BILL NUMBER: AB 264 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 21, 2015
INTRODUCED BY Assembly Member Dahle
FEBRUARY 10, 2015
An act to amend Section 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: proces
sors: produce dealers: seeds.
Existing
(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. 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, 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 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: no 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) 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.
(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 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 any farm product that sells any product
which is grown by him to any processor under contract,
express or implied, in addition to all other rights and remedies
which that are provided for by law, has
a lien upon such that product and upon
all processed or manufactured forms of such farm
that product for his or her labor, care, and
expense in growing and harvesting such that
product. The lien shall be to the extent of the agreed price,
if any, for such that product so sold.
If there is no agreed price or a method for determining it
which that is agreed upon, the extent of the
lien is the value of the farm that
product as of the date of the delivery. Any portion of such
that product or the processed or manufactured
forms of such that product, in excess
of the amount necessary to satisfy the total amount owed to producers
under contract, shall be free and clear of such
that lien.
SECTION 1. 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.