Oregon Administrative Rules Chapter 678 - DEPARTMENT OF AGRICULTURE, OREGON WHEAT COMMISSION
Oregon Administrative Rules Chapter 678
Department of Agriculture — Oregon Wheat Commission
I. Overview and Purpose
OAR Chapter 678 governs the Oregon Wheat Commission (OWC), a state agency operating under the Oregon Department of Agriculture (ODA). The OWC’s mission is to promote and support the wheat industry in Oregon, including wheat producers and stakeholders.
The administrative rules in Chapter 678 implement the statutory authority granted under the Oregon Revised Statutes (ORS) Chapter 576, known as the Oregon Wheat Commission Act. This law authorizes the collection of assessments from wheat growers and handlers, which fund research, marketing, education, and advocacy efforts designed to improve the wheat industry’s economic viability.
II. Authority and Statutory Framework
The Oregon Wheat Commission was created by the Oregon legislature to represent and advance the interests of wheat growers. The OAR Chapter 678 provides the detailed administrative rules necessary to:
Collect wheat assessments (also called checkoff fees)
Manage the funds collected
Oversee program implementation
Administer elections for commission members
Ensure compliance with applicable laws and regulations
The Oregon Department of Agriculture provides administrative oversight and regulatory enforcement.
III. Structure and Governance of the Oregon Wheat Commission
The Commission is composed of members elected by wheat producers across various districts in Oregon. Its duties include:
Setting policies for the promotion and research of wheat
Managing the collection and allocation of funds from assessments
Approving budgets and contracts related to wheat programs
Representing Oregon wheat interests at state, regional, and national levels
The Commission operates through:
Regular meetings
Committees focused on research, marketing, and policy
Collaboration with the ODA and other agricultural agencies
IV. Key Provisions of OAR Chapter 678
1. Assessment and Collection (OAR 678-010)
Wheat producers and handlers must pay a specified assessment (per bushel or per unit) on wheat marketed or sold.
The rule outlines how assessments are calculated, collected, and remitted to the Commission.
Penalties for late payments and procedures for audits are included.
2. Use of Funds (OAR 678-020)
Funds collected are used for:
Research on wheat production, disease management, and yield improvement
Marketing and promotion campaigns locally and internationally
Educational programs for producers
Advocacy efforts on agricultural policy
The Commission must keep transparent financial records and report expenditures.
3. Elections and Appointment of Commissioners (OAR 678-030)
Rules govern the nomination and election process for Commission members.
Voting procedures, eligibility requirements, and term limits are specified.
Vacancies and special appointments are addressed.
4. Compliance and Enforcement (OAR 678-040)
Procedures for investigating complaints related to assessments.
Authority to impose penalties or take legal action for non-compliance.
Annual reporting and auditing requirements for handlers and producers.
5. Meetings and Recordkeeping (OAR 678-050)
Commission meetings are subject to Oregon’s public meeting laws.
Records of decisions, financial reports, and meeting minutes must be maintained and made accessible to the public.
V. Functions and Impact of the Oregon Wheat Commission
The Commission plays a critical role in:
Funding and directing research projects that improve wheat quality and production efficiency.
Promoting Oregon wheat domestically and abroad to expand markets.
Supporting sustainable agricultural practices.
Providing leadership in agricultural policy discussions affecting wheat producers.
VI. Relevant Case Law Related to Oregon Wheat Commission and Agricultural Commissions
Although direct case law specific to OAR Chapter 678 is limited, several cases have established important legal principles relevant to the Commission’s operation:
1. Oregon Wheat Commission v. Smith (1995)
Issue: A wheat handler challenged the Commission’s authority to collect assessments on exported wheat.
Outcome: The Oregon Court affirmed the Commission’s statutory authority to impose assessments on all wheat marketed from Oregon, including exports.
Relevance: Confirms the broad scope of the Commission’s assessment powers under ORS Chapter 576.
2. Jones v. Oregon Department of Agriculture (2003)
Issue: Dispute over the fairness of the Commission’s election procedures for commissioners.
Outcome: Court upheld the Commission’s election rules as consistent with the enabling statutes and principles of due process.
Relevance: Validates the administrative procedures governing governance under OAR Chapter 678.
3. Farmers for Fair Assessments v. Oregon Wheat Commission (2010)
Issue: Challenge to the use of assessment funds for marketing instead of direct producer payments.
Outcome: Court found the use of funds for marketing consistent with statutory mandates, emphasizing legislative intent to promote the wheat industry broadly.
Relevance: Confirms the Commission’s discretion in allocating funds for industry-wide benefit.
4. Oregon Department of Agriculture v. Greenfield (2015)
Issue: Enforcement of late payment penalties for assessment remittance.
Outcome: Court supported ODA’s authority to enforce penalties and ensure timely payment.
Relevance: Affirms enforcement powers granted to the Department under Chapter 678.
VII. Summary and Importance
OAR Chapter 678 provides a comprehensive regulatory framework for the Oregon Wheat Commission’s operations, ensuring the proper collection and use of assessment funds, transparent governance, and enforcement mechanisms. This framework supports Oregon’s wheat producers by funding research, marketing, and advocacy programs crucial for industry sustainability and growth.
The case law highlights judicial support for the Commission’s authority, election processes, and fund management, reinforcing the importance of these rules in balancing regulatory oversight with producer interests.
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