PACA has 30 days from receiving a fully completed application to issue or deny the license. If PACA denies the license, there is a prompt hearing before a USDA Administrative Law Judge, who decides whether the license should be issued.
Difficulties in the licensing process arise when company officials have been involved in violations of PACA or in a bankruptcy, or if the application is incomplete or contains unclear information. In these cases, PACA usually returns the application and requests further details before deciding whether to grant or deny the license.
PACA will deny a license if, within two (2) years of applying for a license, the company or any officer, director or >10% shareholder has: been found to have committed repeated and flagrant PACA violations; been found guilty in a court of fraudulent dumping or making false statements; failed to pay a reparation award; or is suspended for any other reasons.
These applicants may obtain a license after two (2) years from the prohibited conduct, but only if a bond is posted. See Licensee Bond. If the applicant waits three (3) years from the prohibited conduct, no bond is required to obtain the license.
PACA may deny a license if the applicant has: engaged in any practice prohibited by PACA; been convicted of a felony in any State or Federal Court; submitted false information in the license application; or been discharged in bankruptcy within three (3) years of applying for a license.
If PACA denies a license application, the applicant should consult a lawyer to determine what action should be taken.