Issuance of license to use grade designation
grading by milk hauler
facility inspections
The State Department of Agriculture shall issue a license to use a grade designation to any person who:
Makes written application for a license on forms provided by the department;
Pays the designated license fee;
Is engaged in the business of producing or distributing fluid milk; and
Meets the requirements of the particular grade designation for which application is made.
If a person carries on the activities of a producer and a producer-distributor, the person must obtain a separate license for each of those activities.
Licenses issued under this section shall be personal and not transferable.
Each milk hauler, milk receiver or other person who grades fluid milk as fit or unfit for processing as fluid milk due to quality, odor, flavor or wholesomeness must first obtain a license from the department authorizing that person to sample and grade fluid milk. Each applicant for a milk sampler's and grader's license shall, by written examination, demonstrate an adequate knowledge of milk sanitation as it relates to the sampling, grading and handling of fluid milk and cream for analysis. The department shall give examinations for licenses at such times and places as appears to be necessary and practicable.
Before and after issuing a license to a person as a producer, producer-distributor, distributor or nonprocessing distributor of fluid milk, the department shall, as it deems necessary, inspect the physical facilities of the applicant's dairy, milk processing plant or distribution center and investigate other factors the department determines may relate to the production, processing or distribution of fluid milk.
Each license issued under this section expires on June 30 next following the date of its issuance unless sooner revoked and may be renewed upon application of the licensee. Each application for a license or annual renewal of a license shall be accompanied by a license fee.
The department may adopt rules establishing license fee schedules for:
Milk samplers and graders;
Producer-distributors, distributors and nonprocessing distributors; and
Producers.
The department may determine the license fee for a producer-distributor, distributor or nonprocessing distributor based upon the annual gross dollar volume of sales and services by the applicant. In establishing the amount of the license fee for an applicant under this subsection, the department shall use the annual gross dollar volume of sales and services by that applicant within Oregon during the prior calendar year or, if the applicant maintains sales and service records on a fiscal basis, the prior fiscal year. If the applicant applying for an original license or for a renewal license cannot provide the annual gross dollar volume of sales and services for a full calendar year, the department shall base the fee on estimated annual gross sales and services by the applicant. If an applicant whose previous year's fee was determined using an estimated gross sales and services figure applies for renewal of that license, the fee for the previous license year shall be adjusted to reflect the actual gross dollar volume of sales and services by the applicant.
The department may determine the license fee for a producer based upon the annual gross sales by the applicant. In establishing the amount of the license fee for an applicant under this subsection, the department shall use the annual gross sales by that applicant within Oregon during the prior calendar year or, if the applicant maintains sales records on a fiscal basis, the prior fiscal year. If the applicant applying for an original license or for a renewal license cannot provide the annual gross sales for a full calendar year, the department shall base the fee on estimated annual gross sales by the applicant. If an applicant whose previous year's fee was determined using an estimated gross sales figure applies for renewal of that license, the fee for the previous license year shall be adjusted to reflect the actual gross sales by the applicant.
Except as provided in this subsection, the department may not adopt a rule under this section to establish a license fee that is more than three percent higher than the fee charged during the preceding year for a milk sampler and grader, for a producer-distributor, distributor or nonprocessing distributor having the same volume of gross sales and services or for a producer having the same volume of gross sales. When adopting a rule establishing a license fee, notwithstanding the three percent limit, the department may round the fee amount to the next higher whole dollar amount. Fee schedules adopted under this section may not change the amount of the same license fee more frequently than once each year.
A distributor or producer-distributor must obtain a license and pay license fees for each physical facility used to produce, process or distribute fluid milk. A person is not required to obtain a distributor or producer-distributor license to act as a milk hauler or to operate receiving or transfer stations in conjunction with a milk processing plant.
The department may refuse to issue or renew, or may suspend or revoke, a license for any violation of this section or ORS 621.062 (Deviation from standard of identity prohibited), 621.070 (License required to use grade designation), 621.076 (Container labeling), 621.084 (Weighing, sampling and testing fluid milk), 621.088 (Sale or possession of milk or cream to which water has been added), 621.117 (Distributor or producer-distributor may sell only milk that is pasteurized or from disease-free goats or sheep), 621.122 (Prohibitions regarding sales, pasteurization, sampling, weighing, grading and containers) or 621.259 (Pasteurization equipment) or processes or standards established under ORS 621.060 (Establishing standards of quality and identity for fluid milk) or 621.083 (Procedures and equipment for graders). [Formerly 621.075; 1967 c.254 §1; 1971 c.773 §8; 1982 s.s.1 c.4 §7; 1991 c.632 §4; 1997 c.249 §188; 1999 c.197 §12; 2005 c.735 §§9,10; 2012 c.64 §7; 2015 c.203 §21]
Note: The amendments to 621.072 (Issuance of license to use grade designation) by section 39, chapter 64, Oregon Laws 2012, become operative July 1, 2026. See section 45, chapter 64, Oregon Laws 2012, as amended by section 10, chapter 386, Oregon Laws 2019. The text that is operative on and after July 1, 2026, including amendments by section 22, chapter 203, Oregon Laws 2015, and section 4, chapter 386, Oregon Laws 2019, is set forth for the user's convenience.
621.072 (Issuance of license to use grade designation). (1) The State Department of Agriculture shall issue a license to use a grade designation to any person who:
The department may not adopt or enforce a rule under this section establishing a license fee for a milk sampler and grader that is higher than the license fee charged for the license year that began July 1, 2025, for a milk sampler and grader. The department may not adopt or enforce a rule under this section establishing a license fee for a producer-distributor, distributor or nonprocessing distributor that is higher than the license fee charged for the license year that began July 1, 2025, for a producer-distributor, distributor or nonprocessing distributor having the same volume of gross sales and services. The department may not adopt or enforce a rule under this section establishing a license fee for a producer that is higher than the license fee charged for the license year that began July 1, 2025, for a producer having the same volume of gross sales. Fee schedules adopted under this section may not change the amount of the same license fee more frequently than once each year.
The department may refuse to issue or renew, or may suspend or revoke, a license for any violation of this section or ORS 621.062 (Deviation from standard of identity prohibited), 621.070 (License required to use grade designation), 621.076 (Container labeling), 621.084 (Weighing, sampling and testing fluid milk), 621.088 (Sale or possession of milk or cream to which water has been added), 621.117 (Distributor or producer-distributor may sell only milk that is pasteurized or from disease-free goats or sheep), 621.122 (Prohibitions regarding sales, pasteurization, sampling, weighing, grading and containers) or 621.259 (Pasteurization equipment) or processes or standards established under ORS 621.060 (Establishing standards of quality and identity for fluid milk) or 621.083 (Procedures and equipment for graders).
Original Source: Section 621.072 — Issuance of license to use grade designation; grading by milk hauler; facility inspections; fees; rules, https://www.­oregonlegislature.­gov/bills_laws/ors/ors621.­html (last ac­cessed Jun. 26, 2021).