CHAPTER 598

An Act to amend and reenact the Code of Virginia by adding in Chapter
26 of Title 8.1, an article numbered 3, containing sections numbered
8.1-722.1 through 8.1-722.11, relating to requirements of licenses and
bonds for dealers in agricultural products; application requirements;
records and information to be kept; reasons for revoking licenses;
and, to provide penalties for violations.

[H 672]

Approved April 4, 1968

Be it enacted by the General Assembly of Virginia:

1. ‘hat the Code of Virginia be amended by adding in Chapter 26 of
Title 3.1, an article numbered 3, containing sections numbered 3.1-722.1
through 3.1-722.11 as follows:

Article 3

§ 3.1-722.1. Definitions.—The following definitions shall apply in the
interpretation and enforcement of this article.

(a) “Person” means any individual person, firm, partnership, cor-
poration, association or syndicate, their lessees, trustees or receivers.

(b) “Dealer” means any person in Virginia who buys, sells, solicits
for sale, processes for sale or resale, resells, exchanges, negotiates, pur-
chases or contracts for processing or transfers any agricultural product
of a producer. The term “dealer” shall exclude persons operating in Vir-
ginia as a licensed commission merchant under the provisions of Article 2,
Chapter 26 of Title 8.1 of the Code of Virginia (1950), as amended,
licensed wholesale merchant brokers under the provisions of Article 4,
Chapter 7, of Title 58 of the Code of Virginia (1950), as amended, farmers
or groups of farmers selling agricultural products grown by them, persons
who operate as cash buyers, and any person who buys for wholesale or
retail in Virginia.

(c) “Producer” means any person in Virginia who produces agricul-
tural products.

(d) “Agricultural products” means vegetables, and the term “vege-
tables” for the purposes of this article shall be construed to include,
but not by way of limitation, potatoes, tomatoes, melons, berries, and
cucumbers.

(e) “Commissioner” means the Commissioner of Agriculture and
Commerce.

(f) “Cash buyer” means any person who obtains from the producer,
or his representative, title, possession or control of any agricultural prod-
uct or contracts for the title, possession or control of any agricultural
product or who buys or agrees to buy any agricultural product by paying
to the producer at the time of obtaining possession or control or at the
time of contracting for the title, possession or control of any agricultural
product, the full agreed price of such agricultural product in coin or cur-
rency, lawful money of the United States, certified checks, cashier’s checks
or drafts issued by a bank.

§ 3.1-722.2. License required of dealer.—It shall be unlawful for
any dealer in agricultural products to operate and conduct a business
without first having obtained a license as herein provided. The Commis-
sioner shall publish semiannually in the bulletin of the Department of
Agriculture and Commerce a list of licensed dealers under this act.

§ 8.1-722.8. Dealers licensed annually.—Every dealer in agricultural
products proposing to transact business within the State of Virginia shall
on the effective date of this act and annually on or before January first of
each year thereafter file a written application for a license or for the
renewal of a license with the Commissioner of the Department of Agricul-
ture and Commerce. The application shall be on a form furnished by the
Commissioner and shall contain the following information along with such
other information as the Commissioner shall require.

(a) The name and address of the applicant and that of its local agent
or agents, if any, and the location of its principal place of business within
this State.

h a? The kinds of agricultural products the applicant proposes to
andle.

(c) The type of produce business proposed to be conducted.

§ 3.1-722.4. License fee; bond required.—All applications shall be
accompanied by a license fee of ten dollars and a good and sufficient bond
in the minimum sum of one thousand dollars or in such greater amount
as is equal to the maximum amount of gross business done in any month
in the State of Virginia during the preceding year by the applicant, but
in no event shall the amount of bond required exceed ten thousand dollars.

§ 3.1-722.5. Requirements of bond; bond form; action upon bond.—
The bond herein referred to shall be executed by the applicant as principal
and by a surety company authorized and qualified to do business in this
State as surety. The Commissioner shall be designated as the trustee of
this bond, and a copy of this bond shall be filed with him. Such bond shall
be upon a form prescribed or approved by the Commissioner and shall be
conditioned to secure the faithful accounting for payment to producers,
agents or representatives, of all agricultural products purchased, handled
or sold by the dealer. Any producer claiming to be injured by the non-
payment, fraud, deceit or negligence of any dealer may bring action there-
for upon the bond against the principal, or the surety, or both in any court
of competent jurisdiction.

3 3.1-722.6. Renewal of license.—Upon the application by evidence
of payment of renewal premium continuing the bond herein required in
full force and effect, and the payment of a fee of ten dollars on or before
the first day of January following the date of expiration of any license
hereunder issued. The application shall be entitled to renewal license to
expire one year from the expiration of the old license.

§ 8.1-722.7. Fees collected.—All sums received by the Commissioner
for license fees and the renewals of the same shall be paid into the State
treasury to the credit of the general fund.

§ 3.1-722.8. Dealer to keep records.—lIt shall be the duty of every
dealer having received any agricultural product from a producer to make
and keep a correct record and retain the same for two years, showing in
detail the following with reference to the handling and/or sale of such
agricultural products, along with such other information as the Com-
missioner may require.

(a) The name and address of the producer.

(b) The date received.

(c) The condition, grade (if officially graded) and quantity on receipt.

(d) The date of resale or transfer of the products to another.

(e) The price at which purchased and sold.

§ 8.1-722.9. Commissioner’s authority to investigate—Upon the
written complaint of any producer, the Commissioner or his duly authorized
agents shall have the authority to investigate the books and records per-
taining to such complaint of any dealer in agricultural products at any
time during business hours and shall have free access to the place at which
the business is operated.

§ 3.1-722.10. Commissioner may refuse or revoke licenses.—The
Commissioner may refuse to grant a license or may revoke any license
already granted, as the case may be, when he is satisfied as to the existence
of any of the following causes:
(a) The dealer has suffered a money judgment to be entered against
him upon which execution has been returned unsatisfied.

(b) The dealer has failed to promptly and properly account and pay
for agricultural products.

(c) The dealer has made a false or misleading statement as to market
conditions or the service rendered, if any, with the intent to defraud.

(d) The dealer has perpetrated a fraud or engaged in deceit in pro-
curing the license.

(e) The dealer has engaged in any fraudulent or deceitful practices in
his dealings with producers.

§ 3.1-722.11. Penalty.—Any person who shall violate the provisions
of this article shall be guilty of a misdemeanor and upon conviction thereof
for the first offense shall be fined not less than one hundred dollars nor
more than five hundred dollars, or be confined in jail for a period not ex-
ceeding six months, or both; and upon conviction of a second offense shall
be fined not less than five hundred dollars nor more than one thousand
dollars, or be confined in jail for a period not exceeding one year, or both,
in the discretion of the court.