Bill Text: CA AB264 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Farm products: processors: produce dealers: seeds.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2015-09-21 - Chaptered by Secretary of State - Chapter 294, Statutes of 2015. [AB264 Detail]

Download: California-2015-AB264-Amended.html

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BILL NUMBER: AB 264	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 8, 2015
	AMENDED IN ASSEMBLY  APRIL 21, 2015

INTRODUCED BY   Assembly Member Dahle

                        FEBRUARY 10, 2015

   An act to amend Sections 52332, 55631, and 56109 of the Food and
Agricultural Code, relating to farm products.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 264, as amended, Dahle. Farm products: processors: produce
dealers: seeds.
   (1) Existing law, the California Seed Law, requires the Secretary
of Food and Agriculture, by regulation, to adopt, among other things,
specified lists of plants and crops that the secretary finds are or
may be grown in the state or that the secretary finds are detrimental
to agriculture if they occur incidentally in other crops, as
prescribed, a list of noxious weed seed that the secretary finds are
prohibitive noxious weed seed, and methods and procedures, upon
recommendation of the Seed Advisory Board, for the conciliation,
mediation, or arbitration of disputes between labelers and any
persons concerning conformance with label statements, advertisements,
or other disputes regarding the quality or performance of seed.
   This bill would expand this regulation authority to also make
those methods and procedures for the conciliation, mediation, or
arbitration of those disputes applicable to disputes concerning
conformance with financial terms or the lack of payment by a dealer
to a  grower.   grower, as provided.  By
expanding the scope of that regulation authority, a violation of
which is a crime, the bill would impose a state-mandated local
program.
   (2) Existing law specifies that every producer of any farm product
that sells any farm product that is grown by him or her to any
processor under contract, express or implied, in addition to all
other rights and remedies that are provided by law, has a lien upon
that product and upon all processed or manufactured forms of that
farm product for his or her labor, care, and expense in growing and
harvesting that product.
   This bill  would, instead,   would also 
specify that every producer of a flower, agricultural  , 
or vegetable seed that sells seed that is grown by him or her, when
the seed was purchased or supplied by the grower and not supplied by
the dealer or an independent  third   3rd 
party who paid for the seed, to any seed dealer under contract,
express or implied, in addition to all rights and remedies that are
provided for by law, has a lien upon that product and upon all
processed or manufactured forms of that product for his or her labor,
care, and expense in growing and harvesting that product.
   (3) Existing law requires that any person engaged in the business
of buying, receiving on consignment, soliciting for sale on
commission, or negotiating the sale of farm products from a licensee
or producer for resale, to be licensed. Existing law, for purposes of
those provisions, defines "farm product" to include every
agricultural, horticultural, viticultural, and vegetable product of
the soil, poultry and poultry products, livestock products and
livestock not for immediate slaughter, bees and apiary products, hay,
dried beans, honey, and cut flowers, but excludes from that
definition any timber or timber product, flower or agricultural or
vegetable seed not purchased from a producer, any milk product that
is subject to specified licensing requirements, any aquacultural
product, or cattle sold to any person who is bonded under a specified
federal law.
   This bill would revise that definition to exclude flower,
agricultural, or vegetable seeds from the definition of farm
products, rather than only those that have not been purchased from a
producer.
   (4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 52332 of the Food and Agricultural Code is
amended to read:
   52332.  The secretary, by regulation, may adopt all of the
following:
   (a) A list of the plants and crops that the secretary finds are or
may be grown in this state.
   (b) A list of the plants and crops that the secretary finds are
detrimental to agriculture if they occur incidentally in other crops,
and which, therefore, are classed as weed seed except if sold alone
or as a specific constituent of a definite seed mixture.
   (c) A list of noxious weed seed that the secretary finds are
prohibited noxious weed seed, as defined in this chapter.
   (d) A list of those noxious weed seed that are not classified as
prohibited noxious weed seed and are classified by this chapter as
restricted noxious weed seed.
   (e) A list of substances that are likely to be used for treating
grain or other crop seed that the secretary finds and determines are
toxic to human beings or animals if used, and an appropriate warning
or caution statement for each substance.
   (f) (1)  (A)    Establish methods and
procedures, upon the recommendation of the board, for the
conciliation, mediation, or arbitration of disputes between labelers
and any persons concerning conformance with label statements,
advertisements, financial terms or the lack of payment by a dealer to
a grower, or other disputes regarding the quality or performance of
seed. The methods and procedures shall be a mandatory prerequisite to
pursuing other dispute resolution mechanisms, including, but not
limited to, litigation. However, if conciliation, mediation, or
arbitration proceedings are commenced under this section to resolve a
controversy, the statute of limitations that applies to a civil
action concerning that controversy is tolled upon commencement of
conciliation, mediation, or arbitration proceedings, and until 30
days after the completion of those proceedings. As used in this
subdivision, "completion of those proceedings" means the filing of a
statement of agreement or nonagreement by the conciliator or
mediator, or the rendering of a decision by an arbitrator or
arbitration committee. 
   (B) If a proceeding for the conciliation, mediation, or
arbitration of a dispute between a dealer and a grower is commenced
under this subdivision for conformance with the financial terms by a
dealer to a grower, and the decision in the proceeding is in favor of
the grower, the decision may include a provision requiring
compensation to the grower for the estimated value of the seed
production services a grower provides to a dealer.  
   (C) If a dealer fails to comply with the financial obligations of
a judgment rendered in a conciliation, mediation, or arbitration
proceeding between a dealer and a grower commenced pursuant to this
subdivision following the conclusion of all appeals in the
proceeding, the secretary may revoke the dealer's license and prevent
the dealer from renewing his or her license until the time the
financial obligation is fulfilled. 
   (2) Conciliation, mediation, or arbitration shall not affect any
enforcement action by the secretary pursuant to this chapter.
Regulations adopted by the secretary for the mandatory conciliation,
mediation, or arbitration of disputes shall require that adequate
notice be provided on the seed label notifying any buyer of the
requirement to submit a dispute to mandatory conciliation, mediation,
or arbitration as a prerequisite to other dispute resolution
mechanisms, including litigation.
   (g) Establish additional labeling requirements for coated,
pelleted, encapsulated, mat, tape, or any other germination medium or
device used on seed in order that the purchaser or consumer will be
informed as to the actual amount of seed purchased.
  SEC. 2.  Section 55631 of the Food and Agricultural Code is amended
to read:
   55631.   Every   (a)    
Every producer of any farm product that sells any product that is
grown by him or her to any processor under contract, express or
implied, in addition to all other rights and remedies that are
provided for by law, has a lien upon that product and upon all
processed or manufactured forms of that farm product for his or her
labor, care, and expense in growing and harvesting that product. The
lien shall be to the extent of the agreed price, if any, for that
product so sold. If there is no agreed price or a method for
determining it that is agreed upon, the extent of the lien is the
value of the farm product as of the   date of the delivery.
Any portion of that product or the processed or manufactured forms of
that product, in excess of the amount necessary to satisfy the total
amount owed to producers un   der contract, shall be free
and clear of that lien. 
    (b)     Every    producer of
a flower, agricultural, or vegetable seed that sells seed that is
grown by him or her, when the seed was purchased or supplied by the
grower and not supplied by the dealer or an independent third party
who paid for the seed, to any seed dealer under contract, express or
implied, in addition to all other rights and remedies that are
provided for by law, has a lien upon that product and upon all
processed or manufactured forms of that product for his or her labor,
care, and expense in growing and harvesting that product. The lien
shall be to the extent of the agreed price, if any, for that product
so sold. If there is no agreed price or a method for determining it
that is agreed upon, the extent of the lien is the value of that
product as of the date of the delivery. Any portion of that product
or the processed or manufactured forms of that product, in excess of
the amount necessary to satisfy the total amount owed to producers
under contract, shall be free and clear of that lien.
  SEC. 3.  Section 56109 of the Food and Agricultural Code is amended
to read:
   56109.  "Farm product" includes every agricultural, horticultural,
viticultural, and vegetable product of the soil, poultry and poultry
products, livestock products and livestock not for immediate
slaughter, bees and apiary products, hay, dried beans, honey, and cut
flowers. It does not, however, include any timber or timber product,
flower or agricultural or vegetable seed, any milk product that is
subject to the licensing and bonding provisions of Chapter 2
(commencing with Section 61801) of Part 3 of Division 21, any
aquacultural product, or cattle sold to any person who is bonded
under the federal Packers and Stockyards Act, 1921 (7 U.S.C. Sec.
181, et seq.).
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.