Page:United States Statutes at Large Volume 109 Part 1.djvu/446

This page needs to be proofread.


109 STAT. 430 PUBLIC LAW 104-48—NOV. 15, 1995 after paragraph (12), as added by section 2, the following new paragraph: "(13) The term 'collateral fees and expenses' means any promotional allowances, rebates, service or materials fees paid or provided, directly or indirectly, in connection with the distribution or marketing of any perishable agricultural commodity.". (b) USE OF DEFINITION.—Section 2 of such Act (7 U.S.C. 499b) is amended— (1) by striking "commerce—" in the matter before paragraph (1) and inserting "commerce:"; (2) by striking the semicolon at the end of each paragraph and inserting a period; and (3) in paragraph (4), by adding at the end the following new sentence: "However, this paragraph shall not be considered to make the good faith offer, solicitation, payment, or receipt of collateral fees and expenses, in and of itself, unlawful under this Act.". SEC. 10. CLARIFICATION OF MISBRANDING PROHIBITION. Section 2(5) of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499b(5)), is amended— (1) by striking "commerce: Provided, That" and inserting "commerce. However,"; and (2) by adding at the end the following new sentence: "A person other than the first licensee handling misbranded perishable agricultural commodities shall not be held liable for a violation of this paragraph by reason of the conduct of another if the person did not have knowledge of the violation or lacked the ability to correct the violation.". SEC. 11. IMPOSITION OF CIVIL PENALTY IN LIEU OF LICENSE SUSPEN- SION OR REVOCATION. Section 8 of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499h), is amended by adding at the end the following new subsection: "(e) ALTERNATIVE CIVIL PENALTIES.—In lieu of suspending or revoking a license under this section when the Secretary determines, as provided by section 6, that a commission merchant, dealer, or broker has violated section 2 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.". SEC. 12. EXTENSION OF SANCTIONS TO PERSONS RESPONSIBLY CON- NECTED TO A COMMISSION MERCHANT, DEALER, OR BROKER. (a) EXCEPTION TO DEFINITION.—Section 1(b)(9) of the Perishable Agricultural Commodities Act, 1930 (7 U.S.C. 499a(b)(9)), is amended by adding at the end the following new sentence: "A person shall not be deemed to be responsibly connected if the person demonstrates by a preponderance of the evidence that the person was not actively involved in the activities resulting in a violation of this Act and that the person either was only nominally