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The original documents are located in Box 1, folder "8/10/74 HR13264 Perishable
Agricultural Commodities" of the White House Records Office: Legislation Case Files at
the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 1 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
APPROVE 1974
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
AUG 7 1974
Thio inthe
fint hee signed
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 13264 - Perishable agricultural
by find
commodities
Sponsor - Rep. Sisk (D) California
Posted
Last Day for Action
8/11
FORD i LIBRARY GERALD
August 14, 1974 - Wednesday
To archives
Purpose
8/12
Provides variable penalties for certain violations of the
Perishable Agricultural Commodities Act.
Agency Recommendations
Office of Management and Budget
Approval
Department of Agriculture
Approval
Department of Justice
Defers to Agriculture
Department of the Treasury
No objection
Council of Economic Advisers
No objection
Discussion
Under provisions of the Perishable Agricultural Commodities
Act, it is unlawful to misbrand perishable agricultural
commodities shipped, sold or offered for sale in interstate
or foreign commerce. The Act requires all merchants, brokers,
and dealers who deal in such perishable agricultural commodities
to be licensed by the Department of Agriculture. The only
penalties which can presently be imposed for such violations
are public disclosure of the facts and circumstances and/or the
suspension or revocation of the license of the violator.
2
The Department of Agriculture's experience with administering
the Act led it to believe that the law was too inflexible.
Violators were given either no penalty in one case or their
license was suspended or revoked in another instance -- a gap
existed for violations which warranted an intermediate penalty.
In order to remedy this situation, Agriculture submitted to the
Congress a draft bill to amend the Perishable Agricultural
Commodities Act. The Agriculture bill provided that violators,
with the consent of the Secretary, may admit their violations
and pay a monetary penalty not to exceed $2,000 in lieu of a
formal suspension or revocation proceeding. Payments so made
would be deposited into the treasury as miscellaneous receipts.
The enrolled bill is identical to the Agriculture proposal
described above.
In reporting on H.R. 13264, the House Agriculture Committee
stated that the bill:
"
would give the Secretary the flexibility
to bring about a substantial reduction in the
number of repeated violations by dealers. It
would result in greater efficiency in administering
the act by minimizing the necessity of formal action
against licensees."
GERALD FORD LIBRARY
Wilfred H Romand
Assistant Director for
Legislative Reference
Enclosures
STATES DEPARTMENT OF GRACULTURE
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D. C. 20250
GERALD FORD LIBRARY
August 6, 1974
Honorable Roy L. Ash, Director
Office of Management and Budget
Dear Mr. Ash:
This is to report on the enrolled enactment of H.R. 13264, a bill to amend
the provisions of the Perishable Agricultural Commodities Act, 1930, relating
to practices in the marketing of perishable agricultural commodities.
This Department recommends that the President approve H.R. 13264.
The bill would amend Section 2(5) of the Perishable Agricultural Commodities
Act to permit the Secretary the option of allowing a person who has violated
the law by misbranding and misrepresenting fresh and frozen fruits or vege-
tables sold in interstate or foreign commerce to admit the violation and pay
a monetary penalty, not to exceed $2,000, in lieu of a formal disciplinary
proceeding for the suspension or revocation of the violator's license.
The only penalties which can presently be imposed for such violations under
the PACA are the suspension or revocation of the license of the violator.
Experience shows that many licensees are not deterred by a warning or series
of warnings but only by the risk of a serious penalty. The addition of a
monetary penalty, as provided in H.R. 13264, should cause a substantial reduc-
tion in repeated misbranding violations.
Consumers, as well as the distributive trade, would benefit if the legisla-
tion is adopted, since deterrence of misbranding and misrepresentation offers
a measure of consumer protection.
Sincerely,
RICHARD A. ASHWORTH
Deputy Under Secretary
SSISTANT<ATTORNEY GENERAL
LEGISLATIVE AFFAIRS
Department of Justice
Washington, D.C. 20530
AUG 5 1974
Honorable Roy L. Ash
Director, Office of
BERALD FORD LIBRARY
Management and Budget
Washington, D. C. 20503
Dear Mr. Ash:
In compliance with your request, I have examined a
facsimile of the enrolled bill H.R. 13264, "To amend the pro-
visions of the Perishable Agricultural Commodities Act, 1930,
relating to practices in the marketing of perishable agricul-
tural commodities."
The Perishable Agricultural Commodities Act, 1930,
as amended (7 U.S.C. 499a-499s) provides for the regulation
of commercial trade practices in the marketing of fresh and
frozen fruits and vegetables and aids in the enforcement of
contracts for the marketing of such commodities. The statute
provides for the licensing of firms doing business in the
industry and provides for the suspension or revocation of a
firm's license for a number of different violations in addition
to recovery of damages by injured parties.
The amendment proposed by H.R. 13264 would allow a
firm accused of violating one provision of the statute
(7 U.S.C. 499b (5) ) the option, with the consent of the Secre-
tary of Agriculture, of admitting the violation and paying a
monetary penalty not to exceed $2,000 in lieu of a formal pro-
ceeding for the license suspension or revocation.
The Department of Justice defers to the Department
of Agriculture concerning whether this bill should receive
Executive approval.
Whakestra
W. Vindent Rakestraw
Assistant Attorney General
DEPARTMENT OF THE
THE 1789 TREASURY
THE GENERAL COUNSEL OF THE TREASURY
WASHINGTON, D.C. 20220
AUG 5 1974
Director, Office of Management and Budget
Executive Office of the President
Washington, D.C. 20503
GERALD FORD ALBRARY
Attention: Assistant Director for Legislative
Reference
Sir:
Reference is made to your request for the views of
this Department on the enrolled enactment of H.R. 13264,
"To amend the provisions of the Perishable Agricultural
Commodities Act, 1930, relating to practices in the
marketing of perishable agricultural commodities."
The enrolled enactment would amend the Perishable
Agricultural Commodities Act to provide a monetary penalty
not to exceed $2,000 for certain violations of the Act.
Any payment so made would be deposited into the Treasury
of the United States as miscellaneous receipts. The
legislation was proposed by the Department of Agriculture.
The Department would have no objection to a recommenda-
tion that the enrolled enactment be approved by the
President.
Sincerely yours,
General Counsel
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
August 5, 1974
FORD LIBRARY
Dear Mr. Rommel:
The Council of Economic Advisers has no objections
to the President's signing H.R. 13264, a bill "To amend
the provisions of the Perishable Agricultural Commodities
Act, 1930, relating to practices in the marketing of
perishable agricultural commodities."
Sincerely,
Herbert Sten
Herbert Stein
Mr. Wilfred H. Rommel
Assistant Director
for Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
AMERICAN REVOLUTION INFONTENNAL
1776-1976
Hindrika
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
AUG
7
1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 13264 - Perishable agricultural
commodities
Sponsor - Rep. Sisk (D) California
FORD
Last Day for Action
GERALD
LIBRARY
August 14, 1974 - Wednesday
Purpose
Provides variable penalties for certain violations of the
Perishable Agricultural Commodities Act.
Agency Recommendations
Office of Management and Budget
Approval
Department of Agriculture
Approval
Department of Justice
Defers to Agriculture
Department of the Treasury
No objection
Council of Economic Advisers
No objection
Discussion
Under provisions of the Perishable Agricultural Commodities
Act, it is unlawful to misbrand perishable agricultural
commodities shipped, sold or offered for sale in interstate
or foreign commerce. The Act requires all merchants, brokers,
and dealers who deal in such perishable agricultural commodities
to be licensed by the Department of Agriculture. The only
penalties which can presently be imposed for such violations
are public disclosure of the facts and circumstances and/or the
suspension or revocation of the license of the violator.
2
The Department of Agriculture's experience with administering
the Act led it to believe that the law was too inflexible.
Violators were given either no penalty in one case or their
license was suspended or revoked in another instance -- a gap
existed for violations which warranted an intermediate penalty.
In order to remedy this situation, Agriculture submitted to the
Congress a draft bill to amend the Perishable Agricultural
Commodities Act. The Agriculture bill provided that violators,
with the consent of the Secretary, may admit their violations
and pay a monetary penalty not to exceed $2,000 in lieu of a
formal suspension or revocation proceeding. Payments SO made
would be deposited into the treasury as miscellaneous receipts.
The enrolled bill is identical to the Agriculture proposal
described above.
In reporting on H.R. 13264, the House Agriculture Committee
stated that the bill:
"
would give the Secretary the flexibility
to bring about a substantial reduction in the
number of repeated violations by dealers. It
would result in greater efficiency in administering
the act by minimizing the necessity of formal action
against licensees."
R FORD LIBRARY
(signed) Wilfred H. Rommel
Assistant Director for
Legislative Reference
Enclosures
THE WHITE HOUSE
WASHINGTON
ENROLLED BILL
SUBJECT: Enrolled Bill H.R. 13264 - Perishable
Agricultural Commodities
Name
Approval
Date
Michael Duval
Yes
Fred Buzhardt
Yes
Bill Timmons
Yes
Ken Cole
FORD
GERALD
Comments:
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 495
Date: August 7, 1974
Time:
5:00 p. m.
FOR ACTION: VMichael Duval
CC (for information): Warren K. Hendriks
\Fred Buzhardt
Jerry Jones
Bill Timmons
FROM THE STAFF SECRETARY
DUE: Date:
Friday, August 9, 1974
Time: 2:00 p.m.
SUBJECT:
Enrolled Bill H.R. 13264 - Perishable Agricultural
Commodities
GERALD FORD
ACTION REQUESTED:
For Necessary Action
XX For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
WASHINGTON
8/7/74
TO: WARREN HENDRIKS
mike Dural
FB
CCWH
BT
JJ
A
John J. Ratchford
THE WHITE HOUSE
ACTION MEMORANDUM
LOG NO.: 495
WASHINGTON
Date: August 7, 1974
Time:
5:00 p.m.
FOR ACTION: Michael Duval
CC (for information): Warren K. Hendriks
Fred Buzhardt
Jerry Jones
Bill Timmons
FROM THE STAFF SECRETARY
DUE: Date:
Friday, August 9, 1974
Time: 2:00 p.m.
SUBJECT:
Enrolled Bill H. R. 13264 - Perishable Agricultural
Commodities
FORD & LIBRARI GERALD
ACTION REQUESTED:
For Necessary Action
XX For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
No objection
U.C.
Please return to Kathy Tindle - West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
Warren K. Hendriks
For the President
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
AUG 7 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 13264 - Perishable agricultural
commodities
Sponsor - Rep. Sisk (D) California
Last Day for Action
August 14, 1974 - Wednesday
GERALD FORD LIBRARY
Purpose
Provides variable penalties for certain violations of the
Perishable Agricultural Commodities Act.
Agency Recommendations
Office of Management and Budget
Approval
Department of Agriculture
Approval
Department of Justice
Defers to Agriculture
Department of the Treasury
No objection
Council of Economic Advisers
No objection
Discussion
Under provisions of the Perishable Agricultural Commodities
Act, it is unlawful to misbrand perishable agricultural
commodities shipped, sold or offered for sale in interstate
or foreign commerce. The Act requires all merchants, brokers,
and dealers who deal in such perishable agricultural commodities
to be licensed by the Department of Agriculture. The only
penalties which can presently be imposed for such violations
are public disclosure of the facts and circumstances and/or the
suspension or revocation of the license of the violator.
2
The Department of Agriculture's experience with administering
the Act led it to believe that the law was too inflexible.
Violators were given either no penalty in one case or their
license was suspended or revoked in another instance -- a gap
existed for violations which warranted an intermediate penalty.
In order to remedy this situation, Agriculture submitted to the
Congress a draft bill to amend the Perishable Agricultural
Commodities Act. The Agriculture bill provided that violators,
with the consent of the Secretary, may admit their violations
and pay a monetary penalty not to exceed $2,000 in lieu of a
formal suspension or revocation proceeding. Payments so made
would be deposited into the treasury as miscellaneous receipts.
The enrolled bill is identical to the Agriculture proposal
described above.
In reporting on H.R. 13264, the House Agriculture Committee
stated that the bill:
If
would give the Secretary the flexibility
to bring about a substantial reduction in the
number of repeated violations by dealers. It
would result in greater efficiency in administering
the act by minimizing the necessity of formal action
against licensees."
GERALD 3. LEBRARY YORD
Wilfred H Romand
Assistant Director for
Legislative Reference
Enclosures
STATES AGRICULTURE & GRICULTURE
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D. C. 20250
August 6, 1974
Honorable Roy L. Ash, Director
Office of Management and Budget
FORD LIBRARY & diviso
Dear Mr. Ash:
This is to report on the enrolled enactment of H.R. 13264, a bill to amend
the provisions of the Perishable Agricultural Commodities Act, 1930, relating
to practices in the marketing of perishable agricultural commodities.
This Department recommends that the President approve H.R. 13264.
The bill would amend Section 2(5) of the Perishable Agricultural Commodities
Act to permit the Secretary the option of allowing a person who has violated
the law by misbranding and misrepresenting fresh and frozen fruits or vege-
tables sold in interstate or foreign commerce to admit the violation and pay
a monetary penalty, not to exceed $2,000, in lieu of a formal disciplinary
proceeding for the suspension or revocation of the violator's license.
The only penalties which can presently be imposed for such violations under
the PACA are the suspension or revocation of the license of the violator.
Experience shows that many licensees are not deterred by a warning or series
of warnings but only by the risk of a serious penalty. The addition of a
monetary penalty, as provided in H.R. 13264, should cause a substantial reduc-
tion in repeated misbranding violations.
Consumers, as well as the distributive trade, would benefit if the legisla-
tion is adopted, since deterrence of misbranding and misrepresentation offers
a measure of consumer protection.
Sincerely,
RICHARD A. ASHWORTH
Deputy Under Secretary
ASSISTANT ATTORNEY GENERAL
LEGISLATIVE AFFAIRS
Department of Justice
Washington, D.C. 20530
AUG 5 1974
Honorable Roy L. Ash
Director, Office of
Management and Budget
Washington, D. C. 20503
Dear Mr. Ash:
In compliance with your request, I have examined a
facsimile of the enrolled bill H.R. 13264, "To amend the pro-
visions of the Perishable Agricultural Commodities Act, 1930,
relating to practices in the marketing of perishable agricul-
tural commodities.
The Perishable Agricultural Commodities Act, 1930,
as amended (7 U.S.C. 499a-499s) provides for the regulation
of commercial trade practices in the marketing of fresh and
frozen fruits and vegetables and aids in the enforcement of
contracts for the marketing of such commodities. The statute
provides for the licensing of firms doing business in the
industry and provides for the suspension or revocation of a
firm's license for a number of different violations in addition
to recovery of damages by injured parties.
The amendment proposed by H.R. 13264 would allow a
firm accused of violating one provision of the statute
(7 U.S.C. 499b (5) ) the option, with the consent of the Secre-
tary of Agriculture, of admitting the violation and paying a
monetary penalty not to exceed $2,000 in lieu of a formal pro-
ceeding for the license suspension or revocation.
The Department of Justice defers to the Department
of Agriculture concerning whether this bill should receive
Executive approval.
FURD
Whakestra
"y
SUBRARY
W. Vincent Rakestraw
GERALD
Assistant Attorney General
OF
DEPARTMENT THE TREASURY
THE
THE GENERAL COUNSEL OF THE TREASURY
WASHINGTON, D.C. 20220
1789
AUG 5 1974
Director, Office of Management and Budget
Executive Office of the President
Washington, D.C. 20503
Attention: Assistant Director for Legislative
Reference
Sir:
Reference is made to your request for the views of
this Department on the enrolled enactment of H.R. 13264,
"To amend the provisions of the Perishable Agricultural
Commodities Act, 1930, relating to practices in the
marketing of perishable agricultural commodities."
The enrolled enactment would amend the Perishable
Agricultural Commodities Act to provide a monetary penalty
not to exceed $2,000 for certain violations of the Act.
Any payment so made would be deposited into the Treasury
of the United States as miscellaneous receipts. The
legislation was proposed by the Department of Agriculture.
The Department would have no objection to a recommenda-
tion that the enrolled enactment be approved by the
President.
Sincerely yours,
FORD LIBRARY 'y GERALD
General Counsel
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
August 5, 1974
Dear Mr. Rommel:
The Council of Economic Advisers has no objections
to the President's signing H.R. 13264, a bill "To amend
the provisions of the Perishable Agricultural Commodities
Act, 1930, relating to practices in the marketing of
perishable agricultural commodities."
Sincerely,
Herbert Sten
Herbert Stein
Mr. Wilfred H. Rommel
Assistant Director
for Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
FORD LIBRARY & GERALD
AMERICAN REVOLUTION
1776-1976
THE WHITE HOUSE
WASHINGTON
August 8, 1974
MEMORANDUM FOR: MR. WARREN HENDRIKS
FROM:
WILLIAM E. TIMMONS PAMfawor
SUBJECT:
Action Memorandum - Log No. 495
Enrolled Bill H.R. 13264 - Perishable
Agricultural Commodities
FORD
GERALD
The Office of Legislative Affairs concurs in the attached
proposal and has no additional recommendations.
Attachment
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 495
Date: August 7, 1974
Time:
5:00 p.m.
FOR ACTION: Michael Duval
CC (for information): Warren K. Hendriks
Fred Buzhardt
Jerry Jones
Bill Timmons
FROM THE STAFF SECRETARY
DUE: Date:
Friday, August 9, 1974
Time:
2:00 p. m.
SUBJECT:
Enrolled Bill H. R. 13264 - Perishable Agricultural
Commodities
FORD LIBRARY & CERALD
ACTION REQUESTED:
For Necessary Action
XX For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately
Warren K. Hendriks
For the President
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
AUG 7 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 13264 - Perishable agricultural
commodities
Sponsor - Rep. Sisk (D) California
Last Day for Action
BERRALO FORD LIBRARY
August 14, 1974 - Wednesday
Purpose
Provides variable penalties for certain violations of the
Perishable Agricultural Commodities Act.
Agency Recommendations
Office of Management and Budget
Approval
Department of Agriculture
Approval
Department of Justice
Defers to Agriculture
Department of the Treasury
No objection
Council of Economic Advisers
No objection
Discussion
Under provisions of the Perishable Agricultural Commodities
Act, it is unlawful to misbrand perishable agricultural
commodities shipped, sold or offered for sale in interstate
or foreign commerce. The Act requires all merchants, brokers,
and dealers who deal in such perishable agricultural commodities
to be licensed by the Department of Agriculture. The only
penalties which can presently be imposed for such violations
are public disclosure of the facts and circumstances and/or the
suspension or revocation of the license of the violator.
2
The Department of Agriculture's experience with administering
the Act led it to believe that the law was too inflexible.
Violators were given either no penalty in one case or their
license was suspended or revoked in another instance -- a gap
existed for violations which warranted an intermediate penalty.
In order to remedy this situation, Agriculture submitted to the
Congress a draft bill to amend the Perishable Agricultural
Commodities Act. The Agriculture bill provided that violators,
with the consent of the Secretary, may admit their violations
and pay a monetary penalty not to exceed $2,000 in lieu of a
formal suspension or revocation proceeding. Payments so made
would be deposited into the treasury as miscellaneous receipts.
The enrolled bill is identical to the Agriculture proposal
described above.
In reporting on H.R. 13264, the House Agriculture Committee
stated that the bill:
"
would give the Secretary the flexibility
to bring about a substantial reduction in the
number of repeated violations by dealers. It
would result in greater efficiency in administering
the act by minimizing the necessity of formal action
against licensees."
GERALD LIBRARY FORD
Wilfred H Romerel
Assistant Director for
Legislative Reference
Enclosures
STATES address )
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D. C. 20250
August 6, 1974
Honorable Roy L. Ash, Director
Office of Management and Budget
FORD & GERALD LIBRARY
Dear Mr. Ash:
This is to report on the enrolled enactment of H.R. 13264, a bill to amend
the provisions of the Perishable Agricultural Commodities Act, 1930, relating
to practices in the marketing of perishable agricultural commodities.
This Department recommends that the President approve H.R. 13264.
The bill would amend Section 2(5) of the Perishable Agricultural Commodities
Act to permit the Secretary the option of allowing a person who has violated
the law by misbranding and misrepresenting fresh and frozen fruits or vege-
tables sold in interstate or foreign commerce to admit the violation and pay
a monetary penalty, not to exceed $2,000, in lieu of a formal disciplinary
proceeding for the suspension or revocation of the violator's license.
The only penalties which can presently be imposed for such violations under
the PACA are the suspension or revocation of the license of the violator.
Experience shows that many licensees are not deterred by a warning or series
of warnings but only by the risk of a serious penalty. The addition of a
monetary penalty, as provided in H.R. 13264, should cause a substantial reduc-
tion in repeated misbranding violations.
Consumers, as well as the distributive trade, would benefit if the legisla-
tion is adopted, since deterrence of misbranding and misrepresentation offers
a measure of consumer protection.
Sincerely,
RICHARD A. ASHWORTH
Deputy Under Secretary
ASSISTANT ATTORNEY GENERAL
LEGISLATIVE AFFAIRS
Department of Justice
Washington, D.C. 20530
AUG 5 1974
Honorable Roy L. Ash
Director, Office of
Management and Budget
Washington, D. C. 20503
FORD i LIBRARY GERALD
Dear Mr. Ash:
In compliance with your request, I have examined a
facsimile of the enrolled bill H.R. 13264, "To amend the pro-
visions of the Perishable Agricultural Commodities Act, 1930,
relating to practices in the marketing of perishable agricul-
tural commodities."
The Perishable Agricultural Commodities Act, 1930,
as amended (7 U.S.C. 499a-499s) provides for the regulation
of commercial trade practices in the marketing of fresh and
frozen fruits and vegetables and aids in the enforcement of
contracts for the marketing of such commodities. The statute
provides for the licensing of firms doing business in the
industry and provides for the suspension or revocation of a
firm's license for a number of different violations in addition
to recovery of damages by injured parties.
The amendment proposed by H.R. 13264 would allow a
firm accused of violating one provision of the statute
(7 U.S.C. 499b (5)) the option, with the consent of the Secre-
tary of Agriculture, of admitting the violation and paying a
monetary penalty not to exceed $2,000 in lieu of a formal pro-
ceeding for the license suspension or revocation.
The Department of Justice defers to the Department
of Agriculture concerning whether this bill should receive
Executive approval.
W. Vindent Rakestraw
Assistant Attorney General
OF
THE TREASURY THE DEPARTMENT
THE GENERAL COUNSEL OF THE TREASURY
WASHINGTON, D.C. 20220
1789
AUG 5 1974
Director, Office of Management and Budget
Executive Office of the President
Washington, D.C. 20503
Attention: Assistant Director for Legislative
FORD i LIBRARY GERALD
Reference
Sir:
Reference is made to your request for the views of
this Department on the enrolled enactment of H.R. 13264,
"To amend the provisions of the Perishable Agricultural
Commodities Act, 1930, relating to practices in the
marketing of perishable agricultural commodities."
The enrolled enactment would amend the Perishable
Agricultural Commodities Act to provide a monetary penalty
not to exceed $2,000 for certain violations of the Act.
Any payment so made would be deposited into the Treasury
of the United States as miscellaneous receipts. The
legislation was proposed by the Department of Agriculture.
The Department would have no objection to a recommenda-
tion that the enrolled enactment be approved by the
President.
Sincerely yours,
General Counsel
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
August 5, 1974
Dear Mr. Rommel:
The Council of Economic Advisers has no objections
to the President's signing H.R. 13264, a bill "To amend
the provisions of the Perishable Agricultural Commodities
Act, 1930, relating to practices in the marketing of
perishable agricultural commodities."
Sincerely,
Herbert Sten
Herbert Stein
Mr. Wilfred H. Rommel
Assistant Director
for Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
GERALD LIBRARY FORD
AMERICAN REVOLUTION INFENTENNAL
1776-1976
THE WHITE HOUSE
WASHINGTON
August 9, 1974
TO
: Kathy Tindle
FROM: NORM ROSS
FORD LIBRARY & GERALD
THE WHITE HOUSE
WASHINGTON
TO: Non
FROM:
MIKE DUVAL
For your information
Comments:
ok?? 7
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 495
Date: August 7, 1974
Time:
5:00 p.m.
FOR ACTION: Michael Duval
cc (for information): Warren K. Hendriks
Fred Buzhardt
Jerry Jones
Bill Timmons
FROM THE STAFF SECRETARY
DUE: Date:
Friday, August 9, 1974
Time: 2:00 p.m.
SUBJECT:
Enrolled Bill H.R. 13264 Perishable Agricultural
Commodities
FORD i LIBRARY GERALD
ACTION REQUESTED:
For Necessary Action
XX For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - West Wing
OK
Mike DWAl
ok Norm Rows 8/9
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
Warren K. Hendriks
For the President
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
AUG 7 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 13264 - Perishable agricultural
commodities
Sponsor - Rep. Sisk (D) California
Last Day for Action
August 14, 1974 - Wednesday
GERALD FORD LIBRARY
Purpose
Provides variable penalties for certain violations of the
Perishable Agricultural Commodities Act.
Agency Recommendations
Office of Management and Budget
Approval
Department of Agriculture
Approval
Department of Justice
Defers to Agriculture
Department of the Treasury
No objection
Council of Economic Advisers
No objection
Discussion
Under provisions of the Perishable Agricultural Commodities
Act, it is unlawful to misbrand perishable agricultural
commodities shipped, sold or offered for sale in interstate
or foreign commerce. The Act requires all merchants, brokers,
and dealers who deal in such perishable agricultural commodities
to be licensed by the Department of Agriculture. The only
penalties which can presently be imposed for such violations
are public disclosure of the facts and circumstances and/or the
suspension or revocation of the license of the violator.
2
The Department of Agriculture's experience with administering
the Act led it to believe that the law was too inflexible.
Violators were given either no penalty in one case or their
license was suspended or revoked in another instance -- a gap
existed for violations which warranted an intermediate penalty.
In order to remedy this situation, Agriculture submitted to the
Congress a draft bill to amend the Perishable Agricultural
Commodities Act. The Agriculture bill provided that violators,
with the consent of the Secretary, may admit their violations
and pay a monetary penalty not to exceed $2,000 in lieu of a
formal suspension or revocation proceeding. Payments so made
would be deposited into the treasury as miscellaneous receipts.
The enrolled bill is identical to the Agriculture proposal
described above.
In reporting on H.R. 13264, the House Agriculture Committee
stated that the bill:
"
would give the Secretary the flexibility
to bring about a substantial reduction in the
number of repeated violations by dealers. It
would result in greater efficiency in administering
the act by minimizing the necessity of formal action
against licensees.' "
FORD LIBRARY is
Wilfred H Romand
Assistant Director for
Legislative Reference
Enclosures
STATES DEPARTMENTO ) CRICULTURE
DEPARTMENT OF AGRICULTURE
OFFICE OF THE SECRETARY
WASHINGTON, D. C. 20250
FORD
GERALD
LIBRARY
August 6, 1974
Honorable Roy L. Ash, Director
Office of Management and Budget
Dear Mr. Ash:
This is to report on the enrolled enactment of H.R. 13264, a bill to amend
the provisions of the Perishable Agricultural Commodities Act, 1930, relating
to practices in the marketing of perishable agricultural commodities.
This Department recommends that the President approve H.R. 13264.
The bill would amend Section 2(5) of the Perishable Agricultural Commodities
Act to permit the Secretary the option of allowing a person who has violated
the law by misbranding and misrepresenting fresh and frozen fruits or vege-
tables sold in interstate or foreign commerce to admit the violation and pay
a monetary penalty, not to exceed $2,000, in lieu of a formal disciplinary
proceeding for the suspension or revocation of the violator's license.
The only penalties which can presently be imposed for such violations under
the PACA are the suspension or revocation of the license of the violator.
Experience shows that many licensees are not deterred by a warning or series
of warnings but only by the risk of a serious penalty. The addition of a
monetary penalty, as provided in H.R. 13264, should cause a substantial reduc-
tion in repeated misbranding violations.
Consumers, as well as the distributive trade, would benefit if the legisla-
tion is adopted, since deterrence of misbranding and misrepresentation offers
a measure of consumer protection.
Sincerely,
RICHARD A. ASHWORTH
Deputy Under Secretary
ASSISTANT ATTORNEY GENERAL
LEGISLATIVE AFFAIRS
Department of Justice
Washington, D.C. 20530
AUG 5 1974
Honorable Roy L. Ash
Director, Office of
Management and Budget
Washington, D. C. 20503
Dear Mr. Ash:
In compliance with your request, I have examined a
facsimile of the enrolled bill H.R. 13264, "To amend the pro-
visions of the Perishable Agricultural Commodities Act, 1930,
relating to practices in the marketing of perishable agricul-
tural commodities."
The Perishable Agricultural Commodities Act, 1930,
as amended (7 U.S.C. 499a-499s) provides for the regulation
of commercial trade practices in the marketing of fresh and
frozen fruits and vegetables and aids in the enforcement of
contracts for the marketing of such commodities. The statute
provides for the licensing of firms doing business in the
industry and provides for the suspension or revocation of a
firm's license for a number of different violations in addition
to recovery of damages by injured parties.
The amendment proposed by H.R. 13264 would allow a
firm accused of violating one provision of the statute
(7 U.S.C. 499b(5)) the option, with the consent of the Secre-
tary of Agriculture, of admitting the violation and paying a
monetary penalty not to exceed $2,000 in lieu of a formal pro-
ceeding for the license suspension or revocation.
The Department of Justice defers to the Department
of Agriculture concerning whether this bill should receive
Executive approval.
GERALD R. LEBRARY FORD
W. Vincent Rakestraw
Assistant Attorney General
OF
THE
THE TREASURY
THE GENERAL COUNSEL OF THE TREASURY
WASHINGTON, D.C. 20220
1789
AUG 5 1974
Director, Office of Management and Budget
Executive Office of the President
Washington, D.C. 20503
Attention: Assistant Director for Legislative
Reference
Sir:
Reference is made to your request for the views of
this Department on the enrolled enactment of H.R. 13264,
"To amend the provisions of the Perishable Agricultural
Commodities Act, 1930, relating to practices in the
marketing of perishable agricultural commodities."
The enrolled enactment would amend the Perishable
Agricultural Commodities Act to provide a monetary penalty
not to exceed $2,000 for certain violations of the Act.
Any payment so made would be deposited into the Treasury
of the United States as miscellaneous receipts. The
legislation was proposed by the Department of Agriculture.
The Department would have no objection to a recommenda-
tion that the enrolled enactment be approved by the
President.
Sincerely yours,
FORD LIBRARY 'y BERRLD
General Counsel
THE CHAIRMAN OF THE
COUNCIL OF ECONOMIC ADVISERS
WASHINGTON
August 5, 1974
Dear Mr. Rommel:
The Council of Economic Advisers has no objections
to the President's signing H.R. 13264, a bill "To amend
the provisions of the Perishable Agricultural Commodities
Act, 1930, relating to practices in the marketing of
perishable agricultural commodities. "
Sincerely,
Herbert Sten
Herbert Stein
GERALD FORD LIBRARY
Mr. Wilfred H. Rommel
Assistant Director
for Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
AMERICAN REVOLUTION WENTENNING
1776-1976
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 93-1130
PERISHABLE AGRICULTURAL COMMODITIES ACT
AMENDMENT
JUNE 20, 1974.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. POAGE, from the Committee on Agriculture,
submitted the following
GERALD LIBRARY FORD
REPORT
[To accompany H.R. 13264]
The Committee on Agriculture, to whom was referred the bill
(H.R. 13264) to amend the provisions of the Perishable Agricultural
Commodities Act, 1930, relating to practices in the marketing of per-
ishable agricultural commodities, having considered the same, reports
favorably thereon without amendment and recommends that the bill
do pass.
PURPOSE
H.R. 13264 would amend the Perishable Agricultural Commodities
Act to allow the imposition of a monetary penalty for misbranding,
or misrepresenting fruits and vegetables shipped, sold, or offered for
sale in interstate or foreign commerce.
This bill would also permit the Secretary of Agriculture to allow
persons who have violated the law, by misrepresenting fresh or mis-
branding fresh fruits or vegetables sold in interstate or foreign com-
merce, to admit the violation and pay a monetary penalty, not to
exceed $2,000, in lieu of a formal proceeding for the suspension or
revocation of the violator's license.
BACKGROUND
Fruits and vegetables-being highly perishable-need to be har-
vested, packed, and distributed quickly. People in the fast-moving,
financially hazardous produce business must rely on the honesty and
good faith of those they trade with.
Encouraging fair trading practices in this business is the purpose
of the Perishable Agricultural Commodities Act-or "PACA." This
Federal law prohibits unfair and fraudulent practices in the market-
ing of fresh and frozen fruits and vegetables and sets penalties for
99-006
2
3
violation. It provides for collecting damages from anyone who fails
COMMITTEE CONSIDERATION
to live up to his contract obligations.
The produce industry realized the need for a code of fair trading
On May 23, 1974, the Domestic Marketing and Consumer Relations
standards many years ago. At the industry's request, PACA was
Subcommittee of the Agriculture Committee held open public hear-
passed by Congress in 1930. Since then, it has been amended a number
of times to keep it in step with changing trade practices. PACA is
ings on H.R. 13264, and in open business meeting on June 4 ordered
administered by the Consumer and Marketing Service of the U.S.
the bill to be reported to the full committee by a voice vote. In an open
Department of Agriculture, through its Fruit and Vegetable Division.
business meeting on June 11, 1974, in the presence of a quorum, the
Because of the highly perishable nature of fresh fruits and vege-
full committee, by a voice vote, ordered H.R. 13264 favorably reported
to the House.
tables, rapid harvesting, packing, and distribution are essential. It is a
ADMINISTRATION POSITION
financially hazardous business due to the risks of weather, uncertain
growing conditions, and unpredictable fluctuations in market prices.
H.R. 13264, introduced by Mr. Sisk, is identical to the legislative
There are many opportunities for unethical persons to take advantage
proposal included in Executive Communication No. 1665, which reads
of these conditions and engage in unfair and fraudulent practices.
as follows:
Enforcement of the Act is through a system of licenses. Commission
DEPARTMENT OF AGRICULTURE,
merchants, brokers, and dealers, including certain retailers and proces-
OFFICE OF THE SECRETARY,
sors, operating subject to the Act are required to be licensed by the
Washington, D.C., December 21, 1973.
Department of Agriculture.
A retailer is subject to licensing when the invoice cost of all his pur-
Hon. CARL ALBERT,
chases of fresh and frozen fruits and vegetables during a calendar year
Speaker of the House of Representatives.
exceeds $100,000. In computing this dollar volume, all purchases are
DEAR MR. SPEAKER: Enclosed for consideration by the Congress is
to be counted regardless of the size of the lot involved or whether
a draft of a proposed bill to amend Section 2(5) of the Perishable
the transaction was in interstate, intrastate, or foreign commerce.
Agricultural Commodities Act, 1930, relating to unfair practices in
Misrepresentations of grade, quality, quantity, weight, or State of
the marketing of perishable agricultural commodities.
origin of fruits and vegetables in interstate or foreign commerce are
The proposed bill would amend the Perishable Agricultural Com-
prohibited. PACA does not require anv particular markings on con-
modities Act to provide the option of imposing either a monetary pen-
tainers. but those that are used must be accurate. Anyone shipping
alty, not to exceed $2,000, for violations of the misbranding provisions
misbranded produce may find that the buyer is entitled to reject it or
of the Act, or institution of a formal proceeding for suspension or rev-
to correct the misbranding at the shipper's expense. A licensee who
ocation of the license issued under this Act to trade in the fruit and
violates the law by misbranding is subject to USDA disciplinary ac-
vegetable industry. The only penalties which can presently be imposed
tion, which, under the present Act, can result in suspension or loss of
for such violations are public disclosure of the facts and circumstances
his license.
and/or the suspension or revocation of the license of the violator.
The person charged with the violation may be ordered to pay a
In utilizing the monetary penalty option, if the law is revised as set
reparation award. If he does not pay the award. or file an appeal in a
forth in the proposed amendment, we would expect that in most in-
U.S. District Court within 30 days from the date of the order, his
stances a warning letter would be issued on the first violation by a li-
license is suspended automatically, and he may not continue in business
censee. Monetary penalties would be assessed for violations after the
nor be employed by another PACA licensee. His only alternative to this
first violation, where the violator and this Department consent to such
is to file an appeal in a U.S. District Court within 30 days from the date
procedure. The amount of the penalty assessed will depend on the
of the order.
nature of the violation. As we gain experience in this area, we will be
NEED
able to judge the amount of penalty which best acts as a deterrent to
possible violators. The authority to assess monetary penalties, if
The addition of authority to impose a monetary penalty. as proposed
granted, will fill a gap in the law where either no penalty is imposed
by H.R. 13264, to the Perishable Agricultural Commodities Act of
or suspension or revocation of the license is ordered. It is understood
1930 would give the Secretary the flexibility to bring about a substan-
that the monetary penalty provision is to be in addition to other pen-
tial reduction in the number of repeated violations by dealers. It would
alties provided in the law, and that the violations on which monetary
result in greater efficiency in administering the act by minimizing the
penalties are assessed may be used as a part of the evidence to support
necessity of formal action against licensees. It would provide an option
an action to suspend or revoke the license of a person who engages in
of imposing either a monetary penalty, not to exceed $2,000 for mis-
repeated and/or flagrant violations of this provision of the Act.
branding violations, or the institution of formal proceedings for sus-
The proposed bill has been considered by the PACA-Industry Ad-
pension or revocation of the violator's license. However, it does retain
visory Committee, an official advisory committee representing the
the Act's sanction of suspension or revocation if violations are flagrant
various segments of the fruit and vegetable industry and established
or repeated. This bill would thus afford a greater measure of protection
by the Department to counsel on all aspects of the Perishable Agri-
to the public caused by misbranding and misrepresentation.
cultural Commodities Act. The Committee has recommended its
enactment.
H.R. 1130
H.R. 1130
4
5
The proposed legislation would not result in an increase in the cost
PERISHABLE AGRICULTURAL COMMODITIES ACT OF 1930, AS AMENDED
of living or in an increase in food costs to consumers. Consumers would
benefit if the legislation is adopted, since deterrence of misbranding
(7 U.S.C. 499a et seq)
and misrepresentation offers a measure of consumer protection.
*
*
Adoption of the proposed legislation should not result in an increase
in the cost of administration of the Perishable Agricultural Commod-
§ 499b. UNFAIR CONDUCT
ities Act. Monetary penalties paid for violations of the misbranding
It. shall be unlawful in or in connection with any transaction in
provisions of the Act would be deposited into the Treasury of the
interstate or foreign commerce-
United States as miscellaneous receipts.
(1) For any commission merchant, dealer, or broker to engage in or
In accordance with the provisions of Public Law 91-190, Section
use any unfair, unreasonable, discriminatory, or deceptive practice in
102 (C) this proposed legislation would have no significant impact
connection with the weighing, counting, or in any way determining the
upon the quality of the environment.
quantity of any perishable agricultural commodity received, bought,
The Office of Management and Budget advised that there is no ob-
sold, shipped, or handled in interstate or foreign commerce;
jection to the presentation of this draft bill from the standpoint of
(2) For any dealer to reject or fail to deliver in accordance with
the Administration's program.
the terms of the contract without reasonable cause any perishable
Sincerely,
agricultural commodity bought or sold or contracted to be bought, sold,
J. PHIL CAMPBELL,
or consigned in interstate or foreign commerce by such dealer;
Under Secretary.
(3) For any commission merchant to discard, dump, or destroy with-
Enclosure.
out reasonable cause, any perishable agricultural commodity received
sold, shipped, or handled in interstate or foreign commerce;
A BILL To amend the provisions of the Perishable Agricultural Com-
(4) For any commission merchant, dealer, or broker to make, for
modities Act, 1930, relating to practices in the marketing of perish-
a fraudulent purpose, any false or misleading statement in connection
able agricultural commodities
with any transaction involving any perishable agricultural commodity
Be it enacted by the Senate and IIouse of Representatives
which is received in interstate or foreign commerce by such commission
of the United ,States of America in Congress assembled,
merchant, or bought or sold, or contracted to be bought, sold, or con-
That subsection (5) of Section 2 of the Perishable Agricul-
signed, in such commerce by such dealer, or the purchase or sale of
tural Commodities Act, 1930, as amended (7 U.S.C. 499b (5)
which in such commerce is negotiated by such broker; or to fail or re-
is hereby amended by striking out the semicolon at the end
fuse truly and correctly to account and make full payment promptly in
thereof and substituting a colon and the following: "Pro-
respect of any transaction in any such commodity to the person with
vided, That any commission merchant, dealer or broker who
whom such transaction is had; or to fail, without reasonable cause, to
has violated this subsection may, with the consent of the
perform any specification or duty, express or implied, arising out of
Secretary, admit the violation or violations and pay a mone-
any undertaking in connection with any such transaction;
tary penalty not to exceed $2,000 in lieu of a formal pro-
(5) For any commission merchant, dealer, or broker to misrepre-
ceeding for the suspension or revocation of license, any pay-
sent by word, act, mark, stencil, label, statement, or deed, the char-
ment SO made to be deposited into the Treasury of the United
acter, kind, grade, quality, quantity, size, pack, weight, condition,
States as miscellaneous receipts;".
degree of maturity, or State, country, or region of origin of any per-
ishable agricultural commodity received, shipped, sold, or offered to
CURRENT AND FIVE SUBSEQUENT FISCAL YEAR COST ESTIMATE
be sold in interstate or foreign commerce[ : Provided, That any com-
mission merchant, dealer, or broker who has violated this subsection
Pursuant to clause 7 of rule XIII of the Rules of the House of
may, with the consent of the Secretary, admit the violation or viola-
Representatives, the committee estimates no cost will be incurred by
tions and pay a monetary penalty not to exceed $2,000 in lieu of a
the Federal Government during the current and the five subsequent
formal proceeding for the suspension or revocation of license, any
fiscal years as a result of the enactment of this legislation. The same
payment 80 made to be deposited into the Treasury of the United
cost estimate was submitted to the committee by the Department of
States as miscellaneous receipts;
Agriculure.
(6) For any commission merchant, dealer, or broker, for a fraud-
CHANGES IN EXISTING LAW
ulent purpose, to remove, alter, or tamper with any card, stencil,
stamp, tag, or other notice placed upon any container or railroad
In compliance with clause 3 of rule XIII of the Rules of the
car containing any perishable agricultural commodity, if such card,
House of Representatives, changes in existing law made by the bill
stencil, stamp, tag, or other notice contains a certificate or statement
are shown as follows (existing law proposed to be omitted is enclosed
under authority of any Federal or State inspector or in compliance
in black brackets, new matter is printed in italic, and existing law in
with any Federal or State law or regulation as to the grade or quality
which no change is proposed is shown in roman)
H.R. 1130
H.R. 1130
6
of the commodity contained in such container or railroad car or the
State or country in which such commodity was produced;
(7) For any commission merchant, dealer or broker, without the
consent of an inspector, to make, cause, or permit to be made any
change by way of substitution or otherwise in the contents of a load or
lot of any perishable agricultural commodity after it has been officially
inspected for grading and certification, but this shall not prohibit re-
sorting and discarding inferior produce.
H.R. 1130
Calendar No. 994
93D CONGRESS
SENATE
REPORT
2d Session
No. 93-1036
PERISHABLE AGRICULTURAL COMMMODITIES ACT
AMENDMENT
FORD
JULY 29, 1974.-Ordered to be printed
GERALD
LIBRARY
Mr. HUDDLESTON, from the Committee on Agriculture and Forestry,
submitted the following
REPORT
[To accompany H.R. 13264]
The Committee on Agriculture and Forestry, to which was referred
the bill (H.R. 13264) to amend the provisions of the Perishable Agri-
cultural Commodities Act, 1930, relating to practices in the market-
ing of perishable agricultural commodities, having considered the
same, reports favorably thereon without amendment and recommends
that the bill do pass.
SHORT EXPLANATION
This bill would amend the Perishable Agricultural Commodities
Act to allow the imposition of a monetary penalty on those who violate
the law by misbranding, or misrepresenting fruits and vegetables
shipped, sold, or offered for sale in interstate or foreign commerce. A
penalty not to exceed $2,000 could be imposed on those who violate
the law and SO admit, in lieu of a formal proceeding for the suspen-
sion or revocation of the violator's license.
BACKGROUND AND NEED
This is a request bill and identical to S. 2946 which was introduced
on February 4, 1974.
This bill would permit the Secretary to allow a person who has
violated the Perishable Agricultural Commodities Act by misbranding
or misrepresenting fresh and frozen fruits and vegetables sold in inter-
state or foreign commerce to admit the violation and pay a monetary
penalty, not to exceed $2,000, in lieu of a formal proceeding for the
suspension or revocation of the violator's license.
38-010
3
дее
2
the first violation is reported. This warning would also serve to satisfy
The basic objective of the Act is to establish a code of fair trading
the requirements of the Administrative Procedure Act that a violator
practices in the marketing of fresh and frozen fruits and vegetables
be given warning in writing before any disciplinary action is taken
and enforcement of contracts for marketing these commodities. Among
which could result in a suspension or revocation of license. The De-
the unlawful trade practices under this Act is to misbrand or mis-
partment's present thinking is that a fine would be imposed for the
represent by word, act, mark, stencil, label, statement, or deed the
first violation following a written warning, and thereafter fines would
character, kind, grade, quality, quantity, size, pack, weight, condition,
be increased based on the severity of each subsequent violation. This
vegetables. degree of maturity, or State, country or region of origin of fruits and
deterrent will afford a greater measure of protection to the public
caused by misbranding and misrepresentation.
There are two main phases of activity in administering the Act. In
The Committee was informed that adding a provision for monetary
the first phase, the Secretary deals with reparation cases in which he
penalty for misbranding and misrepresentation was considered at
decides disputes involving claims for financial damages resulting from
length by the PACA-Industry Advisory Committee at its annual
any violation of the fair trading principles.
meetings in February 1973 and 1974. The Advisory Committee is an
The seçond phase of activity relates to disciplinary measures. These
official group appointed by the Secretary of Agriculture and is repre-
include administrative proceedings by the Sceretary to suspend or re-
sentative of all segments of the fruit and vegetable industry. The
voke licenses for repeated or flagrant violations of the Act, and court
group recommended that monetary penalties be added for misbrand-
actions to collect civil penaltiés for operating without a license, to-
ing and that the penalty be imposed within a stated maximum without
gether with injunctions to restrain further operations. It is with the
the necessity of a formal proceeding.
disciplinary provisions of the law that H.R. 13264 is concerned.
Suspension or revocation of license is the only sanction which can
COST ESTIMATE
be imposed upon a licensee for violating the law. The shipment, sale
or offer for sale in interstate commerce of produce which is misrepre-
In accordance with section 252 of the Legislative Reorganization
sented as to quality, quantity, size, or weight, is a serious violation of
Act of 1970, the Committee concurs with the Department's estimate
the law. However, if it is not repeated or flagrant, it may not neces-
that there should be no increase in costs. Monetary penalties paid for
sarily warrant compelling a firm to cease business operations.
violations would be deposited into the Treasury of the United States
When evidence is developed that there has been a violation, a written
as miscellaneous receipts.
warning is given to the violator, calling his attention to the misbrand-
ing provisions of the law, the nature of the misrepresenation found,
DEPARTMENTAL VIEWS
and affording him the opportunity to show either that he did not vio-
late the Act, or if he did violate, that he is taking specific corrective
DEPARTMENT OF AGRICULTURE,
action. Additional warnings may be sent for subsequent violations.
OFFICE OF THE SECRETARY,
Disciplinary action is instituted against a firm when there is an ac-
Washington, D.C., December 21, 1973.
cumulation of violations sufficient to indicate a disregard for lawful
Hon. CARL ALBERT,
requirements. When evidence of repeated or flagrant violations is
Speaker of the House of Representatives.
found, a disciplinary action to suspend or revoke the violator's license
DEAR MR. SPEAKER: Enclosed for consideration by the Congress is
is instituted. During fiscal year 1973, there were numerous infractions
a draft of a proposed bill to amend Section 2(5) of the Perishable
of the misbranding provisions of the law, many of which were repeat
Agricultural Commodities Act, 1930, relating to unfair practices in
violations. Even though the firms involved declared their intention to
the marketing of perishable agricultural commodities.
take corrective action upon receipt of a warning letter, many did not
The proposed bill would amend the Perishable Agricultural Com-
follow through and subsequently violated the law.
modities Act to provide the option of imposing either a monetary pen-
Because experience shows that many licensees are not deterred by a
alty, not to exceed $2,000, for violations of the misbranding provisions
series of warnings, the addition of a monetary penalty, as provided in
of the Act, or institution of a formal proceeding for suspension or rev-
H.R. 13264 should cause a substantial reduction in repeated violations
ocation of the license issued under this Act to trade in the fruit and
by dealers. Under the proposed legislation, monetary penalties could
vegetable industry. The only penalties which can presently be imposed
be imposed by the Department informally if the licensee admits the
for such violations are public disclosure of the facts and circumstances
violation and action has been taken to correct the misbranding, with-
and/or the suspension or revocation of the license of the violator.
out the necessity for formal action against the licensèe. This would
In utilizing the monetary penalty option, if the law is revised as set
not, however, bar the sanction of suspension or revocation of license
forth in the proposed amendment, we would expect that in most in-
if the violations are flagrant or repeated. Funds derived from mone-
stances a warning letter would be issued on the first violation by a li-
receipts. tary penalties would be deposited in the Treasury as miscellaneous
censee. Monetary penalties would be assessed for violations after the
first violation, where the violator and this Department consent to such
The Committee understands that the Department proposes to con-
procedure. The amount of the penalty assessed will depend on the
tinue to issue written warnings as a possible deterrent at the time
S.R. 1036
S.R. 1036
4
5
nature of the violation. As we gain experience in this area, we will be
CHANGES IN EXISTING Law
able to judge the amount of penalty which best acts as a deterrent to
possible violators. The authority to assess monetary penalties, if
In compliance with subsection (4) of rule XXIX of the Standing
granted, will fill a gap in the law where either no penalty is imposed
Rules of the Senate, changes in existing law made by the bill, as re-
or suspension or revocation of the license is ordered. It is understood
ported, are shown as follows (existing law proposed to be omitted is
that the monetary penalty provision is to be in addition to other pen-
enclosed in black brackets, new matter is printed in italic, existing law
alties provided in the law, and that the violations on which monetary
in which no change is proposed is shown in roman)
penalties are assessed may be used as a part of the evidence to support
an action to suspend or revoke the license of a person who engages in
PERISHABLE AGRICULTURAL COMMODITIES ACT OF 1930, AS AMENDED
repeated and/or flagrant violations of the provision of the Act.
The proposed bill has been considered by the PACA-Industry Ad-
(7 U.S.C. 499a et seq)
visory Committee, an official advisory committee representing the
various segments of the fruit and vegetable industry and established
by the Department to counsel on all aspects of the Perishable Agri-
§ 499b. UNFAIR CONDUCT
cultural Commodities Act. The Committee has recommended its
It shall be unlawful in or in connection with any transaction in
enactment.
interstate or foreign commerce-
The proposed legislation would not result in an increase in the cost
(1) For any commission merchant, dealer, or broker to engage in or
of living or in an increase in food costs to consumers. Consumers would
use any unfair, unreasonable, discriminatory, or deceptive practice in
benefit if the legislation is adopted, since deterrence of misbranding
connection with the weighing, counting, or in any way determining the
and misrepresentation offers a measure of consumer protection.
quantity of any perishable agricultural commodity received, bought,
Adoption of the proposed legislation should not result in an increase
sold, shipped, or handled in interstate or foreign commerce;
in the cost of administration of the Perishable Agricultural Commod-
*
*
*
ities Act. Monetary penalties paid for violations of the misbranding
provisions of the Act would be deposted into the Treasury of the
(5) For any commission merchant, dealer, or broker to misrepre-
sent by word, act, mark, stencil, label, statement, or deed, the char-
United States as miscellaneous receipts.
In accordance with the provisions of Public Law 91-190, Section
acter, kind, grade, quality, quantity, size, pack, weight, condition,
102 (2) (C) this proposed legislation would have no significant impact
degree of maturity, or State, country, or region of origin of any per-
ishable agricultural commodity received, shipped, sold, or offered to
upon the quality of the environment.
The Office of Management and Budget advised that there is no ob-
be sold in interstate or foreign commerce[] Provided, That any
jection to the presentation of this draft bill from the standpoint of
commission merchant, dealer, or broker who has violated this subsec-
tion may, with the consent of the Secretary, admit the violation or
the Administration's program.
violations and pay a monetary penalty not to exceed $2,000 in lieu of a
Sincerely,
J. PHIL CAMPBELL,
formal proceeding for the suspension or revocation of license, any
Under Secretary.
payment so made to be deposited into the Treasury of the United
States as miscellaneous receipts;
Enclosure.
*
*
A BILL To amend the provisions of the Perishable Agricultural Com-
(7) For any commission merchant, dealer or broker, without the
modities Act, 1930, relating to practices in the marketing of perish-
consent of an inspector, to make, cause, or permit to be made any
able agricultural commodities
change by way of substitution or otherwise in the contents of a load or
Be it enacted by the Senate and House of Representatives
lot of any perishable agricultural commodity after it has been officially
of the United States of America in Congress assembled,
inspected for grading and certification, but this shall not prohibit re-
That subsection (5 of Section 2 of the Perishable Agricul-
sorting and discarding inferior produce.
tural Commodities Act, 1930, as amended (7 U.S.C.
is hereby amended by striking out the semicolon at the end
thereof and substituting a colon and the following: "Pro-
vided, That any commission merchant, dealer or broker who
has violated this subsection may, without the consent of the
Secretary, admit the violation or violations and pay a mone-
tary penalty not to exceed $2,000 in lieu of a formal pro-
ceeding for the suspension or revocation of license, any pay-
ment so made to be deposited into the Treasury of the United
States as miscellaneous receipts;".
S.R. 1036
S.R. 1036
H.R. 13264
Ainety-third Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-first day of January,
one thousand nine hundred and seventy-four
LIBRARY
An Act
FORD
To amend the provisions of the Perishable Agricultural Commodities Act, 1930,
relating to practices in the marketing of perishable agricultural commodities.
GERALD
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That subsection (5)
of section 2 of the Perishable Agricultural Commodities Act, 1930, as
amended (7 U.S.C. 499b(5)), is hereby amended by striking out the
semicolon at the end thereof and substituting a colon and the follow-
ing: "Provided, That any commission merchant, dealer, or broker who
has violated this subsection may, with the consent of the Secretary,
admit the violation or violations and pay a monetary penalty not to
exceed $2,000 in lieu of a formal proceeding for the suspension or
revocation of license, any payment SO made to be deposited into the
Treasury of the United States as miscellaneous receipts;".
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
H.R. 13264
Ainety-third Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-first day of January,
FITHM THE
one thousand nine hundred and seventy-four
RECEIVED
AUG 2 1974
An Act
To amend the provisions of the Perishable Agricultural Commodities Act, 1930,
relating to practices in the marketing of perishable agricultural commodities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That subsection (5)
of section 2 of the Perishable Agricultural Commodities Act, 1930, as
amended (7 U.S.C. 499b(5)), is hereby amended by striking out the
semicolon at the end thereof and substituting a colon and the follow-
ing: "Provided, That any commission merchant, dealer, or broker who
has violated this subsection may, with the consent of the Secretary,
admit the violation or violations and pay a monetary penalty not to
exceed $2,000 in lieu of a formal proceeding for the suspension or
revocation of license, any payment so made to be deposited into the
Treasury of the United States as miscellaneous receipts;".
Lare albert
Speaker of the House of Representatives.
Vive President of the United States and
APPROVED
acting President of the Senate pro Temper
AUG 1 1974
R. Fl
GERALD FORD LIBRARY
August 2, 1974
Dear Mr. Director:
The following bills were received at the White
House on August 2nd:
H.R. 8217
H.R. 10309
H.R. 13264
Please let the President have reports and
recommendations as to the approval of these
bills as soon as possible.
Sincerely,
Robert D. Linder
FORD LIBRARY & GERALD
Chief Executive Clerk
The Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D. C.