Bill Text: OR HB4003 | 2012 | Regular Session | Enrolled

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Bill Title: Relating to State Department of Agriculture food safety fees.

Spectrum: Unknown

Status: (Passed) 2012-03-27 - Chapter 64, (2012 Laws): Effective date January 1, 2013. [HB4003 Detail]

Download: Oregon-2012-HB4003-Enrolled.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2012 Regular Session

                            Enrolled

                         House Bill 4003

Introduced and printed pursuant to House Rule 12.00. Presession
  filed (at the request of House Interim Committee on Agriculture
  and Natural Resources)

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

                             AN ACT

Relating to State Department of Agriculture food safety fees;
  creating new provisions; and amending ORS 603.025, 603.031,
  603.200, 616.706, 616.708, 619.031, 621.072, 621.078, 621.166,
  621.169, 625.030, 625.055, 625.090, 625.180, 628.240, 632.720,
  632.741 and 635.030.

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

  SECTION 1. ORS 603.025 is amended to read:
  603.025. (1) A person may not sell, offer to sell or expose for
sale meat products or engage in any other activity described or
identified in subsection (4) of this section without first
obtaining and maintaining a license   { - therefor - }  { +  for
that activity + } from the State Department of Agriculture. All
such licenses shall expire on June 30 next following the date of
issuance or on such date as may be specified by department rule.
Renewal applications must be postmarked before the expiration
date to be timely.
  (2) Application for a license required by this section shall be
made to the department on forms prescribed by the department
 { - , which - }  { +  and + } shall contain any information the
department deems necessary. The license is personal and
nontransferable, with a separate license required for each
establishment location. A new license is required each time there
is a change in ownership, legal entity or establishment location.
  (3) In addition to other license requirements of this section,
if an applicant for a license under subsection (4)(c) of this
section has an average weekly dollar value of meat animal
purchases that exceeds $10,000, the applicant shall submit with
the application a surety bond with one or more corporate sureties
authorized to do business in this state, or an irrevocable letter
of credit issued by an insured institution, as defined in ORS
706.008. The bond or letter of credit shall be in an amount equal
to twice the average daily value of meat animal purchases during
the preceding calendar year, or the amount of $20,000, whichever
amount is greater. The department shall prescribe the form for
  { - and approve - }  the bond or letter of credit { + . + }
 { - , which shall - }  { +  A bond or letter of credit is
subject to department approval and must + } be conditioned upon
faithful performance by the licensee of all obligations to the
producers of meat animals arising from the sale of meat animals
by producers to the licensee.

Enrolled House Bill 4003 (HB 4003-A)                       Page 1

  (4) Each of the following activities   { - shall - }  { +
must + } be licensed, and the fee established by the department
paid with the  { +  license + } application   { - therefor - } :
  (a) Operation of a meat seller establishment. A license under
this section allows only the meat products preparation described
in ORS 603.010 (8).
  (b) Operation of a nonslaughtering processing establishment.  A
license under this section allows selling meat products at the
same location without obtaining the license described in
paragraph (a) of this subsection.
  (c) Operation of a slaughterhouse. A license under this section
allows selling meat products at the same location without
obtaining the license described in paragraph (a) of this
subsection.
  (d) Operation of a custom slaughtering establishment or custom
processing establishment. A license under this section does not
allow selling meat products without first obtaining and
maintaining the license described in paragraph (a) of this
subsection.
  (e) Operation of a slaughterhouse, custom slaughtering
establishment or custom processing establishment wherein only
poultry or rabbits are slaughtered or prepared. A license under
this section allows selling only poultry or rabbit products at
the same location without obtaining the license described in
paragraph (a) of this subsection.
  (5) The license required by this section shall be displayed at
all times in a conspicuous manner at the address shown on the
license.
    { - (6) Except as provided in subsection (7) of this section,
the license fees for establishments under this section are: - }
    { - (a) $216 if the establishment's annual gross dollar
volume of sales and services is not more than $50,000; - }
    { - (b) $271 if the establishment's annual gross dollar
volume of sales and services is more than $50,000 and not more
than $500,000; - }
    { - (c) $325 if the establishment's annual gross dollar
volume of sales and services is more than $500,000 and not more
than $1 million; - }
    { - (d) $487 if the establishment's annual gross dollar
volume of sales and services is more than $1 million and not more
than $5 million; - }
    { - (e) $541 if the establishment's annual gross dollar
volume of sales and services is more than $5 million and not more
than $10 million; or - }
    { - (f) $704 if the establishment's annual gross dollar
volume of sales and services is more than $10 million. - }
    { - (7) If the establishment sells only prepackaged meats
packaged at a facility inspected by the United States Department
of Agriculture, the following license fee amounts shall apply
instead of the fee established in subsection (6)(a) of this
section: - }
    { - (a) $108 if the establishment's annual gross dollar
volume of sales and services is not more than $5,000; or - }
    { - (b) $162 if the establishment's annual gross dollar
volume of sales and services is more than $5,000 and not more
than $50,000. - }
    { - (8) - }  { +  (6) The department may adopt rules
establishing license fee schedules for establishments licensed
under this section. The department may determine the license fee
for an establishment based upon the annual gross dollar volume of

Enrolled House Bill 4003 (HB 4003-A)                       Page 2

sales and services by the applicant. + } In establishing the
amount of the license fee for an establishment, the State
Department of Agriculture shall use the annual gross dollar
volume of sales and services by that establishment within Oregon
during the prior calendar year or, if the establishment maintains
sales and service records on a fiscal basis, the prior fiscal
year. If the establishment applying for an original license or
for a renewal license cannot provide the annual gross dollar
volume of sales and services for a full calendar year, the
department shall base the fee on estimated annual gross sales and
services by the establishment. If an establishment whose previous
year's fee was determined using an estimated gross sales and
services figure applies for renewal of that license, the fee for
the previous license year shall be adjusted to reflect the actual
annual gross dollar volume of sales and services by the
establishment.
   { +  (7) Except as provided in this subsection, the department
may not adopt a rule under this section to establish a license
fee that is more than three percent higher than the license fee
charged during the preceding year for an establishment of the
same type and having the same volume of gross sales and services.
When adopting a rule establishing a license fee, notwithstanding
the three percent limit, the department may round the fee amount
to the next higher whole dollar amount. Fee schedules adopted
under this section may not change the amount of the same license
fee more frequently than once each year. + }
  SECTION 2.  { + (1) Notwithstanding the amendments to ORS
603.025 by section 1 of this 2012 Act, the license fee amounts
authorized by ORS 603.025 as set forth in the 2011 Edition of
Oregon Revised Statutes and in effect on the effective date of
this 2012 Act shall remain in effect until superseded by license
fees established by State Department of Agriculture rules.
  (2) The department shall adopt initial rules establishing
license fees under ORS 603.025 to take effect no later than July
1, 2013. For the purpose of adopting initial rules establishing
license fees under ORS 603.025, the license fees authorized by
ORS 603.025 as set forth in the 2011 Edition of Oregon Revised
Statutes and in effect on the effective date of this 2012 Act are
deemed to be the license fees charged during the year preceding
adoption of the rule. + }
  SECTION 3. ORS 616.706 is amended to read:
  616.706. (1) Except as otherwise provided in ORS 616.695 to
616.755, a person may not operate a food establishment without
first obtaining and thereafter maintaining a license under this
section. A person shall make an application for a license to the
State Department of Agriculture on forms prescribed by the
department. Each license shall expire on June 30 next following
the date of issuance or on such date as may be specified by
department rule.
  (2) The department may, subject to the applicable provisions of
ORS chapter 183, suspend, revoke or refuse to issue a license if
the licensee has violated any of the provisions of ORS 616.695 to
616.755 or rules adopted under ORS 616.695 to 616.755.
  (3) A license is personal to the applicant and may not be
transferred. A new license is necessary if the business entity of
the licensee is changed, or if the membership of a partnership is
changed, irrespective of whether or not the business name is
changed.
  (4) The license shall cover all operations of the person
licensed, under one entity or ownership. With prior approval of

Enrolled House Bill 4003 (HB 4003-A)                       Page 3

the department, the location of a licensed food establishment, or
any part of a licensed food establishment, may be moved without
the requirement of a new license if there is no change in the
ownership or business entity.
  (5) The license shall be posted in a conspicuous place in the
main office of the food establishment. Duplicate copies of the
license shall be conspicuously posted in branch offices,
warehouses and other places owned or operated by the licensee at
locations other than the main office. A license is automatically
canceled if the food establishment ceases or discontinues
operations or business.
    { - (6) The license fee for a food establishment that is part
of a domestic kitchen is $189. - }
    { - (7) The license fees for a food establishment other than
an establishment that is part of a domestic kitchen, or other
than a retail food store or a warehouse, are: - }
    { - (a) $325 if the gross sales of an applicant's covered
operations are not more than $50,000; - }
    { - (b) $460 if the gross sales of an applicant's covered
operations are more than $50,000 and not more than $500,000; - }
    { - (c) $541 if the gross sales of an applicant's covered
operations are more than $500,000 and not more than $1
million; - }
    { - (d) $704 if the gross sales of an applicant's covered
operations are more than $1 million and not more than $5
million; - }
    { - (e) $812 if the gross sales of an applicant's covered
operations are more than $5 million and not more than $10
million; or - }
    { - (f) $920 if the gross sales of an applicant's covered
operations are more than $10 million. - }
    { - (8) The food establishment license fees for a retail food
store, as defined by the department by rule, are: - }
    { - (a) $135 if the gross sales of an applicant's covered
operations are not more than $50,000; - }
    { - (b) $271 if the gross sales of an applicant's covered
operations are more than $50,000 and not more than $500,000; - }
    { - (c) $325 if the gross sales of an applicant's covered
operations are more than $500,000 and not more than $1
million; - }
    { - (d) $487 if the gross sales of an applicant's covered
operations are more than $1 million and not more than $5
million; - }
    { - (e) $595 if the gross sales of an applicant's covered
operations are more than $5 million and not more than $10
million; or - }
    { - (f) $704 if the gross sales of an applicant's covered
operations are more than $10 million. - }
    { - (9) The food establishment license fees for a warehouse,
as defined by the department by rule, are: - }
    { - (a) $108 if the gross sales of an applicant's covered
operations are not more than $50,000; - }
    { - (b) $135 if the gross sales of an applicant's covered
operations are more than $50,000 and not more than $10 million;
or - }
    { - (c) $162 if the gross sales of an applicant's covered
operations are more than $10 million. - }
   { +  (6) The department may adopt rules establishing license
fee schedules for a food establishment:
  (a) That is part of a domestic kitchen;

Enrolled House Bill 4003 (HB 4003-A)                       Page 4

  (b) That is a retail food store;
  (c) That is a warehouse; or
  (d) That is other than part of a domestic kitchen, retail food
store or warehouse. + }
    { - (10) - }   { + (7) The department may determine the
license fee for a food establishment described in subsection
(6)(b) to (d) of this section based upon the gross sales by the
applicant. + } In establishing the amount of   { - the license
fee for - }   { + a license fee based upon gross sales by + } an
applicant, the department shall use the annual gross dollar
volume of sales of covered operations by that applicant within
Oregon during the prior calendar year or, if the applicant
maintains sales records on a fiscal basis, the prior fiscal year.
If the applicant applying for an original license or for a
renewal license cannot provide the annual gross dollar volume of
sales of covered operations for a full calendar year, the
department shall base the fee on estimated annual gross sales of
covered operations by the applicant. If an applicant whose
previous year's fee was determined using an estimated gross sales
of covered operations figure applies for renewal of that license,
the fee for the previous license year shall be adjusted to
reflect the actual gross dollar volume of sales of covered
operations by the applicant.
   { +  (8) Except as provided in this subsection, the department
may not adopt a rule under this section to establish a license
fee that is more than three percent higher than the license fee
charged during the preceding year for a food establishment of the
same type and having the same volume of gross sales. When
adopting a rule establishing a license fee, notwithstanding the
three percent limit, the department may round the fee amount to
the next higher whole dollar amount. License fee schedules
adopted under this section may not change the amount of the same
license fee more frequently than once each year. + }
  SECTION 4.  { + (1) Notwithstanding the amendments to ORS
616.706 by section 3 of this 2012 Act, the license fee amounts
authorized by ORS 616.706 as set forth in the 2011 Edition of
Oregon Revised Statutes and in effect on the effective date of
this 2012 Act shall remain in effect until superseded by license
fees established by State Department of Agriculture rules.
  (2) The department shall adopt initial rules establishing
license fees under ORS 616.706 to take effect no later than July
1, 2013. For the purpose of adopting initial rules establishing
license fees under ORS 616.706, the license fees authorized by
ORS 616.706 as set forth in the 2011 Edition of Oregon Revised
Statutes and in effect on the effective date of this 2012 Act are
deemed to be the license fees charged during the year preceding
adoption of the rule. + }
  SECTION 5. ORS 619.031 is amended to read:
  619.031. (1) A person may not operate an animal food
slaughtering establishment or processing establishment without
first obtaining a license   { - therefor - }  { +  for the
establishment + } from the State Department of Agriculture.
    { - (2) The license fees for an animal food slaughtering
establishment or processing establishment are: - }
    { - (a) $216 if the establishment's annual gross dollar
volume of sales and services is not more than $50,000; - }
    { - (b) $271 if the establishment's annual gross dollar
volume of sales and services is more than $50,000 and not more
than $500,000; - }
Enrolled House Bill 4003 (HB 4003-A)                       Page 5

    { - (c) $325 if the establishment's annual gross dollar
volume of sales and services is more than $500,000 and not more
than $1 million; - }
    { - (d) $487 if the establishment's annual gross dollar
volume of sales and services is more than $1 million and not more
than $5 million; - }
    { - (e) $541 if the establishment's annual gross dollar
volume of sales and services is more than $5 million and not more
than $10 million; or - }
    { - (f) $704 if the establishment's annual gross dollar
volume of sales and services is more than $10 million. - }
    { - (3) - }   { + (2) The department may adopt rules
establishing license fee schedules for establishments licensed
under this section. The department may determine the license fee
for an establishment based upon the annual gross dollar volume of
sales and services by the applicant. + } In establishing the
amount of the license fee for an applicant, the department shall
use the annual gross dollar volume of sales and services by that
applicant within Oregon during the prior calendar year or, if the
applicant maintains sales and service records on a fiscal basis,
the prior fiscal year. If the applicant applying for an original
license or for a renewal license cannot provide the annual gross
dollar volume of sales and services for a full calendar year, the
department shall base the fee on estimated annual gross sales and
services by the applicant. If an applicant whose previous year's
fee was determined using an estimated gross sales and services
figure applies for renewal of that license, the fee for the
previous license year shall be adjusted to reflect the actual
gross dollar volume of sales and services by the applicant. The
license shall expire on June 30 next following the date of
issuance or on such date as may be specified by department rule.
   { +  (3) Except as provided in this subsection, the department
may not adopt a rule to establish a license fee that is more than
three percent higher than the license fee charged during the
preceding year for an establishment of the same type and having
the same volume of gross sales and services. When adopting a rule
establishing a license fee, notwithstanding the three percent
limit, the department may round the fee amount to the next higher
whole dollar amount. Fee schedules adopted under this section may
not change the amount of the same license fee more frequently
than once each year. + }
  (4) The provisions of ORS 603.025 (2) and (5), 603.034 (1) and
(2), 603.045 (7) and 603.075 shall apply to animal food
slaughtering establishments or processing establishments. Except
as provided in this subsection, the remainder of the provisions
of ORS chapter 603 do not apply to such establishments.
  (5) Notwithstanding subsection (1) of this section, a person
licensed by the department under ORS chapter 603 to slaughter
meat animals and subject to federal meat inspection, or a person
licensed by the department under ORS chapter 603 to slaughter
only poultry and rabbits and subject to federal poultry
inspection, or a person licensed by the department under ORS
chapter 603 as a nonslaughtering processor may, without being
required to obtain an additional license, also sell or dispose of
meat products as animal food provided that such licensees also
comply with the provisions of subsection (6) of this section, ORS
619.010 to 619.026 and 619.036 to 619.066.
  (6) In accordance with the provisions of ORS chapter 183, the
department may promulgate rules necessary to carry out and
enforce any procedures or measures to protect the health of the

Enrolled House Bill 4003 (HB 4003-A)                       Page 6

animals that are fed or intended to be fed the meat products sold
or disposed of by animal food slaughtering establishments or
processing establishments, and to protect the health of other
animals in this state. In addition to the provisions of ORS
619.046, for the purposes of this section the department shall
take into consideration:
  (a) The provisions of ORS chapter 596.
  (b) The procedures necessary to ensure that meat products that
are only fit for or destined for animal consumption are not sold
for human consumption.
  (7) A person licensed as provided by this section:
  (a) May not sell, hold or offer for sale any carcass of a meat
animal or part thereof that is unfit for or unwholesome as animal
food.
  (b) May not sell, hold or offer for sale a carcass of a meat
animal or part thereof for human consumption.
  (c) Shall keep complete and accurate records of the meat
animals purchased for slaughter, including but not limited to
their description, brands if any, date of purchase and the name
and address of the person from whom the animals were purchased.
  (d) Shall keep complete and accurate records of the sale of all
meat animal carcasses or parts   { - thereof - }  { +  of meat
animal carcasses + }, including the name and address of the
purchaser.
  (e) Shall comply with the provisions of ORS 619.026.
  SECTION 6.  { + (1) Notwithstanding the amendments to ORS
619.031 by section 5 of this 2012 Act, the license fee amounts
authorized by ORS 619.031 as set forth in the 2011 Edition of
Oregon Revised Statutes and in effect on the effective date of
this 2012 Act shall remain in effect until superseded by license
fees established by State Department of Agriculture rules.
  (2) The department shall adopt initial rules establishing
license fees under ORS 619.031 to take effect no later than July
1, 2013. For the purpose of adopting initial rules establishing
licensing fees under ORS 619.031, the license fees authorized by
ORS 619.031 as set forth in the 2011 Edition of Oregon Revised
Statutes and in effect on the effective date of this 2012 Act are
deemed to be the license fees charged during the year preceding
adoption of the rule. + }
  SECTION 7. ORS 621.072 is amended to read:
  621.072. (1) The State Department of Agriculture shall issue a
license to use a grade designation to any person who:
  (a) Makes written application for a license on forms provided
by the department;
  (b) Pays the designated license fee;
  (c) Is engaged in the business of producing or distributing
fluid milk; and
  (d) Meets the requirements of the particular grade designation
for which application is made.
  (2) If a person carries on the activities of a producer and a
producer-distributor, the person must obtain a separate license
for each of those activities. If a producer-distributor
manufactures products from both grade A fluid milk and grade B
fluid milk at the same premises, the producer-distributor must
obtain separate licenses for grade A product manufacturing
activity and grade B product manufacturing activity.
  (3) Licenses issued under this section shall be personal and
not transferable.
  (4) Each milk hauler, milk receiver or other person who grades
fluid milk as fit or unfit for processing as fluid milk due to

Enrolled House Bill 4003 (HB 4003-A)                       Page 7

quality, odor, flavor or wholesomeness must first obtain a
license from the department authorizing that person to sample and
grade fluid milk. Each applicant for a milk sampler's and
grader's license shall, by written examination, demonstrate an
adequate knowledge of milk sanitation as it relates to the
sampling, grading and handling of fluid milk and cream for
analysis. The department shall give examinations for licenses at
such times and places as appears to be necessary and practicable.
  (5) Before and after issuing a license to a person as a
producer, producer-distributor, distributor or nonprocessing
distributor of fluid milk, the department shall, as it deems
necessary, inspect the physical facilities of the applicant's
dairy, milk processing plant or distribution center and
investigate other factors the department determines may relate to
the production, processing or distribution of fluid milk. The
physical facilities must conform to the production, processing or
distribution requirements for the fluid milk grade designation
sought or held.
  (6) Each license issued under this section expires on June 30
next following the date of its issuance unless sooner revoked and
may be renewed upon application of the licensee. Each application
for a license or annual renewal   { - thereof - }  { +  of a
license + } shall be accompanied by a license fee.
    { - (7) The department shall establish license fee schedules
for milk samplers and graders in accordance with ORS chapter 183.
A fee may not be less than $25 or more than $50. - }
    { - (8) The license fees for producer-distributors,
distributors and nonprocessing distributors are: - }
    { - (a) $135 if the applicant's annual gross dollar volume of
sales and services is not more than $50,000; - }
    { - (b) $189 if an applicant's annual gross dollar volume of
sales and services is more than $50,000 and not more than
$500,000; - }
    { - (c) $325 if an applicant's annual gross dollar volume of
sales and services is more than $500,000 and not more than $1
million; - }
    { - (d) $487 if an applicant's annual gross dollar volume of
sales and services is more than $1 million and not more than $5
million; - }
    { - (e) $649 if an applicant's annual gross dollar volume of
sales and services is more than $5 million and not more than $10
million; or - }
    { - (f) $812 if an applicant's annual gross dollar volume of
sales and services is more than $10 million. - }
    { - (9) The license fees for producers are: - }
    { - (a) $135 if the applicant's annual gross sales are not
more than $50,000; - }
    { - (b) $189 if an applicant's annual gross sales are more
than $50,000 and not more than $500,000; - }
    { - (c) $325 if an applicant's annual gross sales are more
than $500,000 and not more than $1 million; - }
    { - (d) $487 if an applicant's annual gross sales are more
than $1 million and not more than $5 million; - }
    { - (e) $649 if an applicant's annual gross sales are more
than $5 million and not more than $10 million; or - }
    { - (f) $812 if an applicant's annual gross sales are more
than $10 million. - }
   { +  (7) The department may adopt rules establishing license
fee schedules for:
  (a) Milk samplers and graders;

Enrolled House Bill 4003 (HB 4003-A)                       Page 8

  (b) Producer-distributors, distributors and nonprocessing
distributors; and
  (c) Producers. + }
    { - (10) - }   { + (8) The department may determine the
license fee for a producer-distributor, distributor or
nonprocessing distributor based upon the annual gross dollar
volume of sales and services by the applicant. + } In
establishing the amount of the license fee for an applicant under
this   { - section - }  { +  subsection + }, the department shall
use the annual gross dollar volume of sales and services by that
applicant within Oregon during the prior calendar year or, if the
applicant maintains sales and service records on a fiscal basis,
the prior fiscal year. If the applicant applying for an original
license or for a renewal license cannot provide the annual gross
dollar volume of sales and services for a full calendar year, the
department shall base the fee on estimated annual gross sales and
services by the applicant. If an applicant whose previous year's
fee was determined using an estimated gross sales and services
figure applies for renewal of that license, the fee for the
previous license year shall be adjusted to reflect the actual
gross dollar volume of sales and services by the applicant.
   { +  (9) The department may determine the license fee for a
producer based upon the annual gross sales by the applicant. In
establishing the amount of the license fee for an applicant under
this subsection, the department shall use the annual gross sales
by that applicant within Oregon during the prior calendar year
or, if the applicant maintains sales records on a fiscal basis,
the prior fiscal year. If the applicant applying for an original
license or for a renewal license cannot provide the annual gross
sales for a full calendar year, the department shall base the fee
on estimated annual gross sales by the applicant. If an applicant
whose previous year's fee was determined using an estimated gross
sales figure applies for renewal of that license, the fee for the
previous license year shall be adjusted to reflect the actual
gross sales by the applicant.
  (10) Except as provided in this subsection, the department may
not adopt a rule under this section to establish a license fee
that is more than three percent higher than the fee charged
during the preceding year for a milk sampler and grader, for a
producer-distributor, distributor or nonprocessing distributor
having the same volume of gross sales and services or for a
producer having the same volume of gross sales. When adopting a
rule establishing a license fee, notwithstanding the three
percent limit, the department may round the fee amount to the
next higher whole dollar amount. Fee schedules adopted under this
section may not change the amount of the same license fee more
frequently than once each year. + }
  (11) A distributor or producer-distributor must obtain a
license and pay license fees   { - as provided under subsection
(8) of this section - }  for each physical facility used to
produce, process or distribute fluid milk. A person is not
required to obtain a distributor or producer-distributor license
to act as a milk hauler or to operate receiving or transfer
stations in conjunction with a milk processing plant.
  (12) The department may refuse to issue or renew, or may
suspend or revoke, a license for any violation of this section or
ORS 621.062, 621.070, 621.076, 621.084, 621.088, 621.117, 621.122
or 621.259 or processes or standards established under ORS
621.060 or 621.083.

Enrolled House Bill 4003 (HB 4003-A)                       Page 9

  SECTION 8.  { + (1) Notwithstanding the amendments to ORS
621.072 by section 7 of this 2012 Act, the license fee amounts
authorized by ORS 621.072 as set forth in the 2011 Edition of
Oregon Revised Statutes and in effect on the effective date of
this 2012 Act shall remain in effect until superseded by license
fees established by State Department of Agriculture rules.
  (2) The department shall adopt initial rules establishing
license fees under ORS 621.072 to take effect no later than July
1, 2013. For the purpose of adopting initial rules establishing
license fees under ORS 621.072, the license fees authorized by
ORS 621.072 as set forth in the 2011 Edition of Oregon Revised
Statutes and in effect on the effective date of this 2012 Act are
deemed to be the license fees charged during the year preceding
adoption of the rule. + }
  SECTION 9. ORS 621.166 is amended to read:
  621.166.  { + (1) As used in this section, 'mobile milk tanker
' means a tank or other receptacle that attaches to a bulk tank
truck or other equipment and is used to transport fluid milk,
milk or milk products. + }
    { - (1) - }  { +  (2) + } Application for a dairy products
plant license shall be made to the State Department of
Agriculture on forms provided by the department. Each license and
each annual renewal shall expire on June 30 next following its
issuance or on such date as may be specified by department rule.
Dairy products plant licenses are personal and are not
transferable.
    { - (2) - }  { +  (3) + } Each dairy products plant shall
submit a separate fee established by the department for each
mobile milk tanker. The fee   { - shall - }  { +  does + } not
apply to a mobile milk tanker owned and operated by a dairy
products plant while transporting dairy products from the dairy
products plant to wholesale or retail outlets for those products.
 { - As used in this section, 'mobile milk tanker' means a tank
or other receptacle that attaches to a bulk tank truck or other
equipment and is used to transport fluid milk, milk or milk
products. - }
    { - (3) The department shall establish the license fee for a
mobile milk tanker in accordance with ORS chapter 183. The fee
may not be less than $25 or more than $50. The fees for a dairy
products plant are: - }
    { - (a) $135 if the applicant's annual gross dollar volume of
sales and services is not more than $50,000; - }
    { - (b) $189 if an applicant's annual gross dollar volume of
sales and services is more than $50,000 and not more than
$500,000; - }
    { - (c) $325 if an applicant's annual gross dollar volume of
sales and services is more than $500,000 and not more than $1
million; - }
    { - (d) $487 if an applicant's annual gross dollar volume of
sales and services is more than $1 million and not more than $5
million; - }
    { - (e) $649 if an applicant's annual gross dollar volume of
sales and services is more than $5 million and not more than $10
million; or - }
    { - (f) $812 if an applicant's annual gross dollar volume of
sales and services is more than $10 million. - }
   { +  (4) The department may adopt rules establishing license
fee schedules for:
  (a) Mobile milk tankers; and
  (b) Dairy products plants. + }

Enrolled House Bill 4003 (HB 4003-A)                      Page 10

    { - (4) - }   { + (5) The department may determine the
license fee for a dairy products plant based upon the annual
gross dollar volume of sales and services by the applicant. + }
In establishing the amount of the license fee for an applicant,
the department shall use the annual gross dollar volume of sales
and services by that applicant within Oregon during the prior
calendar year or, if the applicant maintains sales and service
records on a fiscal basis, the prior fiscal year. If the
applicant applying for an original license or for a renewal
license cannot provide the annual gross dollar volume of sales or
services for a full calendar year, the department shall base the
fee on estimated annual gross sales and services by the
applicant. If an applicant whose previous year's fee was
determined using an estimated gross sales and services figure
applies for renewal of that license, the fee for the previous
license year shall be adjusted to reflect the actual gross dollar
volume of sales and services by the applicant.
   { +  (6) Except as provided in this subsection, the department
may not adopt a rule under this section to establish a license
fee that is more than three percent higher than the fee charged
during the preceding year for an equivalent mobile milk tanker or
for a dairy products plant having the same volume of gross sales
and services. When adopting a rule establishing a license fee,
notwithstanding the three percent limit, the department may round
the fee amount to the next higher whole dollar amount. Fee
schedules adopted under this section may not change the amount of
the same license fee more frequently than once each year. + }
  SECTION 10.  { + (1) Notwithstanding the amendments to ORS
621.166 by section 9 of this 2012 Act, the license fee amounts
authorized by ORS 621.166 as set forth in the 2011 Edition of
Oregon Revised Statutes and in effect on the effective date of
this 2012 Act shall remain in effect until superseded by license
fees established by State Department of Agriculture rules.
  (2) The department shall adopt initial rules establishing
license fees under ORS 621.166 to take effect no later than July
1, 2013. For the purpose of adopting initial rules establishing
license fees under ORS 621.166, the license fees authorized by
ORS 621.166 as set forth in the 2011 Edition of Oregon Revised
Statutes and in effect on the effective date of this 2012 Act are
deemed to be the license fees charged during the year preceding
adoption of the rule. + }
  SECTION 11. ORS 625.180 is amended to read:
  625.180. (1) Every bakery or bakery distributor doing business
in this state shall pay a license fee.
    { - (2) The license fees for a distributor may not be less
than $25 and may not exceed $108. The fees for a bakery, other
than a domestic kitchen bakery, are: - }
    { - (a) $244 if the bakery's annual gross sales are not more
than $50,000; - }
    { - (b) $379 if the bakery's annual gross sales are more than
$50,000 and not more than $500,000; - }
    { - (c) $487 if the bakery's annual gross sales are more than
$500,000 and not more than $1 million; - }
    { - (d) $812 if the bakery's annual gross sales are more than
$1 million and not more than $5 million; - }
    { - (e) $1,082 if the bakery's annual gross sales are more
than $5 million and not more than $10 million; or - }
    { - (f) $1,624 if the bakery's annual gross sales are more
than $10 million. - }
Enrolled House Bill 4003 (HB 4003-A)                      Page 11

    { - (3) The license fees for a domestic kitchen bakery
are: - }
    { - (a) $152 if the bakery's annual gross sales are not more
than $50,000; - }
    { - (b) $216 if the bakery's annual gross sales are more than
$50,000 and not more than $500,000; - }
    { - (c) $325 if the bakery's annual gross sales are more than
$500,000 and not more than $1 million; - }
    { - (d) $487 if the bakery's annual gross sales are more than
$1 million and not more than $5 million; - }
    { - (e) $649 if the bakery's annual gross sales are more than
$5 million and not more than $10 million; or - }
    { - (f) $812 if the bakery's annual gross sales are more than
$10 million. - }
   { +  (2) The State Department of Agriculture may adopt rules
establishing license fee schedules for:
  (a) A bakery distributor;
  (b) A domestic kitchen bakery; and
  (c) A bakery other than a domestic kitchen bakery. + }
    { - (4) - }   { + (3) The department may determine the
license fee for a bakery or bakery distributor based upon the
annual gross sales by the applicant. + } In establishing the
amount of the license fee for a bakery or bakery distributor, the
department shall use the annual gross sales by that bakery or
distributor within Oregon during the prior calendar year or, if
the bakery or distributor maintains sales records on a fiscal
basis, the prior fiscal year. If the bakery or distributor
applying for an original license or for a renewal license cannot
provide the annual gross sales for a full calendar year, the
department shall base the fee on estimated annual gross sales by
the bakery or distributor. If a bakery or distributor whose
previous year's fee was determined using an estimated gross sales
figure applies for renewal of that license, the fee for the
previous license year shall be adjusted to reflect the actual
gross sales by the bakery or distributor.
   { +  (4) Except as provided in this subsection, the department
may not adopt a rule under this section to establish a license
fee that is more than three percent higher than the license fee
charged during the preceding year for a bakery distributor having
the same volume of gross sales or for a bakery of the same type
and having the same volume of gross sales. When adopting a rule
establishing a license fee, notwithstanding the three percent
limit, the department may round the fee amount to the next higher
whole dollar amount. Fee schedules adopted under this section may
not change the amount of the same license fee more frequently
than once each year. + }
  SECTION 12.  { + (1) Notwithstanding the amendments to ORS
625.180 by section 11 of this 2012 Act, the license fee amounts
authorized by ORS 625.180 as set forth in the 2011 Edition of
Oregon Revised Statutes and in effect on the effective date of
this 2012 Act shall remain in effect until superseded by license
fees established by State Department of Agriculture rules.
  (2) The department shall adopt initial rules establishing
license fees under ORS 625.180 to take effect no later than July
1, 2013. For the purpose of adopting initial rules establishing
license fees under ORS 625.180, the license fees authorized by
ORS 625.180 as set forth in the 2011 Edition of Oregon Revised
Statutes and in effect on the effective date of this 2012 Act are
deemed to be the license fees charged during the year preceding
adoption of the rule. + }

Enrolled House Bill 4003 (HB 4003-A)                      Page 12

  SECTION 13. ORS 628.240 is amended to read:
  628.240.   { - (1) The license fee for a refrigerated locker
plant is $100. - }
   { +  (1) An applicant for a refrigerated locker plant license
shall pay a license fee to the State Department of Agriculture.
The department may adopt rules establishing a license fee for a
refrigerated locker plant. Except as provided in this subsection,
the department may not adopt a rule under this section to
establish a license fee that is more than three percent higher
than the fee charged during the preceding year. When adopting a
rule establishing a license fee, notwithstanding the three
percent limit, the department may round the fee amount to the
next higher whole dollar amount. The department may not change
the amount of the refrigerated locker plant license fee more
frequently than once each year. + }
  (2) If the license is issued after January 1 but before June 30
of the same year, the license fee shall be one-half of the fee
  { - provided in - }   { + established by the department by rule
under + } subsection (1) of this section.
  (3) All fees received by the   { - State Department of
Agriculture pursuant to - }   { + department under + } ORS
628.210 to 628.370 shall be deposited in the Department of
Agriculture Service Fund and are continuously appropriated to the
department for the purpose of administering and enforcing those
sections.
  SECTION 14.  { + (1) Notwithstanding the amendments to ORS
628.240 by section 13 of this 2012 Act, the license fee amount
authorized by ORS 628.240 as set forth in the 2011 Edition of
Oregon Revised Statutes and in effect on the effective date of
this 2012 Act shall remain in effect until superseded by a
license fee established by State Department of Agriculture rules.
  (2) The department shall adopt initial rules establishing a
license fee under ORS 628.240 to take effect no later than July
1, 2013. For the purpose of adopting initial rules establishing
the license fee under ORS 628.240, the license fee authorized by
ORS 628.240 as set forth in the 2011 Edition of Oregon Revised
Statutes and in effect on the effective date of this 2012 Act is
deemed to be the license fee charged during the year preceding
adoption of the rule. + }
  SECTION 15. ORS 632.720 is amended to read:
  632.720.   { - There shall be paid to - }   { + An applicant
for an egg handler's license shall pay an annual license fee
to + } the State Department of Agriculture with each application
 { - for an egg handler's license an annual license fee of
$25 - } . { +  The department may adopt rules establishing a
license fee for an egg handler.  Except as provided in this
section, the department may not adopt a rule under this section
to establish a license fee that is more than three percent higher
than the fee charged during the preceding year. When adopting a
rule establishing a license fee, notwithstanding the three
percent limit, the department may round the fee amount to the
next higher whole dollar amount. The department may not change
the amount of the egg handler's license fee more frequently than
once each year. + }
  SECTION 16.  { + (1) Notwithstanding the amendments to ORS
632.720 by section 15 of this 2012 Act, the license fee amount
authorized by ORS 632.720 as set forth in the 2011 Edition of
Oregon Revised Statutes and in effect on the effective date of
this 2012 Act shall remain in effect until superseded by a
license fee established by State Department of Agriculture rules.

Enrolled House Bill 4003 (HB 4003-A)                      Page 13

  (2) The department shall adopt initial rules establishing a
license fee under ORS 632.720 to take effect no later than July
1, 2013. For the purpose of adopting initial rules establishing a
license fee under ORS 632.720, the license fee authorized by ORS
632.720 as set forth in the 2011 Edition of Oregon Revised
Statutes and in effect on the effective date of this 2012 Act is
deemed to be the license fee charged during the year preceding
adoption of the rule. + }
  SECTION 17. ORS 635.030 is amended to read:
  635.030. (1) Any person desiring to or who does engage in the
business of a nonalcoholic beverage manufacturer shall apply to
the State Department of Agriculture for a license for each plant
operated by such person. The application shall be in such form
and contain such information as the department may prescribe.
    { - (2) Each nonalcoholic beverage manufacturer doing
business in this state shall pay a license fee. - }
    { - (3) The license fees for a nonalcoholic beverage
manufacturer are: - }
    { - (a) $162 if the manufacturer's annual gross sales are not
more than $50,000; - }
    { - (b) $271 if the manufacturer's annual gross sales are
more than $50,000 and not more than $500,000; - }
    { - (c) $379 if the manufacturer's annual gross sales are
more than $500,000 and not more than $1 million; - }
    { - (d) $595 if the manufacturer's annual gross sales are
more than $1 million and not more than $5 million; - }
    { - (e) $704 if the manufacturer's annual gross sales are
more than $5 million and not more than $10 million; or - }
    { - (f) $920 if the manufacturer's annual gross sales are
more than $10 million. - }
    { - (4) - }   { + (2) The department may adopt rules
establishing license fee schedules for nonalcoholic beverage
manufacturers. The department may determine the license fee for a
manufacturer based upon the annual gross sales by the
manufacturer. + } In establishing the amount of the license fee
for a manufacturer, the department shall use the annual gross
sales by that manufacturer within Oregon during the prior
calendar year or, if the manufacturer maintains sales records on
a fiscal basis, the prior fiscal year.  If the manufacturer
applying for an original license or for a renewal license cannot
provide the annual gross sales for a full calendar year, the
department shall base the fee on estimated annual gross sales by
the manufacturer. If a manufacturer whose previous year's fee was
determined using an estimated gross sales figure applies for
renewal of that license, the fee for the previous license year
shall be adjusted to reflect the actual gross sales by the
manufacturer.
   { +  (3) Except as provided in this subsection, the department
may not adopt a rule under this section to establish a license
fee that is more than three percent higher than the license fee
charged during the preceding year for a manufacturer having the
same volume of gross sales. When adopting a rule establishing a
license fee, notwithstanding the three percent limit, the
department may round the fee amount to the next higher whole
dollar amount. Fee schedules adopted under this section may not
increase the amount of the same license fee more frequently than
once each year. + }
    { - (5) - }  { +  (4) + }   { - All such - }  Licenses
 { + issued under this section + } shall expire on June 30 next
following the date of issuance or on such date as may be

Enrolled House Bill 4003 (HB 4003-A)                      Page 14

specified by department rule. The department shall collect  { + a
license fee + } for each license and for each renewal
  { - thereof the license fee computed as provided in subsection
(3) of this section - }  { +  of a license + }. The fee shall be
remitted by the department to the State Treasurer. The State
Treasurer shall place all moneys received under this section in
the Department of Agriculture Service Fund. Moneys from fees
imposed under this section are continuously appropriated to the
department for the purpose of administering and enforcing the
provisions of this chapter.
  SECTION 18.  { + (1) Notwithstanding the amendments to ORS
635.030 by section 17 of this 2012 Act, the license fee amounts
authorized by ORS 635.030 as set forth in the 2011 Edition of
Oregon Revised Statutes and in effect on the effective date of
this 2012 Act shall remain in effect until superseded by license
fees established by State Department of Agriculture rules.
  (2) The department shall adopt initial rules establishing
license fees under ORS 635.030 to take effect no later than July
1, 2013. For the purpose of adopting initial rules establishing
license fees under ORS 635.030, the license fees authorized by
ORS 635.030 as set forth in the 2011 Edition of Oregon Revised
Statutes and in effect on the effective date of this 2012 Act are
deemed to be the license fees charged during the year preceding
adoption of the rule. + }
  SECTION 19. ORS 603.031 is amended to read:
  603.031. (1) The State Department of Agriculture may issue
licenses under this chapter to one or more additional users of a
custom processing establishment, custom slaughtering
establishment, meat seller establishment, nonslaughtering
processing establishment or slaughterhouse that is licensed
primarily for operation by another person. A license issued to an
additional user of an establishment described in this subsection
shall cover all operations at that establishment by the person
licensed. Regardless of the number of persons licensed to use an
establishment described in this subsection, the department may
not recognize more than one person as the primary operator of the
establishment.
  (2) The department may assess a license fee to an additional
user of an establishment described in this section, calculated as
provided in  { + rules adopted under + } ORS 603.025. In
calculating license fees  { + as provided + } under ORS 603.025,
the establishment's annual gross dollar volume of sales and
services for an additional user of the establishment is
independent of the establishment's annual gross dollar volume of
sales for any other user or the primary operator of the
establishment.
  (3) Notwithstanding ORS 603.025, the department may adopt rules
to establish the license expiration, renewal and application
dates for additional users of an establishment.
  (4) The department may adopt rules to determine the
responsibilities of an establishment's primary operator and
additional users of the establishment under ORS 603.034, 603.045
(6), 603.055 and 603.059 and rules adopted under ORS 603.055 and
603.085.
  (5) A recognized primary operator of an establishment shall
notify the department upon the expiration or termination of the
rental or lease of the establishment by an additional user of the
establishment. The renting or leasing of an establishment to a
person licensed by the department as an additional user of the
establishment or the expiration or termination of use by a person

Enrolled House Bill 4003 (HB 4003-A)                      Page 15

licensed as an additional user of the establishment does not, by
itself, constitute the transfer of a business for purposes of ORS
603.027.
  SECTION 20.  { + Notwithstanding the amendments to ORS 603.031
by section 19 of this 2012 Act, prior to July 1, 2013, if the
State Department of Agriculture has not adopted rules
establishing license fees under ORS 603.025 the department shall
calculate the ORS 603.031 license fee as provided in ORS 603.025
as set forth in the 2011 Edition of Oregon Revised Statutes. + }
  SECTION 21. ORS 616.708 is amended to read:
  616.708. (1) The State Department of Agriculture may issue
licenses under ORS 616.695 to 616.755 to one or more additional
users of a food establishment that is licensed primarily for
operation by another person. A license issued to an additional
user of the food establishment shall cover all operations at that
establishment by the person licensed. Regardless of the number of
persons licensed to use a food establishment, the department may
not recognize more than one person as the primary operator of the
establishment.
  (2) The department may assess a license fee to an additional
user of a food establishment, calculated as provided in
 { + rules adopted under + } ORS 616.706. In calculating license
fees  { + as provided + } under ORS 616.706, the gross sales for
an additional user of the food establishment are independent of
the gross sales by any other user or the primary operator of the
food establishment.
  (3) Notwithstanding ORS 616.706, the department may adopt rules
to establish the license expiration, renewal and application
dates for additional users of a food establishment.
  (4) The department may adopt rules to determine the
responsibilities of a food establishment's primary operator and
additional users of the food establishment under ORS 616.700,
616.735 and 616.740.
  (5) A recognized primary operator of a food establishment shall
notify the department upon the expiration or termination of the
rental or lease of the food establishment by an additional user
of the establishment. The renting or leasing of a food
establishment to a person licensed by the department as an
additional user of the establishment or the expiration or
termination of use by a person licensed as an additional user of
the establishment does not, by itself, constitute the ceasing or
discontinuance of operations or business at the food
establishment by the primary operator or another additional user
for purposes of ORS 616.706.
  (6) Subsections (1) to (5) of this section do not apply to a
food establishment located in an area that is part of a domestic
kitchen.
  SECTION 22.  { + Notwithstanding the amendments to ORS 616.708
by section 21 of this 2012 Act, prior to July 1, 2013, if the
State Department of Agriculture has not adopted rules
establishing license fees under ORS 616.706 the department shall
calculate the ORS 616.708 license fee as provided in ORS 616.706
as set forth in the 2011 Edition of Oregon Revised Statutes. + }
  SECTION 23. ORS 621.078 is amended to read:
  621.078. (1) The State Department of Agriculture may issue a
distributor or producer-distributor license under ORS 621.072 to
one or more additional users of a milk processing plant that is
primarily operated by another distributor or
producer-distributor.  A license issued to an additional user for
activities at the milk processing plant may differ in activity

Enrolled House Bill 4003 (HB 4003-A)                      Page 16

type and fluid milk grade from the license issued to the primary
operator of the plant. The physical facilities of the milk
processing plant must conform to the requirements for all
activity types and milk grades for which the primary operator and
the additional users of the plant are licensed. Regardless of the
number of persons licensed to use a milk processing plant, the
department may not recognize more than one distributor or
producer-distributor as the primary operator of the plant.
  (2) The department may assess a distributor or
producer-distributor license fee to an additional user of a milk
processing plant, calculated as provided in  { + rules adopted
under + } ORS 621.072. In calculating license fees  { + as
provided + } under ORS 621.072, the annual gross dollar volume of
sales and services for an additional user of a milk processing
plant is independent of the annual gross dollar volume of sales
and services for any other user or the primary operator of the
plant.
  (3) Notwithstanding ORS 621.072, the department may adopt rules
to establish the license expiration, renewal and application
dates for distributors or producer-distributors that are
additional users of a milk processing plant.
  (4) The department may adopt rules to determine the
responsibilities of a milk processing plant's primary operator
and additional users of the milk processing plant under standards
prescribed by ORS 621.176 and 621.181 and under ORS 621.183.
  (5) A recognized primary operator of a milk processing plant
shall notify the department upon the expiration or termination of
the rental or lease of the plant by an additional user of the
plant.
  SECTION 24.  { + Notwithstanding the amendments to ORS 621.078
by section 23 of this 2012 Act, prior to July 1, 2013, if the
State Department of Agriculture has not adopted rules
establishing license fees under ORS 621.072 the department shall
calculate the ORS 621.078 license fee as provided in ORS 621.072
as set forth in the 2011 Edition of Oregon Revised Statutes. + }
  SECTION 25. ORS 621.169 is amended to read:
  621.169. (1) The State Department of Agriculture may issue a
dairy products plant license under ORS 621.166 to one or more
additional users of a dairy products plant that processes or uses
milk to manufacture dairy products and is primarily operated by
another person. A license issued to an additional user for
activities at the dairy products plant shall cover all operations
at that plant by the person licensed. Regardless of the number of
persons licensed to use a dairy products plant, the department
may not recognize more than one person as the primary operator of
the plant.
  (2) The department may assess a license fee to an additional
user of a dairy products plant described in subsection (1) of
this section, calculated as provided in  { + rules adopted
under + } ORS 621.166. In calculating license fees  { + as
provided + } under ORS 621.166, the annual gross dollar volume of
sales and services for an additional user of the dairy products
plant is independent of the annual gross dollar volume of sales
and services for any other user or the primary operator of the
plant.
  (3) Notwithstanding ORS 621.166, the department may adopt rules
to establish the license expiration, renewal and application
dates for additional users of a dairy products plant.
  (4) The department may adopt rules to determine the
responsibilities of the dairy products plant's primary operator

Enrolled House Bill 4003 (HB 4003-A)                      Page 17

and additional users of the dairy products plant's under
standards prescribed by ORS 621.176 and 621.181 and under ORS
621.183.
  (5) A recognized primary operator of a dairy products plant
shall notify the department upon the expiration or termination of
the rental or lease of the plant by an additional user of the
plant.
  SECTION 26.  { + Notwithstanding the amendments to ORS 621.169
by section 25 of this 2012 Act, prior to July 1, 2013, if the
State Department of Agriculture has not adopted rules
establishing license fees under ORS 621.166 the department shall
calculate the ORS 621.169 license fee as provided in ORS 621.166
as set forth in the 2011 Edition of Oregon Revised Statutes. + }
  SECTION 27. ORS 625.030 is amended to read:
  625.030. Application for a bakery license shall be made in
writing to the State Department of Agriculture on forms supplied
by the department. After receipt of the application and the fees
required by  { + rules adopted under + } ORS 625.180, the
department shall cause to be made a proper detailed inspection of
the premises and equipment or of the plans and specifications of
the bakery involved. If the department finds that the premises
and equipment are or will be of a sanitary construction, design
or condition and that the applicant has complied with and will be
able to comply with ORS 625.010 to 625.270, the application shall
be approved and the department shall issue to the applicant a
numbered license certificate bearing the name and address of the
licensee and of the premises licensed.
  SECTION 28.  { + Notwithstanding the amendments to ORS 625.030
by section 27 of this 2012 Act, prior to July 1, 2013, if the
State Department of Agriculture has not adopted rules
establishing license fees under ORS 625.180 the license fee for
an application filed under ORS 625.030 is the applicable license
fee required under ORS 625.180 as set forth in the 2011 Edition
of Oregon Revised Statutes. + }
  SECTION 29. ORS 625.055 is amended to read:
  625.055. (1) The State Department of Agriculture may issue
licenses under ORS 625.030 to one or more additional users of a
bakery that is licensed primarily for operation by another
person.  A license issued to an additional user of the bakery
shall cover all operations at that bakery by the person licensed.
Regardless of the number of persons licensed to use a bakery, the
department may not recognize more than one person as the primary
operator of the bakery.
  (2) The department may assess a license fee to an additional
user of a bakery, calculated as provided in  { + rules adopted
under + } ORS 625.180. In calculating license fees  { + as
provided + } under ORS 625.180, the gross sales by an additional
user of a bakery are independent of the gross sales by any other
user or the primary operator of the bakery.
  (3) Notwithstanding ORS 625.050, the department may adopt rules
to establish the license expiration, renewal and application
dates for additional users of a bakery.
  (4) The department may adopt rules to determine the
responsibilities of a bakery's primary operator and additional
users of the bakery under requirements prescribed by the
department as provided under ORS 625.150.
  (5) A recognized primary operator of a bakery shall notify the
department upon the expiration or termination of the rental or
lease of the bakery by an additional user of the bakery.

Enrolled House Bill 4003 (HB 4003-A)                      Page 18

  (6) Subsections (1) to (5) of this section do not apply to a
bakery located in an area that is part of a domestic kitchen.
  SECTION 30.  { + Notwithstanding the amendments to ORS 625.055
by section 29 of this 2012 Act, prior to July 1, 2013, if the
State Department of Agriculture has not adopted rules
establishing license fees under ORS 625.180 the department shall
calculate the ORS 625.055 license fee as provided in ORS 625.180
as set forth in the 2011 Edition of Oregon Revised Statutes. + }
  SECTION 31. ORS 625.090 is amended to read:
  625.090. Application for a  { + bakery + } distributor's
license shall be filed in writing with the State Department of
Agriculture on the form prescribed and supplied by the
department. After receipt of the application and the fees
required by  { + rules adopted under + } ORS 625.180, the
department shall cause to be made a proper detailed inspection of
the premises and equipment to be used by the applicant in
distribution within this state of bakery products. If the
department finds that the premises and equipment are or will be
of a sanitary construction, design or condition and that the
applicant has complied with and will be able to comply with ORS
625.010 to 625.270, the application shall be approved and there
shall be issued to the applicant a numbered license certificate
bearing the name and address of the licensee.
  SECTION 32.  { + Notwithstanding the amendments to ORS 625.090
by section 31 of this 2012 Act, prior to July 1, 2013, if the
State Department of Agriculture has not adopted rules
establishing license fees under ORS 625.180 the department shall
assess the ORS 625.090 license fee in effect on the effective
date of this 2012 Act. + }
  SECTION 33. ORS 632.741 is amended to read:
  632.741. (1) In addition to the license fee   { - prescribed
in - }  { +  adopted by rule under + } ORS 632.720, each egg
handler shall pay to the State Department of Agriculture a fee
prescribed by the department, not to exceed two and one-half
mills per dozen eggs sold by such egg handler. Such fee shall be
paid by remitting monthly payments, on dates prescribed by the
department, accompanied by such reports concerning egg sales as
the department may prescribe. The egg handler utilizing this
method shall prepare and maintain adequate books and records
evidencing the egg sales, and shall keep the same for at least
two years. The department is authorized to inspect and audit such
books and records as provided in ORS 561.265 and the egg handler
shall pay to the department its costs for the same. The
department shall assign such egg handler a permit number to be
placed on egg containers in the manner prescribed by the
department.
  (2) The fees required to be paid under subsection (1) of this
section and, except as otherwise provided   { - therein - }  { +
under ORS 632.771 + }, the labeling required by ORS 632.771
 { - shall - }  { +  do + } not apply to:
  (a) Eggs sold and shipped outside of this state;
  (b) Eggs sold to the United States Government;
  (c) Bulk sales of eggs;
  (d) Eggs sold to another egg handler for processing into egg
products; or
  (e) Eggs sold by a producer to consumers at the place of
production.
  SECTION 34.  { + The amendments to ORS 632.741 by section 33 of
this 2012 Act become operative on the earlier of:
  (1) July 1, 2013; or

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  (2) The effective date of State Department of Agriculture rules
establishing license fees under ORS 632.720. + }
  SECTION 35. ORS 603.200 is amended to read:
  603.200. Notwithstanding any other provision of law:
  (1) In the absence of a contract or other agreement providing
otherwise, any processor who purchases meat animals from the
producers thereof shall make full payment therefor not later than
the second business day after the day the processor takes
delivery of any such meat animal.
  (2) In the absence of a contract or other agreement providing
otherwise, any meat seller who purchases meat or meat products
from the processor thereof shall make full payment therefor not
later than the seventh business day after the day the meat seller
takes delivery of any such meat or meat product.
  (3) Any person who fails to make payment as required by
subsections (1) and (2) of this section shall pay, in addition to
the amount due, interest thereon at the rate of one percent per
month.
  (4) As used in this section:
  (a) 'Meat animal' has the meaning for that term provided in ORS
603.010.
  (b) 'Meat or meat product' has the meaning for that term
provided in ORS 603.010.
  (c) 'Meat seller' means a person required to obtain a license
 { - the fee for which is prescribed - }  { +  described + } in
ORS 603.025 (4)(a).
  (d) 'Processor' means a person required to obtain a license
  { - the fee for which is prescribed - }  { +  described + } in
ORS 603.025 (4)(b) to (e).
  SECTION 36. ORS 603.025, as amended by section 1 of this 2012
Act, is amended to read:
  603.025. (1) A person may not sell, offer to sell or expose for
sale meat products or engage in any other activity described or
identified in subsection (4) of this section without first
obtaining and maintaining a license for that activity from the
State Department of Agriculture. All such licenses shall expire
on June 30 next following the date of issuance or on such date as
may be specified by department rule. Renewal applications must be
postmarked before the expiration date to be timely.
  (2) Application for a license required by this section shall be
made to the department on forms prescribed by the department and
shall contain any information the department deems necessary.
The license is personal and nontransferable, with a separate
license required for each establishment location. A new license
is required each time there is a change in ownership, legal
entity or establishment location.
  (3) In addition to other license requirements of this section,
if an applicant for a license under subsection (4)(c) of this
section has an average weekly dollar value of meat animal
purchases that exceeds $10,000, the applicant shall submit with
the application a surety bond with one or more corporate sureties
authorized to do business in this state, or an irrevocable letter
of credit issued by an insured institution, as defined in ORS
706.008. The bond or letter of credit shall be in an amount equal
to twice the average daily value of meat animal purchases during
the preceding calendar year, or the amount of $20,000, whichever
amount is greater. The department shall prescribe the form for
the bond or letter of credit. A bond or letter of credit is
subject to department approval and must be conditioned upon
faithful performance by the licensee of all obligations to the

Enrolled House Bill 4003 (HB 4003-A)                      Page 20

producers of meat animals arising from the sale of meat animals
by producers to the licensee.
  (4) Each of the following activities must be licensed, and the
fee established by the department paid with the license
application:
  (a) Operation of a meat seller establishment. A license under
this section allows only the meat products preparation described
in ORS 603.010 (8).
  (b) Operation of a nonslaughtering processing establishment.  A
license under this section allows selling meat products at the
same location without obtaining the license described in
paragraph (a) of this subsection.
  (c) Operation of a slaughterhouse. A license under this section
allows selling meat products at the same location without
obtaining the license described in paragraph (a) of this
subsection.
  (d) Operation of a custom slaughtering establishment or custom
processing establishment. A license under this section does not
allow selling meat products without first obtaining and
maintaining the license described in paragraph (a) of this
subsection.
  (e) Operation of a slaughterhouse, custom slaughtering
establishment or custom processing establishment wherein only
poultry or rabbits are slaughtered or prepared. A license under
this section allows selling only poultry or rabbit products at
the same location without obtaining the license described in
paragraph (a) of this subsection.
  (5) The license required by this section shall be displayed at
all times in a conspicuous manner at the address shown on the
license.
  (6) The department may adopt rules establishing license fee
schedules for establishments licensed under this section. The
department may determine the license fee for an establishment
based upon the annual gross dollar volume of sales and services
by the applicant. In establishing the amount of the license fee
for an establishment, the State Department of Agriculture shall
use the annual gross dollar volume of sales and services by that
establishment within Oregon during the prior calendar year or, if
the establishment maintains sales and service records on a fiscal
basis, the prior fiscal year. If the establishment applying for
an original license or for a renewal license cannot provide the
annual gross dollar volume of sales and services for a full
calendar year, the department shall base the fee on estimated
annual gross sales and services by the establishment. If an
establishment whose previous year's fee was determined using an
estimated gross sales and services figure applies for renewal of
that license, the fee for the previous license year shall be
adjusted to reflect the actual annual gross dollar volume of
sales and services by the establishment.
  (7)   { - Except as provided in this subsection, the department
may not adopt a rule under this section to establish a license
fee that is more than three percent higher than the license fee
charged during the preceding year for an establishment of the
same type and having the same volume of gross sales and services.
When adopting a rule establishing a license fee, notwithstanding
the three percent limit, the department may round the fee amount
to the next higher whole dollar amount. - }   { + The department
may not adopt or enforce a rule under this section establishing a
license fee that is higher than the license fee charged for the
license year that began July 1, 2018, for an establishment of the

Enrolled House Bill 4003 (HB 4003-A)                      Page 21

same type and having the same volume of gross sales and
services. + } Fee schedules adopted under this section may not
change the amount of the same license fee more frequently than
once each year.
  SECTION 37. ORS 616.706, as amended by section 3 of this 2012
Act, is amended to read:
  616.706. (1) Except as otherwise provided in ORS 616.695 to
616.755, a person may not operate a food establishment without
first obtaining and thereafter maintaining a license under this
section. A person shall make an application for a license to the
State Department of Agriculture on forms prescribed by the
department. Each license shall expire on June 30 next following
the date of issuance or on such date as may be specified by
department rule.
  (2) The department may, subject to the applicable provisions of
ORS chapter 183, suspend, revoke or refuse to issue a license if
the licensee has violated any of the provisions of ORS 616.695 to
616.755 or rules adopted under ORS 616.695 to 616.755.
  (3) A license is personal to the applicant and may not be
transferred. A new license is necessary if the business entity of
the licensee is changed, or if the membership of a partnership is
changed, irrespective of whether or not the business name is
changed.
  (4) The license shall cover all operations of the person
licensed, under one entity or ownership. With prior approval of
the department, the location of a licensed food establishment, or
any part of a licensed food establishment, may be moved without
the requirement of a new license if there is no change in the
ownership or business entity.
  (5) The license shall be posted in a conspicuous place in the
main office of the food establishment. Duplicate copies of the
license shall be conspicuously posted in branch offices,
warehouses and other places owned or operated by the licensee at
locations other than the main office. A license is automatically
canceled if the food establishment ceases or discontinues
operations or business.
  (6) The department may adopt rules establishing license fee
schedules for a food establishment:
  (a) That is part of a domestic kitchen;
  (b) That is a retail food store;
  (c) That is a warehouse; or
  (d) That is other than part of a domestic kitchen, retail food
store or warehouse.
  (7) The department may determine the license fee for a food
establishment described in subsection (6)(b) to (d) of this
section based upon the gross sales by the applicant. In
establishing the amount of a license fee based upon gross sales
by an applicant, the department shall use the annual gross dollar
volume of sales of covered operations by that applicant within
Oregon during the prior calendar year or, if the applicant
maintains sales records on a fiscal basis, the prior fiscal year.
If the applicant applying for an original license or for a
renewal license cannot provide the annual gross dollar volume of
sales of covered operations for a full calendar year, the
department shall base the fee on estimated annual gross sales of
covered operations by the applicant. If an applicant whose
previous year's fee was determined using an estimated gross sales
of covered operations figure applies for renewal of that license,
the fee for the previous license year shall be adjusted to

Enrolled House Bill 4003 (HB 4003-A)                      Page 22

reflect the actual gross dollar volume of sales of covered
operations by the applicant.
  (8)   { - Except as provided in this subsection, the department
may not adopt a rule under this section to establish a license
fee that is more than three percent higher than the license fee
charged during the preceding year for a food establishment of the
same type and having the same volume of gross sales. When
adopting a rule establishing a license fee, notwithstanding the
three percent limit, the department may round the fee amount to
the next higher whole dollar amount. - }   { + The department may
not adopt or enforce a rule under this section establishing a
license fee that is higher than the license fee charged for the
license year that began July 1, 2018, for an establishment of the
same type and having the same volume of gross sales. + } License
fee schedules adopted under this section may not change the
amount of the same license fee more frequently than once each
year.
  SECTION 38. ORS 619.031, as amended by section 5 of this 2012
Act, is amended to read:
  619.031. (1) A person may not operate an animal food
slaughtering establishment or processing establishment without
first obtaining a license for the establishment from the State
Department of Agriculture.
  (2) The department may adopt rules establishing license fee
schedules for establishments licensed under this section. The
department may determine the license fee for an establishment
based upon the annual gross dollar volume of sales and services
by the applicant. In establishing the amount of the license fee
for an applicant, the department shall use the annual gross
dollar volume of sales and services by that applicant within
Oregon during the prior calendar year or, if the applicant
maintains sales and service records on a fiscal basis, the prior
fiscal year. If the applicant applying for an original license or
for a renewal license cannot provide the annual gross dollar
volume of sales and services for a full calendar year, the
department shall base the fee on estimated annual gross sales and
services by the applicant. If an applicant whose previous year's
fee was determined using an estimated gross sales and services
figure applies for renewal of that license, the fee for the
previous license year shall be adjusted to reflect the actual
gross dollar volume of sales and services by the applicant. The
license shall expire on June 30 next following the date of
issuance or on such date as may be specified by department rule.
  (3)   { - Except as provided in this subsection, the department
may not adopt a rule to establish a license fee that is more than
three percent higher than the license fee charged during the
preceding year for an establishment of the same type and having
the same volume of gross sales and services. When adopting a rule
establishing a license fee, notwithstanding the three percent
limit, the department may round the fee amount to the next higher
whole dollar amount. - }   { + The department may not adopt or
enforce a rule under this section establishing a license fee that
is higher than the license fee charged for the license year that
began July 1, 2018, for an establishment of the same type and
having the same volume of gross sales and services. + } Fee
schedules adopted under this section may not change the amount of
the same license fee more frequently than once each year.
  (4) The provisions of ORS 603.025 (2) and (5), 603.034 (1) and
(2), 603.045 (7) and 603.075 shall apply to animal food
slaughtering establishments or processing establishments. Except

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as provided in this subsection, the remainder of the provisions
of ORS chapter 603 do not apply to such establishments.
  (5) Notwithstanding subsection (1) of this section, a person
licensed by the department under ORS chapter 603 to slaughter
meat animals and subject to federal meat inspection, or a person
licensed by the department under ORS chapter 603 to slaughter
only poultry and rabbits and subject to federal poultry
inspection, or a person licensed by the department under ORS
chapter 603 as a nonslaughtering processor may, without being
required to obtain an additional license, also sell or dispose of
meat products as animal food provided that such licensees also
comply with the provisions of subsection (6) of this section, ORS
619.010 to 619.026 and 619.036 to 619.066.
  (6) In accordance with the provisions of ORS chapter 183, the
department may promulgate rules necessary to carry out and
enforce any procedures or measures to protect the health of the
animals that are fed or intended to be fed the meat products sold
or disposed of by animal food slaughtering establishments or
processing establishments, and to protect the health of other
animals in this state. In addition to the provisions of ORS
619.046, for the purposes of this section the department shall
take into consideration:
  (a) The provisions of ORS chapter 596.
  (b) The procedures necessary to ensure that meat products that
are only fit for or destined for animal consumption are not sold
for human consumption.
  (7) A person licensed as provided by this section:
  (a) May not sell, hold or offer for sale any carcass of a meat
animal or part thereof that is unfit for or unwholesome as animal
food.
  (b) May not sell, hold or offer for sale a carcass of a meat
animal or part thereof for human consumption.
  (c) Shall keep complete and accurate records of the meat
animals purchased for slaughter, including but not limited to
their description, brands if any, date of purchase and the name
and address of the person from whom the animals were purchased.
  (d) Shall keep complete and accurate records of the sale of all
meat animal carcasses or parts of meat animal carcasses,
including the name and address of the purchaser.
  (e) Shall comply with the provisions of ORS 619.026.
  SECTION 39. ORS 621.072, as amended by section 7 of this 2012
Act, is amended to read:
  621.072. (1) The State Department of Agriculture shall issue a
license to use a grade designation to any person who:
  (a) Makes written application for a license on forms provided
by the department;
  (b) Pays the designated license fee;
  (c) Is engaged in the business of producing or distributing
fluid milk; and
  (d) Meets the requirements of the particular grade designation
for which application is made.
  (2) If a person carries on the activities of a producer and a
producer-distributor, the person must obtain a separate license
for each of those activities. If a producer-distributor
manufactures products from both grade A fluid milk and grade B
fluid milk at the same premises, the producer-distributor must
obtain separate licenses for grade A product manufacturing
activity and grade B product manufacturing activity.
  (3) Licenses issued under this section shall be personal and
not transferable.

Enrolled House Bill 4003 (HB 4003-A)                      Page 24

  (4) Each milk hauler, milk receiver or other person who grades
fluid milk as fit or unfit for processing as fluid milk due to
quality, odor, flavor or wholesomeness must first obtain a
license from the department authorizing that person to sample and
grade fluid milk. Each applicant for a milk sampler's and
grader's license shall, by written examination, demonstrate an
adequate knowledge of milk sanitation as it relates to the
sampling, grading and handling of fluid milk and cream for
analysis. The department shall give examinations for licenses at
such times and places as appears to be necessary and practicable.
  (5) Before and after issuing a license to a person as a
producer, producer-distributor, distributor or nonprocessing
distributor of fluid milk, the department shall, as it deems
necessary, inspect the physical facilities of the applicant's
dairy, milk processing plant or distribution center and
investigate other factors the department determines may relate to
the production, processing or distribution of fluid milk. The
physical facilities must conform to the production, processing or
distribution requirements for the fluid milk grade designation
sought or held.
  (6) Each license issued under this section expires on June 30
next following the date of its issuance unless sooner revoked and
may be renewed upon application of the licensee. Each application
for a license or annual renewal of a license shall be accompanied
by a license fee.
  (7) The department may adopt rules establishing license fee
schedules for:
  (a) Milk samplers and graders;
  (b) Producer-distributors, distributors and nonprocessing
distributors; and
  (c) Producers.
  (8) The department may determine the license fee for a
producer-distributor, distributor or nonprocessing distributor
based upon the annual gross dollar volume of sales and services
by the applicant. In establishing the amount of the license fee
for an applicant under this subsection, the department shall use
the annual gross dollar volume of sales and services by that
applicant within Oregon during the prior calendar year or, if the
applicant maintains sales and service records on a fiscal basis,
the prior fiscal year. If the applicant applying for an original
license or for a renewal license cannot provide the annual gross
dollar volume of sales and services for a full calendar year, the
department shall base the fee on estimated annual gross sales and
services by the applicant. If an applicant whose previous year's
fee was determined using an estimated gross sales and services
figure applies for renewal of that license, the fee for the
previous license year shall be adjusted to reflect the actual
gross dollar volume of sales and services by the applicant.
  (9) The department may determine the license fee for a producer
based upon the annual gross sales by the applicant. In
establishing the amount of the license fee for an applicant under
this subsection, the department shall use the annual gross sales
by that applicant within Oregon during the prior calendar year
or, if the applicant maintains sales records on a fiscal basis,
the prior fiscal year. If the applicant applying for an original
license or for a renewal license cannot provide the annual gross
sales for a full calendar year, the department shall base the fee
on estimated annual gross sales by the applicant. If an applicant
whose previous year's fee was determined using an estimated gross
sales figure applies for renewal of that license, the fee for the

Enrolled House Bill 4003 (HB 4003-A)                      Page 25

previous license year shall be adjusted to reflect the actual
gross sales by the applicant.
  (10)   { - Except as provided in this subsection, the
department may not adopt a rule under this section to establish a
license fee that is more than three percent higher than the fee
charged during the preceding year for a milk sampler and grader,
for a producer-distributor, distributor or nonprocessing
distributor having the same volume of gross sales and services or
for a producer having the same volume of gross sales. When
adopting a rule establishing a license fee, notwithstanding the
three percent limit, the department may round the fee amount to
the next higher whole dollar amount. - }   { + The department may
not adopt or enforce a rule under this section establishing a
license fee for a milk sampler and grader that is higher than the
license fee charged for the license year that began July 1, 2018,
for a milk sampler and grader. The department may not adopt or
enforce a rule under this section establishing a license fee for
a producer-distributor, distributor or nonprocessing distributor
that is higher than the license fee charged for the license year
that began July 1, 2018, for a producer-distributor, distributor
or nonprocessing distributor having the same volume of gross
sales and services.  The department may not adopt or enforce a
rule under this section establishing a license fee for a producer
that is higher than the license fee charged for the license year
that began July 1, 2018, for a producer having the same volume of
gross sales. + } Fee schedules adopted under this section may not
change the amount of the same license fee more frequently than
once each year.
  (11) A distributor or producer-distributor must obtain a
license and pay license fees for each physical facility used to
produce, process or distribute fluid milk. A person is not
required to obtain a distributor or producer-distributor license
to act as a milk hauler or to operate receiving or transfer
stations in conjunction with a milk processing plant.
  (12) The department may refuse to issue or renew, or may
suspend or revoke, a license for any violation of this section or
ORS 621.062, 621.070, 621.076, 621.084, 621.088, 621.117, 621.122
or 621.259 or processes or standards established under ORS
621.060 or 621.083.
  SECTION 40. ORS 621.166, as amended by section 9 of this 2012
Act, is amended to read:
  621.166. (1) As used in this section, 'mobile milk tanker '
means a tank or other receptacle that attaches to a bulk tank
truck or other equipment and is used to transport fluid milk,
milk or milk products.
  (2) Application for a dairy products plant license shall be
made to the State Department of Agriculture on forms provided by
the department. Each license and each annual renewal shall expire
on June 30 next following its issuance or on such date as may be
specified by department rule. Dairy products plant licenses are
personal and are not transferable.
  (3) Each dairy products plant shall submit a separate fee
established by the department for each mobile milk tanker. The
fee does not apply to a mobile milk tanker owned and operated by
a dairy products plant while transporting dairy products from the
dairy products plant to wholesale or retail outlets for those
products.
  (4) The department may adopt rules establishing license fee
schedules for:
  (a) Mobile milk tankers; and

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  (b) Dairy products plants.
  (5) The department may determine the license fee for a dairy
products plant based upon the annual gross dollar volume of sales
and services by the applicant. In establishing the amount of the
license fee for an applicant, the department shall use the annual
gross dollar volume of sales and services by that applicant
within Oregon during the prior calendar year or, if the applicant
maintains sales and service records on a fiscal basis, the prior
fiscal year. If the applicant applying for an original license or
for a renewal license cannot provide the annual gross dollar
volume of sales or services for a full calendar year, the
department shall base the fee on estimated annual gross sales and
services by the applicant. If an applicant whose previous year's
fee was determined using an estimated gross sales and services
figure applies for renewal of that license, the fee for the
previous license year shall be adjusted to reflect the actual
gross dollar volume of sales and services by the applicant.
  (6)   { - Except as provided in this subsection, the department
may not adopt a rule under this section to establish a license
fee that is more than three percent higher than the fee charged
during the preceding year for an equivalent mobile milk tanker or
for a dairy products plant having the same volume of gross sales
and services. When adopting a rule establishing a license fee,
notwithstanding the three percent limit, the department may round
the fee amount to the next higher whole dollar amount. - }
 { + The department may not adopt or enforce a rule under this
section establishing a license fee for a mobile milk tanker that
is higher than the license fee charged for the license year that
began July 1, 2018, for an equivalent mobile milk tanker. The
department may not adopt or enforce a rule under this section
establishing a license fee for a dairy products plant that is
higher than the license fee charged for the license year that
began July 1, 2018, for a dairy products plant having the same
volume of gross sales and services. + } Fee schedules adopted
under this section may not change the amount of the same license
fee more frequently than once each year.
  SECTION 41. ORS 625.180, as amended by section 11 of this 2012
Act, is amended to read:
  625.180. (1) Every bakery or bakery distributor doing business
in this state shall pay a license fee.
  (2) The State Department of Agriculture may adopt rules
establishing license fee schedules for:
  (a) A bakery distributor;
  (b) A domestic kitchen bakery; and
  (c) A bakery other than a domestic kitchen bakery.
  (3) The department may determine the license fee for a bakery
or bakery distributor based upon the annual gross sales by the
applicant. In establishing the amount of the license fee for a
bakery or bakery distributor, the department shall use the annual
gross sales by that bakery or distributor within Oregon during
the prior calendar year or, if the bakery or distributor
maintains sales records on a fiscal basis, the prior fiscal year.
If the bakery or distributor applying for an original license or
for a renewal license cannot provide the annual gross sales for a
full calendar year, the department shall base the fee on
estimated annual gross sales by the bakery or distributor. If a
bakery or distributor whose previous year's fee was determined
using an estimated gross sales figure applies for renewal of that
license, the fee for the previous license year shall be adjusted
to reflect the actual gross sales by the bakery or distributor.

Enrolled House Bill 4003 (HB 4003-A)                      Page 27

  (4)   { - Except as provided in this subsection, the department
may not adopt a rule under this section to establish a license
fee that is more than three percent higher than the license fee
charged during the preceding year for a bakery distributor having
the same volume of gross sales or for a bakery of the same type
and having the same volume of gross sales. When adopting a rule
establishing a license fee, notwithstanding the three percent
limit, the department may round the fee amount to the next higher
whole dollar amount. - }   { + The department may not adopt or
enforce a rule under this section establishing a license fee for
a bakery distributor that is higher than the license fee charged
for the license year that began July 1, 2018, for a bakery
distributor having the same volume of gross sales. The department
may not adopt or enforce a rule under this section establishing a
license fee for a bakery that is higher than the license fee
charged for the license year that began July 1, 2018, for a
bakery of the same type and having the same volume of gross
sales. + } Fee schedules adopted under this section may not
change the amount of the same license fee more frequently than
once each year.
  SECTION 42. ORS 628.240, as amended by section 13 of this 2012
Act, is amended to read:
  628.240. (1) An applicant for a refrigerated locker plant
license shall pay a license fee to the State Department of
Agriculture. The department may adopt rules establishing a
license fee for a refrigerated locker plant.   { - Except as
provided in this subsection, the department may not adopt a rule
under this section to establish a license fee that is more than
three percent higher than the fee charged during the preceding
year. When adopting a rule establishing a license fee,
notwithstanding the three percent limit, the department may round
the fee amount to the next higher whole dollar amount. - }
 { + The department may not adopt or enforce a rule under this
section establishing a license fee for a refrigerated locker
plant that is higher than the license fee charged for the license
year that began July 1, 2018, for a refrigerated locker
plant. + } The department may not change the amount of the
refrigerated locker plant license fee more frequently than once
each year.
  (2) If the license is issued after January 1 but before June 30
of the same year, the license fee shall be one-half of the fee
established by the department by rule under subsection (1) of
this section.
  (3) All fees received by the department under ORS 628.210 to
628.370 shall be deposited in the Department of Agriculture
Service Fund and are continuously appropriated to the department
for the purpose of administering and enforcing those sections.
  SECTION 43. ORS 632.720, as amended by section 15 of this 2012
Act, is amended to read:
  632.720. An applicant for an egg handler's license shall pay an
annual license fee to the State Department of Agriculture with
each application. The department may adopt rules establishing a
license fee for an egg handler.   { - Except as provided in this
section, the department may not adopt a rule under this section
to establish a license fee that is more than three percent higher
than the fee charged during the preceding year. When adopting a
rule establishing a license fee, notwithstanding the three
percent limit, the department may round the fee amount to the
next higher whole dollar amount. - }   { + The department may not
adopt or enforce a rule under this section establishing an egg

Enrolled House Bill 4003 (HB 4003-A)                      Page 28

handler license fee that is higher than the egg handler license
fee charged for the license year that began July 1, 2018. + } The
department may not change the amount of the egg handler's license
fee more frequently than once each year.
  SECTION 44. ORS 635.030, as amended by section 17 of this 2012
Act, is amended to read:
  635.030. (1) Any person desiring to or who does engage in the
business of a nonalcoholic beverage manufacturer shall apply to
the State Department of Agriculture for a license for each plant
operated by such person. The application shall be in such form
and contain such information as the department may prescribe.
  (2) The department may adopt rules establishing license fee
schedules for nonalcoholic beverage manufacturers. The department
may determine the license fee for a manufacturer based upon the
annual gross sales by the manufacturer. In establishing the
amount of the license fee for a manufacturer, the department
shall use the annual gross sales by that manufacturer within
Oregon during the prior calendar year or, if the manufacturer
maintains sales records on a fiscal basis, the prior fiscal year.
If the manufacturer applying for an original license or for a
renewal license cannot provide the annual gross sales for a full
calendar year, the department shall base the fee on estimated
annual gross sales by the manufacturer. If a manufacturer whose
previous year's fee was determined using an estimated gross sales
figure applies for renewal of that license, the fee for the
previous license year shall be adjusted to reflect the actual
gross sales by the manufacturer.
  (3)   { - Except as provided in this subsection, the department
may not adopt a rule under this section to establish a license
fee that is more than three percent higher than the license fee
charged during the preceding year for a manufacturer having the
same volume of gross sales. When adopting a rule establishing a
license fee, notwithstanding the three percent limit, the
department may round the fee amount to the next higher whole
dollar amount. - }   { + The department may not adopt or enforce
a rule under this section establishing a license fee that is
higher than the license fee charged for the license year that
began July 1, 2018, for a nonalcoholic beverage manufacturer
having the same volume of gross sales. + } Fee schedules adopted
under this section may not increase the amount of the same
license fee more frequently than once each year.
  (4) Licenses issued under this section shall expire on June 30
next following the date of issuance or on such date as may be
specified by department rule. The department shall collect a
license fee for each license and for each renewal of a license.
The fee shall be remitted by the department to the State
Treasurer. The State Treasurer shall place all moneys received
under this section in the Department of Agriculture Service Fund.
Moneys from fees imposed under this section are continuously
appropriated to the department for the purpose of administering
and enforcing the provisions of this chapter.
  SECTION 45.  { + The amendments to ORS 603.025, 616.706,
619.031, 621.072, 621.166, 625.180, 628.240, 632.720 and 635.030
by sections 36 to 44 of this 2012 Act become operative July 1,
2019. + }
                         ----------

Enrolled House Bill 4003 (HB 4003-A)                      Page 29

Passed by House February 27, 2012

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

    .............................................................
                                    Bruce Hanna, Speaker of House

    .............................................................
                                   Arnie Roblan, Speaker of House

Passed by Senate February 29, 2012

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

Enrolled House Bill 4003 (HB 4003-A)                      Page 30

Received by Governor:

......M.,............., 2012

Approved:

......M.,............., 2012

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

Filed in Office of Secretary of State:

......M.,............., 2012

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

Enrolled House Bill 4003 (HB 4003-A)                      Page 31