CHAPTER 6. Processors of Farm Products [55401. - 55922.]
Chapter 6 enacted by Stats. 1967, Ch. 15.
§§ 55401–55922 · 149 sections
ARTICLE 1. Definitions §§ 55401–55409 · 12 sections
- § 55401 Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
- § 55402 “Agent” means any person that on behalf of any processor contracts for or solicits any farm product from a producer of the farm product, or that negotiates the…
- § 55402.3 “Cash” means coin or currency of the United States, and does not include a check or money order.
- § 55402.5 “Cash buying processor” means any person who is engaged in the business of processing or manufacturing any farm product; who obtains from the producer of any…
- § 55403 “Farm product” includes every agricultural, horticultural, viticultural, or vegetable product of the soil, honey and beeswax, oilseeds, poultry, poultry…
- § 55404 “Lender” includes any person that advances new value to a processor.
- § 55404.5 “Licensee” means any person licensed under the provisions of this chapter as a processor or cash buying processor.
- § 55405 “New value” includes any new advance or loan, whether in money or other property, which is made by a lender to a processor. It does not, however, include any…
- § 55406 “Packout basis” means that payment for the farm product is based on the grade or quality of the finished product, as determined at the completion of the…
- § 55407 “Processor” means any person that is engaged in the business of processing or manufacturing any farm product, that solicits, buys, contracts to buy, or…
- § 55408 “Producer” means any person that is engaged in the business of growing or producing any farm product.
- § 55409 Juice or must used for wine which, as a condition of sale, is required to be pressed or crushed from grapes in the field or at a facility not owned by the…
ARTICLE 2. General Provisions §§ 55431–55439 · 9 sections
- § 55431 The marketing of agricultural commodities within this state is hereby declared to be affected with the public interest. The provisions of this chapter are…
- § 55432 The director may publish in pamphlet form as often as he thinks necessary a list of processors that are licensed pursuant to this chapter, together with all…
- § 55433 (a) Any money in the Department of Food and Agriculture Fund that was derived pursuant to this chapter, or Chapter 7 (commencing with Section 56101), may be…
- § 55435 No provisions in any bond which is given pursuant to any provision of this chapter which attempts by contract to shorten the period which is prescribed for the…
- § 55435.5 (a) Except pursuant to an exemption granted by the department, no person licensed under this chapter shall employ as an agent any person who meets any of the…
- § 55436 Civil suits and criminal prosecutions which arise by virtue of any provision of this chapter may be commenced and tried in any of the following: (a) The county…
- § 55437 The rights, remedies, and penalties which are provided for in this chapter are in addition to any other rights, remedies, or penalties which are provided for…
- § 55438 Except as otherwise provided in this chapter, the provisions of Part 2 (commencing with Section 307) of the Code of Civil Procedure are applicable to, and…
- § 55439 If any clause, sentence, paragraph, or part of this chapter is for any reason adjudged by any court of competent jurisdiction to be invalid, such judgment…
ARTICLE 3. Exceptions §§ 55461–55462 · 2 sections
- § 55461 This chapter does not apply to or include any nonprofit cooperative association which is organized and operating pursuant to Chapter 1 (commencing with Section…
- § 55462 For the purposes of trading in cattle, this chapter does not apply to or include any person who is bonded under the federal Packers and Stockyards Act, 1921 (7…
ARTICLE 4. Agent’s License §§ 55481–55493 · 13 sections
- § 55481 A person shall not act as an agent unless such person has first obtained a license as provided in this chapter.
- § 55482 Every person, before acting as an agent, shall file an application with the director for a license to so act. The application shall be accompanied by the…
- § 55483 (a) Each application shall include all of the following: (1) Such information as the department may consider proper or necessary. (2) The name and address of…
- § 55484 The department shall accept or deny an application within 90 calendar days of receipt of a completed application. The department may deny, condition, suspend,…
- § 55484.5 (a) The Legislature finds there to be a substantial nexus between the conduct specified in Section 55484 and an applicant’s or holder’s fitness for licensure.…
- § 55484.75 (a) If an application for a license indicates, or the department determines during the application review process, that the applicant was issued a license that…
- § 55485 The applicant shall satisfy the department of the applicant’s character, responsibility, and good faith in seeking to carry on the business that is stated in…
- § 55485.5 A license is forfeited by operation of law prior to its expiration date when one of the following occurs: (a) The holder surrenders the license to the…
- § 55485.75 (a) The withdrawal of an application for a license after it has been filed with the department does not deprive the department of its authority to institute or…
- § 55488 (a) The department shall notify the applicant or holder in writing of the department’s decision to bring charges to deny or revoke a license. (1) The notice…
- § 55491 The director may issue to each agent a separate license card for each processor represented by the agent.
- § 55492 Any agent that displays a void or expired license card is guilty of a misdemeanor.
- § 55493 Each agent shall show his license upon the request of any interested person.
ARTICLE 5. Processor’s License §§ 55521–55530 · 20 sections
- § 55521 A person shall not act as a processor or a cash buying processor unless he has first obtained a license as provided in this chapter or in Section 56574.
- § 55522 Every person, before acting as a processor or a cash buying processor, shall file an application with the director for a license to so act. The application,…
- § 55522.5 (a) It is unlawful for a licensee that has changed its legal entity to do any of the following: (1) Continue to operate after the change. (2) Purchase or…
- § 55522.6 (a) If the Secretary of State suspends the corporate status of any licensee or if the corporate status is forfeited, the license is revoked by operation of…
- § 55523 (a) Each application shall state all of the following: (1) The full name of the applicant. (2) If the applicant is a firm, exchange, association, or…
- § 55523.1 In addition to the other requirements of this chapter, each application for a license, except for an application for a cash buying processor license, shall…
- § 55523.2 Any balance sheet or financial information prepared, retained, or submitted as required by this chapter that shows the applicant to be in an unsound financial…
- § 55523.3 (a) If the secretary is not satisfied that an applicant or licensee is financially responsible, the secretary may, in lieu of denying, suspending, or revoking…
- § 55523.4 If at any time the secretary has cause or reason to believe that any applicant or licensee is in an unsound financial condition so as to impair his or her…
- § 55523.5 Failure to file a financial statement as required by this chapter or to comply with the affidavit requirements of Section 55523.1 is a violation of this…
- § 55523.6 Any financial statement submitted to the secretary pursuant to this chapter is confidential and shall not be divulged except at a hearing before the secretary…
- § 55524 The department shall accept or deny an application within 90 calendar days of receipt of a completed application. The department may deny, condition, suspend,…
- § 55524.5 (a) The Legislature finds there to be a substantial nexus between the conduct specified in Section 55524 and an applicant’s or holder’s fitness for licensure.…
- § 55524.75 (a) If an application for a license indicates, or the department determines during the application review process, that the applicant was issued a license that…
- § 55525 The applicant shall satisfy the department of the applicant’s character, responsibility, and good faith in seeking to carry on the business that is stated in…
- § 55525.75 (a) The withdrawal of an application for a license after it has been filed with the department does not deprive the department of its authority to institute or…
- § 55527.5 Any person who is adjudicated liable for payment of a claim for farm products which arose out of the conduct of a business licensed or required to be licensed…
- § 55527.6 (a) Licensees or applicants for a license shall be required to furnish and maintain an irrevocable guarantee in a form and amount satisfactory to the secretary…
- § 55528 (a) The department shall notify the applicant or holder in writing of the department’s decision to bring charges to deny or revoke a license. (1) The notice…
- § 55530 Each licensed processor shall post his license, or a copy of it, in his office or salesroom in plain view of the public.
ARTICLE 7. Sale of Farm Products by Weight § 55581 · 1 section
- § 55581 If any farm product is sold to and purchased by any processor on the basis of weight, such product shall be weighed by a weighmaster licensed under the laws of…
ARTICLE 8. Processors §§ 55601–55613 · 22 sections
- § 55601 Every processor shall pay for any farm product which is delivered to the processor at the time and in the manner which is specified in the contract with the…
- § 55601.1 Section 55601.5 shall be known, and may be cited as, the “Clare Berryhill Grape Crush Report Act of 1976.”
- § 55601.3 Upon the following, the processor shall notify the seller, on a form to be prescribed by the department, as to the requirements set forth in Sections 55601 and…
- § 55601.4 Notwithstanding the provisions of Section 55601, every processor who purchases livestock for slaughter shall make full payment of such livestock, by the…
- § 55601.5 (a) (1) Notwithstanding Section 55461, on or before January 31 of every year, every processor who crushes grapes in this state shall furnish to the secretary,…
- § 55601.6 (a) To provide funds to carry out Section 55601.5, each processor who crushes more than 100 tons of grapes in California shall pay to the secretary the amount…
- § 55601.7 Notwithstanding Section 55461, every processor who handles freestone peaches for freezing and drying in California shall furnish to the director, on or before…
- § 55601.8 (a) The secretary shall not release, or otherwise make available, any information furnished by a cooperative or an individual processor under Section 55601.7…
- § 55602 Every processor except a licensed winegrower, that purchases for freezing any farm product from the producer of the farm product on a packout basis shall…
- § 55603 If a specific grade or quality is a condition of a packout basis contract between the producer and the processor, such grade or quality shall be determined at…
- § 55604 Every contract between a processor and a producer which covers the purchase of any farm product on a packout basis shall designate the price to be paid for…
- § 55604.1 Where the processor is operating under continuous United States Department of Agriculture inspection, the United States Department of Agriculture grade…
- § 55604.2 The provisions of Section 55581 of the Agricultural Code and Section 12713 of the Business and Professions Code do not apply to farm products purchased and…
- § 55605 Every processor, except a licensed winegrower, that receives any farm product from the producer of the farm product for processing on a consigned basis shall…
- § 55606 If the processor has entered into a contract with two or more producers or consignors, which provides that the returns for any farm product which is handled…
- § 55607 Every processor shall keep accurate books and records which show the name and address of any producer that is selling and making delivery of any farm product…
- § 55608 Accurate grading and weight receipts shall be given by all processors to each producer, or his agent, upon each and every delivery. Each receipt shall state…
- § 55609 Not later than five days after demand, the processor shall give to every such producer so requesting a full and complete statement of such producer’s account,…
- § 55609.1 Remittance in full of the amount which is realized from such sales, including all collections, overcharges, and damages, less the agreed commission and other…
- § 55610 A processor, in order to prevent loss or economic waste, may resell or redeliver any raw product purchased and received from the producer of the raw product to…
- § 55611 All records required to be kept under this chapter shall be kept for a period of four years.
- § 55613 (a) If the secretary determines by February 1 of any year, commencing in 1992, that an acreage survey of the grape crop is desired by the processors and…
ARTICLE 9. Producer’s Lien §§ 55631–55653 · 25 sections
- § 55631 (a) Every producer of any farm product that sells any product that is grown by him or her to any processor under contract, express or implied, in addition to…
- § 55631.5 Notwithstanding Section 55461, a nonprofit cooperative association acting as a producer bargaining association may assert producer’s lien rights for, or on…
- § 55632 This producer’s lien attaches on all of such delivered product from the date of delivery of such farm product or any portion of it by a producer to any…
- § 55633 The producer’s lien is a preferred lien prior in dignity to all other liens, claims, or encumbrances except the following: (a) Labor claims for wages and…
- § 55634 Every lien which is provided for in this article is on every farm product and any processed form of the farm product which is in the possession of the…
- § 55635 The lien of a producer, unless sooner released by payment or by security which is given for the payment as provided in this article, attaches from the date of…
- § 55636 If suit is commenced by any such producer to enforce any lien, such lien shall remain in effect until one of the following occurs: (a) The payment of the…
- § 55637 Any lien on any product or processed product may, however, be released, to the extent the value of the claim upon such product is secured, by a surety bond or…
- § 55638 It is unlawful for any processor to remove, from this state or beyond his ownership or control, any farm product which is delivered to him, or any processed…
- § 55638.5 The director, within 15 days of the filing of a verified complaint by a producer, shall investigate any charge that a purchaser of a farm product to which a…
- § 55639 Any processor that desires to secure a release of any or all of such liens on any product or processed product may do so in any of the following ways: (a) By…
- § 55640 If all lawful claims of the producers have been paid in accordance with this article by any processor, any product which is released by such action may be…
- § 55641 If a bond, cash deposit, or security is given to the director by any processor as provided in this article, such processor may sell, transport, or otherwise…
- § 55642 The director may accept such bond, if approved by him, and such other security. If the claims or any of them are not paid in accordance with the condition of…
- § 55643 If a bond has been given as security, the director shall notify the principal and surety of any default on the part of the principal under the bond, and make…
- § 55644 If the director has received warehouse receipts for any processed product as security, and the processor giving them has failed to pay the claims in accordance…
- § 55645 All claims in relation to payment shall have equal standing and payment shall be prorated if necessary among the claimants.
- § 55646 This article does not prevent the director if in his opinion the rights of all of the claimants are fully protected, as provided for in this article, from…
- § 55647 This article does not impair or affect the right of any claimant that possesses a lien to maintain a personal action to recover such debt against a processor,…
- § 55648 The judgment, if any, which is obtained by the plaintiff in such personal action, or personal judgment which is obtained in such lien action, does not impair…
- § 55649 In an action that is filed by any such lien claimant, the defendant processor may file with the court in which the action is pending a surety bond in an amount…
- § 55650 Such processor may also, on motion duly noticed, introduce evidence to the court before whom any such action is pending to the effect that he has sufficient…
- § 55651 The plaintiff in an action which is brought to foreclose any of the liens which are provided for in this article may, in a proper case, and upon proper…
- § 55652 If in a court proceeding to foreclose such lien, it is found and determined by the court that there is no cash, bond, or other deposit placed with the director…
- § 55653 All actions filed by the director or producers against any processor for the foreclosure of the liens or other security which are provided for in this article…
ARTICLE 10.5. Liens on Livestock Sold or Delivered to Meatpackers §§ 55701–55704 · 4 sections
- § 55701 As used in this article, the following definitions shall apply: (a) “Livestock” means any cattle, sheep, swine, goat, or any horse, mule, or other equine,…
- § 55702 (a) Except as otherwise provided in this section, any person who sells or furnishes livestock to a meatpacker, shall have a lien, not dependent upon…
- § 55703 Except as provided in this section, any lien created under Section 55702 shall continue in force for a period of five years from the date of filing of the…
- § 55704 Any rights or remedies granted to a person who sells livestock pursuant to this article, are in addition to any other rights or remedies provided by law for…
ARTICLE 11. Examinations and Audits of the Books and Records of Licensees §§ 55721–55725 · 5 sections
- § 55721 (a) If, in the opinion of the department, there appears to be reasonable grounds for investigating a complaint or notification made under the provisions of…
- § 55722 If the examination discloses evidence of any violation of this chapter, the department may issue a complaint detailing the charges and the discipline sought in…
- § 55722.5 (a) (1) An aggrieved grower or licensee with a complaint that is not subject to the federal Packers and Stockyards Act, 1921 (7 U.S.C. Sec. 181 et seq.) or the…
- § 55724 (a) Every licensee shall prepare and preserve the accounts, records, and memoranda required by this chapter which shall fully and correctly disclose all…
- § 55725 The failure or refusal of any licensee to produce and make available to the director any books or records requested pursuant to this article, or otherwise to…
ARTICLE 12. Investigations and Hearings §§ 55741–55745 · 5 sections
- § 55741 The department, upon its own motion, may, or upon the verified complaint of any interested party and within 30 days of the filing of that complaint, shall,…
- § 55742 Except as otherwise provided in Section 55743 or 55744, if the complaint is a bona fide dispute that involves any of the following, the department has no…
- § 55743 The jurisdiction that is otherwise reserved to the department in this chapter, however, is restored for the purposes of this chapter if the authorities…
- § 55744 The department also has jurisdiction over any such complaint or dispute if the processor has failed to perform in accordance with any alternative dispute…
- § 55745 Any verified complaint filed with the department pursuant to this chapter shall be filed not later than nine months from the date a complete account of sales…
ARTICLE 14. Contempt §§ 55811–55813 · 3 sections
- § 55811 If any person in any proceedings before the director disobeys or resists any lawful order or refuses to respond to a subpoena, or refuses to take the oath or…
- § 55812 The court shall thereupon issue an order which directs the person to appear before the court and show cause why he should not be punished as for contempt. The…
- § 55813 The same proceedings shall be had, the same penalties may be imposed, and the person charged may purge himself of the contempt in the same way, as in the case…
ARTICLE 16. Fees §§ 55861–55864 · 7 sections
- § 55861 (a) Except as otherwise provided in this article or in Section 56574, each applicant for a license shall pay to the department a fee in accordance with the…
- § 55861.5 The fees provided by Section 55861 are maximum fees. The secretary may fix those fees at a lesser amount, and may adjust those fees from time to time, whenever…
- § 55862 (a) (1) If any processor does not apply for the renewal of a preexisting license on or before the date of expiration of the license, a penalty of twenty-five…
- § 55862.7 (a) If any person is found to be operating a business without the license required by Section 55521, or failed to pay a fee in accordance with the schedule in…
- § 55863 Any person that has applied for and obtained a license pursuant to this chapter may apply for and secure a license under Chapter 7 (commencing with Section…
- § 55863.5 Any person who has applied for and obtained a license as agent, in the manner and upon the payment of the fee which is set forth in Section 55861, whose…
- § 55864 All fees which are collected pursuant to this chapter shall be paid into the State Treasury monthly and shall be credited to the Department of Agriculture Fund…
ARTICLE 17. Violations §§ 55872–55882 · 11 sections
- § 55872 It is a violation of this chapter if the applicant, or licensee, has failed or refused to pay for any farm product at the time and in the manner which is…
- § 55873 It is a violation of this chapter if the applicant, or licensee, has rejected, without reasonable cause, or has refused to accept, without reasonable cause,…
- § 55874 It is a violation of this chapter if the licensee has knowingly employed an agent without causing the agent to comply with the licensing requirements of this…
- § 55875 It is a violation of this chapter if the licensee has failed or refused, upon demand, to permit the director or his agents to make the investigations,…
- § 55876 It is a violation of this chapter if the applicant, or licensee, has otherwise violated any provision of this chapter or Chapter 7 (commencing with Section…
- § 55877 It is a violation of this chapter if the licensee licensed as a cash buying processor has bought or otherwise taken title to, or possession of, any farm…
- § 55878 The failure or refusal of a processor to make payment for any farm product within the time which is specified for such payment in the contract of sale and…
- § 55879 It is a violation of this chapter if the applicant or licensee has failed or refused to render a true and correct account of sales or make settlement thereon…
- § 55880 It is a violation of this chapter if the licensee or applicant has failed or refused to file with the director a schedule of his charges for services in…
- § 55881 Under a contract for the purchase or handling of any farm product, any delinquent payment of money under this chapter shall also include a late charge of 5…
- § 55882 It is a violation of this chapter if a licensee fails, neglects, or refuses to collect or remit any assessments that have been levied in accordance with the…
ARTICLE 18. Criminal Penalties §§ 55901–55906 · 8 sections
- § 55901 (a) Except as specified in Section 55902, any misdemeanor which is prescribed by this article is punishable by a fine of not less than five hundred dollars…
- § 55902 It is a misdemeanor for any person subject to this chapter to act as a processor or agent without a license, and is punishable by a fine of not less than ten…
- § 55902.2 It is a misdemeanor for any person subject to this chapter to pay license fees in an amount less than that amount established under subdivision (b) of Section…
- § 55902.5 It is a misdemeanor for any person licensed as a cash buying processor to buy or otherwise take title to, or possession of, any farm product from a producer of…
- § 55903 It is a misdemeanor for any person that is subject to this chapter to willfully refuse to pay for any farm product which such person purchases within 20 days…
- § 55904 It is a misdemeanor for any person that is subject to this chapter to falsely deny the amount, or the validity, of any producer’s claim, or that it is due,…
- § 55905 It is a misdemeanor for any person that is subject to this chapter to sell, hypothecate, sequester with intent to defraud any producer, or in any manner place…
- § 55906 It is a misdemeanor for any person that is subject to this chapter to fail to comply with this chapter.
ARTICLE 19. Civil Remedies and Penalties §§ 55921–55922 · 2 sections
- § 55921 The director may bring an action to enjoin the violation or the threatened violation of any provision of this chapter or of any order which is made pursuant to…
- § 55922 (a) Any person that violates any provision of this chapter is liable civilly in the sum of not less than five hundred dollars ($500) or more than one thousand…