reglab/statecodes huggingface dataset:
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56185.

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, or revoke a license issued pursuant to this chapter upon any of the following grounds and in the manner provided in this chapter:
(a) Upon one flagrant violation, as determined by the department, or upon repeated violations, by the holder or applicant, of any one or combination of the sections of this division or under any one or combination of the regulations promulgated by the department under the authority of this division.
(b) Upon one flagrant violation, as determined by the department, or upon repeated violations, by a holder’s or applicant’s agent, employee, or contractor, or of an organization or entity in which the holder or applicant holds a significant financial interest, of any one or combination of the sections of this division or any one or combination of the regulations promulgated under this division under circumstances where the holder or applicant knew or should have known and failed to take reasonable measures to prevent the violation or failed to report the violation to the department upon learning of the violation.
(c) Upon the conviction of the holder or applicant of a crime that includes as one of its elements the financial victimization of another person. However, if the licensee was licensed prior to January 1, 1998, and the department knew of, or was on notice of, the conviction, that conviction may not form the basis of a disciplinary action under this subdivision.
(d) On the grounds of a false or misleading statement by a holder or applicant that the holder or applicant knew or should have known to be false or misleading, directed to any official of any government concerning the scope of any indicia of authority, including, but not limited to, the holder’s or applicant’s license associated with the holder’s or applicant’s business, the standards under which the indicia was authorized, the contents of the application for licensure, or the holder’s or applicant’s relationship to the indicia.
(e) On the grounds that a holder or applicant, or a holder’s or applicant’s agency, employee, or contractor, or an organization or entity in which a holder or applicant holds a significant financial interest, deceived a grower in any material matter. Deception, for purposes of this subdivision, does not require scienter, but requires active misrepresentation where the actor knew the representation to be false or where the actor should have known, with due consideration, that he or she did not know whether or not the representation was true or false.
(Repealed and added by Stats. 1997, Ch. 696, Sec. 53. Effective January 1, 1998.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56185.5.

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.
(b) The department shall not dismiss an action where a violation, however minor, has been established. The department shall not dismiss an action because the applicant or holder establishes factors in mitigation.
(c) However, the department may impose discipline other than denial or revocation of the license. As an alternative to revocation of a license, the department may stay a revocation subject to terms for a period of probation. As an alternative to denial the department may issue a license subject to conditions. Terms of probation or terms of conditional licensure may include, but are not limited to, a requirement of restitution, payment for extra audits, immediate revocation on a new violation, or any other terms that respond to the particular violations or circumstances found.
(d) Once a finding of a violation has been made, the department may consider the following factors in assessing the appropriate level of discipline:
(1) The relative isolation or infrequency of the conduct.
(2) Whether the conduct was a part of a pattern or practice.
(3) Whether the actor had been warned before.
(4) Whether the actor considered the consequences of the conduct.
(5) Whether the actor reasonably relied on others.
(6) The severity of the consequences.
(7) The mens rea of the actor.
(8) In the case of a criminal conviction, evidence of rehabilitation.
(9) The total licensing history.
(e) The following factors shall not be considered in assessing the appropriate level of discipline:
(1) The social or economic contributions of the applicant or holder.
(2) General testimonials as to good character and worthiness to be licensed.
(3) Economic hardship on the licensee.
(4) “Mercy of the court” pleas in connection with criminal convictions, pattern or practice violations, or deception.
(5) In the case of a felony criminal conviction, the department shall not consider rehabilitation unless the convicted person has a valid certificate of rehabilitation.
(Added by Stats. 1997, Ch. 696, Sec. 54. Effective January 1, 1998.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56185.75.

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 was revoked within the preceding two years, the department shall cease any further review of the application until two years have elapsed from the date of the revocation. The cessation of review shall not constitute a denial of the application for the purposes of this chapter, or any other provision of law.
(b) If an application for a license indicates, or the department determines during the application review process, that the applicant had previously applied for a license and the application was denied within the last year, the department shall cease further review of the application until 30 days have elapsed from the date of the notification of the denial or from the effective date of the decision and order of the department upholding a denial. The cessation of review shall not constitute a denial of the new applicant for purposes of this chapter, or any other provision of law.
(c) Nothing in subdivision (a) or (b) prohibits the department from taking into account the basis for denial or revocation in considering any new application subsequent to the elapse of the applicable period of prohibition.
(Amended by Stats. 1999, Ch. 198, Sec. 5. Effective January 1, 2000.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56186.

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 the application, and may make investigations, hold hearings, and make determinations respecting such matters.
(Amended by Stats. 1997, Ch. 696, Sec. 56. Effective January 1, 1998.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56186.5.

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 department.
(b) The holder dies.
(c) The partnership holder dissolves.
(d) The holder of a significant financial interest in a corporation transfers his or her interest to another person or entity, regardless of relationship.
(e) The holder files for bankruptcy under provisions other than those permitting and governing reorganization under bankruptcy.
(Added by Stats. 1997, Ch. 696, Sec. 57. Effective January 1, 1998.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56186.75.

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 continue a proceeding against the applicant or to enter an order denying the license, unless the department consents in writing to such a withdrawal.
(b) The expiration or forfeiture by operation of law of a license, or its forfeiture or cancellation by order of the department or by order of a court of law, or its surrender without the written consent of the department, does not deprive the department of its authority to institute or continue a disciplinary proceeding against the holder upon any ground provided by law or to enter an order revoking the license or otherwise taking disciplinary action against the holder.
(c) Any action brought by the department against an applicant or holder does not abate by reason of the sale or other transfer of ownership of the business that is a party to the action, except with the written consent of the department.
(d) Nothing in this division or in any other provision of this code deprives the department of the authority to settle or adjudicate a disposition of a case other than by revocation or denial. The department or the department’s designee may compromise with the applicant or holder in a written stipulation and order. The department may, following a hearing, order probation on terms and conditions as determined by the department. The authority conferred by this subdivision shall include, but not be limited to, the authority to order payment of amounts determined owing, the authority to dismiss an action on the department’s own initiative, the authority to order administrative penalties, the authority to order a respondent to pay for heightened audit scrutiny, the authority to suspend a license for a period of years, or any combination of remedies other than final revocation or denial of a license.
(Added by Stats. 1997, Ch. 696, Sec. 58. Effective January 1, 1998.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56189.

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 this chapter or Chapter 6 (commencing with Section 55401), and who has not made full settlement with all producer-creditors, shall not be licensed by the director as a principal for four years from the date of the adjudication.
(Amended by Stats. 1987, Ch. 662, Sec. 14.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56189.2.

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 the applicant affirms that he or she is current in making all payments required under undisputed contract agreements, and that he or she will do all of the following:
(a) Abide by all provisions of this chapter and Chapter 6 (commencing with Section 55401).
(b) Will prepare and retain financial records adequate to document all transactions with suppliers.
(c) Will prepare and retain current financial information, including, but not limited to, profit-and-loss statements and a balance sheet that presents fairly the financial condition as of the applicant’s most recent yearend.
The affidavit shall be on a form prescribed by the secretary and shall be submitted under penalty of perjury.
(Added by renumbering Section 56189 (as renumbered from 56252 by Stats. 1997, Ch. 696) by Stats. 2010, Ch. 382, Sec. 5. (AB 2240) Effective January 1, 2011.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56189.5.

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 the preceding four years the director determines that they have done any of the following:
(1) Engaged in conduct which demonstrates a lack of financial responsibility including, but not limited to, delinquent accounts payable, judgments of liability, insolvency, or bankruptcy.
(2) Failed to assure future financial responsibility unless a surety bond is posted.
(3) Otherwise violated this chapter which resulted in license revocation.
(b) The bond shall not be less than ten thousand dollars ($10,000) or 20 percent of the annual dollar volume of business based on farm product value returned to the grower, whichever is greater, as assurance that the licensee’s or applicant’s business will be conducted in accordance with this chapter and that the licensee or applicant will pay all amounts due farm products creditors.
(c) The director, based on changes in the nature and volume of business conducted by the licensee, may require an increase or authorize a reduction in the amount of the bond, but in no case shall the bond be reduced below ten thousand dollars ($10,000). A licensee who is notified by the director to provide a bond in an increased amount shall do so within a reasonable time as specified by the director. If the licensee fails to do so, the director may, after notice and opportunity for hearing, suspend or revoke the license of any licensee.
(Added by Stats. 1987, Ch. 662, Sec. 15.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56193.

56193. Each licensee shall post his license or a copy of it in his office or salesroom in plain view of the public.
(Amended by Stats. 1971, Ch. 915.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56194.

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 card upon the request of any interested person.
(Amended by Stats. 1976, Ch. 632.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56195.

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 shall show the card upon the request of any interested person. Any agent that displays a void or expired license card is guilty of a misdemeanor, punishable as provided in Section 56631 of this chapter.
(Enacted by Stats. 1967, Ch. 15.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 4 - Licenses › Section 56196.

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 duration of the license.
(Enacted by Stats. 1967, Ch. 15.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 6 - Financing Charges and Financial Statements › Section 56251.

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 which is marketed, sold, or otherwise handled by him on behalf of or for the account of the licensee to whom such money, loans, advances or credits are made, an amount which exceeds a reasonable commission or brokerage, together with the usual and customary selling charges or costs of marketing, or both. He may not otherwise divert to his own use or account or in liquidation of such loans, advances, or credits the moneys, returns, or proceeds accruing from the sale, handling, or marketing of any farm product which is handled by him on behalf of or for the account of the licensee to whom or for whom such loans, advances, or credits are made.
(Amended by Stats. 1971, Ch. 915.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 6 - Financing Charges and Financial Statements › Section 56252.2.

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 the license, accept an irrevocable guarantee of the obligations of the licensee to all California farm products creditors. The guarantee shall be for any periods and in any amounts that the director may from time to time require. The director may, as a condition of accepting and maintaining the guarantee, require the guarantor to supply financial information to the director at times and to the extent the director deems advisable.
(b) A guarantee placed with the director pursuant to subdivision (a) shall support an action in a court of competent jurisdiction by a farm products creditor for obligations of the licensee to the creditor and by a state officer for the obligations of the licensee to the state related to transactions subject to the guarantee.
(Added by Stats. 1987, Ch. 662, Sec. 17.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 6 - Financing Charges and Financial Statements › Section 56253.

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. Such financial statement, if not prepared by a public accountant or certified public accountant, shall be on a form prescribed by the secretary and shall be submitted under penalty of perjury. Any balance sheet submitted that does not provide the information required by the secretary shall not meet the requirements of this section. Failure of a licensee to file a financial statement pursuant to this section shall be sufficient grounds for license revocation.
(Amended by Stats. 1996, Ch. 620, Sec. 16. Effective January 1, 1997.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 6 - Financing Charges and Financial Statements › Section 56254.

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 the proper determination of any court proceedings or hearing before the director.
(Added by Stats. 1969, Ch. 1326.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 6 - Financing Charges and Financial Statements › Section 56255.

56255. (a) Every licensee shall prepare and preserve the accounts, records, and memoranda required by this chapter which shall fully and correctly disclose all transactions involved in his business. Licensees shall keep records which are adapted to the particular business that the licensee is conducting and in each case such records shall fully disclose all transactions in the business in sufficient detail as to be readily understood and audited. Minimum records required under this chapter are:
1. A record of cash received.
2. A record of cash disbursed.
3. A general ledger or its equivalent.
4. A record of amounts due California producers.
5. A record of amounts due others.
(b) Every licensee shall prepare and preserve records and memoranda required by this chapter which shall fully and correctly disclose the true ownership and management of such business.
(c) All records required to be kept under this chapter shall be kept for a period of four years.
(Added by Stats. 1976, Ch. 632.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56271.

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 detail all of the following with reference to the handling, sale, or storage of such farm product:
(a) The name and address of the consignor.
(b) The date it was received.
(c) The condition and quantity upon arrival.
(d) Date of such sale for the account of the consignor.
(e) The price for which it was sold.
(f) An itemized statement of the charges to be paid by the consignor in connection with the sale. Any services rendered for which charges are made, if not filed with the director, shall be charged at cost if not covered by a written contract. Cost-supporting data shall be available for verification.
(g) The names and addresses of all purchasers if the commission merchant has any financial interest in the business of the purchasers, or if the purchasers have any financial interest in the business of the commission merchant, directly or indirectly, as holder of the other’s corporate stock, as copartner, as lender or borrower of money to or from the other, or otherwise. Such interest shall be noted in such records following the name of any such purchaser.
(h) A lot number or other identifying mark for each consignment, which number or mark shall appear on every sales tag and every other essential record which is needed to identify each consignment from receipt through final sale. When requested by the consignor, as provided by Section 56281, a lot number shall appear on each individual farm product container. When containers are on pallets, then only the exposed containers shall be marked. When stamping or otherwise identifying each container is impractical due to the type of packaging, the container need not be marked.
(i) Any claim which has been or may be filed by the commission merchant against any person for overcharges or for damages which result from the injury or deterioration of such farm product by the act, neglect, or failure of such person. Such records shall be open to the inspection of the director and the consignor of the farm product for whom such claim is made.
(Amended by Stats. 1978, Ch. 588.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56272.

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 true written report of the quantity sold and the selling price.
(Repealed and added by Stats. 1976, Ch. 632.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56273.

56273. The full amount which is realized from the sales, including all collections, overcharges, and damages, less the agreed commission and other charges, together with a complete account of sales, as provided in Section 56273.1, shall be remitted to the consignor within 10 days after receipt of the moneys by the commission merchant, unless otherwise agreed in writing.
(Amended by Stats. 1990, Ch. 1081, Sec. 1.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56273.1.

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.
(2) The terms of the original sale concerning where and when title passes.
(3) The commodity, variety, size, and grade.
(4) The quantity shipped.
(5) The quantity disposed of in a manner other than sale by the buyer, if applicable.
(6) The original selling price.
(7) The adjusted selling price, if applicable.
(8) The reason for adjustment, if applicable.
(9) Any inspection certificate required to be obtained as stated in Section 56280.
(10) Amounts billed and collected from the buyer for services rendered to the buyer by the commission merchant.
(11) The gross and net returns received from the buyer.
(12) Any authorized commission merchant charges.
(13) Any additional amounts paid to the consignor by the commission merchant to support the original price.
(14) The net amount due the consignor.
(b) The consignor and the commission merchant may agree on the documentation necessary to support the information required by subdivision (a). The agreements shall be made, in writing, prior to the shipping season of the particular farm product.
(Amended by Stats. 1997, Ch. 696, Sec. 67.5. Effective January 1, 1998.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56274.

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 consignors which contract provides that the returns for farm products sold for the account of such producers or consignors shall be pooled on a definite basis as to size or grade, or both, during a certain period of time, then a commission merchant shall obtain the written consent of the consignors and shall be required to render an account of sales, showing the net average pool return on each size or grade, or both, from sales made and shall keep a correct record of such sales, showing in detail all information as required in Section 56271.
(Amended by Stats. 1967, Ch. 807.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56275.

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 for, and open to, the confidential inspection of the director, consignor, or the authorized representative of either.
(Amended by Stats. 1976, Ch. 632.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56276.

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, pack, quantity, or weight of any lot, shipment, or consignment of any farm product, the department shall furnish, upon the payment of a reasonable fee for it by the requesting party, a certificate which establishes the condition, quality, grade, pack, quantity, or weight of such lot, shipment, or consignment.
(Enacted by Stats. 1967, Ch. 15.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56277.

56277. Such certificate is prima facie evidence of the truth of the statements contained therein. The presumption established by this section is a presumption affecting the burden of proof, but it does not apply in a criminal action.
(Amended by Stats. 1976, Ch. 632.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56278.

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 financial connection, directly or indirectly as owner of its corporate stock, as copartner, or otherwise, or any sale out of which such commission merchant receives, directly or indirectly, any portion of the purchase price, except the commission which is named in the licensee’s application or in a specific contract with the consignor, establishes a rebuttable presumption of fraud within the meaning of this chapter. This presumption is a presumption affecting the burden of proof.
(Amended by Stats. 1967, Ch. 262.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56279.

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 pursuant to this chapter as to any transaction which may be questioned.
(Amended by Stats. 1990, Ch. 1081, Sec. 3.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56280.

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 shipping season of the particular farm product.
(b) No charge shall be made against a consignor’s account for a downward price adjustment or a reduction in quantity of farm products delivered due to a breach of contract, unless the commission merchant has, in his or her files, a federal-state inspection certificate, issued pursuant to the United States Agricultural Marketing Act of 1946, (7 U.S.C. 1621, et seq.), indicating the type and the extent of the substandard condition of the lot involved in the breach of contract, thereby supporting the amount charged against the consignor’s account. The commission merchant need not obtain a federal-state inspection certificate unless the lot involved is of a substandard condition.
(c) Notwithstanding Section 56281, this section does not preclude a consignor from agreeing to a downward price adjustment or a reduction in the quantity of farm products delivered and waiving the right to inspection when the agreement was made prior to the shipping season of the particular farm product and was in writing.
(d) The federal-state inspection certificate may be substituted by a private third-party inspection, based on the standards prescribed under the United States Agricultural Marketing Act of 1946, if the director determines, to his or her satisfaction, that a federal-state inspection certificate could not reasonably be obtained. If the director determines, to his or her satisfaction, that neither a federal-state inspection certificate nor private, third-party inspection, can be reasonably obtained, a signed statement of two or more disinterested, or otherwise independent parties, who have sufficient knowledge, acquired through education or experience, to evaluate the farm product involved, may be used as substitute for the federal-state certificate or third-party inspection, in order to make a statement as to the quality and condition of the lot of farm product at the time of inspection.
(e) Where the condition of the lot is not substandard but for other reasons, including a decline in market demand, there is a downward price adjustment, the commission merchant shall affirm, in writing, that the lot was at least of standard quality at the time of sale. The affirmation shall be attached to, or made part of, the records of the consignment.
(f) As used in this section, “lot” means the farm product identified by the procedure set forth in subdivision (h) of Section 56271.
(Amended by Stats. 1990, Ch. 1081, Sec. 4.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56280.5.

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 secretary, the commission merchant shall make the agreement available for inspection. Any agreement that does not comply with this section, or that is not made available to the secretary for inspection upon the secretary’s request, is void.
(Added by Stats. 1996, Ch. 620, Sec. 17. Effective January 1, 1997.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56281.

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 56271, 56272, 56273, 56280, 56282, and 56351, and this section. The notice shall be given in writing prior to the shipping season of the particular farm product. The notice shall include a form whereby the consignor may request notice of any adjustment by the commission merchant. The form shall also include a provision whereby the consignor may request that lot numbers be affixed on each individual farm product container as provided in subdivision (h) of Section 56271. Each commission merchant shall keep the records necessary to prove that the notices were given to each consignor in accordance with this section. A licensee operating as a commission merchant shall notify the consignor of any adjustment on a transaction, and provide reasons for the adjustment, within 48 hours.
If the commission merchant is unable to contact the consignor by telephone or in person, the notification shall be immediately provided by mail.
(Amended by Stats. 1996, Ch. 620, Sec. 18. Effective January 1, 1997.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56282.

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 charged back to any consignor similarly situated, if the secretary determines that there is insufficient justification of the condition or circumstances requiring the adjustment.
(b) In determining whether there is insufficient justification for an adjustment, the secretary shall first determine if any waivers or agreements have been entered into pursuant to this chapter. If a waiver or agreement has been entered into and the secretary determines that the waiver or agreement complies with Section 56280.5 and does not otherwise violate this chapter, the secretary’s inquiry in determining this adjustment shall be governed by the terms and conditions of the waiver or agreement.
(c) If there is no waiver or agreement, or if the waiver or agreement violates this chapter, as determined by the secretary, in determining whether there is insufficient justification for an adjustment, the secretary shall consider, among other things, the following:
(1) The certificate issued pursuant to Section 56280 or 56351 does not support breach of contract.
(2) The perishability of the farm product involved and the timely issuance of the certificate pursuant to Section 56280 or 56352.
(3) Market reports or other market evidence does not support a downward price adjustment in accordance with Section 56279.
(Amended by Stats. 1996, Ch. 620, Sec. 19. Effective January 1, 1997.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 7 - Commission Merchants › Section 56283.

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 fair and reasonable manner.
(Added by Stats. 1986, Ch. 942, Sec. 12.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 8 - Dealers › Section 56301.

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 promptly make and keep a correct record which shows in detail all of the following:
(a) The name and address of the producer or licensee.
(b) The date received.
(c) The price to be paid.
(d) An itemized statement of any charges paid by the dealer for the account of the seller.
(Amended by Stats. 1979, Ch. 871.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 8 - Dealers › Section 56302.

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 for payment is set by such contract or made at the time of the delivery, the dealer shall pay for the farm product within 30 days from the delivery or taking possession of such farm product.
(Amended by Stats. 1979, Ch. 871.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 8 - Dealers › Section 56302.5.

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 Sections 56302 and 56620:
(a) Upon delinquency of a contract.
(b) If payment is not made within 30 days when the contract does not specify time of payment or if there is no contract.
(c) If payment is not made within 30 days when the contract is oral, irrespective of the agreed time of payment.
The dealer shall have the burden of proof as to the timely delivery of such a notice.
Such a notice shall only be required as to the first contract between any particular seller and dealer during any one calendar year.
(Added by Stats. 1977, Ch. 400.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 9 - Brokers › Section 56331.

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 the close of the next business day, showing price, date of delivery, quality, and all other details concerned in the transaction.
(b) The memorandum required by subdivision (a) shall have an individual identifying number printed upon it. The numbers shall be organized and printed on the memoranda so that each memorandum can be identified and accounted for sequentially. Unused or damaged memoranda shall be retained by the broker for accounting purposes.
(Amended by Stats. 1977, Ch. 1170.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 9 - Brokers › Section 56332.

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 parties to the transaction. Upon making such change, the broker is required to issue a clearly marked corrected memorandum of sale, which shall clearly indicate the date and time when such adjustment or change was made, and shall transmit such corrected memorandum to both buyer and seller before the close of the next business day.
(Added by Stats. 1977, Ch. 1170.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 10 - Claims of Licensees › Section 56351.

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 another licensee or a producer of any farm product by reason of damage to or loss, dumping, or disposal of any farm product which is sold to such licensee, in any payment, accounting, or settlement which is made by the licensee to the producer or other licensee, unless the licensee has secured and is in possession of a certificate issued by a county agricultural commissioner, a county health officer, the director, a duly authorized officer of the State Board of Health, or by some other official now or hereafter authorized by law. The certificate shall state that the farm product which is involved has been damaged, dumped, destroyed, or otherwise disposed of as unfit for human consumption or as in violation of the fruit and vegetable standards which are contained in Division 17 (commencing with Section 42501) of this code.
A private third-party inspection based on the standards prescribed in the United States Agricultural Marketing Act of 1946 may be substituted for such certificate if the director determines that an inspection certificate cannot be reasonably obtained. Where the director determines that neither an inspection certificate nor a private third-party inspection can be reasonably obtained, the signed statement of two or more disinterested or otherwise independent parties who have sufficient knowledge acquired through education or experience to evaluate the farm product involved may be used to describe the type and extent of the quality and condition factors present upon inspection.
(Amended by Stats. 1979, Ch. 871.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 10 - Claims of Licensees › Section 56352.

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 product which is involved.
(Amended by Stats. 1971, Ch. 915.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 11 - Examinations and Audits › Section 56381.

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 this chapter, the department shall investigate the complaint or notification. In the course of the investigation, if the department determines that violations of this chapter are indicated other than alleged violations specified in the complaint or notification that served as the basis for the investigation, the department may expand the investigation to include the additional violations.
(b) In the opinion of the department, if an investigation substantiates the existence of violations of this chapter, the department may cause a complaint to be issued.
(c) The investigation may include, but shall not be construed to require, examinations and audits of the books and records of any licensee pertaining to the solvency of the licensee, or to the purchase or handling of and accounting for any farm product purchased or received on consignment from another licensee or the producer, or handled as a brokerage transaction. The department may examine and audit all pertinent books, records, weight certificates, receipts, ledgers, journals, papers, contracts, bank statements, canceled checks, and other documents of the licensee that show or tend to show facts regarding the financial condition and the number and status of accounts of growers and others who are doing business with the licensee.
(Amended by Stats. 1997, Ch. 696, Sec. 68. Effective January 1, 1998.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 11 - Examinations and Audits › Section 56382.

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 accordance with this chapter.
(Amended by Stats. 1997, Ch. 696, Sec. 69. Effective January 1, 1998.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 11 - Examinations and Audits › Section 56383.

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 audit, is a good and sufficient ground for the suspension or revocation of his license.
(Enacted by Stats. 1967, Ch. 15.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 12 - Complaints by Producers › Section 56411.

56411. For the purpose of enforcing this chapter, the director may receive verified complaints from producers or licensees against any person licensed pursuant to this chapter or Chapter 6 (commencing with Section 55401) or any person who acts or attempts to act as a licensee.
Upon receipt of any verified complaint, the director may make any and all necessary investigations relative to the complaint. The director shall, within 30 days, commence to investigate any verified complaint alleging that a licensee may be insolvent or in an unsound financial condition.
(Amended by Stats. 1987, Ch. 109, Sec. 1.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 12 - Complaints by Producers › Section 56412.

56412. The director may administer oaths of verification on the complaints.
(Enacted by Stats. 1967, Ch. 15.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 12 - Complaints by Producers › Section 56413.

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, stored, handled, or transported.
(Enacted by Stats. 1967, Ch. 15.)
2023 California Code › Food and Agricultural Code - FAC › DIVISION 20 - PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS › CHAPTER 7 - Produce Dealers › ARTICLE 12 - Complaints by Producers › Section 56414.

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, together with all books, memoranda, papers, and other documents, articles, or instruments.
(c) Compel the disclosure by such witnesses of all facts which are known to them relative to the matters under investigation.
(Enacted by Stats. 1967, Ch. 15.)