Oregon Statutes - Chapter 621 - Milk; Dairy Products; Substitutes - Section 621.072 - Issuance of license to use grade designation; grading by milk hauler; facility inspections; fees.

(1) The State Department of Agriculture shall issue a license to use a grade designation to any person who:

(a) Makes written application for a license on forms provided by the department;

(b) Pays the designated license fee;

(c) Is engaged in the business of producing or distributing fluid milk; and

(d) Meets the requirements of the particular grade designation for which application is made.

(2) If a person carries on the activities of a producer and a producer-distributor, the person must obtain a separate license for each of those activities. If a producer-distributor manufactures products from both grade A fluid milk and grade B fluid milk at the same premises, the producer-distributor must obtain separate licenses for grade A product manufacturing activity and grade B product manufacturing activity.

(3) Licenses issued under this section shall be personal and not transferable.

(4) Each milk hauler, milk receiver or other person who grades fluid milk as fit or unfit for processing as fluid milk due to quality, odor, flavor or wholesomeness must first obtain a license from the department authorizing that person to sample and grade fluid milk. Each applicant for a milk sampler’s and grader’s license shall, by written examination, demonstrate an adequate knowledge of milk sanitation as it relates to the sampling, grading and handling of fluid milk and cream for analysis. The department shall give examinations for licenses at such times and places as appears to be necessary and practicable.

(5) Before and after issuing a license to a person as a producer, producer-distributor, distributor or nonprocessing distributor of fluid milk, the department shall, as it deems necessary, inspect the physical facilities of the applicant’s dairy, milk processing plant or distribution center and investigate other factors the department determines may relate to the production, processing or distribution of fluid milk. The physical facilities must conform to the production, processing or distribution requirements for the fluid milk grade designation sought or held.

(6) Each license issued under this section expires on June 30 next following the date of its issuance unless sooner revoked and may be renewed upon application of the licensee. Each application for a license or annual renewal thereof shall be accompanied by a license fee.

(7) The department shall establish license fee schedules for milk samplers and graders in accordance with ORS chapter 183. A fee may not be less than $25 or more than $50.

(8) Except as provided in subsection (10) of this section, the license fees for producer-distributors, distributors and nonprocessing distributors are:

(a) $125 if the applicant’s annual gross dollar volume of sales and services is not more than $50,000;

(b) $175 if an applicant’s annual gross dollar volume of sales and services is more than $50,000 and not more than $500,000;

(c) $300 if an applicant’s annual gross dollar volume of sales and services is more than $500,000 and not more than $1 million;

(d) $450 if an applicant’s annual gross dollar volume of sales and services is more than $1 million and not more than $5 million;

(e) $600 if an applicant’s annual gross dollar volume of sales and services is more than $5 million and not more than $10 million; or

(f) $750 if an applicant’s annual gross dollar volume of sales and services is more than $10 million.

(9) Except as provided in subsection (10) of this section, the license fees for producers are:

(a) $125 if the applicant’s annual gross sales are not more than $50,000;

(b) $175 if an applicant’s annual gross sales are more than $50,000 and not more than $500,000;

(c) $300 if an applicant’s annual gross sales are more than $500,000 and not more than $1 million;

(d) $450 if an applicant’s annual gross sales are more than $1 million and not more than $5 million;

(e) $600 if an applicant’s annual gross sales are more than $5 million and not more than $10 million; or

(f) $750 if an applicant’s annual gross sales are more than $10 million.

(10) The department shall increase the license fee amounts described in subsections (8) and (9) of this section by two percent annually, rounded to the nearest whole dollar amount for assessment and collection purposes. The department shall determine each annual increase using the unrounded figure from the preceding year. The first increase in the fee amounts shall occur on July 1, 2006.

(11) In establishing the amount of the license fee for an applicant under this section, the department shall use the annual gross dollar volume of sales and services by that applicant within Oregon during the prior calendar year or, if the applicant maintains sales and service records on a fiscal basis, the prior fiscal year. If the applicant applying for an original license or for a renewal license cannot provide the annual gross dollar volume of sales and services for a full calendar year, the department shall base the fee on estimated annual gross sales and services by the applicant. If an applicant whose previous year’s fee was determined using an estimated gross sales and services figure applies for renewal of that license, the fee for the previous license year shall be adjusted to reflect the actual gross dollar volume of sales and services by the applicant.

(12) A distributor or producer-distributor must obtain a license and pay license fees as provided under subsection (8) of this section for each physical facility used to produce, process or distribute fluid milk. A person is not required to obtain a distributor or producer-distributor license to act as a milk hauler or to operate receiving or transfer stations in conjunction with a milk processing plant.

(13) The department may refuse to issue or renew, or may suspend or revoke, a license for any violation of this section or ORS 621.062, 621.070, 621.076, 621.084, 621.088, 621.117, 621.122 or 621.259 or processes or standards established under ORS 621.060 or 621.083. [Formerly 621.075; 1967 c.254 §1; 1971 c.773 §8; 1982 s.s.1 c.4 §7; 1991 c.632 §4; 1997 c.249 §188; 1999 c.197 §12; 2005 c.735 §9]

Note: The amendments to 621.072 by section 10, chapter 735, Oregon Laws 2005, become operative January 2, 2010. See section 17, chapter 735, Oregon Laws 2005. The text that is operative on and after January 2, 2010, is set forth for the user’s convenience.

621.072. (1) The State Department of Agriculture shall issue a license to use a grade designation to any person who:

(a) Makes written application for a license on forms provided by the department;

(b) Pays the designated license fee;

(c) Is engaged in the business of producing or distributing fluid milk; and

(d) Meets the requirements of the particular grade designation for which application is made.

(2) If a person carries on the activities of a producer and a producer-distributor, the person must obtain a separate license for each of those activities. If a producer-distributor manufactures products from both grade A fluid milk and grade B fluid milk at the same premises, the producer-distributor must obtain separate licenses for grade A product manufacturing activity and grade B product manufacturing activity.

(3) Licenses issued under this section shall be personal and not transferable.

(4) Each milk hauler, milk receiver or other person who grades fluid milk as fit or unfit for processing as fluid milk due to quality, odor, flavor or wholesomeness must first obtain a license from the department authorizing that person to sample and grade fluid milk. Each applicant for a milk sampler’s and grader’s license shall, by written examination, demonstrate an adequate knowledge of milk sanitation as it relates to the sampling, grading and handling of fluid milk and cream for analysis. The department shall give examinations for licenses at such times and places as appears to be necessary and practicable.

(5) Before and after issuing a license to a person as a producer, producer-distributor, distributor or nonprocessing distributor of fluid milk, the department shall, as it deems necessary, inspect the physical facilities of the applicant’s dairy, milk processing plant or distribution center and investigate other factors the department determines may relate to the production, processing or distribution of fluid milk. The physical facilities must conform to the production, processing or distribution requirements for the fluid milk grade designation sought or held.

(6) Each license issued under this section expires on June 30 next following the date of its issuance unless sooner revoked and may be renewed upon application of the licensee. Each application for a license or annual renewal thereof shall be accompanied by a license fee.

(7) The department shall establish license fee schedules for milk samplers and graders in accordance with ORS chapter 183. A fee may not be less than $25 or more than $50.

(8) The license fees for producer-distributors, distributors and nonprocessing distributors are:

(a) $135 if the applicant’s annual gross dollar volume of sales and services is not more than $50,000;

(b) $189 if an applicant’s annual gross dollar volume of sales and services is more than $50,000 and not more than $500,000;

(c) $325 if an applicant’s annual gross dollar volume of sales and services is more than $500,000 and not more than $1 million;

(d) $487 if an applicant’s annual gross dollar volume of sales and services is more than $1 million and not more than $5 million;

(e) $649 if an applicant’s annual gross dollar volume of sales and services is more than $5 million and not more than $10 million; or

(f) $812 if an applicant’s annual gross dollar volume of sales and services is more than $10 million.

(9) The license fees for producers are:

(a) $135 if the applicant’s annual gross sales are not more than $50,000;

(b) $189 if an applicant’s annual gross sales are more than $50,000 and not more than $500,000;

(c) $325 if an applicant’s annual gross sales are more than $500,000 and not more than $1 million;

(d) $487 if an applicant’s annual gross sales are more than $1 million and not more than $5 million;

(e) $649 if an applicant’s annual gross sales are more than $5 million and not more than $10 million; or

(f) $812 if an applicant’s annual gross sales are more than $10 million.

(10) In establishing the amount of the license fee for an applicant under this section, the department shall use the annual gross dollar volume of sales and services by that applicant within Oregon during the prior calendar year or, if the applicant maintains sales and service records on a fiscal basis, the prior fiscal year. If the applicant applying for an original license or for a renewal license cannot provide the annual gross dollar volume of sales and services for a full calendar year, the department shall base the fee on estimated annual gross sales and services by the applicant. If an applicant whose previous year’s fee was determined using an estimated gross sales and services figure applies for renewal of that license, the fee for the previous license year shall be adjusted to reflect the actual gross dollar volume of sales and services by the applicant.

(11) A distributor or producer-distributor must obtain a license and pay license fees as provided under subsection (8) of this section for each physical facility used to produce, process or distribute fluid milk. A person is not required to obtain a distributor or producer-distributor license to act as a milk hauler or to operate receiving or transfer stations in conjunction with a milk processing plant.

(12) The department may refuse to issue or renew, or may suspend or revoke, a license for any violation of this section or ORS 621.062, 621.070, 621.076, 621.084, 621.088, 621.117, 621.122 or 621.259 or processes or standards established under ORS 621.060 or 621.083.

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Last modified: August 7, 2008