§ 499c. — Licenses.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC499c]
TITLE 7--AGRICULTURE
CHAPTER 20A--PERISHABLE AGRICULTURAL COMMODITIES
Sec. 499c. Licenses
(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.
(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.)
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.
Codification
Section was formerly classified to section 553 of this title.
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.
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.
Section Referred to in Other Sections
This section is referred to in sections 499a, 499d, 499f, 499h,
499o, 499s of this title.
