
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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        (1) whose license has been revoked or is currently suspended by 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.
