Bill Text: OR HB2616 | 2013 | Regular Session | Enrolled


Bill Title: Relating to the Oregon Wheat Commission.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2013-05-13 - Chapter 93, (2013 Laws): Effective date January 1, 2014. [HB2616 Detail]

Download: Oregon-2013-HB2616-Enrolled.html


     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

                            Enrolled

                         House Bill 2616

Sponsored by Representative CLEM (at the request of Oregon Wheat
  Commission) (Presession filed.)

                     CHAPTER ................

                             AN ACT

Relating to the Oregon Wheat Commission; creating new provisions;
  and amending ORS 578.010, 578.020, 578.025, 578.070, 578.090,
  578.105, 578.151, 578.211 and 578.216.

Be It Enacted by the People of the State of Oregon:

  SECTION 1.  { + Sections 2 to 5 of this 2013 Act are added to
and made a part of ORS chapter 578. + }
  SECTION 2.  { + (1) If a first purchaser of grain lives or has
an office in another state or is a federal or other governmental
agency, the producer shall report all sales made to the first
purchaser on forms provided by the Oregon Wheat Commission and
pay the assessment moneys directly to the commission, unless the
first purchaser voluntarily makes the proper deduction and remits
the proceeds to the commission.
  (2) If a producer performs the handling or processing functions
for all or a part of grain production that normally would be
performed by another person as first purchaser, the producer
shall report sales of the grain from the production of the
producer on forms provided by the commission and pay the
assessment moneys directly to the commission, unless the first
purchaser voluntarily makes the proper deduction and remits the
proceeds to the commission. + }
  SECTION 3.  { + (1) In addition to the penalty established in
ORS 578.990, any person who delays transmittal of assessment
moneys beyond the time set by the Oregon Wheat Commission shall
pay a civil penalty to the commission of 10 percent of the amount
due and shall also pay one and one-half percent interest per
month on the unpaid balance of the assessment.
  (2) The commission may waive the penalty and interest described
in subsection (1) of this section upon a showing of good cause.
  (3) Notwithstanding subsection (1) of this section, if an
assessment is collected pursuant to a federal marketing order or
agreement, the commission may establish a penalty or interest
rate that is consistent with that order or agreement. + }
  SECTION 4.  { + (1) If a person responsible for the transmittal
of assessment moneys to the Oregon Wheat Commission fails to
relinquish assessment moneys collected, the person shall pay a
civil penalty to the commission equal to twice the amount of the
unrelinquished assessment moneys.
  (2) The commission may commence a civil action or utilize any
other available legal or equitable remedy to collect an

Enrolled House Bill 2616 (HB 2616-INTRO)                   Page 1

assessment or civil penalty, obtain injunctive relief or obtain
specific performance under this chapter.
  (3) If the person responsible for the transmittal of assessment
moneys is a corporation, all directors and officers of the
corporation are personally liable for a failure to relinquish the
assessment moneys collected by the corporation.
  (4) If the commission obtains a favorable judgment in an action
or suit under subsection (2) of this section, the court shall
award the commission costs and reasonable attorney fees.
  (5) Unless the person required to pay an assessment and the
person responsible for collecting the assessment are related
businesses, the commission may not collect from the person
required to pay the assessment any amount deducted by the person
responsible for collecting the assessment and due and owing to
the commission. + }
  SECTION 5.  { + (1) As used in this section:
  (a) 'Depository' has the meaning given that term in ORS
295.001.
  (b) 'Financial institution' has the meaning given that term in
ORS 706.008.
  (2) Moneys that a person collects or receives from an
assessment levied by the Oregon Wheat Commission and other moneys
that the commission receives must be paid to the authorized agent
of the commission and, except as provided under subsection (3) of
this section, promptly deposited into an account established by
the commission in a depository that is insured by the Federal
Deposit Insurance Corporation or the National Credit Union Share
Insurance Fund. In a manner consistent with the requirements of
ORS 295.001 to 295.108, the chairperson and vice chairperson of
the commission shall ensure that sufficient collateral secures
any amount of funds on deposit that exceeds the limits of the
Federal Deposit Insurance Corporation's or the National Credit
Union Share Insurance Fund's coverage.
  (3) The commission may deposit moneys into an account
established by the commission in a financial institution that is
not a depository if the amount on deposit is at all times fully
insured by the Federal Deposit Insurance Corporation, the
National Credit Union Share Insurance Fund or another appropriate
federal regulatory body responsible for insuring amounts on
deposit with the financial institution for the benefit of
depositors.
  (4) Subject to approval by the Director of Agriculture, the
commission may invest moneys the commission collects or receives.
Except as provided in subsection (5) of this section, investments
the commission makes are:
  (a) Limited to investments described in ORS 294.035;
  (b) Subject to the investments maturity date limitations
described in ORS 294.135; and
  (c) Subject to the conduct prohibitions listed in ORS 294.145.
  (5) In addition to or in lieu of investments described in
subsection (4) of this section, the commission may invest in the
investment pool described in ORS 294.805. For purposes of ORS
294.805 to 294.895, the commission is a public corporation and
the secretary-treasurer of the commission is a local government
official.
  (6) Interest earned from any moneys a commission deposits or
invests under this section is available to the commission in a
manner consistent with the commission's annual budget.
  (7) Moneys may not be withdrawn from or paid out of an account
established by the commission except upon order of the

Enrolled House Bill 2616 (HB 2616-INTRO)                   Page 2

commission, and upon checks or other orders on the account that
are signed by the secretary-treasurer or by another commission
member designated by the commission and countersigned by the
chairperson or vice chairperson or by another member designated
by the commission. The secretary-treasurer of the commission
shall keep a receipt, voucher or other written record, showing
clearly the nature and items covered by each check or other
order. + }
  SECTION 6. ORS 578.010 is amended to read:
  578.010. As used in this chapter, unless the context requires
otherwise:
  (1) 'Commercial channels' means the sale of   { - wheat or
other grains - }  { +  grain + } for use as food, feed  { - , - }
 { +  or + } seed, or any industrial or chemurgic use, when sold
to any commercial buyer, dealer, processor  { - , - }  { +
or + } cooperative, or to any person, public or private, who
resells any   { - wheat or other grains - }   { + grain + } or
product produced from   { - wheat or other grains - }  { +
grain + }.
  (2) 'Commission' means the Oregon Wheat Commission.
  (3) 'Director' means the Director of Agriculture.
  (4) 'First purchaser' means any person, corporation,
association or partnership that buys   { - wheat or other
grains - }  { +  grain + } from the   { - grower - }  { +
producer + } in the first instance, or any lienholder, public or
private, who may possess   { - wheat or other grains - }  { +
grain + } from the   { - grower - }  { +  producer + } under any
lien.
   { +  (5) 'Grain' means barley, canola, corn, flaxseed,
mustard, oats, rye, soybeans, grain sorghum, triticale, wheat and
any other cereal grain for which standards are established or
followed by the State Department of Agriculture. + }
    { - (5) - }  { +  (6) + }   { -  ' Grower' - }  { +
'Producer' + } means:
  (a) Any landowner personally engaged in growing   { - wheat or
other grains - }  { +  grain + };
  (b) A tenant of the landowner personally engaged in growing
  { - wheat or other grains - }  { +  grain + };
  (c) Both the owner and the tenant jointly; and
  (d) Any other person, partnership, association, corporation,
cooperative, trust, sharecropper or other business units, devices
or arrangements engaged in growing   { - wheat or other
grains - }  { +  grain + }.
    { - (6) - }  { +  (7) + } 'Sale' includes any pledge or
mortgage of   { - wheat or other grains - }  { +  grain + },
after harvest, to any person, public or private.
  SECTION 7. ORS 578.020 is amended to read:
  578.020. (1) The Legislative Assembly finds and declares that:
  (a) It is in the interest of all the people that the abundant
natural resources of Oregon be protected, fully developed and
uniformly distributed.
  (b) The growing of   { - wheat and other grains - }  { +
grain + } is an agricultural industry that contributes to the
economic welfare of Oregon.
  (c) Because a surplus of   { - wheat and other grains - }  { +
grain + } is grown in this state and, during recurrent years,
that surplus has been in excess of all available markets, it is
necessary that additional markets for   { - wheat and other
grains - }  { +  grain + } be found in order to provide

Enrolled House Bill 2616 (HB 2616-INTRO)                   Page 3

profitable enterprises for   { - growers - }  { +  producers + }
and to provide employment for labor and industry dependent upon
  { - wheat and other grains - }  { +  grain + }.
  (2) The purpose of this chapter is to promote the public health
and welfare by providing means for the protection and
stabilization of industry for   { - wheat and other grains - }
 { + grain produced + } in this state.
  SECTION 8. ORS 578.025 is amended to read:
  578.025. (1) The State Department of Agriculture shall:
  (a) Monitor the practices or methods used or proposed for use
by the Oregon Wheat Commission in carrying out the goals and
needs disclosed by the budget of the commission;
  (b) Promote cooperation among the commission, commodity
commissions and the Oregon Beef Council and assist in the
interchange of information and experience among those entities;
  (c) Carry out the assigned organizational procedures under this
chapter, including providing input to the Director of Agriculture
for carrying out the duties of the director regarding the
appointment and removal of members of the commission;
  (d) Review budgets submitted to the director by the commission;
and
  (e) Adopt rules to carry out the provisions of this chapter.
  (2) Except as provided in ORS 578.216, the department shall
review plans and projects recommended by the commission for the
promotion of   { - wheat or other grains - }  { +  grain + }, and
for advertising and research and the dissemination of consumer
and industry information for   { - wheat and other grains - }
 { +  grain + }. The department shall conduct the review to
ensure that the plan or project information is:
  (a) Factual;
  (b) Not disparaging to commodities; and
  (c) Consistent with the purposes of this chapter.
  SECTION 9. ORS 578.070 is amended to read:
  578.070. The Oregon Wheat Commission shall elect a
chairperson { + , + }   { - and - }  vice chairperson { +  and
secretary-treasurer from among its members + }.
  SECTION 10. ORS 578.090 is amended to read:
  578.090. (1) Consistent with the general purposes of this
chapter, the Oregon Wheat Commission shall establish the policies
to be followed in accomplishing those purposes.
  (2) In the administration of this chapter, the commission has
the following duties, authorities and powers:
  (a) To conduct a campaign of research, education and publicity.
  (b) To lease, purchase or own the real or personal property
deemed necessary in the administration of this chapter.
  (c) To adopt rules as described in ORS 578.060 regarding the
payment of per diem allowance and expenses of commission members
while actually engaged in the performance of official duties,
including necessary travel time.
    { - (d) For wheat: - }
    { - (A) To find new markets for wheat and wheat products. - }

    { - (B) To give, publicize and promulgate reliable
information showing the value of wheat and wheat products for any
useful and profitable purpose. - }
    { - (C) To make public and encourage the widespread national
and international use of the special kinds of wheat and wheat
products produced from the special varieties of wheat grown in
Oregon. - }
Enrolled House Bill 2616 (HB 2616-INTRO)                   Page 4

    { - (D) To investigate and participate in studies of the
problems peculiar to the producers of wheat in Oregon. - }
    { - (E) To take such action as the commission deems necessary
or advisable in order to stabilize and protect the wheat industry
of the state and the health and welfare of the public. - }
    { - (e) For any other grains assessed by the commission: - }
    { - (A) - }  { +  (d) + } To find new markets for grains and
grain products.
    { - (B) - }  { +  (e) + } To give, publicize and promulgate
reliable information showing the value of grains and grain
products for any useful and profitable purpose.
    { - (C) - }  { +  (f) + } To make public and encourage the
widespread national and international use of Oregon grains and
grain products.
    { - (D) - }  { +  (g) + } To investigate and participate in
studies of the problems peculiar to the grain producers in
Oregon.
    { - (E) - }  { +  (h) + } To take such action as the
commission deems necessary or advisable in order to stabilize and
protect the grain industry of the state and the health and
welfare of the public.
   { +  (i) To levy assessments. + }
  (3) In addition to exercising the powers listed in subsection
(2) of this section, the commission may exercise the same powers
that a commodity commission may exercise under ORS 576.304
 { + (1) and (3) to (14) + } or 576.306.
  SECTION 11. ORS 578.105 is amended to read:
  578.105. (1) As used in this section, 'intellectual property'
means patents, copyrights, trademarks, inventions, discoveries,
processes, ideas and other similar property, whether or not they
are patentable or copyrightable.
  (2) The Oregon Wheat Commission may, consistent with the
purposes of the commission, develop intellectual property that
relates to   { - wheat or other assessed grains - }  { +
grain + } or assists in the implementation, maintenance or
development of commission programs. The commission may take all
necessary and proper actions relating to the development of an
intellectual property, including but not limited to entering into
contracts and other agreements and owning, managing, disposing of
or using the intellectual property. The commission may adopt
rules to govern the ownership, management, disposal and use of
intellectual property and other activities of the commission
relating to intellectual property.
  (3) Moneys received by the commission as a result of the
ownership, management, disposal or use of intellectual property,
or other activities of the commission relating to intellectual
property, must be deposited to an account established and
maintained by the commission.
  SECTION 12. ORS 578.151 is amended to read:
  578.151. The Oregon Wheat Commission shall:
  (1) Adopt a budget, obtain budget approval and submit financial
statements in the same manner as a commodity commission acting
under ORS 576.416.
  (2)   { - Receive, deposit, invest, expend and budget - }  { +
Expend + } moneys in the same manner as a commodity commission
acting under ORS 576.375, 576.420, 576.440 and 576.445.
  SECTION 13. ORS 578.211 is amended to read:
  578.211. (1)(a) The Oregon Wheat Commission may assess, levy
and collect an assessment, the amount of which the commission
shall determine, on all units of   { - wheat grown or produced in

Enrolled House Bill 2616 (HB 2616-INTRO)                   Page 5

this state and sold in commercial channels and on units of any
other grains - }  { +  grain + } grown or produced in this state
and sold in commercial channels. The commission may not apply an
assessment to any transaction that occurred prior to the date
that the commission order assessing the assessment was entered.
  (b) The 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   { - wheat or
other grains - }  { +  grain + }.
  (c) All casual sales of   { - wheat or other grains - }  { +
grain + } made by the producer direct to the consumer are exempt
from the assessment.
  (d) The commission may, by rule, define and regulate handling,
processing and casual sales.
  (2) The commission shall assess and levy an assessment under
subsection (1) of this section to the producer at the time and in
the manner prescribed by the commission by rule. The commission
is the owner of a collected assessment. A person who collects an
assessment holds the assessment in trust for the benefit of the
commission and the state and shall remit the assessment in the
time and manner prescribed by the commission by rule. The
assessment shall be deducted as provided by this section whether
the   { - wheat or other grains are - }  { +  grain is + } stored
in this or another state.
  (3) A lienholder who possesses   { - wheat or other grains - }
 { +  grain + } under the lien shall deduct the assessment from
the proceeds of the claim secured by the lien when the
 { - wheat or other - }  grain is pledged or mortgaged.
  (4) Notwithstanding subsection (2) of this section  { - , - }
 { + and subject to section 2 of this 2013 Act, + } the
commission may assess and levy an assessment and collect an
assessment from a first purchaser at the time and in the manner
prescribed by the commission by rule.
  (5) A person who believes that the amount of an assessment is
incorrect may apply to the commission within 60 days after paying
the assessment for a refund of the excess amount paid.
  (6) An assessment under this section is a lien on the
 { - wheat or other - }  grain and has priority over other liens
or encumbrances on the   { - wheat or other - }  grain except
liens created by a statute of this state.
  (7) The commission may, by rule, establish exemptions from
assessment based on:
  (a)   { - Wheat or other - }  Grain quantities;
  (b) Types of   { - wheat sale or other - }  grain sale; and
  (c) Types of   { - wheat producer or other - }  grain producer.
  SECTION 14. ORS 578.216 is amended to read:
  578.216. (1) In addition to any refund permitted under ORS
578.211, the Oregon Wheat Commission may adopt rules that provide
for the commission to refund all or part of an assessment on
  { - wheat or on other grains - }  { +  grain + } upon request
of the person paying the assessment.
  (2) If the commission adopts rules pursuant to subsection (1)
of this section that provide for a refund to be at least equal in
amount to the portion of the assessment on   { - wheat or other
grains - }  { +  grain + } that is used by the commission for
advertising and product promotion:
  (a) Plans and projects recommended by the commission are exempt
from State Department of Agriculture review under ORS 578.025
(2); and

Enrolled House Bill 2616 (HB 2616-INTRO)                   Page 6

  (b) The commission may vote to eliminate the public member
position on the commission.
  SECTION 15.  { + The Oregon Wheat Commission shall ensure that
a member of the commission is holding office as the elected
secretary-treasurer of the commission no later than 30 days after
the effective date of this 2013 Act. + }
                         ----------

Passed by House February 27, 2013

    .............................................................
                             Ramona J. Line, Chief Clerk of House

    .............................................................
                                     Tina Kotek, Speaker of House

Passed by Senate May 1, 2013

    .............................................................
                              Peter Courtney, President of Senate

Enrolled House Bill 2616 (HB 2616-INTRO)                   Page 7

Received by Governor:

......M.,............., 2013

Approved:

......M.,............., 2013

    .............................................................
                                         John Kitzhaber, Governor

Filed in Office of Secretary of State:

......M.,............., 2013

    .............................................................
                                   Kate Brown, Secretary of State

Enrolled House Bill 2616 (HB 2616-INTRO)                   Page 8
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