I D A H O S T A T E L E G I S L A T U R E
TITLE 22 AGRICULTURE AND HORTICULTURE
CHAPTER 13 - DEALERS IN FARM PRODUCE
22-1301.Definitions. As used in this act:
(a) The term "person" includes any individual, firm, association, partnership or corporation.
(b) The term "producer" means any person engaged in the business of growing or producing any farm produce.
(c) "Farm products" shall include all agricultural, horticultural, viticultural and vegetable products of the soil, poultry and poultry products, and apiary products, but shall not include timber and timber products, livestock, dairy products, field grains, dried beans, dried peas, hops and seeds.
(d) The term "consignor" includes any person who ships or delivers to any commission merchant or dealer any farm products for handling, sale, or resale.
(e) The term "commission merchant" means any person who shall receive on consignment, or solicit from the producer thereof, any farm products for sale on commission on behalf of such producer thereof for the purpose of resale, or who shall sell or offer for sale on commission any farm products, or who shall in any manner handle for the account of or as an agent of the producer thereof any farm product.
(f) The term "dealer" means any person other than a commission merchant or cash buyer, who for the purpose of resale, obtains from the producer thereof possession or control, or contracts for the future delivery of any farm products, without paying to the producer at the time of obtaining such possession or control, the full agreed price of such commodity in lawful money of the United States.
(g) The term "cash buyer" means any person other than a commission merchant or dealer who obtains from the producer thereof possession or control of any farm products by paying to the producer at the time of obtaining such possession or control the full agreed price of such commodity in lawful money of the United States, provided, that any person, as contemplated in this act, who shall buy any farm produce and shall pay for the same by his personal check, draft, or bill of exchange shall not be deemed a cash buyer but shall be deemed a dealer as defined in the foregoing subsection (f) and shall be required to furnish the bond as provided for in section 22-1304, Idaho Code.
(h) The term "broker" means any person engaged in the business of soliciting or negotiating the sale of any farm product.
(i) The term "agent" means any person who on behalf of any commission merchant, dealer or broker receives, contracts for, or solicits any farm product from a producer thereof, or who negotiates the consignment or purchase of any farm product on behalf of any commission merchant, dealer or broker.
(j) The term "director" means the director of the department of agriculture of the state of Idaho.
22-1302.Exemptions from act. This chapter does not apply to or include:
(a) Any cooperative organization, operating under and by virtue of the laws of this state, or of any other state, or the District of Columbia, or the United States, or the agents of such organizations in the performance of their duties as such except as to that portion of the activities of such organization, or agent, as involves the handling or dealing in the farm products of nonmembers of such organization.
(b) Any cash buyer.
22-1303.License required -- Application, additional bond, issuance, fees. No person shall act as a commission merchant, dealer, broker, or agent without having obtained a license as provided in this chapter. Every person, acting as a commission merchant, dealer, broker or agent as herein defined shall file an application with the director for a license to transact the business of commission merchant, dealer, broker and/or agent, and such application shall be accompanied by the license fee herein provided for each specified class of business. Separate applications shall be filed for each class of business.
Such application shall in each case state the class or classes of farm products the applicant proposes to handle, the full name of the person applying for such license, and if the applicant be 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 shall be given in the application. Such application shall further state the principal business address of the applicant in the state of Idaho and elsewhere, and the name or names of the person or persons authorized to receive and accept service of summons and legal notices of all kinds for the applicant within the state of Idaho. Such applicant shall further satisfy the director of his or its character, responsibility and good faith in seeking to carry on the business stated in the application and the director may require from the applicant the posting of an additional bond or other security in an amount prescribed by rule. The additional bond or other security is in addition to the bond required in section 22-1304, Idaho Code. Failure of the applicant to timely post the additional bond or other security constitutes grounds for refusal to grant a license under this chapter.
In addition to the general requirements applicable to all classes of applications as in this section set forth, the following requirements shall apply to the class of application noted:
(a) Commission merchants: Each application shall include a schedule of commissions and charges for services, and such designated commissions and charges shall not be changed or varied for the license period except by written contract between the parties.
(b) Agents: Each application shall include such information as the director may consider proper or necessary, and shall include the name and address of applicant, and the name and address of each commission merchant, dealer or broker represented or sought to be represented by said agent, and the written endorsement or nomination of such commission merchant, dealer or broker.
The director shall thereupon issue to such applicant a license entitling the applicant to conduct the business described in the application at the place named in the application until the 30th day of May next following, or until the same shall have been revoked for cause. The director may also issue to each agent a card or cards, which shall bear the signature of such agent and his principal, separate cards being required for each principal. Any agent shall show card or cards upon the request of any interested person.
Fraud or misrepresentation in making any application shall ipso facto work a revocation of any license granted thereunder. All indicia of the possession of a license shall be at all times the property of the state of Idaho, and each licensee shall be entitled to the possession thereof only for the duration of said license.
For filing the applications herein described, each applicant must pay a fee as follows:
(a) Commission merchants: One hundred twenty-five dollars ($125) for each year.
(b) Dealers: One hundred twenty-five dollars ($125) for each year.
(c) Brokers: One hundred twenty-five dollars ($125) for each year.
(d) Agents: Thirty-five dollars ($35.00) for each year.
Any person who shall have been licensed as a commission merchant shall, upon application, be licensed also as a dealer and as a broker as defined herein, without payment of further fees, and shall thereupon conform to the parts of this chapter regulating the business of a dealer and/or broker. Any person who has applied for and received a license as a dealer or broker in the manner and upon payment of the fee herein set forth may apply for and secure a license as a commission merchant in addition to the license issued to him as such dealer or broker, without payment of further fee and upon further complying with those parts of this chapter regulating the licensing of a commission merchant.
22-1304.Bond -- Certificate of deposit in lieu of bond. All applications for licenses to act as broker, dealer or commission merchant dealing in farm produce as each of said terms are defined in section 22-1301, Idaho Code, shall be accompanied by a good and sufficient bond in the penal sum of not less than fifty thousand dollars ($50,000), and upon a form to be approved by the attorney general of the state of Idaho, and executed by the applicant as principal and by a surety company authorized to do business in the state of Idaho as surety. Said bond shall be for the benefit of any and all consignors or sellers having any cause of action against the broker, dealer and/or commission merchant giving such bond, and arising out of a breach of contract either express or implied of such broker, dealer or commission merchant with a consignor or seller or with consignors as broker, dealer or commission merchant and consignor or consignors or for any fraud practiced by such broker, dealer or commission merchant for the violation of the rights of any person whether a consignor, seller, or otherwise. The bond herein required to be given shall be conditioned upon the applicant conducting and transacting his business honestly and without fraud of any kind or nature and will comply with the provisions of this act and of the laws of the state of Idaho. Any person injured by dishonesty, fraud and violation of the provisions of this act or for violation of his contract as such commission merchant, dealer or broker to any person and while engaged in such business shall have a right of action on said bond for his damages not exceeding the amount of said bond.
Any person required to submit a bond to the department in accordance with this chapter, may at his option give to the department a certificate of deposit payable to the director as trustee in lieu of the bond required herein. The principal amount of the certificate shall be the same as that required for a surety bond pursuant to this chapter. Accrued interest upon the certificate of deposit shall be payable to the purchaser of the certificate. The certificate shall remain on file with the department until it is released, cancelled or discharged by the director. The provisions of this chapter that apply to a bond required pursuant to this chapter apply to each certificate of deposit given in lieu of such bond.
22-1305.Requirements of dealers in paying for farm products. Every dealer must pay for farm products delivered to him or it at the time and in the manner specified in the contract with the producer, but if no time is set by such contract, or at the time of said delivery, then within thirty (30) days from the delivery or taking possession of such farm products; and a failure to pay such producer accordingly shall be deemed a violation of the provisions of this act.
22-1306.List of licensees -- Posting of licenses -- Disposition of fees. The director may publish in pamphlet form as often as he thinks necessary a list of all licensed commission merchants, dealers, brokers and agents together with all necessary rules and regulations concerning the enforcement of this chapter. Each licensed commission merchant, dealer, broker or agent shall post his license or a copy thereof in his office or salesroom in plain view of the public. All license fees collected under the provisions of this act shall be paid into the state treasury, and shall be deposited to the credit of the agricultural department inspection fund.
22-1307.Cash buyers. The business of dealing in farm products is hereby declared to be affected with a public interest, and requires the exercise of the police power of the state looking to the protection of the public morals, and the maintenance of the peace and quiet, as well as the protection of life and property; and to facilitate and promote these ends, any cash buyer engaging in business in the state of Idaho shall be and is hereby required to register with the director. He shall state his name and principal office or place of business within the state of Idaho, or elsewhere, and evidence his intention to engage in such business within the state, and thereupon the director shall issue to him a card or certificate to that effect, which shall be presented upon demand of any person concerned. A list of all such cash buyers shall be kept on record in the office of the director.
22-1308.Rules -- Enforcement of act. (1) For the purpose of implementing the provisions of this chapter, the director is authorized, in conformance with chapter 52, title 67, Idaho Code, to promulgate rules.
(2) For the purpose of enforcing the provisions of this chapter the director is authorized to receive verified complaints against any commission merchant, dealer, broker, cash buyer, or agent, or any person, assuming or attempting to act as such, and upon receipt of such verified complaint shall have full authority to make any and all necessary investigations relative to the said complaint. He shall have at all times free and unimpeded access to all buildings, yards, warehouses, storage and transportation facilities in which any produce is kept, stored, handled or transported. He shall have full authority to administer oaths and take testimony thereunder, to issue subpoenas requiring the attendance of witnesses before him, together with all books, memoranda, papers, and other documents, articles or instruments; to compel the disclosure by such witnesses of all facts known to them relative to the matters under investigation, and all parties disobeying the orders of subpoenas of said director shall be guilty of contempt and shall be certified to the district court of the state for punishment for such contempt. Copies of records, inspection certificates, certified reports and all papers on file in the office of the director shall be prima facie evidence of the matters therein contained.
22-1309.Investigations, examinations or inspections -- Complaints by consignors. The director on his own motion may, or upon the verified complaint of any interested party, shall investigate, examine or inspect any transaction involving solicitation, receipt, sale, or attempted sale of farm products by any person or persons acting or assuming to act as a commission merchant, dealer, broker or agent; failure to make proper and true account of sales and settlement thereof as in this act required; the intentional making of false statements as to condition, and quantity of any farm products received or in storage; the intentional making of false statements as to market conditions; the failure to make payment for farm products within the time required by this act; or investigate, examine or inspect any and all other injurious transactions, and in furtherance of any such investigation, examination or inspection, the director or any authorized representative, may examine that portion of the ledgers, books, accounts, memoranda and other documents, farm products, scales, measures, and other articles and things used in connection with the business of such person relating to the transactions involved.
When a consignor of farm products fails to obtain settlement satisfactory to him in any transaction after having notified the consignee, a verified complaint may be filed with the director who shall undertake to effect a settlement, and in the event that he shall fail to effect such settlement, he shall cause a copy of such complaint, together with a notice of the time and place of hearing of such complaint to be designated by him to be served personally or by mail upon such person. Such service shall be made at least ten (10) days before the hearing, which shall be held in the office of the director, or in the city or town in which is situated the business location of the licensee, or in which the transaction complained of is said to have occurred. At the time and place appointed for such hearing the director, or his agents, shall hear the parties to such complaint, and shall enter in the office of the director, at Boise, a decision either dismissing such complaint or specifying the facts established on such hearing. A copy of such decision shall be furnished to each, every and all the respective parties thereto.
22-1310.Refusal, revocation or suspension of licenses. The director may refuse to grant a license and may revoke or suspend any license, as the case may require, when he is satisfied of the existence of any of the following facts:
(a) That fraudulent charges or returns have been made by the applicant, or licensee, for the handling, sale or storage of, or for rendering of any service in connection with the handling, sale or storage of any farm products.
(b) That the applicant, or licensee, has failed or refused to render a true account of sales, or to make a settlement thereon, or to pay for farm products, received within the time and in the manner required by this chapter.
(c) That the applicant, or licensee, has made any false statement as to the condition, quality or quantity of farm products received, handled, sold or stored by him.
(d) That the applicant, or licensee, directly, or indirectly, has purchased for his, or its own account farm products received by him upon consignment without prior authority from consignor together with price fixed by consignor or without promptly notifying the consignor of such purchase. This shall not prevent any commission merchant from taking to account of sales, in order to close the day’s business, miscellaneous lots or parcels of farm products remaining unsold, if such commission merchant shall forthwith enter such transaction on his account of sales.
(e) That the applicant, or licensee, has intentionally made any false or misleading statement as to the conditions of the market for any farm products.
(f) That the applicant, or licensee, has made fictitious sales or has been guilty of collusion to defraud the producer.
(g) That a commission merchant to whom any consignment is made has reconsigned such consignment to another commission merchant for the purpose of receiving, collecting, or charging by such means more than one (1) commission for making the sale therefor for the consignor, unless by consent of such consignor.
(h) That the licensee was intentionally guilty of fraud or deception in the procurement of such license.
(i) That the licensee or applicant has failed or refused to file with the commissioner a schedule of his charges for services in connection with produce handled on account of or as an agent of another; that the applicant, or licensee, has indulged in any unfair practice.
Previous violation by the applicant or by any person connected with him or it of any of the provisions of this chapter shall be good and sufficient ground for denial of a license.
22-1311.Review of granting or refusal of license. Any action of the director with reference to the granting of, or the refusal to grant, or to renew any license, or with reference to the revocation or suspension of any license granted under the provisions of this chapter, may be reviewed by any court of competent jurisdiction, but pending final determination of any such review, in the case of the revocation or suspension of the license of any person licensed hereunder, such license shall be deemed in full force and effect pending the expiration of the license period or the final determination of such proceedings whichever is first in a point of time.
22-1312.Records to be kept by commission merchants. Every commission merchant, having received any farm products for sale as such commission merchant, shall promptly make and keep a correct record showing in detail the following with reference to the handling, sale, or storage of such farm products.
(a) The name and address of the consignor.
(b) The date received.
(c) The condition and quantity upon arrival.
(d) Date of such sale for account of consignor.
(e) The price for which sold.
(f) An itemized statement of the charges to be paid by consignor in connection with the sale.
(g) The names and addresses of the purchasers if said commission merchant has any financial interest in the business of said purchasers, or if said purchasers have any financial interest in the business of said commission merchant, directly or indirectly, as holder of the other’s corporate stock, as copartner, as vendor or borrower of money to or from the other, or otherwise.
(h) A lot number or other identifying mark for each consignment, which number or mark shall appear on all sales tags and/or other essential records needed to show what the produce actually sold for.
(i) Any claim or claims which have been or may be filed by the commission merchant against any person for overcharges or for damages resulting from the injury or deterioration of such farm products by the act, neglect or failure of such person and such records shall be open to the inspection of the director and the consignor of farm products for whom such claim or claims are made.
22-1313.Report of sales by commission merchants -- Remittances to consignor -- Certificate of department. When requested by his consignor, a commission merchant shall before the close of the next business day following the sale of any farm products consigned to him transmit or deliver to the owner or consignor of the farm products a true written report of such sale, showing the amount sold, and the selling price. Remittance in full of the amount realized from such sales, including all collections, overcharges and damages, less the agreed commission and other charges, together with a complete account of sales, shall be made to the consignor within ten (10) days after receipt of the moneys by the commission merchant, unless otherwise agreed in writing. The account of sales must contain an itemized statement to the producer which shall show the charge per package for packing and selling any agricultural products. The statement must show the time and place where the car was sold, the name of the buyer, the buyer’s address, the gross sum which was paid for each shipment, and the expenses in handling same.
Every commission merchant shall retain a copy of all records covering each transaction, for a period of one (1) year from the date thereof, which copy shall at all times be available for, and open to, the inspection of the director and the consignor or authorized representative of either. These records shall be subject to disclosure according to chapter 3, title 9, Idaho Code. In the event of any dispute or disagreement between a consignor and a commission merchant arising at the time of delivery as to condition, quality, grade, pack, quantity, or weight of any lot, shipment or consignment of farm products, the department shall furnish upon the payment of a reasonable fee therefor by the requesting party a certificate establishing the condition, quality, grade, pack, quantity, or weight of such lot, shipment or consignment. Such certificate shall be prima facie evidence in all courts of this state as to the recitals thereof. The burden of proof shall be upon the commission merchant to prove the correctness of his accounting as to any transaction which may be questioned.
22-1314.Certain sales prima facie fraudulent. Any sale of farm products made by a commission merchant for less than the current market price to any person with whom he has any financial connection, directly or indirectly as owner of its corporate stock, as copartner, or otherwise, or any sale out of which said commission merchant receives, directly or indirectly, any portion of the purchase price, other than the commission allowed in section 22-1303, except by the consent of the owner thereof, shall be prima facie evidence of fraud within the meaning of this chapter.
22-1315.Violations and penalties -- Criminal -- Civil -- Venue of actions and prosecutions. (1) Except as otherwise provided in this chapter any person is guilty of a misdemeanor and is punishable by a fine of not more than one thousand dollars ($1,000), or by imprisonment in the county jail for not more than one (1) year or by both who assumes or attempts to act as a commission merchant, dealer, broker or agent without a license, or who, being a commission merchant, dealer, broker or agent, violates any of the provisions of this chapter, or who being a commission merchant:
(a) Imposes false charges for handling or services in connection with farm products.
(b) Fails to account promptly, correctly, fully and properly and to make settlement therefor as herein provided.
(c) Intentionally makes false or misleading statement or statements as to market conditions.
(d) Makes fictitious sales or is guilty of collusion to defraud the producer.
(e) Directly or indirectly purchases for his own account, goods received by him upon consignment without prior authority from the consignor, or fails promptly to notify the consignor of such purchases, if any, on his own account. This clause does not prevent any commission merchant from taking to account of sales, in order to close the day’s business, miscellaneous lots or parcels of farm products remaining unsold, if such commission merchant forthwith enters such transaction on his account of sales.
(f) Intentionally makes false statement or statements as to grade, condition, markings, quality or quantity of goods shipped or packed in any manner.
(g) Fails to comply in every respect herewith.
(2) Failure to comply with the provisions of this chapter, or rules promulgated hereunder, by any person shall constitute a violation. A person in violation of the provisions of this chapter, or rules promulgated hereunder, may be assessed a civil penalty by the director, or a duly authorized agent, not to exceed ten thousand dollars ($10,000) for each offense and be liable for reasonable attorney’s fees and costs.
(a) Assessment of a civil penalty as provided herein may be made in conjunction with any other department administrative action.
(b) No civil penalty may be imposed unless the person charged was given notice and opportunity for a hearing pursuant to the Idaho administrative procedure act, chapter 52, title 67, Idaho Code.
(c) If the department is unable to collect the civil penalty, or if any person fails to pay all or a set portion of a civil penalty as determined by the department, the department may recover such amount by action in the appropriate district court.
(d) Any person against whom the department has assessed a civil penalty under this section may, within thirty (30) days of the final action making assessment, appeal the assessment to the district court of the county in which the violation is alleged by the department to have occurred. Moneys collected for violations shall be deposited in the state treasury and credited to the general fund.
(3) Civil suits and criminal prosecutions arising by virtue of any of the provisions of this chapter may be commenced and tried in either the county where the products were received by the commission merchant, or within the county in which the principal place of business of such commission merchant is located, or within the county in which the violation of this chapter occurred.
22-1316.Drawing checks insufficiently covered a felony. Any person engaged in business as a dealer or commission merchant, or agent, as defined in this chapter, who with intent to defraud shall make or draw or utter or deliver any check, draft or order for the payment of money upon any bank or other depository, in payment to the producer of the purchase price of any farm product or any part thereof upon obtaining possession or control thereof, when at the time of such making, drawing, uttering or delivery the maker or drawer has not sufficient funds in or credit with such bank or other depository for the payment of such check, draft or order in full upon its presentation, shall be guilty of a felony. The making, drawing, uttering or delivering of such check, draft or order as aforesaid shall be prima facie evidence of intent to defraud. The word "credit" as used herein shall be construed to mean an arrangement or understanding with the bank or depository for the payment of such check, draft or order.
22-1317.Separability. If any section, provisions or clause of this act shall be declared invalid or unconstitutional by a court of competent jurisdiction, it shall not affect the validity of the remainder of this act, but the act shall be construed as though that part were not incorporated therein.
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