NORTH CAROLINA GENERAL ASSEMBLY
1971 SESSION
CHAPTER 1064
SENATE BILL 581
AN ACT AMENDING ARTICLE 44 OF CHAPTER 106 RELATING TO UNFAIR PRACTICES OF HANDLERS OF FARM PRODUCTS.
The General Assembly of North Carolina enacts:
Section 1. G.S. 106-496 is rewritten to read as follows:
"§ 106-496. The Board of Agriculture is hereby authorized to make such rules and regulations as it deems necessary to protect producers of fruits and vegetables from loss caused by financial irresponsibility and unfair, harmful or unethical trade practices of handlers who incur financial liability for the purchase or production of fruits and vegetables. A 'handler', as used herein, is a person, firm, corporation or other legal entity or his agent or employee who enters into a written contract for the purchase from or production by a producer of fruits and vegetables."
Sec. 2. G.S. 106-497 is rewritten as follows:
"§ 106-497. A handler of fruits and vegetables shall not enter into a written contract with a producer until he obtains a written permit from the Commissioner of Agriculture. The Board of Agriculture may prescribe by regulation the form of the application for a permit, the information to be furnished to the Commissioner by the applicant for a permit and the date for filing the application. A permit shall not be issued until the applicant files on or before the date set by the Board a written request with the Commissioner and files with the request two copies of the applicant's proposed contract. A penalty of twenty-five dollars ($25.00) shall be paid by the applicant if the application is filed after the date established by the Board and no permit shall be issued until such penalty is paid. Any penalties collected by the Commissioner shall be used to help defray the costs of administering Article 44 of Chapter 106.
This Article shall not apply to transactions by a handler with a producer on a cash basis. 'Cash' as used herein shall include bank bills, checks drawn on banks and bank notes."
Sec. 3. G.S. 106-498 is rewritten to read as follows:
"§ 106-498. No permit shall be issued to a handler until such handler has furnished the Commissioner of Agriculture a bond satisfactory to the Commissioner in an amount of not less than ten thousand dollars ($10,000). The Commissioner may require a new bond or he may require the amount of any bond to be increased if he finds it necessary for the protection of the producer. Such bond shall be payable to the State and shall be conditioned upon the fulfilling of all financial obligations incurred by the handler with all producers with whom the handler contracts. Any producer alleging any injury by the fraud, deceit, wilful injury or failure to comply with the terms of any written contract by a handler may bring suit on the bond against the principal and his surety in any court of competent jurisdiction and may recover the damages found to be caused by such acts complained of."
Sec. 4. G.S. 106-499 is amended by rewriting the first sentence thereof as follows:
"All contracts filed with the Commissioner by an applicant shall be approved by the Commissioner before a permit is issued."
Sec. 5. G.S. 106-500(1) is amended by striking the words "farm products" in lines 1, 2 and 5 and substituting in lieu thereof the words "fruits and vegetables".
Sec. 6. G.S. 106-500(4). This act will not apply to peanuts and corn grown under contract for seed purposes.
Sec. 7. This act shall be effective on September 1, 1971.
In the General Assembly read three times and ratified, this the 21st day of July, 1971.