Texas onion seller satisfies PACA reparation order

The USDA has lifted sanctions on Jack Humphreys, doing business as Zia Onion Sales, after the Texas company satisfied a reparation order.

The $8,457 order was issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transactions, according to the USDA. The Desoto, Texas company can continue operating in the produce industry after applying for and being issued a PACA license, according to a Dec. 2 UDSA announcement.

Jack Humphreys was listed as the sole proprietor of the business and may now be employed by or affiliated with any PACA licensee.

PACA provides an administrative forum to handle disputes involving produce transactions. The USDA may issue a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables.

USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.

USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license to operate in the industry.