Chapter 487 Oregon Laws 2003
AN ACT
SB 673
Relating to Oregon seafood cooperatives; creating new provisions; amending ORS 62.845, 646.515, 646.535 and 646.740; and declaring an emergency.
Be It Enacted by the People of the State of
Oregon:
SECTION 1. ORS 62.845 is amended to read:
62.845. (1) It is the public policy of the State of Oregon to encourage the efficient production and distribution of agricultural, seafood and other products derived from natural resources or labor resources of this state. Accordingly, a cooperative that operates in compliance with the provisions of this chapter and that does not during its fiscal year market products for nonmember patrons in an amount greater in value than the products marketed for its members may not be deemed to be a conspiracy or combination in restraint of trade, or an illegal monopoly; nor shall the contracts of such cooperative authorized by this chapter, whether or not required by the cooperative as a condition of membership or of doing business with the cooperative, be construed as an unlawful restraint of trade, or as part of a conspiracy or combination to accomplish an improper or illegal purpose or act.
(2) A negotiating committee of
dealers, as defined in ORS 646.515 (3), that operates in compliance with the
provisions of ORS 62.848 or section 3 of
this 2003 Act [to negotiate with a
cooperative the price for which the members of the cooperative will sell
agricultural products to be produced by the members, or the price to be paid
for the services of producing agricultural products by the members or under the
control of the members,] may not be deemed to be engaged in unlawful
restraint of trade or to be participants in a conspiracy or combination to
accomplish an improper or illegal purpose or act when the negotiating committee negotiates with a cooperative:
(a)
The price for which the members of the cooperative will sell agricultural
products to be produced by the members;
(b)
The season starting price for which the members of the cooperative will sell
seafood to be harvested by the members;
(c)
The price to be paid for the services of producing agricultural products by the
members or under the control of the members; or
(d) The season starting price for the services of harvesting seafood products by the members or under control of the members.
SECTION 2. Section 3 of this 2003 Act is added to and made a part of ORS chapter 62.
SECTION
3. (1) As used in this section:
(a)
“Dealer” has the meaning given that term in ORS 646.515.
(b)
“Parties” or “party” means Oregon seafood harvesters, Oregon seafood harvester
associations, Oregon seafood harvester cooperatives or dealers that are
participants in the state regulatory program described in subsection (2) of
this section.
(c)
“Regulatory program” means the state regulatory program described in subsection
(2) of this section that is actively supervised by the Director of Agriculture
and that authorizes parties to engage in certain collective bargaining and
negotiations to establish the price of Oregon seafood to be harvested and sold
to dealers in the future.
(d)
“Season starting price” means the price at which the parties agree to sell
Oregon seafood and at which the parties agree to pay for Oregon seafood at the
onset of a seafood harvesting season and for as long a period as the parties to
the negotiations determine.
(2)(a)
It is the intent of this section and ORS 646.535 (2) and 646.740 (11) to
displace competition with a regulatory program in the Oregon seafood harvesting
industry to a limited degree. The regulatory program is intended to grant
immunity from federal and state antitrust laws to Oregon seafood harvesters and
dealers for the limited purpose of allowing the harvesters and the dealers to
bargain collectively and to arrive at a negotiated season starting price for
the sale of Oregon seafood by the harvesters to the dealers. The activities of
any party that comply with the provisions of this section may not be considered
to be in restraint of trade, a conspiracy or combination or any other unlawful
activity in violation of any provision of ORS 646.705 to 646.826 or federal
antitrust laws.
(b)
An Oregon seafood harvester cooperative or Oregon seafood harvester association
may negotiate with one or more dealers to establish the season starting price
at which members of the cooperative or association will sell Oregon seafood to
be harvested by its members or under the control of its members. The dealers
may negotiate the season starting price of Oregon seafood through a committee
that sets forth the views of the dealers and votes on any issues being
negotiated as authorized by this section, including the season starting price
of Oregon seafood. Participation by a dealer in season starting price
negotiations is voluntary.
(c)
If the dealers negotiate the season starting price through a committee under
paragraph (b) of this subsection, nonparticipating dealers are not bound by the
acts of the committee.
(d)
Any agreements that arise from negotiations conducted under this section are
binding only on the parties that participate in the negotiations and agree to
be bound.
(e)
The Director of Agriculture is authorized to actively supervise the conduct of
an Oregon seafood harvester cooperative organized under this chapter, a
representative committee of dealers and any Oregon seafood harvester
association in establishing the season starting price of Oregon seafood to be
harvested and sold to dealers at a future date. The director is authorized to
supervise the negotiations between the parties, review the season starting
prices established by the negotiations and approve the season starting prices
proposed by the parties before the season starting prices take effect. The
director must approve the proposed season starting prices and any adjustments to
previously approved season starting prices before the season starting prices
may be implemented.
(f)
The director may compel the parties to take whatever action the director
considers necessary to:
(A)
Ensure that the parties are engaging in conduct that is authorized under this
section;
(B)
Ensure that the policies of this state are being fulfilled under the regulatory
program; and
(C)
Enjoin conduct by any of the parties that is not authorized by the director or
conduct that the director finds does not advance the interests of this state in
carrying out the regulatory program.
(g)
The director may adopt rules to carry out the director’s authority under this
section.
(h)
The director may designate persons as the director deems necessary to carry out
the responsibility of actively supervising the conduct of the parties,
including serving as intermediaries between prospective parties. Persons
designated by the director must be employees of the State Department of
Agriculture.
(i) The director by rule shall set and collect fees from the parties who are participants in a regulatory program. The fees shall be deposited in the Department of Agriculture Account established under ORS 561.150.
SECTION 4. ORS 646.515 is amended to read:
646.515. As used in ORS 646.515 to 646.545, unless the context requires otherwise:
(1) “Agricultural commodity” [or “commodities”] means any and all agricultural, horticultural, viticultural and vegetable products produced in this state, either in their natural state or as processed by a producer for the purpose of marketing such product, including bees and honey, but not including timber or timber products.
(2) “Cooperative bargaining association” means:
(a) An association of producers formed or operated pursuant to ORS chapter 62 with the purpose of group bargaining with respect to the sale of any agricultural commodity [or commodities] or Oregon seafood commodity.
(b) A fishermen’s marketing association or fishermen’s trade association organized under ORS chapter 62 or 65.
(3)(a) “Dealer” means, except as provided in paragraph (b) of this subsection, any person or agent of the person who purchases or contracts to purchase an agricultural commodity or Oregon seafood commodity from a producer or agent of the producer, for the purpose of packing, processing or marketing such commodity.
(b) “Dealer” [shall] does not include any organization operating as an agricultural cooperative [corporation] or Oregon seafood harvester cooperative.
(4) “Oregon seafood commodity” means any food fish as defined in ORS 506.011 over which the State Fish and Wildlife Commission has jurisdiction.
[(4)] (5) “Producer” means a person engaged in the business of producing agricultural commodities or harvesting Oregon seafood commodities.
SECTION 5. ORS 646.535 is amended to read:
646.535. (1) A dealer may not knowingly engage in the following unfair trade practices:
(a) Interfere with, restrain, coerce or boycott a producer in the exercise of the rights guaranteed pursuant to ORS 646.525;
(b) Discriminate against a producer with respect to price or other terms of purchase of raw agricultural commodities or Oregon seafood commodities, by reason of the producer’s membership in or contract with cooperative bargaining associations; or
(c) Pay or loan money, or give any other thing of value to a producer as an inducement or reward for refusing to or ceasing to belong to a cooperative bargaining association.
(2) A perennial ryegrass seed dealer or an Oregon seafood commodity dealer who participates in negotiating committee activities described in ORS 62.848 or section 3 of this 2003 Act does not violate subsection (1) of this section.
SECTION 6. ORS 646.740 is amended to read:
646.740. The provisions of ORS 136.617, 646.705 to 646.805 and 646.990 may not be construed to make illegal:
(1) The activities of any labor organization or individual working men and women permitted by ORS chapters 661 to 663;
(2) The right of producers [of agricultural commodities], as defined in ORS 646.515, and commercial fishermen to join, belong to and act through cooperative bargaining associations under ORS 646.515 to 646.545. For the purpose of this subsection, activities of cooperative bargaining associations and their members that are lawful under 15 U.S.C. 521 and 522 or 7 U.S.C. 291 and 292 are lawful under ORS 646.515 to 646.545;
(3) The activities of any person subject to regulation by the Public Utility Commission under ORS chapters 756 to 759 to the extent that such activities are so regulated and are lawful thereunder or the activities of any person conducted or carried out in accordance with any agreement or procedure approved as provided in 49 U.S.C. 5b or 5c;
(4) The activities of any person subject to regulation by the Director of the Department of Consumer and Business Services under ORS chapters 731 to 750 to the extent that such activities are so regulated and are lawful thereunder;
(5) The activities of any state or national banking institution or savings and loan association, and of any other lending institution, to the extent that such activities are regulated by the Director of the Department of Consumer and Business Services under ORS chapters 706 to 725 and are lawful thereunder;
(6) Any other activity specifically authorized under state law or local ordinance;
(7) The activities of any metropolitan service district formed under ORS chapter 268 and the activities of any person subject to regulation by a metropolitan service district formed under ORS chapter 268 to the extent that those activities are so regulated and are lawful thereunder;
(8) The activities of any person conducted or carried out in accordance with the terms and conditions of a certificate issued pursuant to 15 U.S.C. 4001 to 4021;
(9) The activities of a health care provider authorized by and in accordance with ORS 442.700 to 442.760 to the extent the activities are regulated and lawful under ORS 442.700 to 442.760; [or]
(10) The negotiating activities of a
dealer in agricultural commodities that are carried out and supervised under
ORS 62.848; or
(11) The negotiating activities of a dealer in Oregon seafood commodities that are carried out and supervised under section 3 of this 2003 Act.
SECTION 7. Section 3 of this 2003 Act and the amendments to ORS 62.845, 646.515, 646.535 and 646.740 by sections 1, 4, 5 and 6 of this 2003 Act apply only to negotiations begun on or after the effective date of this 2003 Act.
SECTION 8. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.
Approved by the Governor June 26, 2003
Filed in the office of Secretary of State June 27, 2003
Effective date June 26, 2003
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