Compromise PACA Legislation: H.R. 1103
On August 4, 1995 the House of Representatives passed H.R.
1103, a compromise bill to reform the Perishable Agricultural Commodities Act
(PACA). H.R. 1103 was then referred to the Senate Agriculture Committee.
H.R. 1103 would phase-out license fees for retailers and wholesale grocers,
improve PACA trust protection for suppliers of perishable commodities, provide
for monetary penalties for PACA violations, streamline program operations, and
provide more due process for businesses under investigation for PACA
violations. H.R. 1103 has the support of numerous groups including: American
Farm Bureau Federation, American Frozen Food Institute, Florida Fruit and
Vegetable Association, Western Growers Association, Food Marketing Institute,
National-American Wholesale Grocers' Association and the National Grocers
Association.
PACA was enacted in 1930 and provides for an efficient low-cost means of
resolving business disputes outside the court system. PACA also helps assure
that the sellers of perishable commodities (farmers, shippers, wholesalers and
distributors, etc.) are paid promptly by their buyers. The Department of
Agriculture administers the PACA program at no cost to the taxpayer because the
industry pays for the program's costs through annual licensing fees.
|
|
|