Caption: Changes fee reimbursing the
Department for statutorily required commission oversight functions; changes fee
Order No.: DOA 9-2011
Filed with Sec. of
Certified to be
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
Rules Coordinator: Sue Gooch—(503) 986-4583
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.