Department of Agriculture
Chapter 603
Division 47
PAYMENT FOR AGRICULTURE COMMODITIES
603-047-0200
Seed dealer Failures to Timely Make Payment; Fee
Pursuant to ORS 576.738, all producers or growers making a complaint of no payment or untimely payment must submit the complaint in writing to the department.
(1) Prior to filing a complaint of untimely or nonpayment with the department, a seed grower or producer must send a notice to the dealer of the amount owed.
(2) Unless expressly provided otherwise in a seed production contract that is authenticated by the producer and seed dealer prior to the producer planting the agricultural seed, a producer shall upon notification to the dealer of seed quality test results, indicating that the seed is eligible for sale, shall also notify a seed dealer, in writing, no later than 30 days prior to commencement of storage fees, a rate for storage fees and the date in which storage fees will commence.
(3) A written complaint must include all documents and information as required by the department and must include a fee of $50.
(a) Upon receipt of the fee and written complaint the department shall verify that the complainant has provided all information required to make a determination and request additional information from the complainant if necessary.
(b) Consistent with law, the agency may initiate an investigation to determine the validity of the complaint.
(4) Upon the department’s determination that a complaint of untimely or nonpayment is valid and correct the department shall notify the seed dealer in writing that the dealer has 30 days to pay the producer or seed grower all delinquent monies plus interest on each delinquent amount at the rate of one percent per month simple interest from the final payment date for that delinquent amount and that failure to make payment as described in the notice may result in the suspension of the seed dealer’s license.
(a) The department must notify the seed dealer of its determination consistent with ORS Chapter 183 and as described in OAR 603-047-0400, and shall serve its notice on the seed dealer and on any and all persons to whom payment is due under the contract.
(b) The complainant or respondent may challenge and offer evidence to prove or disprove the department’s notice in a contested case hearing.
(5) The Department may post a notice issued pursuant to subsection (2) above on its web page and in a newspaper of general circulation. This notice shall include the following information:
(a) The name of the seed dealer to whom the Department has issued a notice;
(b) A statement that the Department has determined as a preliminary matter that the named seed dealer owes payment to a grower/producer and the name of the grower/producer;
(c) A statement allowing any person to file a complaint as described in subsection (1) of this section with the Department within 30 days of publication of the notice.
(6) If it appears that no determination may be made that payment has not been made in accordance with the terms of a seed production contract or seed purchase contract, or that the department does not have jurisdiction over the complaint, the department shall apprise the complainant in writing of its final decision not to pursue the complaint.
(7) The complainant producer or grower shall submit to the department a payment of $150 for each notice of payment demand made to a seed dealer prior to the department’s issuance of the notice.
Statutory/Other Authority: ORS 561.190, 576.738, 576.741, 576.744, 633.660, 633.670 & 633.680
Statutes/Other Implemented: ORS 576.738, 576.741 & 574.744
History:
DOA 31-2012, f. & cert. ef. 12-21-12