Perishable Agricultural Commodities Act Amendments of 1995
PL 104-48 (H.R.1103), enacted 11/15/1995

109 STAT. 424 
PUBLIC LAW 104-48—NOV. 15, 1995 
Public Law 104-48 
104th Congress 
Nov. 15, 1995 
[H.R. 1103] 
Perishable 
Agricultural 
Commodities Act 
Amendments of 
1995. 
7 u s e 499a note. 
An Act 
To amend the Perishable Agricultural Commodities Act, 1930, to modernize, 
streamline, and strengthen the operation of the Act. 
Be it enacted by the Senate and House of Representatives 
of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—^This Act may be cited as the "Perishable 
Agricultural Commodities Act Amendments of 1995". 
(b) TABLE OF CONTENTS.—The table of contents of this Act 
is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Addition of definitions of retailer and grocery wholesaler. 
Sec. 3. Gradual elimination of annual license fee for retailers and grocery whole-
salers that are dealers. 
Sec. 4. Establishment and alteration of license fees for commission merchants, 
dealers (other than retailers and grocery wholesalers), and brokers. 
Sec. 5. Increase in penalties for operating without a license and increase in late re-
newal fee. 
Sec. 6. Statutory trust on commodities and sale proceeds. 
Sec. 7. Authority of Department of Agriculture regarding possible violations. 
Sec. 8. Filing and handling fees for reparation complaints. 
Sec. 9. Consideration of collateral fees and expenses. 
Sec. 10. Clarification of misbranding prohibition. 
Sec. 11. Imposition of civil penalty in lieu of license suspension or revocation. 
Sec. 12. Extension of sanctions to persons responsibly connected to a commission 
merchant, dealer, or broker. 
SEC. 2. ADDITION OF DEFINITIONS OF RETAILER AND GROCERY 
WHOLESALER 
Section 1(b) of the Perishable Agricultural Commodities Act, 
1930 (7 U.S.C. 499a(b)), is amended by adding at the end the 
following new paragraphs: 
"(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 whole-
sale distribution and resale of perishable agricultural commodities 
rather than other grocery and related nonfood items.". 
PUBLIC LAW 104-48—NOV. 15, 1995 
109 STAT. 425 
SEC. 3. GRADUAL ELIMINATION OF ANNUAL LICENSE FEE FOR RETAIL-
ERS AND GROCERY WHOLESALERS THAT ARE DEALERS. 
(a) ELIMINATION OF i\NNUAL FEES OVER THREE-YEAR PERIOD.— 
Subsection (b) of section 3 of the Perishable Agricultural Commod-
ities Act, 1930 (7 U.S.C. 499c), is amended— 
(1) by inserting "(1) APPLICATION FOR LICENSE.—" before 
the start of the first sentence and adjusting the margin to 
conform to paragraph (3); 
(2) by striking the third and fourth sentences; 
(3) by inserting "(5) PERISHABLE AGRICULTURAL COMMOD-
ITIES ACT FUND.—" before the start of the fifth sentence and 
adjusting the margin to conform to paragraph (3); 
(4) by striking the last sentence; and 
(5) by inserting before paragraph (5) (as so designated) 
the following new paragraphs: 
"(3) ONE-TIME FEE FOR RETAILERS AND GROCERY WHOLE-
SALERS THAT ARE DEALERS.—During the three-year period 
beginning on the date of the enactment of the Perishable Agri-
cultural Commodities Act Amendments of 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 renew-
als 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 the date of the enactment of the Perishable 
Agricultural Commodities Act Amendments of 1995, pa3mnents 
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 the date of the enactment of 
the Perishable Agricultural Commodities Act Amendments 
of 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 such enactment 
date. 
"(B) For anniversary dates occurring during the one-
year period beginning at the end of the period in subpara-
graph (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 subpara-
graph (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 the date of the enactment of the Perishable Agricultural 
Commodities Act Amendments of 1995, the licensee shall 
109 STAT. 426 
PUBLIC LAW 104-48—NOV. 15, 1995 
not be required to pay any fee if the licensee seeks renewal 
of the license.". 
(b) 
STYLISTIC 
AMENDMENTS.—Such 
section 
is 
further 
amended— 
(1) by striking the section heading and "SEC. 3. (a)" and 
inserting the following: 
"SEC. 3. LICENSES. 
"(a) LICENSE REQUIRED; PENALTIES FOR VIOLATIONS.—"; 
(2) in subsection (b), by inserting "APPLICATION AND FEES 
FOR LICENSES.—" after "(b)"; and 
(3) in 
subsection 
(c), by inserting 
"USE OF TRADE 
NAMES.—" after "(c)". 
SEC 4. ESTABLISHMENT AND ALTERATION OF LICENSE FEES FOR 
COMMISSION MERCHANTS, DEALERS (OTHER THAN 
RETAILERS AND GROCERY WHOLESALERS), AND BRO-
KERS. 
(a) DISCRETION OF SECRETARY TO ESTABLISH AND ALTER FEES.— 
Section 3(b) of the Perishable Agricultural Commodities Act, 1930 
(7 U.S.C. 499c(b)), is amended by inserting after paragraph (1), 
as designated by section 3(a)(1), the following new paragraph: 
"(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 Act 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 pre-
scribe. 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, 
United States Code, except that the Secretary may not alter 
the fees required under paragraph (3) or (4) for retailers and 
Effective date. 
grocery wholesalers that are dealers. Effective on the date 
of the enactment of the Perishable Agricultural Commodities 
Act Amendments of 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 facili-
ties, 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 such Acts 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 the date of the enactment of the Perishable 
Agricultural Commodities Act Amendments of 1995.". 
(b) REPEAL OF CURRENT CAP ON RESERVE FUNDS.—Paragraph 
(5) of such section, as designated by section 3(a)(3), is amended 
by striking the sentence that begins with "The amount of money. 
PUBLIC LAW 104-48—NOV. 15, 1995 
109 STAT. 427 
(c) CONFORMING AMENDMENTS REGARDING THIS SECTION AND 
SECTION 3.—Section 4(a) of such Act (7 U.S.C. 499d(a)) is 
amended— 
(1) in the matter preceding the provisos, by striking "any 
anniversary date thereof unless the annual fee has been paid" 
and inserting "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)"; 
(2) in the first proviso, by striking "the necessity of paying 
the annual fee" and inserting "the necessity of renewing the 
license and of pa3dng the renewal fee (if such fee is required)"; 
and 
(3) in the second proviso, by striking "annual fee" and 
inserting "renewal fee (if required)". 
SEC. 5. INCREASE IN PENALTIES FOR OPERATING WITHOUT A LICENSE 
AND INCREASE IN LATE RENEWAL FEE. 
(a) LICENSE PENALTIES.—Section 3(a) of the Perishable Agricul-
tural Commodities Act, 1930 (7 U.S.C. 499c(a)), as amended by 
section 3(b)(1), is further amended— 
(1) by striking "$500" and inserting "$ 1,000"; and 
(2) by striking "$25" both places it appears and inserting 
"$250". 
(b) LATE FILING FEES.—Section 4(a) of the Perishable Agricul-
tural Commodities Act, 1930 (7 U.S.C. 499d(a)), as amended by 
section 4(c), is further amended in the second proviso by striking 
"plus $5" and inserting "plus $50". 
SEC. 6. STATUTORY TRUST ON COMMODITIES AND SALE PROCEEDS. 
(a) 
REPEAL OF SECRETARIAL NOTIFICATION REQUIREMENT.— 
Paragraph (3) of section 5(c) of the Perishable Agricultural Commod-
ities Act, 1930 (7 U.S.C. 499e(c)), is amended in the first sentence 
by striking "and has filed such notice with the Secretary". 
(b) CLARIFICATION OF CONTENT OF NOTIFICATION.—Such para-
graph is further amended by inserting after the first sentence 
the following new 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.". 
(c) ADDITIONAL METHOD OF NOTIFICATION FOR LICENSEES.— 
Such section is further amended— 
(1) by redesignating paragraph (4) as paragraph (5); and 
(2) by inserting after paragraph (3) the following new para-
graph: 
"(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 para-
graph (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.'.". 
109 STAT. 428 
PUBLIC LAW 104-48—NOV. 15, 1995 
SEC. 7. AUTHORITY OF DEPARTMENT OF AGRICULTURE REGARDING 
POSSIBLE VIOLATIONS. 
(a) DISCIPLINARY VIOLATIONS.—Subsection (b) of section 6 of 
the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499f), 
is amended to read as follows: 
Rules. 
"(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 Act) may file, in 
accordance with rules prescribed by the Secretary, a written 
notification of any alleged violation of this Act 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 5 shall 
constitute written notification for the purposes of conducting an 
investigation under subsection (c). 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, United States Code (commonly known 
as the Freedom of Information Act), as provided in subsection 
(b)(3) of such section.". 
(b) GROUNDS AND PROCESS OF INVESTIGATIONS.—Subsection (c) 
of such section is amended to read as follows: 
"(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) or a written notification made under subsection (b), the 
Secretary shall investigate such complaint or notification. In 
the course of the investigation, if the Secretary determines 
that violations of this Act 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 Act, 
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 inves-
tigation on the basis of a written notification made under 
subsection (b) 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 
PUBLIC LAW 104-48—NOV. 15, 1995 
109 STAT. 429 
violations of this Act 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 inves-
tigation, 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.". 
(c) 
INCREASE IN THRESHOLD FOR SHORTENED 
PROCEDURE 
CASES.—Subsection (d) of such section is amended by striking 
"$15,000" both places it appears and inserting "$30,000". 
(d) 
STYLISTIC 
AMENDMENTS.—Such 
section 
is 
further 
amended— 
(1) by striking the section heading and "SEC. 6." and insert-
ing the following: 
"SEC. 6. COMPLAINTS, WRITTEN NOTIFICATIONS, AND INVESTIGA-
TIONS."; 
(2) in subsection (d), by inserting "DECISIONS ON COM-
PLAINTS.—" after "(d)"; and 
(3) in subsection (e), by inserting "BOND REQUIRED FOR 
CERTAIN COMPLAINTS.—" after "(e)". 
SEC. 8. FILING AND HANDLING FEES FOR REPARATION COMPLAINTS. 
(a) PERMANENT FILING AND HANDLING FEES.—Section 6(a) of 
the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 
499f(a)), is amended— 
(1) by striking "(a)" and inserting the following: 
• 
"(a) REPARATION COMPLAINTS.— 
"(1) P E T I T I O N ; PROCESS.—";and 
(2) by adding at the end the following new paragraph: 
"(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 3(b). The Secretary may alter the fees specified 
in this paragraph by rulemaking under section 553 of title 
5, United States Code.". 
(b) INCLUSION OF HANDLING FEE IN CALCULATION OF DAM-
AGES.^-Section 5(a) of such Act (7 U.S.C. 499e(a)) is amended by 
inserting after "damages" the following: "(including any handling 
fee paid by the injured person or persons under section 6(a)(2))". 
(c) CONFORMING AMENDMENT TO TEMPORARY FEE AUTHORITY.— 
Public Law 103-276 (7 U.S.C. 499f note) is repealed. 
SEC 9. CONSIDERATION OF COLLATERAL FEES AND EXPENSES. 
(a) DEFINITION.—Section 1(b) of the Perishable Agricultural 
Commodities Act, 1930 (7 U.S.C. 499a(b)), is amended by inserting 
109 STAT. 430 
PUBLIC LAW 104-48—NOV. 15, 1995 
after paragraph (12), as added by section 2, the following new 
paragraph: 
"(13) The term 'collateral fees and expenses' means any pro-
motional allowances, rebates, service or materials fees paid or pro-
vided, directly or indirectly, in connection with the distribution 
or marketing of any perishable agricultural commodity.". 
(b) USE OF DEFINITION.—Section 2 of such Act (7 U.S.C. 499b) 
is amended— 
(1) by striking "commerce—" in the matter before para-
graph (1) and inserting "commerce:"; 
(2) by striking the semicolon at the end of each paragraph 
and inserting a period; and 
(3) in paragraph (4), by adding at the end the following 
new sentence: "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 Act.". 
SEC. 10. CLARIFICATION OF MISBRANDING PROHIBITION. 
Section 2(5) of the Perishable Agricultural Commodities Act, 
1930 (7 U.S.C. 499b(5)), is amended— 
(1) by striking "commerce: Provided, That" and inserting 
"commerce. However,"; and 
(2) by adding at the end the following new sentence: "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.". 
SEC. 11. IMPOSITION OF CIVIL PENALTY IN LIEU OF LICENSE SUSPEN-
SION OR REVOCATION. 
Section 8 of the Perishable Agricultural Commodities Act, 1930 
(7 U.S.C. 499h), is amended by adding at the end the following 
new subsection: 
"(e) ALTERNATIVE CIVIL PENALTIES.—In lieu of suspending or 
revoking a license under this section when the Secretary deter-
mines, as provided by section 6, that a commission merchant, dealer, 
or broker has violated section 2 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.". 
SEC. 12. EXTENSION OF SANCTIONS TO PERSONS RESPONSIBLY CON-
NECTED TO A COMMISSION MERCHANT, DEALER, OR 
BROKER. 
(a) EXCEPTION TO DEFINITION.—Section 1(b)(9) of the Perishable 
Agricultural Commodities Act, 1930 (7 U.S.C. 499a(b)(9)), is 
amended by adding at the end the following new sentence: "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 Act and that the person either was only nominally 
PUBLIC LAW 104-48—NOV. 15, 1995 
109 STAT. 431 
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.". 
(b) EXTENSION OF EMPLOYMENT SANCTION.—Section 8(b) of such 
Act (7 U.S.C. 499h(b)) is amended by adding at the end the following 
new sentence: "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) 
CONFORMING 
AMENDMENT 
REGARDING 
LICENSING 
SANC-
TION.—Section 4 of such Act (7 U.S.C. 499d) is amended— 
(1) in subsection (b), by inserting "is prohibited from 
employment with a licensee under section 8(b) or" after "with 
the applicant," in the matter preceding subparagraph (A); and 
(2) in subsection (c), by adding at the end the following 
new sentence: "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 8(b).". 
Approved November 15, 1995. 
LEGISLATIVE HISTORY—H.R. 1103: 
HOUSE REPORTS: No. 104-207 (Coram, on Agriculture). 
CONGRESSIONAL RECORD, Vol. 141 (1995): 
July 28, considered and passed House. 
Nov. 7, considered and passed Senate.