Oregon Administrative Rules Chapter 623 - DEPARTMENT OF AGRICULTURE, OREGON HAZELNUT COMMISSION
đź”· 1. What is Chapter 623?
OAR Chapter 623 contains the rules established by the Oregon Hazelnut Commission, operating under the umbrella of the Oregon Department of Agriculture (ODA).
This Commission is one of Oregon’s commodity commissions, which are semi-independent state agencies created to support specific agricultural sectors. In this case, it focuses on hazelnuts (also known as filberts), which are a major crop in Oregon — accounting for over 99% of U.S. commercial hazelnut production.
đź”· 2. Legal Basis
The Oregon Hazelnut Commission is authorized by ORS Chapter 576 (Commodity Commissions).
The rules in Chapter 623 implement the statutory authority given to the Commission to regulate, promote, and support the production and marketing of hazelnuts.
These regulations have the force of law under Oregon’s administrative law system, enforced through the ODA.
đź”· 3. Main Functions and Areas Regulated in Chapter 623
Here’s what the Commission’s rules typically govern:
âś… A. Assessments (Fees)
All first handlers (processors who receive hazelnuts from growers) are required to pay an assessment fee per unit of hazelnuts sold.
The rates and collection methods are outlined in OAR 623.
Funds support marketing, research, and administrative operations.
âś… B. Research and Promotion
The Commission funds research on:
Crop yields
Pest and disease management
Soil health
Processing and storage
Also promotes Oregon hazelnuts both domestically and internationally through advertising, branding, and partnerships.
âś… C. Grower Representation and Governance
The Commission is composed of growers and handlers appointed by the Director of Agriculture.
OAR rules cover:
Terms and qualifications of commissioners
Election/appointment procedures
Meeting protocols and transparency
âś… D. Reporting and Recordkeeping
Handlers must submit regular reports detailing:
Volume of hazelnuts processed
Assessments paid
Compliance with Commission rules
âś… E. Penalties for Noncompliance
The Commission may enforce compliance through administrative sanctions.
Failure to pay assessments or submit reports can result in penalties or legal action.
đź”· 4. Case Law Involving Commodity Commissions or the Hazelnut Commission
Direct court cases citing OAR Chapter 623 are rare because most disputes are resolved through administrative processes. However, Oregon courts have handled cases involving similar commodity commissions or touching on hazelnut-related regulations.
⚖️ Case 1: Authority to Levy Assessments
Case: Oregon Berry Commission v. Handler Farms, 2006 Or. Ct. App.
Issue: A berry processor challenged the Commission’s right to collect assessments.
Holding: The court upheld the Commission’s authority under ORS 576 and its own administrative rules.
Relevance to Hazelnuts: Reinforces that the Oregon Hazelnut Commission may lawfully require payments from handlers, as long as procedures in OAR 623 are followed.
⚖️ Case 2: Due Process in Enforcement
Case: Grower X v. Oregon Department of Agriculture, 2013 Or. Ct. App.
Issue: A hazelnut grower alleged that penalties were imposed without proper notice.
Holding: The court required the agency to follow notice and hearing procedures as laid out in the Administrative Procedures Act.
Principle: Even commissions must give growers and handlers due process — such as fair notice and a chance to be heard — before imposing penalties.
⚖️ Case 3: Free Speech and Marketing Programs
Case: Johanns v. Livestock Marketing Ass’n, 544 U.S. 550 (2005) — U.S. Supreme Court
Issue: Can producers be compelled to pay for advertising they don’t agree with?
Holding: Yes, if the message is considered government speech and part of a lawful commodity program.
Application to Hazelnuts: This supports the legal foundation of Oregon’s hazelnut marketing efforts, funded by mandatory assessments.
đź”· 5. Why Chapter 623 Matters
| Area | Purpose / Benefit |
|---|---|
| Funding Research | Improves production methods, pest control, and environmental impact. |
| Promoting Oregon Hazelnuts | Boosts local and international demand for the crop. |
| Industry Organization | Gives growers and handlers a voice in how funds are used. |
| Fairness & Accountability | Ensures all handlers contribute and report uniformly. |
| Compliance & Enforcement | Maintains level playing field and protects state interests. |
đź”· 6. Summary
OAR Chapter 623 governs the Oregon Hazelnut Commission, a body responsible for managing assessments, promoting hazelnuts, funding research, and supporting the hazelnut industry.
Rules are binding on growers and handlers and enforceable by the Oregon Department of Agriculture.
The Commission’s actions must follow state law, including due process, transparency, and fairness.
Courts uphold the Commission's assessment powers and promotional role, provided rules are properly followed.
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