MEB & PACA
While there is some crossover between MEB and PACA’s areas of authority, as both license those involved in produce handling, the two are distinct agencies with their own approach.
Chiesa explains the difference: “PACA is a federal agency with jurisdiction over product handled interstate and in foreign commerce; MEB is a state agency with jurisdiction over product grown only in California. However, PACA and MEB may share basic information regarding entities required to be licensed with both agencies or that have had disciplinary action taken against them.”
Industry Scorecard
As with any governmental regulatory body, the proof of the pudding is in the eating, and the effectiveness of MEB can be measured by talking to attorneys and industry sources who have worked with the agency.
“In my opinion, MEB is not as influential as the USDA’s PACA, but they do help as much as possible,” says Shandler. “They’ve always been responsive even if they were not able to help solve the issue, they do provide relevant information, and have always followed up on our inquiries.”
Positives
Though legal considerations sometimes prevent the disclosure of full details of investigations, Shandler recalls a specific case where her company requested MEB investigate a produce wholesaler to determine if it was in violation of legal practices. When the investigation indeed found such violations, the business closed up shop and moved to a different area under another name, but MEB enforcement eventually prevented the company from doing further business in southern California.
Patricia J. Rynn, a partner with Los Angeles-based law firm Rynn & Janowsky LLP, has also worked with MEB on both sides of the fence.
“I have represented growers in claims filed with MEB via verified complaints, and have represented buyers and commission merchants in defending claims brought against them by growers,” she explains.
“I have also defended commission merchants and marketing agents when MEB sought to suspend or revoke their licenses.” In many cases, mediation worked to the benefit of all involved parties. “Through 2013,
MEB was very effective in resolving verified complaints against a licensee by conducting mediations,” says Rynn. “These mediations, more often than not, succeeded in obtaining a settlement satisfactory to both sides.”
Rynn also recalled a case in which the MEB’s quick action prevented violation of the Food & Agricultural Code: “A licensed produce dealer had sold a load to another licensee, but became concerned when the driver was directed by the buyer to divert the load from the original destination.” After calling MEB and filing a complaint on behalf of the shipper, Rynn says the load was quickly tracked down and “MEB was able to prevent the theft of highly perishable commodities by an unscrupulous and dishonest licensee.” She applauds the Branch’s “swift and decisive action, a rare trait indeed for a regulatory agency.”
