TITLE 47 AGRICULTURAL MARKETING AND WAREHOUSING … · 576.726 AGRICULTURAL MARKETING AND...

TITLE 47

AGRICULTURAL MARKETING AND WAREHOUSING

Chapter 576. Agricultural Marketing Generally577. Oregon Beef Council578. Oregon Wheat Commission583. Milk Marketing, Production and Distribution585. Produce Dealers586. Warehouses; Grain and Commodity Inspection587. Storage of Grain as Basis of Farm Credit

Chapter 576

2011 EDITION

Agricultural Marketing Generally

MARKET DEVELOPMENT AND RESEARCH

576.006 Definitions for ORS 576.006 to 576.022576.009 Agricultural Development Division576.013 Purpose of market development and com-

modity development services; powers ofdepartment; limitations

576.019 Discrimination against any product ordealer prohibited

576.022 Authority and functions of Oregon StateUniversity unaffected; department mayseek information from university

576.024 Department authorized to inspect recordsand businesses for economic study pur-poses

576.035 Market news service in Klamath Basin,central Oregon and Malheur areas

COMMODITY COMMISSIONS

(Generally)576.051 Definitions for ORS 576.051 to 576.455576.053 Short title576.054 Legislative findings576.062 Establishment of commodity commissions576.066 Department oversight of commodity com-

missions; rules

(Organization)576.206 Appointment of temporary members;

rules; appointment of commissioners;commissioner qualifications; compensa-tion

576.215 Ex officio members of commission576.225 Qualifications of members576.245 Office vacant when member ceases to be

qualified

576.255 Removal of members576.265 Travel and other expenses of members;

per diem; rules576.275 Meeting place of commission576.285 Commission organization; meetings576.304 Authority of commodity commissions;

rules576.306 Independent contractors performing ser-

vices for commission; rentals and acquisi-tions; rules

576.307 Provision of state services to commission576.309 Commission furnishing services, facilities

and materials to other state agencies576.311 Commission exempt from certain financial

administration laws576.315 Grants, donations and gifts576.317 Intellectual property; rules576.320 Commission employees not subject to

state personnel compensation plans; com-mission not subject to office space regu-lation; fees for administrative services;rules

(Assessment and Budgeting)576.325 Levy and collection of assessments; com-

mission rules regulating sale activities;maximum assessment rates

576.327 Exemptions from assessment; rules576.335 Report by person responsible for collect-

ing assessment576.345 Producer to make reports of and pay as-

sessment moneys on certain sales576.351 Records of person required to pay or col-

lect assessment; inspections and audits576.355 Penalty for delaying transmittal of funds

Title 47 (2011 Edition)

AGRICULTURAL MARKETING AND WAREHOUSING

576.365 Penalty for failure to relinquish assess-ment moneys to commission; civil actionor other remedies

576.370 Disputes over assessment amounts; rulesgoverning disputes and establishing as-sessment periods

576.372 Authority of Oregon Alfalfa Seed Com-mission to adopt rules authorizing re-funds; effect

576.375 Payment of commission moneys to au-thorized agent; deposits and withdrawals;investments

576.385 Bond or letter of credit required of personauthorized to receive or disburse commis-sion moneys

576.392 Cancellation of uncollectible assessment;subsequent collection

576.395 Books, records and accounts of commis-sion

576.410 “Fiscal year” defined

576.416 Preparation of commission budget; annualfinancial statement

576.420 Expenditures prohibited unless budgetprocedure complied with

576.440 Limitation on expenditures

576.445 Unforeseen expenditures

576.455 Moneys of abolished commission

576.595 Sales are in commercial channels

MEDIATION OF MARKETING DISPUTES

576.610 Definitions for ORS 576.610 to 576.650

576.620 Department to perform mediation ser-vices; employees; qualifications

576.630 Request for mediation; meeting with par-ties

576.640 Rules

576.650 Cooperation by state agencies

PAYMENT FOR AGRICULTURAL COMMODITIES

(Generally)576.700 Definitions for ORS 576.700 to 576.710576.705 Processors required to pay for commod-

ities within 30 days after delivery; intereston late payments

576.710 Applicability of ORS 576.705

(Seeds)576.715 Definitions for ORS 576.715 to 576.744576.718 Seed production contract terms576.721 Payment due date provisions in contracts

authenticated prior to planting576.726 Title; bailments; liens576.729 Seed purchase contract terms576.732 Contract modification; damages for

breach576.735 Seed not meeting quality standards576.738 Seed dealer failure to timely make pay-

ment; fee576.741 Seed dealer financial assurance; rules; li-

cense refusal; agents576.744 Rules; mediation services576.747 Reporting adoption of rules regarding

dealer financial assurance

OREGON WINE BOARD; WINE CELLAR576.750 Definitions for ORS 576.750 to 576.775576.751 Legislative findings576.753 Oregon Wine Board576.756 Board purpose and duties576.759 Board powers576.763 State wine cellar; sources; uses576.766 Rules; board employees576.768 Strategic plan; budget; rules576.771 Payment of tax; delayed payment; re-

cords; inspections and audits576.775 Disposition of moneys; research and pro-

motion

PENALTIES576.991 Penalties


AGRICULTURAL MARKETING GENERALLY 576.013

576.005 [1953 c.489 §1; 1955 c.732 §1; renumbered576.051]

MARKET DEVELOPMENT AND RESEARCH

576.006 Definitions for ORS 576.006 to576.022. As used in ORS 576.006 to 576.022:

(1) “Department” means the State De-partment of Agriculture of the State of Ore-gon.

(2) “Farm products” means all agricul-tural, floricultural, vegetable and fruit pro-ducts of the soil, livestock and meats,poultry, eggs, dairy products, and any and allproducts which have their situs of productionon the farm.

(3) “Food products” means any and allproducts either in a natural or processedstate used by human or animal as food. [1955c.572 §1]

576.009 Agricultural Development Di-vision. There is established within the StateDepartment of Agriculture an AgriculturalDevelopment Division which shall have thepowers and duties conferred by ORS 576.006to 576.022, and as specified by the Directorof Agriculture. The Agricultural Develop-ment Division shall consist of a market de-velopment service and a commoditydevelopment service. [1955 c.572 §2; 1983 c.740 §221;1985 c.623 §3]

576.010 [Repealed by 1953 c.119 §2]

576.013 Purpose of market develop-ment and commodity development ser-vices; powers of department; limitations.(1) The purpose of the market developmentservice of the Agricultural Development Di-vision shall be to assist in the establishmentand development of new markets and tomaintain or expand existing domestic andforeign markets for farm and food commod-ities produced or processed in this state. Thepurpose of the commodity development ser-vice of the Agricultural Development Divi-sion shall be to assist in the development andimprovement of farm and food commoditiesand their values and uses.

(2) In furthering the purpose of the mar-ket development service, the State Depart-ment of Agriculture may:

(a) Collect and disseminate informationrelating to the availability, quality and usesof farm and food commodities produced orprocessed in this state, including partic-ipation in demonstrations, fairs and exhibits;

(b) Serve as an intermediary betweenprospective purchasers and sellers of farmand food commodities produced or processedin this state as to source of supply and de-mand;

(c) After notice to and with the approvalof the Governor, represent the state in mat-

ters of legislation or rulemaking affectingthe establishment, development, maintenanceor expansion of markets for farm and foodcommodities produced or processed in thisstate;

(d) Cooperate with and aid producers,processors, distributors and prospective pur-chasers of farm and food commodities in es-tablishing, or improving and maintaining, anefficient system of production, processing,distribution and marketing of farm and foodcommodities;

(e) Investigate delays, embargoes, condi-tions and practices, charges and rates in themarketing, transportation and handling offarm and food commodities produced orprocessed in this state, and when an investi-gation discloses a probable violation of stateor federal law, make recommendations to theproper state or federal authorities for appro-priate action;

(f) Engage in negotiations with commonand contract carriers and initiate or partic-ipate in the prosecution of proceedings be-fore agencies engaged in freight rateregulation within or without this state inmatters relating to the establishment of newfreight rates, the modification of existingfreight rates or to unjust, unreasonable ordiscriminatory rates or practices affectingthe cost of transportation, production orprocessing of farm or food commoditiesproduced or processed in this state;

(g) Investigate the advisability and needfor establishment of terminal, regional, as-sembly, dock and other distributing facilitiesfor the delivery, sale and distribution of farmand food commodities at or near the point ofpurchase or use, and advise and cooperatewith public or private agencies or organiza-tions in promoting the establishment, con-struction or acquisition of the facilities forpublic use and make recommendations as totheir operations;

(h) Accept grants from public or privateagencies, organizations or persons, with anygrant treated as a trust fund, separate anddistinct from the General Fund, within themeaning of ORS chapters 291 and 293;

(i) Consult with other states in develop-ment of joint programs for the establishment,development, maintenance or expansion ofdomestic and foreign markets on a mutualbasis;

(j) Cooperate with the Oregon BusinessDevelopment Department of this state in for-eign and domestic marketing matters ofcommon interest; and

(k) Enter into agreements with publicand private entities in new or existing mar-kets to assist the establishment, develop-ment, maintenance or expansion of those


576.019 AGRICULTURAL MARKETING AND WAREHOUSING

markets and provide for sampling, testing,certification or other procedures or processesto facilitate the movement of, or optimize thevalue of, farm and food products.

(3) In furthering the purpose of the com-modity development service, the departmentmay:

(a) Collect and disseminate informationrelating to new or alternate crop production,processing and marketing feasibilities to pro-ducers of farm and food commodities;

(b) Assist the commodity commissions incarrying out mutual or joint scientific re-search efforts and mutual or joint develop-ment of the commercial values and new andadditional uses of their commodities; and

(c) Accept grants from public or privateagencies, organizations or persons, with anygrant treated as a trust fund, separate anddistinct from the General Fund, within themeaning of ORS chapters 291 and 293.

(4) Nothing in ORS 576.006 to 576.022shall authorize, or modify the limitations onauthority under ORS 561.170 for, the Agri-cultural Development Division, or its staff to:

(a) Engage in any commercial transactioninvolving farm or food commodities as pur-chaser, seller, broker or dealer; or

(b) Acquire or own any farm or foodcommodities or real property associated withthem. [1955 c.572 §3; 1985 c.623 §4; 1989 c.966 §64; 2009c.188 §1]

576.015 [1953 c.489 §37; renumbered 576.053]

576.017 [1955 c.572 §4; repealed by 1973 c.794 §34]

576.018 [1985 c.623 §2; repealed by 1993 c.742 §60]

576.019 Discrimination against anyproduct or dealer prohibited. In the per-formance of duties, under ORS 576.006 to576.022, no official or employee of the StateDepartment of Agriculture shall discriminateagainst any farm or food product, or againstany producer, processor, distributor or dealerof any such products. [1955 c.572 §5]

576.020 [Repealed by 1953 c.119 §2]

576.022 Authority and functions ofOregon State University unaffected; de-partment may seek information fromuniversity. Nothing in ORS 576.006 to576.022 shall be construed to limit, alter, re-peal or duplicate the existing authority andfunctions of Oregon State University enu-merated in ORS 561.362 and full effect shallbe given to the provisions of ORS 561.364and 561.366. The State Department of Agri-culture may call upon Oregon State Univer-sity for such technical and statisticalinformation as it may need and as the uni-versity may be able to provide. [1955 c.572 §7]

576.024 Department authorized to in-spect records and businesses for eco-nomic study purposes. (1) It is necessaryfor the economy of this state, the livestockindustry and the welfare of the consumingpublic that the department obtain statisticalinformation for economic studies of the live-stock industry including the volume of pro-duction of livestock in this state; thechannels into which such livestock is mar-keted; the total consumption of meat in thisstate; the types and quantities consumed andthe sources thereof; and such other informa-tion as is pertinent to reveal additional po-tential markets for livestock produced in thisstate.

(2) In order to carry out and maintainthis continuing study, the department is au-thorized during business hours to inspect therecords of places or businesses which handle,store or sell meat animals, or meat as de-fined in ORS 619.010 to 619.071, 619.370 and619.993.

(3) The department, after public hearingunder ORS chapter 183, may require periodicreporting from the places or businesses de-scribed in this section and require the fur-nishing to the department of the data orinformation which may be needed in contin-uing the comprehensive study as authorizedin this section. [1967 c.388 §2; 1973 c.174 §19; 1973c.794 §29; 1983 c.740 §222]

576.030 [Repealed by 1953 c.119 §2]

576.035 Market news service in Klam-ath Basin, central Oregon and Malheurareas. The State Board of Higher Education,acting through the Federal Cooperative Ex-tension Service of Oregon State University,shall cooperate with the Agriculture Mar-keting Service of the United States Depart-ment of Agriculture and with the appropriateoffices of adjoining states to establish andmaintain a food product market news servicein the Klamath Basin and provide such ser-vices for the central Oregon and Malheurareas. [1961 c.560 §1]

576.040 [Repealed by 1953 c.119 §2]576.041 [1967 c.265 §1; repealed by 1971 c.28 §1]576.043 [1967 c.265 §2; repealed by 1971 c.28 §1]576.044 [1977 c.198 §6; 1985 c.623 §5; 2003 c.604

§§28,29; renumbered 576.066 in 2003]576.045 [1967 c.265 §3; repealed by 1971 c.28 §1]576.047 [1967 c.265 §4; repealed by 1971 c.28 §1]576.049 [1967 c.265 §5; repealed by 1971 c.28 §1]576.050 [Repealed by 1953 c.119 §2]

COMMODITY COMMISSIONS(Generally)

576.051 Definitions for ORS 576.051 to576.455. As used in ORS 576.051 to 576.455,unless the context requires otherwise:



(1) “Commercial channels” means thesale of the commodity for which a commoditycommission is established for use as food,industrial, agricultural or chemurgic use,when sold to any commercial buyer or to anyperson who resells the commodity or anyproduct derived therefrom.

(2) “Commission” means a commoditycommission established under ORS 576.051 to576.455.

(3) “Commodity” means any distinctivetype of agricultural, horticultural, viticul-tural, vegetable, animal or seafood product,or any class, variety or utilization thereof, ina natural or processed state, including beesand honey but not including timber or timberproducts. The Director of Agriculture maydetermine what types or subtypes of com-modity may be classed together as a com-modity for the purposes of ORS 576.051 to576.455.

(4) “Department” means the State De-partment of Agriculture.

(5) “Director” means the Director of Ag-riculture.

(6) “First purchaser” means any personwho buys the commodity for which a com-mission is established from the producer inthe first instance, or handler who receivedthe commodity in the first instance from theproducer for resale or processing.

(7) “Handler” means any producer,processor, distributor or other person en-gaged in the handling or marketing of ordealing in the commodity for which a com-mission is established, whether as an owner,agent, employee, broker or otherwise.

(8) “Producer” means a person that en-gages in, or has engaged in, the business ofgrowing, producing or procuring within thisstate, or in the rivers or offshore waters ofthis state except the Columbia River, a com-modity for market or for delivery or transferto others owning or holding title to thecommodity. “Producer” includes a land-owner, landlord, tenant, sharecropper, boatskipper or other person that participates inthe growing, producing or procuring of acommodity and receives a share of the com-modity.

(9) “Regional commission” means a com-mission that functions only within a specifiedarea of this state consisting of one or moreentire counties. [Formerly 576.005; 1957 c.447 §1;1959 c.596 §1; 1977 c.198 §7; 2003 c.604 §31]

576.053 Short title. ORS 576.051 to576.455 and 576.991 (2) may be known andcited as the Commodity Commission Act.[Formerly 576.015; 1983 c.740 §223; 2011 c.597 §235]

576.054 Legislative findings. (1) TheLegislative Assembly finds that:

(a) Commodity industries are vital ele-ments of the state economy. Commodity in-dustries:

(A) Are sources of substantial employ-ment for the citizens of this state;

(B) Produce needed tax revenues for thesupport of state and local government;

(C) Encourage responsible stewardship ofvaluable land and marine resources; and

(D) Produce substantial quantities ofnecessary food for the state, nation andworld.

(b) Commodity commissions support com-modity industries and enhance and preservethe economic interests of the state.

(c) Commodity commissions function inthe same manner as a broad range of otherprograms established by the Legislative As-sembly that are funded by the public throughfees assessed according to the relationshipof the fee payer to a particular program.

(d) Commodity commissions are not es-tablished to benefit individual persons en-gaged in commodity industries, but areintended to improve the overall conditionsfor the particular commodity for which acommission is established and thereby bene-fit the overall economy of the state and allthe citizens of the state.

(e) Mandated cooperative efforts engagedin by commodity commissions are a proven,effective method to avoid economic wasteand maintain stable agricultural markets.

(f) It is in the public interest that:(A) Support for Oregon’s commodity in-

dustries be clearly expressed;(B) Adequate protection be given to com-

modities and commodity uses, activities andoperations; and

(C) Each commodity be promoted individ-ually and as part of a stabilized comprehen-sive industry by increasing consumption ofcommodities in this state and the UnitedStates and internationally.

(2) It is the intent of the Legislative As-sembly that commodity commissions do thefollowing for the purpose of serving com-modity industries and the citizens of thisstate:

(a) Participate in the formulation andimplementation of public policy through ex-pressive activities.

(b) Reflect a continuing commitment bythe state to commodity industries that areintegral to the economy of this state.

(c) Represent a policy of support for per-sons engaged in commodity industries and



for their critical role in the economy of thisstate, especially the economy of rural areas.

(d) Provide benefits to entire commodityindustries and all the citizens of this state.

(e) Enhance the image of Oregon com-modities for the purpose of increasing theoverall demand for those commodities. Toachieve that purpose, the Legislative Assem-bly intends that commodity commissions op-erate primarily to create a more receptiveenvironment for commodities and for the in-dividual efforts of persons engaged in com-modity industries and thereby complementindividual, targeted and specific activities.

(f) Use mandatory cooperative efforts tocomplement state, federal and internationallaws and programs.

(g) Protect the citizens of this state byeducating them regarding the quality, careand methods used in the production of Ore-gon commodities.

(h) Increase knowledge regarding thehealthful qualities and dietetic value of Ore-gon commodities.

(i) Support and engage in research pro-grams and activities that benefit the plant-ing, production, harvesting, handling,processing, marketing and use of Oregoncommodities. [2003 c.604 §2]

576.055 [1953 c.489 §2; subsection (2) formerly partof 576.295; 1957 c.447 §2; 1959 c.596 §2; 1965 c.515 §1; re-pealed by 2003 c.604 §109]

576.060 [Repealed by 1953 c.119 §2]

576.062 Establishment of commoditycommissions. The following commoditycommissions are established as state com-missions:

(1) The Oregon Dairy Products Commis-sion.

(2) The Oregon Hazelnut Commission.(3) The Oregon Dungeness Crab Commis-

sion.(4) The Oregon Salmon Commission.(5) The Oregon Albacore Commission.(6) The Oregon Sheep Commission.(7) The Oregon Potato Commission.(8) The Oregon Alfalfa Seed Commission.(9) The Oregon Blueberry Commission.(10) The Oregon Clover Seed Commis-

sion.(11) The Oregon Fine Fescue Commis-

sion.(12) The Oregon Hop Commission.(13) The Oregon Mint Commission.(14) The Oregon Orchardgrass Seed Pro-

ducers Commission.(15) The Oregon Processed Vegetable

Commission.

(16) The Oregon Raspberry andBlackberry Commission.

(17) The Oregon Ryegrass Growers SeedCommission.

(18) The Oregon Strawberry Commission.(19) The Oregon Sweet Cherry Commis-

sion.(20) The Oregon Tall Fescue Commission.(21) The Oregon Trawl Commission. [2003

c.604 §15; 2003 c.749 §18; 2007 c.132 §3; 2007 c.146 §3; 2009c.367 §3; 2011 c.181 §1]

576.065 [1953 c.489 §3; 1957 c.447 §3; 1959 c.596 §3;repealed by 2003 c.604 §109]

576.066 Department oversight of com-modity commissions; rules. (1) The StateDepartment of Agriculture shall:

(a) Monitor the practices or methodsused or proposed for use by any commoditycommission in carrying out the goals andneeds disclosed by the budget of the commis-sion;

(b) Promote cooperation among the se-veral commissions, the Oregon Beef Counciland the Oregon Wheat Commission and as-sist in the interchange of information andexperience among those entities;

(c) Carry out the assigned organizationalprocedures under ORS 576.051 to 576.455, in-cluding the appointment and removal ofmembers of the commission;

(d) Review budgets submitted to the Di-rector of Agriculture by a commodity com-mission under ORS 576.416; and

(e) Adopt rules to carry out the pro-visions of ORS 576.051 to 576.455.

(2) The department shall review, and mayapprove or disapprove, plans and projects re-commended by a commodity commission forcommodity promotion, advertising and re-search and for the dissemination of consumerand commodity industry information. In re-viewing plans and projects recommended bya commodity commission, the departmentshall consider whether the plan or projectinformation is:

(a) Factual;(b) Not disparaging to other commodities;

and(c) Consistent with the purposes of ORS

576.051 to 576.455. [Formerly 576.044; 2007 c.55 §1]576.070 [Repealed by 1953 c.119 §2]576.075 [1953 c.489 §4; 1957 c.447 §4; 1959 c.596 §4;

repealed by 2003 c.604 §109]576.078 [Formerly part of 576.085; 1959 c.596 §5; re-

pealed by 2003 c.604 §109]576.080 [Repealed by 1953 c.119 §2]576.085 [1953 c.489 §5; 1957 c.447 §5; part renum-

bered 576.078; 1959 c.596 §6; repealed by 2003 c.604 §109]576.090 [Repealed by 1953 c.119 §2]576.091 [1959 c.596 §72; repealed by 2003 c.604 §109]



576.095 [1953 c.489 §6; 1957 c.447 §6; 1959 c.596 §7;repealed by 2003 c.604 §109]

576.100 [Repealed by 1953 c.119 §2]576.105 [1953 c.489 §7; repealed by 2003 c.604 §109]576.110 [Repealed by 1953 c.119 §2]576.115 [1953 c.489 §8; 1957 c.447 §7; repealed by 2003

c.604 §109]576.120 [Repealed by 1953 c.119 §2]576.125 [1953 c.489 §9; 1955 c.732 §2; 1957 c.447 §8;

repealed by 2003 c.604 §109]576.130 [Repealed by 1953 c.119 §2]576.135 [1953 c.489 §34; 1983 c.438 §1; repealed by

2003 c.604 §109]576.140 [Repealed by 1953 c.119 §2]576.145 [1953 c.489 §35; repealed by 2003 c.604 §109]576.150 [Repealed by 1953 c.119 §2]576.155 [1977 c.526 §2; repealed by 2003 c.604 §109]576.160 [Repealed by 1953 c.119 §2]576.165 [1983 c.688 §2; 1989 c.185 §1; repealed by 2003

c.604 §109]576.170 [Repealed by 1953 c.119 §2]576.171 [1999 c.672 §4; 2001 c.504 §3; repealed by 2003

c.604 §109]576.175 [1989 c.748 §2; 1991 c.894 §1; 1999 c.178 §1;

repealed by 2003 c.604 §109]576.180 [Repealed by 1953 c.119 §2]576.190 [Repealed by 1953 c.119 §2]576.200 [Repealed by 1953 c.119 §2]

(Organization)576.205 [1953 c.489 §11; 1957 c.447 §9; 1959 c.596 §8;

1977 c.198 §8; repealed by 2003 c.604 §3 (576.206 enactedin lieu of 576.205)]

576.206 Appointment of temporarymembers; rules; appointment of commis-sioners; commissioner qualifications;compensation. (1) Upon the establishmentof a commodity commission, the Director ofAgriculture shall appoint five temporarymembers to the commission. In appointingthe temporary members, the director shallgive consideration to any recommendationsby other commodity commissions, commoditygrowers and commodity grower associations.A majority of the temporary members mustbe producers of the commodity that is thesubject of the commission and at least onemember must be a handler of the commodity.

(2) The temporary members shall adoptrules for the commission in accordance withORS chapter 183, including but not limitedto rules establishing the number and ge-ographic representation of the commissionersand rules providing for the removal of com-missioners. The terms of the temporarymembers expire on the date that one or morecommissioners are appointed under subsec-tion (3) of this section. A qualified temporarymember is eligible for appointment to a termon the commission under subsection (3) ofthis section.

(3) The director shall appoint the com-missioners for a commodity commission inaccordance with the rules adopted undersubsection (2) of this section. In appointingthe commissioners, the director shall giveconsideration to any recommendations byother commodity commissions, commoditygrowers and commodity grower associations.

(4) A majority of the commissioners mustbe producers of the commodity that is thesubject of the commission. At least one com-missioner must be a handler of the commod-ity. One commissioner must be a member ofthe public not associated with the productionor handling of the commodity. All commis-sioners other than handlers and the memberof the public must be producers.

(5) The term of a commissioner appointedunder subsection (3) of this section is fouryears unless a shorter term is established bycommission rule. A commissioner is eligiblefor reappointment unless otherwise providedby commission rule. Before the expiration ofa commissioner’s term, the director shall ap-point a successor to assume office upon ex-piration of the term. If there is a vacancy ona commission for any cause, the directorshall appoint a person to the unexpired term.

(6) The commission shall select onemember to serve as chairperson and anothermember to serve as vice chairperson, withsuch duties and powers as the commissiondeems appropriate to those offices.

(7) A temporary member of a commissionor a commissioner is entitled to compensa-tion and expenses in the manner andamounts provided in ORS 292.495. Claims forcompensation earned and expenses incurredin performing the functions of the commis-sion shall be paid out of funds available tothe commission. [2003 c.604 §4 (enacted in lieu of576.205); 2003 c.604 §5; 2007 c.55 §2]

576.210 [Repealed by 1953 c.119 §2]

576.215 Ex officio members of com-mission. The Director of Agriculture andthe Dean of the College of Agricultural Sci-ences of Oregon State University, or theirrespective official representative, shall be exofficio members of a commodity commission,without right to vote. When a commission isestablished for a seafood commodity, thechairperson of the State Fish and WildlifeCommission or the official representative ofthe chairperson shall also be an ex officiomember of the commission, without right tovote. ORS 576.206 and 576.225 to 576.255 donot apply to ex officio members. [1953 c.489 §12;1957 c.447 §10; 1959 c.596 §9; 1995 c.79 §311; 2003 c.604§32]

576.220 [Repealed by 1953 c.119 §2]



576.225 Qualifications of members. (1)A member of a commodity commission must,during the term of office of the member:

(a) Be a citizen of the United States.(b) Be a bona fide resident of the state.(c) Have an active interest in the positive

development and economic growth of thecommodity industry in Oregon.

(2) A producer member of a commissionmust have paid an assessment adopted by thecommission, if any, on the commodity ineach of the preceding three calendar years.A handler member of a commission musthave collected an assessment adopted by thecommission, if any, on the commodity ineach of the preceding three calendar years.[1953 c.489 §13; 1957 c.447 §11; 2003 c.604 §33]

576.235 [1953 c.489 §14; 1965 c.515 §2; 1977 c.198 §9;repealed by 2003 c.604 §109]

576.245 Office vacant when memberceases to be qualified. The Director of Ag-riculture shall immediately declare the officeof any appointed producer or handler mem-ber of a commodity commission vacantwhenever the director finds that such mem-ber has ceased to be an active producer orhandler in this state, has become a residentof another state or is unable to perform theduties of office. [1953 c.489 §15; 1957 c.447 §12; 1965c.515 §3; 1977 c.198 §10; 2003 c.604 §34; 2005 c.22 §390]

576.255 Removal of members. (1) TheDirector of Agriculture may remove anymember of a commodity commission for inef-ficiency, neglect of duty or misconduct in of-fice, after a public hearing and after servingupon the member a copy of the chargesagainst the member, together with a noticeof the time and place of the hearing, at least10 days prior to such hearing. At the hearingthe member shall be given an opportunity tobe heard in person or by counsel and shallbe permitted to present evidence to answerthe charges and explain the facts allegedagainst the member.

(2) In every case of removal, the directorshall file in the office of the Secretary ofState a complete statement of all chargesagainst the member, the findings of the di-rector and a record of the entire proceedingsheld in connection with the charges. [1953c.489 §16; 1965 c.515 §4; 1977 c.198 §11; 2005 c.22 §391]

576.265 Travel and other expenses ofmembers; per diem; rules. (1) A commoditycommission may adopt rules establishing theamount of payment that a member of thecommission receives under ORS 292.495 (1)for each day or portion of a day duringwhich the member is actually engaged in theperformance of official duties. The amountmay exceed, but not be less than, the amountof payment that would otherwise be providedunder ORS 292.495 (1).

(2) Members, officers and employees of acommodity commission shall receive theiractual and necessary travel and other ex-penses incurred in the performance of theirofficial duties. Subject to any limitations de-scribed under ORS 292.495 (2), the commis-sion shall adopt uniform and reasonable rulesgoverning the incurring and paying of suchexpenses. [1953 c.489 §17; 1959 c.596 §10; 2005 c.22§392; 2009 c.137 §1]

576.275 Meeting place of commission.A commodity commission may establish ameeting place anywhere within this state thecommission selects, but the selection of thelocation must be guided by consideration forthe convenience of the majority of thosepersons most likely to have business with thecommission or be affected by the acts of thecommission. This section does not prohibit acommission from participating in meetingsoutside this state for purposes of advancingthe work of the commission. [1953 c.489 §18; 2003c.604 §35]

576.285 Commission organization;meetings. A commodity commission shallmeet as soon as practicable for the purposesof organizing. It shall elect a chairperson anda secretary-treasurer from among its mem-bers. It shall adopt a general statement ofpolicy for guidance, and shall transact suchother business as is necessary to start thework of the commission. Thereafter, thecommission shall meet regularly once eachsix months, and at such other times as calledby the chairperson. The chairperson may callspecial meetings at any time, and shall calla special meeting when requested by two ormore members of the commission. [1953 c.489§19; 2005 c.22 §393]

576.295 [1953 c.489 §10; 1955 c.732 §3; part renum-bered 576.055; 1959 c.596 §11; repealed by 2003 c.604 §109]

576.304 Authority of commodity com-missions; rules. A commodity commissionmay:

(1) Appoint all subordinate officers andemployees of the commission, prescribe theirduties and fix their compensation.

(2) Levy assessments under ORS 576.325.(3) Borrow money in amounts that do not

exceed estimated revenues from assessmentsfor the year.

(4) Enter into contracts for carrying outthe duties of the commission.

(5) Subject to ORS 30.260 to 30.300, sueand be sued in the name of the commission.

(6) Request that the Attorney Generalprosecute in the name of the State of Oregonsuits and actions for the collection of assess-ments levied by the commission.

(7) Study state and federal legislationwith regard to tariffs, duties, reciprocal tradeagreements, import quotas and other matters



affecting commodity industries and the state.A commission may represent and protect theinterests of a commodity industry regardingany legislation, proposed legislation or exec-utive action affecting the commodity indus-try.

(8) Participate in federal and state hear-ings or other proceedings concerning regu-lation of the manufacture, distribution, saleor use of pesticides as defined in ORS 634.006or other chemicals that are of use or poten-tial use to producers of a commodity. Thissubsection does not authorize a commoditycommission to regulate the use of pesticides.

(9) To the extent consistent with the du-ties of the commission, participate in andcooperate with local, state, national andinternational private organizations or gov-ernmental agencies that engage in worksimilar to that of a commodity commission.

(10) Provide mechanisms for maintainingand expanding existing markets and develop-ing new domestic and foreign markets for acommodity, including but not limited to:

(a) Public relations programs;(b) Media relations programs;(c) Paid print, electronic and position ad-

vertising;(d) Point of sale promotion and merchan-

dising;(e) Paid sales promotions and coupon

programs; and(f) Activities that prevent, modify or

eliminate trade barriers that obstruct thefree flow of a commodity to market.

(11) Conduct and fund research to:(a) Enhance the commercial value of a

commodity and products derived from thecommodity;

(b) Discover the benefits to public health,the environment or the economy of consum-ing or otherwise using a commodity;

(c) Develop better and more efficientproduction, harvesting, irrigation, processing,transportation, handling, marketing and usesof a commodity;

(d) Control or eradicate hazards to acommodity, including but not limited to haz-ards from animals, pests and plants;

(e) Develop viable alternatives for therotation of crops;

(f) Determine new or potential demandfor a commodity and develop appropriatemarket development strategies for capturingthat demand; and

(g) Measure the effectiveness of market-ing, advertising or promotional programs.

(12) Gather, publicize and disseminateinformation that shows the importance of the

consumption or other use of a commodity topublic health, the environment, the economyand the proper nutrition of children andadults.

(13) Further the purposes of this sectionby funding scholarships for or providing fi-nancial assistance to persons or entities in-terested in a commodity.

(14) Adopt rules in accordance with ORSchapter 183 for carrying out the duties,functions and powers of the commission. [2003c.604 §8 (enacted in lieu of 576.305)]

576.305 [1953 c.489 §20; 1957 c.447 §13; 1959 c.596 §12;repealed by 2003 c.604 §7 (576.304 enacted in lieu of576.305)]

576.306 Independent contractors per-forming services for commission; rentalsand acquisitions; rules. (1) A commoditycommission may contract with an independ-ent contractor for the performance of anyservices. However, the commission may notcontract with an independent contractor toperform the discretionary functions of thecommission. ORS 279.835 to 279.855 and ORSchapters 240, 279A, 279B and 279C do notapply to the commission in obtaining suchservices, except that no contract for suchservices shall take effect until approved bythe State Department of Agriculture as pro-vided in subsection (7) of this section.

(2) The commission may rent space oracquire supplies and equipment from anycontractor as described in subsection (1) ofthis section. ORS chapters 276, 278, 279A,279B, 279C and 283 and ORS 279.835 to279.855 and 291.038 do not apply to suchrentals or acquisitions.

(3) Except as provided in this section, acontractor described in subsection (1) of thissection shall be considered an independentcontractor and not an employee, eligible em-ployee, public employee or employee of thestate for purposes of Oregon law, includingORS chapters 236, 238, 238A, 240, 243, 291,292, 316 and 652.

(4) Nothing in this section precludes thestate or a commission from being consideredthe employer of the contractor described insubsection (1) of this section for purposes ofunemployment compensation under ORSchapter 657 and ORS 670.600.

(5) A contractor described in subsection(1) of this section shall be considered an in-dependent contractor and not a worker forpurposes of ORS chapter 656 and ORS670.600.

(6) A contractor described in subsection(1) of this section may not be considered apublic official, public officer, state officer orexecutive official for purposes of Oregon law,including ORS chapters 236, 244, 292, 295 and297 and ORS 171.725 to 171.785.



(7) The State Department of Agricultureshall review the contract described in sub-section (1) of this section for the adequacyof the clauses pertaining to statement ofwork, starting and ending dates, consider-ation, subcontracts, funds authorized in thebudget, amendments, termination, compliancewith applicable law, assignment and waiver,access to records, indemnity, ownership ofwork product, nondiscrimination, successorsin interest, attorney fees, tax certification ormerger or any other clause the departmentdeems necessary.

(8) The Oregon Department of Adminis-trative Services, in consultation with theState Department of Agriculture, shall adoptrules necessary for the screening and se-lection of independent contractors under thissection.

(9) Except as provided in subsection (8)of this section, the State Department of Ag-riculture may promulgate any rules neces-sary for the administration and enforcementof this section. [1991 c.948 §2; 1997 c.802 §21; 2003c.733 §79; 2003 c.794 §302; 2005 c.22 §§394,395]

576.307 Provision of state services tocommission. (1) Upon request by a com-modity commission, the Oregon Departmentof Administrative Services may:

(a) Purchase or otherwise provide for ac-quiring or furnishing supplies, materials,equipment and services, other than personalservices, that the commission requires andfor independent contractors to furnish pro-fessional services to the commission.

(b) Provide for printing and multiple du-plication work for the commission underORS 282.010 to 282.050, except for printingand binding that advertises or promotes ag-ricultural or manufactured products.

(c) Provide for services to the commis-sion for disposing of surplus, obsolete or un-used supplies, materials and equipment underORS 279A.280.

(d) Provide for central telephone serviceand central mail or messenger services to thecommission under ORS 283.140.

(e) Provide motor vehicles for use bymembers, officers and employees of the com-mission under ORS 283.305 to 283.350.

(2) A commission shall pay to the OregonDepartment of Administrative Services anamount for services the department performsunder subsection (1) of this section that thedepartment determines is adequate to reim-burse the department for the costs necessaryto perform the services.

(3) At the commission’s request, the Ore-gon Department of Administrative Servicesmay design and supervise the installation ofan accounting system for the commission.

The commission shall pay to the Oregon De-partment of Administrative Services anamount for services the department performsunder this subsection that the departmentdetermines is adequate to reimburse the de-partment for the costs necessary to performthe services. [1959 c.596 §32; 1967 c.419 §35; 1993 c.500§48; 2003 c.794 §303; 2005 c.22 §§396,397; 2009 c.601 §5]

576.309 Commission furnishing ser-vices, facilities and materials to otherstate agencies. A commodity commissionmay elect to furnish services, facilities andmaterials to other commodity commissions,the Oregon Wheat Commission, the OregonBeef Council or other state agencies and of-ficers under ORS 283.110 to carry out thepurposes of ORS 576.051 to 576.455. Uponrequisition by the commission, any othercommodity commission, the Oregon WheatCommission, the Oregon Beef Council or anyother state agency or officer may furnishservices, facilities and materials to the com-mission under ORS 283.110. [1959 c.596 §33; 2003c.604 §36]

576.311 Commission exempt from cer-tain financial administration laws. Exceptas otherwise provided in ORS 576.051 to576.455, ORS 291.026, 291.201 to 291.222,291.232 to 291.260, 291.322 to 291.336, 292.210to 292.250, 293.260 to 293.280, 293.295 to293.346 and 293.590 to 293.640 do not applyto a commodity commission or to the admin-istration and enforcement of ORS 576.051 to576.455. [1959 c.596 §34; 2005 c.22 §398]

576.315 Grants, donations and gifts. Acommodity commission may accept grants,donations or gifts, from any source for ex-penditures for any purposes consistent withthe powers conferred on the commission.[1953 c.489 §29; 2005 c.22 §399]

576.317 Intellectual property; rules. (1)As used in this section, “intellectual prop-erty” means patents, copyrights, trademarks,inventions, discoveries, processes, ideas andother similar property, whether or not theyare patentable or copyrightable.

(2) A commodity commission establishedunder ORS 576.051 to 576.455 may, consistentwith the purposes of the commission, developintellectual property that relates to a com-modity or assists in the implementation,maintenance or development of commissionprograms. A commodity commission maytake all necessary and proper actions relat-ing to the development of an intellectualproperty, including but not limited to enter-ing into contracts and other agreements andowning, managing, disposing of or using theintellectual property. A commodity commis-sion developing intellectual property shalladopt rules to govern the ownership, man-agement, disposal and use of intellectual



property and other activities of the commis-sion relating to intellectual property.

(3) Moneys received by a commoditycommission as a result of the commission’sownership, management, disposal or use ofintellectual property, or other activities ofthe commission relating to intellectual prop-erty, must be deposited to an account estab-lished and maintained by the commissionpursuant to ORS 576.375. Moneys depositedunder this section are continuously appro-priated to the commodity commission pos-sessing the account for the purpose ofcarrying out the duties, functions and powersof the commission. [2001 c.578 §1; 2003 c.604 §37]

Note: 576.317 was enacted into law by the Legisla-tive Assembly but was not added to or made a part ofORS chapter 576 or any series therein by legislativeaction. See Preface to Oregon Revised Statutes for fur-ther explanation.

576.320 Commission employees notsubject to state personnel compensationplans; commission not subject to officespace regulation; fees for administrativeservices; rules. (1) Wages or salaries of em-ployees of a commodity commission estab-lished under ORS 576.051 to 576.455 are notsubject to personnel compensation plans forstate employees established by the OregonDepartment of Administrative Services underORS 240.235 to 240.250.

(2) A commodity commission establishedunder ORS 576.051 to 576.455 is not requiredto utilize office space furnished or obtainedby the Oregon Department of AdministrativeServices as provided in ORS chapter 276.

(3) The State Department of Agriculturemay charge and collect from each commoditycommission established under ORS 576.051 to576.455 an assessment or fee to reimbursethe department for supervisory or adminis-trative functions the department is requiredby law to perform with regard to commoditycommissions. The department shall establishthe amount of the assessment or fee by rule.[1993 c.561 §2; 2003 c.604 §38]

Note: 576.320 was added to and made a part ofORS chapter 576 by legislative action but was not addedto any smaller series therein. See Preface to OregonRevised Statutes for further explanation.

(Assessment and Budgeting)576.325 Levy and collection of assess-

ments; commission rules regulating saleactivities; maximum assessment rates. (1)As used in this section, “industry averageunit price” means the average unit price forthe raw commodity within the industry.Unless provided otherwise, “industry averageunit price” includes prices that are calcu-lated using a one-year, two-year or three-yearaverage and data from the most recent com-plete year or years preceding the year of de-termination.

(2)(a) A commodity commission may as-sess, levy and collect an assessment, theamount of which the commission shall deter-mine, on all units or animals of the com-modity grown or produced in this state, orprocured from this state’s rivers or the off-shore waters, but not the Columbia River, forhandling within this state, and sold in com-mercial channels. A commission may not ap-ply an assessment to a transaction thatoccurred prior to the effective date of thecommission rule adopting the assessment.

(b) A commission may assess, levy andcollect a differential assessment, the amountof which the commission shall determine,based on the intended use, type or variety ofthe commodity.

(c) All casual sales of the commoditymade by the producer direct to the consumerare exempt from the assessment.

(d) A commission may, by rule, defineand regulate handling, processing and casualsales.

(3) The amount of the assessment pro-vided for in subsection (2) of this section islimited as follows:

(a) If a commission assesses on a unitbasis, the assessment may not exceed oneand one-half percent of the industry averageunit price. The commission may determinethe industry average unit price by consider-ing data and estimates of the United StatesDepartment of Agriculture, Oregon StateUniversity or other reliable sources.

(b) If a commission assesses on a per-centage of dollar value basis, the assessmentmay not exceed one and one-half percent ofthe dollar value received by a producer forthe raw commodity. If the dollar value re-ceived by a producer is not otherwise deter-minable, the commission may establish thedollar value based on the industry averageunit price for that year for the raw commod-ity.

(4) Notwithstanding subsection (3) of thissection:

(a) The maximum assessment by the Ore-gon Clover Seed Commission may not exceedone and one-half percent of the industry av-erage unit price for products within the samemarket category, if assessed on a unit basis.

(b) The maximum assessments by the Or-egon Albacore Commission, the OregonOrchardgrass Seed Producers Commissionand the Oregon Tall Fescue Commission maynot exceed three percent of the industry av-erage unit price if assessed on a unit basisor three percent of the value received by aproducer for the raw commodity if assessedon a percentage of dollar value basis.



(c) The maximum assessment by the Ore-gon Sweet Cherry Commission for fresh,brined, canned and frozen cherries may notexceed four percent of the respective indus-try average unit prices for fresh, brined,canned and frozen cherries if assessed on aunit basis.

(d) The maximum assessment by the Ore-gon Processed Vegetable Commission on acommodity may not exceed 0.5 percent of theindustry average unit price for that com-modity if assessed on a unit basis or 0.5 per-cent of the dollar value received by aproducer for the commodity if assessed on apercentage of dollar value basis.

(e) The maximum assessment by the Ore-gon Hop Commission may not exceed twopercent of the industry average unit price ifassessed on a unit basis.

(f) The maximum assessment by the Ore-gon Sheep Commission may not exceed fivecents per pound on all wool, in the greasebasis, sold through commercial channels. Thecommission may not adopt an assessmentthat is more than one-half cent per pound ofwool, in the grease basis, above the assess-ment for the previous year.

(5) A commission shall assess and levyan assessment under subsections (2) to (4) ofthis section to the producer at the time andin the manner provided by the commissionby rule. The commission is the owner of acollected assessment. A person who collectsan assessment holds the assessment in trustfor the benefit of the commission and thestate and shall remit the assessment in thetime and manner required by the commissionunder ORS 576.335.

(6) Notwithstanding subsection (5) of thissection, a commission may assess, levy andcollect an assessment from a first purchaserat the time and in the manner provided bythe commission by rule. Except as providedin subsection (8) of this section, the assess-ment may not exceed the limits described insubsections (3) and (4) of this section.

(7) A regional commission may assess,levy and collect an assessment only on thecommodity produced in the counties in whichthe regional commission functions.

(8) Notwithstanding subsections (3) and(4) of this section, a commodity commissionmay assess, levy and collect an assessmentin excess of the limits described in subsec-tions (3) and (4) of this section pursuant toa federal marketing order or agreement.

(9) A person who believes that theamount of an assessment is incorrect mayapply to the commission for a refund notlater than 60 days after the person pays theassessment. [1953 c.489 §21; 1957 c.447 §14; 1959 c.596

§13; 1983 c.645 §1; 2001 c.504 §4; 2003 c.604 §39; 2007 c.132§4]

576.327 Exemptions from assessment;rules. (1) A commodity commission may, byrule, establish exemptions from assessmentbased on:

(a) Commodity quantities;(b) Types of commodity sale; and(c) Types of commodity producer.(2) When adopting a rule for exemptions

under subsection (1) of this section, a com-mission must consider:

(a) Laws and rules of the United Statesand other states relating to commodity com-missions, boards and marketing orders;

(b) The practices, procedures and cus-toms unique to the production, handling,processing and trading of a particular com-modity and to the producers and growers ofthat commodity; and

(c) The cost of collecting the particularassessment and practical problems relatingto collection.

(3) A producer or handler that is ex-empted from assessment, but required tosubmit reports to a commission, is subject toORS 576.351. [2003 c.604 §9]

576.335 Report by person responsiblefor collecting assessment. (1) A person re-sponsible for collecting an assessment for acommodity commission shall make a reportto the commission at the time and in themanner required by the commission.

(2) A person responsible for collecting anassessment for a commission who fails to de-duct an assessment at the time of sale shallreport and pay the assessment to the com-mission. A producer required to report andpay an assessment is subject to this section.[1953 c.489 §§24,26; 1959 c.596 §14; subsection (4) enactedas 1965 c.211 §3; 2003 c.604 §40]

576.345 Producer to make reports ofand pay assessment moneys on certainsales. (1) When a first purchaser lives or hasan office in another state or is a federal orother governmental agency, the producershall report all sales made to the purchaseron forms provided by the appropriate com-modity commission and pay the assessmentmoneys directly to the commission, unlessthe first purchaser voluntarily makes theproper deduction and remits the proceeds tothe commission.

(2) If a producer performs the handlingor processing functions on all or a part ofthe production of the commodity thatnormally would be performed by anotherperson as first purchaser, the producer shallreport sales of the commodity from the pro-duction of the producer on forms provided bythe appropriate commodity commission and



pay the assessment moneys directly to thecommission, unless the first purchaser vol-untarily makes the proper deduction and re-mits the proceeds to the commission. [1953c.489 §25; 1959 c.596 §15; subsection (2) enacted as 1959c.596 §74; 2005 c.22 §400]

576.350 [1957 c.447 §18; repealed by 1959 c.596 §90]

576.351 Records of person required topay or collect assessment; inspectionsand audits. (1) Each person required to payor collect an assessment on a commodity un-der ORS 576.051 to 576.455 shall keep accu-rate records sufficient to enable a commoditycommission to determine by inspection andaudit the accuracy of assessments paid ordue to the commission and of reports madeor due to the commission.

(2) For purposes of determining the ac-curacy of assessments paid or due to a com-mission, the commission or a personauthorized by the commission may:

(a) Make an inspection during normalbusiness hours of the business premises of aperson required to pay or collect an assess-ment; and

(b) Audit the records of a person requiredto pay or collect an assessment.

(3) For purposes of determining the ac-curacy of assessments paid or due to a com-mission, the commission may issue asubpoena for the production of any books,records or documents related to the paymentor collection of an assessment to a personrequired to pay or collect the assessment.

(4) If an audit determines that a personis delinquent in the payment or collection ofan assessment, the person shall pay the costof the audit, not to exceed an amount equalto the delinquent assessment. [1959 c.596 §76;2003 c.604 §41]

576.355 Penalty for delaying transmit-tal of funds. (1) In addition to the penaltiesprescribed in ORS 576.991, any person whodelays transmittal of funds beyond the timeset by a commodity commission shall pay apenalty of 10 percent of the amount due andshall also pay one and one-half percent in-terest per month on the unpaid balance ofthe assessment.

(2) A commission may waive the penaltyand interest described in subsection (1) ofthis section upon a showing of good cause.

(3) Notwithstanding subsection (1) of thissection, if an assessment is collected pursu-ant to a federal marketing order or agree-ment, a commission may establish a penaltyor interest rate that is consistent with thatorder or agreement. [1953 c.489 §28; 2003 c.604 §42]

576.365 Penalty for failure to relin-quish assessment moneys to commission;civil action or other remedies. (1) If any

person responsible for the transmittal of as-sessment moneys to a commodity commissionfails to relinquish assessment moneys col-lected, the person shall pay a penalty equalto twice the amount of the unrelinquishedassessment moneys.

(2) A commission may commence a civilaction or utilize any other available legal orequitable remedy to collect an assessment orcivil penalty, obtain injunctive relief or ob-tain specific performance under ORS 576.051to 576.455.

(3) If the person responsible for thetransmittal of assessment moneys is a corpo-ration, all directors and officers of the cor-poration are personally liable for a failure torelinquish the assessment moneys collectedby the corporation.

(4) If a commission obtains a favorablejudgment in an action or suit under subsec-tion (2) of this section, the court shall awardthe commission costs and reasonable attor-ney fees.

(5) Unless the person required to pay anassessment and the person responsible forcollecting the assessment are related busi-nesses, the department may not collect fromthe person required to pay the assessmentany amount deducted by the person respon-sible for collecting the assessment and dueand owing to the department. [1953 c.489 §27;1959 c.596 §16; 2003 c.604 §43]

576.370 Disputes over assessmentamounts; rules governing disputes andestablishing assessment periods. (1) Acommodity producer may dispute the amountof a commodity assessment levied against theproducer on a unit basis under ORS 576.325if the total assessment levied against theproducer during an assessment period estab-lished by commodity commission rule exceedsthe total dollar value received by the pro-ducer for the raw commodity during that as-sessment period multiplied by the maximumlawful assessment percentage.

(2) A commodity producer who disputesthe amount of a commodity assessment asprovided under subsection (1) of this sectionmust file any challenge to the assessmentwith the appropriate commodity commissionno later than 60 days after the close of theassessment period. The challenge must be ona form provided by the State Department ofAgriculture. A commodity commission shallprocess a challenge under this section asprovided by rules adopted under subsection(4) of this section.

(3) A commodity producer filing a chal-lenge under this section bears the burden ofproving the total dollar value received by theproducer during the assessment period. If theproducer acts as a handler or processor for



all or part of the producer’s commodity pro-duction, the producer also bears the burdenof proving that the prices paid to the pro-ducer are equivalent to prices paid in arm’s-length transactions. A commoditycommission shall refund the amount of theassessment that the producer proves is inexcess of the total dollar value received bythe producer for the raw commodity duringthe assessment period multiplied by themaximum lawful assessment percentage.

(4) The department shall adopt necessaryand proper uniform rules for commoditycommissions to carry out this section. Thedepartment rules shall include, but need notbe limited to, procedures for the filing, pro-cessing and formal or informal resolution ofchallenges and for determining commodityprices paid in arm’s-length transactions. Acommodity commission shall adopt rules es-tablishing assessment periods and may adoptsupplemental rules that do not conflict withthe rules of the department. [2001 c.504 §2; 2003c.604 §44; 2005 c.22 §401]

Note: 576.370 was enacted into law by the Legisla-tive Assembly but was not added to or made a part ofORS chapter 576 or any series therein by legislativeaction. See Preface to Oregon Revised Statutes for fur-ther explanation.

576.372 Authority of Oregon AlfalfaSeed Commission to adopt rules author-izing refunds; effect. (1) In addition to anyrefund permitted under ORS 576.325, the Or-egon Alfalfa Seed Commission may adoptrules that provide for the commission to re-fund all or part of a commodity assessmentlevied by the commission upon request of theperson paying the assessment. A rule adoptedunder this subsection may not provide forthe commission to refund an amount lessthan the portion of the assessment used bythe commission for advertising and productpromotion.

(2) If the commission adopts rules pursu-ant to subsection (1) of this section:

(a) Plans and projects recommended bythe commission are exempt from State De-partment of Agriculture review and approvalor disapproval under ORS 576.066 (2); and

(b) Notwithstanding ORS 576.206, thecommission may vote to eliminate the posi-tion for a commissioner who is a member ofthe public. [2003 c.604 §22; 2003 c.604 §23; 2007 c.55§3; 2011 c.181 §5]

576.375 Payment of commission mon-eys to authorized agent; deposits andwithdrawals; investments. (1) All moneyscollected or received by any person from theassessment levied under the authority ofORS 576.325 and all other moneys receivedby a commodity commission must be paid tothe authorized agent of the commission andpromptly deposited into an account estab-

lished by the commission in a depository, asdefined in ORS 295.001, that is insured bythe Federal Deposit Insurance Corporation.In a manner consistent with the require-ments of ORS 295.001 to 295.108, the chair-person and vice chairperson for acommission shall ensure that sufficientcollateral secures any amount of funds ondeposit that exceeds the limits of the FederalDeposit Insurance Corporation’s coverage.All moneys in the account are continuouslyappropriated to the commission making thedeposit for the purpose of carrying out theduties, functions and powers of the commis-sion.

(2) Moneys may not be withdrawn fromor paid out of the account except upon orderof the commission, and upon checks or otherorders upon such accounts signed by thesecretary-treasurer or such other member ofthe commission as the commission designatesand countersigned by such other member, of-ficer or employee of the commission as thecommission designates. The commission shallkeep a receipt, voucher or other written re-cord, showing clearly the nature and itemscovered by each check or other order.

(3) Subject to approval by the Directorof Agriculture, a commission may investmoneys collected or received by the commis-sion. Investments made by a commission are:

(a) Limited to investments described inORS 294.035;

(b) Subject to the investments maturitydate limitations described in ORS 294.135;and

(c) Subject to the conduct prohibitionslisted in ORS 294.145.

(4) Interest earned from any moneys in-vested by a commission under subsection (3)of this section is available to the commissionin a manner consistent with thecommission’s annual budget. [1953 c.489 §22; 1959c.596 §17; 1967 c.451 §25; 2003 c.604 §45; 2007 c.871 §29]

Note: The amendments to 576.375 by section 27,chapter 101, Oregon Laws 2010, become operative Janu-ary 1, 2013, and apply to public funds on deposit on orafter January 1, 2013. See section 29, chapter 101, Ore-gon Laws 2010, as amended by section 2, chapter 667,Oregon Laws 2011, and see section 30, chapter 101, Ore-gon Laws 2010. The text that is operative on and afterJanuary 1, 2013, is set forth for the user’s convenience.

576.375. (1) Moneys a person collects or receivesfrom the assessment levied under the authority of ORS576.325 and other moneys a commodity commission re-ceives must be paid to the authorized agent of thecommission and promptly deposited into an account es-tablished by the commission in a depository, as definedin ORS 295.001, that is insured by the Federal DepositInsurance Corporation or the National Credit UnionShare Insurance Fund. In a manner consistent with therequirements of ORS 295.001 to 295.108, the chairpersonand vice chairperson for a commission shall ensure thatsufficient collateral secures any amount of funds ondeposit that exceeds the limits of the Federal DepositInsurance Corporation’s or the National Credit Union



Share Insurance Fund’s coverage. All moneys in theaccount are continuously appropriated to the commis-sion that makes the deposit for the purpose of carryingout the commission’s duties, functions and powers.

(2) Moneys may not be withdrawn from or paid outof the account except upon order of the commission, andupon checks or other orders upon such accounts signedby the secretary-treasurer or such other member of thecommission as the commission designates and counter-signed by such other member, officer or employee of thecommission as the commission designates. The commis-sion shall keep a receipt, voucher or other written re-cord, showing clearly the nature and items covered byeach check or other order.

(3) Subject to approval by the Director of Agricul-ture, a commission may invest moneys the commissioncollects or receives. Investments a commission makesare:

(a) Limited to investments described in ORS294.035;

(b) Subject to the investments maturity date limi-tations described in ORS 294.135; and

(c) Subject to the conduct prohibitions listed inORS 294.145.

(4) Interest earned from any moneys a commissioninvests under subsection (3) of this section is availableto the commission in a manner consistent with thecommission’s annual budget.

576.380 [1957 c.447 §16; repealed by 1959 c.596 §90]

576.385 Bond or letter of credit re-quired of person authorized to receive ordisburse commission moneys. Any personauthorized by a commodity commission toreceive or disburse moneys as provided inORS 576.375 shall file with the commissiona fidelity bond executed by a surety companyauthorized to do business in this state or anirrevocable letter of credit issued by an in-sured institution, as defined in ORS 706.008.The bond or letter of credit must be in favorof the commission and the State of Oregon,in an amount equal to the maximum amountof moneys the commission determines theperson will have subject to control at anyone time and upon such conditions as thecommission shall prescribe. The commissionshall pay the cost of the bond or letter ofcredit. [1953 c.489 §23; 1957 c.447 §20; 1959 c.596 §19;1991 c.331 §86; 1997 c.631 §499; 2005 c.22 §402]

576.390 [1957 c.447 §15; repealed by 1959 c.596 §90]576.391 [1959 c.596 §73; repealed by 2003 c.604 §10

(576.392 enacted in lieu of 576.391)]

576.392 Cancellation of uncollectibleassessment; subsequent collection. Acommodity commission may cancel an uncol-lectible assessment consistent with ORS293.240. Subsequent collection of debt writ-ten off under ORS 293.240 is governed byORS 293.245. [2003 c.604 §11 (enacted in lieu of576.391)]

576.395 Books, records and accountsof commission. Each commodity commis-sion shall keep accurate books, records andaccounts of all its dealings, which shall beopen to inspection and audit by the Secretaryof State. [1953 c.489 §30; subsection (2) enacted as1959 c.596 §75; 1973 c.794 §30; 2005 c.22 §403]

576.405 [1953 c.489 §36; repealed by 2003 c.604 §109]

576.410 “Fiscal year” defined. As usedin ORS 576.416 to 576.445, “fiscal year”means the fiscal year commencing on July 1and ending on June 30. [1959 c.596 §21]

576.415 [1959 c.596 §§22, 23; 1977 c.198 §12; 1993 c.98§18; repealed by 2003 c.604 §13 (576.416 enacted in lieuof 576.415)]

576.416 Preparation of commissionbudget; annual financial statement. (1) Acommodity commission shall adopt a budgeton an annual basis using classifications ofexpenditures and revenues required by ORS291.206. The budget is not subject to reviewby the Legislative Assembly or to futuremodification by the Emergency Board or theLegislative Assembly.

(2) A commission shall follow generallyaccepted accounting principles and keep fi-nancial and statistical information as neces-sary to completely and accurately disclosethe financial operations of the commissionas may be required by the Secretary of State.In addition, the budget must show the esti-mated receipts and expenditures by or underthe authority of the commission under ORS576.051 to 576.455 for the fiscal year forwhich the budget is adopted. The budget alsomust show the actual receipts and expendi-tures by or under the authority of the com-mission for the fiscal year preceding thefiscal year in which the proposed budget isprepared, if any, and the estimated receiptsand expenditures by or under the authorityof the commission for the fiscal year inwhich the budget is prepared, if any.

(3) Estimated receipts and expendituresfor the fiscal year for which the budget isadopted must be fully itemized and be pre-pared and arranged to clearly show eachitem of receipts and expenditures. To the ex-tent practicable, the items of receipts andexpenditures must be arranged under majorgroups or categories that are the same as themost recent classifications of revenue andexpenditures established pursuant to ORS291.206.

(4) The budget shall contain only one es-timate for emergency or other expendituresthat are unforeseen at the time the budget isprepared.

(5) A commission shall call and hold atleast one public meeting upon the proposedbudget. In selecting a time and place for ameeting, a commission shall be guided byconsideration for the convenience of the ma-jority of the producers of the commodity.At a meeting, any person has a right to beheard with respect to the proposed budget.

(6) At least 14 days prior to the date ofa meeting under subsection (5) of this sec-tion, a commission shall publish notice at



least once in a newspaper of general circu-lation in this state. The notice must setforth the purpose, time and place of themeeting and state that a copy of the pro-posed budget is available for public inspec-tion at the place of business of thecommission or at another convenient lo-cation.

(7) After a budget has been adopted, acommission shall submit to the Director ofAgriculture a copy of the budget and an af-fidavit setting forth the pertinent facts relat-ing to the preparation and adoption of thebudget. The director shall examine the bud-get and the affidavit within 15 days and, ifthe director determines that the estimatedreceipts and expenditures in the budget arein conformity with the authority of the com-mission and other applicable statutory re-quirements and that the facts set forth in theaffidavit indicate that the budget was pre-pared and adopted in accordance with thelaw, the director shall certify those determi-nations on the copy of the budget and makethe budget final. If the director determinesthat the budget fails to meet the require-ments in any respect, the director shall im-mediately notify the commission of theparticular failures. The commission shallpromptly take all practicable measures toremedy the failures and shall resubmit acopy of the budget to the director for exam-ination. The director shall retain the certi-fied copy of the final budget and make thebudget available for public inspection duringnormal business hours of the State Depart-ment of Agriculture.

(8) A commission shall prepare an annualfinancial statement of commission revenuesand expenses and shall make the statementavailable for public review. A commissionshall provide a copy of the statement to theSecretary of State and the department nolater than 90 days after the end of the statefiscal year. [2003 c.604 §14 (enacted in lieu of576.415)]

576.420 Expenditures prohibited unlessbudget procedure complied with. An ex-penditure of moneys for a fiscal year may notbe made or incurred by or under the author-ity of a commodity commission under ORS576.051 to 576.455 unless the commissioncomplies with ORS 576.416. [1959 c.596 §24; 2003c.604 §46]

576.425 [1959 c.596 §25; repealed by 2003 c.604 §109]576.430 [1959 c.596 §26; 1977 c.198 §13; 1993 c.98 §19;

repealed by 2003 c.604 §109]576.435 [1959 c.596 §27; 2003 c.734 §17; repealed by

2003 c.604 §109]

576.440 Limitation on expenditures. (1)Except as otherwise provided in subsection(2) of this section, an expenditure of moneysfor a fiscal year may not be made or incurred

by or under the authority of a commoditycommission under ORS 576.051 to 576.455:

(a) In excess of the total amount of ex-penditures estimated for the fiscal year inthe budget adopted for the fiscal year or inexcess of the total amount of expendituresestimated for the major group or category ofthe expenditure for the fiscal year in thebudget adopted for the fiscal year.

(b) For any purpose different than thatindicated by the major group or category ofthe expenditure in the budget adopted for thefiscal year.

(2) An expenditure of moneys for a fiscalyear unforeseen at the time the budget isprepared may not be made or incurred by orunder the authority of the commission underORS 576.051 to 576.455 in excess of theamount of unforeseen expenditures estimatedas provided in ORS 576.416. [1959 c.596 §28; 2003c.604 §47]

576.445 Unforeseen expenditures. (1)Subject to ORS 576.440 (2), expenditures ofmoneys for a fiscal year unforeseen at thetime the budget of a commodity commissionis prepared may be made or incurred by or-der of the commission. The order must indi-cate the amount and purpose of theexpenditure and why the expenditure wasunforeseen. At least one copy of the ordermust be filed in the office of the commissionand available for public inspection duringnormal business hours of the commission.

(2) The commission shall send a copy ofthe order to the Director of Agriculture. Thedirector shall examine the order and thebudget to which the order relates. The di-rector shall certify the order if the directordetermines that the form of the order is inaccordance with law, that the facts set forthin the order and the budget to which the or-der relates indicate that the order is in ac-cordance with law, and that the proposedunforeseen expenditure is appropriate to ac-complish the goals and needs of the commis-sion. The director shall immediately notifythe commission if the director determinesthat the order is defective because of a fail-ure to comply with ORS 576.416, because thefinal budget or the preparation or adoptionof the final budget is defective or becauseestimated expenditures are not in conformitywith statutory requirements. The commissionshall promptly take all practicable steps toremedy the defects. The director shall retainthe certified copy of the order and make thecopy available for public inspection duringnormal business hours of the State Depart-ment of Agriculture. [1959 c.596 §29; 1977 c.198 §14;1993 c.98 §20; 2003 c.604 §48]

576.450 [1959 c.596 §30; repealed by 2003 c.604 §109]



576.455 Moneys of abolished commis-sion. (1) Unless the Legislative Assemblyorders a refund pursuant to subsection (2) ofthis section, if the Legislative Assemblyabolishes a commodity commission, anymoneys remaining in the possession of theabolished commission on the effective dateof the abolishment are transferred to OregonState University and are continuously appro-priated to the university for research bene-fiting producers of the commodity that wassubject to assessment by the abolished com-mission.

(2) The Legislative Assembly may orderin an Act dissolving a commodity commissionthat any moneys remaining in the possessionof the abolished commission on the effectivedate of the abolishment be refunded on aproportional basis to the persons who paidassessments to the commodity commissionduring the assessment year in which thecommodity commission was abolished. [2003c.604 §12]

576.505 [1953 c.489 §31; 1957 c.447 §21; 1959 c.596 §77;repealed by 2003 c.604 §109]

576.515 [1953 c.489 §32; repealed by 1959 c.596 §90]576.525 [1953 c.489 §33; repealed by 2003 c.604 §109]576.555 [1959 c.596 §78; 1965 c.515 §7; 1977 c.198 §15;

2001 c.504 §5; repealed by 2003 c.604 §109]576.565 [1959 c.596 §79; repealed by 2003 c.604 §109]576.570 [1965 c.515 §6; 1977 c.198 §16; repealed by

2003 c.604 §109]576.575 [1959 c.596 §80; repealed by 2003 c.604 §109]576.578 [1971 c.486 §2; 1987 c.180 §1; 1993 c.281 §1;

repealed by 2003 c.604 §109]576.580 [1971 c.486 §3; 1987 c.180 §2; 1993 c.281 §2;

repealed by 2003 c.604 §109]576.582 [1971 c.486 §4; 1993 c.281 §3; repealed by 2003

c.604 §109]576.584 [1971 c.486 §5; repealed by 2003 c.604 §109]576.585 [1965 c.211 §2; repealed by 2003 c.604 §109]

576.595 Sales are in commercial chan-nels. Any sale of a commodity by a groweror producer is a sale in commercial channelsfor the purposes of ORS 576.051 to 576.455and 576.991 (2). [1965 c.211 §1; 2003 c.604 §49; 2011c.597 §236]

MEDIATION OF MARKETINGDISPUTES


(1) “Agricultural commodity” means anyagricultural, horticultural or viticulturalproduct, but does not include milk, timber ortimber products.

(2) “Department” means the State De-partment of Agriculture.

(3) “Director” means the Director of Ag-riculture.

(4) “Handler” means any person whopurchases an agricultural commodity andthereafter grades, packs, cans, freezes, dis-tills, crushes or otherwise preserves orchanges the form of the commodity for thepurpose of marketing the commodity.

(5) “Producer” means a person engagedin the business of growing, raising or other-wise producing an agricultural commodityfor sale or an association of such personsorganized under ORS chapter 62.

(6) “Representative group of producers”means those producers who produced, in theprevious crop season, more than 59 percentof the amount of the commodity handled byeach separate handler with whom such pro-ducers are involved in a dispute. [1969 c.238§1]

576.620 Department to perform medi-ation services; employees; qualifications.In addition to such other duties as may beprescribed by law, the State Department ofAgriculture shall perform mediation servicesfor producers and handlers involved in agri-cultural marketing disputes in the mannerprovided in ORS 576.610 to 576.650. Subjectto any applicable provision of the State Per-sonnel Relations Law, the Director of Agri-culture may appoint such employees as thedirector considers necessary to perform themediation services required by ORS 576.610to 576.650. In addition to or in place of anypermanent employees appointed to performmediation services, the director may appointpersons, on a temporary basis, to performsuch services. Such temporary employeesserve at the pleasure of the director, andneed not be members of the classified ser-vice, as defined in ORS 240.210. The directormay set the hours, salaries, expense allow-ances and other terms and conditions of em-ployment of such temporary employees. Anyperson designated to act for the director ina mediation proceeding shall be a disinter-ested person who is not a producer or han-dler of the commodity involved in thedispute, or interested in the ownership ormanagement of such a producer or handler.[1969 c.238 §2]

576.630 Request for mediation; meet-ing with parties. Whenever a representativegroup of producers of an agricultural com-modity are unable to reach an agreement onprice or other marketing term with a han-dler, either side may request in writing me-diation assistance from the State Departmentof Agriculture in settling the dispute. Notlater than 10 days after receiving such a re-quest for assistance, the department shallmeet with the parties to the dispute andshall assist the parties in attempting toreach a settlement. [1969 c.238 §3]



576.640 Rules. In accordance with ORSchapter 183, the State Department of Agri-culture may promulgate rules to carry outORS 576.610 to 576.650. [1969 c.238 §4]

576.650 Cooperation by state agencies.All governmental agencies and officers shallcooperate with the State Department of Ag-riculture and furnish such information andadvice as the department considers necessaryfor the performance of its mediation services.[1969 c.238 §5]

PAYMENT FOR AGRICULTURALCOMMODITIES

(Generally)576.700 Definitions for ORS 576.700 to

576.710. As used in ORS 576.700 to 576.710:(1) “Commodity” has the meaning for

that term provided in ORS 576.051.(2) “Processor” means any person who

purchases, offers to purchase or contracts topurchase in this state any commodity from aproducer or an agent of a producer for thepurpose of packaging, processing or market-ing such commodity. “Processor” does notinclude any cooperative, formed pursuant toORS chapter 62.

(3) “Producer” means any person otherthan a processor who produces a commodityin this state for commercial purposes.

(4) “Meat animal” has the meaning forthat term provided in ORS 603.010. [1971 c.531§1; 1975 c.703 §8]

576.705 Processors required to pay forcommodities within 30 days after deliv-ery; interest on late payments. Notwith-standing any other provision of law:

(1) In the absence of a contract providingotherwise, any processor who purchases acommodity from a producer shall make fullpayment therefor not later than the 30th dayafter the day the processor takes delivery ofthe harvested commodity.

(2) Any processor who fails to make pay-ment as required by subsection (1) of thissection shall pay, in addition to the amountdue, interest thereon at the rate of one per-cent per month. [1971 c.531 §2]

576.710 Applicability of ORS 576.705.ORS 576.705 does not apply to any processor:

(1) That purchases from a producer seedthat requires cleaning and germination tests;

(2) That arranges for the production ofagricultural seed under a contract that issubject to ORS 576.718 or 576.721;

(3) Of sugar beets whose contract with aproducer for sale of the crop provides forprofit sharing;

(4) Of fish or seafood products; or(5) Of meat animals. [1971 c.531 §3; 1975 c.703

§9; 2011 c.356 §11]

(Seeds)576.715 Definitions for ORS 576.715 to

576.744. As used in ORS 576.715 to 576.744:(1) “Agricultural seed” means grass seed

of a type commonly sold for use in turf lawnsor as forage seed.

(2) “Authenticate” has the meaning giventhat term in ORS 79.0102.

(3) “Producer” means a person thatgrows agricultural seed in this state on acommercial basis for a seed dealer.

(4) “Seed bailment contract” means aseed production contract under which theseed dealer retains title to all seed, seedstock and plant life grown or used by theproducer under the terms of the contract.

(5) “Seed dealer” means a person that inthe ordinary course of business contracts tobuy agricultural seed grown in this state bya producer or contracts with a producer forthe growing of agricultural seed in this state.

(6) “Seed delivery” means the date onwhich the seed grower delivers grass seed tothe seed dealer pursuant to a notice from thedealer.

(7) “Seed grower” means a person thatgrows grass seed in this state on a commer-cial basis without entering into a contractwith a seed dealer prior to harvesting of theseed.

(8) “Seed production contract” means awritten agreement between a producer and aseed dealer for the growing of agriculturalseed in this state.

(9) “Seed purchase contract” means awritten agreement for a seed dealer to pur-chase grass seed that has been grown by aseed grower. “Seed purchase contract” doesnot include a seed production contract.

(10) “Variety Not Stated Seed” meansagricultural seed that is sold in unmarkedplastic bags or other unmarked containerswithout any reference to a variety name forthe seed. [2011 c.356 §1]

Note: Section 12, chapter 356, Oregon Laws 2011,provides:

Sec. 12. Sections 1 to 10 of this 2011 Act [576.715to 576.744] and the amendments to ORS 576.710 by sec-tion 11 of this 2011 Act apply to seed production con-tracts, seed purchase contracts and other agreements forthe production of agricultural seed or grass seed formedon or after August 1, 2011. [2011 c.356 §12]

Note: 576.715 to 576.747 were enacted into law bythe Legislative Assembly but were not added to or madea part of ORS chapter 576 or any series therein by leg-islative action. See Preface to Oregon Revised Statutesfor further explanation.



576.718 Seed production contractterms. (1) The following terms apply to seedproduction contracts:

(a) If the contract does not settle theprice of the agricultural seed, the contract isenforceable and the price shall be determinedas described in ORS 72.3050 (1) to (3).

(b) Except as provided in ORS 576.721 (1)or (3), payment to the producer is due nolater than the earliest of the following:

(A) The dates specified in the contract.(B) Thirty days after delivery of the seed.(C) May 1 of the calendar year following

the harvesting of the seed.(c) Unless expressly provided otherwise

in a seed production contract that is authen-ticated by the producer and seed dealer priorto the producer planting the agriculturalseed, the risk of loss and the responsibilityfor the payment of storage fees transfer fromthe producer to the seed dealer upon theearlier of:

(A) The delivery of the seed to the seeddealer pursuant to a notice from the seeddealer; or

(B) The delivery to the seed dealer of testresults establishing that the seed meetsquality standards set forth in the contract.

(d) Unless expressly provided otherwisein a seed production contract that is authen-ticated by the producer and seed dealer priorto the producer planting the agriculturalseed, the minimum period for an initial con-tract is two years. This paragraph does notestablish a minimum period for an extensionor renewal that follows an initial contractperiod.

(2) It is an implied condition of any priceor payment requirement described in subsec-tion (1) of this section that the producer isperforming, or has completed performance, inaccordance with the seed production con-tract and has not otherwise breached thecontract.

(3) Except as provided in subsection (5)of this section, a seed production contractdescribed in this section may contain anyadditional terms agreed to by the parties.

(4) If a seed production contract is ex-tended or renewed, for the extension or re-newal period the parties may:

(a) Subject to paragraph (b) of this sub-section, continue the terms of the originalcontract or agree to new or different con-tract terms; and

(b) Agree to payment due date terms asprovided under this section or under ORS576.721 (3).

(5) A seed production contract may not:

(a) Provide for exclusive venue or juris-diction in another state;

(b) Provide for the terms of the contractto be interpreted under the laws of anotherstate;

(c) Waive the application of ORS 576.715to 576.744 to the contract; or

(d) Authorize a unilateral material mod-ification of the contract.

(6) Subject to ORS 72.2010, subsections(1) and (5) of this section also apply to anonwritten agreement for the production ofagricultural seed.

(7) A term in a seed production contractthat conflicts with subsection (1) or (5) ofthis section is void as a matter of publicpolicy. [2011 c.356 §2]

Note: See notes under 576.715.

576.721 Payment due date provisionsin contracts authenticated prior toplanting. (1) A seed production contract thatis authenticated by the producer and seeddealer prior to the producer planting the ag-ricultural seed may contain payment duedate terms that differ from the payment duedate terms described in ORS 576.718 (1)(b) ifthe contract:

(a) Provides for the price of the seed tobe determined no later than March 15 of thecalendar year following harvesting of theseed;

(b) Requires the seed dealer to make apartial payment no later than March 15 ofthe calendar year following harvesting of theseed that is at least 40 percent of the fullpayment amount; and

(c) States the date by which final pay-ment for the seed is due.

(2) If a seed production contract that isauthenticated by the producer and seeddealer prior to the producer planting the ag-ricultural seed does not contain each pro-vision, requirement and statement describedin subsection (1)(a) to (c) of this section,notwithstanding any contrary payment duedate terms stated in the contract, the pay-ment due date terms of the contract aresubject to ORS 576.718 (1)(b).

(3) An extension or renewal of any seedproduction contract, regardless of when thecontract was authenticated, may containpayment due date terms that differ from thepayment due date terms described in ORS576.718 (1)(b) if the extension or renewalcontains the provision, requirement andstatement described in subsection (1)(a) to (c)of this section. If an extension or renewal ofa seed production contract does not containeach provision, requirement and statementdescribed in subsection (1)(a) to (c) of thissection, notwithstanding any contrary pay-



ment due date terms stated in the extensionor renewal, the payment due date terms forthe extension or renewal are subject to ORS576.718 (1)(b).

(4) It is an implied condition of any pay-ment requirement created as provided underthis section that the producer is performing,or has completed performance, in accordancewith the seed production contract and hasnot otherwise breached the contract. [2011c.356 §3]

Note: See notes under 576.715.576.725 [2001 c.265 §1; repealed by 2011 c.356 §18]

576.726 Title; bailments; liens. (1) Aseed bailment contract or seed purchasecontract does not create a possessory secu-rity interest in goods under ORS chapter 79.For a seed bailment contract, filing, record-ing or notice of the contract is not a re-quirement for establishing, during the termof the contract, the validity of the contractor for establishing and confirming in theseed dealer the title to all seed, seed stockand plant life grown or used by the producerunder the terms of the contract.

(2) Payments due from a seed dealer to aproducer under the terms of a seed bailmentcontract, or due to a seed grower under theterms of a seed purchase contract, are sub-ject to lien under ORS 87.226 and to securityinterests perfected as provided under ORSchapter 79. [2011 c.356 §4]

Note: See notes under 576.715.576.727 [2001 c.265 §2; repealed by 2011 c.356 §18]

576.729 Seed purchase contract terms.(1) The terms of a seed purchase contractmust include:

(a) The estimated date for seed delivery;(b) The terms and estimated date for the

seed dealer to pay the seed grower;(c) The amount of grass seed to be pur-

chased; and(d) The species, cultivars and quality

standards of the grass seed to be purchased.(2) If the seed purchase contract does not

settle the price of the grass seed, the con-tract is enforceable and price shall be deter-mined as described in ORS 72.3050 (1) to (3).A seed purchase contract must require theseed dealer to make payment to the seedgrower within 30 days after seed delivery.However, upon written mutual agreement ofthe seed grower and the seed dealer, thegrower may extend the period available forthe dealer to make payment. [2011 c.356 §5]


576.732 Contract modification; dam-ages for breach. (1) A party to a seed pro-duction contract or seed purchase contractmay not, as a condition of performance, re-quire the other party to agree to a material

modification of the contract. A contractmodification obtained in violation of thissubsection is unenforceable.

(2) In any action to recover damages forbreach of a seed production contract or seedpurchase contract, if the court finds that aparty to the contract failed to act in goodfaith as defined in ORS 71.2010, the courtmay award the prevailing party court costsand reasonable attorney fees. [2011 c.356 §6]


576.735 Seed not meeting qualitystandards. (1) If testing as provided undera seed production contract establishes thatagricultural seed does not meet the qualitystandards set forth in the contract, the pro-ducer may at any time send the test resultsto the seed dealer and inquire whether theseed dealer intends to purchase the seed. If,within 30 days after the seed dealer receivesthe test results and inquiry from the pro-ducer, the seed dealer delivers a responseinforming the producer that the seed dealerintends to purchase the seed, the response isan accord that forms a seed purchase con-tract for the seed purchased under this sub-section. Except as provided in this subsectionregarding price, the parties may establish theterms of the seed purchase contract as pro-vided under ORS 576.729. The price of theseed that is subject to the seed purchasecontract shall be:

(a) Any price stated in the seed produc-tion contract for seed not meeting qualitystandards;

(b) If not determined by the seed produc-tion contract, any price agreed to by theparties; or

(c) If not determined by the seed produc-tion contract or by agreement, the marketprice for seed of the same kind and qualityas the produced seed. However, a seed priceestablished by the use of market price maynot exceed any price established in the seedproduction contract for seed that meetsquality standards.

(2) An accord that creates a seed pur-chase contract under subsection (1) of thissection does not affect the terms of a seedproduction contract for any seed that wasnot described in the test results and inquirysent by the producer.

(3) A producer may send test results andmake an inquiry under subsection (1) of thissection in any manner that documents seeddealer receipt of the test results and inquiry.A seed dealer may send a response undersubsection (1) of this section to a producerin any manner that documents producer re-ceipt of the response.

(4) If, within 30 days after the seed dealerreceives the test results and inquiry from the



producer, the seed dealer has not delivereda response informing the producer that theseed dealer intends to purchase the seed, theseed dealer is deemed to have refused pur-chase of the seed and to have authorized theproducer to sell the seed in a commerciallyreasonable manner as “Variety Not StatedSeed.” This subsection does not authorize thesale of any seed, seed stock or plant life ofa protected variety grown or used by theproducer other than a sale of seed as “Vari-ety Not Stated Seed.” The remedy providedunder this subsection is in addition to anyother remedy available to a producer by law.An authorization for sale arising under thissubsection is in addition to any other condi-tional or unconditional authorization for salethat a seed dealer may grant to a producer.[2011 c.356 §7]


576.738 Seed dealer failure to timelymake payment; fee. (1) If a seed dealer failsto pay a producer for agricultural seed whenpayment is due under a seed production con-tract or fails to pay a seed grower for grassseed when payment is due under a seed pur-chase contract, the producer or seed growermay notify the State Department of Agricul-ture. Upon notification by a producer or seedgrower, the department shall determinewhether payment has been made when due.If the department determines that the seeddealer has not made a payment that is dueunder a seed production contract or seedpurchase contract, the department shall no-tify the seed dealer in writing that the dealerhas 30 days to pay the producer or seedgrower all delinquent amounts plus intereston each delinquent amount at the rate of onepercent per month simple interest from thefinal payment date for that delinquentamount.

(2) A seed production contract or seedpurchase contract may not vary the terms ofthe remedy provided by this section. A seeddealer may appeal the notice given by thedepartment under this section as provided inORS chapter 183. This section does not pre-vent a producer or seed grower from filing anotice of lien against a seed dealer.

(3) If a seed dealer fails to make paymentas required by a notice given by the depart-ment under this section, the departmentshall suspend any seed dealer license issuedto the dealer until the dealer demonstratesto the satisfaction of the department that thedealer is current on all payments due to allproducers and seed growers. An order sus-pending a license under this subsection issubject to ORS chapter 183. However, thedepartment may not suspend a seed dealerlicense under this section using the proce-dure described in ORS 183.430 (2).

(4) A seed dealer that fails to make pay-ment on a seed production contract or seedpurchase contract as required by a noticegiven by the department under this sectionis considered to have authorized the pro-ducer or seed grower to sell in a commer-cially reasonable manner any seed from thecontract that is still in the possession of theproducer or seed grower. This subsectiondoes not prevent a seed dealer from givingconsent to the producer or seed grower byother means and does not supersede theterms of a consent given by other means.

(5) The department may charge a pro-ducer or seed grower a fee, not to exceed$50, for determining whether payment hasbeen made in accordance with the terms ofa seed production contract or seed purchasecontract. The department may charge a pro-ducer or seed grower a fee, not to exceed$200, for notifying a seed dealer in writingregarding the deadline for payment of delin-quent amounts plus interest. [2011 c.356 §8]


576.741 Seed dealer financial assur-ance; rules; license refusal; agents. (1) Asused in this section:

(a) “Officer” means any of the followingindividuals:

(A) A president, vice president, secretary,treasurer or director of a corporation.

(B) A general partner in a limited part-nership.

(C) A manager in a manager-managedlimited liability company.

(D) A member of a member-managed lim-ited liability company.

(E) A trustee.(F) An individual that is an officer as

defined by the State Department of Agricul-ture by rule. A definition of “officer” adoptedby department rule may include individualsnot listed in this paragraph who may exer-cise substantial control over a business.

(b) “Owner” means:(A) A sole proprietor of, partner in or

holder of a controlling interest in an appli-cant; or

(B) Any person that is an owner as de-fined by the department by rule.

(2) The State Department of Agriculturemay adopt rules to require, as a condition ofissuing a seed dealer license under ORS633.700, that each seed dealer provide thedepartment financial assurance for the per-formance by the seed dealer under any seedproduction contract or seed purchase con-tract entered into by the seed dealer.

(3) The department may refuse to issue aseed dealer license to an applicant if the ap-



plicant, any owner or officer of the applicantor any individual exercising substantial con-trol over the seed industry activities of theapplicant:

(a) Is a seed dealer for which the licensehas been suspended under ORS 576.738;

(b) Is or was an owner or officer of aseed dealer at the time of an event that re-sulted in the license of the seed dealer beingsuspended under ORS 576.738; or

(c) Was an individual who exercised sub-stantial control over the seed industry activ-ities of a seed dealer at the time of an eventthat resulted in the license of the seed dealerbeing suspended under ORS 576.738.

(4) An agent that enters into a seed pro-duction contract on behalf of a seed dealeris conclusively presumed to have actual au-thority to establish the performance obli-gations of the seed dealer under the contract.[2011 c.356 §9]


576.744 Rules; mediation services. (1)The Director of Agriculture may adopt rulesfor the administration and enforcement ofORS 576.715 to 576.744.

(2) The director may make mediationservices available through the State Depart-ment of Agriculture for the resolution ofseed production contract disputes and seedpurchase contract disputes. [2011 c.356 §10]


576.747 Reporting adoption of rulesregarding dealer financial assurance. Ifthe State Department of Agriculture adoptsa rule described in ORS 576.741 (2), the de-partment shall report to the next regularsession of the Legislative Assembly followingthe rule adoption regarding the contents ofthe rule and the matters considered by thedepartment in developing the rule. [2011 c.356§13]

Note: See second note under 576.715.

OREGON WINE BOARD; WINE CELLAR


(1) “Grape product” means any juice,must, concentrate or extract made fromvinifera grapes, true or hybrid, whether ornot partially fermented. It does not includealcoholic liquor as defined in ORS 471.001.

(2) “Wine” has the meaning given thatterm in ORS 471.001.

(3) “Wine grape growing” means the cul-tivation in commercial quantities of viniferagrapes in this state.

(4) “Wine making” means the ownershipand control of or the management of a li-censed winery in this state. [1977 c.690 §1; 1983c.651 §1; 1995 c.301 §32; 2003 c.797 §25; 2005 c.22 §404]

576.751 Legislative findings. The Legis-lative Assembly finds and declares that:

(1) The development of world-class winegrape growing and wine making industries isimportant to Oregon as a whole. The healthof the wine grape growing and wine makingindustries affects the well-being of Oregon-ians and Oregon rural economies and envi-ronments.

(2) It is in the public interest to encour-age the orderly growth and development ofsustainable, labor-intensive, value-added agri-cultural industries, such as the wine grapegrowing and wine making industries.

(3) State involvement in the wine grapegrowing and wine making industries must becoordinated to respond to state interests andto encourage appropriate partnership and co-operation between the public and privatesectors in ensuring orderly growth and real-izing statewide objectives for world-classwine grape growing and wine making indus-tries. [2003 c.797 §2]

576.753 Oregon Wine Board. (1) TheOregon Wine Board is established as a semi-independent state agency subject to ORS182.456 to 182.472.

(2) The board shall consist of nine mem-bers appointed by the Governor. In makingappointments, the Governor shall considernominations or recommendations made byorganizations with nominating committeesrepresentative of all major wine industry re-gions of the state.

(3) The term of office for a member isthree years, but a member serves at thepleasure of the Governor. Before the expira-tion of a term, the Governor shall appoint asuccessor whose term begins on January 1next following. A member is eligible for re-appointment.

(4) If a vacancy occurs on the board, theGovernor shall appoint a qualified person toserve the unexpired term.

(5) A person appointed to the board musthave:

(a) Expertise and experience in the Ore-gon wine grape growing or wine making in-dustries; and

(b) A demonstrated ability and dispositionto serve the state’s interests regarding allaspects of the Oregon wine grape growingand wine making industries, including butnot limited to the various types and sizes ofwine grape growing and wine making oper-ations, grape varieties and growing regionswithin the state.



(6) A member of the board must maintainthe following qualifications during the termof office:

(a) Be a bona fide resident of the stateor an officer or principal owner of an entityorganized or registered to do business in thisstate.

(b) Have a demonstrated interest in thepositive development of the Oregon wine in-dustry.

(c) Be actively engaged in wine grapegrowing or wine making.

(7) The members of the board shall electa chairperson and vice-chairperson with du-ties and powers as determined by the board.[2003 c.797 §3]

576.755 [1977 c.690 §2; 1983 c.651 §2; 1987 c.804 §2;repealed by 2003 c.797 §28]

576.756 Board purpose and duties. TheOregon Wine Board shall operate for thepurpose of supporting enological, viticulturaland economic research to develop sustainablebusiness practices for wine grape growingand wine making within Oregon and sup-porting the promotion of Oregon’s winegrape growing and wine making industries.The board shall create and maintain a longterm strategic plan and use that plan toguide the granting and funding decisions ofthe board. To the extent practicable, theboard shall allocate funds and award grantsin a manner that encourages coordinated,cost-effective projects that are integrated toimplement the board’s strategic statewideobjectives for the development of world-classwine grape growing and wine making withinOregon. [2003 c.797 §7]

576.759 Board powers. To carry out thepurposes specified in ORS 576.750 to 576.775,the Oregon Wine Board may:

(1) Appoint officers and enter into agree-ments with consultants, agents and advisers,and prescribe their duties;

(2) Appear on the board’s own behalf be-fore boards, commissions, departments orother agencies of municipal or county gov-ernments, the state government or the fed-eral government;

(3) Procure insurance against any lossesin connection with properties of the board insuch amounts and from such insurers as maybe necessary or desirable;

(4) Accept donations, grants, bequestsand devises, conditional or otherwise, ofmoney, property, services or other things ofvalue, including the interest or earningsthereon but excluding corporate stock, thatmay be received from a government agencyor a public or private institution or person,to be held, used or applied for any or all ofthe purposes specified in ORS 576.750 to

576.775 in accordance with the terms andconditions of the donation, grant, bequest ordevise;

(5) Organize, conduct, sponsor, cooperatewith and assist the private sector and otherstate agencies in the conduct of conferencesand tours relating to the wine grape growingand wine making industries;

(6) Provide and pay for advisory servicesand technical assistance that the board findsnecessary or desirable; and

(7) Exercise any other powers necessaryfor the operation and functioning of theboard under ORS 576.750 to 576.775. [2003 c.797§5; 2005 c.22 §405]

576.760 [1977 c.690 §3; 1983 c.651 §3; 1987 c.804 §4;repealed by 2003 c.797 §28]

576.763 State wine cellar; sources;uses. The Oregon Wine Board shall establisha state wine cellar by purchasing or receiv-ing donations of wines made in this statefrom fruit or grapes grown in this state.Wines collected in the state wine cellar maybe:

(1) Held as standards to compare againstother wines to develop and improve Oregonviticultural and enological practices.

(2) Sold to state governmental agenciesfor service at official governmental enter-tainment functions.

(3) Sold to the Governor and to the ad-ministrative heads of state agencies on offi-cial government business to present as giftswhen required by protocol or social custom.

(4) Displayed and offered for tasting inconnection with promotional campaigns toencourage the purchase of Oregon wines.[1985 c.117 §2; 2003 c.797 §26]

576.765 [1977 c.690 §6; 1983 c.651 §5; 1987 c.804 §3;1997 c.249 §185; repealed by 2003 c.797 §28]

576.766 Rules; board employees. (1) Inaccordance with applicable provisions of ORSchapter 183, the Oregon Wine Board mayadopt rules necessary for the administrationof ORS 576.750 to 576.775.

(2) Notwithstanding ORS 182.460 and576.753 (1), employees of the Oregon WineBoard are not eligible for inclusion withinthe Public Employees Retirement System.[2003 c.797 §6; 2005 c.22 §406]

576.768 Strategic plan; budget; rules.(1) The report submitted by the Oregon WineBoard under ORS 182.472 must include a de-scription of the long term strategic plan cre-ated by the board and a description of theprogress made in implementing the statewidestrategic objectives of the board during themost recent biennium.

(2) Notwithstanding ORS 182.462:(a) The board shall prepare and submit

annual plans and a budget recommended by



the board for promotion and for researchduring the next fiscal year.

(b) The board shall adopt rules specifyingthe procedures, criteria and timelines for thepreparation and approval of the annual plansand budget for promotion and for research.

(c) The Director of the Oregon BusinessDevelopment Department shall review thebudget and plans submitted under this sec-tion. In reviewing the annual plans and bud-get, the director shall consider whether theinformation supplied by the board is factualand consistent with ORS 576.750 to 576.775and the positive development of the Oregonwine grape growing and wine making indus-tries. The director shall either approve thebudget and plans prior to the commencementof the next fiscal year or disapprove and re-turn the budget and plans to the board withconditions necessary for approval prior tothe commencement of the next fiscal year. Inreviewing the budget and plans, the directormay consult with and receive coordinatedsupport from:

(A) The State Department of Agriculture;(B) The Oregon Tourism Commission;(C) The Oregon University System;(D) The Department of Community Col-

leges and Workforce Development; and(E) The Oregon Liquor Control Commis-

sion. [2003 c.797 §11; 2005 c.22 §407; 2009 c.762 §88]

576.771 Payment of tax; delayed pay-ment; records; inspections and audits. (1)If a person selling or providing grape productto a winery performs part of the processingfunction of a winery, the person shall reportthe sale or provision of the grape productand pay the tax imposed under ORS 473.045(5).

(2) A person or winery required to pay atax under ORS 473.045 (5) shall keep accu-rate records sufficient to enable the OregonLiquor Control Commission to determine byinspection and audit the accuracy of thetaxes paid or due the Oregon Wine Boardand of reports made or due to the commis-sion.

(3) The commission or a designee of thecommission may inspect and audit the re-cords referred to in subsection (2) of thissection for the purpose referred to in sub-section (2) of this section.

(4) A person or winery may not refuse topermit an inspection and audit under sub-

section (3) of this section during businesshours.

(5) In addition to the penalties prescribedin ORS 473.992, a person or winery that de-lays transmittal of tax payments under ORS473.045 (5) beyond the due date specified inORS 473.045 shall pay five percent of theoverdue amount for the first full or partialmonth of delay and one percent of the over-due amount for each full or partial month ofdelay thereafter.

(6) If a winery willfully refuses to turnover tax moneys withheld under ORS 473.045(5), the winery shall pay an additionalamount equal to twice the amount of the taxmoneys not turned over. [2003 c.797 §8]

576.775 Disposition of moneys; re-search and promotion. Moneys received onbehalf of the Oregon Wine Board pursuantto ORS 473.030 (4) and 473.045 shall be de-posited into the account created by the boardunder ORS 182.470 and are continuously ap-propriated to the board as provided in ORS182.470, exclusively for use by the board incarrying out the provisions of ORS 576.750to 576.775. The board shall allocate a portionof the moneys received from sources otherthan fees toward research in enology andviticulture and toward promotion of the Ore-gon wine grape growing and wine makingindustries, including administrative costs as-sociated with either category. [2003 c.797 §10;2005 c.22 §408]

576.800 [1997 c.9 §1; renumbered 571.350 in 2009]576.805 [1997 c.9 §2; renumbered 571.355 in 2009]576.810 [1997 c.9 §3; 1999 c.105 §4; renumbered

571.360 in 2009]576.815 [1997 c.9 §6; renumbered 571.365 in 2009]576.820 [1997 c.9 §4; repealed by 1999 c.105 §3]576.821 [1999 c.105 §2; renumbered 571.370 in 2009]

PENALTIES576.990 [Repealed by 1953 c.119 §2]

576.991 Penalties. (1) Violation of theprovisions of ORS 576.024 is a Class B vio-lation.

(2) Violation of any provision of ORS576.051 to 576.455 is a Class C misdemeanor.[1953 c.489 §38; subsection (1) enacted as 1955 c.572 §6;subsection (4) of 1957 Replacement Part enacted as 1957c.447 §19; subsection (5) of 1957 Replacement Part en-acted as 1957 c.447 §17; 1959 c.596 §81; subsection (2)enacted as 1967 c.388 §3; 1983 c.740 §224; subsection (4)of 1997 Edition enacted as 1997 c.9 §5; 1999 c.1051 §203;subsection (4) renumbered 571.993 in 2009; 2011 c.597§237]


TITLE 47 AGRICULTURAL MARKETING AND WAREHOUSING … · 576.726 AGRICULTURAL MARKETING AND...

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Transcript of TITLE 47 AGRICULTURAL MARKETING AND WAREHOUSING … · 576.726 AGRICULTURAL MARKETING AND...