§ 499a. — Short title and definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC499a]
TITLE 7--AGRICULTURE
CHAPTER 20A--PERISHABLE AGRICULTURAL COMMODITIES
Sec. 499a. Short title and definitions
(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.
(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.)
Codification
Section was formerly classified to section 551 of this title.
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.
Section Referred to in Other Sections
This section is referred to in sections 499b-1, 1638 of this title;
title 31 section 3903.
