Oregon Administrative Rules Chapter 623 - DEPARTMENT OF AGRICULTURE, OREGON HAZELNUT COMMISSION
Oregon Administrative Rules Chapter 623 – Oregon Hazelnut Commission
OAR Chapter 623 establishes the framework for the Oregon Hazelnut Commission, a commodity commission under the Oregon Department of Agriculture. The rules cover:
Procedures for rulemaking
Assessment and sales of hazelnuts
Commission structure, membership, and removal
Compensation and reimbursements for commissioners
These rules implement statutory authority under Oregon Revised Statutes Chapter 576, which governs the promotion, assessment, and regulation of the hazelnut industry in Oregon.
1. Division 1 – Procedural Rules
Notice of Intended Rulemaking
The Commission must provide notice to stakeholders before adopting, amending, or repealing rules.
Notices are sent to growers, handlers, and the public to ensure transparency.
Public comment is allowed before final adoption.
Practical Case #1:
If the Commission decides to increase the per-pound assessment on hazelnuts, it must notify all affected growers and allow them to submit comments. Failure to provide proper notice could result in a challenge to the rule’s validity.
2. Division 10 – Sale and Assessment Rules
Casual Sales Exemption
Small growers selling less than 250 pounds per year directly to consumers are exempt from assessments.
Practical Case #2:
A small orchard sells 200 pounds of hazelnuts at a local farmers’ market. This is considered a casual sale, so the grower owes no assessment.
Assessment on Purchased Hazelnuts
First purchasers (handlers or processors) must collect per-pound assessments from producers.
If the purchaser does not collect the assessment, the producer must self-report and pay it directly.
Practical Case #3:
A producer sells hazelnuts to an out-of-state bakery that does not withhold the assessment. The producer must calculate and remit the assessment to the Commission.
Payment Deadlines and Penalties
Assessment reports are due by February 27 of each crop year; remaining balances due April 30.
Late payments incur a 20% per annum penalty.
Practical Case #4:
A first purchaser files assessment reports late and pays after April 30. The Commission calculates penalties on the overdue balance, which the purchaser must pay.
3. Division 30 – Commission Structure and Membership
Commissioner Terms
The Commission has eight members serving three-year terms.
Terms begin when the previous term expires.
Practical Case #5:
A commissioner completes one term and is reappointed. Their new term starts immediately after the previous term ends, preventing any gap in service.
Commissioner Qualifications
Must be a producer who has paid assessments in the past three years or a handler who has collected assessments.
At least one member must be a handler; a majority must be producers; one may be a public member.
Practical Case #6:
A candidate who has not paid assessments in the past three years is ineligible for appointment as a commissioner, ensuring members are actively engaged in the hazelnut industry.
Removal of Commissioners
Commissioners may be removed for neglect of duty, misconduct, misuse of confidential information, or violation of ethics laws.
Practical Case #7:
If a commissioner leaks confidential discussions to competitors for personal gain, they can be removed “for cause” under the rules.
4. Division 40 – Commissioner Compensation
Per Diem Compensation
Commissioners not employed full-time may receive per-diem for official duties, up to statutory limits.
Claims must include details of time and tasks performed.
Practical Case #8:
A commissioner attends a two-day strategic planning session and submits a detailed claim. The Commission pays the per-diem as allowed by law.
Compensation for Public Members
Public members may receive the same per-diem and travel reimbursements but may choose to decline payment voluntarily.
Practical Case #9:
A public member declines compensation to avoid conflicts of interest. The Commission respects the decision, even though rules authorize payment.
Key Themes and Practical Implications
Transparency in Rulemaking:
Stakeholders must be notified of proposed rules and allowed to comment.
Assessment Compliance:
Producers and first purchasers must correctly calculate, report, and pay assessments to fund the Commission.
Governance Standards:
Only qualified members may serve as commissioners, ensuring industry representation and integrity.
Accountability and Enforcement:
Commissioners can be removed for cause, and penalties apply for late or incorrect assessment payments.
Compensation and Reimbursement:
Commissioners are reimbursed fairly for their service, with options for public members to decline payment to avoid conflicts.
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