SENATE BILL No. 1082

March 8, 2000, Introduced by Senator GAST and referred to the Committee on Government Operations.

A bill to amend 1913 PA 184, entitled

"An act to regulate the business of selling farm products on com-

mission, providing all commission merchants dealing in farm pro-

ducts shall be licensed, to provide against and punish fraud and

deception in the sale of farm products on commission, and defin-

ing the duties of the state dairy and food commissioner relative

thereto,"

by amending sections 1, 2, 3, 4, 5, 6, and 8 (MCL 445.331,

445.332, 445.333, 445.334, 445.335, 445.336, and 445.338).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 1. As used in this act:

2 (a) "Commission merchant" means every person, firm, associa-

3 tion, and corporation , licensed under this act to receive,

4 sell, or offer for sale on commission within this state any kind

5 of farm produce.

6 (B) "DIRECTOR" MEANS THE DIRECTOR OF THE DEPARTMENT OF

7 AGRICULTURE OR ANY DESIGNEE OF THE DIRECTOR.

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1 (C) (b) "Farm produce" means all agricultural,

2 horticultural, vegetable, and fruit products of the soil, and

3 meats, poultry, eggs, dairy products, nuts, and honey, but

4 shall DOES not include timber or floricultural products.

5 Sec. 2. (1) On and after October first 1, 1913, no A

6 person, firm, association, or corporation , whose principal

7 place of business shall be IS located in any city in this state

8 , shall NOT receive, sell, or offer for sale on commission

9 within this state any kind of farm produce , without a license

10 as provided in this article ACT.

11 (2) Every person, firm, association, and corporation in this

12 state receiving farm produce for sale on commission shall annu-

13 ally on or before October first, 1 file an application with the

14 state dairy and food commissioner DIRECTOR for a license to do

15 a commission business in farm produce. Such THE application

16 shall state the kind or kinds of produce which the applicant pro-

17 poses to handle, the full name of the person or corporation

18 applying for such license , and, if the applicant be IS a

19 firm or association, the full name of each member of the firm or

20 association, the city and street number at which the business is

21 to be conducted, and such other facts as the state dairy and

22 food commissioner DIRECTOR shall prescribe. Such THE appli-

23 cant shall further satisfy the state dairy and food

24 commissioner DIRECTOR of his or its HER character, responsi-

25 bility, and good faith in seeking to carry on a commission

26 business.

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1 (3) The state dairy and food commissioner DIRECTOR shall

2 thereupon issue to such THE applicant, on UPON payment of

3 15 dollars $15.00, in cities of less than 20,000 population,

4 and 25 dollars $25.00, in cities of more than 20,000 popula-

5 tion, a license entitling the applicant to conduct the business

6 of receiving and selling farm produce on commission at the place

7 named in the application until the tenth day of October next

8 10 OF THE following YEAR. Such A license shall not be issued

9 , however, to any applicant if, during the preceding year, a

10 complaint from any consignor of farm produce for sale on commis-

11 sion shall have HAS been filed with the state dairy and food

12 commissioner DIRECTOR against such THE applicant for any of

13 the grounds specified in section 4 hereof, and such THAT com-

14 plaint shall have HAS been established as true and just to the

15 satisfaction of the commissioner DIRECTOR after such complaint

16 shall have been investigated INVESTIGATION by the commissioner

17 DIRECTOR in the manner provided by section 3. of this act.

18 Sec. 3. The commissioner and his assistants shall have

19 power to DIRECTOR MAY investigate, upon the complaint of an

20 interested person , or of his OR HER own motion, the record of

21 any person, firm, or corporation applying for a license , or

22 any transaction involving the solicitation, receipt, transporta-

23 tion, sale, or attempted sale of farm produce on a commission

24 basis, including the making of charges in selling, carting, or

25 other services, the failure to make proper and true accounts and

26 settlements at prompt and regular intervals, the making of false

27 statements as to condition, quality, or quantity of goods

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1 received or while in storage, the making of false statements as

2 to market conditions, or the failure to make payment for goods

3 received or other alleged injurious transactions. ; and for such

4 purpose THE DIRECTOR may examine the ledgers, books of account,

5 memoranda, or other documents of any commission merchant and may

6 take testimony therein under oath ; but FOR PURPOSES OF AN

7 INVESTIGATION UNDER THIS SECTION, EXCEPT THAT information relat-

8 ing to the general business of any such person , contained in

9 such investigation and not relating to the immediate purpose

10 thereof shall be deemed of a IS CONSIDERED confidential nature

11 by the commissioner, his assistants and employes AND IS NOT

12 SUBJECT TO DISCLOSURE BY THE DIRECTOR. When a complaint is filed

13 with the commissioner DIRECTOR, he OR SHE shall attempt to

14 secure an explanation or adjustment. ; failing this IF AN

15 EXPLANATION OR ADJUSTMENT DOES NOT RESOLVE THE MATTER, within 10

16 days he OR SHE shall cause a copy thereof, together with a notice

17 of a time and place for a hearing on such complaint, to be served

18 personally , or by mail , upon such THE commission

19 merchants. If served by mail, such THE complaint and notice

20 shall be directed to such THE commission merchant at his OR HER

21 place of business and the WITH postage prepaid thereon. Such

22 service shall be made at least 7 days before the hearing. At

23 the time and place appointed for such hearing, which shall be

24 within the county where the commission merchant is licensed to do

25 business, the commissioner or his assistants DIRECTOR shall

26 hear the parties to such THE complaint, shall have power to

27 MAY administer an oath, and shall enter in the office of the

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1 state dairy and food commissioner MAKE a decision either

2 dismissing such THE complaint or specifying the MAKING A

3 FINDING OF fact which he deemed established on such AT THE

4 hearing.

5 Sec. 4. The state dairy and food commissioner DIRECTOR

6 may decline to grant a license or may revoke a license already

7 granted , where he is satisfied of the existence of the follow-

8 ing cases or either of them UNDER ANY OF THE FOLLOWING

9 CIRCUMSTANCES:

10 (A) 1. Where false FALSE charges have been imposed for

11 handling or services, or charges other than as by a schedule

12 agreed on by the parties, or other than those customary in the

13 trade. ;

14 (B) 2. Where there THERE has been a failure to account

15 promptly and properly or to make settlements with intent to

16 defraud. ;

17 (C) 3. Where there THERE have been false statements as to

18 condition, quality, or quantity of goods received or held for

19 sale on commission. ;

20 (D) 4. Where there THERE have been false or misleading

21 statements as to market condition with intent to deceive. ;

22 (E) 5. Where there THERE have been combinations to fix

23 prices below the market level. ;

24 (F) 6. Where there THERE has been a continual course of

25 dealings of such nature as to satisfy the commissioner DIRECTOR

26 of THE inability of the commission merchant to properly conduct

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1 the business , or of an intent to deceive or defraud customers.

2 ;

3 (G) 7. Where the THE commission merchant directly or

4 indirectly purchases the goods for his OR HER own account without

5 prior authority therefor, TO DO SO or without notifying the

6 consignor thereof OF THE GOODS.

7 Sec. 5. The action of the commissioner DIRECTOR in refus-

8 ing to grant a license , or in revoking a license granted

9 ISSUED under this act , shall be IS subject to review by a

10 writ of certiorari, and if LEAVE OF COURT. IF such proceedings

11 are begun; until the final determination of certiorari proceed-

12 ings and all appeals therefrom COMMENCED, the license of such

13 THE commission merchant shall be deemed IS CONSIDERED to be in

14 full force and effect , or, if such THE license shall have

15 been refused, such WAS DENIED, THE commission merchant shall

16 not be deemed IS NOT CONSIDERED to have violated the provisions

17 of this act, PROVISION prohibiting the transaction of such busi-

18 ness without a license , provided SO LONG AS the fee for such

19 THE license shall have been WAS paid.

20 Sec. 6. The dairy and food commissioner DIRECTOR shall

21 publish in pamphlet form as often as he OR SHE thinks is neces-

22 sary , a list of all the licensed commission merchants.

23 Sec. 8. If any shipper of farm produce to a commission mer-

24 chant be IS dissatisfied with any statement relative to the

25 sale of such shipment, he OR SHE may apply to the state dairy

26 and food commissioner DIRECTOR, in writing, within 60 days of

27 making such shipment, for an investigation. The state dairy and

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1 food commissioner DIRECTOR shall treat such application as a

2 complaint , and shall cause a full investigation of

3 INVESTIGATE the transaction complained of to be made either by

4 himself, or 1 of his assistants in the manner provided FOR by

5 section 5 of this act 3.

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