7 U.S.C. § 499h — Grounds for suspension or revocation of

Page 428 TITLE 7—AGRICULTURE § 499h 1938—Subsec. (a). Act June 23, 1938, inserted last two sentences. 1937—Subsec. (a). Act Aug. 20, 1937, among other changes, inserted ‘‘or without hearing as provided in section 499f of this title, paragraphs (c) and (d), or upon failure of the party complained against to answer a complaint duly served within the time prescribed, or to appear at a hearing after being duly notified’’ after ‘‘section 499f’’. Subsec. (b). Act Aug. 20, 1937, among other changes, substituted ‘‘pay the reparation award’’ for ‘‘comply with an order for the payment of money’’. Subsec. (c). Act Aug. 20, 1937, inserted ‘‘together with a bond in double the amount of the reparation award conditioned upon the payment of the judgment entered by the court plus interest and costs, including a reason- able attorney’s fee for the appellee, if the appellee shall prevail’’ after ‘‘upon adverse party’’ and struck out proviso in first sentence and ‘‘by registered mail’’ after ‘‘adverse party’’. Subsec. (d). Act Aug. 20, 1937, inserted proviso. 1936—Subsec. (c). Act June 19, 1936, inserted proviso in first sentence and ‘‘by registered mail’’ after ‘‘ad- verse party’’. 1934—Subsec. (b). Act Apr. 13, 1934, § 11, inserted after first sentence ‘‘The orders, writs and processes of the district courts may in these cases run, be served, and be returnable anywhere in the United States.’’ Subsecs. (c), (d). Act Apr. 13, 1934, §§ 12, 13, added sub- secs. (c) and (d). § 499h. Grounds for suspension or revocation of license (a) Authority of Secretary Whenever (1) the Secretary determines, as pro- vided in section 499f of this title, that any com- mission 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 cir- cumstances 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 of- fender. (b) Unlawful employment of certain persons; re- strictions; bond assuring compliance; ap- proval of employment without bond; change in amount of bond; payment of increased amount; penalties Except with the approval of the Secretary, no licensee shall employ any person, or any person who is or has been responsibly connected with any person— (1) whose license has been revoked or is cur- rently suspended by order of the Secretary; (2) who has been found after notice and op- portunity 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 ex- pired or is not in effect; or (3) against whom there is an unpaid repara- tion award issued within two years, subject to his right of appeal under section 499g(c) of this title. The Secretary may approve such employment at any time following nonpayment of a reparation award, or after one year following the revoca- tion or finding of flagrant or repeated violation of section 499b of this title, if the licensee fur- nishes and maintains a surety bond in form and amount satisfactory to the Secretary as assur- ance that such licensee’s business will be con- ducted in accordance with this chapter and that the licensee will pay all reparation awards, sub- ject to its right of appeal under section 499g(c) of this title, which may be issued against it in connection with transactions occurring within four years following the approval. The Secretary may approve employment without a surety bond after the expiration of two years from the effec- tive date of the applicable disciplinary order. The Secretary, based on changes in the nature and volume of business conducted by the li- censee, may require an increase or authorize a reduction in the amount of the bond. A licensee who is notified by the Secretary to provide a bond in an increased amount shall do so within a reasonable time to be specified by the Sec- retary, and if the licensee fails to do so the ap- proval of employment shall automatically ter- minate. The Secretary may, after thirty days notice and an opportunity for a hearing, suspend or revoke the license of any licensee who, after the date given in such notice, continues to em- ploy any person in violation of this section. The Secretary may extend the period of employment sanction as to a responsibly connected person for an additional one-year period upon the deter- mination that the person has been unlawfully employed as provided in this subsection. (c) Fraud in procurement If, after a license shall have been issued to an applicant, the Secretary believes that the li- cense was obtained through a false or mis- leading 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 oppor- tunity for a hearing, revoke said license, where- upon no license shall be issued to said applicant or any applicant in which the person responsible for such false or misleading statement or mis- representation, concealment, or withholding of facts is financially interested, except under the conditions set forth in section 499d(b) of this title. (d) Injunction In addition to being subject to the penalties provided by section 499c(a) of this title, any commission merchant, dealer, or broker who en- gages 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 ef- fective license, the court shall issue an injunc- tion to restrain such defendant from continuing to engage in or to operate such business without such license. Page 429 TITLE 7—AGRICULTURE § 499k (e) Alternative civil penalties In lieu of suspending or revoking a license under this section when the Secretary deter- mines, as provided by section 499f of this title, that a commission merchant, dealer, or broker has violated section 499b of this title or sub- section (b) of this section, the Secretary may as- sess 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, na- ture, and amount of the violation. Amounts col- lected under this subsection shall be deposited in the Treasury of the United States as mis- cellaneous receipts. (June 10, 1930, ch. 436, § 8, 46 Stat. 535; Apr. 13, 1934, ch. 120, § 14, 48 Stat. 588; Aug. 20, 1937, ch. 719, § 11, 50 Stat. 730; July 30, 1956, ch. 786, § 5, 70 Stat. 727; Pub. L. 87–725, § 11, Oct. 1, 1962, 76 Stat. 675; Pub. L. 102–237, title X, § 1011(6), Dec. 13, 1991, 105 Stat. 1898; Pub. L. 104–48, §§ 11, 12(b), Nov. 15, 1995, 109 Stat. 430, 431.) 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 employ- ment sanction as to a responsibly connected person for an additional one-year period upon the determination that the person has been unlawfully employed as pro- vided 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 pe- riod 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 ap- proval in violation of this section, after notice and op- portunity 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 sec- tion 499b of this title, but not where such violator’s li- cense 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 employ- ment at any time following nonpayment of a repara- tion 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 as- surance that his business will be conducted in accord- ance 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 in- crease or decrease the amount of bond, and required li- censees 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 sus- pension of licenses, and restricted authority to permit employment to those cases where licenses have been re- voked 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). § 499i. Accounts, records, and memoranda; duty of licensees to keep; contents; suspension of license for violation of duty Every commission merchant, dealer, and broker shall keep such accounts, records, and memoranda as fully and correctly disclose all transactions involved in his business, including the true ownership of such business by stock- holding or otherwise. If such accounts, records, and memoranda are not so kept, the Secretary may publish the facts and circumstances and/or, by order, suspend the license of the offender for a period not to exceed ninety days. (June 10, 1930, ch. 436, § 9, 46 Stat. 535.) Editorial Notes CODIFICATION Section was formerly classified to section 559 of this title. § 499j. Orders; effective date; continuance in force; suspension, modification and setting aside; penalty Any order of the Secretary under this chapter other than an order for the payment of money shall take effect within such reasonable time, not less than ten days, as is prescribed in the order, and shall continue in force until his fur- ther order, or for a specified period of time, ac- cordingly as it is prescribed in the order, unless such order is suspended, modified, or set aside by the Secretary or is suspended, modified, or set aside by a court of competent jurisdiction. Any such order of the Secretary, if regularly made, shall be final, unless before the date pre- scribed for its taking effect application is made to a court of competent jurisdiction by the com- mission merchant, dealer, or broker against whom such order is directed to have such order set aside or its enforcement, operation, or exe- cution suspended or restrained. (June 10, 1930, ch. 436, § 10, 46 Stat. 535.) Editorial Notes CODIFICATION Section was formerly classified to section 560 of this title. § 499k. Injunctions; application of injunction laws governing orders of Interstate Com- merce Commission For the purposes of this chapter the provisions of all laws relating to the suspending or re- straining of the enforcement, operation, or exe- cution, or the setting-aside, in whole or in part, of the orders of the Interstate Commerce Com- mission are made applicable to orders of the