ORS Chapter 583
Chapter 583 — MilkMarketing, Production and Distribution
2009 EDITION
MILKMARKETING, PRODUCTION AND DISTRIBUTION
AGRICULTURALMARKETING AND WAREHOUSING
583.001 Shorttitle; enforcement
583.004 Useof fees in enforcement of chapter; poundage fee under ORS 583.046 increased
583.007 Definitions
583.016 Purpose;construction
583.021 Exemptionof certain producer-handlers
583.028 Applicationof audit, pooling, equalization and quota provisions
583.046 Poundagefee on Grade A milk; hearing on increase or decrease
583.056 Penaltyfor late payment of fee; lien for unpaid fees and penalties; legal proceedings
583.076 Auditinghandlers’ records
583.086 Reviewof audit; filing additional information; when departmental findings final
583.096 Judicialreview of audit findings
583.106 Proceedingsto compel handler to make payments or produce information; appeal
583.116 Remediesafter court approval of departmental findings
583.126 Producers’complaints; handlers’ unfair practices; remedies
583.136 Temporaryinjunction against handler
583.146 Attorneyfees
583.156 Finalityof payment required under ORS 583.007 to 583.166; exceptions
583.166 Dispositionof fees
583.410 Purpose;construction
583.415 Applicationas to interstate commerce
583.425 Administrativeproceedings and orders
583.430 Jointhearings and agreements with other states and federal government
583.440 Licenserequired of handlers and producer-handlers; other licenses
583.445 Applicationfor license
583.447 Licenseform; reissuance
583.450 Denial,suspension or revocation of license
583.455 Licenseesto keep records and make reports regarding milk
583.457 Licenseeto notify department upon termination of business
583.463 Milkpurchase reports required of nonlicensed manufacturing plants
583.465 Primarymarkets
583.470 Marketareas
583.475 Referendumin market area on establishment or termination of market pool; subsequentpetition to establish pool
583.480 Qualificationsto sign petition or vote in referendum; list of qualified producers
583.485 Contentsof petition
583.490 Conductof referendum
583.500 Hearingrequired before order issued; considerations in establishing minimum prices
583.505 Ordersestablishing minimum prices for sale of milk by producers to handlers
583.507 Establishmentof basic price of Class 3 milk; rules
583.510 Poolingand equalization of milk in market areas; money withheld from producers;disposition of receipts by department; producer-handler quota
583.515 Establishmentof quota for producers in market areas; adjustments and transfers
583.516 Quotareallocation
583.517 Diversionand transportation of pooled milk
583.518 Handlerwho fails or refuses to transport pool milk in accordance with department planpenalized
583.520 Departmentto provide system for equitable payments to producers where no market poolexists; recognition of voluntary equalization program
583.525 Handlernot to purchase from producer for less than minimum price; allowable deductionsby handler; additional deductions
583.530 Prohibitedpractices
583.540 Enforcementof ORS 583.410 to 583.565
583.545 Dispositionof fees
583.560 Modificationof legal proceedings and administrative matters; department authorized tocompromise claims
583.565 Effectof termination of chapter
583.600 Prohibitssale at less than cost; determination of cost; exceptions; recordkeeping
583.610 Fees;reports on milk sales
583.620 Enforcementof ORS 583.600 to 583.630
583.630 Rulemakingunder ORS 583.600 to 583.630
583.993 Penalties
583.001Short title; enforcement. The provisions of this chapter, which shall bedesignated as the Milk Audit and Stabilization Act, are combined and are herebydeclared to be one law. The State Department of Agriculture shall enforce andcarry out the law. [1967 c.440 §9]
583.002 [1963 c.442 §28;repealed by 1967 c.440 §26]
583.004Use of fees in enforcement of chapter; poundage fee under ORS 583.046increased.(1) The fees in ORS 583.166, are continuously appropriated to the StateDepartment of Agriculture for the purpose of administering and enforcing theprovisions of this chapter.
(2)It is the intent of this section and ORS 583.545 to avoid duplication, and inlieu of requiring separate reports to be forwarded and deductions to bewithheld by first handlers to support the provisions of this chapter, tocombine the two into one deduction, payment and report. In order to providefees necessary to carry out and enforce both laws and programs, an additionalpoundage fee of not more than one cent per hundredweight on all milk is herebyauthorized and shall be deducted by first handlers and paid over to thedepartment, at the same time, in the same manner and as required and authorizedby the provisions of ORS 583.046. Subject to the limitations of ORS 583.046 (2),the total maximum poundage fee provided in ORS 583.046 is hereby increased toone and three-fourths cents per hundredweight on such milk. [1963 c.442 §9(2),(3)]
583.005 [1957 c.719 §1;repealed by 1961 c.638 §20]
583.006 [1961 c.638 §2;repealed by 1967 c.440 §1 (583.007 enacted in lieu of 583.006)]
583.007Definitions.As used in this chapter, unless the context requires otherwise:
(1)“Classification” means the classification of all Grade A and Grade B milk intoclasses according to its utilization.
(a)“Class 1 milk” includes but is not limited to Grade A and Grade B milkreceived, used or sold to others for ultimate human consumption in fluid form.
(b)“Class 2 milk” includes but is not limited to Grade A and Grade B milkreceived, used or sold to others for ultimate use in the manufacture of cottagecheese, ice cream, condensed milk and the frozen desserts as shall beprescribed by the State Department of Agriculture under this chapter.
(c)“Class 3 milk” means all the Grade A and Grade B milk received, used or sold toothers, for use other than that prescribed for Class 1 and Class 2 milk.
(d)In addition to the classifications under paragraphs (a) to (c) of thissubsection, the department under this chapter may by rule classify, within theabove classes, any Grade A or Grade B milk received, used or sold to others,that has not been defined herein.
(2)“Consumer” means any person, other than a handler, jobber or store whopurchases milk for human consumption in fluid form.
(3)“Department” means the State Department of Agriculture.
(4)“First handler” means the handler who receives Grade A or Grade B milk from aproducer, either physically or as a marketing agent, irrespective of the finalor ultimate destination of such milk.
(5)“Handler”:
(a)Means any person, partnership, corporation, association, cooperativeorganization or other entity engaged in the handling of Grade A or Grade B milkin the capacity as the operator of a fluid milk plant which processes milk inClass 1, Class 2 or Class 3 uses and who purchases or receives such milk from aproducer, or from another handler, or from the herd of the producer or handler,or
(b)Means any person, cooperative corporation or association serving as a marketingagent for producers, or
(c)Means any contract purchaser making sales of Grade A or Grade B milk to anotherhandler.
(d)Does not mean any person, partnership, corporation, association, cooperativeorganization or other entity operating exclusively a plant or establishment,purchasing or using manufacturing grade milk for manufacturing purposes only.This exception or exemption, however, does not apply if such plant orestablishment is owned by, under the control of the same management, or is apart of a fluid milk plant processing milk for human consumption.
(6)“Jobber” means a person who purchases bottled or packaged milk or milk productsfrom a handler or a producer-handler and who thereafter sells such milk or milkproducts at wholesale or retail.
(7)“Market area” means any one or more primary markets, as established under ORS583.470.
(8)“Milk” means the whole milk or cream or any constituent part thereof which isthe lacteal secretion of cows.
(a)“Grade A or Grade B milk” means all milk or cream as defined herein which meetsthe standards of identity as provided in ORS chapter 621.
(b)“Manufacturing grade milk” means all milk or cream, as defined herein, whichdoes not meet the standards of identity as provided in ORS chapter 621.
(9)“Milk product” means milk or dairy products as defined by the department underthis chapter. It may adopt the same standards and definitions, all or in part,as are established by or under the provisions of ORS chapter 621.
(10)“Primary market” means an area established under ORS 583.465.
(11)“Producer” means any person producing Grade A or Grade B milk, any portion ofwhich is sold to, or received by or used by, a licensed handler for humanconsumption in fluid form.
(12)“Producer-handler” means a person, partnership or corporation who:
(a)Operates a dairy farm which the person, partnership or corporation owns, leasesor is purchasing;
(b)Owns or is purchasing the person’s own dairy cows;
(c)Owns, or is purchasing or leasing the person’s own dairy plant of the person,partnership or corporation which the person, partnership or corporationoperates for the processing, bottling or packaging of Grade A or Grade B milk;
(d)Sells or distributes all bottled Class 1 Grade A or Grade B milk direct towholesalers, to jobbers, to consumers, to stores or to drive-in markets, butnot to licensed handlers or other producer-handlers;
(e)Sells surplus milk in excess of Class 1 sales only to a licensed handler, atClass 3 price established by the department, or to a nonlicensed manufacturingplant as manufactured milk;
(f)Confines milk processing and route distribution to milk produced by the dairyherd of the person, partnership or corporation, and receives no skim milk,including nonfat dry milk or condensed skim milk or skim milk recombined fromnonfat dry milk or condensed skim milk, or butterfat from any other source foruse in fluid milk products;
(g)Is in compliance with the provisions of this chapter or rules thereunder,including but not limited to a determination by the department that a lesseeunder paragraphs (a) and (c) of this subsection is otherwise qualified as aproducer-handler; and
(h)Notwithstanding the provisions of this subsection, may purchase, from otherlicensed handlers, packaged fluid milk products, other than whole milk, in anamount not in excess of an average of 100 pounds per day during the month.
(13)“Replacement milk” means Grade A or Grade B milk produced in one market area,thereafter processed in another market area and then returned to the market areawhere it was originally produced, for distribution or sale within such originalmarket area.
(14)“Store” means any grocery store, hotel, restaurant, soda fountain or any otherplace, establishment or business wherein milk is sold as an article of merchandiseor served and consumed on the premises. [1967 c.440 §2 (enacted in lieu of583.006); 1977 c.307 §1]
583.009 [1967 c.440 §14;repealed by 1977 c.307 §19]
583.010 [Amended by1953 c.712 §4; repealed by 1955 c.1 §1]
583.015 [1957 c.719 §3;repealed by 1961 c.638 §20]
583.016Purpose; construction. (1) Whereas, the production, sale and distributionof milk and milk products in this state are attended with conditions adverselyaffecting milk producers, handlers and consumers of milk, it is hereby declaredthat the purpose of ORS 583.007, 583.016 and 583.046 to 583.166 is to providethe assistance of the State of Oregon in maintaining an adequate supply ofhealthful milk through the state auditing of the records of handlers as theypertain to the pooling and usage of milk and the payment therefor.
(2)The provisions of ORS 583.007, 583.016 and 583.046 to 583.166 shall not beconstrued to conflict with or repeal, and are in addition to and not in lieuof, any other law of this state or any municipal ordinance relating to anyhealth or sanitary requirement, or any municipal ordinance relating to theinspection, grading or production of Grade A milk. [1961 c.638 §§1,18]
583.020 [Repealed by1955 c.1 §1]
583.021Exemption of certain producer-handlers. Notwithstanding other provisions to thecontrary, a producer-handler owning or maintaining less than 26 dairy cows, whodoes not purchase bulk, bottled or packaged milk, shall be exempt from theprovisions of this chapter. The State Department of Agriculture is authorizedto investigate the premises of any nonlicensed or licensed producer-handlerclaiming exemption as authorized in this section to verify the number of dairycows owned or maintained by such person. [1967 c.440 §6]
583.025 [1957 c.719 §4;repealed by 1961 c.638 §20]
583.026 [Subsection (1)of 1963 Replacement Part enacted as 1961 c.638 §3; subsection (2) of 1963Replacement Part enacted as last sentence of 1961 c.638 §13; repealed by 1967c.440 §26]
583.028Application of audit, pooling, equalization and quota provisions. (1)Notwithstanding other provisions of this chapter to the contrary, the followingwording and provisions relate and apply to each applicable section of lawprescribed in this section:
(a)In addition to and as a part of the provisions of ORS 583.076, the StateDepartment of Agriculture is also authorized thereunder to audit the records ofall the milk received, handled, used or sold by a handler or producer-handlerand may investigate the premises thereof to help verify the accuracy of theaudit or to confirm the receipts, production, usage or disposition of all suchmilk regardless of its source.
(b)The provisions of ORS 583.500, 583.520 and 583.530 also include, cover andapply to Class 3 milk.
(c)The prices established by the department under this chapter also apply to milksold or purchased between handlers.
(d)In ORS 583.515 (1) “quota” shall also mean a producer’s portion of the totalClass 1 sales of pool milk plus 15 percent.
(2)The provisions of subsection (1)(a) to (d) of this section are in addition toand not in lieu of the sections of law designated therein. If there is aconflict then the provisions of this section supersede the provisions of eachsuch applicable or designated section of law. [1967 c.440 §10]