Bill Text: OR SB788 | 2011 | Regular Session | Introduced
Bill Title: Relating to accredited seed associations.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB788 Detail]
Download: Oregon-2011-SB788-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3194
Senate Bill 788
Sponsored by Senator ATKINSON
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Allows qualifying association to obtain accreditation as
bargaining association for purpose of negotiating price to be
paid by seed dealer of perennial ryegrass seed, annual ryegrass
seed or tall fescue seed produced by association members or sold
by association.
Requires that seed dealer seeking to buy seed from accredited
association or members engage in good faith price negotiation
with association. Makes violation unfair trade practice.
A BILL FOR AN ACT
Relating to accredited seed associations; creating new
provisions; and amending ORS 62.848 and 646.535.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) A seed association that qualifies under the
Capper-Volstead Act (7 U.S.C. 291, 292) and has a membership
composed of perennial ryegrass seed, annual ryegrass seed or tall
fescue seed producers may file a request with the Director of
Agriculture to be accredited as a bargaining association for the
purpose of negotiating with seed dealers the price to be paid for
perennial ryegrass seed, annual ryegrass seed or tall fescue seed
sold by the association or by members of the association. The
request must include:
(a) The names and addresses of the producers that are members
of the association;
(b) The geographical area represented by association members;
(c) The types and quantities of seed produced by members and
the types and quantities of seed produced by nonmembers sold by
the association;
(d) Information identifying each dealer purchasing perennial
ryegrass seed, annual ryegrass seed or tall fescue seed from a
member of the association during the two years preceding the
request date; and
(e) Any other information required by the director.
(2) The director may charge a processing fee for a request
filed under this section. Upon receiving a request under this
section and any required processing fee, the director shall
determine whether to accredit the association as a bargaining
association. If the director determines that the association
meets the qualifications described in this section and that the
quantities of seed produced by members of the association or sold
by the association are sufficient to allow the association to
negotiate effectively with seed dealers, the director shall grant
the request and accredit the association as a bargaining
association. If the director denies the request, the
determination by the director is subject to ORS chapter 183.
(3) The director may adopt rules establishing the term of the
accreditation and establishing the terms for renewal of an
accreditation. The director may suspend, revoke or refuse to
renew an accreditation if the director determines that the
association no longer meets the qualifications described in this
section or that the quantities of seed produced by members of the
association or sold by the association are no longer sufficient
to allow the association to negotiate effectively with seed
dealers. + }
SECTION 2. ORS 62.848 is amended to read:
62.848. (1) As used in this section:
(a) 'Parties' or 'party' means seed producers, seed
associations, seed cooperatives or seed dealers that participate
in a state regulatory program described in subsection (2) of this
section.
(b) 'Regulatory program' means a state regulatory program
described in subsection (2) of this section that is actively
supervised by the Director of Agriculture and that authorizes
parties to engage in certain collective bargaining and
negotiations to establish the price of perennial ryegrass seed to
be produced and sold to perennial ryegrass seed dealers in the
future, annual ryegrass seed to be produced and sold to annual
ryegrass seed dealers in the future or tall fescue seed to be
produced and sold to tall fescue seed dealers in the future.
(2)(a) It is the intent of this section and ORS 646.535 (2) and
646.740 (10) to displace competition with regulatory programs in
the perennial ryegrass seed, annual ryegrass seed and tall fescue
seed industries to a limited degree. The regulatory programs are
intended to grant immunity from federal and state antitrust laws
to perennial ryegrass seed, annual ryegrass seed and tall fescue
seed producers and perennial ryegrass seed, annual ryegrass seed
and tall fescue seed dealers for the limited purpose of allowing
the producers and the dealers to bargain collectively and to
arrive at a negotiated price for the sale of seed by the
producers to the dealers. The activities of any party that comply
with the provisions of this section may not be considered to be
in restraint of trade, a conspiracy or combination or any other
unlawful activity in violation of any provision of ORS 646.705 to
646.826 or federal antitrust laws.
(b) A seed cooperative or seed association for perennial
ryegrass seed, annual ryegrass seed or tall fescue seed may
negotiate with one or more dealers, as defined in ORS 646.515, of
perennial ryegrass seed, annual ryegrass seed or tall fescue seed
to establish the price at which members of the cooperative or
association will sell perennial ryegrass seed, annual ryegrass
seed or tall fescue seed to be produced by its members or under
the control of its members. The seed dealers may negotiate the
price of the seed through a committee that sets forth the views
of the dealers and votes on any issues being negotiated as
authorized by this section, including the price of the seed.
(c) The Director of Agriculture is authorized to actively
supervise the conduct of perennial ryegrass seed, annual ryegrass
seed and tall fescue seed agricultural cooperatives organized
under this chapter, representative committees of perennial
ryegrass seed, annual ryegrass seed or tall fescue seed dealers
and any perennial ryegrass seed, annual ryegrass seed or tall
fescue seed associations in establishing the price of perennial
ryegrass seed, annual ryegrass seed or tall fescue seed to be
produced and sold to seed dealers at a future date. The director
is authorized to supervise the negotiations between the parties,
review the prices established by the negotiations and approve the
prices proposed by the parties before the prices take effect. The
director must approve the proposed prices and any adjustments to
previously approved prices before the prices may be implemented.
(d) The director may compel the parties to take whatever action
the director considers necessary to:
(A) Ensure that the parties are engaging in conduct that is
authorized under this section;
(B) Ensure that the policies of this state are being fulfilled
under the regulatory programs; { - and - }
{ + (C) Ensure that seed dealers seeking to buy seed from a
seed association accredited as a bargaining association under
section 1 of this 2011 Act or from members of the association
engage in good faith price negotiations with the association;
and + }
{ - (C) - } { + (D) + } Enjoin conduct by any of the
parties that is not authorized by the director or conduct that
the director finds does not advance the interests of this state
in carrying out the regulatory programs.
(e) The Director of Agriculture may adopt rules to carry out
the director's authority under this section.
(f) The director may designate persons as the director deems
necessary to carry out the responsibility of actively supervising
the conduct of the parties, including serving as intermediaries
between prospective parties. Persons designated by the director
must be employees of the State Department of Agriculture.
(g) The director by rule shall set and collect fees from the
parties who are participants in regulatory programs. The fees
shall be deposited in the Department of Agriculture Account
established under ORS 561.150.
(h) The director shall supervise the labeling of perennial
ryegrass seeds, annual ryegrass seeds and tall fescue seeds to
ensure compliance with ORS 633.520, 633.531 and 633.541.
SECTION 3. ORS 646.535 is amended to read:
646.535. (1) A dealer may not knowingly engage in the following
unfair trade practices:
(a) Interfere with, restrain, coerce or boycott a producer in
the exercise of the rights guaranteed pursuant to ORS 646.525;
(b) Discriminate against a producer with respect to price or
other terms of purchase of raw agricultural commodities or Oregon
seafood commodities, by reason of the producer's membership in or
contract with cooperative bargaining associations; or
(c) Pay or loan money, or give any other thing of value to a
producer as an inducement or reward for refusing to or ceasing to
belong to a cooperative bargaining association.
(2) A blackberry dealer, perennial ryegrass seed, annual
ryegrass seed or tall fescue seed dealer or Oregon seafood
commodity dealer who participates in negotiating committee
activities described in ORS 62.847, 62.848 or 62.849 does not
violate subsection (1) of this section.
{ + (3) A perennial ryegrass seed, annual ryegrass seed or
tall fescue seed dealer that seeks to buy seed from a seed
association accredited as a bargaining association under section
1 of this 2011 Act, or from members of the association, may not
engage in the unfair trade practice of refusing to engage in good
faith price negotiation with the association. + }
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