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Oregon Bulletin

June 1, 2011

 

Department of Agriculture
Chapter 603

Rule Caption: Changes fee reimbursing the Department for statutorily required commission oversight functions; changes fee apportionment.

Adm. Order No.: DOA 9-2011

Filed with Sec. of State: 5-10-2011

Certified to be Effective: 5-10-11

Notice Publication Date: 4-1-2011

Rules Amended: 603-042-0020

Subject: Revises rule to ensure the Oregon Department of Agriculture is reimbursed for all costs of supervisory and administrative functions that the Department is required by law to perform with regard to commodity commissions. For the first time in 10 years, the fee paid by all 25 commodity commission will be increased to a total of $250,000 to cover all program costs. The rule revision also modifies the formula for apportioning the feel among the commissions. The revised formula uses an initial charge of 2.3 % of an individual commission’s annual assessment income, with adjustments to pick up the difference between the first charge and the total $250,000 fee. The revised formula sets a maximum fee per commission of $35,000. A minimum flat fee of $750 is set for commissions with $30,000 or less annual assessment income.

Rules Coordinator: Sue Gooch—(503) 986-4583

603-042-0020

Commodity Commission Fees for Commodity Commission Program

(1) Pursuant to ORS 576.320, the Department of Agriculture may collect annual fees from the commodity commissions to reimburse the Department for the supervisory and administrative functions that the Department performs according to ORS Chapters 576, 577, and 578.

(a) The Department shall consult with the Commodity Commission Oversight Program Advisory Committee related to the annual fees.

(2) The total fee assessed to the commissions shall not exceed $250,000 per fiscal year, beginning with the fee invoiced in fiscal year 2011–2012. The fee shall be used to reimburse the Department for expenses incurred in the previous fiscal year.

(3) The fees for each commission shall be determined using the assessment income as shown on the annual financial reports submitted to the Department.

(4) The total fee for each commodity commission shall be calculated as follows:

(a) First, calculate the base fee for each commission. The base fee for each commission equals 2.3% of the actual assessment income that the commission received in the fiscal year two years prior to the calculation, except that for those commissions with assessment income of $30,000 or less the base fee shall be a flat fee of $750, and except that for those commissions with assessment income exceeding $1,521,738 the base fee shall be a flat fee of $35,000.

(b) Second, calculate the first shortfall by totaling all the base fees and subtracting the result from the program’s annual operating costs which are not to exceed $250,000.

(c) Third, calculate the assessment factor for each commission. The assessment factor shall be determined by dividing each commission’s fiscal year assessment collection by the total assessment income collected from all commodity commissions. The Department shall use the assessment collection shown on each commission’s year-end financial statements from the fiscal year two years before the calculation. (For example, when calculating the fee invoiced in fiscal year 2011–12, the Department shall use the assessment shown on the 2009–10 year-end financial statement.)

(d) Fourth, calculate the shortfall portion for each commission. For commissions paying a base fee based on a percentage of its actual assessment income, the shortfall portion equals the first shortfall multiplied by the assessment factor for that commission. For commissions paying a base fee based on a flat fee, the shortfall portion is not calculated.

(e) Fifth, calculate the combined fee for each commission. The combined fee for each commission equals the base fee for that commission plus the shortfall portion for that commission.

(f) Sixth, add all the combined fees for all commissions. If the total does not equal the actual cost of the program, which is not to exceed $250,000, a second shortfall exists.

(g) Seventh, if subsequent shortfalls exist, the Department shall assess those shortfalls to each commission that is paying a base fee based on a percentage of its actual assessment income.

(5) The Department shall invoice each commission no later than November 15 each year; and the total fees shall be paid to the Department no later than December 31 of each year.

Stat. Auth.: ORS 561.190

Stats. Implemented: ORS 561, 576

Hist.: DOA 11-2000, f. & cert. ef. 4-18-00; DOA 14-2007, f. & cert. ef. 8-23-07; DOA 9-2011, f. & cert. ef. 5-10-11

Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.

2.) Copyright 2011 Oregon Secretary of State: Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

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