§ 499h. — Grounds for suspension or revocation of license.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC499h]
TITLE 7--AGRICULTURE
CHAPTER 20A--PERISHABLE AGRICULTURAL COMMODITIES
Sec. 499h. Grounds for suspension or revocation of license
(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(1) whose license has been revoked or is currently suspended by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.
(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.)
Codification
Section was formerly classified to section 558 of this title.
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).
Section Referred to in Other Sections
This section is referred to in section 499d of this title.
