An Act to amend the provisions of the Perishable Agricultural Commodities Act, 1930, relating to practices in the marketing of perishable agricultural commodities
PL 84-842 (H.R.5337), enacted 07/30/1956

726 
PUBLIC LAW 842-JULY 30, 1956 
[70 ST A T . 
July 30,1956 
[H. R. 5337] 
Public Law 842 
CHAPTER 786 
AN ACT 
To amend the provisions of the Perishable Agricultural Commodities Act, 1930, 
relating to practices in the marketing of perishable agricultural commodities. 
Perishable agri-
ctiltural commodi-
ties. 
46 Stat. 533. 
Unfair conduct. 
License. 
64 Stat. 217. 
Fees. 
64 Stat. 218. 
50 Stat. 726. 
Investigation. 
Hearing. 
50 Stat. 726. 
7 u s e 499d. 
R e f u s a l of li-
cense. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 2 ( 5 ) 
of the Perishable Agricultural Commodities Act, 1930 (7 U. S. C, 
sec. 499b (5)), is amended to read as follows: 
"(5) For any commission merchant, dealer, or broker to misrepre-
sent by word, act, mark, stencil, label, statement, or deed, the char-
acter, kind, grade, quality, quantity, size, pack, weight, condition, 
degree of maturity, or State, country, or region of origin of any per-
ishable agricultural commodity received, shipped, sold, or offered to be 
sold in interstate or foreign commerce;". 
SEC. 2. (a) Section 3 (b) of such Act (7 U. S. C , sec. 499c (b)) is 
amended by striking out in the third sentence the words "of $15" and 
inserting "not to exceed $25". 
(b) The last proviso of section 4 (a) of such Act (7 U. S. C , sec. 
499d (a)) is amended by striking out "a fee of $20" and inserting "the 
fee provided in section 3 (b), plus $5". 
SEC. 3. Section 4 (d) of such Act (7 U. S. C , sec. 499d (d)) is 
amended to read as follows: 
"(d) The Secretary may withhold the issuance of a license to an 
applicant, for a period not to exceed thirty days pending an investiga-
tion, 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 Act 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, con-
cealment, or withholding of facts respecting any violation of the Act 
by any officer, agent, or employee of the applicant. 
If after investiga-
tion the Secretary believes that the applicant should be refused a li-
cense, 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 appli-
cant 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 Act or was convicted of a 
felony in any State or Federal court, or because the application con-
tains 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 
Act by any officer, agent, or employee, the Secretary may refuse to 
issue a license to the applicant." 
SEC. 4. Section 4 of such Act is further amended by adding at the 
end thereof the following subsection: 
"(e) 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 
70 S T A T . ] 
PUBLIC J
U
A
W 843-JULY 30, 1956 
727 
50 Stat. 730. 
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 cor-
poration adjudicated or discharged as a bankrupt, 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 
Act." 
SEC. 5. Section 8 (b) of such Act (7 U. S. C, sec. 499h (b)) is 
amended to read as follows: 
"(b) The Secretary may, after thirty days' notice and an oppor- nlense.*""""''^ 
tunity for a hearing, suspend or revoke the license of any commission 
merchant, dealer, or broker who, after the date given in such notice, 
continues to employ in any responsible position any individual whose 
license has been revoked or is under suspension or who was responsibly 
connected with any firm, partnership, association, or corporation 
whose license has been revoked or is under suspension. 
Employment 
of an individual whose license has been revoked or is under suspension 
for failure to pay a reparation award or who was responsibly connected 
with any firm, partnership, association, or corporation whose license 
has been revoked or is under suspension for failure to pay a repara-
tion award after one year following the revocation or suspension of 
any such license may be permitted by the Secretary upon the filing by 
the employing licensee of a bond, of such nature and amount as may 
be determmed by the Secretary, or other assurance satisfactory to the 
Secretary that its business will be conducted in accordance with the 
provisions of this Act;". 
SEC. 6. Section 13 (a) of such Act (7 U. S. C , sec. 499m (a)) is 
amended to read as follows: 
" (a) 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 Act, 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 9 of 
this Act 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 Act, and if any commission merchant, dealer, or broker 
having ownership of or control over such lot fails or refuses to author-
ize or allow such inspection, the Secretary may, after thirty days' 
notice and an opportunity for a hearing, publish the facts and circum-
stances and/or, by order, suspend the license of the offender for a pe-
riod not to exceed ninety days." 
Approved July 30, 1956. 
46 Stat. 536. 
Inspection of ac> 
counts, etc. 
Public Law 843 
CHAPTER 787 
AN ACT 
Relating to the use of stoi-age space in the Hulah Reservoir to provide water for 
the city of Bartlesville, Oklahoma. 
July 30, 1956 
[H. R. 8940] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) the Secre- owa.'*'**"^"*' 
tary of the Army is hereby autliorized to contract with the city of 
waUr fromHuiaii 
Bartlesville, Oklahoma, upon such terms and for such period, not to ^*"'^°^'"*