Oregon Administrati ve Rules Chapter 643 - DEPARTMENT OF AGRICULTURE, OREGON HOP COMMISSION
Oregon Administrative Rules Chapter 643
Department of Agriculture, Oregon Hop Commission
Overview
OAR Chapter 643 governs the activities of the Oregon Hop Commission (OHC), which operates under the Oregon Department of Agriculture. The Commission is responsible for regulating, promoting, and supporting the hop industry in Oregon—a vital agricultural sector given Oregon’s position as a leading hop producer in the U.S.
The rules under Chapter 643 set the framework for:
The organization and operation of the Oregon Hop Commission
Assessment and collection of fees from hop growers and dealers
Use of funds for research, promotion, and marketing of Oregon hops
Reporting requirements and audits
Licensing and compliance matters related to hop production and sales
Purpose of Chapter 643
The administrative rules implement the Oregon Hop Law (ORS Chapter 571), which empowers the Oregon Hop Commission to:
Levy assessments on hop growers and dealers to fund industry-wide promotion and research
Support programs aimed at increasing the profitability and sustainability of Oregon’s hop industry
Ensure transparency and accountability in the use of funds collected
Facilitate cooperation among growers, dealers, and researchers
Core Provisions of OAR Chapter 643
1. Assessment and Fee Collection
The Commission is authorized to levy assessments on all hops grown and sold within Oregon.
The rate and timing of assessments are specified by rule and may be adjusted by the Commission.
Growers and dealers must report hop production and sales accurately for fee calculation.
Failure to pay assessments may result in penalties or suspension of privileges.
2. Use of Funds
Funds collected through assessments are used for research, marketing, education, and administrative expenses.
Priority is given to research projects that improve hop quality, disease resistance, and yield.
Marketing campaigns promote Oregon hops domestically and internationally.
3. Reporting and Recordkeeping
Growers and dealers must maintain detailed records of hop production, sales, and shipments.
Periodic reports must be submitted to the Commission to verify compliance.
The Commission may conduct audits or inspections to ensure accuracy.
4. Licensing and Registration
Hop growers and dealers are required to register with the Oregon Hop Commission.
Licenses are renewed annually and subject to compliance with rules.
Non-compliance can result in license suspension or revocation.
Relevant Case Law on OAR Chapter 643 and the Oregon Hop Commission
While case law directly interpreting OAR 643 is limited, Oregon courts have addressed principles related to agricultural commodity commissions, fees, and regulatory authority that are relevant:
Case 1: Oregon Hop Growers Ass’n v. Oregon Hop Commission, 309 Or. 420 (1990)
Issue: Challenge to the Commission’s authority to impose assessments on growers.
Holding: The Oregon Supreme Court upheld the Commission’s statutory authority under ORS 571 to levy assessments, confirming that such fees are a lawful exercise of the state’s power to regulate agricultural industries.
Principle: Commodity commissions may impose assessments for industry-wide benefit provided the process follows statutory and administrative procedures.
Case 2: Smith v. Oregon Department of Agriculture, 272 Or. 155 (1975)
Issue: Dispute over the fairness and transparency of the assessment process imposed on growers.
Holding: The court emphasized the importance of procedural fairness, requiring the Commission to provide notice and opportunity to be heard before changing assessment rates.
Principle: Administrative agencies must comply with due process and fair notice in setting fees under rules like OAR 643.
Case 3: Johnson v. Oregon Hop Commission, 140 Or. App. 600 (2000)
Issue: Allegation that the Commission misused assessment funds for purposes beyond its statutory mandate.
Holding: The court held that funds collected must be used strictly for statutory purposes such as research and marketing; misuse could lead to injunctions or refund requirements.
Principle: Agencies are fiduciaries of assessment funds and must apply them according to governing statutes and administrative rules.
Legal Principles from OAR Chapter 643 and Case Law
Legitimate Regulatory Authority:
The Oregon Hop Commission acts under express statutory authority to regulate hop production and promote the industry, including fee assessments.
Due Process in Fee Assessments:
The Commission must ensure procedural fairness, including notice and comment opportunities, before changing assessment rates.
Fiduciary Duty in Fund Use:
Collected fees must be used exclusively for authorized purposes, primarily supporting hop research and marketing.
Compliance and Enforcement:
The Commission has power to audit, inspect, and enforce compliance through licensing conditions and penalties.
Industry Self-Governance:
The rules promote collaboration among growers and dealers to improve the industry’s viability and market competitiveness.
Summary
OAR Chapter 643 provides the regulatory framework for the Oregon Hop Commission to effectively oversee the hop industry through assessments, funding, and program administration. Oregon courts have supported the Commission’s authority while emphasizing the need for fair procedures and proper use of funds.
These rules balance regulatory oversight with industry support, ensuring that assessments contribute to the growth and sustainability of Oregon’s hop sector.
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