PACA moves

The PACA Working Group for the fruit and vegetable industry advisory committee made three motions that found approval of the committee today. One of the recommendations was to raise the PACA informal complaint filing fee from $60 to $100 and the formal complaint fee from $100 to $500. That recommendation was approved.

Another motion approved by the committee was the recommendation to raise PACA license fees in fiscal year 2010 so that the PACA Trust Fund will not fall below the threshold level of 25% of the program's budget obligations by 2012. The recommendation doesn't mention a specific dollar amount, but in discussions the fees were described as increasing from $550 to $1,150.

Finally, the working group recommended and the committee approved that the USDA create a fee structure for those who request PACA audits in connection with reparation complaints. The audit fee structure would be $1,000 for licensees and $3,000 for non-licensees.

Some in the working group said that foreign companies sometimes request PACA audits as a "fishing expedition" About half of he PACA's 400 audits last year were requested by non-U.S. firms.

The working group noted that the fee structure for audits would help recoup the $6,500 it takes on average to conduct an audit.

The working group considered why retailers don't pay license fees, and "whether this could be changed." The working group was informed by USDA that the present fee structure is a result of a compromise reached in 1995 after a debate about the merits of keeping the PACA in effect. Requiring retailers to pay would only be possible by opening up the PACA law itself to revision - not a wise move when some may want to derail it again.
From a working group memo:


"The consensus of the working group was that to try to change the law now was not an option."