SECTIONS 56441-56447 - California Statutes

FOOD AND AGRICULTURAL CODE

SECTION 56441-56447

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) Any transaction which involves solicition, receipt, sale, or
attempted sale of any farm product by any person that is acting or
assuming to act as a licensee.
(b) Failure to make proper and true account of sales and
settlement of sales as required by this chapter.
(c) The intentional making of false statements as to condition and
quantity of any farm product which is received or in storage.
(d) The intentional making of false statements as to market
conditions.
(e) The failure to make payment for any farm product within the
time which is required by this chapter.
(f) Any and all other injurious transactions.

56442. In furtherance of any such investigation, examination, or
inspection, the director may examine the ledgers, books, accounts,
memoranda and other documents, farm products, scales, measures, and
other articles and things which are used in connection with the
business of the person.

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 jurisdiction to act upon the
complaint if the licensee or complainant, within 10 calendar days
after receiving notice of the filing of the verified complaint, has
notified the department of his or her election to submit the dispute
to alternative dispute procedures in accordance with the provisions
of a written contract:
(a) The rejection of any farm product.
(b) The failure or refusal to accept and pay for any farm product
that is bought or contracted to be bought from a producer or by a
licensee.
(c) The failure or refusal by the licensee to furnish or provide
boxes or other containers, or hauling, harvesting, or any other
services that are contracted to be done by the licensee in connection
with the acceptance, harvesting, or other handling of the farm
product.
(d) The terms and conditions of the written contract.

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 responsible for the alternative
dispute procedures, without reasonable cause, fail, refuse, or
neglect to adjudicate the matter in dispute within 90 days from the
date of notification to the department.

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 award that is made in accordance with
the terms of the written contract.

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 was due.
This period, however, does not include the length of time it takes
to secure a written letter of denial from the federal agencies
responsible for administering the federal Packers and Stockyards Act,
1921 (7 U.S.C. Sec. 181, et seq.) or the federal Perishable
Agricultural Commodities Act, 1930 (7 U.S.C. Sec. 499a et seq.).

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 creditors for any farm product purchased
from the creditors, the department shall ascertain the names and
addresses of all farm products creditors of that licensee together
with the amounts due and owing to them by the licensee, and shall
request all those farm products creditors to file a verified
statement of their respective claims with the department. The request
shall be addressed to each known farm products creditor at his or
her last known address.