PRIOR PRINTER'S NOS. 685, 1135 PRINTER'S NO. 2244
No. 612 Session of 1975
INTRODUCED BY MESSRS. SHELHAMER, THOMAS, WEIDNER, YAHNER, FRYER, ZELLER, A. C. FOSTER JR., KLINGAMAN, R. W. WILT, COLE, W. W. FOSTER, MORRIS, PRATT, GREEN AND DAVIS, FEBRUARY 26, 1975
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, SEPTEMBER 30, 1975
AN ACT 1 Amending the act of May 27, 1937 (P.L.901, No.241), entitled "An 2 act for the protection of producers of farm produce; 3 providing for the licensing, the bonding or holding 4 collateral of and the regulation of certain dealers in farm 5 produce, as herein defined, within this Commonwealth; 6 conferring powers, and imposing duties on the Department of 7 Agriculture; providing for appeals and injunctions; and 8 prescribing penalties," changing definitions, license dates, 9 license fees and penalties, providing for hearing of 10 complaints by the Department of Agriculture and for 11 arbitration services by the department; and further providing 12 for licenses, records and duties of the department. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. Section 1, act of May 27, 1937 (P.L.901, No.241), 16 entitled "An act for the protection of producers of farm 17 produce; providing for the licensing, the bonding or holding 18 collateral of and the regulation of certain dealers in farm 19 produce, as herein defined, within this Commonwealth; conferring 20 powers, and imposing duties on the Department of Agriculture; 21 providing for appeals and injunctions; and prescribing 22 penalties," amended May 7, 1943 (P.L.204, No.105), is amended to
1 read: 2 Section 1. Be it enacted, &c., That the following words or 3 phrases, unless the context clearly indicates otherwise, shall 4 have the meanings ascribed to them in this section: 5 (a) "Dealer in farm produce" means any person, association, 6 copartnership or corporation engaged in the business of buying, 7 receiving, selling, exchanging, negotiating, or soliciting the 8 sale, resale, exchange or transfer of any farm produce from the 9 producer [on consignment or on a net return basis] or his agent 10 in wholesale or jobbing quantities. 11 (b) "Department" means the Department of Agriculture of this 12 Commonwealth. 13 (c) "Farm produce" includes all agricultural, horticultural, 14 vegetable, fruit, and floriculture products of the soil; 15 poultry, eggs, nuts, flowers, [and] honey, mushrooms and 16 Christmas trees, but shall not include timber products, tea, 17 coffee, live stock, wool, GRAIN, milk or milk products. <-- 18 (d) ["Net return basis" means a purchase for sale of farm 19 produce from a producer at an unfixed or unstated price at the 20 time the produce is shipped from the point of origin, and it 21 shall include all purchases made "at the market price," and on 22 similar terms, which indicate that the buyer is the final 23 arbiter of the price to be paid.] "Producer" means any grower of 24 farm produce in this Commonwealth for marketing. 25 (e) ["On consignment" means a sending, transfer or delivery 26 of farm produce by a producer to a dealer in farm produce, for 27 the purpose of sale upon a commission basis.] "Wholesale" or 28 "jobbing quantity" means any one unit of shipment, or purchase 29 of farm produce, having a gross value of more than five hundred 30 dollars ($500). 19750H0612B2244 - 2 -
1 [(f) "Producer" means any producer of farm produce in this 2 Commonwealth.] 3 Section 2. Sections 2, 3, and 4 of the act are amended to 4 read: 5 Section 2. The provisions of this act shall not apply to-- 6 (a) The sale of farm produce for cash, cash to mean 7 settlement in full, in United States currency, on or before 8 delivery; 9 (b) [Farmers who sell farm produce raised by themselves, or 10 who, at the time of such sales, sell farm produce raised by 11 their neighbors on behalf of such neighbors;] Producers 12 marketing farm produce of their own raising; 13 (c) [Seeds sold at retail;] Agricultural cooperative 14 associations marketing farm produce for their members only; 15 (d) [Agricultural cooperative associations which market farm 16 produce for their members.] Processors of farm produce when such 17 shipments or purchases are covered by a written contract, duly 18 signed by the producer; 19 (e) Transactions subject to the provisions of the Federal 20 "Perishable Agricultural Commodities Act of 1930." 21 Section 3. [On and after December thirty-first, one thousand 22 nine hundred and thirty-seven, it] It shall be unlawful for any 23 dealer in farm produce to engage in business in this 24 Commonwealth, unless he or it shall hold a license issued by the 25 department as provided in this act. 26 Section 4. [Every dealer] Dealers in farm produce, desiring 27 to transact business within this Commonwealth, shall annually on 28 or before [December first] April thirtieth, file an application 29 for such license with the department. The application shall be 30 on a form furnished by the department, and, together with such 19750H0612B2244 - 3 -
1 other information as the department [shall] may require, shall 2 state-- 3 (a) The kind or kinds of farm produce which the applicant 4 proposes to handle; 5 (b) The full name or title of the applicant, or if the 6 applicant be an association or copartnership, the name of each 7 member of such association or copartnership, or if the applicant 8 be a corporation, the name of each officer of the corporation; 9 (c) The names of the local agent or agents of the applicant, 10 if any; 11 (d) The cities, boroughs, towns, and townships within which 12 places of business of the applicant will be located, together 13 with the street or mailing address of each. 14 Section 3. Sections 5 and 7 of the act, amended May 7, 1943 15 (P.L.204, No.105), are amended to read: 16 Section 5. Unless the department refuses the application on 17 one or more of the grounds hereinafter provided, it shall issue 18 to such applicant, upon the payment of [proper] required fees, a 19 license entitling the applicant to conduct business as a dealer 20 in farm produce at each place named in the application. Such 21 license shall [be] continue in force [from the date issued until 22 and including the thirty-first day of December of the same year] 23 until April thirtieth next following its date of issuance. The 24 fee for such license shall be [five dollars ($5.00) for each 25 place of business which the applicant conducts or names in the 26 application] twenty-five dollars ($25.00). 27 Section 7. Every dealer in farm produce shall, upon the 28 receipt of farm produce [for which payment is not made on 29 delivery], and as he handles and disposes of the same, make and 30 preserve for [at least two years] a reasonable length of time a 19750H0612B2244 - 4 -
1 record thereof, specifying the name and address of the producer, 2 [consigning or shipping such farm produce] the date of receipt, 3 and the kind and quality of such produce. [the amount of goods 4 sold, the name and address of the purchaser, except that where 5 sales total less than five dollars ($5.00) in value, such sales 6 may be made to order of "cash," the selling price thereof, and 7 the items of expenses connected therewith. An "account sales," 8 together with payment in settlement for said shipment, shall be 9 mailed to the producer within forty-eight hours after the sale 10 of such farm produce, unless otherwise agreed in writing.] This 11 record shall be prepared and maintained in such manner as to 12 facilitate audit. Full payment shall be made to the producer 13 promptly upon acceptance of farm produce. If the shipment is 14 handled on consignment, joint account or net return basis, the 15 record shall also give an accounting of the amount of goods 16 sold, the selling price thereof, and the items of expenses 17 connected therewith. Such an accounting of resale shall be 18 furnished to the producer at or before time of final settlement. 19 Section 4. Section 8 of the act is amended to read: 20 Section 8. The department shall have power to investigate 21 upon complaint, in such form as it may require, of [an] any 22 financially interested person or upon its own initiative, the 23 record of any applicant or licensee, or any transaction 24 involving the solicitation, receipt, sale or attempted sale of 25 farm produce, the failure to make proper and true accounts and 26 settlements at prompt and regular intervals, the making of false 27 statements as to [condition] market conditions with intent to 28 deceive, rejection of any farm produce without just cause, the 29 making of false statements as to condition, quality or quantity 30 of goods received [or while in storage, the making of false 19750H0612B2244 - 5 -
1 statements as to market conditions with intent to deceive], or 2 the failure to make payment for goods received, or other alleged 3 [injurious transactions] unethical practices. For such purposes 4 the department may examine, at the place or places of business 5 of the applicant or licensee, his ledgers, books of accounts, 6 memoranda, and other documents which relate to the transaction 7 involved, and may take testimony thereon under oath. 8 Section 5. The act is amended by adding a section to read: 9 Section 8.1. Any person, or persons, complaining of any 10 violation of any provision of section 8 by any dealer may at any 11 time within one year after the alleged grievance occurs apply to 12 the department by petition which shall briefly state the facts 13 concerning such cause of complaint. Thereupon, if, in the 14 opinion of the department, the facts therein contained warrant 15 such action, a copy of the complaint thus made shall be 16 forwarded by the department to the dealer complained of, who 17 shall be called upon to satisfy the complaint or to answer it in 18 writing within a reasonable time, to be prescribed by the 19 department. 20 Section 6. Section 9 of the act, amended May 7, 1943 21 (P.L.204, No.105), is amended to read: 22 Section 9. The department may decline to grant a license or 23 may suspend or revoke a license already granted if it is 24 satisfied that the applicant or licensee has either-- 25 (1) Suffered a money judgment to be entered against him upon 26 which execution has been returned unsatisfied; or 27 (2) Made false charges for handling or other services 28 rendered; or 29 (3) Failed to account promptly and properly, or to make 30 settlements with any producer; or 19750H0612B2244 - 6 -
1 (4) Made any false statement or statements as to condition, 2 quality or quantity of goods received or held for sale when he 3 could have ascertained the true condition, quality or quantity 4 by reasonable inspection; or 5 (5) Made any false or misleading statement or statements as 6 to market conditions [or service rendered]; or 7 (6) [Been guilty of a fraud] Made any false statement or 8 statements in the application for or the procurement or the 9 renewal of a license; or 10 (7) Directly or indirectly purchased farm produce received 11 on consignment or on a net return basis for his own account, 12 without prior authority, from the producer, consigning the same, 13 or without notifying such producer; or 14 (8) Has rejected, dumped, discarded or destroyed any 15 shipment of farm produce from the producer without just cause; 16 or 17 (9) Has, within three years, been adjudicated or discharged 18 as a bankrupt or was an officer, director, stockholder, partner 19 or owner of a firm adjudicated or discharged as a bankrupt: 20 Except, that at the discretion of the secretary, such person or 21 persons may be licensed if surety bonds, in the form and amount 22 acceptable, are furnished. 23 Section 7. Sections 10 and 11 of the act are amended to 24 read: 25 Section 10. Before the department shall refuse, suspend or 26 revoke any license it shall give ten days' notice, by registered 27 mail, to the applicant or licensee of a time and place of 28 hearing. At such hearing the applicant or licensee shall be 29 privileged to appear in person or by or with counsel and to 30 produce witnesses. If the department shall find the applicant or 19750H0612B2244 - 7 -
1 licensee shall have been guilty of any of the acts provided in 2 section nine of this act, the department may refuse, suspend or 3 revoke such license, and shall give immediate notice of its 4 action to the applicant or licensee. The department may, at its 5 discretion, grant a renewal of license, following revocation, if 6 the applicant furnishes a bond of such nature, tenure and amount 7 as may be determined by the secretary to offer adequate 8 assurance that the business of the applicant will be conducted 9 in accordance with the provisions of this act. 10 Section 11. Any applicant or licensee aggrieved by any 11 decision of the department, shall have the right of appeal 12 therefrom, within thirty days from the date of notice, to the 13 [court of common pleas of Dauphin County. 14 From a decision of the court of common pleas of Dauphin 15 County an appeal may be taken by either party to the Superior or 16 Supreme Court of Pennsylvania, as in other cases] Commonwealth 17 Court. 18 No appeal shall act as a supersedeas, but pending final 19 disposition of an appeal under this section, the department may, 20 for special cause shown, grant, in writing, temporary 21 permission, revocable at any time and subject to such terms and 22 conditions as the department may prescribe, to transact business 23 as a dealer in farm produce, but unless such permission be 24 granted, any applicant to whom a license has been refused, and 25 any licensee whose license has been revoked by the department, 26 who shall do business as a dealer in farm produce, shall be 27 liable therefor to the same extent as if no application had been 28 filed. 29 Section 8. The act is amended by adding a section to read: 30 Section 11.1. Upon agreement, in writing, by the parties in 19750H0612B2244 - 8 -
1 dispute, the department may render arbitration services covering 2 complaints wherein the amount claimed, exclusive of any sum not 3 in dispute, does not exceed five hundred dollars ($500.00). The 4 department may require full settlement of the undisputed amount 5 as a prerequisite to rendering such arbitration services. 6 Section 9. Section 12 of the act, amended May 7, 1943 7 (P.L.204, No.105), is amended to read: 8 Section 12. Any dealer in farm produce violating the 9 provisions of section three of this act, or interfering with an 10 agent of the department in the enforcement of this act, shall 11 [for the first offense], upon conviction in a summary 12 proceeding, be sentenced to pay a fine of not less than [fifty 13 dollars ($50.00)] twenty-five dollars ($25.00) nor more than 14 [three hundred dollars ($300.00)] two hundred dollars ($200.00) 15 and costs of prosecution, and in default of payment of such fine 16 and costs, shall be sentenced to undergo imprisonment in the 17 county jail for a period not exceeding [sixty (60) days, and for 18 a second or subsequent offense shall be guilty of a misdemeanor 19 and shall, upon conviction thereof, be sentenced to pay a fine 20 of not less than five hundred dollars ($500.00) nor more than 21 one thousand dollars ($1,000), or to undergo imprisonment not 22 exceeding one year, or both, in the discretion of the court] 23 thirty (30) days. 24 Section 10. Sections 13 and 14 of the act are amended to 25 read: 26 Section 13. The Attorney General, at the request of the 27 department, may, in the name of the Commonwealth, institute 28 proceedings in equity in the [court of common pleas of Dauphin 29 County] Commonwealth Court for the purpose of enjoining the 30 conduct of business in this Commonwealth contrary to the 19750H0612B2244 - 9 -
1 provisions of this act, and for such purpose jurisdiction is 2 hereby conferred upon said court. In such case the Attorney 3 General shall not be required to give bond. 4 Section 14. The department shall [enforce] adopt and shall 5 [adopt] enforce rules, and regulations deemed necessary to carry 6 out the provisions of this act. B6L1RW/19750H0612B2244 - 10 -