HF 3480

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to agriculture; clarifying the scope of 
  1.3             certain regulation of wholesale produce dealers; 
  1.4             amending Minnesota Statutes 1998, sections 27.01, 
  1.5             subdivision 8, and by adding a subdivision; and 27.19, 
  1.6             subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 27.01, 
  1.9   subdivision 8, is amended to read: 
  1.10     Subd. 8.  [WHOLESALE PRODUCE DEALER.] (a) "Wholesale 
  1.11  produce dealer" or "dealer at wholesale" means:  
  1.12     (1) a person who buys or contracts to buy produce in 
  1.13  wholesale lots for resale; 
  1.14     (2) a person engaging in the business of a broker or agent, 
  1.15  who handles or deals in produce for a commission or fee; 
  1.16     (3) a truck owner or operator who buys produce in wholesale 
  1.17  lots for resale; and 
  1.18     (4) a person engaged in the business of a cannery, food 
  1.19  manufacturer, or food processor, who purchases produce in 
  1.20  wholesale lots as a part of that business; and 
  1.21     (5) a person who contracts with a producer to grow, raise, 
  1.22  or provide produce in Minnesota.  
  1.23     (b) For purposes of paragraph (a), "wholesale lots" means 
  1.24  purchases from Minnesota sellers must total more than $12,000 
  1.25  annually. 
  1.26     (c) "Wholesale produce dealer" or "dealer at wholesale" 
  2.1   does not include:  
  2.2      (1) a truck owner and operator who regularly engages in the 
  2.3   business of transporting freight, including produce, for a 
  2.4   transportation fee only, and who does not purchase, contract to 
  2.5   purchase, or sell produce; 
  2.6      (2) a marketing cooperative association in which 
  2.7   substantially all of the voting stock is held by patrons who 
  2.8   patronize the association and in which at least 75 percent of 
  2.9   the business of the association is transacted with member or 
  2.10  stockholder patrons; 
  2.11     (3) a person who purchases Minnesota seasonally grown 
  2.12  perishable fresh fruits and vegetables, and pays cash, including 
  2.13  lawful money of the United States, a cashier's check, a 
  2.14  certified check, or a bank draft; 
  2.15     (4) a person who handles and deals in only canned, 
  2.16  packaged, or processed produce or packaged dairy products that 
  2.17  are no longer perishable as determined by the commissioner by 
  2.18  rule; or 
  2.19     (5) retail merchants who purchase produce, defined in 
  2.20  subdivision 2, directly from farmers, which in the aggregate 
  2.21  does not exceed $500 per month.  
  2.22     Sec. 2.  Minnesota Statutes 1998, section 27.01, is amended 
  2.23  by adding a subdivision to read: 
  2.24     Subd. 11.  [PRODUCER.] "Producer" means a person who 
  2.25  produces or causes to be produced produce in a quantity beyond 
  2.26  the person's own family use. 
  2.27     Sec. 3.  Minnesota Statutes 1998, section 27.19, 
  2.28  subdivision 1, is amended to read: 
  2.29     Subdivision 1.  [PROHIBITED ACTS.] (a) A person subject to 
  2.30  the provisions of this section and sections 27.01 to 27.14 may 
  2.31  not:  
  2.32     (1) operate or advertise to operate as a dealer at 
  2.33  wholesale without a license; 
  2.34     (2) make any false statement or report as to the grade, 
  2.35  condition, markings, quality, or quantity of produce, as defined 
  2.36  in section 27.069, received or delivered, or act in any manner 
  3.1   to deceive a consignor or purchaser; 
  3.2      (3) refuse to accept a shipment contracted for by the 
  3.3   person, unless the refusal is based upon the showing of a state 
  3.4   inspection certificate secured with reasonable promptness after 
  3.5   the receipt of the shipment showing that the kind and quality of 
  3.6   produce, as defined in section 27.069, is other than that 
  3.7   purchased or ordered by the person; 
  3.8      (4) fail to account or make a settlement for produce within 
  3.9   the required time; 
  3.10     (5) violate or fail to comply with the terms or conditions 
  3.11  of a contract entered into by the person for the purchase 
  3.12  production or sale of produce; 
  3.13     (6) purchase for a person's own account any produce 
  3.14  received on consignment, either directly or indirectly, without 
  3.15  the consent of the consignor; 
  3.16     (7) issue a false or misleading market quotation, or cancel 
  3.17  a quotation during the period advertised by the person; 
  3.18     (8) increase the sales charges on produce shipped to the 
  3.19  person by means of "dummy" or fictitious sales; 
  3.20     (9) receive decorative forest products and the products of 
  3.21  farms and waters from foreign states or countries for sale or 
  3.22  resale, either within or outside of the state, and give the 
  3.23  purchaser the impression, through any method of advertising or 
  3.24  description, that the produce is of Minnesota origin; 
  3.25     (10) fail to notify in writing all suppliers of produce of 
  3.26  the protection afforded to suppliers by the person's licensee 
  3.27  bond, including:  availability of a bond, notice requirements, 
  3.28  and any other conditions of the bond; 
  3.29     (11) make a false statement to the commissioner on an 
  3.30  application for license or bond or in response to written 
  3.31  questions from the commissioner regarding the license or bond; 
  3.32     (12) commit to pay and not pay in full for all produce 
  3.33  committed for.  A processor may not pay an amount less than the 
  3.34  full contract price if the crop produced is satisfactory for 
  3.35  processing and is not harvested for reasons within the 
  3.36  processor's control.  If the processor sets the date for 
  4.1   planting, bunching, unusual yields, and a processor's inability 
  4.2   or unwillingness to harvest must be considered to be within the 
  4.3   processor's control.  Under this clause growers must be 
  4.4   compensated for passed acreage at the same rate for grade and 
  4.5   yield as they would have received had the crop been harvested in 
  4.6   a timely manner minus any contractual provision for green manure 
  4.7   or feed value.  Both parties are excused from payment or 
  4.8   performance for crop conditions that are beyond the control of 
  4.9   the parties; or 
  4.10     (13) discriminate between different sections, localities, 
  4.11  communities, or cities, or between persons in the same 
  4.12  community, by purchasing produce from farmers of the same grade, 
  4.13  quality, and kind, at different prices, except that price 
  4.14  differentials are allowed if directly related to the costs of 
  4.15  transportation, shipping, and handling of the produce and a 
  4.16  person is allowed to meet the prices of a competitor in good 
  4.17  faith, in the same locality for the same grade, quality, and 
  4.18  kind of produce.  A showing of different prices by the 
  4.19  commissioner is prima facie evidence of discrimination.  
  4.20     (b) A separate violation occurs with respect to each 
  4.21  different person involved, each purchase or transaction 
  4.22  involved, and each false statement.