§499h — Title 7 Agriculture | U.S. Code

Summary

The Secretary can make public the facts and can suspend a commission merchant’s, dealer’s, or broker’s license for up to 90 days if they break the rules. If the misconduct is serious or repeated, or if the person is convicted in federal court, the Secretary can cancel the license. Instead of suspension or cancellation, the Secretary can fine up to $2,000 for each bad transaction or for each day the problem continues. The Secretary must consider the business size, number of employees, and how bad the violation was. Money from fines goes to the U.S. Treasury. Someone operating without a valid license can also be sued in court to stop the business. A licensee may not hire anyone whose license is revoked or suspended, anyone found after a hearing to have committed serious or repeated violations (unless their suspension has ended), or anyone with an unpaid reparation award issued within two years (subject to appeal). If a license was gotten by false statements or hiding violations, the Secretary can revoke it after 30 days’ notice and a hearing, and bar related applicants from getting a license except as the law allows.

Title 7, §499h

Agriculture — Source: USLM XML via OLRC

(a)Whenever (1) the Secretary determines, as provided in section 499f of this title, that any commission merchant, dealer, or broker has violated any of the provisions of section 499b of this title, or (2) any commission merchant, dealer, or broker has been found guilty in a Federal court of having violated section 499n(b) of this title, the Secretary may publish the facts and circumstances of such violation and/or, by order, suspend the license of such offender for a period not to exceed ninety days, except that, if the violation is flagrant or repeated, the Secretary may, by order, revoke the license of the offender.

(b)Except with the approval of the Secretary, no licensee shall employ any person, or any person who is or has been responsibly connected with any person—

(1)whose license has been revoked or is currently suspended by order of the Secretary;

(2)who has been found after notice and opportunity for hearing to have committed any flagrant or repeated violation of section 499b of this title, but this provision shall not apply to any case in which the license of the person found to have committed such violation was suspended and the suspension period has expired or is not in effect; or

(3)against whom there is an unpaid reparation award issued within two years, subject to his right of appeal under section 499g(c) of this title.

(c)If, after a license shall have been issued to an applicant, the Secretary believes that the license was obtained through a false or misleading statement in the application therefor or through a misrepresentation, concealment, or withholding of facts respecting any violation of this chapter by any officer, agent, or employee, he may, after thirty days’ notice and an opportunity for a hearing, revoke said license, whereupon no license shall be issued to said applicant or any applicant in which the person responsible for such false or misleading statement or misrepresentation, concealment, or withholding of facts is financially interested, except under the conditions set forth in section 499d(b) of this title.

(d)In addition to being subject to the penalties provided by section 499c(a) of this title, any commission merchant, dealer, or broker who engages in or operates such business without a valid and effective license from the Secretary shall be liable to be proceeded against in any court of competent jurisdiction in a suit by the United States for an injunction to restrain such defendant from further continuing so to engage in or operate such business, and, if the court shall find that the defendant is continuing to engage in such business without a valid and effective license, the court shall issue an injunction to restrain such defendant from continuing to engage in or to operate such business without such license.

(e)In lieu of suspending or revoking a license under this section when the Secretary determines, as provided by section 499f of this title, that a commission merchant, dealer, or broker has violated section 499b of this title or subsection (b) of this section, the Secretary may assess a civil penalty not to exceed $2,000 for each violative transaction or each day the violation continues. In assessing the amount of a penalty under this subsection, the Secretary shall give due consideration to the size of the business, the number of employees, and the seriousness, nature, and amount of the violation. Amounts collected under this subsection shall be deposited in the Treasury of the United States as miscellaneous receipts.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 558 of this title.

Amendments

1995—Subsec. (b). Pub. L. 104–48, § 12(b), inserted at end “The Secretary may extend the period of employment sanction as to a responsibly connected person for an additional one-year period upon the determination that the person has been unlawfully employed as provided in this subsection.” Subsec. (e). Pub. L. 104–48, § 11, added subsec. (e). 1991—Subsec. (a). Pub. L. 102–237 redesignated cls. (a) and (b) as (1) and (2), respectively, and substituted a period for semicolon at end. 1962—Subsec. (b). Pub. L. 87–725 amended subsec. (b) generally, and among other changes, provided that any licensee hiring any person without the Secretary’s approval in violation of this section, after notice and opportunity for hearing, may have his license suspended or revoked, that the restrictions shall apply to persons found, after notice and opportunity for hearing, to have committed any flagrant or repeated violation of section 499b of this title, but not where such violator’s license was suspended and the suspension has expired or is not in effect, and shall also apply to persons against whom there is a unpaid reparation award issued within two years, subject to appeal under section 499g(c) of this title, permitted the Secretary to approve employment at any time following nonpayment of a reparation award, or after one year following the revocation or finding of flagrant and repeated violation of section 499b of this title, if the licensee furnishes a bond as assurance that his business will be conducted in accordance with this chapter and he will pay all reparation awards issued within four years following approval, subject to appeal under section 499g(c) of this title, or without bond after two years from the

Effective Date

of the disciplinary order, authorized the Secretary to increase or decrease the amount of bond, and required licensees notified of an increased bond to provide such in a reasonable time or the approval of employment will terminate. 1956—Subsec. (b). Act July 30, 1956, provided for suspension of licenses, and restricted authority to permit employment to those cases where licenses have been revoked or suspended for failure to pay a reparation award. 1937—Subsec. (a). Act Aug. 20, 1937, among other changes, inserted cl. (a) designation and inserted “or (b) any commission merchant, dealer, or broker has been found guilty in a Federal court of having violated section 499n(b) of this title” after “section 499b of this title”. Subsec. (b). Act Aug. 20, 1937, amended subsec. (b) generally. Subsecs. (c), (d). Act Aug. 20, 1937, added subsecs. (c) and (d). 1934—Subsec. (b). Act Apr. 13, 1934, added subsec. (b).

§499h Grounds for Suspension or Revocation of License