Chapter 571 — Nursery Stock; Licensed Agricultural Crops

2023 EDITION

NURSERY STOCK; LICENSED AGRICULTURAL CROPS

AGRICULTURE

NURSERY STOCK GROWERS, DEALERS AND AGENTS

571.005 Definitions for ORS 571.005 to 571.230

571.015 Policy; department to maintain nursery service; duties

571.025 State Nursery Research and Regulatory Committee

571.038 Plant Pest and Disease Emergency Response Fund

571.045 Exemption from licensing requirements

571.055 License required to grow or deal in nursery stock; false representations or statements regarding licenses

571.057 License application; contents; fee; assessments

571.059 License fee surcharge

571.063 Temporary nursery sale license; application; fee; rules; conditions

571.075 Renewal of license; rules; forfeiture

571.095 Form of license; display required

571.105 Agent’s license

571.115 License not transferable; moving place of business

571.125 Suspension, revocation or refusal of license

571.135 Shipping permits, shipping invoices and bills of lading; rules; retention; exceptions

571.145 Inspection of licensed and unlicensed nurseries; additional inspections and special services; fees

571.147 Department audit of books and records of licensees; suspension of license for failure to submit to audit

571.160 General prohibition

571.170 Substitution or transportation of uninspected nursery stock prohibited

571.180 Misrepresentation of nursery stock by grower, dealer or agent prohibited; tag or label required on fruit trees

571.190 Knowingly selling, advertising or displaying damaged, misrepresented or mislabeled nursery stock prohibited

571.200 Knowingly offering to sell, moving or storing infected or infested nursery stock prohibited

571.210 Hold order on defective nursery stock; condemnation

571.220 Imported nursery stock to bear certificate of origin; contents

571.230 Disposition and use of moneys received

571.250 Interagency agreement to ensure compliance

571.252 Green communities nurseries

INDUSTRIAL HEMP GROWERS, HANDLERS AND PROCESSORS

571.260 Short title

571.263 Oregon Hemp State Program; rules

571.266 Exclusion from ORS 571.260 to 571.348

571.269 Definitions for ORS 571.260 to 571.348; rules

571.272 Regulation by department; commodities

571.275 Commission powers regarding industrial hemp; notice

571.278 Industrial Hemp Fund

571.281 Grower and handler license; records; inspection; nonconforming crop; fees; rules

571.285 Revocation or refusal of licensure; rules

571.287 Requirement to conduct criminal records check on applicant for grower license

571.289 Ineligibility for license; grounds for denial, revocation or refusal of license; exception

571.290 Industrial hemp propagation

571.291 Crop location

571.294 Charges for sampling or testing; fee

571.306 Transport, receipt of industrial hemp, certain industrial hemp commodities or products

571.309 Industrial hemp product concentration, serving standards; rules

571.312 Transfer of industrial hemp commodities and products intended for human consumption; rules

571.316 Required reporting to department; rules

571.319 Destruction, remediation of specified industrial hemp crop; rules

571.322 Planting of industrial hemp crop, commitment of violation as grounds for refusal to issue license; corrective action plan; rules

571.325 Agricultural hemp seed labeling and certification; rules

571.327 Hemp seed sales; packaging; rules

571.330 Laboratory testing; limitation on sales, transfers; rules

571.333 Industrial hemp crop concentration standards; test results

571.336 Delivery of industrial hemp to marijuana processor; processing and delivery of hemp marijuana supplements; fee; appropriation

571.337 Processor, retailer and wholesaler transaction involving industrial hemp commodity or product; rules

571.339 Limitations on industrial hemp transaction involving consumer; testing requirements; exception

571.345 Remediation for unintentional violation; rules

571.348 Civil penalty; appropriation

OREGON HEMP COMMISSION

571.400 Definitions for ORS 571.400 to 571.501

571.402 Declarations; purposes of ORS 571.400 to 571.501

571.404 Duties of State Department of Agriculture; rules

571.406 Temporary members of Oregon Hemp Commission; terms; rules

571.408 Ex officio members of Oregon Hemp Commission

571.410 Required declaration of vacancy of producer, processor office

571.412 Required declaration of vacancy of public member office

571.414 Authority to remove member of Oregon Hemp Commission

571.417 Payment for member of Oregon Hemp Commission; expenses; rules

571.420 Meetings

571.423 Powers of Oregon Hemp Commission; rules

571.426 Authority to contract; limitations on contractors; required review of contracts; rules

571.429 Oregon Hemp Commission authority, duties relating to moneys

571.432 Administrative support for Oregon Hemp Commission from Oregon Department of Administrative Services; compensation for services; accounting system

571.435 Provision and receipt of services, facilities and materials to, from other state agencies

571.438 Exemption from certain financial administration laws

571.441 Commission employees not subject to state personnel compensation plans; commission not subject to office space regulation; fees for administrative services; rules

571.444 Intellectual property; rules

571.447 Levy and collection of assessment; exemption; limitation; application for refund; rules

571.450 Exemptions from assessments; rules

571.453 Assessment collection requirements

571.456 Reporting to Oregon Hemp Commission of sales, transfers of hemp by producer; payment of assessment

571.459 Requirement to maintain records; Oregon Hemp Commission authority to inspect records, issue subpoenas

571.462 Penalty for delayed payment of assessment

571.465 Penalty for failure to pay assessment; civil action

571.468 Dispute regarding amount of assessment; rules

571.471 Financial activity of Oregon Hemp Commission

571.474 Fidelity bond; conditions on bond; payment of cost of bond

571.477 Cancellation of uncollectible assessment

571.480 Maintenance of books, records and accounts

571.483 Oregon Hemp Commission budget; meeting requirement; annual financial statement

571.486 Requirement to comply with ORS 571.483 in order to make, incur expenditure

571.489 Limitation on amount, purpose of expenditure

571.492 Unforeseen expenditure; fund transfer

571.495 Distribution of moneys upon abolishment of Oregon Hemp Commission

571.498 Sale of hemp considered sale in commercial channels

571.501 Penalty for violation of ORS 571.400 to 571.501

CHRISTMAS TREE GROWERS

571.505 Definitions for ORS 571.510 to 571.580

571.510 Policy; department to maintain Christmas tree service; duties

571.515 State Christmas Tree Advisory Committee

571.520 Exemptions from licensing requirements

571.525 License required to operate as grower

571.530 License application; contents; license fee

571.535 Renewal of license; rules

571.540 Form of license; display required

571.545 License not transferable; notice of change of business organization; additional assessment for trees not subject to fee

571.550 Suspension, revocation or refusal of license

571.555 Issuance of shipping permit numbers

571.560 Inspections for pest, disease and weed control; additional inspections for special certificates

571.565 Department to determine accuracy of acreage reporting for fee calculations

571.570 Substitution or transportation of uninspected Christmas tree stock

571.575 Knowingly offering to sell infected or infested Christmas tree stock

571.580 Disposition and use of moneys received

WESTERN JUNIPER HARVESTING AND MANUFACTURING

571.600 Definitions for ORS 571.605 to 571.620

571.605 Economic development assistance

571.610 Technical business assistance

571.615 Workforce training assistance

571.620 Identification and mapping of marketable stands

571.625 Western Juniper Industry Fund

GINSENG GROWERS AND DEALERS

571.650 Definitions for ORS 571.650 to 571.660

571.655 License required; prohibitions

571.660 Rules; fees

571.665 Revocation, suspension or denial of or refusal to renew license; civil penalty; rules

571.670 Disposition of fee moneys

PENALTIES

571.991 Penalties for ORS 571.005 to 571.230

571.993 Penalty for violation of ORS 571.655

571.995 Penalties for ORS 571.525, 571.570 and 571.575

571.997 Civil penalties for ORS 571.055 and 571.525

NURSERY STOCK GROWERS, DEALERS AND AGENTS

571.005 Definitions for ORS 571.005 to 571.230. Unless the context requires otherwise, as used in ORS 571.005 to 571.230:

(1) “Agent” means any person only soliciting orders in this state for the purchase or sale of nursery stock for any principal who is not licensed under ORS 571.005 to 571.230 and 571.991.

(2) “Dealer”:

(a) Means any person who deals in, sells, handles, consigns or accepts on consignment, imports, stores, displays or advertises nursery stock which the person has not grown.

(b) Does not mean a person whose business is located out of state and who imports and sells such nursery stock not grown in Oregon into this state and who only solicits such nursery stock sales through salesmen or representatives or by mail or advertisement. Such person to be exempt as a dealer must not own, lease, control or maintain buildings, warehouses or any location or place in Oregon in which or through which such nursery stock is stored, sold, offered for sale or held for sale or delivered therefrom. The nursery stock must be shipped direct from the out-of-state location or place of business to the grower, wholesaler, retailer or ultimate consumer or user in Oregon.

(3) “Department” means the State Department of Agriculture.

(4) “Grower” means any person who grows nursery stock.

(5) “Nursery stock” includes all botanically classified plants or any part thereof, such as floral stock, herbaceous plants, bulbs, buds, corms, culms, roots, scions, grafts, cuttings, fruit pits, seeds of fruits, forest and ornamental trees and shrubs, berry plants, and all trees, shrubs and vines and plants collected in the wild that are grown or kept for propagation or sale. “Nursery stock” does not include:

(a) Field and forage crops.

(b) The seeds of grasses, cereal grains, vegetable crops and flowers.

(d) Any vegetable or fruit used for food or feed.

(e) Cut flowers, unless stems or other portions thereof are intended for propagation.

(6) “Person” includes but is not limited to each branch store or place of business in which or at which the business of the dealer or grower is conducted and each member of a cooperative association.

(7) “Sell” or “sale” means to offer, expose or hold for sale, have for the purpose of sale, or to solicit orders for sale, or to deliver, distribute, exchange, furnish or supply. [1963 c.461 §1; 1977 c.638 §1]

571.010 [Repealed by 1963 c.461 §34]

571.015 Policy; department to maintain nursery service; duties. (1) The Legislative Assembly finds and declares that the propagation and raising of nursery stock is an agricultural pursuit that should be regulated and assisted by the State Department of Agriculture. A nursery service shall be maintained within the department for the purpose of carrying out and enforcing the provisions of ORS 564.040, 564.991, 571.005 to 571.230 and 571.991.

(2) The department may:

(a) Inspect the nursery stock of growers, dealers and other persons and places of business provided for under ORS 564.040, 564.991, 571.005 to 571.230 and 571.991.

(b) Establish certification standards, issue certificates and permits and check the license and licensing of persons affected by ORS 564.040, 564.991, 571.005 to 571.230 and 571.991. In establishing certification standards under this paragraph, the department shall give consideration to any certification standards adopted by the federal government, another state or a national association for nurseries.

(c) Establish an expedited permitting process for persons affected by ORS 564.040, 564.991, 571.005 to 571.230 and 571.991 that participate in a department certification program and meet department certification standards.

(d) Investigate violations of ORS 564.040, 564.991, 571.005 to 571.230 and 571.991.

(e) Disseminate information among growers relative to treatment of nursery stock for both prevention and elimination of attacks by plant pests and diseases.

(f) Carry out any other duties or responsibilities that are of service to the nursery industry or that may be necessary for the protection of the nursery industry. [1953 c.461 §4; 1983 c.730 §4; 2015 c.533 §1]

571.020 [Repealed by 1963 c.461 §34]

571.025 State Nursery Research and Regulatory Committee. (1) In order that there may be the closest contact between the State Department of Agriculture and the problems of the nursery industry, there hereby is created a State Nursery Research and Regulatory Committee which shall consist of seven members appointed by the Director of Agriculture. The director, as far as practicable, shall make appointments so that all segments of the nursery industry are represented on the committee.

(2) The term of each member shall be for three years, beginning on July 1 of the year of appointment. Vacancies in office shall be filled by appointment for the unexpired term. At the first meeting after July 1 in each year, the committee shall elect a chairperson.

(3) The functions of the committee shall be to advise and counsel with the department in the administration of ORS 564.040, 564.991, 571.005 to 571.230 and 571.991 and review the nursery inspection program.

(4) The committee shall meet at the call of the chairperson or the director. A majority of the members present at any meeting shall constitute a quorum, and a majority vote of the quorum at any meeting shall constitute an official act of the committee. [1963 c.461 §3; 1967 c.208 §3; 1979 c.309 §1; 1993 c.683 §1]

571.030 [Repealed by 1963 c.461 §34]

571.035 [1963 c.461 §2; repealed by 2009 c.98 §31]

571.038 Plant Pest and Disease Emergency Response Fund. (1) The Plant Pest and Disease Emergency Response Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Plant Pest and Disease Emergency Response Fund shall be credited to the fund.

(2) The fund shall consist of all moneys deposited to the fund under ORS 571.059. Moneys deposited to the fund are continuously appropriated to the State Department of Agriculture for use as provided in subsection (3) of this section. Expenditures from the fund are not subject to state expenditure limitations. The fund is not subject to allotment of moneys under ORS 291.234 to 291.260.

(3) The department, after consultation with the State Nursery Research and Regulatory Committee, may use fund moneys for responding to pest and disease emergencies. The department may use fund moneys only to the extent necessary to protect the industries represented by persons licensed under ORS 571.057. [2005 c.540 §1]

Note: 571.038 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 571 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

571.040 [Repealed by 1963 c.461 §34]

571.045 Exemption from licensing requirements. ORS 571.055 (1) and 571.057 do not apply to:

(1) Any person whose business consists only of retail sales to the ultimate consumer and the total of such sales of nursery stock does not exceed $250 during a fiscal year. Except as provided in subsection (2) of this section, the provisions of ORS 564.040, 564.991, 571.005 to 571.230 and 571.991 apply at any time the sales of nursery stock exceed $250 during a fiscal year.

(2) A person licensed as a landscape contracting business under ORS 671.560 and 671.565 who does not grow plants, does not store plants except as provided by the State Department of Agriculture by rule, and acquires all plants from a nursery licensed under this chapter. [1963 c.461 §15; 1971 c.756 §1; 1975 c.110 §1; 1977 c.638 §2; 1999 c.535 §1; 2007 c.541 §6]

571.050 [Repealed by 1963 c.461 §34]

571.055 License required to grow or deal in nursery stock; false representations or statements regarding licenses. (1) No person, without first obtaining a license from the State Department of Agriculture, shall:

(a) Operate as a grower, dealer or agent.

(b) Advertise or display nursery stock for sale on any stand, market stall, store or other place of business.

(c) Advertise nursery stock for sale by the use of signboards, placards, public communications media, newspapers, business letterhead stationery or other circulating medium.

(d) Transport, move, store or warehouse nursery stock grown or held for sale. However, this paragraph does not apply to common carriers.

(2) No person shall:

(a) Falsely represent that the person is a licensed grower, dealer or agent.

(b) Willfully make a false statement when making an application for a license. [1963 c.461 §§5,9]

571.057 License application; contents; fee; assessments. (1) Each person required to be licensed by ORS 571.055 shall apply for a license, or for renewal of a license, on a form furnished by the State Department of Agriculture, that contains:

(a) The name and address of the applicant, the number of locations to be operated by the applicant and the addresses of those locations, and the assumed business name of the applicant;

(b) If other than an individual, a statement whether the applicant is a partnership, corporation or other organization;

(c) The gross dollar volume of sales or purchases of nursery stock by the applicant within Oregon during the prior calendar year or, if the applicant maintains sales records on a fiscal basis, the prior fiscal year; and

(d) The type of business to be operated and, if applicant is an agent, the principals the applicant represents.

(2) Each application for a license must be accompanied by a license fee as provided for by this section and any amounts required by ORS 571.075 (3). An application is not a public record but is subject to audit and review by the department. An applicant for an original license or for a renewal license, without a full calendar year of prior nursery stock sales or purchase experience upon which to base the fees, shall base the fees on an estimated annual gross dollar volume of sales or purchases of nursery stock by the applicant. Notwithstanding the provisions of ORS 571.075, upon application by the person for a renewal of license for a subsequent year, the fees for the previous license year shall be adjusted to reflect the actual annual gross dollar volume of sales or purchases of nursery stock by the applicant. Any additional fees found to be due must be paid to the department at the time of application for renewal of license. The department shall refund any overpayment found to be due the applicant.

(3)(a) The department shall establish the license fees for growers and dealers after consulting with the State Nursery Research and Regulatory Committee and after public hearing in accordance with ORS chapter 183. The department shall establish the fees on the basis of annual gross dollar volume of sales or purchases of nursery stock within Oregon for the calendar year immediately preceding the license period.

(b) The license fees may not be less than $65 or more than $40,000. The millage rate may not be less than one-tenth mill or more than 10 mills. The department shall establish the fees in an amount sufficient to allow the department to administer and enforce the provisions of ORS 564.040, 564.991, 571.005 to 571.230 and 571.991.

(c) In addition to and at the time of payment of the annual license fee, growers and dealers shall pay assessments for the expenses of carrying out the provisions of ORS 571.230 (2) and (3). Dealers shall pay 0.0002 times the gross dollar purchases in the previous license year. Growers shall pay 0.0002 times the gross dollar sales in the previous license year. The assessment may not be less than $10.

(4) For florists and landscape contracting businesses, dealer and agent fees must be computed on the basis of gross purchases of plants. For greenhouse operators and growers, including persons collecting native plants, fees must be computed on the basis of gross sales of plants or sales value of plants produced in Oregon.

(5) Each grower or dealer is entitled to one sales location under the license of the grower or dealer. Each additional sales location, yard, branch store, stall or peddling vehicle maintained by the grower or dealer requires the payment of the full license fee for each of the additional sales outlets. A grower who is also a dealer shall be licensed only as a grower. [1971 c.756 §6; 1977 c.638 §3; 1985 c.659 §1; 1993 c.683 §3; 2007 c.71 §178; 2007 c.541 §7; 2015 c.533 §2]

571.059 License fee surcharge. (1) As used in this section, “dealer” and “grower” have the meanings given those terms in ORS 571.005.

(2) The State Department of Agriculture shall make a yearly determination of the additional amount, if any, required to achieve a principal balance of $250,000 in the Plant Pest and Disease Emergency Response Fund. If the department determines that an additional amount is required to achieve a principal balance of $250,000, the department shall determine an assessment rate based on the additional amount required to achieve the $250,000 fund balance and the total in the previous license year of gross dollar purchases by dealers, gross dollar sales by growers and sales value of plants produced in Oregon by licensees under ORS 571.057 other than dealers or growers.

(3) The department may impose a surcharge on license fees established pursuant to ORS 571.057. The surcharge for a licensee shall be calculated based on the assessment rate determined under subsection (2) of this section and the purchase, sales or sales value volume that is the basis for the license fee assessed to the licensee under ORS 571.057. Surcharges imposed under this subsection shall be deposited to the fund.

(4) The department shall apply for any federal funding available and may seek gifts, grants and donations for the purpose of increasing or replenishing the fund balance or avoiding expenditures from the fund. [2005 c.540 §2]

Note: 571.059 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 571 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

571.060 [Repealed by 1963 c.461 §34]

571.063 Temporary nursery sale license; application; fee; rules; conditions. (1) Upon receipt of a fee established by the State Department of Agriculture, the department may issue a temporary nursery sale license for the holding of a nursery stock sale conducted by, or for the benefit of, a duly registered nonprofit organization, where such sale does not exceed seven consecutive days.

(2) Application for a temporary nursery sale license shall be made on a form furnished by the department, and shall be accompanied by the license fee. A separate application and license fee is required for each sale.

(3) The department may prescribe the conditions of such temporary nursery sales license, which conditions shall be stated in the license. Any such license may be revoked or suspended by the department for violation of any of the conditions stated therein. ORS 571.005 to 571.230 and 571.991 shall not be applicable to such temporary nursery sales except as provided in this section.

(4) The department shall establish the fee described in subsection (1) of this section by rule. The department shall establish the fee at a level sufficient to cover the costs to the department associated with issuing the temporary nursery sale license, but not more than $50. [1971 c.756 §8; 2009 c.98 §25]

571.065 [1963 c.463 §6; repealed by 1971 c.756 §9]

571.070 [Repealed by 1963 c.461 §34]

571.075 Renewal of license; rules; forfeiture. (1) The fees for the renewal of the annual licenses and the fees for inspections required by ORS 571.005 to 571.230 and 571.991 shall be paid with the application for license renewal and before July 1 of each year or before such date as may be specified by rule of the State Department of Agriculture.

(2) Failure to pay the fees when due forfeits the right to operate as a grower, dealer or agent.

(3) Any person who has been previously licensed to grow or sell nursery stock and whose right to grow or sell has been forfeited shall not be issued a renewal license except upon written application to the department accompanied by a sum of money equal to the regular license fee, as provided in ORS 571.057. [1963 c.461 §12; 1971 c.756 §2; 1977 c.638 §4; 1985 c.659 §3; 2007 c.768 §13]

571.080 [Repealed by 1963 c.461 §34]

571.085 [1963 c.461 §13; repealed by 1971 c.756 §9]

571.090 [Repealed by 1963 c.461 §34]

571.095 Form of license; display required. All licenses issued under ORS 571.005 to 571.230 and 571.991 shall:

(1) Include the date of issue.

(2) Expire on June 30, next following the date of issue, unless sooner revoked by the State Department of Agriculture.

(3) Be in the form of a certificate.

(4) Be numbered serially under the direction of the department.

(5) Be posted in a conspicuous place on the premises of the licensee and a copy at each location where the licensee is doing business, where they can be easily seen by the general public. A duplicate copy of the license shall be issued by the department for each sales location of the licensee. [1963 c.461 §10; 1971 c.756 §3]

571.100 [Repealed by 1963 c.461 §34]

571.105 Agent’s license. (1) No agent’s license shall be issued or valid unless the agent’s principal has given the State Department of Agriculture written authorization to issue the license.

(2) An agent’s license shall be automatically suspended during any period when the agent is not acting as an agent or the principal has withdrawn or canceled the authorization.

(3) If the license has not expired, an agent may revive the license by giving notice to the department that the agent is again acting as an agent. If the agent represents a principal other than the one who gave written authorization to issue the license, subsection (1) of this section applies. [1963 c.461 §8]

571.110 [Repealed by 1963 c.461 §34]

571.115 License not transferable; moving place of business. (1) 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.

(2) The license issued to a grower or dealer applies to the particular premises named in the license. However, if prior approval is obtained from the State Department of Agriculture, the place of business may be moved to other premises or location without the necessity of relicensing. [1963 c.461 §7]

571.120 [Repealed by 1963 c.461 §34]

571.125 Suspension, revocation or refusal of license. The State Department of Agriculture may, as provided in ORS chapter 183, suspend, revoke or refuse to issue or renew the license of any person when it is satisfied that:

(1) The applicant or licensee has been guilty of fraud, deception or misrepresentation in the handling or sale of nursery stock.

(2) The licensee was guilty of fraud, deception or misrepresentation in the procurement of a license.

(3) The licensee has violated any provision of ORS 564.040, 564.991, 571.005 to 571.230 and 571.991. [1963 c.461 §11]

571.130 [Repealed by 1963 c.461 §34]

571.135 Shipping permits, shipping invoices and bills of lading; rules; retention; exceptions. (1) The State Department of Agriculture may issue a shipping permit number to any licensee who requests or requires one. The shipping permit number shall be the same as the license number and so designated on the license.

(2) When authorized or required by the department, the shipping permit number shall accompany all shipments and deliveries of nursery stock.

(3) The Director of Agriculture may suspend or revoke a shipping permit issued to a nursery if the nursery has nursery stock that in whole or in part does not meet interstate shipment cleanliness standards adopted by the department by rule.

(4) A shipping invoice or bill of lading shall accompany a commercial shipment or delivery of nursery stock to be offered for sale. If a shipping invoice accompanies the shipment or delivery, the shipping invoice shall include the following:

(a) The name and address of the owner of the nursery stock.

(b) The nursery license number of the owner of the nursery stock.

(d) The specific destination to which the nursery stock is being shipped or delivered.

(e) A description or inventory of the nursery stock in sufficient detail to allow identification of the nursery stock being shipped or delivered. The description or inventory shall include, at a minimum, the numbers, sizes and varieties of plants included in the shipment or delivery.

(f) The signature of the nursery stock carrier or the carrier’s agent.

(5) The department, by rule, may develop a standard form for shipping invoices described in subsection (4) of this section and may make the form available at cost to licensees upon request.

(6) Each of the following persons shall retain a copy of the signed shipping invoice or the bill of lading for a commercial shipment or delivery of nursery stock to be offered for sale:

(a) The owner of the nursery stock.

(b) The carrier or carrier’s agent transporting the nursery stock.

(7) Subsections (4) and (6) of this section do not apply to:

(a) A commercial shipment or delivery between two points owned, rented or leased by the owner of the nursery stock; or

(b) A commercial shipment or delivery of nursery stock in the possession of a business licensed by the State Landscape Contractors Board. [1963 c.461 §16; 2005 c.390 §1; 2015 c.533 §3]

571.140 [Repealed by 1963 c.461 §34]

571.145 Inspection of licensed and unlicensed nurseries; additional inspections and special services; fees. (1) The State Department of Agriculture shall inspect each licensed nursery at least once and as often thereafter as the department considers necessary to determine and control pest, disease and noxious weed conditions.

(2) The department may make additional inspections as necessary for the issuance of phytosanitary and other certificates. Such additional inspections are in addition to normal inspections as provided by subsection (1) of this section. The department may charge for such inspections requested by nurseries in order to issue state or federal phytosanitary certificates and any other certificate that requires inspection prior to issuance of such certificates. Such charge shall not be less than $10 per requested certificate or greater than $50 per such certificate. However, for license years after June 30, 1995, the department may establish the certificate fee without regard to the limitations provided in this subsection after consulting with the State Nursery Research and Regulatory Committee and after holding public hearings in accordance with ORS chapter 183.

(3) The department may establish a schedule of fees for nursery stock inspections and special services which may be performed by the department for persons who are not required to obtain a license pursuant to ORS 571.005 to 571.230 and 571.991. The fees shall be established in such amounts as are reasonably necessary to recover all costs incurred by the department in the performance of such inspections and special services. Payment for such inspections and special services shall be made to the department at the time the inspections or special services are performed. [1963 c.461 §17; 1977 c.638 §5; 1985 c.659 §4; 1993 c.683 §6; 2009 c.98 §26]

571.147 Department audit of books and records of licensees; suspension of license for failure to submit to audit. (1) The State Department of Agriculture is authorized to audit the books and records of applicants or licensees, as it deems necessary, in order to insure compliance with ORS 571.057. Such audit may be made at the applicant’s or licensee’s place of business during normal business hours, upon three days’ notice from the department.

(2) Notwithstanding the provisions of ORS chapter 183, failure by a licensee to allow such audit shall automatically suspend the license of the licensee until the audit is performed and any additional fee and penalty found to be due is paid to the department. [1971 c.756 §7]

571.150 [Repealed by 1963 c.461 §34]

571.160 General prohibition. No person, individually or acting for another person, such as an official or employee acting for a corporation, shall violate ORS 564.040, 564.991, 571.005 to 571.230 and 571.991. [1963 c.461 §27]

571.170 Substitution or transportation of uninspected nursery stock prohibited. No person shall:

(1) Substitute other nursery stock for nursery stock covered by an inspection certificate.

(2) Transport or accept for transportation nursery stock that does not carry the official inspection tag authorized by the State Department of Agriculture. [1963 c.461 §18]

571.180 Misrepresentation of nursery stock by grower, dealer or agent prohibited; tag or label required on fruit trees. (1) No grower, dealer or agent shall:

(a) Sell nursery stock representing it to be a name, age or variety different from what the nursery stock actually is.

(b) Represent that any nursery stock is a new variety, when in fact it is a standard variety and has been given a new name.

(2) In addition to the provisions of ORS 632.450 to 632.490 and 632.900 to 632.985, all other laws relating to labeling and the provisions of subsection (1) of this section, the grower, dealer or agent shall attach to every bundle of fruit-bearing trees sold or shipped within this state a tag or label specifying the name of the variety of trees contained therein. If the bundle shall contain trees of different varieties, such label or tag shall be attached to each tree or group of trees of the same variety. The purchaser of any fruit-bearing tree or trees not true to name as specified on such tag or label, shall have a remedy at law in a civil action to recover the damages sustained. Such action may be brought at any time prior to the third bearing year. [1963 c.461 §19; 2001 c.104 §232]

571.190 Knowingly selling, advertising or displaying damaged, misrepresented or mislabeled nursery stock prohibited. No person shall knowingly offer to sell, advertise or display nursery stock:

(1) That is dead, in a dying condition, seriously broken, desiccated, frozen or damaged by freezing, or materially damaged in any way.

(2) By any methods which have the capacity and tendency or effect of deceiving any purchaser or prospective purchaser as to the quantity, size, grade, kind, species, name, age, variety, maturity, condition, vigor, hardiness, number of times transplanted, growth ability, growth characteristics, rate of growth or time required before flowering or fruiting, price, origin or place where grown, or in any other material respect.

(3) That fails to meet the grade with which it is labeled.

(4) By making other false or fraudulent representations in connection with the sale of nursery stock. [1963 c.461 §20]

571.200 Knowingly offering to sell, moving or storing infected or infested nursery stock prohibited. (1)(a) No person shall knowingly offer to sell nursery stock that is infected or infested.

(b) Unless the nursery stock is held for separation or treatment under the supervision of an officer, employee or inspector of the State Department of Agriculture, no person shall advertise, display, transport, move, store or warehouse nursery stock that is infected or infested.

(c) Any infected or infested nursery stock may be seized in accordance with the procedures provided for in ORS 561.605 to 561.630.

(2) As used in subsection (1) of this section:

(a) “Infected” means any appearance of a disease symptom or causal agent that may, in the opinion of the department, be a menace to other nursery stock or any products or properties.

(b) “Infested” means when the mature or immature form of any plant pest, including noxious weeds as defined by the department, is found in such numbers as, in the opinion of the department, to be a menace to other nursery stock or any product or properties. [1963 c.461 §§21,22; 1985 c.565 §84a]

571.210 Hold order on defective nursery stock; condemnation. (1) When the State Department of Agriculture has cause to presume that any nursery stock will not perform in a normal manner, the officials, employees or inspectors of the department may issue a hold order for a period not to exceed 10 days. No person shall sell or dispose of in any manner such nursery stock within the 10-day period without written permission from the department.

(2) If a person displays or sells nursery stock that is dead, in a dying condition, seriously broken, frozen or damaged by freezing or materially damaged in any way, any officer, employee or inspector of the department may condemn such nursery stock and order it destroyed. [1963 c.461 §23]

571.220 Imported nursery stock to bear certificate of origin; contents. Nursery stock imported into Oregon must be accompanied by a certificate from the place of origin, signed by an authorized agent or representative of the agency supervising and responsible for carrying out the nursery stock laws of such originating state or country. The certificates shall contain additional information as may be required by the State Department of Agriculture to carry out and enforce the provisions of ORS 564.040, 564.991, 571.005 to 571.230 and 571.991. [1963 c.461 §24]

571.230 Disposition and use of moneys received. (1) Except for fees paid under ORS 571.057, 571.063 and 571.145 (3), the State Department of Agriculture shall deposit all fees paid to it under ORS 571.005 to 571.230 and 571.991 in the General Fund in the State Treasury to the credit of the Department of Agriculture Account. Such fees are continuously appropriated to the department for the purpose of administering and enforcing ORS 564.040, 564.991, 571.005 to 571.230 and 571.991. The fees paid to the department under ORS 571.057, 571.063 and 571.145 (3) shall be deposited by the State Treasurer in the Department of Agriculture Service Fund, and such funds are continuously appropriated to the department for the purposes of administering and enforcing ORS 571.005 to 571.230 and 571.991.

(2) The amount of revenue generated for nursery research pursuant to ORS 571.057 (3)(c) shall be used by the department only for the purposes set forth in subsection (3) of this section. With the advice of the State Nursery Research and Regulatory Committee, the director shall identify research needs of the Oregon nursery industry and shall obtain services of researchers for the purposes set forth in subsection (3) of this section.

(3) The amounts provided for in ORS 571.057 (3)(c) shall be used in carrying on experimental and research projects and investigations directed toward the prevention and elimination of plant diseases, insect pests and the development and improvement of cultural methods that are beneficial to the nursery industry. [1963 c.461 §25; 1971 c.756 §4; 1979 c.499 §5; 1985 c.659 §2; 1993 c.683 §7]

571.240 [1963 c.461 §14; 1967 c.637 §12; repealed by 1971 c.756 §9]

571.250 Interagency agreement to ensure compliance. The State Landscape Contractors Board and the State Department of Agriculture shall enter into an interagency agreement to address how the board and the department shall ensure that licensed landscape contracting businesses comply with the provisions of this chapter. [1999 c.535 §3; 2007 c.541 §8]

571.252 Green communities nurseries. (1) As used in this section, “Oregon nursery” has the meaning given that term in ORS 197.469.

(2) The State Department of Agriculture shall certify an Oregon nursery as a green communities nursery if the nursery:

(a) Has practices in pest and disease management that satisfy standards established by the department;

(b) Materially demonstrates a history of compliance with the rules and other requirements of state and local agencies with oversight regarding workers’ compensation, building codes and occupational safety and health over a period of seven years or the life of the nursery, whichever is shorter;

(c) Materially demonstrates a history of compliance with federal and state wage and hour laws over a period of seven years or the life of the nursery, whichever is shorter; and

(d) Grows and maintains noninvasive nursery stock for the purposes of partnering with communities or public bodies on green infrastructure projects.

(3) An Oregon nursery may apply for certification under this section in the form and manner prescribed by the department. [2023 c.442 §27]

Note: 571.252 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 571 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

INDUSTRIAL HEMP GROWERS, HANDLERS AND PROCESSORS

571.260 Short title. ORS 571.260 to 571.348 shall be known and may be cited as the Oregon Hemp Act. [2018 c.116 §2; 2021 c.542 §19]

Note: 571.260 to 571.348 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 571 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

571.263 Oregon Hemp State Program; rules. The State Department of Agriculture shall administer an Oregon Hemp State Program for the production, processing and sale of hemp in this state. In carrying out the program, the department:

(1) Shall administer ORS 571.260 to 571.348.

(2)(a) Shall adopt rules to implement a state plan for the production of hemp in accordance with the Agriculture Improvement Act of 2018 (P.L. 115-334) and subsequent federal law. The rules adopted under this subsection must conform to, and not be more restrictive than, the rules related to hemp promulgated by the United States Department of Agriculture.

(b) In adopting rules under this subsection, the State Department of Agriculture shall include public input.

(c) The rules adopted under this subsection may include the adoption by reference of any federal laws, rules, regulations or guidelines, or standards, practices or requirements, related to the production of hemp.

(3) Shall adopt by rule any record keeping and reporting requirements necessary to administer the program.

(4) May purchase, possess, seize or dispose of industrial hemp products or commodities as the department deems necessary to enforce and ensure compliance with ORS 571.260 to 571.348 or department rules relating to ORS 571.260 to 571.348.

(5) May exercise any other power or perform any other function necessary to administer the program. [2018 c.116 §3; 2021 c.542 §20]

Note: See note under 571.260.

571.266 Exclusion from ORS 571.260 to 571.348. (1) ORS 571.260 to 571.348 do not apply to the production or storage of homegrown plants in the genus Cannabis within the plant family Cannabaceae at a household by one or more persons 21 years of age or older, if the total amount of homegrown plants at the household does not exceed four plants at any time.

(2) As used in this section, “homegrown” and “household” have the meanings given those terms in ORS 475C.009. [2018 c.116 §20]

Note: See note under 571.260.

571.269 Definitions for ORS 571.260 to 571.348; rules. As used in ORS 571.260 to 571.348:

(1) “Adult use cannabinoid” has the meaning given that term in ORS 475C.009.

(2) “Adult use cannabis item” has the meaning given that term in ORS 475C.009.

(3) “Agricultural hemp seed” means Cannabis seed:

(a) That is sold to or intended to be sold to licensed growers for planting; or

(b) That remains in an unprocessed or partially processed condition that is capable of germination.

(4) “Artificially derived cannabinoid” has the meaning given that term in ORS 475C.009.

(5) “Consumption” means ingestion, inhalation or topical application to the skin or hair.

(6) “Crop” means industrial hemp grown under a single license.

(7) “Grower” means a person, joint venture or cooperative that produces industrial hemp.

(8) “Handler” means a person, joint venture or cooperative that receives industrial hemp for processing into commodities, products or agricultural hemp seed and any other activities identified by the State Department of Agriculture by rule.

(9)(a) “Industrial hemp”:

(A) Means the plant species Cannabis sativa that has a tetrahydrocannabinol concentration that complies with the concentration specified by the department by rule; and

(B) Has the meaning given that term as it is further defined by the department by rule.

(b) “Industrial hemp” does not mean industrial hemp commodities or products.

(10) “Industrial hemp concentrate” means an industrial hemp product obtained by separating cannabinoids from industrial hemp by:

(a) A mechanical process;

(b) A chemical extraction process using a nonhydrocarbon-based solvent, such as water, vegetable glycerin, vegetable oils, animal fats, isopropyl alcohol or ethanol;

(c) A chemical extraction process using carbon dioxide, provided that the process does not involve the use of high heat or pressure; or

(d) Any other process identified by the department by rule.

(11) “Industrial hemp extract” means an industrial hemp product obtained by separating cannabinoids from industrial hemp by:

(a) A chemical extraction process using a hydrocarbon-based solvent, such as butane, hexane or propane;

(b) A chemical extraction process using carbon dioxide, if the process uses high heat or pressure; or

(12) “Licensee” means a grower, handler, agricultural hemp seed producer or other person licensed under ORS 571.281. [Formerly 571.300; 2021 c.542 §§21,21a]

Note: See note under 571.260.

571.272 Regulation by department; commodities. (1) Industrial hemp is an agricultural product that is subject to regulation by the State Department of Agriculture.

(2)(a) For purposes of ORS chapter 616, the department may not consider industrial hemp or industrial hemp commodities or products to be an adulterant.

(b) Paragraph (a) of this subsection does not prohibit the department from considering artificially derived cannabinoids to be adulterants. [Formerly 571.303; 2021 c.542 §22]

Note: See note under 571.260.

571.275 Commission powers regarding industrial hemp; notice. (1) The Oregon Liquor and Cannabis Commission may purchase, possess, seize or dispose of industrial hemp products or commodities located on a premises licensed under ORS 475C.065, 475C.085, 475C.093, 475C.097 or 475C.548 or other area under the control of the premises licensee as the commission deems necessary to enforce and ensure compliance with:

(a) ORS 475C.005 to 475C.525, 475C.540 to 475C.586 or 475C.600 to 475C.648 or rules adopted by the commission relating to ORS 475C.005 to 475C.525, 475C.540 to 475C.586 or 475C.600 to 475C.648; or

(b) Any provision in ORS 571.260 to 571.348 or in rules adopted by the commission or State Department of Agriculture under ORS 571.260 to 571.348 that makes a requirement, restriction or other provision of ORS 475C.005 to 475C.525, 475C.540 to 475C.586 or 475C.600 to 475C.648 applicable to industrial hemp.

(2) If the commission purchases, possesses, seizes or disposes of industrial hemp products or commodities under this section to enforce or ensure compliance with a provision of ORS 571.260 to 571.348 or rule adopted by the department under ORS 571.260 to 571.348 that makes a requirement, restriction or other provision of ORS 475C.005 to 475C.525, 475C.540 to 475C.586 or 475C.600 to 475C.648 applicable to industrial hemp, the commission shall notify the department of the commission action as soon as practicable. [2018 c.116 §14; 2021 c.351 §286]

Note: See note under 571.260.

571.278 Industrial Hemp Fund. There is established in the State Treasury, separate and distinct from the General Fund, the Industrial Hemp Fund. Interest earned by the fund shall be credited to the fund. The fund shall consist of all moneys credited to or deposited in the fund. Moneys in the fund are continuously appropriated to the State Department of Agriculture for the purposes of implementing, administering and enforcing ORS 571.260 to 571.348. [2018 c.116 §30]

Note: See note under 571.260.

571.281 Grower and handler license; records; inspection; nonconforming crop; fees; rules. (1)(a) To grow or handle industrial hemp, a person must be licensed by the State Department of Agriculture as a grower or handler.

(b) The department may identify by rule activities related to growing or handling hemp in addition to those described in ORS 571.269 and may require licensure to engage in those activities. The department may issue, renew, suspend, revoke or refuse to issue or renew a license required pursuant to this subsection.

(2)(a) Only a grower or handler licensed under this section may produce agricultural hemp seed. For a grower or handler to produce agricultural hemp seed, the grower or handler must be licensed by the department as an agricultural hemp seed producer.

(b) Notwithstanding paragraph (a) of this subsection:

(A) A grower licensed under this section that retains agricultural hemp seed for the purpose of personally propagating industrial hemp in a subsequent year is not required to be licensed by the department as an agricultural hemp seed producer; and

(B) A grower or handler licensed under this section that produces Cannabis seeds that are incapable of germination, or a handler licensed under this section that processes Cannabis seeds that are incapable of germination into commodities or products, is not required to be licensed by the department as an agricultural hemp seed producer.

(3) An applicant for a license under this section must submit to the department, in a form and manner prescribed by the department, the following information:

(a) The name and address of the applicant;

(b) The name and address of the industrial hemp operation of the applicant; and

(4) The department shall adopt rules specifying the period of time for which a license issued under this section is valid. A licensee may renew a license under this section in a form and manner prescribed by the department.

(5) A license under this section is a personal privilege and is not transferable.

(6) A grower or handler licensed under this section must keep records as required by the department by rule. Upon not less than three days’ notice, the department may subject the records to inspection or audit during normal business hours. The department may make an inspection or audit for the purpose of ensuring compliance with:

(a) A provision of ORS 571.260 to 571.348;

(b) A rule adopted under a provision of ORS 571.260 to 571.348; or

(c) An order issued by the department pursuant to a provision of ORS 571.260 to 571.348 or a rule adopted under a provision of ORS 571.260 to 571.348.

(7) In addition to any inspection conducted pursuant to ORS 561.275, the department may inspect any crop during the crop’s growth phase and take a representative composite sample for field analysis. If a crop contains an average tetrahydrocannabinol concentration exceeding the concentration specified by the department by rule, the department may detain, seize or embargo the crop as provided under ORS 561.605 to 561.620, subject to any process established under ORS 571.345.

(8)(a) The department may charge licensees the following fees in amounts reasonably calculated by the department to pay the cost of administering ORS 571.260 to 571.348:

(A) Application fees;

(B) License and license renewal fees;

(D) Fees for other services.

(b) Moneys from fees charged under this subsection shall be deposited in the Industrial Hemp Fund established under ORS 571.278.

(9) The department may adopt rules establishing public health and safety standards and industry best practices for growers and handlers licensed under this section. [Formerly 571.305; 2021 c.542 §23]

Note: See note under 571.260.

571.285 Revocation or refusal of licensure; rules. (1) Subject to the provisions of ORS chapter 183, the State Department of Agriculture may revoke a licensee’s license or refuse to issue or renew the license if a licensee violates:

(a) A provision of ORS 571.260 to 571.348;

(b) A rule adopted under a provision of ORS 571.260 to 571.348;

(c) An order issued by the department pursuant to a provision of ORS 571.260 to 571.348 or a rule adopted under a provision of ORS 571.260 to 571.348, including an order of detainment issued under ORS 571.281; or

(d) Any statutory law or department rule related to agricultural activities other than industrial hemp operations.

(2) The department may adopt rules to prohibit a licensee from reapplying for a license under ORS 571.281 for a period of time specified by rule by the department if the licensee violates:

(a) A provision of ORS 571.260 to 571.348;

(b) A rule adopted pursuant to ORS 571.260 to 571.348; or

(c) An order issued by the department pursuant to ORS 571.260 to 571.348 or a rule adopted pursuant to ORS 571.260 to 571.348. [Formerly 571.315; 2021 c.542 §24]

Note: See note under 571.260.

571.287 Requirement to conduct criminal records check on applicant for grower license. (1) The State Department of Agriculture shall conduct a criminal records check under ORS 181A.195 on an individual who submits an application for a grower license under ORS 571.281.

(2) For the purpose of requesting a state or nationwide criminal records check, the department may require fingerprints of any individual listed on an application submitted under ORS 571.260 to 571.348, including:

(a) If the applicant is a limited partnership, each partner of the limited partnership;

(b) If the applicant is a limited liability company, each member of the limited liability company;

(d) Any individual who is a partner, member, director or officer of an entity with a financial interest in the applicant; and

(e) Other key participants with the applicant, as identified by the department by rule.

(3) ORS 181A.195 (10) does not apply to the department for purposes of conducting a criminal records check under this section. [2021 c.542 §14]

Note: See note under 571.260.

571.288 [Formerly 571.318; 2021 c.542 §25; renumbered 571.290 in 2021]

571.289 Ineligibility for license; grounds for denial, revocation or refusal of license; exception. (1) Except as provided in subsection (2) of this section:

(a) If a person has been convicted of a felony related to a controlled substance under state or federal law, the person is ineligible for a license under ORS 571.281 to grow hemp issued by the State Department of Agriculture for 10 years following the date of the person’s conviction.

(b) If a licensee or an applicant, or a person related to the applicant as described in ORS 571.287 (2)(e), is convicted of a felony related to a controlled substance under state or federal law, the department may deny, revoke or refuse to renew a grower license under ORS 571.281 during the 10 years following the date of conviction.

(2) This section does not apply to a person who was registered to grow hemp with the department before October 31, 2019. [2021 c.542 §15]

Note: Section 16, chapter 542, Oregon Laws 2021, provides:

Sec. 16. Section 15 of this 2021 Act [571.289] applies to convictions entered before, on and after October 31, 2019. [2021 c.542 §16]

Note: See note under 571.260.

571.290 Industrial hemp propagation. A grower licensed under ORS 571.281 may use any propagation method, including planting seeds or starts or the use of clones or cuttings, to produce industrial hemp. [Formerly 571.288]

Note: See note under 571.260.

571.291 Crop location. A grower shall provide the State Department of Agriculture, in a time, form and manner prescribed by the department, with an accurate description and global positioning system coordinates of the property on which the grower’s crop is or will be located. [Formerly 571.321]

Note: See note under 571.260.

571.294 Charges for sampling or testing; fee. The State Department of Agriculture may charge growers and handlers licensed under ORS 571.281 fees reasonably calculated by the department to pay the cost of sampling or testing industrial hemp or industrial hemp commodities or products under ORS 571.330 and 571.333. Moneys from fees charged under this section shall be deposited in the Industrial Hemp Fund established under ORS 571.278. [2018 c.116 §10; 2021 c.542 §26]

Note: See note under 571.260.

571.300 [2009 c.897 §1; 2015 c.503 §1; 2016 c.71 §1; 2017 c.531 §1; 2018 c.116 §27; renumbered 571.269 in 2019]

571.302 [2018 c.116 §7; 2021 c.542 §27; renumbered 571.325 in 2021]

571.303 [2016 c.71 §4; renumbered 571.272 in 2019]

571.305 [2009 c.897 §2; 2015 c.503 §2; 2016 c.71 §2; 2018 c.116 §28; renumbered 571.281 in 2019]

571.306 Transport, receipt of industrial hemp, certain industrial hemp commodities or products. (1) A person licensed under ORS 571.281 may, within the boundaries of this state, transport to or receive from:

(a) A person licensed under ORS 571.281 or a laboratory licensed under ORS 475C.548 industrial hemp or an industrial hemp commodity that contains no more tetrahydrocannabinol than allowed by the State Department of Agriculture by rule if the industrial hemp or industrial hemp used in the industrial hemp commodity originated from a crop inspected under ORS 571.281 (7) that was found to not contain an average tetrahydrocannabinol concentration exceeding the concentration specified by the department by rule.

(b) A person licensed under ORS 475C.085, 475C.093 or 475C.097 industrial hemp or an industrial hemp commodity or product that contains no more tetrahydrocannabinol than allowed by the Oregon Liquor and Cannabis Commission by rule if the industrial hemp or industrial hemp used in the industrial hemp commodity or product originated from a crop inspected under ORS 571.281 (7) that was found to not contain an average tetrahydrocannabinol concentration exceeding the concentration specified by the department by rule.

(2) Industrial hemp or an industrial hemp commodity or product transported or received as described in this section may not be considered a “marijuana item.” [2021 c.542 §16a]

Note: See note under 571.260.

571.309 Industrial hemp product concentration, serving standards; rules. The Oregon Liquor and Cannabis Commission, in consultation with the State Department of Agriculture, shall adopt rules to establish:

(1) The maximum concentration of tetrahydrocannabinol permitted in a single serving of an industrial hemp product;

(2) The maximum concentration of any other cannabinoid, adult use cannabinoid or artificially derived cannabinoid that is permitted in a single serving of an industrial hemp product; and

(3) The number of servings that are permitted in a package of industrial hemp products. [2021 c.542 §17]

Note: See note under 571.260.

571.312 Transfer of industrial hemp commodities and products intended for human consumption; rules. (1) As used in this section, “industrial hemp commodities and products intended for human consumption” means industrial hemp concentrates, industrial hemp extracts and any other industrial hemp item intended for ingestion or inhalation.

(2) The State Department of Agriculture shall establish by rule requirements for tracking the transfer of industrial hemp commodities and products intended for human consumption. The tracking described in this section may include:

(a) Associating the results from tests performed under ORS 571.330 with the batch of industrial hemp on which the tests were performed; and

(b) Identifying the origin and destination of industrial hemp commodities and products intended for human consumption transferred by a person licensed under ORS 571.281.

(3) Any requirements established by the department pursuant to subsection (2) of this section may require the use of the system developed and maintained under ORS 475C.177. [2021 c.542 §18; 2021 c.542 §18d]

Note: See note under 571.260.

571.315 [2009 c.897 §3; 2015 c.1 §80; 2016 c.71 §10; renumbered 571.285 in 2019]

571.316 Required reporting to department; rules. (1) The State Department of Agriculture shall adopt rules to require that a grower licensed under ORS 571.281 accurately report to the department:

(a) That the grower does not intend to plant an industrial hemp crop at the location for which a license is issued under ORS 571.281; or

(b) Any loss of all or part of an industrial hemp crop.

(2) The rules adopted under this section must include a timeline for reporting to the department and may include other rules necessary to carry out this section. [2021 c.542 §18a; 2021 c.542 §18e]

Note: See note under 571.260.

571.318 [2016 c.71 §5; renumbered 571.288 in 2019]

571.319 Destruction, remediation of specified industrial hemp crop; rules. (1) If the industrial hemp crop of a grower licensed under ORS 571.281 is found to contain an average tetrahydrocannabinol concentration that exceeds the limit described in ORS 571.281 (7) and the State Department of Agriculture requires the grower to destroy or remediate the industrial hemp crop, the grower shall provide documentation to the department of the destruction or remediation.

(2) The department shall adopt rules to carry out this section, including rules to specify acceptable documentation for purposes of subsection (1) of this section and timelines for providing the documentation to the department. [2021 c.542 §18b; 2021 c.542 §18f]

Note: See note under 571.260.

571.321 [2016 c.71 §6; renumbered 571.291 in 2019]

571.322 Planting of industrial hemp crop, commitment of violation as grounds for refusal to issue license; corrective action plan; rules. (1)(a) Except as provided in paragraph (b) of this subsection, if a person plants an industrial hemp crop or commits a violation of ORS 571.260 to 571.348 prior to applying for a grower license under ORS 571.281, the State Department of Agriculture shall refuse to issue a license to the person.

(b) If the crop described in paragraph (a) of this subsection is removed and the department determines that the violation is resolved, the person described in paragraph (a) of this subsection may apply for a license under ORS 571.281.

(2) If a person plants an industrial hemp crop or commits a violation of ORS 571.260 to 571.348 prior to being issued a grower license under ORS 571.281, the department shall:

(a)(A) Prioritize the person’s industrial hemp crop for inspection under ORS 571.281 (7), if the person planted the industrial hemp crop as described in this subsection; and

(B) Require the person to enter into a corrective action plan with the department; or

(b) Refuse to issue a license to the person if the department determines that a corrective action plan is insufficient to address the violation.

(3) If the person described in subsection (2) of this section does not enter into a corrective action plan pursuant to subsection (2) of this section, the department may not issue a license to the person under ORS 571.281.

(4) The department may adopt rules to carry out this section, including rules to establish the corrective action plan described in subsection (2) of this section. [2021 c.542 §18c; 2021 c.542 §18g]

Note: See note under 571.260.

571.324 [2016 c.71 §7; repealed by 2018 c.116 §32]

571.325 Agricultural hemp seed labeling and certification; rules. (1) For purposes of ORS 633.511 to 633.750, agricultural hemp seed is an agricultural seed or a flower seed, as those terms are defined in ORS 633.511.

(2) The Director of Agriculture, or the director’s agent, and the Dean of the College of Agricultural Sciences of Oregon State University, or the dean’s agent, shall establish a program for the labeling and certification of agricultural hemp seed. For purposes of the program:

(a) The director and the dean shall perform their respective duties under ORS 633.511 to 633.750 with respect to agricultural hemp seed in the same manner that the director and dean perform their respective duties under ORS 633.511 to 633.750 with respect to other agricultural seed or flower seed, including but not limited to those duties related to labeling, testing and certifying seeds; and

(b) The director and the dean shall exercise their respective functions and powers under ORS 633.511 to 633.750 with respect to agricultural hemp seed in the same manner that the director and dean exercise their respective functions and powers under ORS 633.511 to 633.750 with respect to other agricultural seed or flower seed, including but not limited to inspecting and sampling seeds and making rules and regulations under ORS 633.680.

(3) Notwithstanding subsections (1) and (2) of this section, if the director in consultation with the dean determines that a specific provision of ORS 633.511 to 633.750, or a specific rule or regulation made under ORS 633.511 to 633.750, that applies to other agricultural seed or flower seed is inadequate or not suitable for the regulation of agricultural hemp seed, the director may by rule exempt agricultural hemp seed from the provision, rule or regulation and make rules providing more adequate or suitable regulation of agricultural hemp seed.

(4)(a) The director and the dean shall collaborate with growers licensed under ORS 571.281 in performing their respective duties and exercising their respective functions and powers under ORS 633.511 to 633.750 with respect to agricultural hemp seed.

(b) The director and the dean may collaborate with growers licensed under ORS 571.281 and other stakeholders to develop a heritage agricultural hemp seed for this state.

(5) The director and the dean may collaborate with entities authorized to certify seeds under the laws of other states in performing their respective duties and exercising their respective functions and powers under ORS 633.511 to 633.750 with respect to agricultural hemp seed.

(6) A grower licensed under ORS 571.281 is not required, for purposes related to growing industrial hemp, to use an agricultural hemp seed variety certified under the program described in this section.

(7) The State Department of Agriculture may establish by rule waivers to, or exemptions from, tests that would otherwise be conducted to determine a crop’s average tetrahydrocannabinol concentration for crops planted with agricultural hemp seed varieties certified pursuant to the program described in this section. [Formerly 571.302]

Note: See note under 571.260.

571.327 Hemp seed sales; packaging; rules. (1) An agricultural hemp seed producer licensed under ORS 571.281:

(a) Must sell agricultural hemp seed in a manner that complies with any standard established by the Director of Agriculture under ORS 633.511 to 633.750; and

(b) May sell agricultural hemp seed only if the agricultural hemp seed meets any packaging or labeling requirement, or any quality standard, adopted by the director under subsection (2) of this section.

(2) The director may adopt rules establishing packaging requirements, labeling requirements and quality standards for agricultural hemp seed.

(3) The State Department of Agriculture shall make available to growers licensed under ORS 571.281 information that identifies agricultural hemp seed producers licensed under ORS 571.281 from whom the growers may purchase agricultural hemp seed. [2016 c.71 §8; 2021 c.542 §28]

Note: See note under 571.260.

571.330 Laboratory testing; limitation on sales, transfers; rules. (1)(a) A laboratory licensed by the Oregon Liquor and Cannabis Commission under ORS 475C.548 and accredited by the Oregon Health Authority pursuant to ORS 475C.560 may test industrial hemp and industrial hemp commodities and products whether or not the industrial hemp or industrial hemp commodities or products were produced or processed by a licensee.

(b) An accredited independent testing laboratory that has been approved by the authority or the State Department of Agriculture may test industrial hemp and industrial hemp commodities and products whether or not the industrial hemp or industrial hemp commodities or products were produced or processed by a licensee.

(2) A person may not sell or transfer an industrial hemp commodity or product that is intended for human consumption and that was produced, processed or manufactured in this state unless the commodity or product is tested by a laboratory described in subsection (1) of this section to ensure that the commodity or product meets the requirements adopted by the Oregon Health Authority under ORS 475C.544 (1)(a) and (b) for testing marijuana items and industrial hemp-derived vapor items and ORS 475C.544 (2) for testing cannabinoid edibles.

(3) Industrial hemp commodities or products that are intended for use in an inhalant delivery system, as defined in ORS 431A.175, must meet the requirements of ORS 475C.540 to 475C.586 and 475C.600 to 475C.648 that apply to industrial hemp-derived vapor items as defined in ORS 475C.540 and 475C.600.

(4) For purposes of this section, the department shall adopt rules:

(a) Establishing protocols for the testing of industrial hemp commodities and products; and

(b) Establishing procedures for determining batch sizes and for sampling industrial hemp commodities and products.

(5) This section does not apply to:

(a) Agricultural hemp seed;

(b) Seeds of the plant genus Cannabis within the plant family Cannabaceae that are incapable of germination;

(d) Other parts of industrial hemp that the department identifies by rule as exempt. [2016 c.71 §9; 2018 c.116 §11; 2021 c.351 §287; 2021 c.542 §29a; 2021 c.646 §13]

Note: See note under 571.260.

571.333 Industrial hemp crop concentration standards; test results. (1) The State Department of Agriculture may enter into an agreement with the Oregon Health Authority for the purpose of developing standards for investigating and testing an industrial hemp crop to determine the average tetrahydrocannabinol concentration of the crop.

(2) In accordance with standards developed under subsection (1) of this section, a laboratory described in ORS 571.330 may test an industrial hemp crop for the purpose of determining the average tetrahydrocannabinol concentration of the crop. The laboratory must provide the test results to the department in a form and manner prescribed by the department. [2016 c.71 §9a; 2018 c.116 §12]

Note: See note under 571.260.

571.336 Delivery of industrial hemp to marijuana processor; processing and delivery of hemp marijuana supplements; fee; appropriation. (1) As used in this section, “licensee,” “marijuana,” “marijuana item” and “marijuana processor” have the meanings given those terms in ORS 475C.009.

(2) A grower licensed under ORS 571.281 may deliver industrial hemp, and a handler licensed under ORS 571.281 may deliver industrial hemp concentrates and industrial hemp extracts, to a marijuana processor that holds a license issued under ORS 475C.085, if:

(a) The grower or handler and the marijuana processor are registered with the Oregon Liquor and Cannabis Commission, in a form and manner prescribed by the commission, for the purpose of processing industrial hemp, industrial hemp concentrates and industrial hemp extracts;

(b) The marijuana processor is provided with the results of any test conducted on the industrial hemp, industrial hemp concentrate or industrial hemp extract pursuant to ORS 571.260 to 571.348 as a condition of the marijuana processor’s receiving the industrial hemp, industrial hemp concentrate or industrial hemp extract;

(c) The marijuana processor keeps the results of any test that the marijuana processor receives pursuant to paragraph (b) of this subsection in a form and manner prescribed by the commission;

(d) The industrial hemp, industrial hemp concentrate or industrial hemp extract is tracked using the system developed and maintained under ORS 475C.177 when the industrial hemp, industrial hemp concentrate or industrial hemp extract is delivered to the premises of the marijuana processor; and

(e) The grower or handler and the marijuana processor meet any other requirement established by the commission by rule.

(3) Industrial hemp, industrial hemp concentrates and industrial hemp extracts may be processed by a marijuana processor registered under this section into any industrial hemp commodity or product or used by a marijuana processor registered under this section to supplement the processing of any marijuana item.

(4) An industrial hemp concentrate, industrial hemp extract, industrial hemp commodity or product or marijuana item processed pursuant to this section may be delivered by a marijuana processor registered under this section to a licensee as described in ORS 475C.205, provided that the industrial hemp concentrate, industrial hemp extract, industrial hemp commodity or product or marijuana item meets any applicable requirement for marijuana items set forth in ORS 475C.005 to 475C.525, 475C.540 to 475C.586 and 475C.600 to 475C.648 and rules adopted under ORS 475C.005 to 475C.525, 475C.540 to 475C.586 and 475C.600 to 475C.648.

(5) The commission may impose an annual fee reasonably calculated to not exceed the cost of administering this section on growers registered under this section, handlers registered under this section and marijuana processors registered under this section. Fees collected under this section shall be deposited in the Marijuana Control and Regulation Fund established under ORS 475C.297. Moneys deposited in the fund pursuant to this subsection are continuously appropriated to the commission for the purpose of administering this section. [2017 c.531 §3; 2021 c.351 §288; 2021 c.542 §30]

Note: See note under 571.260.

571.337 Processor, retailer and wholesaler transaction involving industrial hemp commodity or product; rules. (1) As used in this section:

(a) “Processor” means a person licensed under ORS 475C.085.

(b) “Retailer” means a person licensed under ORS 475C.097.

(2) A processor, retailer or wholesaler may purchase, receive, transfer, sell or transport industrial hemp, or an industrial hemp commodity or product that contains cannabinoids and is intended for human consumption, only if:

(a) The processor, retailer or wholesaler received the hemp, commodity or product from a grower or handler licensed under ORS 571.281 or a processor;

(b) The grower, handler or processor under paragraph (a) of this subsection is registered with the Oregon Liquor and Cannabis Commission as provided under ORS 571.336; and

(c) The hemp, commodity or product meets the requirements for marijuana items under ORS 475C.005 to 475C.525, 475C.540 to 475C.586 and 475C.600 to 475C.648 and rules adopted by the commission.

(3) A grower, handler or processor registered as described under ORS 571.336 (2)(a) shall enter the hemp, commodity or product that contains cannabinoids, is intended for human consumption and is intended for transfer, sale or transport to a processor, retailer or wholesaler licensed under ORS 475C.005 to 475C.525 into the tracking system described in ORS 475C.177 before the hemp, commodity or product is transferred to a laboratory described in ORS 571.330 (1) for testing of a type described under ORS 475C.544. The commission shall continue to track the hemp, commodity or product entered into the system under this subsection when the hemp, commodity or product is transferred, sold or transported to a premises licensed under ORS 475C.005 to 475C.525, or to other areas under the control of the premises licensee.

(4) A processor may transfer, sell or transport an industrial hemp commodity or product to a person that is not a processor, retailer or wholesaler if the industrial hemp commodity or product:

(a) Is tested as described in ORS 475C.544 and otherwise meets the requirements for marijuana items under ORS 475C.005 to 475C.525, 475C.540 to 475C.586 and 475C.600 to 475C.648 and rules adopted by the commission;

(b) Is entered into the tracking system described in ORS 475C.177;

(c) Prior to the transfer, sale or transport, is held by the processor for the duration and in the manner required by the commission by rule; and

(d) Meets any other requirements established by the commission by rule.

(5) The State Department of Agriculture shall adopt rules regarding the activities of growers and handlers under this section.

(6)(a) The commission shall adopt rules regarding the activities of processors, retailers, wholesalers and laboratories under this section.

(b) The commission may adopt rules to carry out subsection (4) of this section. [2018 c.116 §15; 2021 c.351 §289; 2021 c.542 §31]

Note: See note under 571.260.

571.339 Limitations on industrial hemp transaction involving consumer; testing requirements; exception. (1) For purposes of this section, “consumer” means a person that purchases, acquires, owns, holds or uses an industrial hemp commodity or product other than for the purpose of resale.

(2) A person may not sell, transfer or deliver to a consumer an industrial hemp commodity or product that contains cannabinoids and is intended for human consumption unless:

(a) The industrial hemp commodity or product has been tested in accordance with ORS 571.330 and any rules adopted pursuant to ORS 571.330;

(b) If the hemp commodity or product is intended for human consumption by ingestion, the hemp commodity or product was processed in a facility licensed by the State Department of Agriculture under ORS 616.695 to 616.755 or in a facility in another state or jurisdiction that meets requirements substantially similar to requirements established under ORS 616.695 to 616.755;

(d) If the industrial hemp commodity or product is sold to a person under 21 years of age or any representations are made to the consumer about the concentration of delta-8-tetrahydrocannabinol, the results of the testing required under this subsection demonstrate the concentration of delta-8-tetrahydrocannabinol;

(e) The industrial hemp commodity or product does not contain more than 0.3 percent tetrahydrocannabinol or the concentration of tetrahydrocannabinol allowed under federal law, whichever is greater; and

(f) The industrial hemp commodity or product does not exceed the concentration of adult use cannabinoids established by the Oregon Liquor and Cannabis Commission, in conjunction with the Oregon Health Authority and State Department of Agriculture, by rule.

(3) The testing required under subsection (2) of this section may be conducted only by:

(a) A laboratory licensed by the commission under ORS 475C.548 and accredited by the authority under ORS 475C.560; or

(b) If the industrial hemp commodity or product was processed outside of this state, a laboratory accredited to the same or more stringent standards as a laboratory described in paragraph (a) of this subsection.

(4) A person may not sell or deliver an adult use cannabis item to a person under 21 years of age.

(5) This section does not apply to the retail sale of industrial hemp commodities or products by a marijuana retailer, as defined in ORS 475C.009, that holds a license issued under ORS 475C.097. [2017 c.531 §4; 2018 c.116 §16; 2021 c.542 §32]

Note: See note under 571.260.

571.341 [2018 c.116 §15a; 2021 c.351 §290; repealed by 2021 c.542 §34]

571.345 Remediation for unintentional violation; rules. The State Department of Agriculture may by rule or order establish a process providing for the remediation of a violation of ORS 571.330 or 571.333 that is committed by a grower or handler licensed under ORS 571.281 and is not committed intentionally. [2018 c.116 §9; 2021 c.542 §33]

Note: See note under 571.260.

571.348 Civil penalty; appropriation. (1) Subject to the provisions of ORS chapter 183, the State Department of Agriculture may impose a civil penalty not to exceed $2,500 on a person for violating:

(a) A provision of ORS 571.260 to 571.348;

(b) A rule adopted under a provision of ORS 571.260 to 571.348; or

(c) An order issued by the department pursuant to a provision of ORS 571.260 to 571.348 or a rule adopted under a provision of ORS 571.260 to 571.348.

(2) In addition to the penalty described in subsection (1) of this section, subject to the provisions of ORS chapter 183, the department may impose a civil penalty not to exceed $10,000 on a person if the person is a grower licensed under ORS 571.281 and the department determines that the person’s industrial hemp crop contains an average tetrahydrocannabinol concentration of at least 10 percent on a dry weight basis.

(3) The department may not discipline a person under this section on the basis that possessing, delivering and manufacturing industrial hemp are prohibited by federal law.

(4) All moneys collected by the department under this section shall be deposited in the General Fund in the State Treasury to the credit of the Industrial Hemp Fund established under ORS 571.278. [2016 c.71 §12; 2018 c.116 §31; 2021 c.542 §§33a,33b]

Note: See note under 571.260.

571.350 [Formerly 576.800; renumbered 571.650 in 2021]

571.355 [Formerly 576.805; renumbered 571.655 in 2021]

571.360 [Formerly 576.810; renumbered 571.660 in 2021]

571.365 [Formerly 576.815; 2011 c.597 §234; renumbered 571.665 in 2021]

571.370 [Formerly 576.821; renumbered 571.670 in 2021]

OREGON HEMP COMMISSION

571.400 Definitions for ORS 571.400 to 571.501. As used in ORS 571.400 to 571.501:

(1) “Fiscal year”:

(a) Except as provided in paragraph (b) of this subsection, means the 12-month period commencing on July 1 and ending on June 30.

(b) If adopted by rule by the Oregon Hemp Commission, means the 12-month period commencing on January 1 and ending on December 31.

(2) “Hemp” means the plant species Cannabis sativa that:

(a) Has a tetrahydrocannabinol concentration that complies with the concentration specified by the State Department of Agriculture by rule; and

(b) Has the meaning as defined by the department by rule.

(3) “Processor” has the meaning given the term “handler” in ORS 571.269.

(4) “Producer” has the meaning given the term “grower” in ORS 571.269. [2021 c.216 §1]

Note: 571.400 to 571.501 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 571 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

571.402 Declarations; purposes of ORS 571.400 to 571.501. (1) It is hereby declared, as a matter of legislative determination, that ORS 571.400 to 571.501 are enacted in the exercise of the power of the state for the purposes of protecting and furthering the public health and welfare. It is further declared that the hemp industry of this state is affected with a public interest in that, among other things:

(a) The production, processing, manufacture and distribution of hemp and hemp products constitute a paramount industry of this state that not only provides substantial and required revenues for the state and its political subdivisions, and employment and a means of livelihood for many thousands of its population, but also provides essential foods, supplements and other agricultural, commercial and industrial products that are vital to the public health and welfare.

(b) The stabilization, maintenance and expansion of the hemp industry of Oregon, and of the state, national and international markets for hemp products, are necessary to assure the consuming public an adequate supply of foods and supplements that are indispensable in a proper human diet, as well as other agricultural, commercial and industrial products to protect, for the state and its political subdivisions, a necessary source of tax revenue, to provide and maintain an adequate standard of living for a great segment of the population of this state, to maintain proper wage scales for those engaged in the hemp industry and to maintain existing employment.

(c) The essential nature of hemp and hemp products is such as to require that the public be made aware of the essential nature of hemp and hemp products, and be protected against misrepresentation and deception, by the dissemination of accurate and scientific information about various hemp and hemp products, their various classifications, the food values and industrial and therapeutic uses of hemp and hemp products, the methods, care and precautions necessary to their proper production, processing, manufacture and distribution, the necessary costs and expenses of the production, processing, manufacture and distribution of hemp and hemp products and the necessity and desirability on the part of the public of using and consuming hemp and hemp products of the highest standards of quality.

(2) The purposes of ORS 571.400 to 571.501 are:

(a) To enable the hemp industry, with the aid of the state, to develop, maintain and expand the state, national and international markets for hemp and hemp products produced, processed or manufactured in this state, and the use and consumption of hemp and hemp products in the state, national and international markets.

(b) In aid, but not in limitation, of the purposes described in paragraph (a) of this subsection, to authorize and enable the Oregon Hemp Commission to formulate and effectuate, directly or in cooperation with other agencies and instrumentalities specified in ORS 571.400 to 571.501, sales stimulation and consumer or other educational programs designed to increase the use and consumption of hemp and hemp products and to conduct research, education and information programs related to the hemp industry. [2021 c.216 §2]

Note: See note under 571.400.

571.404 Duties of State Department of Agriculture; rules. (1) The State Department of Agriculture shall:

(a) Monitor the methods and practices used or proposed by the Oregon Hemp Commission in carrying out the goals and meeting the needs disclosed by the budget of the commission;

(b) Promote cooperation among the Oregon Hemp Commission, the commodity commissions, the Oregon Beef Council and the Oregon Wheat Commission, and assist in the interchange of information and experiences among those entities;

(c) Carry out the assigned organizational procedures under ORS 571.400 to 571.501, including the appointment and removal of members of the Oregon Hemp Commission;

(d) Review budgets submitted to the Director of Agriculture by the commission; and

(e) Adopt rules to carry out the provisions of ORS 571.400 to 571.501.

(2) The department shall review, and may approve or disapprove, plans and projects recommended by the Oregon Hemp Commission for promotion, advertising and research and for the dissemination of consumer and hemp industry information. In reviewing a plan or project under this subsection, the department shall consider whether the plan or project is:

(a) Factual;

(b) Not disparaging to other agricultural commodities; and

Note: See note under 571.400.

571.406 Temporary members of Oregon Hemp Commission; terms; rules. (1) In the same manner as that provided in ORS 576.206, the Director of Agriculture shall appoint seven temporary members to the Oregon Hemp Commission. In appointing the temporary members, the director shall consider any recommendations by commodity commissions, producers and producer associations. All temporary members of the commission must be citizens of the United States and residents of this state.

(2)(a) A majority of the temporary members must be producers.

(b) A producer member appointed under subsection (1) of this section must have produced hemp under a license or registration issued by the State Department of Agriculture for at least three years prior to the member’s appointment.

(c) At least one member must be a processor. A processor member appointed under this subsection must have processed hemp under a license or registration issued by the department for at least three years prior to the member’s appointment.

(d) At least one member must be a member of the public who is not associated with the production or processing of hemp.

(3) The temporary members shall adopt rules for the commission in accordance with ORS chapter 183, including but not limited to rules:

(a) Establishing the number and geographic representation of the commissioners;

(b) Providing for recommending the removal of commissioners;

(d) Relating to the assessment rate and procedures described in ORS 571.400 to 571.501.

(4) The terms of temporary members expire on the date of the first meeting of the commissioners appointed under subsection (6) of this section, but not later than one year after September 25, 2021.

(5) A qualified temporary member is eligible for appointment to a term on the commission under subsection (6) of this section.

(6) Except as provided in subsection (11) of this section, the director shall appoint the commissioners to the commission in accordance with rules adopted under subsection (3) of this section. In appointing the commissioners, the director shall consider any recommendations by commodity commissions, producers and producer associations. The commissioners appointed under this subsection may be the same as the temporary members appointed under subsection (1) of this section. All commissioners must be citizens of the United States and residents of this state.

(7)(a) All commissioners other than processors and the members of the public must be producers.

(b) A majority of the commissioners must be producers that have produced hemp under a license or registration issued by the department for at least three years prior to appointment to the commission.

(c) At least one commissioner must be a processor that has processed hemp under a license or registration issued by the department for at least three years prior to the commissioner’s appointment.

(d) At least one commissioner must be a member of the public who is not associated with the production or processing of hemp.

(8) The term of a commissioner appointed under subsection (6) of this section is four years unless a shorter term is established by the commission by rule to provide for staggered terms. A commissioner is eligible for reappointment unless otherwise provided by the commission by rule. Before the expiration of a commissioner’s term, the director shall appoint a successor to assume office upon expiration of the term. If there is a vacancy on the commission for any reason, including a reason specified in ORS 571.410 or 571.414, the director shall appoint a person to the unexpired term.

(9) The commission shall select one member to serve as chairperson, another member to serve as vice chairperson and another member to serve as secretary-treasurer with the duties and powers that the commission deems appropriate to those offices.

(10) A temporary member of the commission and a commissioner are entitled to compensation and expenses in the manner and amounts provided in ORS 292.495. Claims for compensation earned and expenses incurred in performing the functions of the commission shall be paid out of funds available to the commission.

(11) The commission may amend the rules adopted by the temporary members under subsection (3) of this section. [2021 c.216 §4]

Note: See note under 571.400.

571.408 Ex officio members of Oregon Hemp Commission. The Director of Agriculture and the Dean of the College of Agricultural Sciences of Oregon State University are ex officio nonvoting members of the Oregon Hemp Commission. [2021 c.216 §5]

Note: See note under 571.400.

571.410 Required declaration of vacancy of producer, processor office. The Director of Agriculture shall immediately declare the office of a member of the Oregon Hemp Commission who is a producer or processor vacant if the director finds that:

(1) The member is no longer actively engaged in hemp production or processing;

(2) The member has become a resident of another state; or

(3) The member is otherwise unable to perform the duties of the office. [2021 c.216 §6]

Note: See note under 571.400.

571.412 Required declaration of vacancy of public member office. The Director of Agriculture shall immediately declare the office of a member of the Oregon Hemp Commission who is a member of the public vacant if the director finds that the member has become a producer or processor. [2021 c.216 §6a]

Note: See note under 571.400.

571.414 Authority to remove member of Oregon Hemp Commission. (1) The Director of Agriculture may remove a member of the Oregon Hemp Commission for inefficiency, neglect of duty or misconduct in office if the director provides:

(a) At least 10 days before the date of a public hearing on the issue of removal of the member, service on the member of:

(A) A copy of the charges against the member; and

(B) Notice of the time and place of the public hearing on the issue of removal; and

(b) A public hearing on the issue of removal of the member at which the member must have the opportunity to be heard in person or by counsel and to present evidence to answer the charges and explain the facts alleged against the member.

(2) In the case of removal, the director shall file with the office of the Secretary of State a complete statement of all charges against the member, and the findings on the charges, along with a record of the entire removal proceedings. [2021 c.216 §7]

Note: See note under 571.400.

571.417 Payment for member of Oregon Hemp Commission; expenses; rules. (1) The Oregon Hemp Commission may adopt rules to establish the amount of payment that a member of the commission receives under ORS 292.495 for each day, or portion of a day, during which the member is engaged in the performance of official duties. Any rules adopted under this section must specify that the amount must be at least the amount of payment that would otherwise be provided under ORS 292.495.

(2) Members, officers and employees of the commission must receive their actual and necessary travel and other expenses reasonably incurred in the performance of their official duties. Subject to any limitations described under ORS 292.495 (2), the commission shall adopt rules governing the incurring and paying of the expenses described in this subsection. [2021 c.216 §8]

Note: See note under 571.400.

571.420 Meetings. (1) The Oregon Hemp Commission shall establish a meeting place anywhere in this state, but must consider in selecting the location the convenience of the majority of those persons most likely to have business with the commission or to be affected by the acts of the commission.

(2) Notwithstanding subsection (1) of this section, the commission may participate in meetings outside the state for the purposes of advancing the work of the commission.

(3) The commission may take action only at meetings held within this state. [2021 c.216 §9]

Note: See note under 571.400.

571.423 Powers of Oregon Hemp Commission; rules. The Oregon Hemp Commission may:

(1) Conduct scientific research to discover and develop the commercial value of hemp and hemp products.

(2) Disseminate reliable information founded upon the research conducted under ORS 571.400 to 571.501 that shows the value of hemp and hemp products for any purpose for which hemp and hemp products may be found useful and profitable.

(3) Study federal and state legislation with respect to tariffs, duties, reciprocal trade agreements, import quotas and other matters concerning the effect of the legislation on the hemp industry, and represent and protect the interests of the hemp industry with respect to any legislation, proposed legislation or executive action that may affect the hemp industry.

(4) Act jointly and in cooperation with the federal government, or any federal agency, in the administration of any program of the federal government or federal agency that the commission determines is beneficial to the hemp industry in this state, and expend funds in connection with the administration of a program described in this subsection, provided that the program is compatible with the powers conferred on the commission by ORS 571.400 to 571.501.

(5) Enter into contracts for advertising hemp and for developing new markets through advertising.

(6) Develop plans or projects for promotion and advertising research, consumer information and industry information, and create programs that will lead to the development of new markets, marketing strategies, increased efficiency and activities to enhance the image of the hemp industry.

(7) Appoint all subordinate officers and employees of the commission and establish their duties and compensation.

(8) Levy the assessments described in ORS 571.447.

(9) Borrow money in amounts that do not exceed estimated revenues from assessments for the year.

(10) Enter into contracts for carrying out the duties of the commission, in addition to those duties described in subsection (5) of this section.

(11) Subject to ORS 30.260 to 30.300, sue and be sued in the name of the commission.

(12) Request that the Attorney General prosecute in the name of the State of Oregon suits and actions for the collection of assessments levied by the commission.

(13) Participate in federal and state hearings or other proceedings concerning regulation of the manufacture, distribution, sale or use of pesticides as defined in ORS 634.006 or other chemicals that are of use or potential use to producers. This subsection does not authorize the commission to regulate the use of pesticides.

(14) To the extent consistent with the duties of the commission, participate in and cooperate with local, state, national and international private organizations or governmental agencies that engage in work similar to that of the commission.

(15) Provide mechanisms for maintaining and expanding existing markets and developing new domestic and international markets for hemp, including but not limited to:

(a) Public relations programs;

(b) Media relations programs;

(d) Point of sale promotion and coupon programs; and

(e) Activities that prevent, modify or eliminate trade barriers that obstruct the free flow of hemp to market.

(16) Conduct and fund research, in addition to that described in subsection (1) of this section, to:

(a) Enhance the commercial value of hemp and hemp products;

(b) Discover the benefits to public health, the environment or the economy of consuming or otherwise using hemp;

(c) Develop better and more efficient production, harvesting, irrigation, processing, transportation, handling, marketing and uses of hemp;

(d) Control or eradicate hazards to hemp, including but not limited to hazards from diseases, pests and weeds, while supporting coexistence between hemp and other agricultural crops, including marijuana;

(e) Develop viable alternatives for the rotation of crops;

(f) Determine new or potential demand for hemp and develop appropriate market development strategies for capturing that demand; and

(g) Measure the effectiveness of marketing, advertising or promotional programs.

(17) Gather, publicize and disseminate information that shows the importance of the consumption and other uses of hemp to public health, the environment, the economy and the proper nutrition of children and adults.

(18) Further the purposes of this section by funding scholarships for or providing financial assistance to persons or entities interested in hemp.

(19) Adopt rules as necessary to carry out the duties, functions and powers conferred on the commission by this section. [2021 c.216 §10]

Note: See note under 571.400.

571.426 Authority to contract; limitations on contractors; required review of contracts; rules. (1)(a) The Oregon Hemp Commission may contract with an independent contractor for the performance of any service, except that the commission may not contract with an independent contractor to perform discretionary functions of the commission.

(b) ORS 279.835 to 279.855 and ORS chapters 240, 279A, 279B and 279C do not apply to the commission in obtaining services described in this subsection, except that a contract for services described in this subsection may not take effect until the contract is approved by the State Department of Agriculture under subsection (7) of this section and the Department of Justice under subsection (8) of this section.

(2)(a) The commission may rent space or acquire supplies and equipment from any contractor as described in subsection (1) of this section.

(b) ORS 276A.206, 279.835 to 279.855 and 283.085 to 283.092 and ORS chapters 276, 278, 279A, 279B, 279C and 283 do not apply to rentals or acquisitions described in this subsection.

(3) Except as provided in this section, a contractor described in subsection (1) of this section shall be considered an independent contractor and not an employee, eligible employee, public employee or employee of the state for purposes of Oregon law, including ORS chapters 236, 238, 238A, 240, 243, 291, 316 and 652.

(4) Nothing in this section precludes the state or the commission from being considered the employer of the contractor described in subsection (1) of this section for purposes of unemployment compensation under ORS 670.600 and ORS chapter 657.

(5) A contractor described in subsection (1) of this section shall be considered an independent contractor and not a worker for purposes of ORS 670.600 and ORS chapter 656.

(6) A contractor described in subsection (1) of this section may not be considered a public official, public officer, state officer or executive official for purposes of Oregon law, including ORS 171.725 to 171.785 and ORS chapters 236, 244, 292, 295 and 297.

(7) The State Department of Agriculture shall review the contract described in subsection (1) of this section for the adequacy of the clauses pertaining to statement of work, starting and ending dates, consideration, subcontracts, funds authorized in the budget, amendments, termination, compliance with applicable law, assignment and waiver, access to records, indemnity, ownership of work product, nondiscrimination, successors in interest, attorney fees, tax certification or merger or any other clause the department deems necessary.

(8) The Department of Justice shall review any contracts, agreements and similar funding devices that meet or exceed the fund threshold established by the department by rule.

(9) The Oregon Department of Administrative Services, in consultation with the State Department of Agriculture, shall adopt rules necessary for the screening and selection of independent contractors under this section.

(10) Except as provided under subsection (9) of this section, the State Department of Agriculture may adopt rules as necessary to carry out this section. [2021 c.216 §11]

Note: See note under 571.400.

571.429 Oregon Hemp Commission authority, duties relating to moneys. (1) The Oregon Hemp Commission shall:

(a) Adopt a budget, obtain budget approval and submit financial statements in the same manner as a commodity commission acting under ORS 576.416.

(b) Receive, deposit, invest, expend and budget moneys in the same manner as a commodity commission acting under ORS 571.471, 571.486, 571.489 and 571.492.

(2) The commission may accept grants, donations or contributions from any source and for expenditures for any purpose consistent with the powers conferred on the commission. [2021 c.216 §12]

Note: See note under 571.400.

571.432 Administrative support for Oregon Hemp Commission from Oregon Department of Administrative Services; compensation for services; accounting system. (1) Upon request by the Oregon Hemp Commission, the Oregon Department of Administrative Services may:

(a) Purchase or otherwise provide for acquiring or furnishing supplies, materials, equipment and services, other than personal services, that the commission requires and for independent contractors to furnish professional services to the commission.

(b) Provide for printing and multiple duplication work for the commission under ORS 282.010 to 282.050, except for printing and binding that advertises or promotes hemp or hemp products.

(c) Provide for services to the commission for disposing of surplus, obsolete or unused supplies, materials and equipment under ORS 279A.280.

(d) Provide for central telephone service, central mail service and messenger services to the commission under ORS 283.140.

(e) Provide motor vehicles for use by members, officers and employees of the commission under ORS 283.305 to 283.350.

(2) The commission shall pay to the department an amount for services performed by the department under subsection (1) of this section that the department determines is adequate to reimburse the department.

(3) Upon request by the commission, the department may design and supervise the installation of an accounting system for the commission. The commission shall pay to the department an amount for services performed by the department under this subsection that the department determines is adequate to reimburse the department. [2021 c.216 §13]

Note: See note under 571.400.

571.435 Provision and receipt of services, facilities and materials to, from other state agencies. (1) The Oregon Hemp Commission may elect to provide services, facilities and materials to commodity commissions created under ORS 576.051 to 576.455, the Oregon Wheat Commission, the Oregon Beef Council and other state agencies and officers under ORS 283.110.

(2) Upon request by the Oregon Hemp Commission, any other entity described in subsection (1) of this section may provide services, facilities and materials to the commission under ORS 283.110. [2021 c.216 §14]

Note: See note under 571.400.

571.438 Exemption from certain financial administration laws. ORS 291.026, 291.201 to 291.222, 291.232 to 291.260, 291.322 to 291.334, 292.210 to 292.250, 293.260 to 293.280, 293.295 to 293.346 and 293.590 to 293.640 do not apply to the Oregon Hemp Commission or to the administration and enforcement of ORS 571.400 to 571.501. [2021 c.216 §15]

Note: See note under 571.400.

571.441 Commission employees not subject to state personnel compensation plans; commission not subject to office space regulation; fees for administrative services; rules. (1) Wages or salaries of employees of the Oregon Hemp Commission are not subject to personnel compensation plans for state employees established by the Oregon Department of Administrative Services under ORS 240.235 to 240.250.

(2) The commission is not required to utilize office space provided or obtained by the department as provided in ORS chapter 276.

(3) The State Department of Agriculture may charge and collect from the commission an assessment or fee to reimburse the department for supervisory or administrative functions the department is required by law to perform for the commission. The department shall establish the amount of the assessment or fee by rule. [2021 c.216 §16]

Note: See note under 571.400.

571.444 Intellectual property; rules. (1) As used in this section, “intellectual property” means patents, copyrights, trademarks, inventions, discoveries, processes, ideas and other similar property, whether or not they are patentable or copyrightable.

(2)(a) The Oregon Hemp Commission may:

(A) Consistent with the purposes of the commission, develop intellectual property that relates to hemp or assists in the implementation, maintenance or development of commission programs.

(B) Take all necessary and proper actions, including but not limited to entering into contracts and other agreements and owning, managing, disposing of or using the intellectual property.

(b) The commission shall adopt rules to govern the ownership, management, disposal and use of intellectual property and other activities of the commission relating to intellectual property.

(3) Moneys received by the commission as a result of the ownership, management, disposal or use of intellectual property, or other activities of the commission relating to intellectual property, must be deposited into the account established by the commission as described in ORS 571.471. [2021 c.216 §17]

Note: See note under 571.400.

571.447 Levy and collection of assessment; exemption; limitation; application for refund; rules. (1) As used in this section:

(a) “Commodity” means hemp.

(b) “Industry average unit price” means the average unit price for the raw commodity within the industry and includes prices that are calculated using a one-year, two-year or three-year average and data from the most recent complete year or years preceding the year of determination.

(2)(a) The Oregon Hemp Commission may assess, levy and collect an assessment in an amount determined by rule, on all units of the commodity grown or produced in this state and sold or transferred in commercial channels. The commission may not apply an assessment to a transaction that occurred prior to the effective date of the rule in which the commission adopted the assessment.

(b) The commission may assess, levy and collect a differential assessment in an amount determined by the commission by rule, based on the intended use, type or variety and value of the commodity.

(d) The commission may by rule define and regulate processing and casual sales of the commodity and the methods of assessment under this section.

(3) The amount of the assessment provided for in subsection (2) of this section is limited as follows:

(a) If the commission assesses on a unit basis, the maximum assessment may not exceed 1.5 percent of the industry average unit price. The commission may determine the industry average unit price by considering data and estimates of the United States Department of Agriculture, Oregon State University or other reliable sources.

(b) If the commission assesses on a percentage of the dollar value basis, the maximum assessment may not exceed 1.5 percent of the dollar value that a producer receives for the raw commodity. If the dollar value is not otherwise determinable, the commission may establish the dollar value based on the industry average unit price for that year for the raw commodity.

(4) The commission shall assess, levy and collect an assessment under subsection (2) of this section from the producer at the time and in the manner provided by the commission by rule. The commission is the owner of a collected assessment. A person who collects an assessment holds the assessment in trust for the benefit of the commission and the state, and shall remit the assessment as required by the commission under ORS 571.453.

(5) Notwithstanding subsection (4) of this section, the commission may assess, levy and collect an assessment from a producer as determined by the commission by rule. Except as provided in subsection (6) of this section, the assessment may not exceed the limits described in subsection (3) of this section.

(6) Notwithstanding subsection (5) of this section, the commission may assess, levy and collect an assessment in excess of the limits described in subsection (3) of this section pursuant to a federal marketing order or agreement.

(7) A person who believes that the amount of an assessment is incorrect may apply to the commission for a refund not later than 60 days after the date on which the person paid the assessment. [2021 c.216 §18]

Note: See note under 571.400.

571.450 Exemptions from assessments; rules. (1) The Oregon Hemp Commission may establish by rule exemptions from the assessments described in ORS 571.447 based on:

(a) Hemp quantities;

(b) Types of hemp sales;

(d) Types of hemp processors.

(2) In adopting a rule under subsection (1) of this section, the commission shall consider:

(a) Federal laws and rules, and laws and rules of other states, that relate to commodity commissions, boards and marketing orders;

(b) The practices, procedures and customs unique to the production, processing and trading of hemp and to producers; and

(3) A producer or processor that is exempted from assessment but required to submit reports to the commission is subject to ORS 571.459. [2021 c.216 §19]

Note: See note under 571.400.

571.453 Assessment collection requirements. (1) A person responsible for collecting an assessment on behalf of the Oregon Hemp Commission:

(a) Shall report to the commission as required by the commission by rule.

(b) Who fails to deduct an assessment at the time of sale shall report and pay the assessment to the commission.

(2) This section applies to a producer that is required to report and pay an assessment. [2021 c.216 §20]

Note: See note under 571.400.

571.456 Reporting to Oregon Hemp Commission of sales, transfers of hemp by producer; payment of assessment. (1) When a processor lives, or has the processor’s office, in Oregon, the producer shall report all transfers or sales made to the processor on forms provided by the Oregon Hemp Commission and pay the assessment moneys directly to the commission.

(2) When a processor lives, or has the processor’s office, in another state or country or is a federal or other governmental agency, the producer shall report all transfers or sales made to the processor on forms provided by the Oregon Hemp Commission and pay the assessment moneys directly to the commission.

(3) If a producer is also licensed as a processor and performs all or part of the producer’s processing functions that would normally be performed by another person in the role of processor, the producer shall report all transfers or sales of hemp from the production of the producer on forms provided by the commission and pay the assessment moneys directly to the commission. [2021 c.216 §21]

Note: See note under 571.400.

571.459 Requirement to maintain records; Oregon Hemp Commission authority to inspect records, issue subpoenas. (1) A person required to pay or collect an assessment on hemp under ORS 571.400 to 571.501 shall maintain accurate records sufficient to enable the Oregon Hemp Commission to determine by inspection and audit the accuracy of assessments paid or due to the commission and of reports made or due to the commission.

(2) For purposes of determining the accuracy of assessments paid or due to the commission, the commission, or a person authorized by the commission, may:

(a) Make an inspection during normal business hours of the business premises of a person required to pay or collect an assessment; and

(b) Audit the records of a person required to pay or collect an assessment.

(3) For purposes of determining the accuracy of assessments paid or due to the commission, the commission may issue a subpoena for the production of any books, records or documents related to the payment or collection of an assessment to a person required to pay or collect the assessment.

(4) If an audit determines that a person is delinquent in the payment or collection of an assessment, the person shall pay the cost of the audit, not to exceed an amount equal to the delinquent assessment. [2021 c.216 §22]

Note: See note under 571.400.

571.462 Penalty for delayed payment of assessment. (1) In addition to the penalties prescribed in ORS 571.501, a person who delays transmittal of funds beyond the time set by the Oregon Hemp Commission shall pay a penalty of 10 percent of the amount due and one and one-half percent interest per month on the unpaid balance of the assessment.

(2) The commission may waive the penalty and interest described in subsection (1) of this section upon a showing of good cause, as determined by the commission by rule.

(3) Notwithstanding subsection (1) of this section, if an assessment is collected pursuant to a federal marketing order or agreement, the commission may establish a penalty or interest rate that is consistent with the federal marketing order or agreement. [2021 c.216 §23]

Note: See note under 571.400.

571.465 Penalty for failure to pay assessment; civil action. (1) If a person responsible for the transmittal of assessment moneys to the Oregon Hemp Commission fails to relinquish assessment moneys collected, the person shall pay an amount equal to twice the amount of the unrelinquished assessment moneys.

(2) The commission may commence a civil action or utilize any other available legal or equitable remedy to collect an assessment or civil penalty, obtain injunctive relief or obtain specific performance under ORS 571.400 to 571.501.

(3) If the person responsible for the transmittal of assessment moneys is a cooperative, corporation or joint venture, all directors and officers of the cooperative, corporation or joint venture are personally liable for a failure to relinquish the assessment moneys collected by the cooperative, corporation or joint venture.

(4) If the commission obtains a favorable judgment in an action or suit under subsection (2) of this section, the court shall award to the commission costs and reasonable attorney fees. [2021 c.216 §24]

Note: See note under 571.400.

571.468 Dispute regarding amount of assessment; rules. (1) A producer may dispute the amount of an assessment levied against the producer on a unit basis under ORS 571.447 if the total assessment levied against the producer during an assessment period established by the Oregon Hemp Commission by rule exceeds the total dollar value received by the producer for the hemp during that assessment period multiplied by the maximum lawful assessment percentage.

(2) A producer who disputes the amount of an assessment as provided under subsection (1) of this section may file a challenge to the assessment with the commission not more than 60 days after the close of the assessment period. The challenge must be filed on a form provided by the State Department of Agriculture. The commission shall process a challenge under this section pursuant to rules adopted under subsection (4) of this section.

(3) A producer filing a challenge under this section has the burden of proving the total dollar value received by the producer during the assessment period. If the producer is also licensed as a processor, the producer also has the burden of proving the prices paid to the producer are equivalent to prices paid in arm’s-length transactions. The commission shall refund the amount of the assessment that the producer proves is in excess of the total dollar value received by the producer for the hemp during the assessment period multiplied by the maximum lawful assessment percentage.

(4)(a) The department shall adopt rules to carry out this section. Rules adopted under this paragraph must include, but need not be limited to, procedures for filing, processing and formal or informal resolution of challenges and for determining hemp prices paid in arm’s-length transactions.

(b) The commission shall adopt rules establishing assessment periods and may adopt other rules as necessary and that do not conflict with the rules adopted by the department under this subsection. [2021 c.216 §25]

Note: See note under 571.400.

571.471 Financial activity of Oregon Hemp Commission. (1)(a) Moneys a person collects or receives from the assessment levied pursuant to ORS 571.447, and other moneys the Oregon Hemp Commission receives, must be paid to the authorized agent of the commission and promptly deposited into an account established by the commission in a depository, as defined in ORS 295.001, that is insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.

(b) In a manner consistent with the requirements of ORS 295.001 to 295.108, the chairperson, vice chairperson and secretary-treasurer for the commission shall ensure that sufficient collateral secures any amount of funds on deposit that exceeds the coverage limits established by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.

(c) All moneys in the account are continuously appropriated to the commission for the purposes of carrying out the commission’s duties, functions and powers.

(2) Moneys may not be withdrawn from or paid out of the account except upon order of the commission, and upon checks or other orders upon accounts signed by the secretary-treasurer or other member of the commission that the commission designates and countersigned by another member, officer or employee of the commission that the commission designates. The commission shall keep a receipt, voucher or other written record showing clearly the nature and items covered by each check or other order.

(3) Subject to approval by the Director of Agriculture, the commission may invest moneys the commission collects or receives. Investments the commission makes are:

(a) Limited to investments described in ORS 294.035;

(b) Subject to the investments maturity date limitations described in ORS 294.135; and

(4) Interest earned from any moneys the commission invests under subsection (3) of this section is available to the commission in a manner consistent with the commission’s annual budget.

(5) In addition to, or in lieu of, investments described in subsection (3) of this section, the commission may invest in the investment pool described in ORS 294.805. For purposes of ORS 294.805 to 294.895, the commission is a public corporation and the secretary-treasurer of the commission is the local government official. [2021 c.216 §26]

Note: See note under 571.400.

571.474 Fidelity bond; conditions on bond; payment of cost of bond. (1) A person authorized by the Oregon Hemp Commission to receive or disburse moneys under ORS 571.400 to 571.501 shall obtain a fidelity bond from the Oregon Department of Administrative Services.

(2) The bond must be in an amount equal to the maximum amount of moneys that the commission determines the person may control. The commission may establish conditions on the person’s control of moneys under this section.

(3) The commission shall pay the cost of the bond.

(4) If the person is an employee of the commission, the department shall purchase the bond and the commission shall pay the cost of the bond. [2021 c.216 §27]

Note: See note under 571.400.

571.477 Cancellation of uncollectible assessment. The Oregon Hemp Commission may cancel an uncollectible assessment consistent with ORS 293.240. Subsequent collection of debt written off under ORS 293.240 is governed by ORS 293.245. [2021 c.216 §28]

Note: See note under 571.400.

571.480 Maintenance of books, records and accounts. The Oregon Hemp Commission shall maintain accurate books, records and accounts of its dealings. The books, records and accounts of the commission must be open to inspection and audit by the Secretary of State. [2021 c.216 §29]

Note: See note under 571.400.

571.483 Oregon Hemp Commission budget; meeting requirement; annual financial statement. (1) The Oregon Hemp Commission shall adopt an annual budget, using classifications of expenditures and revenues required by ORS 291.206. The budget described in this subsection is not subject to review by the Legislative Assembly or to future modification by the Emergency Board or the Legislative Assembly.

(2)(a) The commission shall follow generally accepted accounting principles and keep financial and statistical information as necessary to completely and accurately disclose the financial operations of the commission as required by the Secretary of State.

(b) The budget must show:

(A) The estimated receipts and expenditures by or under the authority of the commission under ORS 571.400 to 571.501 for the fiscal year for which the budget is adopted; and

(B) The actual receipts and expenditures by or under the authority of the commission for the fiscal year preceding the fiscal year in which the proposed budget is prepared, and the estimated receipts and expenditures by or under the authority of the commission for the fiscal year in which the budget is prepared.

(3) Estimated receipts and expenditures for the fiscal year for which the budget is adopted must be fully itemized and be prepared and arranged clearly to show each item of receipts and expenditures. To the extent practicable, the items of receipts and expenditures must be arranged under major groups or categories that are the same as the most recent classifications of revenue and expenditures established pursuant to ORS 291.206.

(4) The budget must contain only one estimate for emergency or other expenditures that are unforeseen at the time the budget is prepared.

(5)(a) The commission shall call and hold at least one public meeting on the proposed budget. The commission shall, in determining the time and place of the meeting, consider the convenience of the majority of the producers licensed by the State Department of Agriculture.

(b) At a meeting described in this subsection, any person has the right to be heard with respect to the proposed budget.

(6) At least 14 days prior to the date of a meeting described in subsection (5) of this section, the commission shall publish notice at least once in a newspaper of general circulation in this state. The notice must include the purpose, time and place of the meeting and state that a copy of the proposed budget is available for public inspection at the place of business of the commission or other location.

(7)(a) After a budget has been adopted, the commission shall submit to the Director of Agriculture a copy of the budget and an affidavit setting forth the pertinent facts relating to the preparation and adoption of the budget. The director shall examine the budget and affidavit within 30 days of their receipt.

(b) If the director determines that the estimated receipts and expenditures conform with the authority of the commission and other requirements, and the facts set forth in the affidavit indicate the budget was lawfully prepared and adopted, the director shall certify those determinations on the copy of the budget and make the budget final.

(c) If the director determines that the budget fails to meet requirements, the director shall immediately notify the commission of the failures. The commission shall promptly take all practicable measures to remedy the failures and resubmit a copy of the budget to the director.

(d) The director shall retain the certified copy of the final budget and make the budget available for public inspection during normal business hours of the State Department of Agriculture.

(8) The commission shall:

(a) Prepare an annual financial statement of commission revenues and expenses and make the statement available for public review;

(b) Provide a copy of the annual financial statement and other required reports to the department not later than 20 days after the end of the fiscal year; and

Note: See note under 571.400.

571.486 Requirement to comply with ORS 571.483 in order to make, incur expenditure. An expenditure of moneys for a fiscal year may not be made or incurred by or under the authority of the Oregon Hemp Commission under ORS 571.400 to 571.501 unless the commission complies with ORS 571.483. [2021 c.216 §31]

Note: See note under 571.400.

571.489 Limitation on amount, purpose of expenditure. (1) Except as otherwise provided in subsection (2) of this section, an expenditure of moneys for a fiscal year may not be made or incurred by or under the authority of the Oregon Hemp Commission under ORS 571.400 to 571.501:

(a) In excess of the total amount of expenditures estimated for the fiscal year in the budget adopted for the fiscal year or in excess of the total amount of expenditures estimated for any major category in the budget adopted for the fiscal year.

(b) For any purpose different than that indicated by the major category in the budget adopted for the fiscal year.

(2) An expenditure of moneys for a fiscal year unforeseen at the time the budget is prepared may not be made or incurred by or under the authority of the commission under ORS 571.400 to 571.501 in excess of the amount of unforeseen expenditures estimated as provided in ORS 571.483. [2021 c.216 §32]

Note: See note under 571.400.

571.492 Unforeseen expenditure; fund transfer. (1) Subject to ORS 571.489 (2), expenditures of moneys for a fiscal year unforeseen at the time the Oregon Hemp Commission budget is prepared may be made or incurred by order of the commission. When an unforeseen expenditure of moneys occurs in a fiscal year, the commissioners must approve a motion for an order of a fund transfer. The motion must include:

(a) The amount and purpose of the expenditure and why the expenditure was unforeseen;

(b) A request for the certification by the Director of Agriculture of the order;

(d) The specific major category of the budget from which the funds are to be transferred.

(2) At least one copy of the order for the fund transfer must be filed in the office of the commission and made available for public inspection during normal business hours of the commission.

(3) The commission shall send the request for certification of the order for the fund transfer to the director. The director shall:

(a) Examine the request, the commission’s most recent financial statement, the minutes of the meeting at which the commissioners approved the motion to request the order and the budget to which the order relates.

(b) Certify the order if the director determines that the form of the order is in accordance with the law, that the facts set forth in the order and the budget to which the order relates indicate that the order is in accordance with the law and that the proposed unforeseen expenditure is appropriate to accomplish the goals and needs of the commission.

(A) Of a failure to comply with ORS 571.483;

(B) The final budget or the preparation or adoption of the final budget is defective; or

(4) If the director finds that the order is defective, the commission shall promptly take all practicable steps to remedy the defects.

(5) After certifying an order under this section, the director shall retain the certified copy of the order and make the copy available for public inspection during normal business hours of the State Department of Agriculture. [2021 c.216 §33]

Note: See note under 571.400.

571.495 Distribution of moneys upon abolishment of Oregon Hemp Commission. (1) Unless the Legislative Assembly orders a refund pursuant to subsection (2) of this section, if the Legislative Assembly abolishes the Oregon Hemp Commission, any moneys remaining in the possession of the abolished commission on the effective date of the abolishment are transferred to Oregon State University and are continuously appropriated to the university for research benefitting producers.

(2) The Legislative Assembly may order in an Act dissolving the commission that any moneys remaining in the possession of the abolished commission on the effective date of the abolishment be refunded on a proportional basis to the persons who paid assessments to the commission during the assessment year in which the commission was abolished. [2021 c.216 §34]

Note: See note under 571.400.

571.498 Sale of hemp considered sale in commercial channels. Any sale of hemp by a producer or processor is a sale in commercial channels for the purposes of ORS 571.501. [2021 c.216 §35]

Note: See note under 571.400.

571.501 Penalty for violation of ORS 571.400 to 571.501. Violation of any provision of ORS 571.400 to 571.501 is a Class C misdemeanor. [2021 c.216 §36]

Note: See note under 571.400.

CHRISTMAS TREE GROWERS

571.505 Definitions for ORS 571.510 to 571.580. As used in ORS 571.510 to 571.580, unless the context requires otherwise:

(1) “Acre of Christmas trees” means an acre of land upon which Christmas trees are growing at the time of application for the license required by ORS 571.525.

(2) “Christmas tree” means a cut evergreen tree:

(a) Of a marketable species;

(b) Managed to produce trees meeting U.S. No. 2 or better standards for Christmas trees as specified by the Agricultural Marketing Service of the United States Department of Agriculture; and

(c) Evidencing periodic maintenance practices of shearing or culturing, or both, for all Christmas tree species; weed and bush control and one or more of the following practices: Basal pruning, fertilization, insect and disease control, stump culture, soil cultivation and irrigation.

(3) “Dealer” means a person who purchases Christmas trees for resale.

(4) “Department” means the State Department of Agriculture.

(5) “Grower” means any person who grows Christmas trees for sale.

(6) “Natural timber stand” means any site where Christmas trees are growing with a spacing greater than 9.5 feet by 9 feet.

(7) “Sell” or “sale” means to offer or hold for the purpose of sale, or to solicit orders for sale or to deliver, distribute, exchange, furnish or supply. [1985 c.197 §1; 1989 c.561 §1]

571.510 Policy; department to maintain Christmas tree service; duties. (1) The Legislative Assembly finds and declares that the propagation and raising of Christmas trees is a silvicultural and agricultural pursuit that should be regulated and assisted by the State Department of Agriculture. A Christmas tree service shall be maintained within the department for the purpose of carrying out and enforcing the provisions of ORS 571.505 to 571.580.

(2) The department is authorized to:

(a) Inspect the Christmas tree stock of growers.

(b) Issue certificates and permits and check the license and licensing of persons required to be licensed by ORS 571.505 to 571.580.

(d) Disseminate information among growers relative to treatment of Christmas tree stock for both prevention and elimination of attacks by plant pests and diseases.

(e) Carry out any other duties or responsibilities which are of service to the Christmas tree industry or which may be necessary for the protection thereof. [1985 c.197 §2; 1989 c.561 §2]

571.515 State Christmas Tree Advisory Committee. (1) In order that there may be the closest contact between the State Department of Agriculture and the problems of the Christmas tree industry, there hereby is created a State Christmas Tree Advisory Committee, which shall consist of six members appointed by the Director of Agriculture. The director, as far as practicable, shall make appointments so that all areas of the state are represented on the committee.

(2) The term of each member shall be for three years, from the date of appointment. A member shall continue to serve until a successor is appointed and qualifies. Vacancies in office shall be filled by appointment for the unexpired term. An individual is not eligible to serve more than two consecutive terms as a member.

(3) The members of the committee are eligible for compensation and expenses as provided in ORS 292.495, to be paid from funds provided by ORS 571.580.

(4) The functions of the committee are to advise and counsel with the department in the administration of ORS 571.505 to 571.580.

(5) The committee shall meet at the call of the chairperson or the director. A majority of the members present at any meeting constitutes a quorum, and a majority vote of the quorum at any meeting constitutes an official act of the committee.

(6) At the first meeting in each year the committee shall select a chairperson. The Dean of the College of Agricultural Sciences, Oregon State University, and the director, or their representatives, shall be ex officio members without the right to vote. [1985 c.197 §3; 1995 c.79 §310; 2005 c.22 §389]

571.520 Exemptions from licensing requirements. ORS 571.525 and 571.530 do not apply to:

(1) Any grower owning one acre or less of Christmas trees and whose business consists only of retail sales to the ultimate consumer.

(2) Any dealer. [1985 c.197 §4; 1989 c.561 §3]

571.525 License required to operate as grower. No person shall operate as a grower without first obtaining a license therefor from the State Department of Agriculture. [1985 c.197 §5]

571.530 License application; contents; license fee. (1) Each person required to be licensed by ORS 571.525 shall apply for a license or for renewal of a license on a form furnished by the State Department of Agriculture that contains:

(a) The name and address of the applicant, the number of locations to be operated by the applicant and the addresses of those locations, and the assumed business name of the applicant;

(b) If other than an individual, a statement whether the applicant is a partnership, corporation or other organization;

(d) The type of business to be operated and, if the applicant is an agent, the principals the applicant represents.

(2) Each application for a license must be accompanied by a license fee as provided for by this section. An application is not a public record but is subject to audit and review by the department.

(3)(a) The department shall establish license fees for growers on the basis of the total number of acres of Christmas trees being grown in this state by the applicant. For the purpose of calculating the license fee, four acres of Christmas trees growing in a natural timber stand is considered the equivalent of one acre of planted Christmas trees.

(b) The department shall establish an annual license fee schedule after consultation with the State Christmas Tree Advisory Committee and after a public hearing in accordance with ORS chapter 183. The annual license fee may not exceed $110 as a basic charge and $4.50 per acre as an acreage assessment. The total license fee established pursuant to this paragraph may not exceed $7,000. [1985 c.197 §6; 1989 c.561 §4; 1999 c.59 §180; 2015 c.533 §4]

571.535 Renewal of license; rules. (1) The fees for the renewal of the annual licenses required by ORS 571.505 to 571.580 shall be paid with the application for license renewal and before July 1 of each year or before such date as may be specified by rule of the State Department of Agriculture.

(2) Failure to pay the fees when due forfeits the right to operate as a grower.

(3) Any person who has been previously licensed to grow Christmas tree stock and whose right to grow has been forfeited shall not be issued a renewal license except upon written application to the department accompanied by a sum of money equal to the regular license fee. [1985 c.197 §7; 2007 c.768 §14]

571.540 Form of license; display required. All licenses issued under ORS 571.505 to 571.580 shall:

(1) Include the date of issue.

(2) Expire on June 30, next following the date of issue, unless sooner revoked by the State Department of Agriculture.

(3) Be in the form of a certificate.

(4) Be numbered serially under the direction of the department.

571.545 License not transferable; notice of change of business organization; additional assessment for trees not subject to fee. (1) A license is personal to the applicant and may not be transferred. The licensee shall notify the State Department of Agriculture in writing if the business entity of the licensee is changed or if the members of a partnership change, whether or not the business entity name is changed.

(2) The license issued to a grower applies to the particular premises named in the license. However, if prior approval is obtained from the department, the place of business may be moved to other premises or location without the necessity of relicensing. An additional acreage assessment in accordance with ORS 571.530 shall be paid for any acres of Christmas trees not included in the license fee paid at the previous location and will be added when the business changes location. [1985 c.197 §9; 1989 c.561 §5]

571.550 Suspension, revocation or refusal of license. As provided in ORS chapter 183, the State Department of Agriculture may suspend, revoke or refuse to issue or renew the license of any person when it is satisfied that:

(1) The applicant or licensee has been guilty of fraud, deception or misrepresentation in the handling or sale of Christmas tree stock.

(2) The licensee was guilty of fraud, deception or misrepresentation in the procurement of a license.

(3) The licensee has violated any provision of ORS 571.505 to 571.580. [1985 c.197 §10]

571.555 Issuance of shipping permit numbers. (1) The State Department of Agriculture shall issue a shipping permit number to any qualified licensee who requests or requires one. Such number shall be the same as the license number and so designated on the license.

(2) The shipping permit number shall accompany all shipments and deliveries of Christmas tree stock. [1985 c.197 §11; 1989 c.561 §6]

571.560 Inspections for pest, disease and weed control; additional inspections for special certificates. (1) The State Department of Agriculture shall inspect licensed grower’s operations as often as the department considers necessary to determine and control pest, disease and noxious weed conditions.

(2) In addition to the inspections provided in subsection (1) of this section, the department shall make such inspections as are necessary for the issuance of phytosanitary and other certificates. [1985 c.197 §12; 1989 c.561 §7]

571.565 Department to determine accuracy of acreage reporting for fee calculations. The State Department of Agriculture shall use all appropriate methods to determine the accuracy of acreage reporting to determine the license fee prescribed by ORS 571.530. [1985 c.197 §13; 1989 c.561 §8]

571.570 Substitution or transportation of uninspected Christmas tree stock. No person shall:

(1) Substitute other Christmas tree stock for Christmas tree stock covered by an inspection certificate.

(2) Transport or accept for transportation Christmas tree stock that does not carry the official inspection tag authorized by the State Department of Agriculture. [1985 c.197 §14]

571.575 Knowingly offering to sell infected or infested Christmas tree stock. (1)(a) No person shall knowingly offer to sell Christmas tree stock that is infected or infested.

(b) Unless the Christmas tree stock is held for separation or treatment under the supervision of an officer, employee or inspector of the State Department of Agriculture, no person shall advertise, display, transport, move, store or warehouse Christmas tree stock that is infected or infested.

(c) Any infected or infested Christmas tree stock may be seized in accordance with the procedures provided for in ORS 561.605 to 561.630.

(2) As used in subsection (1) of this section:

(a) “Infected” means any appearance of a disease symptom or causal agent that may, in the opinion of the department, be a menace to other Christmas tree stock or any products or properties.

(b) “Infested” means when the mature or immature form of any plant pest, including noxious weeds as defined by the department, is found in such numbers as, in the opinion of the department, to be a menace to other Christmas tree stock or any product or properties. [1985 c.197 §15]

571.580 Disposition and use of moneys received. The State Department of Agriculture shall deposit all fees paid to it under ORS 571.505 to 571.580 in the Department of Agriculture Service Fund, and such moneys are continuously appropriated to the department for the purposes of administering and enforcing ORS 571.505 to 571.580. [1985 c.197 §16]

WESTERN JUNIPER HARVESTING AND MANUFACTURING

571.600 Definitions for ORS 571.605 to 571.620. As used in ORS 571.605 to 571.620:

(1) “Business development project” has the meaning given that term in ORS 285B.050.

(2) “Western juniper” means trees of the species Juniperus occidentalis. [2015 c.636 §1]

Note: 571.600 to 571.625 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 571 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

571.605 Economic development assistance. (1) The Oregon Business Development Department shall provide economic development assistance to persons engaged in the business of western juniper harvesting or of manufacturing products from western juniper. The department may provide the economic development assistance for any western juniper harvesting or related manufacturing business development project that the department deems reasonable, including but not limited to the provision of moneys for business or infrastructure expansion and the hiring or retention of workers.

(2) The department shall provide economic development assistance under this section as either a loan or a grant. If the department provides the economic development assistance as a loan, the department shall make the loan subject to partial or full forgiveness if the borrower meets detailed performance measures. Subject to subsection (5) of this section, the department may provide both loans and grants to a person to meet business development project needs for the western juniper harvesting or related manufacturing business of the person.

(3) An application for economic development assistance under this section must:

(a) Be submitted as a loan application in a form acceptable to the department; and

(b) Contain a business development project plan.

(4)(a) The department may issue a loan under this section only if the business development project plan contained in the loan application demonstrates to the satisfaction of the department that:

(A) The project is feasible and reasonable from a practical and economic standpoint;

(B) The project is unlikely to be developed without economic development assistance from the department; and

(C) The western juniper harvesting or related manufacturing business will have a reasonable prospect of meeting performance measures required by the department.

(b) A loan made under this section may be interest-bearing or interest-free and may be secured by any assets or revenues agreed to by the department and the borrower.

(c) The department may establish detailed performance measures that, if met by the borrower, may result in all or part of the loan being forgiven. The performance measures may include, but need not be limited to, employment figures, payroll amounts, sales, limitations on expenses and the amounts of western juniper harvested or otherwise removed from lands in this state due to the business. A loan made under this section must require the borrower to repay the loan if the western juniper harvesting or related manufacturing business fails to meet required performance measures.

(5) The department may issue a grant under this section only if a loan application is submitted under subsection (3) of this section and the department determines that the repayment of a loan for a needed business development project would create an undue hardship that would impair the viability of the western juniper harvesting or related manufacturing business. The department may use a grant issued in accordance with this subsection to supplement or replace economic development assistance that the department provides as a loan under this section.

(6) Loans and grants authorized under this section shall be made from the Western Juniper Industry Fund established under ORS 571.625. Any principal and interest paid to the department by a borrower on a loan made under this section shall be deposited in the fund. [2015 c.636 §2]

Note: See note under 571.600.

571.610 Technical business assistance. The Oregon Business Development Department shall make technical business assistance available to persons engaged in, or proposing to engage in, the business of western juniper harvesting or of manufacturing products from western juniper. The department shall make the assistance available to support the creation, growth or development of a western juniper harvesting or related manufacturing business, including but not limited to assistance designed to improve business efficiency, stability, transparency and profitability. The assistance may be in standardized or customized form. The department may provide technical business assistance directly or may enter into personal service contracts for qualified providers to render the assistance. [2015 c.636 §3]

Note: See note under 571.600.

571.615 Workforce training assistance. (1) The Oregon Business Development Department shall provide, or shall partially or fully fund the provision of, workforce training assistance to persons engaged in the business of western juniper harvesting or of manufacturing products from western juniper. The department shall provide or fund the training assistance to support the growth and development of a western juniper harvesting or related manufacturing business, including but not limited to supporting business by qualifying workers in harvesting, commercial driving and milling. The training assistance may be in standardized or customized form. If the department provides training assistance under this subsection or as part of a cooperative agreement under subsection (2) of this section, the department may provide the assistance directly or may enter into personal service contracts for qualified providers to render the assistance.

(2) The department shall give preference to creating basic worker skills, but may also provide or fund training to assist in the maintenance or advancement of worker skills to ensure the viability of western juniper harvesting or related manufacturing businesses in this state. The department, the Employment Department, local governments as defined in ORS 174.116, nonprofit organizations and private associations may enter into cooperative agreements for:

(a) Identifying the projected workforce needs of western juniper harvesting or related manufacturing businesses, potential workers for those businesses and the training needs of those potential workers; and

(b) Providing workforce training assistance to meet the needs described in paragraph (a) of this subsection.

(3) Workforce training assistance described in this section must be designed to increase the likelihood that individuals in the local areas near western juniper harvesting or related manufacturing businesses will have the necessary skill sets to obtain work in those businesses. The Oregon Business Development Department may give training assistance preference to individuals in the local areas who are unemployed. [2015 c.636 §4]

Note: See note under 571.600.

571.620 Identification and mapping of marketable stands. The Institute for Natural Resources, in consultation with the State Forestry Department, the State Department of Agriculture and the State Department of Fish and Wildlife and individuals and organizations interested in management, marketing or research matters related to western juniper harvesting, shall identify and map high quality marketable stands of western juniper that can be harvested in a commercially and environmentally reasonable manner for use in manufacturing. The institute shall maximize the use of remote sensing technology to carry out the mapping and identification. To the extent practicable, the institute shall make use of information developed from other state efforts to map western juniper and associated landscape scale restoration and wildlife initiatives. The institute shall make the mapping and identification information available without charge for use by persons engaged in the business of western juniper harvesting or of manufacturing products from western juniper. The institute may periodically review and update the information. [2015 c.636 §5]

Note: See note under 571.600.

571.625 Western Juniper Industry Fund. The Western Juniper Industry Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Western Juniper Industry Fund shall be credited to the fund. The fund shall consist of any moneys appropriated, allocated, deposited or transferred to the fund by the Legislative Assembly or otherwise. Moneys in the fund are continuously appropriated to the Oregon Business Development Department for the purpose of carrying out activities under ORS 571.605, 571.610 and 571.615. Any moneys deposited in the fund for the purpose of carrying out a particular activity shall be kept in a separate subaccount of the fund and accounted for separately. [2015 c.636 §6]

Note: See note under 571.600.

GINSENG GROWERS AND DEALERS

571.650 Definitions for ORS 571.650 to 571.660. As used in ORS 571.650 to 571.660:

(1) “Cultivated ginseng” means ginseng that is growing or has been grown in tilled beds under the shade of artificial structures or under natural shade, and that is cultivated by a person.

(2) “Dealer” means a person who buys cultivated ginseng for the purpose of resale, but does not include a person who buys root of cultivated ginseng for the purpose of retail sale to consumers in the United States.

(3) “Ginseng” means any part of the plant known as American Ginseng (Panax quinquefolius L.), including plants, whole roots, essentially intact roots and root chunks and slices, but excluding root hairs, extracts, derivatives, leaves, stems, flowers and seeds.

(4) “Grower” means any person who grows and sells cultivated ginseng. [Formerly 571.350]

Note: 571.650 to 571.665 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 571 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

571.655 License required; prohibitions. (1) No person shall engage in the activity of a grower or dealer of ginseng without first having obtained a license therefor from the State Department of Agriculture.

(2) No person required by subsection (1) of this section to obtain a license shall fail to comply with this section and ORS 571.660 or any rule adopted pursuant thereto. [Formerly 571.355]

Note: See note under 571.650.

571.660 Rules; fees. In accordance with any applicable provision of ORS chapter 183, the State Department of Agriculture, by rule, shall establish a licensing system for persons who act as ginseng growers or dealers. The system shall include, but not be limited to, provisions:

(1) Prescribing the form and content of, and the times and procedures for submitting, an application for license issuance or renewal.

(2) Prescribing the term of the license and the fee for original issuance and renewal of the license in an amount that does not exceed the cost of administering the licensing system.

(3) Prescribing such certification requirements as may be necessary to promote or allow the sale of ginseng in interstate or international commerce.

(4) Establishing an advisory committee to provide assistance to the department in the administration of ORS 571.650 to 571.660. [Formerly 571.360]

Note: See note under 571.650.

571.665 Revocation, suspension or denial of or refusal to renew license; civil penalty; rules. (1) The State Department of Agriculture may revoke, suspend, deny or refuse to renew any grower or dealer a license if the department finds the person has violated any provision of ORS 571.655 or 571.660 or any rule adopted pursuant thereto.

(2) In addition to any other liability or penalty provided by law, the Director of Agriculture may impose a civil penalty on a person for violation of any provision of ORS 571.655 or 571.660 or any rule adopted pursuant thereto. The civil penalty for a first violation shall be not more than $1,000. Upon a second violation, the department may impose a civil penalty of not more than $2,000.

(3) The department shall adopt by rule a schedule establishing the amount of civil penalty that may be imposed for a particular violation.

(4) All penalties recovered under this section shall be deposited by the State Treasurer in the Department of Agriculture Service Fund. The moneys are continuously appropriated to the department for the purpose of carrying out ORS 571.655 and 571.660. [Formerly 571.365]

Note: See note under 571.650.

571.670 Disposition of fee moneys. The State Treasurer shall deposit all moneys received by the State Department of Agriculture under ORS 571.655 and 571.660 into the Department of Agriculture Service Fund. The moneys are continuously appropriated to the department for the purpose of carrying out the provisions of ORS 571.655 and 571.660. [Formerly 571.370]

Note: 571.670 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 571 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

571.990 [Repealed by 1963 c.461 §34]

PENALTIES

571.991 Penalties for ORS 571.005 to 571.230. Subject to ORS 153.022, violation of ORS 571.005 to 571.230 or rules adopted thereunder is punishable, upon conviction, by a fine of not more than $5,000. [1963 c.461 §32; 1985 c.659 §5; 1999 c.1051 §318]

571.993 Penalty for violation of ORS 571.655. Violation of ORS 571.655 is a misdemeanor. [Formerly subsection (4) of 576.991]

Note: 571.993 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 571 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

571.995 Penalties for ORS 571.525, 571.570 and 571.575. Violation of ORS 571.525, 571.570 or 571.575, or of any rules adopted pursuant thereto, is a misdemeanor. [1985 c.197 §17]

571.997 Civil penalties for ORS 571.055 and 571.525. (1) In addition to any applicable criminal penalty under ORS 571.991 or 571.995 or any other penalty, a person who violates ORS 571.055 or 571.525 is subject to a civil penalty imposed by the State Department of Agriculture. The civil penalty shall not exceed $10,000.

(2) Every violation of ORS 571.055 or 571.525 is a separate offense subject to a separate civil penalty.

(3) The department shall consult with, and seek the advice of, the State Christmas Tree Advisory Committee and the State Nursery Research and Regulatory Committee in order to:

(a) Develop one or more schedules setting the amounts of civil penalties that may be imposed for particular types of violations;

(b) Develop guidelines and policies regarding the circumstances under which civil penalties should be imposed; and

(c) At least biannually review cases to ensure that guidelines and policies developed under paragraph (b) of this subsection are being followed.

(4) The imposition of a civil penalty under this section is subject to ORS 183.745.

(5) The State Treasurer shall deposit all moneys from civil penalties recovered under this section into the Department of Agriculture Account.

(6) Moneys from civil penalties recovered under this section for a violation of ORS 571.055 are continuously appropriated to the department for the administration of nursery laws and industry projects under ORS 571.005 to 571.230.

(7) Moneys from civil penalties recovered under this section for a violation of ORS 571.525 are continuously appropriated to the department for the administration of Christmas tree laws and industry projects under ORS 571.510 to 571.580. [1999 c.390 §6]

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