7 U.S.C. § 204 — Bond and suspension of registrants

Page 340 TITLE 7—AGRICULTURE § 202 buying or selling in commerce livestock, either on his own account or as the employee or agent of the vendor or purchaser. (Aug. 15, 1921, ch. 64, title III, § 301, 42 Stat. 163; Pub. L. 85–909, § 2(1), Sept. 2, 1958, 72 Stat. 1750; Pub. L. 94–410, § 3(c), Sept. 13, 1976, 90 Stat. 1249; Pub. L. 114–237, § 2, Oct. 7, 2016, 130 Stat. 970.) Editorial Notes AMENDMENTS 2016—Pub. L. 114–237, § 2(b)(1), substituted ‘‘In this chapter:’’ for ‘‘When used in this chapter—’’ in intro- ductory provisions. Subsec. (a). Pub. L. 114–237, § 2(b)(2), substituted pe- riod for semicolon at end. Subsec. (b). Pub. L. 114–237, § 2(b)(3)(B), substituted period for semicolon at end. Pub. L. 114–237, § 2(b)(3)(A), which directed amend- ment of subsec. (b) by substituting ‘‘weighing’’ for ‘‘weighting’’, could not be executed because the word ‘‘weighing’’ already appeared in text. Subsec. (c). Pub. L. 114–237, § 2(a), substituted period for ‘‘; and’’ after ‘‘stockyard services’’ and inserted at end ‘‘Beginning on October 7, 2016, such term includes any person who engages in the business of buying or selling livestock, on a commission or other fee basis, through the use of online, video, or other electronic methods when handling or providing the means to han- dle receivables or proceeds from such buying or selling, so long as such person’s annual average of online, video, or electronic sales of livestock, on a commission or other fee basis, exceeds $250,000.’’ 1976—Subsecs. (b) to (d). Pub. L. 94–410 substituted ‘‘livestock’’ for ‘‘live stock’’. 1958—Subsecs. (c), (d). Pub. L. 85–909 struck out ‘‘at a stockyard’’ after ‘‘livestock’’. § 202. ‘‘Stockyard’’ defined; determination by Sec- retary as to particular yard (a) When used in this subchapter the term ‘‘stockyard’’ means any place, establishment, or facility commonly known as stockyards, con- ducted, operated, or managed for profit or non- profit as a public market for livestock pro- ducers, feeders, market agencies, and buyers, consisting of pens, or other inclosures, and their appurtenances, in which live cattle, sheep, swine, horses, mules, or goats are received, held, or kept for sale or shipment in commerce. (b) The Secretary shall from time to time as- certain, after such inquiry as he deems nec- essary, the stockyards which come within the foregoing definition, and shall give notice there- of to the stockyard owners concerned, and give public notice thereof by posting copies of such notice in the stockyard, and in such other man- ner as he may determine. After the giving of such notice to the stockyard owner and to the public, the stockyard shall remain subject to the provisions of this subchapter until like no- tice is given by the Secretary that such stock- yard no longer comes within the foregoing defi- nition. (Aug. 15, 1921, ch. 64, title III, § 302, 42 Stat. 163; Pub. L. 85–909, § 2(2), Sept. 2, 1958, 72 Stat. 1750; Pub. L. 90–446, § 1(a), July 31, 1968, 82 Stat. 474.) Editorial Notes AMENDMENTS 1968—Subsec. (a). Pub. L. 90–446 substituted ‘‘oper- ated, or managed for profit or nonprofit as a public market for livestock producers, feeders, market agen- cies, and buyers’’ for ‘‘or operated for compensation or profit as a public market’’. 1958—Subsec. (a). Pub. L. 85–909 struck out ‘‘Said sec- tions shall not apply to a stockyard of which the area normally available for handling livestock, exclusive of runs, alleys, or passage ways, is less than twenty thou- sand square feet.’’ Statutory Notes and Related Subsidiaries TRANSPORTATION OF LIVESTOCK Pub. L. 85–909, § 2(2), Sept. 2, 1958, 72 Stat. 1750, pro- vided in part: ‘‘That nothing herein [this section] shall be deemed a definition of the term ‘public stockyards’ as used in section 15(5) of the Interstate Commerce Act [former 49 U.S.C. 15(5)]’’. § 203. Activity as stockyard dealer or market agency; benefits to business and welfare of stockyard; registration; penalty for failure to register After the expiration of thirty days after the Secretary has given public notice that any stockyard is within the definition of section 202 of this title, by posting copies of such notice in the stockyard, no person shall carry on the busi- ness of a market agency or dealer at such stock- yard unless (1) the stockyard owner has deter- mined that his services will be beneficial to the business and welfare of said stockyard, its pa- trons, and customers, which determination shall be made on a basis which is not unreasonable or unjustly discriminatory, and has given written authorization to such person, and (2) he has reg- istered with the Secretary, under such rules and regulations as the Secretary may prescribe, his name and address, the character of business in which he is engaged, and the kinds of stockyards services, if any, which he furnishes at such stockyard. Every other person operating as a market agency or dealer as defined in section 201 of this title may be required to register in such manner as the Secretary may prescribe. Whoever violates the provisions of this section shall be liable to a penalty of not more than $500 for each such offense and not more than $25 for each day it continues, which shall accrue to the United States and may be recovered in a civil action brought by the United States. (Aug. 15, 1921, ch. 64, title III, § 303, 42 Stat. 163; Pub. L. 85–909, § 2(3), Sept. 2, 1958, 72 Stat. 1750; Pub. L. 90–446, § 1(b), July 31, 1968, 82 Stat. 474.) Editorial Notes AMENDMENTS 1968—Pub. L. 90–446 designated existing provisions as cl. (2) and added cl. (1). 1958—Pub. L. 85–909 inserted ‘‘Every other person op- erating as a market agency or dealer as defined in sec- tion 201 of this title may be required to register in such manner as the Secretary may prescribe.’’ § 204. Bond and suspension of registrants On and after July 12, 1943, the Secretary may require reasonable bonds from every market agency (as defined in this subchapter), every packer (as defined in subchapter II of this chap- ter) in connection with its livestock purchasing operations (except that those packers whose av- erage annual purchases do not exceed $500,000 Page 341 TITLE 7—AGRICULTURE § 207 will be exempt from the provisions of this para- graph), and every other person operating as a dealer (as defined in this subchapter) under such rules and regulations as he may prescribe, to se- cure the performance of their obligations, and whenever, after due notice and hearing, the Sec- retary finds any registrant is insolvent or has violated any provisions of this chapter he may issue an order suspending such registrant for a reasonable specified period. Such order of sus- pension shall take effect within not less than five days, unless suspended or modified or set aside by the Secretary or a court of competent jurisdiction. If the Secretary finds any packer is insolvent, he may after notice and hearing issue an order under the provisions of section 193 of this title requiring such packer to cease and de- sist from purchasing livestock while insolvent, or while insolvent purchasing livestock except under such conditions as the Secretary may pre- scribe to effectuate the purposes of this chapter. (July 12, 1943, ch. 215, 57 Stat. 422; Pub. L. 94–410, §§ 1, 4, Sept. 13, 1976, 90 Stat. 1249.) Editorial Notes CODIFICATION Section was enacted as part of the Department of Ag- riculture Appropriation Act, 1944, act July 12, 1943, and not as part of the Packers and Stockyards Act, 1921, which comprises this chapter. AMENDMENTS 1976—Pub. L. 94–410 inserted provisions exempting market agencies and packers whose average annual purchases do not exceed $500,000 from bonding require- ment and authorizing Secretary, after notice and hear- ing, to issue cease and desist orders to insolvent pack- ers prohibiting the purchase of livestock except under conditions prescribed by Secretary, respectively. PRIOR PROVISIONS Provisions similar to those in this section were con- tained in the following prior appropriation acts: July 22, 1942, ch. 516, 56 Stat. 689. July 1, 1941, ch. 267, 55 Stat. 432. June 25, 1940, ch. 421, 54 Stat. 557. June 30, 1939, ch. 253, title I, 53 Stat. 970. June 16, 1938, ch. 464, title I, 52 Stat. 721. June 29, 1937, ch. 404, 50 Stat. 406. June 4, 1936, ch. 489, 49 Stat. 1432. May 17, 1935, ch. 131, title I, 49 Stat. 257. Mar. 26, 1934, ch. 89, 48 Stat. 477. Mar. 3, 1933, ch. 203, 47 Stat. 1441. July 7, 1932, ch. 443, 47 Stat. 620. Feb. 23, 1931, ch. 278, 46 Stat. 1252. May 27, 1930, ch. 341, 46 Stat. 402. Feb. 16, 1929, ch. 227, 45 Stat. 1198. May 16, 1928, ch. 572, 45 Stat. 547. Jan. 18, 1927, ch. 39, 44 Stat. 1002. May 11, 1926, ch. 286, 44 Stat. 527. Feb. 10, 1925, ch. 200, 43 Stat. 851. June 5, 1924, ch. 266, 43 Stat. 460. § 205. General duty as to services; revocation of registration All stockyard services furnished pursuant to reasonable request made to a stockyard owner or market agency at such stockyard shall be reasonable and nondiscriminatory and stock- yard services which are furnished shall not be refused on any basis that is unreasonable or un- justly discriminatory: Provided, That in any State where the weighing of livestock at a stockyard is conducted by a duly authorized de- partment or agency of the State, the Secretary, upon application of such department or agency, may register it as a market agency for the weighing of livestock received in such stock- yard, and upon such registration such depart- ment or agency and the members thereof shall be amenable to all the requirements of this chapter, and upon failure of such department or agency or the members thereof to comply with the orders of the Secretary under this chapter he is authorized to revoke the registration of such department or agency and to enforce such revocation as provided in section 216 of this title. (Aug. 15, 1921, ch. 64, title III, § 304, 42 Stat. 164; May 5, 1926, ch. 240, 44 Stat. 397; Pub. L. 90–446, § 1(c), July 31, 1968, 82 Stat. 474.) Editorial Notes AMENDMENTS 1968—Pub. L. 90–446 inserted provision requiring that stockyard services which are furnished not be refused on any basis that is unreasonable or unjustly discrimi- natory. 1926—Act May 5, 1926, inserted proviso. § 206. Rates and charges generally; discrimina- tion All rates or charges made for any stockyard services furnished at a stockyard by a stockyard owner or market agency shall be just, reason- able, and nondiscriminatory, and any unjust, unreasonable, or discriminatory rate or charge is prohibited and declared to be unlawful: Pro- vided, That rates and charges based upon per- centages of the gross sales prices of livestock shall not be prohibited merely because they are based upon such percentages rather than on a per head basis. (Aug. 15, 1921, ch. 64, title III, § 305, 42 Stat. 164; Pub. L. 95–409, § 1(a), Oct. 2, 1978, 92 Stat. 886.) Editorial Notes AMENDMENTS 1978—Pub. L. 95–409 inserted proviso that rates and charges based upon percentages of gross sales of live- stock shall not be prohibited merely because based on such percentages rather than on a per head basis. § 207. Schedule of rates (a) Filing; public inspection Within sixty days after the Secretary has given public notice that a stockyard is within the definition of section 202 of this title, by posting copies of such notice in the stockyard, the stockyard owner and every market agency at such stockyard shall file with the Secretary, and print and keep open to public inspection at the stockyard, schedules showing all rates and charges for the stockyard services furnished by such person at such stockyard. If a market agen- cy commences business at the stockyard after the expiration of such sixty days such schedules must be filed before any stockyard services are furnished. (b) Detail required; form Such schedules shall plainly state all such rates and charges in such detail as the Secretary