Administrative Code

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Virginia Administrative Code
Title 2. Agriculture
Agency 15. State Milk Commission
Chapter 20. Regulations for the Control and Supervision of Virginia's Milk Industry
1/27/2020

2VAC15-20-60. Classification and Requirements of Distributor Licenses.

A. A distributor must have obtained the applicable license.

B. Applicants for licenses shall submit applications in accordance with the approving authority's requirements. Applications must be approved before applicants can handle or sell milk. An applicant may receive temporary license from the administrator to operate as a licensed distributor provided the following conditions are met. The applicant must submit a written request to the administrator stating:

1. A request for temporary license be granted until the agency receives and processes a properly completed application.

2. The reasons for the need for license.

3. An agreement to abide by all laws and regulations governing the sale of milk in Virginia.

4. An agreement to properly account for receipts and utilization of all fluid milk and cream in Virginia and pay appropriate assessments.

C. Applications for license shall be reviewed and investigated for accuracy by the agency. The administrator shall hold an informal conference with the applicant and any interested parties for the purpose of determining the accuracy of the information submitted and to clarify any issues involving the application for license. These conferences shall be held in a manner prescribed by the administrator.

D. The administrator shall review all pertinent information regarding applications for distributor license with the approving authority for their approval.

E. Licenses issued to distributors are classified as follows:

1. Processing general distributor;

2. Distributor;

3. Producer general distributor; and

4. Retail distributor.

Retail distributor licenses are classified as those granted to all other persons engaged in the business of a "distributor." All such persons shall be considered to be licensed by the approving authority until this license is suspended or revoked; however, no formal certificate of license is required or will be issued unless an application for such license is filed with the approving authority.

F. The approving authority may decline to grant a license and may suspend or revoke a license after at least 10 days' notice and a hearing for any of the following reasons:

1. The applicant or licensee is not qualified to properly conduct the business.

2. The applicant or licensee has made a false statement or inaccurate report of a material fact to the approving authority.

3. The applicant or licensee is insolvent, has made a general assignment for the benefit of creditors or has a money judgment secured against him upon which execution has been returned wholly or partly unsatisfied.

4. The applicant or licensee has violated any provision or provisions of this chapter.

5. The purpose of the application for any type of license is to circumvent any established prices promulgated by the approving authority.

6. The applicant for a processing general distributor license or a licensed processing general distributor does not have facilities adequate to handle assigned milk from licensed producers.

7. The licensee has rejected assigned milk without reasonable cause.

8. The licensee has failed to account for or make payment for assigned milk.

9. The licensee has failed to keep records or furnish information required.

10. Any requisite health permit has been suspended, terminated or revoked.

11. The licensee has ceased to operate.

12. The licensee's responsible and authorized representatives refuse to appear and testify as to their knowledge of the operations of the licensee.

G. Licenses issued to distributors are not transferable and shall remain in effect until surrendered, suspended or revoked by the approving authority.

H. Processing general distributor and producer general distributor licensees may package and sell fluid milk only under those brands or trade names as filed with the agency. A processing general distributor, producer general distributor or distributor may market, sell or distribute fluid milk products purchased for resale only under those brands as filed with the agency. A licensee shall provide written notification to the agency not less than 15 days prior to the introduction or discontinuance of a brand or trade name.

Statutory Authority

§ 3.2-3204 of the Code of Virginia.

Historical Notes

Derived from VR475-02-02 § 6, eff. July 1, 1974; March 1, 1975; October 1, 1975; March 1, 1976; April 1, 1977; July 1, 1977; September 2, 1978; March 1, 1979; May 1, 1980; January 1, 1981; Aug 1, 1981; May 1, 1982; December 1, 1982; September 1, 1983; September 1, 1984; October 15, 1984; August 1, 1985; May 1, 1987; July 1, 1987; March 1, 1988; September 1, 1988; March 1, 1989; July 1, 1989, February 1, 1990; March 1, 1990; June 1, 1990; September 1, 1990; May 1, 1991; August 1, 1991; November 1, 1991; December 1, 1991; amended, Volume 13, Issue 26, eff. October 15, 1997.

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