CHAPTER 7. Produce Dealers [56101. - 56652.]
Chapter 7 enacted by Stats. 1967, Ch. 15.
§§ 56101–56652 · 133 sections
ARTICLE 1. Definitions §§ 56101–56110 · 12 sections
- § 56101 Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
- § 56102 “Agent” means any person who on behalf of any licensee receives on consignment, contracts for, or solicits for sale on commission, any farm product from a…
- § 56103 “Broker” means any person that negotiates the purchase or sale of any farm product. A broker may not, however, handle either the farm product which is involved…
- § 56103.5 “Cash” means coin or currency of the United States, and does not include a check or money order.
- § 56104 “Cash buyer” means any person who obtains title to, possession or control of, or buys or agrees to buy any farm product from a licensee or a producer by paying…
- § 56105 “Commission merchant” means any person, as follows: (a) Who receives on consignment or solicits any farm product from a licensee or producer of the product.…
- § 56106 “Consignor” includes any person that ships or delivers to any commission merchant or dealer any farm product for handling, sale, or resale.
- § 56107 “Dealer” means any person who obtains title to, or possession, control, or delivery of, any farm product from a licensee or producer at a designated price for…
- § 56108 “Established place of business” means any permanent warehouse, building, or structure which is owned in fee or leased, at which the owner or lessee carries on…
- § 56109 “Farm product” includes every agricultural, horticultural, viticultural, and vegetable product of the soil, poultry and poultry products, livestock products…
- § 56109.5 “Licensee” means any person licensed under this chapter as a broker, cash buyer, commission merchant, or dealer.
- § 56110 “Producer” means any person that is engaged in the business of growing or producing any farm product.
ARTICLE 2. General Provisions §§ 56131–56136 · 9 sections
- § 56131 The marketing of agricultural commodities within this state is hereby declared to be affected with a public interest. The provisions of this chapter are…
- § 56132 The director may publish in pamphlet form as often as he thinks necessary a list of all licensees and agents that are licensed pursuant to this chapter…
- § 56133 (a) Any money in the Department of Food and Agriculture Fund that was derived pursuant to this chapter or Chapter 6 (commencing with Section 55401) may be…
- § 56133.5 (a) Except pursuant to an exemption granted by the department, no person licensed under this chapter shall employ any person as an agent, or who previously was…
- § 56134 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…
- § 56134.5 The rights, remedies, and penalties that are provided for in this chapter are in addition to any other rights, remedies, or penalties that are provided for by…
- § 56134.75 Except as otherwise provided in this chapter, Part 2 (commencing with Section 307) of the Code of Civil Procedure is applicable to, and constitutes the rules…
- § 56135 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…
- § 56136 (a) No person, other than a corporate officer, licensed and employed as an agent, shall control the business of the licensee, as determined by the director.…
ARTICLE 3. Exceptions §§ 56161–56162 · 2 sections
- § 56161 This chapter does not apply to or include any of the following: (a) Any nonprofit cooperative association organized and operating pursuant to Chapter 1…
- § 56162 This chapter does not apply to any person that buys, receives, or otherwise handles any farm product for human consumption whose business is the distribution…
ARTICLE 4. Licenses §§ 56181–56196 · 21 sections
- § 56181 Except as otherwise provided in Section 55610, any person engaged in the business of buying, receiving on consignment, soliciting for sale on commission, or…
- § 56182 Any person required by Section 56181 to be licensed shall file an application with the director for a license to transact business before engaging in such…
- § 56182.5 (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…
- § 56182.6 (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…
- § 56183 The application shall in each case state all of the following: (a) Every class of farm products which the applicant proposes to handle. (b) The full name of…
- § 56183.5 (a) An initial application, at a minimum, shall include the following: (1) A release authorizing the department, during consideration of the application and…
- § 56184 In addition to the general requirements which are applicable to all applications as set forth in this article, the following requirements shall apply to each…
- § 56185 The department shall accept or deny an application within 90 calendar days of receipt of a completed application. The department may deny, condition, suspend,…
- § 56185.5 (a) The Legislature finds there to be a substantial nexus between the conduct specified in Section 56185 and an applicant’s or holder’s fitness for licensure.…
- § 56185.75 (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…
- § 56186 The department shall require the applicant to make a showing of character, responsibility, and good faith in seeking to carry on the business that is stated in…
- § 56186.5 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…
- § 56186.75 (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…
- § 56189 Any person who is adjudicated liable for payment of a claim for farm products that arose out of the conduct of a business licensed or requiring a license under…
- § 56189.2 In addition to the other requirements of this chapter, each application for a license, except for a cash buyer’s license, shall include an affidavit in which…
- § 56189.5 (a) Licensees or applicants for a license shall be required to furnish and maintain a surety bond in a form and amount satisfactory to the director, if within…
- § 56190 (a) The department shall notify the applicant or holder in writing of the department’s decision to bring charges to deny, suspend, or revoke a license. (1) The…
- § 56193 Each licensee shall post his license or a copy of it in his office or salesroom in plain view of the public.
- § 56194 The director shall issue to any individual or member of a partnership, a card which specifies that he or his firm is licensed. The licensee shall show such…
- § 56195 The director may also issue to each agent a separate card for each principal which the agent represents, which shall bear the signature of the agent. Any agent…
- § 56196 All indicia of the possession of a license are at all times the property of this state. Each licensee is entitled to the possession of them only for the…
ARTICLE 6. Financing Charges and Financial Statements §§ 56251–56255 · 5 sections
- § 56251 A licensee that finances, lends money, or otherwise makes advances of money or credits to another licensee may not deduct from the proceeds of any farm product…
- § 56252.2 (a) If the director is not satisfied that an applicant or licensee is financially responsible, the director may, in lieu of denying, suspending, or revoking…
- § 56253 The secretary may require a licensee to file a balance sheet or statement of financial position that presents fairly the financial condition of such licensee.…
- § 56254 Any financial statement submitted to the director pursuant to the provisions of this article is confidential and shall not be divulged except if necessary for…
- § 56255 (a) Every licensee shall prepare and preserve the accounts, records, and memoranda required by this chapter which shall fully and correctly disclose all…
ARTICLE 7. Commission Merchants §§ 56271–56283 · 15 sections
- § 56271 Every commission merchant, that receives any farm product for sale as a commission merchant, shall promptly make and keep a correct record which shows in…
- § 56272 When requested by his consignors, a commission merchant shall, before the close of the next business day following such request, transmit to the consignor a…
- § 56273 The full amount which is realized from the sales, including all collections, overcharges, and damages, less the agreed commission and other charges, together…
- § 56273.1 (a) For purposes of this chapter, an account of sales shall be deemed complete if it consists of all of the following information: (1) The date of shipment.…
- § 56274 In the account, the names and addresses of purchasers need not be given. Where a commission merchant has entered into a contract with two or more producers or…
- § 56275 Every licensee operating as a commission merchant shall retain a copy of all records which cover each transaction, which copy shall at all times be available…
- § 56276 If there is any dispute or disagreement between a consignor and a commission merchant which arises at the time of delivery as to condition, quality, grade,…
- § 56277 Such certificate is prima facie evidence of the truth of the statements contained therein. The presumption established by this section is a presumption…
- § 56278 Proof of any sale of any farm product which is made by a commission merchant for less than the current market price to any person with whom he has any…
- § 56279 The burden of proof shall be upon the commission merchant to prove the correctness of any accounting required to be performed by the commission merchant…
- § 56280 (a) A commission merchant shall notify each consignor with whom he or she does business of this section. The notice shall be given in writing prior to the…
- § 56280.5 Any agreement waiving any right guaranteed by this chapter shall set forth in exact language the provision of this code being waived. Upon request by the…
- § 56281 A commission merchant shall notify each consignor with whom he or she does business of the provisions affecting the consignor that are contained in Sections…
- § 56282 (a) Pursuant to this chapter, upon the verified complaint of the consignor, the secretary may disallow to a commission merchant, all or part of, any adjustment…
- § 56283 Every commission merchant who receives any farm product for sale on consignment shall exercise reasonable care and diligence in disposing of the product in a…
ARTICLE 8. Dealers §§ 56301–56302.5 · 3 sections
- § 56301 Every licensee operating as a dealer who purchases any farm product from the producer of the farm product or from any licensee for the purpose of resale, shall…
- § 56302 Every dealer shall pay for any farm product purchased by him at the time and in the manner specified in the contract with the producer or licensee. If no time…
- § 56302.5 Upon the following, a licensee operating as a dealer shall notify the seller on a form to be prescribed by the department, as to the requirements set forth in…
ARTICLE 9. Brokers §§ 56331–56332 · 2 sections
- § 56331 (a) Every licensee operating as a broker, upon negotiating the sale of farm products, shall issue to both buyer and seller a written memorandum of sale, before…
- § 56332 A licensee operating as a broker shall not alter the terms of the transaction as specified on his original memorandum of sale without the consent of both…
ARTICLE 10. Claims of Licensees §§ 56351–56352 · 2 sections
- § 56351 A claim may not be made against the seller of any farm product by a licensee pursuant to this chapter, and no credit may be allowed to such licensee against…
- § 56352 The certificate is not valid as proof of a proper claim, credit, or offset unless it is issued within 24 hours of the receipt by the licensee of the farm…
ARTICLE 11. Examinations and Audits §§ 56381–56383 · 5 sections
- § 56381 (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…
- § 56382 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…
- § 56382.5 (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…
- § 56382.8 (a) In addition to all other complaint procedures provided for in this chapter, any aggrieved grower or licensee with a complaint that is not subject to the…
- § 56383 The failure or refusal of any licensee to produce and make available to the director any such books or records, or otherwise to obstruct such examination or…
ARTICLE 12. Complaints by Producers §§ 56411–56415 · 5 sections
- § 56411 For the purpose of enforcing this chapter, the director may receive verified complaints from producers or licensees against any person licensed pursuant to…
- § 56412 The director may administer oaths of verification on the complaints.
- § 56413 He shall have free and unimpeded access at all times to any building, yard, warehouse, or storage or transportation facility in which any farm product is kept,…
- § 56414 He may do all of the following: (a) Administer oaths and take testimony under oath. (b) Issue subpoenas which require the attendance of witnesses before him,…
- § 56415 All parties disobeying the orders or subpoenas of the director are guilty of contempt and shall be certified to the superior court of the state for punishment…
ARTICLE 13. Investigations and Hearings §§ 56441–56447 · 7 sections
- § 56441 The director on his own motion may, or upon the verified complaint of any interested party shall, investigate, examine, or inspect any of the following: (a)…
- § 56442 In furtherance of any such investigation, examination, or inspection, the director may examine the ledgers, books, accounts, memoranda and other documents,…
- § 56443 Except as otherwise provided in Section 56444 or 56445, if the complaint is a bona fide dispute that involves any of the following, the department has no…
- § 56444 The jurisdiction that is otherwise reserved to the department in this chapter is, however, restored for the purposes of this chapter if the authorities…
- § 56445 The department also has jurisdiction over any complaint or dispute if the licensee has failed to perform in accordance with any alternative dispute procedure…
- § 56446 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…
- § 56447 If a licensee fails to pay farm products creditors for any farm product that is received on consignment from the creditors, or fails to pay farm products…
ARTICLE 15. Contempt §§ 56501–56503 · 3 sections
- § 56501 If any person in any proceedings before the director disobeys or resists any lawful order, refuses to respond to a subpoena, refuses to take the oath or…
- § 56502 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…
- § 56503 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 17. Fees §§ 56571–56576 · 7 sections
- § 56571 (a) Except as otherwise provided in this article or Section 55863, each applicant for a license shall pay to the department a fee in accordance with the…
- § 56571.5 The fees provided by Section 56571 are maximum fees. The secretary may fix those fees at a lesser amount, and may adjust those fees from time to time, whenever…
- § 56572 (a) (1) If any licensee does not apply for the renewal of a preexisting license on or before the date of the expiration of the license, a penalty of…
- § 56573.5 (a) If any person is found to be operating a business without the license required by Section 56181 or failed to pay the fee in accordance with the schedule in…
- § 56574 Any person who has obtained a license pursuant to this chapter may secure a license pursuant to Chapter 6 (commencing with Section 55401) by filing an…
- § 56574.5 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 56571, whose…
- § 56576 All license fees which are collected pursuant to this chapter shall be paid into the State Treasury monthly and shall be credited to the Department of…
ARTICLE 18. Violations §§ 56602–56623 · 22 sections
- § 56602 It is a violation of this chapter if the applicant or licensee has made any fraudulent charges or returns for the handling, sale, or storage of, or for…
- § 56603 It is a violation of this chapter if the applicant, or licensee, has failed or refused to render a true account of sales, or to make a settlement on the sales,…
- § 56604 It is a violation of this chapter if the applicant, or licensee, has made any false statement as to the condition, quality, or quantity of any farm product…
- § 56605 It is a violation of this chapter if the applicant, or licensee, directly or indirectly, has purchased for his, or its, own account any farm product which is…
- § 56606 It is a violation of this chapter if the applicant, or licensee, has intentionally made any false or misleading statement as to the conditions of the market…
- § 56607 It is a violation of this chapter if the applicant or licensee has made any fictitious sale or has been guilty of collusion to defraud a producer or another…
- § 56608 It is a violation of this chapter if a commission merchant to whom any consignment is made has reconsigned such consignment to another commission merchant or…
- § 56609 It is a violation of this chapter if the licensee was intentionally guilty of fraud or deception in the procurement of such license.
- § 56610 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…
- § 56611 It is a violation of this chapter if the applicant, or licensee, has indulged in any unfair practice.
- § 56612 It is a violation of this chapter if the licensee: (a) Has rejected without reasonable cause or has failed or refused to accept without reasonable cause, any…
- § 56613 It is a violation of this chapter if the licensee has otherwise violated any provision of this chapter.
- § 56614 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…
- § 56615 It is a violation of this chapter if the applicant or licensee has in the handling of any farm product been guilty of fraud, deceit, or willful negligence.
- § 56616 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,…
- § 56617 It is a violation of this chapter if the licensee without reasonable cause has failed or refused to execute or carry out a lawful contract with a producer or…
- § 56618 It is a violation of this chapter if the licensee has failed or refused to keep and maintain the records as required by this chapter.
- § 56619 It is a violation of this chapter if a dealer has obtained title to or possession, control, or delivery of any farm product from another licensee or a producer…
- § 56619.5 It is a violation of this chapter for a person licensed as a cash buyer to buy or otherwise take title to or possession of any farm product from a licensee or…
- § 56620 Under a contract for the purchase or handling of any farm products, any delinquent payment of money under this chapter shall also include a late charge of 5…
- § 56621 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…
- § 56623 It is a violation of this chapter if any commission merchant who collects or receives funds in connection with the sale of consigned farm products has made any…
ARTICLE 19. Criminal Penalties §§ 56631–56639 · 11 sections
- § 56631 (a) Except as specified in Section 56632, any misdemeanor which is prescribed in this article is punishable by a fine of not less than five hundred dollars…
- § 56632 It is a misdemeanor for any person to assume or attempt to act, or to act, as a licensee or agent without a license and is punishable by a fine of not less…
- § 56632.2 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…
- § 56632.5 It is a misdemeanor for any person licensed as a cash buyer to buy or otherwise take title to, or possession of, any farm product from a licensee or a producer…
- § 56633 It is a misdemeanor for any person to impose any false charge for handling or services in connection with any farm product.
- § 56634 It is a misdemeanor for any person to fail to account promptly, correctly, fully, and properly and to make settlement of accounts as provided in this chapter.
- § 56635 It is a misdemeanor for any person to intentionally make any false or misleading statement as to market conditions.
- § 56636 It is a misdemeanor for any person to make any fictitious sale or be guilty of collusion to defraud a producer or licensee.
- § 56637 It is a misdemeanor for any person to directly or indirectly purchase for his own account, goods which are received by him upon consignment without prior…
- § 56638 It is a misdemeanor for any person to intentionally make any false statement regarding the grade, conditions, markings, quality, or quantity of any goods which…
- § 56639 It is a misdemeanor for any person to fail to comply in every respect with the provisions of this chapter.
ARTICLE 20. Civil Remedies and Penalties §§ 56651–56652 · 2 sections
- § 56651 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…
- § 56652 (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…