Pennsylvania Act 1937-241 — FARM PRODUCE DEALERS LICENSE LAW

Act text

FARM PRODUCE DEALERS LICENSE LAW
                  Act of May 27, 1937, P.L. 901, No. 241              Cl. 03
                                  AN ACT

     For the protection of producers of farm produce; providing for
        the licensing, the bonding or holding collateral of and the
        regulation of certain dealers in farm produce, as herein
        defined, within this Commonwealth; conferring powers, and
        imposing duties on the Department of Agriculture; providing
        for appeals and injunctions; and prescribing penalties.

        Section 1.  Be it enacted, &c., That the following words or
     phrases, unless the context clearly indicates otherwise, shall
     have the meanings ascribed to them in this section:
        (a)  "Dealer in farm produce" means any person, association,
     copartnership or corporation engaged in the business of buying,
     receiving, selling, exchanging, negotiating, or soliciting the
     sale, resale, exchange or transfer of any farm produce from the
     producer or his agent in wholesale or jobbing quantities.
        (b)  "Department" means the Department of Agriculture of this
     Commonwealth.
        (c)  "Farm produce" includes all unprocessed fruits and
     vegetables. ((c) amended Sept. 28, 1978, P.L.829, No.163)
        (d)  "Producer" means any grower of farm produce in this
     Commonwealth for marketing.
        (e)  "Wholesale" or "jobbing quantity" means any one unit of
     shipment, or purchase of farm produce, having a gross value of
     more than five hundred dollars ($500).
        (1 amended Apr. 8, 1976, P.L.83, No.35)
        Section 2.  The licensing provisions of this act shall not
     apply to--
        (a)  The sale of farm produce for cash, cash to mean
     settlement in full, in United States currency, certified check
     or United States postal money order, on or before delivery;
        (b)  Producers marketing farm produce of their own raising;
        (c)  Processors of farm produce when such shipments or
     purchases are covered by a written contract, duly signed by the
     producer;
        (d)  Transactions subject to the provisions of the Federal
     "Perishable Agricultural Commodities Act of 1930."
        (2 amended Sept. 28, 1978, P.L.829, No.163)
        Section 3.  It shall be unlawful for any dealer in farm
     produce to engage in business in this Commonwealth, unless he or
     it shall hold a license issued by the department as provided in
     this act except for those which are exempted by section two.
        (3 amended Sept. 28, 1978, P.L.829, No.163)
        Section 4.  Dealers in farm produce, desiring to transact
     business within this Commonwealth, shall annually on or before
     April thirtieth, file an application for such license with the
     department. The application shall be on a form furnished by the
     department, and, together with such other information as the
     department may require, shall state--
        (a)  The kind or kinds of farm produce which the applicant
     proposes to handle;
        (b)  The full name or title of the applicant, or if the
     applicant be an association or copartnership, the name of each
     member of such association or copartnership, or if the applicant
     be a corporation, the name of each officer of the corporation;
        (c)  The names of the local agent or agents of the applicant,
     if any;
        (d)  The cities, boroughs, towns, and townships within which
     places of business of the applicant will be located, together
     with the street or mailing address of each.
        (4 amended Apr. 8, 1976, P.L.83, No.35)
        Section 5.  Unless the department refuses the application on
     one or more of the grounds hereinafter provided, it shall issue
     to such applicant, upon the payment of required fees, a license
     entitling the applicant to conduct business as a dealer in farm
     produce at each place named in the application. Such license
     shall continue in force until April thirtieth next following its
     date of issuance. The fee for such license shall be twenty-five
     dollars ($25.00).
        (5 amended Apr. 8, 1976, P.L.83, No.35)
        Section 6.  (6 repealed May 7, 1943, P.L.204, No.105)
        Section 7.  Every dealer in farm produce shall, upon the
     receipt of farm produce, and as he handles and disposes of the
     same, make and preserve for a reasonable length of time a record
     thereof, specifying the name and address of the producer, the
     date of receipt, and the kind and quality of such produce. This
     record shall be prepared and maintained in such manner as to
     facilitate audit. Full payment shall be made to the producer
     promptly upon acceptance of farm produce. If the shipment is
     handled on consignment, joint account or net return basis, the
     record shall also give an accounting of the amount of goods
     sold, the selling price thereof, and the items of expenses
     connected therewith. Such an accounting of resale shall be
     furnished to the producer at or before time of final settlement.
        (7 amended Apr. 8, 1976, P.L.83, No.35)
        Section 8.  The department shall have power to investigate
     upon complaint, in such form as it may require, of any
     financially interested person or upon its own initiative, the
     record of any applicant or licensee, or any transaction
     involving the solicitation, receipt, sale or attempted sale of
     farm produce, the failure to make proper and true accounts and
     settlements at prompt and regular intervals, the making of false
     statements as to market conditions with intent to deceive,
     rejection of any farm produce without just cause, the making of
     false statements as to condition, quality or quantity of goods
     received, or the failure to make payment for goods received, or
     other alleged unethical practices. For such purposes the
     department may examine, at the place or places of business of
     the applicant or licensee, his ledgers, books of accounts,
     memoranda, and other documents which relate to the transaction
     involved, and may take testimony thereon under oath.
        (8 amended Apr. 8, 1976, P.L.83, No.35)
        Section 8.1.  Any person, or persons, complaining of any
     violation of any provision of section 8 by any dealer may at any
     time within one year after the alleged grievance occurs apply to
     the department by petition which shall briefly state the facts
     concerning such cause of complaint. Thereupon, if, in the
     opinion of the department, the facts therein contained warrant
     such action, a copy of the complaint thus made shall be
     forwarded by the department to the dealer complained of, who
     shall be called upon to satisfy the complaint or to answer it in
     writing within a reasonable time, to be prescribed by the
     department.
        (8.1 added Apr. 8, 1976, P.L.83, No.35)
        Section 9.  The department shall decline to grant a license
     or shall suspend or revoke a license already granted if it is
     satisfied that the applicant or licensee has either--
        (1)  Suffered a money judgment to be entered against him upon
     which execution has been returned unsatisfied; or
        (2)  Made false charges for handling or other services
     rendered; or
        (3)  Failed to account promptly and properly, or to make
     settlements with any producer; or
        (4)  Made any false statement or statements as to condition,
     quality or quantity of goods received or held for sale when he
     could have ascertained the true condition, quality or quantity
     by reasonable inspection; or
        (5)  Made any false or misleading statement or statements as
     to market conditions; or
        (6)  Made any false statement or statements in the
     application for or the procurement or the renewal of a license;
     or
        (7)  Directly or indirectly purchased farm produce received
     on consignment or on a net return basis for his own account,
     without prior authority, from the producer, consigning the same,
     or without notifying such producer; or
        (8)  Has rejected, dumped, discarded or destroyed any
     shipment of farm produce from the producer without just cause;
     or
        (9)  Has, within three years, been adjudicated or discharged
     as a bankrupt or was an officer, director, stockholder, partner
     or owner of a firm adjudicated or discharged as a bankrupt.
        (9 amended Apr. 8, 1976, P.L.83, No.35)
        Section 10.  Before the department shall refuse, suspend or
     revoke any license it shall give ten days' notice, by registered
     mail, to the applicant or licensee of a time and place of
     hearing. At such hearing the applicant or licensee shall be
     privileged to appear in person or by or with counsel and to
     produce witnesses. If the department shall find the applicant or
     licensee shall have been guilty of any of the acts provided in
     section nine of this act, the department shall refuse, suspend
     or revoke such license, and shall give immediate notice of its
     action to the applicant or licensee. The department may at its
     discretion, grant a renewal of license, following revocation, if
     the applicant furnishes a bond of such nature, tenure and amount
     as may be determined by the secretary to offer adequate
     assurance that the business of the applicant will be conducted
     in accordance with the provisions of this act.
        (10 amended Apr. 8, 1976, P.L.83, No.35)
        Section 11.  (11 repealed Apr. 28, 1978, P.L.202, No.53)
        Section 11.1.  Upon agreement, in writing, by the parties in
     dispute, the department may render arbitration services covering
     complaints wherein the amount claimed, exclusive of any sum not
     in dispute, does not exceed five hundred dollars ($500.00). The
     department may require full settlement of the undisputed amount
     as a prerequisite to rendering such arbitration services.
        (11.1 added Apr. 8, 1976, P.L.83, No.35)
        Section 12.  Any dealer in farm produce violating the
     provisions of section three of this act, or interfering with an
     agent of the department in the enforcement of this act, shall,
     upon conviction in a summary proceeding, be sentenced to pay a
     fine of not less than fifty dollars ($50.00) nor more than three
     hundred dollars ($300.00) and costs of prosecution, and in
     default of payment of such fine and costs, shall be sentenced to
     undergo imprisonment in the county jail for a period not
     exceeding thirty (30) days, and for a second or subsequent
     offense within a calendar year, shall be guilty of a misdemeanor
     and shall, upon conviction thereof, be sentenced to pay a fine
     of not less than five hundred dollars ($500.00) nor more than
     one thousand dollars ($1,000.00) or to undergo imprisonment not
     exceeding one year, or both in the discretion of the court.
        (12 amended Sept. 28, 1978, P.L.829, No.163)
        Section 13.  The Attorney General, at the request of the
     department, may, in the name of the Commonwealth, institute
     proceedings in equity for the purpose of enjoining the conduct
     of business in this Commonwealth contrary to the provisions of
     this act.
        (13 amended Apr. 8, 1976, P.L.83, No.35; repealed in part
     Apr. 28, 1978, P.L.202, No.53)
        Section 14.  The department shall adopt and shall enforce
     rules, and regulations deemed necessary to carry out the
     provisions of this act.
        (14 amended Apr. 8, 1976, P.L.83, No.35)
        Section 15.  All moneys received from license fees and fines
     shall be immediately paid by the department into the State
     Treasury, through the Department of Revenue, and credited to the
     General Fund.
        Section 16.  The provisions of this act shall be severable,
     and if any of its provisions shall be held to be
     unconstitutional, the decision of the court shall not affect the
     validity of the remaining provisions of this act. It is hereby
     declared as the legislative intent that this act would have been
     adopted had such unconstitutional provision not been included
     therein.