-CITE-
    7 USC CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES     01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-
             CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES         

-MISC1-
    Sec.                                                     
    499a.       Short title and definitions.                          
    499b.       Unfair conduct.                                       
    499b-1.     Products produced in distinct geographic areas.       
    499c.       Licenses.                                             
    499d.       Issuance of license.                                  
    499e.       Liability to persons injured.                         
    499f.       Complaints, written notifications, and investigations.
    499g.       Reparation order.                                     
    499h.       Grounds for suspension or revocation of license.      
    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.                
    499n.       Inspection of perishable agricultural commodities.    
    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       Repealed.                                             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.                                              

-End-



-CITE-
    7 USC Sec. 499a                                             01/03/2007

-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, Secs. 1, 2, 54 Stat. 696; Pub. L. 87-
    725, Secs. 1, 2, Oct. 1, 1962, 76 Stat. 673; Pub. L. 91-107, Secs.
    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, Secs. 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.


-MISC1-
                                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, Secs. 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 (Secs. 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.

-End-



-CITE-
    7 USC Sec. 499b                                             01/03/2007

-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, Secs. 2, 3, 48 Stat. 585; June 19, 1936, ch. 602, Sec. 1, 49
    Stat. 1533; Aug. 20, 1937, ch. 719, Secs. 2-4, 50 Stat. 725, 726;
    June 29, 1940, ch. 456, Secs. 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, Secs. 9(b), 10, Nov. 15, 1995,
    109 Stat. 430.)

-COD-
                               CODIFICATION                           
      Section was formerly classified to section 552 of this title.


-MISC1-
                                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, Secs. 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".

-End-



-CITE-
    7 USC Sec. 499b-1                                           01/03/2007

-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)) -
      (!1)

        (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.

-FOOTNOTE-               

    (!1) See References in Text note below.


-End-



-CITE-
    7 USC Sec. 499c                                             01/03/2007

-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, Secs. 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, Secs. 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.


-MISC1-
                                AMENDMENTS                            
      1995 - Pub. L. 104-48, Sec. 3(b)(1), reenacted section catchline
    without change.
      Subsec. (a). Pub. L. 104-48, Secs. 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, Secs. 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.

-End-



-CITE-
    7 USC Sec. 499d                                             01/03/2007

-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, Secs. 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,
    Secs. 2(b), 3, 4, 70 Stat. 726; Pub. L. 87-725, Secs. 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, Secs. 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.


-MISC1-
                                AMENDMENTS                            
      1995 - Subsec. (a). Pub. L. 104-48, Secs. 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, Secs. 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.

-End-



-CITE-
    7 USC Sec. 499e                                             01/03/2007

-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, Secs. 6, 8(b), Nov. 15, 1995, 109
    Stat. 427, 429.)

-COD-
                               CODIFICATION                           
      Section was formerly classified to section 555 of this title.


-MISC1-
                                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".

-End-



-CITE-
    7 USC Sec. 499f                                             01/03/2007

-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, Secs. 8-10, 48 Stat. 586, 587; Aug. 20, 1937, ch. 719, Secs.
    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, Secs.
    7, 8(a), Nov. 15, 1995, 109 Stat. 428, 429.)

-COD-
                               CODIFICATION                           
      Section was formerly classified to section 556 of this title.


-MISC1-
                                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.

-End-



-CITE-
    7 USC Sec. 499g                                             01/03/2007

-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, Secs. 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, Secs. 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.


-MISC1-
                                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, Secs. 12, 13, added
    subsecs. (c) and (d).

-End-



-CITE-
    7 USC Sec. 499h                                             01/03/2007

-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,
    Secs. 11, 12(b), Nov. 15, 1995, 109 Stat. 430, 431.)

-COD-
                               CODIFICATION                           
      Section was formerly classified to section 558 of this title.


-MISC1-
                                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).

-End-



-CITE-
    7 USC Sec. 499i                                             01/03/2007

-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.

-End-



-CITE-
    7 USC Sec. 499j                                             01/03/2007

-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.

-End-



-CITE-
    7 USC Sec. 499k                                             01/03/2007

-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.

-End-



-CITE-
    7 USC Sec. 499l                                             01/03/2007

-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.

-End-



-CITE-
    7 USC Sec. 499m                                             01/03/2007

-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.


-MISC1-
                                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.

-End-



-CITE-
    7 USC Sec. 499n                                             01/03/2007

-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.


-MISC1-
                                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."

-End-



-CITE-
    7 USC Sec. 499o                                             01/03/2007

-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.


-MISC1-
                                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.

-End-



-CITE-
    7 USC Sec. 499p                                             01/03/2007

-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.

-End-



-CITE-
    7 USC Sec. 499q                                             01/03/2007

-EXPCITE-
    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.

-End-



-CITE-
    7 USC Sec. 499r                                             01/03/2007

-EXPCITE-
    TITLE 7 - AGRICULTURE
    CHAPTER 20A - PERISHABLE AGRICULTURAL COMMODITIES

-HEAD-
    Sec. 499r. Repealed.

-MISC1-
    Sec. 499r. Repealed. Pub. L. 102-237, title X, Sec. 1011(8), Dec.
      13, 1991, 105 Stat. 1898.
      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.

-End-



-CITE-
    7 USC Sec. 499s                                             01/03/2007

-EXPCITE-
    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.

-End-



-CITE-
    7 USC Sec. 499t                                             01/03/2007

-EXPCITE-
    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.

-End-