71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
Senate Bill 943
Sponsored by Senator MESSERLE; Representative LEE (at the request
of Oregon Hazelnut Commission, Western Oregon Onion Commission,
Oregon Processed Prune and Plum Commission, Oregon Trawl
Commission, Oregon Salmon Commission, Oregon Dungeness Crab
Commission, Oregon Albacore Commission, Oregon Fryer
Commission, Oregon Tall Fescue Commission, Oregon Fine Fescue
Commission, Oregon Bartlett Pear Commission, Oregon Clover Seed
Commission, Oregon Alfalfa Seed Commission, Highland Bent Grass
Commission, Oregon Ryegrass Seed Growers Commission, Oregon
Dairy Products Commission)
CHAPTER ................
AN ACT
Relating to commodity assessments; creating new provisions;
amending ORS 576.171, 576.325 and 576.555; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) Notwithstanding any defect existing at the
time a commodity assessment was assessed or levied, the
assessment rates, assessment limits and assessment bases used by
commodity commissions organized pursuant to ORS 576.051 to
576.584, 577.210, 577.710, 578.030 or 579.030 in assessing and
levying commodity assessments prior to the effective date of this
2001 Act are hereby validated, and the resulting commodity
assessments by those commissions are declared to have been
imposed using lawfully determined assessment rates, assessment
limits and assessment bases.
(2) Subsection (1) of this section does not affect an action at
law challenging the use of an assessment rate, assessment limit
or assessment basis by a commodity commission if the action was
filed with a court of competent jurisdiction prior to May 1,
2001. + }
SECTION 2. { + (1) A commodity producer may dispute the amount
of a commodity assessment levied against the producer under ORS
576.325 (3)(a) if the total assessment levied against the
producer during an assessment period established by commission
rule exceeds one and one-half percent of the total dollar value
received by the producer for the raw commodity during that
assessment period.
(2) A commodity producer who disputes the amount of a commodity
assessment as provided under subsection (1) of this section must
file any challenge to the assessment with the appropriate
commodity commission no later than 60 days after the close of the
assessment period. The challenge must be on a form provided by
the State Department of Agriculture. A commodity commission shall
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process a challenge under this section as provided by rules
described in subsection (4) of this section.
(3) A commodity producer filing a challenge under this section
bears the burden of proving the total dollar value received by
the producer during the assessment period. If the producer acts
as a handler or processor for all or part of the producer's
commodity production, the producer also bears the burden of
proving that the prices paid to the producer are equivalent to
prices paid in arm's-length transactions. A commodity commission
shall refund the amount of the assessment that the producer
proves is in excess of one and one-half percent of the total
dollar value received by the producer for the raw commodity
during the assessment period.
(4) The department shall adopt necessary and proper uniform
rules for commodity commissions to carry out this section. The
department rules shall include, but need not be limited to,
procedures for the filing, processing and formal or informal
resolution of challenges and for determining commodity prices
paid in arm's-length transactions. A commodity commission shall
adopt rules establishing assessment periods and may adopt
supplemental rules that do not conflict with the rules of the
department. + }
SECTION 3. ORS 576.171 is amended to read:
576.171. (1) There is created the Oregon Albacore Commission.
Except as provided in subsection (3) of this section, the
commission shall be considered to have been created in all
respects pursuant to ORS 576.051 to 576.584 and is vested with
all the duties, functions, powers, rights and liabilities of
commissions created pursuant to ORS 576.051 to 576.584. All
producers and handlers of albacore are subject to the duties,
rights and liabilities provided in ORS 576.051 to 576.584.
(2) The commission shall consist of seven members appointed by
the Director of Agriculture. Five members shall be producers of
albacore and two members shall be licensed fish processors who
are not producers. In making appointments to the commission, the
director shall consider recommendations made to the director by
producers of albacore, producers' organizations, fish processors
or processors' organizations.
{ - (3) Notwithstanding the assessment limit in ORS 576.325
(2), the commission may: - }
{ - (a) Assess, levy and collect an assessment pursuant to
ORS 576.325 in an amount not to exceed three percent of the
average unit price of albacore received by the producer in the
boat after catch, and before packaging or processing, during the
three years immediately preceding; and - }
{ + (3) Notwithstanding the assessment limit in ORS 576.325
(3):
(a) If the commission assesses on a unit basis, the assessment
may not exceed three percent of the industry average unit price.
The commission may determine the industry average unit price by
considering data and estimates of the United States Department of
Agriculture, Oregon State University or other reliable sources.
(b) If the commission assesses on a percentage of dollar value
basis, the assessment may not exceed three percent of the dollar
value received by a producer for the raw commodity. If the dollar
value received by a producer is not otherwise determinable, the
commission may establish the dollar value based on the industry
average unit price for that year for the raw commodity. + }
{ - (b) - } { + (4) In addition to any other assessment
under this section, the commission may + } assess, levy and
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collect an assessment from all first purchasers of albacore
{ - in an amount not to exceed three percent of the average unit
price of albacore received by the producer in the boat after
catch, and before packaging or processing, during the three years
immediately preceding. The assessment shall be levied and
assessed to the first purchaser at the time of sale - } . { +
The commission may collect the assessment from the first
purchaser at the time of sale. The commission may establish the
assessment amount, but the assessment amount may not exceed the
limitations on assessments described in subsection (3) of this
section. + }
SECTION 4. ORS 576.325 is amended to read:
576.325. { - (1)(a) - } { + (1) As used in this section,
'industry average unit price' means the average unit price for
the raw commodity within the industry. Unless provided otherwise,
' industry average unit price' includes prices that are
calculated using a one-year, two-year or three-year average and
data from the most recent complete year or years preceding the
year of determination.
(2)(a) + } { - The - } { + A + } commission may assess,
levy and collect an assessment, the amount of which the
commission shall determine, on all units or animals of the
commodity grown or produced in this state, or procured from its
rivers or the offshore waters, but not the Columbia River, for
handling within this state, and sold in commercial channels; but
no such assessment shall apply to any transaction which occurred
prior to the date the commission order assessing such assessment
was entered.
(b) { - The - } { + A + } commission may assess, levy and
collect a differential assessment, the amount of which the
commission shall determine, based on the intended use, type or
variety of the commodity.
(c) All casual sales of the commodity made by the producer
direct to the consumer shall be exempt from the assessment.
{ - (2) - } { + (3) + } The amount of the assessment
provided for in subsection { - (1) - } { + (2) + } of this
section { - shall - } { + is limited as follows:
(a) If a commission assesses on a unit basis, the assessment
may + } not exceed one and one-half percent of the
{ + industry + } average unit price { + . The commission may
determine the industry average unit price by considering data and
estimates of the United States Department of Agriculture, Oregon
State University or other reliable sources.
(b) If a commission assesses on a percentage of dollar value
basis, the assessment may not exceed one and one-half percent of
the dollar value + } received by { - the - } { + a + }
producer { - on the farm after severance, or in the boat after
catch, and before packaging or processing, during the three years
immediately preceding, unless a greater assessment, which in no
case shall exceed 10 percent, is specifically provided: - }
{ + for the raw commodity. If the dollar value received by a
producer is not otherwise determinable, the commission may
establish the dollar value based on the industry average unit
price for that year for the raw commodity.
(4) Notwithstanding subsections (3) and (5) of this section, a
commission may provide for a specific assessment limit, not to
exceed 10 percent of the industry average unit price or 10
percent of the dollar value received by a producer, depending on
the assessment basis. A commission must establish a specific
assessment limit: + }
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(a) In the petition provided for in ORS 576.055; or
(b) By a referendum held under ORS 576.555 to 576.575.
{ - (3) - } { + (5) + } A commission of livestock producers
may, { - in lieu - } { + instead + } of the levy and
assessment procedures provided in subsections { - (1) and
(2) - } { + (2) and (3) + } of this section, provide
{ - that an identical - } { + for an + } assessment
{ - shall - } { + to + } be levied and collected against each
animal, but { - in such case - } the assessment
{ - shall - } { + may + } not exceed one and one-half percent
of the { + industry + } average price per animal received by
livestock producers { - during the three years immediately
preceding, for the class of animals in Oregon for which the
commission was created, such as cattle, sheep or swine, - } { +
for that year for the same class of animals + } unless a greater
assessment { - , which in no case shall exceed 10 percent, - }
is specifically provided as authorized by { - paragraph (a) or
(b) of subsection (2) - } { + subsection (4) + } of this
section. The commission { - in ascertaining - } { + may
determine + } the { + industry + } average price { + per
animal + } received by producers { - may take into
consideration - } { + by considering + } data and estimates of
the United States Department of Agriculture, Oregon State
University and other reliable sources { + . + } { - for the
three calendar years immediately preceding the date of the
determination. - }
{ - (4) - } { + (6) + } { - The - } { + A commission
shall assess and levy an + } assessment { - shall be levied and
assessed - } { + under subsections (2) to (5) of this
section + } to the producer at the time of sale { + . + }
{ - and shall be deducted by - } The first purchaser { + shall
deduct the assessment + } from the { - price - } { +
amount + } paid to the producer { + and remit the assessment to
the commission. Producers that perform the handling or processing
function on all or part of their production of a commodity shall
remit the assessment directly to the commission + }.
SECTION 5. ORS 576.555 is amended to read:
576.555. (1) A referendum may be held once annually for any one
or more of the following purposes:
(a) Increasing or decreasing the maximum permissible assessment
under ORS { - 576.325, which in no case shall exceed 10
percent. - } { + 576.325 (4). + }
(b) Limiting or expanding the powers and duties of the
commission; but no powers and duties shall be granted to or
imposed upon the commission which are not permitted under ORS
576.051 to 576.584.
(c) Changing any matter which was provided for in the petition
under ORS 576.055 (2)(a), (b) or (d), or which was provided for
by a prior referendum; but such change shall be within the limits
permitted under ORS 576.051 to 576.584.
(d) Providing for the election, and the election, of
commissioners instead of their appointment by the Director of
Agriculture, or providing for the appointment of commissioners by
the director instead of their election by referendum.
(2) A referendum on any proposition referred to in subsection
(1) of this section may be held at the same time as a referendum
provided for in ORS 576.505.
SECTION 6. { + This 2001 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
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is declared to exist, and this 2001 Act takes effect on its
passage. + }
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Passed by Senate May 1, 2001
Repassed by Senate June 8, 2001
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 1, 2001
...........................................................
Speaker of House
Enrolled Senate Bill 943 (SB 943-B) Page 5
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled Senate Bill 943 (SB 943-B) Page 6