ORS 621.072
Issuance of license to use grade designation

  • grading by milk hauler
  • facility inspections
  • fees
  • rules

(1)

The State Department of Agriculture shall issue a license to use a grade designation to any person who:

(a)

Makes written application for a license on forms provided by the department;

(b)

Pays the designated license fee;

(c)

Is engaged in the business of producing or distributing fluid milk; and

(d)

Meets the requirements of the particular grade designation for which application is made.

(2)

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.

(3)

Licenses issued under this section shall be personal and not transferable.

(4)

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.

(5)

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.

(6)

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.

(7)

The department may adopt rules establishing license fee schedules for:

(a)

Milk samplers and graders;

(b)

Producer-distributors, distributors and nonprocessing distributors; and

(c)

Producers.

(8)

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.

(9)

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.

(10)

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.

(11)

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.

(12)

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:

(a)

Makes written application for a license on forms provided by the department;

(b)

Pays the designated license fee;

(c)

Is engaged in the business of producing or distributing fluid milk; and

(d)

Meets the requirements of the particular grade designation for which application is made.

(2)

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.

(3)

Licenses issued under this section shall be personal and not transferable.

(4)

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.

(5)

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.

(6)

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.

(7)

The department may adopt rules establishing license fee schedules for:

(a)

Milk samplers and graders;

(b)

Producer-distributors, distributors and nonprocessing distributors; and

(c)

Producers.

(8)

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.

(9)

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.

(10)

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.

(11)

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.

(12)

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).

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.

621.003
Definitions
621.010
Restraining violations
621.012
Exception for small-scale on-farm sales
621.015
Disposition of license fees
621.018
Entry and use of fluid milk produced outside state
621.056
Employment of grader
621.057
Record of grade of milk
621.058
Milk, fluid milk and dairy product grades, standards, safety and marketability
621.059
Definitions and standards of identity for cheese
621.060
Establishing standards of quality and identity for fluid milk
621.062
Deviation from standard of identity prohibited
621.070
License required to use grade designation
621.072
Issuance of license to use grade designation
621.073
Suspension of grade use privilege
621.076
Container labeling
621.078
Additional users of milk processing plant
621.083
Procedures and equipment for graders
621.084
Weighing, sampling and testing fluid milk
621.088
Sale or possession of milk or cream to which water has been added
621.092
Right of producer to be present at weighing, sampling or testing and to have own tests made
621.093
Liability of licensee for inaccurate weighing, sampling, testing or recording
621.094
Authority of department to take charge of weighing, sampling and testing upon noncompliance
621.096
Regulations regarding weighing, sampling and testing
621.116
Prohibition against retail sale of unpasteurized milk from cows
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
621.124
Milk not to be sold if from diseased animals or from animals that have not been tested or retested for brucellosis
621.161
Operation of dairy products plant without license prohibited
621.166
Application for dairy products plant license
621.169
Additional users of dairy products plant
621.171
Issuance of license
621.176
Standards of construction for plants and facilities
621.181
Standards of sanitation for operation of plants and facilities
621.183
Prohibition against operating plant or facility that does not meet standards
621.193
Standards for farm bulk storage facilities
621.198
Prohibition against use or dealing with user of nonstandard bulk storage facilities
621.203
Condemnation of unfit container and its contents
621.207
Prohibition against unauthorized removal of condemnation tag or marking or use of container or its contents
621.224
Bacterial standards
621.226
Condemnation of unlawful milk, cream, dairy product or fluid milk
621.259
Pasteurization equipment
621.261
Regulations regarding equipment used in pasteurization process
621.266
Pasteurizer operator license
621.276
Licensees to show knowledge of and ability to comply with changes in laws or regulations
621.281
Suspension or revocation of licenses issued under ORS 621.266
621.297
Certification of milk and dairy product testing laboratories
621.300
Use of Ring Test or Whey Test for brucellosis
621.311
Definitions and standards of identity for frozen desserts
621.320
Labeling requirements for frozen desserts
621.335
Licenses to make and sell frozen desserts at wholesale
621.340
Selling frozen dessert with excessive bacteria count prohibited
621.345
Sale or offering for sale of nonconforming product prohibited
621.368
Revocation of licenses
621.369
Possession of frozen dessert or frozen dessert mix as prima facie evidence of intent to sell
621.405
Definitions and standards for condensed or evaporated milk
621.410
Requisites of milk used in manufacture of condensed or evaporated milk
621.418
Standards for imitation milk products
621.435
Substitute or imitation dairy products
621.445
Restrictions on serving colored butter substitute in public eating place
621.720
Testing for milk fat content required
621.730
Department to provide testing
621.740
Liability for payment of fees
621.750
Sampling and testing
621.991
Criminal penalty
621.995
Civil penalties
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