BILL NUMBER: AB 1249 CHAPTERED 07/28/99 CHAPTER 198 FILED WITH SECRETARY OF STATE JULY 28, 1999 APPROVED BY GOVERNOR JULY 27, 1999 PASSED THE SENATE JULY 15, 1999 PASSED THE ASSEMBLY MAY 20, 1999 AMENDED IN ASSEMBLY APRIL 14, 1999 INTRODUCED BY Committee on Agriculture (Cardoza (Chair), Maldonado (Vice Chair), Brewer, Florez, Reyes, Thomson, and Wiggins) FEBRUARY 26, 1999 An act to amend Sections 55484.75 , 55523, 55862, 56183.5, 56185.75, and 56572 of the Food and Agricultural Code, relating to agriculture. LEGISLATIVE COUNSEL'S DIGEST AB 1249, Committee on Agriculture. Produce dealers and agents of farm products processors: licensing. (1) Existing law sets forth procedures governing the licensure by the Department of Food and Agriculture of produce dealers and agents of farm products processors. Under these provisions of existing law, if an application for a license indicates, or the department determines during the application review process, that the applicant had previously applied for a license and the application was denied within the last year, the department is required to cease further review of the application until one year has elapsed from the date of the notification of the denial or from the effective date of the decision and order of the department upholding a denial. This bill, instead, under the above circumstances, would require the department to cease further review of the application until 30 days have elapsed from the date of the notification of the denial or from the effective date of the decision and order of the department upholding a denial. (2) The above provisions of existing law specify that an applicant whose application is incomplete shall be given written notice that a failure to complete the application within 30 calendar days shall result in denial of the application. This bill, instead, would require the written notice to specify that a failure to complete the application within 60 calendar days shall result in denial of the application. (3) The above provisions of existing law specify that if any licensee does not apply for the renewal of a preexisting license on or before the date of expiration of the license, a penalty of $25 shall be added to the fee. Existing law also provides that that penalty is applicable only during the 30-day period immediately following the license expiration date and shall entitle the applicant to 30 days from the date of the penalty payment to complete the application. If the application is not completed within that time, the application is required to be deemed denied and all fees retained by the Secretary of Food and Agriculture. This bill, instead, would specify that the $25 penalty shall be paid within 30 days immediately following the license expiration date and that payment of the penalty shall entitle the applicant to 60 days from the date of the penalty payment to complete the application. If the application is not completed within that time, the application shall be deemed denied and all fees retained by the department. In addition, the bill would specify that if the penalty is not paid within the 30-day period, any application for renewal of a preexisting license shall be treated as a new application. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 55484.75 of the Food and Agricultural Code is amended to read: 55484.75. (a) If an application for a license indicates, or the department determines during the application review process, that the applicant was issued a license that was revoked within the preceding two years, the department shall cease any further review of the application until two years have elapsed from the date of the revocation. The cessation of review shall not constitute a denial of the application for the purposes of this chapter, or any other provision of law. (b) If an application for a license indicates, or the department determines during the application review process, that the applicant had previously applied for a license and the application was denied within the last year, the department shall cease further review of the application until 30 days have elapsed from the date of the notification of the denial or from the effective date of the decision and order of the department upholding a denial. The cessation of review shall not constitute a denial of the new applicant for purposes of this chapter, or any other provision of law. (c) Nothing in subdivision (a) or (b) prohibits the department from taking into account the basis for denial or revocation in considering any new application subsequent to the elapse of the applicable period of prohibition. SEC. 2. Section 55523 of the Food and Agricultural Code is amended to read: 55523. (a) Each application shall state all of the following: (1) The full name of the applicant. (2) If the applicant is a firm, exchange, association, or corporation, the full name of each member of the firm or the names of the officers of the exchange, association, or corporation. (3) The principal business address of the applicant in this state. (4) The name of every person who is authorized to receive and accept service of summons for the applicant. (5) A release authorizing the department, during consideration of the application and for the duration of licensure, to have access to and obtain financial information from both of the following: (A) The applicant's files with credit reporting agencies. (B) The applicant's files with banks, savings and loan associations, or any other financial institutions with whom the applicant has done business in the past or with whom the applicant intends to do business during the year of licensure. (6) A notice signed by the applicant that the department may obtain criminal record information during the course of a licensing investigation or upon presentation with a reasonable basis to believe the licensee has been convicted of a crime. An applicant whose application is incomplete shall be given written notice that a failure to complete the application within 60 calendar days shall result in denial of the application. (b) The documents and information procured pursuant to this section shall be considered the records of a consumer and shall not be construed to be a public record. The documents and information shall remain confidential, except in actions brought by the department to enforce this division, or as a result of the issuance of a subpoena in accordance with Section 1985.4 of the Code of Civil Procedure. The unauthorized release of the documents received from the Department of Justice or the information contained in those documents, is a misdemeanor. SEC. 3. Section 55862 of the Food and Agricultural Code is amended to read: 55862. (a) (1) If any processor does not apply for the renewal of a preexisting license on or before the date of expiration of the license, a penalty of twenty-five dollars ($25) shall be added to the fee provided for under Section 55861 or 55861.5. That penalty shall be paid within 30 days immediately following the license expiration date . Payment of the penalty shall entitle the applicant to 60 days from the date of the penalty payment to complete the application. If the application is not completed within that time, the application shall be denied and all fees retained by the department. (2) If the penalty described in paragraph (1) is not paid within the 30-day period, any application for renewal of a preexisting license shall be treated as a new application. (b) A new applicant shall have 60 days from the date of filing the application form and payment of the fee to complete the application. After the 60-day period has elapsed, if the application remains incomplete, the application may be denied and the application fee may be retained by the department. SEC. 4. Section 56183.5 of the Food and Agricultural Code is amended to read: 56183.5. (a) An initial application, at a minimum, shall include the following: (1) A release authorizing the department, during consideration of the application and for the duration of licensure, to have access to and obtain financial information from both of the following: (A) The applicant's files with credit reporting agencies. (B) The applicant's files with banks, savings and loan associations, or any other financial institutions with whom the applicant has done business in the past or with whom the applicant intends to do business during the year of licensure. (2) A notice signed by the applicant that the department may obtain criminal record information during the course of a licensing investigation or upon presentation with a reasonable basis to believe the licensee has been convicted of a crime. An applicant whose application is incomplete shall be given written notice that a failure to complete it within 60 calendar days shall result in denial of the application. (b) The documents and information procured pursuant to this section shall be considered the records of a consumer and shall not be construed to be a public record. The documents and information shall remain confidential, except in actions brought by the department to enforce this division, or as a result of the issuance of a subpoena in accordance with Section 1985.4 of the Code of Civil Procedure. The unauthorized release of the documents received from the Department of Justice or the information contained in those documents is a misdemeanor. (c) The department shall adopt regulations that specify the proper and necessary information and supporting documentation the department requires for an application to be considered complete. SEC. 5. Section 56185.75 of the Food and Agricultural Code is amended to read: 56185.75. (a) If an application for a license indicates, or the department determines during the application review process, that the applicant was issued a license that was revoked within the preceding two years, the department shall cease any further review of the application until two years have elapsed from the date of the revocation. The cessation of review shall not constitute a denial of the application for the purposes of this chapter, or any other provision of law. (b) If an application for a license indicates, or the department determines during the application review process, that the applicant had previously applied for a license and the application was denied within the last year, the department shall cease further review of the application until 30 days have elapsed from the date of the notification of the denial or from the effective date of the decision and order of the department upholding a denial. The cessation of review shall not constitute a denial of the new applicant for purposes of this chapter, or any other provision of law. (c) Nothing in subdivision (a) or (b) prohibits the department from taking into account the basis for denial or revocation in considering any new application subsequent to the elapse of the applicable period of prohibition. SEC. 6. Section 56572 of the Food and Agricultural Code is amended to read: 56572. (a) (1) If any licensee does not apply for the renewal of a preexisting license on or before the date of the expiration of the license, a penalty of twenty-five dollars ($25) shall be added to the fee provided for under Section 56571 or 56571.5. That penalty shall be paid within 30 days immediately following the license expiration date . Payment of the penalty shall entitle the applicant to 60 days from the date of the penalty payment to complete the application. If the application is not completed within such time, the application shall be denied and all fees retained by the department. (2) If the penalty described in paragraph (1) is not paid within the 30-day period, any application for renewal of a preexisting license shall be treated as a new application. (b) A new applicant shall have 60 days from the date of filing the application form and payment of the fee to complete the application. After the 60-day period has elapsed, if the application remains incomplete, the application may be denied and the application fee retained by the department.