such violator's license was suspended and

the suspension has expired or is not in effect, and shall also

apply to persons against whom there is a unpaid reparation award

issued within two years, subject to appeal under section 499g(c) of

this title, permitted the Secretary to approve employment at any

time following nonpayment of a reparation award, or after one year

following the revocation or finding of flagrant and repeated

violation of section 499b of this title, if the licensee furnishes

a bond as assurance that his business will be conducted in

accordance with this chapter and he will pay all reparation awards

issued within four years following approval, subject to appeal

under section 499g(c) of this title, or without bond after two

years from the effective date of the disciplinary order, authorized

the Secretary to increase or decrease the amount of bond, and

required licensees notified of an increased bond to provide such in

a reasonable time or the approval of employment will terminate.

1956 - Subsec. (b). Act July 30, 1956, provided for suspension of

licenses, and restricted authority to permit employment to those

cases where licenses have been revoked or suspended for failure to

pay a reparation award.

1937 - Subsec. (a). Act Aug. 20, 1937, among other changes,

inserted cl. (a) designation and inserted ''or (b) any commission

merchant, dealer, or broker has been found guilty in a Federal

court of having violated section 499n(b) of this title'' after

''section 499b of this title''.

Subsec. (b). Act Aug. 20, 1937, amended subsec. (b) generally.

Subsecs. (c), (d). Act Aug. 20, 1937, added subsecs. (c) and (d).

1934 - Subsec. (b). Act Apr. 13, 1934, added subsec. (b).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 499d of this title.

-CITE-

7 USC Sec. 499i 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499i. Accounts, records, and memoranda; duty of licensees to

keep; contents; suspension of license for violation of duty

-STATUTE-

Every commission merchant, dealer, and broker shall keep such

accounts, records, and memoranda as fully and correctly disclose

all transactions involved in his business, including the true

ownership of such business by stockholding or otherwise. If such

accounts, records, and memoranda are not so kept, the Secretary may

publish the facts and circumstances and/or, by order, suspend the

license of the offender for a period not to exceed ninety days.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 9, 46 Stat. 535.)

-COD-

CODIFICATION

Section was formerly classified to section 559 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 499m of this title.

-CITE-

7 USC Sec. 499j 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499j. Orders; effective date; continuance in force;

suspension, modification and setting aside; penalty

-STATUTE-

Any order of the Secretary under this chapter other than an order

for the payment of money shall take effect within such reasonable

time, not less than ten days, as is prescribed in the order, and

shall continue in force until his further order, or for a specified

period of time, accordingly as it is prescribed in the order,

unless such order is suspended, modified, or set aside by the

Secretary or is suspended, modified, or set aside by a court of

competent jurisdiction. Any such order of the Secretary, if

regularly made, shall be final, unless before the date prescribed

for its taking effect application is made to a court of competent

jurisdiction by the commission merchant, dealer, or broker against

whom such order is directed to have such order set aside or its

enforcement, operation, or execution suspended or restrained.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 10, 46 Stat. 535.)

-COD-

CODIFICATION

Section was formerly classified to section 560 of this title.

-CITE-

7 USC Sec. 499k 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499k. Injunctions; application of injunction laws governing

orders of Interstate Commerce Commission

-STATUTE-

For the purposes of this chapter the provisions of all laws

relating to the suspending or restraining of the enforcement,

operation, or execution, or the setting-aside, in whole or in part,

of the orders of the Interstate Commerce Commission are made

applicable to orders of the Secretary under this chapter and to any

person subject to the provisions of this chapter.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 11, 46 Stat. 535.)

-COD-

CODIFICATION

Section was formerly classified to section 561 of this title.

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

-CITE-

7 USC Sec. 499l 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499l. Violations; report to Attorney General; proceedings;

costs

-STATUTE-

The Secretary may report any violation of this chapter for which

a civil penalty is provided to the Attorney General of the United

States, who shall cause appropriate proceedings to be commenced and

prosecuted in the proper courts of the United States without

delay. The costs and expenses of such proceedings shall be paid

out of the appropriation for the expenses of the courts of the

United States.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 12, 46 Stat. 536.)

-COD-

CODIFICATION

Section was formerly classified to section 562 of this title.

-CITE-

7 USC Sec. 499m 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499m. Complaints; procedure, penalties, etc.

-STATUTE-

(a) Investigation by Secretary of Agriculture; inspection of

accounts, records, and memoranda; penalty for refusing

inspection

The Secretary or his duly authorized agents shall have the right

to inspect such accounts, records, and memoranda of any commission

merchant, dealer, or broker as may be material (1) in the

investigation of complaints under this chapter, or (2) to the

determination of ownership, control, packer, or State, country, or

region of origin in connection with commodity inspections, or (3)

to ascertain whether section 499i of this title is being complied

with, and if any such commission merchant, dealer, or broker

refuses to permit such inspection, the Secretary may publish the

facts and circumstances and/or, by order, suspend the license of

the offender until permission to make such inspection is given.

The Secretary or his duly authorized agents shall have the right to

inspect any lot of any perishable agricultural commodity covered by

this chapter, and if any commission merchant, dealer, or broker

having ownership of or control over such lot fails or refuses to

authorize or allow such inspection, the Secretary may, after thirty

days' notice and an opportunity for a hearing, publish the facts

and circumstances and/or, by order, suspend the license of the

offender for a period not to exceed ninety days.

(b) Inspection of records; surety bond; suspension of license

The Secretary or the Secretary's duly authorized agents, in order

to insure that the prompt payment provision of section 499b(4) of

this title is being complied with, shall from time to time inspect

the accounts, records, and memoranda of any commission merchant,

dealer, or broker determined in a formal disciplinary proceeding

under section 499f(b) of this title to have violated such

provision. The Secretary may also require that any such commission

merchant, dealer, or broker furnish, maintain, and from time to

time adjust a surety bond in form and amount satisfactory to the

Secretary as assurance that such commission merchant's, dealer's,

or broker's business will be conducted in accordance with this

chapter and that such commission merchant, dealer, or broker will

pay all reparation awards, subject to its right of appeal under

section 499g(c) of this title: Provided, That if such surety bond

is furnished, maintained, and adjusted as required by the

Secretary, the Secretary shall not thereafter inspect the accounts,

records, and memoranda of such commission merchant, dealer, or

broker under this subsection more than once a year. If any such

commission merchant, dealer, or broker refuses to permit such

inspection or fails or refuses to furnish, maintain, or adjust such

surety bond, the Secretary may publish the facts and circumstances

and, by order, suspend the license of the offender until permission

to make such inspection is given or such surety bond is furnished,

maintained, or adjusted.

(c) Hearings; subpoenas; oaths; witnesses; evidence

The Secretary, or any officer or employee designated by him for

such purpose, may hold hearings, sign and issue subpoenas,

administer oaths, examine witnesses, receive evidence, and require

by subpoena the attendance and testimony of witnesses and the

production of such accounts, records, and memoranda as may be

material for the determination of any complaint under this chapter.

(d) Disobedience to subpoenas; remedy; contempt

In case of disobedience to a subpoena, the Secretary or any of

his examiners may invoke the aid of any court of the United States

in requiring the attendance and testimony of witnesses and the

production of accounts, records, and memoranda. Any district court

of the United States within the jurisdiction of which any hearing

is carried on may, in case of contumacy or refusal to obey a

subpoena issued to any person, issue an order requiring the person

to appear before the Secretary or his examiner or to produce

accounts, records, and memoranda if so ordered, or to give evidence

touching any matter pertinent to any complaint; and any failure to

obey such order of the court shall be punished by the court as a

contempt thereof.

(e) Depositions; production of accounts, records and memoranda

The Secretary may order testimony to be taken by deposition in

any proceeding or investigation or incident to any complaint

pending under this chapter at any stage thereof. Such depositions

may be taken before any person designated by the Secretary and

having power to administer oaths. Such testimony shall be reduced

to writing by the person taking the deposition or under his

direction and shall then be subscribed by the deponent. Any person

may be compelled to appear and depose and to produce accounts,

records, and memoranda in the same manner as witnesses may be

compelled to appear and testify and produce accounts, records, and

memoranda before the Secretary or any of his examiners.

(f) Fees and mileage of witnesses

Witnesses summoned before the Secretary or any officer or

employee designated by him shall be paid the same fees and mileage

that are paid witnesses in the courts of the United States, and

witnesses whose depositions are taken and the persons taking the

same shall severally be entitled to the same fees as are paid for

like service in the courts of the United States.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 13, 46 Stat. 536; July 30, 1956, ch.

786, Sec. 6, 70 Stat. 727; Pub. L. 91-452, title II, Sec. 205, Oct.

15, 1970, 84 Stat. 928; Pub. L. 95-562, Sec. 3, Nov. 1, 1978, 92

Stat. 2381.)

-COD-

CODIFICATION

Section was formerly classified to section 563 of this title.

-MISC3-

AMENDMENTS

1978 - Subsecs. (b) to (f). Pub. L. 95-562 added subsec. (b) and

redesignated former subsecs. (b) to (e) as (c) to (f),

respectively.

1970 - Subsec. (f). Pub. L. 91-452 struck out subsec. (f) which

related to immunity from prosecution of any natural person

compelled to testify or produce evidence, documentary or otherwise,

after claiming his privilege against self-incrimination.

1956 - Subsec. (a). Act July 30, 1956, permitted inspection of

accounts, records and memoranda to determine ownership, control,

packer, or State, country, or region of origin in connection with

commodity inspection, and to ascertain whether section 499i of this

title is being complied with, and to permit inspection of lots of

perishable agricultural commodities.

EFFECTIVE DATE OF 1970 AMENDMENT

Amendment by Pub. L. 91-452 effective on sixtieth day following

Oct. 15, 1970, and not to affect any immunity to which any

individual is entitled under this section by reason of any

testimony given before sixtieth day following Oct. 15, 1970, see

section 260 of Pub. L. 91-452, set out as an Effective Date;

Savings Provision note under section 6001 of Title 18, Crimes and

Criminal Procedure.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2023 of this title.

-CITE-

7 USC Sec. 499n 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499n. Inspection of perishable agricultural commodities

-STATUTE-

(a) Employment of inspectors; fees and expenses; inspection

certificate as evidence

The Secretary is authorized, independently and in cooperation

with other branches of the Government, State, or municipal agencies

and/or any person, whether operating in one or more jurisdictions,

to employ and/or license inspectors to inspect and certify, without

regard to the filing of a complaint under this chapter, to any

interested person the class, quality, and/or condition of any lot

of any perishable agricultural commodity when offered for

interstate or foreign shipment or when received at places where the

Secretary shall find it practicable to provide such service, under

such rules and regulations as he may prescribe, including the

payment of such fees and expenses as will be reasonable and as

nearly as may be to cover the cost for the service rendered:

Provided, That fees for inspections made by a licensed inspector,

less the percentage thereof which he is allowed by the terms of his

contract of employment with the Secretary as compensation for his

services, shall be deposited into the Treasury of the United States

as miscellaneous receipts; and fees for inspections made by an

inspector acting under a cooperative agreement with a State,

municipality, or other person shall be disposed of in accordance

with the terms of such agreement: Provided further, That expenses

for travel and subsistence incurred by inspectors shall be paid by

the applicant for inspection to the United States Department of

Agriculture to be credited to the appropriation for carrying out

the purposes of this chapter: And provided further, That official

inspection certificates for fresh fruits and vegetables issued by

the Secretary of Agriculture pursuant to any law shall be received

by all officers and all courts of the United States, in all

proceedings under this chapter, and in all transactions upon

contract markets under Commodities Exchange Act (7 U.S.C. 1 et

seq.), as prima-facie evidence of the truth of the statements

therein contained.

(b) Issuance of fraudulent certificates; penalties

Whoever shall falsely make, issue, alter, forge, or counterfeit,

or cause or procure to be falsely made, issued, altered, forged, or

counterfeited, or willingly aid, cause, procure or assist in, or be

a party to the false making, issuing, altering, forging, or

counterfeiting of any certificate of inspection issued under

authority of this chapter, sections 491, 493 to 497 of this title,

or any Act making appropriations for the Department of Agriculture;

or shall utter or publish as true or cause to be uttered or

published as true any such false, forged, altered, or counterfeited

certificate, for a fraudulent purpose, shall be guilty of a

misdemeanor and upon conviction shall be punished by a fine of not

more than $500 or by imprisonment for a period of not more than one

year, or both, at the discretion of the court.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 14, 46 Stat. 537; Apr. 13, 1934, ch.

120, Sec. 15, 48 Stat. 588; Aug. 20, 1937, ch. 719, Sec. 12, 50

Stat. 730; Pub. L. 102-237, title X, Sec. 1011(7), Dec. 13, 1991,

105 Stat. 1898.)

-REFTEXT-

REFERENCES IN TEXT

The Commodities Exchange Act, referred to in subsec. (a),

probably means act Sept. 21, 1922, ch. 369, 42 Stat. 998, as

amended, known as the Commodity Exchange Act, which is classified

generally to chapter 1 (Sec. 1 et seq.) of this title. For

complete classification of this Act to the Code, see section 1 of

this title and Tables.

-COD-

CODIFICATION

Section was formerly classified to section 564 of this title.

-MISC3-

AMENDMENTS

1991 - Subsec. (a). Pub. L. 102-237 substituted ''(7 U.S.C. 1 et

seq.)'' for ''(7 U.S.C., Supp. 2, secs. 1 to 17(a))'' and a period

for semicolon at end.

1937 - Act Aug. 20, 1937, designated existing provisions as

subsec. (a) and, among other changes inserted ''That official

inspection certificates for fresh fruits and vegetables issued by

the Secretary of Agriculture pursuant to any law shall be received

by all officers and all courts of the United States, in all

proceedings under this chapter, and in all transactions upon

contract markets under Commodities Exchange Act'' before ''as prima

facie'' in third proviso, and added subsec. (b).

1934 - Act Apr. 13, 1934, inserted ''and in all proceedings under

this chapter'' after ''United States'' in third proviso.

POTATO INSPECTION

Pub. L. 99-198, title XVII, Sec. 1704, Dec. 23, 1985, 99 Stat.

1635, as amended by Pub. L. 104-66, title I, Sec. 1011(g), Dec. 21,

1995, 109 Stat. 710, provided that: ''The Secretary of Agriculture

shall perform random spot checks of potatoes entering through ports

of entry in the northeastern United States.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 499h of this title; title

42 section 418.

-CITE-

7 USC Sec. 499o 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499o. Rules, regulations, and orders; appointment, removal,

and compensation of officers and employees; expenditures;

authorization of appropriations; abrogation of inconsistent

statutes

-STATUTE-

The Secretary may make such rules, regulations, and orders as may

be necessary to carry out the provisions of this chapter, and may

cooperate with any department or agency of the Government, any

State, Territory, District, or possession, or department, agency,

or political subdivision thereof, or any person; and shall have the

power to appoint, remove, and fix the compensation of such officers

and employees not in conflict with existing law, and make such

expenditures for rent outside the District of Columbia, printing,

binding, telegrams, telephones, lawbooks, books of reference,

publications, furniture, stationery, office equipment, travel, and

other supplies and expenses, including reporting services, as shall

be necessary to the administration of this chapter in the District

of Columbia and elsewhere, from the Perishable Agricultural

Commodities Act fund provided for by section 499c(b) of this title

and any supplements to such fund, and as may be appropriated for by

Congress; and there is authorized to be appropriated, out of any

money in the Treasury not otherwise appropriated, such sums as may

be necessary for such purposes. This chapter shall not abrogate

nor nullify any other statute, whether State or Federal, dealing

with the same subjects of this chapter; but it is intended that all

such statutes shall remain in full force and effect except insofar

only as they are inconsistent herewith or repugnant hereto.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 15, 46 Stat. 537; June 15, 1950, ch.

254, Sec. 3, 64 Stat. 218.)

-COD-

CODIFICATION

Section was formerly classified to section 565 of this title.

-MISC3-

AMENDMENTS

1950 - Act June 15, 1950, provided for payment of administrative

costs out of fund and any supplements thereto as well as by

Congressional appropriations.

-CITE-

7 USC Sec. 499p 01/06/03

-EXPCITE-

TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499p. Liability of licensees for acts and omissions of agents

-STATUTE-

In construing and enforcing the provisions of this chapter, the

act, omission, or failure of any agent, officer, or other person

acting for or employed by any commission merchant, dealer, or

broker, within the scope of his employment or office, shall in

every case be deemed the act, omission, or failure of such

commission merchant, dealer, or broker as that of such agent,

officer, or other person.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 16, 46 Stat. 538.)

-COD-

CODIFICATION

Section was formerly classified to section 566 of this title.

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7 USC Sec. 499q 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499q. Separability

-STATUTE-

If any provision of this chapter or the application thereof to

any person or circumstances is held invalid, the validity of the

remainder of the chapter and of the application of such provision

to other persons and circumstances shall not be affected thereby.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 17, 46 Stat. 538.)

-COD-

CODIFICATION

Section was formerly classified to section 567 of this title.

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7 USC Sec. 499r 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499r. Repealed. Pub. L. 102-237, title X, Sec. 1011(8), Dec.

13, 1991, 105 Stat. 1898

-MISC1-

Section, act June 10, 1930, ch. 436, Sec. 18, 46 Stat. 538,

provided for short title of chapter. See section 499a(a) of this

title.

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7 USC Sec. 499s 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499s. Depositing appropriations in fund

-STATUTE-

Any unexpended balances of appropriations for the current fiscal

year, and any subsequent appropriations, made to carry out the Acts

referred to in section 499c(b) of this title, may be deposited in

the Perishable Agricultural Commodities Act fund.

-SOURCE-

(June 10, 1930, ch. 436, Sec. 19, as added June 15, 1950, ch. 254,

Sec. 4, 64 Stat. 218.)

-REFTEXT-

REFERENCES IN TEXT

The Acts referred to in section 499c(b) of this title, referred

to in text, mean the Perishable Agricultural Commodities Act, 1930,

which was translated to read ''this chapter'' and the Act to

prevent the destruction or dumping of farm produce, act Mar. 3,

1927, ch. 309, 44 Stat. 1355, which is classified to chapter 20

(Sec. 491 et seq.) of this title.

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7 USC Sec. 499t 01/06/03

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TITLE 7 - AGRICULTURE

CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-

Sec. 499t. Omitted

-COD-

CODIFICATION

Section, act June 10, 1930, ch. 436, Sec. 20, as added Aug. 22,

1988, Pub. L. 100-414, Sec. 2, 102 Stat. 1102, established

Perishable Agricultural Commodities Act Industry Advisory

Committee, provided for its membership, compensation, etc.,

directed advisory committee to review Perishable Agricultural

Commodities Act program and to make findings and recommendations to

Congress and Secretary of Agriculture with respect to future

operations of program, with an interim report not later than Sept.

30, 1989, and a final report not later than May 1, 1990, containing

results of its review and recommendations, and provided that

advisory committee cease to exist on date of its final report.

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