Ask the Scholar

{
    "localId": "1668626",
    "label": "1974/08/10 HR13264 Perishable Agricultural Commodities",
    "core": "doc",
    "dtoType": "document",
    "citationUrl": "https://catalog.archives.gov/id/1668626"
}

{
    "id": "1668626",
    "sourceUrl": "https://catalog.archives.gov/id/1668626",
    "contentType": "document",
    "title": "1974/08/10 HR13264 Perishable Agricultural Commodities",
    "citationUrl": "https://catalog.archives.gov/id/1668626",
    "collections": [
        "White House Records Office: Legislation Case Files",
        "Legislation Case Files"
    ],
    "subjects": [
        "Legislation",
        "Produce trade"
    ],
    "iiifBase": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/26/6686/1668626/content/library/document/0055/1668626.pdf",
    "thumbnailUrl": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/26/6686/1668626/content/library/document/0055/1668626.pdf",
    "largeImageUrl": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/26/6686/1668626/content/library/document/0055/1668626.pdf",
    "imageCount": 1,
    "hasImages": true,
    "source": "import",
    "hasTranscription": false
}

{
    "url": "https://catalog.archives.gov/id/1668626",
    "naId": 1668626,
    "coverageEndDate": {
        "logicalDate": "1974-08-31",
        "month": 8,
        "year": 1974
    },
    "coverageStartDate": {
        "logicalDate": "1974-08-01",
        "month": 8,
        "year": 1974
    },
    "levelOfDescription": "fileUnit",
    "recordType": "description",
    "ocrSource": "nara-archive"
}

{
    "seq": 1,
    "pageIndex": 0,
    "type": "document",
    "url": "https://s3.amazonaws.com/NARAprodstorage/opastorage/live/26/6686/1668626/content/library/document/0055/1668626.pdf",
    "mediaId": "0a2ddcf89a68e45e",
    "ocrText": "The original documents are located in Box 1, folder \"8/10/74 HR13264 Perishable\nAgricultural Commodities\" of the White House Records Office: Legislation Case Files at\nthe Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nExact duplicates within this folder were not digitized.\nDigitized from Box 1 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library\nAPPROVE 1974\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nAUG 7 1974\nThio inthe\nfint hee signed\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 13264 - Perishable agricultural\nby find\ncommodities\nSponsor - Rep. Sisk (D) California\nPosted\nLast Day for Action\n8/11\nFORD i LIBRARY GERALD\nAugust 14, 1974 - Wednesday\nTo archives\nPurpose\n8/12\nProvides variable penalties for certain violations of the\nPerishable Agricultural Commodities Act.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Agriculture\nApproval\nDepartment of Justice\nDefers to Agriculture\nDepartment of the Treasury\nNo objection\nCouncil of Economic Advisers\nNo objection\nDiscussion\nUnder provisions of the Perishable Agricultural Commodities\nAct, it is unlawful to misbrand perishable agricultural\ncommodities shipped, sold or offered for sale in interstate\nor foreign commerce. The Act requires all merchants, brokers,\nand dealers who deal in such perishable agricultural commodities\nto be licensed by the Department of Agriculture. The only\npenalties which can presently be imposed for such violations\nare public disclosure of the facts and circumstances and/or the\nsuspension or revocation of the license of the violator.\n2\nThe Department of Agriculture's experience with administering\nthe Act led it to believe that the law was too inflexible.\nViolators were given either no penalty in one case or their\nlicense was suspended or revoked in another instance -- a gap\nexisted for violations which warranted an intermediate penalty.\nIn order to remedy this situation, Agriculture submitted to the\nCongress a draft bill to amend the Perishable Agricultural\nCommodities Act. The Agriculture bill provided that violators,\nwith the consent of the Secretary, may admit their violations\nand pay a monetary penalty not to exceed $2,000 in lieu of a\nformal suspension or revocation proceeding. Payments so made\nwould be deposited into the treasury as miscellaneous receipts.\nThe enrolled bill is identical to the Agriculture proposal\ndescribed above.\nIn reporting on H.R. 13264, the House Agriculture Committee\nstated that the bill:\n\"\nwould give the Secretary the flexibility\nto bring about a substantial reduction in the\nnumber of repeated violations by dealers. It\nwould result in greater efficiency in administering\nthe act by minimizing the necessity of formal action\nagainst licensees.\"\nGERALD FORD LIBRARY\nWilfred H Romand\nAssistant Director for\nLegislative Reference\nEnclosures\nSTATES DEPARTMENT OF GRACULTURE\nDEPARTMENT OF AGRICULTURE\nOFFICE OF THE SECRETARY\nWASHINGTON, D. C. 20250\nGERALD FORD LIBRARY\nAugust 6, 1974\nHonorable Roy L. Ash, Director\nOffice of Management and Budget\nDear Mr. Ash:\nThis is to report on the enrolled enactment of H.R. 13264, a bill to amend\nthe provisions of the Perishable Agricultural Commodities Act, 1930, relating\nto practices in the marketing of perishable agricultural commodities.\nThis Department recommends that the President approve H.R. 13264.\nThe bill would amend Section 2(5) of the Perishable Agricultural Commodities\nAct to permit the Secretary the option of allowing a person who has violated\nthe law by misbranding and misrepresenting fresh and frozen fruits or vege-\ntables sold in interstate or foreign commerce to admit the violation and pay\na monetary penalty, not to exceed $2,000, in lieu of a formal disciplinary\nproceeding for the suspension or revocation of the violator's license.\nThe only penalties which can presently be imposed for such violations under\nthe PACA are the suspension or revocation of the license of the violator.\nExperience shows that many licensees are not deterred by a warning or series\nof warnings but only by the risk of a serious penalty. The addition of a\nmonetary penalty, as provided in H.R. 13264, should cause a substantial reduc-\ntion in repeated misbranding violations.\nConsumers, as well as the distributive trade, would benefit if the legisla-\ntion is adopted, since deterrence of misbranding and misrepresentation offers\na measure of consumer protection.\nSincerely,\nRICHARD A. ASHWORTH\nDeputy Under Secretary\nSSISTANT<ATTORNEY GENERAL\nLEGISLATIVE AFFAIRS\nDepartment of Justice\nWashington, D.C. 20530\nAUG 5 1974\nHonorable Roy L. Ash\nDirector, Office of\nBERALD FORD LIBRARY\nManagement and Budget\nWashington, D. C. 20503\nDear Mr. Ash:\nIn compliance with your request, I have examined a\nfacsimile of the enrolled bill H.R. 13264, \"To amend the pro-\nvisions of the Perishable Agricultural Commodities Act, 1930,\nrelating to practices in the marketing of perishable agricul-\ntural commodities.\"\nThe Perishable Agricultural Commodities Act, 1930,\nas amended (7 U.S.C. 499a-499s) provides for the regulation\nof commercial trade practices in the marketing of fresh and\nfrozen fruits and vegetables and aids in the enforcement of\ncontracts for the marketing of such commodities. The statute\nprovides for the licensing of firms doing business in the\nindustry and provides for the suspension or revocation of a\nfirm's license for a number of different violations in addition\nto recovery of damages by injured parties.\nThe amendment proposed by H.R. 13264 would allow a\nfirm accused of violating one provision of the statute\n(7 U.S.C. 499b (5) ) the option, with the consent of the Secre-\ntary of Agriculture, of admitting the violation and paying a\nmonetary penalty not to exceed $2,000 in lieu of a formal pro-\nceeding for the license suspension or revocation.\nThe Department of Justice defers to the Department\nof Agriculture concerning whether this bill should receive\nExecutive approval.\nWhakestra\nW. Vindent Rakestraw\nAssistant Attorney General\nDEPARTMENT OF THE\nTHE 1789 TREASURY\nTHE GENERAL COUNSEL OF THE TREASURY\nWASHINGTON, D.C. 20220\nAUG 5 1974\nDirector, Office of Management and Budget\nExecutive Office of the President\nWashington, D.C. 20503\nGERALD FORD ALBRARY\nAttention: Assistant Director for Legislative\nReference\nSir:\nReference is made to your request for the views of\nthis Department on the enrolled enactment of H.R. 13264,\n\"To amend the provisions of the Perishable Agricultural\nCommodities Act, 1930, relating to practices in the\nmarketing of perishable agricultural commodities.\"\nThe enrolled enactment would amend the Perishable\nAgricultural Commodities Act to provide a monetary penalty\nnot to exceed $2,000 for certain violations of the Act.\nAny payment so made would be deposited into the Treasury\nof the United States as miscellaneous receipts. The\nlegislation was proposed by the Department of Agriculture.\nThe Department would have no objection to a recommenda-\ntion that the enrolled enactment be approved by the\nPresident.\nSincerely yours,\nGeneral Counsel\nTHE CHAIRMAN OF THE\nCOUNCIL OF ECONOMIC ADVISERS\nWASHINGTON\nAugust 5, 1974\nFORD LIBRARY\nDear Mr. Rommel:\nThe Council of Economic Advisers has no objections\nto the President's signing H.R. 13264, a bill \"To amend\nthe provisions of the Perishable Agricultural Commodities\nAct, 1930, relating to practices in the marketing of\nperishable agricultural commodities.\"\nSincerely,\nHerbert Sten\nHerbert Stein\nMr. Wilfred H. Rommel\nAssistant Director\nfor Legislative Reference\nOffice of Management and Budget\nWashington, D. C. 20503\nAMERICAN REVOLUTION INFONTENNAL\n1776-1976\nHindrika\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nAUG\n7\n1974\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 13264 - Perishable agricultural\ncommodities\nSponsor - Rep. Sisk (D) California\nFORD\nLast Day for Action\nGERALD\nLIBRARY\nAugust 14, 1974 - Wednesday\nPurpose\nProvides variable penalties for certain violations of the\nPerishable Agricultural Commodities Act.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Agriculture\nApproval\nDepartment of Justice\nDefers to Agriculture\nDepartment of the Treasury\nNo objection\nCouncil of Economic Advisers\nNo objection\nDiscussion\nUnder provisions of the Perishable Agricultural Commodities\nAct, it is unlawful to misbrand perishable agricultural\ncommodities shipped, sold or offered for sale in interstate\nor foreign commerce. The Act requires all merchants, brokers,\nand dealers who deal in such perishable agricultural commodities\nto be licensed by the Department of Agriculture. The only\npenalties which can presently be imposed for such violations\nare public disclosure of the facts and circumstances and/or the\nsuspension or revocation of the license of the violator.\n2\nThe Department of Agriculture's experience with administering\nthe Act led it to believe that the law was too inflexible.\nViolators were given either no penalty in one case or their\nlicense was suspended or revoked in another instance -- a gap\nexisted for violations which warranted an intermediate penalty.\nIn order to remedy this situation, Agriculture submitted to the\nCongress a draft bill to amend the Perishable Agricultural\nCommodities Act. The Agriculture bill provided that violators,\nwith the consent of the Secretary, may admit their violations\nand pay a monetary penalty not to exceed $2,000 in lieu of a\nformal suspension or revocation proceeding. Payments SO made\nwould be deposited into the treasury as miscellaneous receipts.\nThe enrolled bill is identical to the Agriculture proposal\ndescribed above.\nIn reporting on H.R. 13264, the House Agriculture Committee\nstated that the bill:\n\"\nwould give the Secretary the flexibility\nto bring about a substantial reduction in the\nnumber of repeated violations by dealers. It\nwould result in greater efficiency in administering\nthe act by minimizing the necessity of formal action\nagainst licensees.\"\nR FORD LIBRARY\n(signed) Wilfred H. Rommel\nAssistant Director for\nLegislative Reference\nEnclosures\nTHE WHITE HOUSE\nWASHINGTON\nENROLLED BILL\nSUBJECT: Enrolled Bill H.R. 13264 - Perishable\nAgricultural Commodities\nName\nApproval\nDate\nMichael Duval\nYes\nFred Buzhardt\nYes\nBill Timmons\nYes\nKen Cole\nFORD\nGERALD\nComments:\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 495\nDate: August 7, 1974\nTime:\n5:00 p. m.\nFOR ACTION: VMichael Duval\nCC (for information): Warren K. Hendriks\n\\Fred Buzhardt\nJerry Jones\nBill Timmons\nFROM THE STAFF SECRETARY\nDUE: Date:\nFriday, August 9, 1974\nTime: 2:00 p.m.\nSUBJECT:\nEnrolled Bill H.R. 13264 - Perishable Agricultural\nCommodities\nGERALD FORD\nACTION REQUESTED:\nFor Necessary Action\nXX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Kathy Tindle - West Wing\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nK. R. COLE, JR.\ntelephone the Staff Secretary immediately.\nFor the President\nTHE WHITE HOUSE\nWASHINGTON\n8/7/74\nTO: WARREN HENDRIKS\nmike Dural\nFB\nCCWH\nBT\nJJ\nA\nJohn J. Ratchford\nTHE WHITE HOUSE\nACTION MEMORANDUM\nLOG NO.: 495\nWASHINGTON\nDate: August 7, 1974\nTime:\n5:00 p.m.\nFOR ACTION: Michael Duval\nCC (for information): Warren K. Hendriks\nFred Buzhardt\nJerry Jones\nBill Timmons\nFROM THE STAFF SECRETARY\nDUE: Date:\nFriday, August 9, 1974\nTime: 2:00 p.m.\nSUBJECT:\nEnrolled Bill H. R. 13264 - Perishable Agricultural\nCommodities\nFORD & LIBRARI GERALD\nACTION REQUESTED:\nFor Necessary Action\nXX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nFor Your Comments\nDraft Remarks\nREMARKS:\nNo objection\nU.C.\nPlease return to Kathy Tindle - West Wing\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\ntelephone the Staff Secretary immediately.\nWarren K. Hendriks\nFor the President\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nAUG 7 1974\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 13264 - Perishable agricultural\ncommodities\nSponsor - Rep. Sisk (D) California\nLast Day for Action\nAugust 14, 1974 - Wednesday\nGERALD FORD LIBRARY\nPurpose\nProvides variable penalties for certain violations of the\nPerishable Agricultural Commodities Act.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Agriculture\nApproval\nDepartment of Justice\nDefers to Agriculture\nDepartment of the Treasury\nNo objection\nCouncil of Economic Advisers\nNo objection\nDiscussion\nUnder provisions of the Perishable Agricultural Commodities\nAct, it is unlawful to misbrand perishable agricultural\ncommodities shipped, sold or offered for sale in interstate\nor foreign commerce. The Act requires all merchants, brokers,\nand dealers who deal in such perishable agricultural commodities\nto be licensed by the Department of Agriculture. The only\npenalties which can presently be imposed for such violations\nare public disclosure of the facts and circumstances and/or the\nsuspension or revocation of the license of the violator.\n2\nThe Department of Agriculture's experience with administering\nthe Act led it to believe that the law was too inflexible.\nViolators were given either no penalty in one case or their\nlicense was suspended or revoked in another instance -- a gap\nexisted for violations which warranted an intermediate penalty.\nIn order to remedy this situation, Agriculture submitted to the\nCongress a draft bill to amend the Perishable Agricultural\nCommodities Act. The Agriculture bill provided that violators,\nwith the consent of the Secretary, may admit their violations\nand pay a monetary penalty not to exceed $2,000 in lieu of a\nformal suspension or revocation proceeding. Payments so made\nwould be deposited into the treasury as miscellaneous receipts.\nThe enrolled bill is identical to the Agriculture proposal\ndescribed above.\nIn reporting on H.R. 13264, the House Agriculture Committee\nstated that the bill:\nIf\nwould give the Secretary the flexibility\nto bring about a substantial reduction in the\nnumber of repeated violations by dealers. It\nwould result in greater efficiency in administering\nthe act by minimizing the necessity of formal action\nagainst licensees.\"\nGERALD 3. LEBRARY YORD\nWilfred H Romand\nAssistant Director for\nLegislative Reference\nEnclosures\nSTATES AGRICULTURE & GRICULTURE\nDEPARTMENT OF AGRICULTURE\nOFFICE OF THE SECRETARY\nWASHINGTON, D. C. 20250\nAugust 6, 1974\nHonorable Roy L. Ash, Director\nOffice of Management and Budget\nFORD LIBRARY & diviso\nDear Mr. Ash:\nThis is to report on the enrolled enactment of H.R. 13264, a bill to amend\nthe provisions of the Perishable Agricultural Commodities Act, 1930, relating\nto practices in the marketing of perishable agricultural commodities.\nThis Department recommends that the President approve H.R. 13264.\nThe bill would amend Section 2(5) of the Perishable Agricultural Commodities\nAct to permit the Secretary the option of allowing a person who has violated\nthe law by misbranding and misrepresenting fresh and frozen fruits or vege-\ntables sold in interstate or foreign commerce to admit the violation and pay\na monetary penalty, not to exceed $2,000, in lieu of a formal disciplinary\nproceeding for the suspension or revocation of the violator's license.\nThe only penalties which can presently be imposed for such violations under\nthe PACA are the suspension or revocation of the license of the violator.\nExperience shows that many licensees are not deterred by a warning or series\nof warnings but only by the risk of a serious penalty. The addition of a\nmonetary penalty, as provided in H.R. 13264, should cause a substantial reduc-\ntion in repeated misbranding violations.\nConsumers, as well as the distributive trade, would benefit if the legisla-\ntion is adopted, since deterrence of misbranding and misrepresentation offers\na measure of consumer protection.\nSincerely,\nRICHARD A. ASHWORTH\nDeputy Under Secretary\nASSISTANT ATTORNEY GENERAL\nLEGISLATIVE AFFAIRS\nDepartment of Justice\nWashington, D.C. 20530\nAUG 5 1974\nHonorable Roy L. Ash\nDirector, Office of\nManagement and Budget\nWashington, D. C. 20503\nDear Mr. Ash:\nIn compliance with your request, I have examined a\nfacsimile of the enrolled bill H.R. 13264, \"To amend the pro-\nvisions of the Perishable Agricultural Commodities Act, 1930,\nrelating to practices in the marketing of perishable agricul-\ntural commodities.\nThe Perishable Agricultural Commodities Act, 1930,\nas amended (7 U.S.C. 499a-499s) provides for the regulation\nof commercial trade practices in the marketing of fresh and\nfrozen fruits and vegetables and aids in the enforcement of\ncontracts for the marketing of such commodities. The statute\nprovides for the licensing of firms doing business in the\nindustry and provides for the suspension or revocation of a\nfirm's license for a number of different violations in addition\nto recovery of damages by injured parties.\nThe amendment proposed by H.R. 13264 would allow a\nfirm accused of violating one provision of the statute\n(7 U.S.C. 499b (5) ) the option, with the consent of the Secre-\ntary of Agriculture, of admitting the violation and paying a\nmonetary penalty not to exceed $2,000 in lieu of a formal pro-\nceeding for the license suspension or revocation.\nThe Department of Justice defers to the Department\nof Agriculture concerning whether this bill should receive\nExecutive approval.\nFURD\nWhakestra\n\"y\nSUBRARY\nW. Vincent Rakestraw\nGERALD\nAssistant Attorney General\nOF\nDEPARTMENT THE TREASURY\nTHE\nTHE GENERAL COUNSEL OF THE TREASURY\nWASHINGTON, D.C. 20220\n1789\nAUG 5 1974\nDirector, Office of Management and Budget\nExecutive Office of the President\nWashington, D.C. 20503\nAttention: Assistant Director for Legislative\nReference\nSir:\nReference is made to your request for the views of\nthis Department on the enrolled enactment of H.R. 13264,\n\"To amend the provisions of the Perishable Agricultural\nCommodities Act, 1930, relating to practices in the\nmarketing of perishable agricultural commodities.\"\nThe enrolled enactment would amend the Perishable\nAgricultural Commodities Act to provide a monetary penalty\nnot to exceed $2,000 for certain violations of the Act.\nAny payment so made would be deposited into the Treasury\nof the United States as miscellaneous receipts. The\nlegislation was proposed by the Department of Agriculture.\nThe Department would have no objection to a recommenda-\ntion that the enrolled enactment be approved by the\nPresident.\nSincerely yours,\nFORD LIBRARY 'y GERALD\nGeneral Counsel\nTHE CHAIRMAN OF THE\nCOUNCIL OF ECONOMIC ADVISERS\nWASHINGTON\nAugust 5, 1974\nDear Mr. Rommel:\nThe Council of Economic Advisers has no objections\nto the President's signing H.R. 13264, a bill \"To amend\nthe provisions of the Perishable Agricultural Commodities\nAct, 1930, relating to practices in the marketing of\nperishable agricultural commodities.\"\nSincerely,\nHerbert Sten\nHerbert Stein\nMr. Wilfred H. Rommel\nAssistant Director\nfor Legislative Reference\nOffice of Management and Budget\nWashington, D. C. 20503\nFORD LIBRARY & GERALD\nAMERICAN REVOLUTION\n1776-1976\nTHE WHITE HOUSE\nWASHINGTON\nAugust 8, 1974\nMEMORANDUM FOR: MR. WARREN HENDRIKS\nFROM:\nWILLIAM E. TIMMONS PAMfawor\nSUBJECT:\nAction Memorandum - Log No. 495\nEnrolled Bill H.R. 13264 - Perishable\nAgricultural Commodities\nFORD\nGERALD\nThe Office of Legislative Affairs concurs in the attached\nproposal and has no additional recommendations.\nAttachment\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 495\nDate: August 7, 1974\nTime:\n5:00 p.m.\nFOR ACTION: Michael Duval\nCC (for information): Warren K. Hendriks\nFred Buzhardt\nJerry Jones\nBill Timmons\nFROM THE STAFF SECRETARY\nDUE: Date:\nFriday, August 9, 1974\nTime:\n2:00 p. m.\nSUBJECT:\nEnrolled Bill H. R. 13264 - Perishable Agricultural\nCommodities\nFORD LIBRARY & CERALD\nACTION REQUESTED:\nFor Necessary Action\nXX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Kathy Tindle - West Wing\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\ntelephone the Staff Secretary immediately\nWarren K. Hendriks\nFor the President\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nAUG 7 1974\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 13264 - Perishable agricultural\ncommodities\nSponsor - Rep. Sisk (D) California\nLast Day for Action\nBERRALO FORD LIBRARY\nAugust 14, 1974 - Wednesday\nPurpose\nProvides variable penalties for certain violations of the\nPerishable Agricultural Commodities Act.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Agriculture\nApproval\nDepartment of Justice\nDefers to Agriculture\nDepartment of the Treasury\nNo objection\nCouncil of Economic Advisers\nNo objection\nDiscussion\nUnder provisions of the Perishable Agricultural Commodities\nAct, it is unlawful to misbrand perishable agricultural\ncommodities shipped, sold or offered for sale in interstate\nor foreign commerce. The Act requires all merchants, brokers,\nand dealers who deal in such perishable agricultural commodities\nto be licensed by the Department of Agriculture. The only\npenalties which can presently be imposed for such violations\nare public disclosure of the facts and circumstances and/or the\nsuspension or revocation of the license of the violator.\n2\nThe Department of Agriculture's experience with administering\nthe Act led it to believe that the law was too inflexible.\nViolators were given either no penalty in one case or their\nlicense was suspended or revoked in another instance -- a gap\nexisted for violations which warranted an intermediate penalty.\nIn order to remedy this situation, Agriculture submitted to the\nCongress a draft bill to amend the Perishable Agricultural\nCommodities Act. The Agriculture bill provided that violators,\nwith the consent of the Secretary, may admit their violations\nand pay a monetary penalty not to exceed $2,000 in lieu of a\nformal suspension or revocation proceeding. Payments so made\nwould be deposited into the treasury as miscellaneous receipts.\nThe enrolled bill is identical to the Agriculture proposal\ndescribed above.\nIn reporting on H.R. 13264, the House Agriculture Committee\nstated that the bill:\n\"\nwould give the Secretary the flexibility\nto bring about a substantial reduction in the\nnumber of repeated violations by dealers. It\nwould result in greater efficiency in administering\nthe act by minimizing the necessity of formal action\nagainst licensees.\"\nGERALD LIBRARY FORD\nWilfred H Romerel\nAssistant Director for\nLegislative Reference\nEnclosures\nSTATES address )\nDEPARTMENT OF AGRICULTURE\nOFFICE OF THE SECRETARY\nWASHINGTON, D. C. 20250\nAugust 6, 1974\nHonorable Roy L. Ash, Director\nOffice of Management and Budget\nFORD & GERALD LIBRARY\nDear Mr. Ash:\nThis is to report on the enrolled enactment of H.R. 13264, a bill to amend\nthe provisions of the Perishable Agricultural Commodities Act, 1930, relating\nto practices in the marketing of perishable agricultural commodities.\nThis Department recommends that the President approve H.R. 13264.\nThe bill would amend Section 2(5) of the Perishable Agricultural Commodities\nAct to permit the Secretary the option of allowing a person who has violated\nthe law by misbranding and misrepresenting fresh and frozen fruits or vege-\ntables sold in interstate or foreign commerce to admit the violation and pay\na monetary penalty, not to exceed $2,000, in lieu of a formal disciplinary\nproceeding for the suspension or revocation of the violator's license.\nThe only penalties which can presently be imposed for such violations under\nthe PACA are the suspension or revocation of the license of the violator.\nExperience shows that many licensees are not deterred by a warning or series\nof warnings but only by the risk of a serious penalty. The addition of a\nmonetary penalty, as provided in H.R. 13264, should cause a substantial reduc-\ntion in repeated misbranding violations.\nConsumers, as well as the distributive trade, would benefit if the legisla-\ntion is adopted, since deterrence of misbranding and misrepresentation offers\na measure of consumer protection.\nSincerely,\nRICHARD A. ASHWORTH\nDeputy Under Secretary\nASSISTANT ATTORNEY GENERAL\nLEGISLATIVE AFFAIRS\nDepartment of Justice\nWashington, D.C. 20530\nAUG 5 1974\nHonorable Roy L. Ash\nDirector, Office of\nManagement and Budget\nWashington, D. C. 20503\nFORD i LIBRARY GERALD\nDear Mr. Ash:\nIn compliance with your request, I have examined a\nfacsimile of the enrolled bill H.R. 13264, \"To amend the pro-\nvisions of the Perishable Agricultural Commodities Act, 1930,\nrelating to practices in the marketing of perishable agricul-\ntural commodities.\"\nThe Perishable Agricultural Commodities Act, 1930,\nas amended (7 U.S.C. 499a-499s) provides for the regulation\nof commercial trade practices in the marketing of fresh and\nfrozen fruits and vegetables and aids in the enforcement of\ncontracts for the marketing of such commodities. The statute\nprovides for the licensing of firms doing business in the\nindustry and provides for the suspension or revocation of a\nfirm's license for a number of different violations in addition\nto recovery of damages by injured parties.\nThe amendment proposed by H.R. 13264 would allow a\nfirm accused of violating one provision of the statute\n(7 U.S.C. 499b (5)) the option, with the consent of the Secre-\ntary of Agriculture, of admitting the violation and paying a\nmonetary penalty not to exceed $2,000 in lieu of a formal pro-\nceeding for the license suspension or revocation.\nThe Department of Justice defers to the Department\nof Agriculture concerning whether this bill should receive\nExecutive approval.\nW. Vindent Rakestraw\nAssistant Attorney General\nOF\nTHE TREASURY THE DEPARTMENT\nTHE GENERAL COUNSEL OF THE TREASURY\nWASHINGTON, D.C. 20220\n1789\nAUG 5 1974\nDirector, Office of Management and Budget\nExecutive Office of the President\nWashington, D.C. 20503\nAttention: Assistant Director for Legislative\nFORD i LIBRARY GERALD\nReference\nSir:\nReference is made to your request for the views of\nthis Department on the enrolled enactment of H.R. 13264,\n\"To amend the provisions of the Perishable Agricultural\nCommodities Act, 1930, relating to practices in the\nmarketing of perishable agricultural commodities.\"\nThe enrolled enactment would amend the Perishable\nAgricultural Commodities Act to provide a monetary penalty\nnot to exceed $2,000 for certain violations of the Act.\nAny payment so made would be deposited into the Treasury\nof the United States as miscellaneous receipts. The\nlegislation was proposed by the Department of Agriculture.\nThe Department would have no objection to a recommenda-\ntion that the enrolled enactment be approved by the\nPresident.\nSincerely yours,\nGeneral Counsel\nTHE CHAIRMAN OF THE\nCOUNCIL OF ECONOMIC ADVISERS\nWASHINGTON\nAugust 5, 1974\nDear Mr. Rommel:\nThe Council of Economic Advisers has no objections\nto the President's signing H.R. 13264, a bill \"To amend\nthe provisions of the Perishable Agricultural Commodities\nAct, 1930, relating to practices in the marketing of\nperishable agricultural commodities.\"\nSincerely,\nHerbert Sten\nHerbert Stein\nMr. Wilfred H. Rommel\nAssistant Director\nfor Legislative Reference\nOffice of Management and Budget\nWashington, D. C. 20503\nGERALD LIBRARY FORD\nAMERICAN REVOLUTION INFENTENNAL\n1776-1976\nTHE WHITE HOUSE\nWASHINGTON\nAugust 9, 1974\nTO\n: Kathy Tindle\nFROM: NORM ROSS\nFORD LIBRARY & GERALD\nTHE WHITE HOUSE\nWASHINGTON\nTO: Non\nFROM:\nMIKE DUVAL\nFor your information\nComments:\nok?? 7\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 495\nDate: August 7, 1974\nTime:\n5:00 p.m.\nFOR ACTION: Michael Duval\ncc (for information): Warren K. Hendriks\nFred Buzhardt\nJerry Jones\nBill Timmons\nFROM THE STAFF SECRETARY\nDUE: Date:\nFriday, August 9, 1974\nTime: 2:00 p.m.\nSUBJECT:\nEnrolled Bill H.R. 13264 Perishable Agricultural\nCommodities\nFORD i LIBRARY GERALD\nACTION REQUESTED:\nFor Necessary Action\nXX For Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Kathy Tindle - West Wing\nOK\nMike DWAl\nok Norm Rows 8/9\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\ntelephone the Staff Secretary immediately.\nWarren K. Hendriks\nFor the President\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nAUG 7 1974\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 13264 - Perishable agricultural\ncommodities\nSponsor - Rep. Sisk (D) California\nLast Day for Action\nAugust 14, 1974 - Wednesday\nGERALD FORD LIBRARY\nPurpose\nProvides variable penalties for certain violations of the\nPerishable Agricultural Commodities Act.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Agriculture\nApproval\nDepartment of Justice\nDefers to Agriculture\nDepartment of the Treasury\nNo objection\nCouncil of Economic Advisers\nNo objection\nDiscussion\nUnder provisions of the Perishable Agricultural Commodities\nAct, it is unlawful to misbrand perishable agricultural\ncommodities shipped, sold or offered for sale in interstate\nor foreign commerce. The Act requires all merchants, brokers,\nand dealers who deal in such perishable agricultural commodities\nto be licensed by the Department of Agriculture. The only\npenalties which can presently be imposed for such violations\nare public disclosure of the facts and circumstances and/or the\nsuspension or revocation of the license of the violator.\n2\nThe Department of Agriculture's experience with administering\nthe Act led it to believe that the law was too inflexible.\nViolators were given either no penalty in one case or their\nlicense was suspended or revoked in another instance -- a gap\nexisted for violations which warranted an intermediate penalty.\nIn order to remedy this situation, Agriculture submitted to the\nCongress a draft bill to amend the Perishable Agricultural\nCommodities Act. The Agriculture bill provided that violators,\nwith the consent of the Secretary, may admit their violations\nand pay a monetary penalty not to exceed $2,000 in lieu of a\nformal suspension or revocation proceeding. Payments so made\nwould be deposited into the treasury as miscellaneous receipts.\nThe enrolled bill is identical to the Agriculture proposal\ndescribed above.\nIn reporting on H.R. 13264, the House Agriculture Committee\nstated that the bill:\n\"\nwould give the Secretary the flexibility\nto bring about a substantial reduction in the\nnumber of repeated violations by dealers. It\nwould result in greater efficiency in administering\nthe act by minimizing the necessity of formal action\nagainst licensees.' \"\nFORD LIBRARY is\nWilfred H Romand\nAssistant Director for\nLegislative Reference\nEnclosures\nSTATES DEPARTMENTO ) CRICULTURE\nDEPARTMENT OF AGRICULTURE\nOFFICE OF THE SECRETARY\nWASHINGTON, D. C. 20250\nFORD\nGERALD\nLIBRARY\nAugust 6, 1974\nHonorable Roy L. Ash, Director\nOffice of Management and Budget\nDear Mr. Ash:\nThis is to report on the enrolled enactment of H.R. 13264, a bill to amend\nthe provisions of the Perishable Agricultural Commodities Act, 1930, relating\nto practices in the marketing of perishable agricultural commodities.\nThis Department recommends that the President approve H.R. 13264.\nThe bill would amend Section 2(5) of the Perishable Agricultural Commodities\nAct to permit the Secretary the option of allowing a person who has violated\nthe law by misbranding and misrepresenting fresh and frozen fruits or vege-\ntables sold in interstate or foreign commerce to admit the violation and pay\na monetary penalty, not to exceed $2,000, in lieu of a formal disciplinary\nproceeding for the suspension or revocation of the violator's license.\nThe only penalties which can presently be imposed for such violations under\nthe PACA are the suspension or revocation of the license of the violator.\nExperience shows that many licensees are not deterred by a warning or series\nof warnings but only by the risk of a serious penalty. The addition of a\nmonetary penalty, as provided in H.R. 13264, should cause a substantial reduc-\ntion in repeated misbranding violations.\nConsumers, as well as the distributive trade, would benefit if the legisla-\ntion is adopted, since deterrence of misbranding and misrepresentation offers\na measure of consumer protection.\nSincerely,\nRICHARD A. ASHWORTH\nDeputy Under Secretary\nASSISTANT ATTORNEY GENERAL\nLEGISLATIVE AFFAIRS\nDepartment of Justice\nWashington, D.C. 20530\nAUG 5 1974\nHonorable Roy L. Ash\nDirector, Office of\nManagement and Budget\nWashington, D. C. 20503\nDear Mr. Ash:\nIn compliance with your request, I have examined a\nfacsimile of the enrolled bill H.R. 13264, \"To amend the pro-\nvisions of the Perishable Agricultural Commodities Act, 1930,\nrelating to practices in the marketing of perishable agricul-\ntural commodities.\"\nThe Perishable Agricultural Commodities Act, 1930,\nas amended (7 U.S.C. 499a-499s) provides for the regulation\nof commercial trade practices in the marketing of fresh and\nfrozen fruits and vegetables and aids in the enforcement of\ncontracts for the marketing of such commodities. The statute\nprovides for the licensing of firms doing business in the\nindustry and provides for the suspension or revocation of a\nfirm's license for a number of different violations in addition\nto recovery of damages by injured parties.\nThe amendment proposed by H.R. 13264 would allow a\nfirm accused of violating one provision of the statute\n(7 U.S.C. 499b(5)) the option, with the consent of the Secre-\ntary of Agriculture, of admitting the violation and paying a\nmonetary penalty not to exceed $2,000 in lieu of a formal pro-\nceeding for the license suspension or revocation.\nThe Department of Justice defers to the Department\nof Agriculture concerning whether this bill should receive\nExecutive approval.\nGERALD R. LEBRARY FORD\nW. Vincent Rakestraw\nAssistant Attorney General\nOF\nTHE\nTHE TREASURY\nTHE GENERAL COUNSEL OF THE TREASURY\nWASHINGTON, D.C. 20220\n1789\nAUG 5 1974\nDirector, Office of Management and Budget\nExecutive Office of the President\nWashington, D.C. 20503\nAttention: Assistant Director for Legislative\nReference\nSir:\nReference is made to your request for the views of\nthis Department on the enrolled enactment of H.R. 13264,\n\"To amend the provisions of the Perishable Agricultural\nCommodities Act, 1930, relating to practices in the\nmarketing of perishable agricultural commodities.\"\nThe enrolled enactment would amend the Perishable\nAgricultural Commodities Act to provide a monetary penalty\nnot to exceed $2,000 for certain violations of the Act.\nAny payment so made would be deposited into the Treasury\nof the United States as miscellaneous receipts. The\nlegislation was proposed by the Department of Agriculture.\nThe Department would have no objection to a recommenda-\ntion that the enrolled enactment be approved by the\nPresident.\nSincerely yours,\nFORD LIBRARY 'y BERRLD\nGeneral Counsel\nTHE CHAIRMAN OF THE\nCOUNCIL OF ECONOMIC ADVISERS\nWASHINGTON\nAugust 5, 1974\nDear Mr. Rommel:\nThe Council of Economic Advisers has no objections\nto the President's signing H.R. 13264, a bill \"To amend\nthe provisions of the Perishable Agricultural Commodities\nAct, 1930, relating to practices in the marketing of\nperishable agricultural commodities. \"\nSincerely,\nHerbert Sten\nHerbert Stein\nGERALD FORD LIBRARY\nMr. Wilfred H. Rommel\nAssistant Director\nfor Legislative Reference\nOffice of Management and Budget\nWashington, D. C. 20503\nAMERICAN REVOLUTION WENTENNING\n1776-1976\n93D CONGRESS\nHOUSE OF REPRESENTATIVES\nREPORT\n2d Session\nNo. 93-1130\nPERISHABLE AGRICULTURAL COMMODITIES ACT\nAMENDMENT\nJUNE 20, 1974.-Committed to the Committee of the Whole House on the\nState of the Union and ordered to be printed\nMr. POAGE, from the Committee on Agriculture,\nsubmitted the following\nGERALD LIBRARY FORD\nREPORT\n[To accompany H.R. 13264]\nThe Committee on Agriculture, to whom was referred the bill\n(H.R. 13264) to amend the provisions of the Perishable Agricultural\nCommodities Act, 1930, relating to practices in the marketing of per-\nishable agricultural commodities, having considered the same, reports\nfavorably thereon without amendment and recommends that the bill\ndo pass.\nPURPOSE\nH.R. 13264 would amend the Perishable Agricultural Commodities\nAct to allow the imposition of a monetary penalty for misbranding,\nor misrepresenting fruits and vegetables shipped, sold, or offered for\nsale in interstate or foreign commerce.\nThis bill would also permit the Secretary of Agriculture to allow\npersons who have violated the law, by misrepresenting fresh or mis-\nbranding fresh fruits or vegetables sold in interstate or foreign com-\nmerce, to admit the violation and pay a monetary penalty, not to\nexceed $2,000, in lieu of a formal proceeding for the suspension or\nrevocation of the violator's license.\nBACKGROUND\nFruits and vegetables-being highly perishable-need to be har-\nvested, packed, and distributed quickly. People in the fast-moving,\nfinancially hazardous produce business must rely on the honesty and\ngood faith of those they trade with.\nEncouraging fair trading practices in this business is the purpose\nof the Perishable Agricultural Commodities Act-or \"PACA.\" This\nFederal law prohibits unfair and fraudulent practices in the market-\ning of fresh and frozen fruits and vegetables and sets penalties for\n99-006\n2\n3\nviolation. It provides for collecting damages from anyone who fails\nCOMMITTEE CONSIDERATION\nto live up to his contract obligations.\nThe produce industry realized the need for a code of fair trading\nOn May 23, 1974, the Domestic Marketing and Consumer Relations\nstandards many years ago. At the industry's request, PACA was\nSubcommittee of the Agriculture Committee held open public hear-\npassed by Congress in 1930. Since then, it has been amended a number\nof times to keep it in step with changing trade practices. PACA is\nings on H.R. 13264, and in open business meeting on June 4 ordered\nadministered by the Consumer and Marketing Service of the U.S.\nthe bill to be reported to the full committee by a voice vote. In an open\nDepartment of Agriculture, through its Fruit and Vegetable Division.\nbusiness meeting on June 11, 1974, in the presence of a quorum, the\nBecause of the highly perishable nature of fresh fruits and vege-\nfull committee, by a voice vote, ordered H.R. 13264 favorably reported\nto the House.\ntables, rapid harvesting, packing, and distribution are essential. It is a\nADMINISTRATION POSITION\nfinancially hazardous business due to the risks of weather, uncertain\ngrowing conditions, and unpredictable fluctuations in market prices.\nH.R. 13264, introduced by Mr. Sisk, is identical to the legislative\nThere are many opportunities for unethical persons to take advantage\nproposal included in Executive Communication No. 1665, which reads\nof these conditions and engage in unfair and fraudulent practices.\nas follows:\nEnforcement of the Act is through a system of licenses. Commission\nDEPARTMENT OF AGRICULTURE,\nmerchants, brokers, and dealers, including certain retailers and proces-\nOFFICE OF THE SECRETARY,\nsors, operating subject to the Act are required to be licensed by the\nWashington, D.C., December 21, 1973.\nDepartment of Agriculture.\nA retailer is subject to licensing when the invoice cost of all his pur-\nHon. CARL ALBERT,\nchases of fresh and frozen fruits and vegetables during a calendar year\nSpeaker of the House of Representatives.\nexceeds $100,000. In computing this dollar volume, all purchases are\nDEAR MR. SPEAKER: Enclosed for consideration by the Congress is\nto be counted regardless of the size of the lot involved or whether\na draft of a proposed bill to amend Section 2(5) of the Perishable\nthe transaction was in interstate, intrastate, or foreign commerce.\nAgricultural Commodities Act, 1930, relating to unfair practices in\nMisrepresentations of grade, quality, quantity, weight, or State of\nthe marketing of perishable agricultural commodities.\norigin of fruits and vegetables in interstate or foreign commerce are\nThe proposed bill would amend the Perishable Agricultural Com-\nprohibited. PACA does not require anv particular markings on con-\nmodities Act to provide the option of imposing either a monetary pen-\ntainers. but those that are used must be accurate. Anyone shipping\nalty, not to exceed $2,000, for violations of the misbranding provisions\nmisbranded produce may find that the buyer is entitled to reject it or\nof the Act, or institution of a formal proceeding for suspension or rev-\nto correct the misbranding at the shipper's expense. A licensee who\nocation of the license issued under this Act to trade in the fruit and\nviolates the law by misbranding is subject to USDA disciplinary ac-\nvegetable industry. The only penalties which can presently be imposed\ntion, which, under the present Act, can result in suspension or loss of\nfor such violations are public disclosure of the facts and circumstances\nhis license.\nand/or the suspension or revocation of the license of the violator.\nThe person charged with the violation may be ordered to pay a\nIn utilizing the monetary penalty option, if the law is revised as set\nreparation award. If he does not pay the award. or file an appeal in a\nforth in the proposed amendment, we would expect that in most in-\nU.S. District Court within 30 days from the date of the order, his\nstances a warning letter would be issued on the first violation by a li-\nlicense is suspended automatically, and he may not continue in business\ncensee. Monetary penalties would be assessed for violations after the\nnor be employed by another PACA licensee. His only alternative to this\nfirst violation, where the violator and this Department consent to such\nis to file an appeal in a U.S. District Court within 30 days from the date\nprocedure. The amount of the penalty assessed will depend on the\nof the order.\nnature of the violation. As we gain experience in this area, we will be\nNEED\nable to judge the amount of penalty which best acts as a deterrent to\npossible violators. The authority to assess monetary penalties, if\nThe addition of authority to impose a monetary penalty. as proposed\ngranted, will fill a gap in the law where either no penalty is imposed\nby H.R. 13264, to the Perishable Agricultural Commodities Act of\nor suspension or revocation of the license is ordered. It is understood\n1930 would give the Secretary the flexibility to bring about a substan-\nthat the monetary penalty provision is to be in addition to other pen-\ntial reduction in the number of repeated violations by dealers. It would\nalties provided in the law, and that the violations on which monetary\nresult in greater efficiency in administering the act by minimizing the\npenalties are assessed may be used as a part of the evidence to support\nnecessity of formal action against licensees. It would provide an option\nan action to suspend or revoke the license of a person who engages in\nof imposing either a monetary penalty, not to exceed $2,000 for mis-\nrepeated and/or flagrant violations of this provision of the Act.\nbranding violations, or the institution of formal proceedings for sus-\nThe proposed bill has been considered by the PACA-Industry Ad-\npension or revocation of the violator's license. However, it does retain\nvisory Committee, an official advisory committee representing the\nthe Act's sanction of suspension or revocation if violations are flagrant\nvarious segments of the fruit and vegetable industry and established\nor repeated. This bill would thus afford a greater measure of protection\nby the Department to counsel on all aspects of the Perishable Agri-\nto the public caused by misbranding and misrepresentation.\ncultural Commodities Act. The Committee has recommended its\nenactment.\nH.R. 1130\nH.R. 1130\n4\n5\nThe proposed legislation would not result in an increase in the cost\nPERISHABLE AGRICULTURAL COMMODITIES ACT OF 1930, AS AMENDED\nof living or in an increase in food costs to consumers. Consumers would\nbenefit if the legislation is adopted, since deterrence of misbranding\n(7 U.S.C. 499a et seq)\nand misrepresentation offers a measure of consumer protection.\n*\n*\nAdoption of the proposed legislation should not result in an increase\nin the cost of administration of the Perishable Agricultural Commod-\n§ 499b. UNFAIR CONDUCT\nities Act. Monetary penalties paid for violations of the misbranding\nIt. shall be unlawful in or in connection with any transaction in\nprovisions of the Act would be deposited into the Treasury of the\ninterstate or foreign commerce-\nUnited States as miscellaneous receipts.\n(1) For any commission merchant, dealer, or broker to engage in or\nIn accordance with the provisions of Public Law 91-190, Section\nuse any unfair, unreasonable, discriminatory, or deceptive practice in\n102 (C) this proposed legislation would have no significant impact\nconnection with the weighing, counting, or in any way determining the\nupon the quality of the environment.\nquantity of any perishable agricultural commodity received, bought,\nThe Office of Management and Budget advised that there is no ob-\nsold, shipped, or handled in interstate or foreign commerce;\njection to the presentation of this draft bill from the standpoint of\n(2) For any dealer to reject or fail to deliver in accordance with\nthe Administration's program.\nthe terms of the contract without reasonable cause any perishable\nSincerely,\nagricultural commodity bought or sold or contracted to be bought, sold,\nJ. PHIL CAMPBELL,\nor consigned in interstate or foreign commerce by such dealer;\nUnder Secretary.\n(3) For any commission merchant to discard, dump, or destroy with-\nEnclosure.\nout reasonable cause, any perishable agricultural commodity received\nsold, shipped, or handled in interstate or foreign commerce;\nA BILL To amend the provisions of the Perishable Agricultural Com-\n(4) For any commission merchant, dealer, or broker to make, for\nmodities Act, 1930, relating to practices in the marketing of perish-\na fraudulent purpose, any false or misleading statement in connection\nable agricultural commodities\nwith any transaction involving any perishable agricultural commodity\nBe it enacted by the Senate and IIouse of Representatives\nwhich is received in interstate or foreign commerce by such commission\nof the United ,States of America in Congress assembled,\nmerchant, or bought or sold, or contracted to be bought, sold, or con-\nThat subsection (5) of Section 2 of the Perishable Agricul-\nsigned, in such commerce by such dealer, or the purchase or sale of\ntural Commodities Act, 1930, as amended (7 U.S.C. 499b (5)\nwhich in such commerce is negotiated by such broker; or to fail or re-\nis hereby amended by striking out the semicolon at the end\nfuse truly and correctly to account and make full payment promptly in\nthereof and substituting a colon and the following: \"Pro-\nrespect of any transaction in any such commodity to the person with\nvided, That any commission merchant, dealer or broker who\nwhom such transaction is had; or to fail, without reasonable cause, to\nhas violated this subsection may, with the consent of the\nperform any specification or duty, express or implied, arising out of\nSecretary, admit the violation or violations and pay a mone-\nany undertaking in connection with any such transaction;\ntary penalty not to exceed $2,000 in lieu of a formal pro-\n(5) For any commission merchant, dealer, or broker to misrepre-\nceeding for the suspension or revocation of license, any pay-\nsent by word, act, mark, stencil, label, statement, or deed, the char-\nment SO made to be deposited into the Treasury of the United\nacter, kind, grade, quality, quantity, size, pack, weight, condition,\nStates as miscellaneous receipts;\".\ndegree of maturity, or State, country, or region of origin of any per-\nishable agricultural commodity received, shipped, sold, or offered to\nCURRENT AND FIVE SUBSEQUENT FISCAL YEAR COST ESTIMATE\nbe sold in interstate or foreign commerce[ : Provided, That any com-\nmission merchant, dealer, or broker who has violated this subsection\nPursuant to clause 7 of rule XIII of the Rules of the House of\nmay, with the consent of the Secretary, admit the violation or viola-\nRepresentatives, the committee estimates no cost will be incurred by\ntions and pay a monetary penalty not to exceed $2,000 in lieu of a\nthe Federal Government during the current and the five subsequent\nformal proceeding for the suspension or revocation of license, any\nfiscal years as a result of the enactment of this legislation. The same\npayment 80 made to be deposited into the Treasury of the United\ncost estimate was submitted to the committee by the Department of\nStates as miscellaneous receipts;\nAgriculure.\n(6) For any commission merchant, dealer, or broker, for a fraud-\nCHANGES IN EXISTING LAW\nulent purpose, to remove, alter, or tamper with any card, stencil,\nstamp, tag, or other notice placed upon any container or railroad\nIn compliance with clause 3 of rule XIII of the Rules of the\ncar containing any perishable agricultural commodity, if such card,\nHouse of Representatives, changes in existing law made by the bill\nstencil, stamp, tag, or other notice contains a certificate or statement\nare shown as follows (existing law proposed to be omitted is enclosed\nunder authority of any Federal or State inspector or in compliance\nin black brackets, new matter is printed in italic, and existing law in\nwith any Federal or State law or regulation as to the grade or quality\nwhich no change is proposed is shown in roman)\nH.R. 1130\nH.R. 1130\n6\nof the commodity contained in such container or railroad car or the\nState or country in which such commodity was produced;\n(7) For any commission merchant, dealer or broker, without the\nconsent of an inspector, to make, cause, or permit to be made any\nchange by way of substitution or otherwise in the contents of a load or\nlot of any perishable agricultural commodity after it has been officially\ninspected for grading and certification, but this shall not prohibit re-\nsorting and discarding inferior produce.\nH.R. 1130\nCalendar No. 994\n93D CONGRESS\nSENATE\nREPORT\n2d Session\nNo. 93-1036\nPERISHABLE AGRICULTURAL COMMMODITIES ACT\nAMENDMENT\nFORD\nJULY 29, 1974.-Ordered to be printed\nGERALD\nLIBRARY\nMr. HUDDLESTON, from the Committee on Agriculture and Forestry,\nsubmitted the following\nREPORT\n[To accompany H.R. 13264]\nThe Committee on Agriculture and Forestry, to which was referred\nthe bill (H.R. 13264) to amend the provisions of the Perishable Agri-\ncultural Commodities Act, 1930, relating to practices in the market-\ning of perishable agricultural commodities, having considered the\nsame, reports favorably thereon without amendment and recommends\nthat the bill do pass.\nSHORT EXPLANATION\nThis bill would amend the Perishable Agricultural Commodities\nAct to allow the imposition of a monetary penalty on those who violate\nthe law by misbranding, or misrepresenting fruits and vegetables\nshipped, sold, or offered for sale in interstate or foreign commerce. A\npenalty not to exceed $2,000 could be imposed on those who violate\nthe law and SO admit, in lieu of a formal proceeding for the suspen-\nsion or revocation of the violator's license.\nBACKGROUND AND NEED\nThis is a request bill and identical to S. 2946 which was introduced\non February 4, 1974.\nThis bill would permit the Secretary to allow a person who has\nviolated the Perishable Agricultural Commodities Act by misbranding\nor misrepresenting fresh and frozen fruits and vegetables sold in inter-\nstate or foreign commerce to admit the violation and pay a monetary\npenalty, not to exceed $2,000, in lieu of a formal proceeding for the\nsuspension or revocation of the violator's license.\n38-010\n3\nдее\n2\nthe first violation is reported. This warning would also serve to satisfy\nThe basic objective of the Act is to establish a code of fair trading\nthe requirements of the Administrative Procedure Act that a violator\npractices in the marketing of fresh and frozen fruits and vegetables\nbe given warning in writing before any disciplinary action is taken\nand enforcement of contracts for marketing these commodities. Among\nwhich could result in a suspension or revocation of license. The De-\nthe unlawful trade practices under this Act is to misbrand or mis-\npartment's present thinking is that a fine would be imposed for the\nrepresent by word, act, mark, stencil, label, statement, or deed the\nfirst violation following a written warning, and thereafter fines would\ncharacter, kind, grade, quality, quantity, size, pack, weight, condition,\nbe increased based on the severity of each subsequent violation. This\nvegetables. degree of maturity, or State, country or region of origin of fruits and\ndeterrent will afford a greater measure of protection to the public\ncaused by misbranding and misrepresentation.\nThere are two main phases of activity in administering the Act. In\nThe Committee was informed that adding a provision for monetary\nthe first phase, the Secretary deals with reparation cases in which he\npenalty for misbranding and misrepresentation was considered at\ndecides disputes involving claims for financial damages resulting from\nlength by the PACA-Industry Advisory Committee at its annual\nany violation of the fair trading principles.\nmeetings in February 1973 and 1974. The Advisory Committee is an\nThe seçond phase of activity relates to disciplinary measures. These\nofficial group appointed by the Secretary of Agriculture and is repre-\ninclude administrative proceedings by the Sceretary to suspend or re-\nsentative of all segments of the fruit and vegetable industry. The\nvoke licenses for repeated or flagrant violations of the Act, and court\ngroup recommended that monetary penalties be added for misbrand-\nactions to collect civil penaltiés for operating without a license, to-\ning and that the penalty be imposed within a stated maximum without\ngether with injunctions to restrain further operations. It is with the\nthe necessity of a formal proceeding.\ndisciplinary provisions of the law that H.R. 13264 is concerned.\nSuspension or revocation of license is the only sanction which can\nCOST ESTIMATE\nbe imposed upon a licensee for violating the law. The shipment, sale\nor offer for sale in interstate commerce of produce which is misrepre-\nIn accordance with section 252 of the Legislative Reorganization\nsented as to quality, quantity, size, or weight, is a serious violation of\nAct of 1970, the Committee concurs with the Department's estimate\nthe law. However, if it is not repeated or flagrant, it may not neces-\nthat there should be no increase in costs. Monetary penalties paid for\nsarily warrant compelling a firm to cease business operations.\nviolations would be deposited into the Treasury of the United States\nWhen evidence is developed that there has been a violation, a written\nas miscellaneous receipts.\nwarning is given to the violator, calling his attention to the misbrand-\ning provisions of the law, the nature of the misrepresenation found,\nDEPARTMENTAL VIEWS\nand affording him the opportunity to show either that he did not vio-\nlate the Act, or if he did violate, that he is taking specific corrective\nDEPARTMENT OF AGRICULTURE,\naction. Additional warnings may be sent for subsequent violations.\nOFFICE OF THE SECRETARY,\nDisciplinary action is instituted against a firm when there is an ac-\nWashington, D.C., December 21, 1973.\ncumulation of violations sufficient to indicate a disregard for lawful\nHon. CARL ALBERT,\nrequirements. When evidence of repeated or flagrant violations is\nSpeaker of the House of Representatives.\nfound, a disciplinary action to suspend or revoke the violator's license\nDEAR MR. SPEAKER: Enclosed for consideration by the Congress is\nis instituted. During fiscal year 1973, there were numerous infractions\na draft of a proposed bill to amend Section 2(5) of the Perishable\nof the misbranding provisions of the law, many of which were repeat\nAgricultural Commodities Act, 1930, relating to unfair practices in\nviolations. Even though the firms involved declared their intention to\nthe marketing of perishable agricultural commodities.\ntake corrective action upon receipt of a warning letter, many did not\nThe proposed bill would amend the Perishable Agricultural Com-\nfollow through and subsequently violated the law.\nmodities Act to provide the option of imposing either a monetary pen-\nBecause experience shows that many licensees are not deterred by a\nalty, not to exceed $2,000, for violations of the misbranding provisions\nseries of warnings, the addition of a monetary penalty, as provided in\nof the Act, or institution of a formal proceeding for suspension or rev-\nH.R. 13264 should cause a substantial reduction in repeated violations\nocation of the license issued under this Act to trade in the fruit and\nby dealers. Under the proposed legislation, monetary penalties could\nvegetable industry. The only penalties which can presently be imposed\nbe imposed by the Department informally if the licensee admits the\nfor such violations are public disclosure of the facts and circumstances\nviolation and action has been taken to correct the misbranding, with-\nand/or the suspension or revocation of the license of the violator.\nout the necessity for formal action against the licensèe. This would\nIn utilizing the monetary penalty option, if the law is revised as set\nnot, however, bar the sanction of suspension or revocation of license\nforth in the proposed amendment, we would expect that in most in-\nif the violations are flagrant or repeated. Funds derived from mone-\nstances a warning letter would be issued on the first violation by a li-\nreceipts. tary penalties would be deposited in the Treasury as miscellaneous\ncensee. Monetary penalties would be assessed for violations after the\nfirst violation, where the violator and this Department consent to such\nThe Committee understands that the Department proposes to con-\nprocedure. The amount of the penalty assessed will depend on the\ntinue to issue written warnings as a possible deterrent at the time\nS.R. 1036\nS.R. 1036\n4\n5\nnature of the violation. As we gain experience in this area, we will be\nCHANGES IN EXISTING Law\nable to judge the amount of penalty which best acts as a deterrent to\npossible violators. The authority to assess monetary penalties, if\nIn compliance with subsection (4) of rule XXIX of the Standing\ngranted, will fill a gap in the law where either no penalty is imposed\nRules of the Senate, changes in existing law made by the bill, as re-\nor suspension or revocation of the license is ordered. It is understood\nported, are shown as follows (existing law proposed to be omitted is\nthat the monetary penalty provision is to be in addition to other pen-\nenclosed in black brackets, new matter is printed in italic, existing law\nalties provided in the law, and that the violations on which monetary\nin which no change is proposed is shown in roman)\npenalties are assessed may be used as a part of the evidence to support\nan action to suspend or revoke the license of a person who engages in\nPERISHABLE AGRICULTURAL COMMODITIES ACT OF 1930, AS AMENDED\nrepeated and/or flagrant violations of the provision of the Act.\nThe proposed bill has been considered by the PACA-Industry Ad-\n(7 U.S.C. 499a et seq)\nvisory Committee, an official advisory committee representing the\nvarious segments of the fruit and vegetable industry and established\nby the Department to counsel on all aspects of the Perishable Agri-\n§ 499b. UNFAIR CONDUCT\ncultural Commodities Act. The Committee has recommended its\nIt shall be unlawful in or in connection with any transaction in\nenactment.\ninterstate or foreign commerce-\nThe proposed legislation would not result in an increase in the cost\n(1) For any commission merchant, dealer, or broker to engage in or\nof living or in an increase in food costs to consumers. Consumers would\nuse any unfair, unreasonable, discriminatory, or deceptive practice in\nbenefit if the legislation is adopted, since deterrence of misbranding\nconnection with the weighing, counting, or in any way determining the\nand misrepresentation offers a measure of consumer protection.\nquantity of any perishable agricultural commodity received, bought,\nAdoption of the proposed legislation should not result in an increase\nsold, shipped, or handled in interstate or foreign commerce;\nin the cost of administration of the Perishable Agricultural Commod-\n*\n*\n*\nities Act. Monetary penalties paid for violations of the misbranding\nprovisions of the Act would be deposted into the Treasury of the\n(5) For any commission merchant, dealer, or broker to misrepre-\nsent by word, act, mark, stencil, label, statement, or deed, the char-\nUnited States as miscellaneous receipts.\nIn accordance with the provisions of Public Law 91-190, Section\nacter, kind, grade, quality, quantity, size, pack, weight, condition,\n102 (2) (C) this proposed legislation would have no significant impact\ndegree of maturity, or State, country, or region of origin of any per-\nishable agricultural commodity received, shipped, sold, or offered to\nupon the quality of the environment.\nThe Office of Management and Budget advised that there is no ob-\nbe sold in interstate or foreign commerce[] Provided, That any\njection to the presentation of this draft bill from the standpoint of\ncommission merchant, dealer, or broker who has violated this subsec-\ntion may, with the consent of the Secretary, admit the violation or\nthe Administration's program.\nviolations and pay a monetary penalty not to exceed $2,000 in lieu of a\nSincerely,\nJ. PHIL CAMPBELL,\nformal proceeding for the suspension or revocation of license, any\nUnder Secretary.\npayment so made to be deposited into the Treasury of the United\nStates as miscellaneous receipts;\nEnclosure.\n*\n*\nA BILL To amend the provisions of the Perishable Agricultural Com-\n(7) For any commission merchant, dealer or broker, without the\nmodities Act, 1930, relating to practices in the marketing of perish-\nconsent of an inspector, to make, cause, or permit to be made any\nable agricultural commodities\nchange by way of substitution or otherwise in the contents of a load or\nBe it enacted by the Senate and House of Representatives\nlot of any perishable agricultural commodity after it has been officially\nof the United States of America in Congress assembled,\ninspected for grading and certification, but this shall not prohibit re-\nThat subsection (5 of Section 2 of the Perishable Agricul-\nsorting and discarding inferior produce.\ntural Commodities Act, 1930, as amended (7 U.S.C.\nis hereby amended by striking out the semicolon at the end\nthereof and substituting a colon and the following: \"Pro-\nvided, That any commission merchant, dealer or broker who\nhas violated this subsection may, without the consent of the\nSecretary, admit the violation or violations and pay a mone-\ntary penalty not to exceed $2,000 in lieu of a formal pro-\nceeding for the suspension or revocation of license, any pay-\nment so made to be deposited into the Treasury of the United\nStates as miscellaneous receipts;\".\nS.R. 1036\nS.R. 1036\nH.R. 13264\nAinety-third Congress of the United States of America\nAT THE SECOND SESSION\nBegun and held at the City of Washington on Monday, the twenty-first day of January,\none thousand nine hundred and seventy-four\nLIBRARY\nAn Act\nFORD\nTo amend the provisions of the Perishable Agricultural Commodities Act, 1930,\nrelating to practices in the marketing of perishable agricultural commodities.\nGERALD\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That subsection (5)\nof section 2 of the Perishable Agricultural Commodities Act, 1930, as\namended (7 U.S.C. 499b(5)), is hereby amended by striking out the\nsemicolon at the end thereof and substituting a colon and the follow-\ning: \"Provided, That any commission merchant, dealer, or broker who\nhas violated this subsection may, with the consent of the Secretary,\nadmit the violation or violations and pay a monetary penalty not to\nexceed $2,000 in lieu of a formal proceeding for the suspension or\nrevocation of license, any payment SO made to be deposited into the\nTreasury of the United States as miscellaneous receipts;\".\nSpeaker of the House of Representatives.\nVice President of the United States and\nPresident of the Senate.\nH.R. 13264\nAinety-third Congress of the United States of America\nAT THE SECOND SESSION\nBegun and held at the City of Washington on Monday, the twenty-first day of January,\nFITHM THE\none thousand nine hundred and seventy-four\nRECEIVED\nAUG 2 1974\nAn Act\nTo amend the provisions of the Perishable Agricultural Commodities Act, 1930,\nrelating to practices in the marketing of perishable agricultural commodities.\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That subsection (5)\nof section 2 of the Perishable Agricultural Commodities Act, 1930, as\namended (7 U.S.C. 499b(5)), is hereby amended by striking out the\nsemicolon at the end thereof and substituting a colon and the follow-\ning: \"Provided, That any commission merchant, dealer, or broker who\nhas violated this subsection may, with the consent of the Secretary,\nadmit the violation or violations and pay a monetary penalty not to\nexceed $2,000 in lieu of a formal proceeding for the suspension or\nrevocation of license, any payment so made to be deposited into the\nTreasury of the United States as miscellaneous receipts;\".\nLare albert\nSpeaker of the House of Representatives.\nVive President of the United States and\nAPPROVED\nacting President of the Senate pro Temper\nAUG 1 1974\nR. Fl\nGERALD FORD LIBRARY\nAugust 2, 1974\nDear Mr. Director:\nThe following bills were received at the White\nHouse on August 2nd:\nH.R. 8217\nH.R. 10309\nH.R. 13264\nPlease let the President have reports and\nrecommendations as to the approval of these\nbills as soon as possible.\nSincerely,\nRobert D. Linder\nFORD LIBRARY & GERALD\nChief Executive Clerk\nThe Honorable Roy L. Ash\nDirector\nOffice of Management and Budget\nWashington, D. C."
}