OAR 603-076-0021: Grass seed price negotiation process and timeline

(1) The Planning Committee shall convene on or about February 1 each year. (2) By May 1, a cooperative bargaining association intending to participate in negotiations for the current crop year shall provide a current and accurate membership list to the department. (3) By May 1, a cooperative bargaining association intending to participate in negotiations for the current crop year shall provide documentation that grower members of the association produce production contracted seed for a seed dealer participating in price negotiations for that crop year. (4) By May 1, a seed dealer intending to participate in negotiations for the current crop year shall provide documentation of contracted seed production with members of the cooperative bargaining association. (5) By May 15, the department shall review the documentation provided as described in sections (2), (3), and (4) of this rule and notify submitters of their eligibility to participate in negotiations. (6) Data Meeting(s) (a) At least one data meeting shall be convened each year prior to negotiations; additional meetings may be held if requested by the Planning Committee or Bargaining Council. (b) Meetings will be organized by the Planning Committee and hosted by the department. (c) Data meetings shall be open to any interested individual. (d) Data meeting discussion topics may include inventory availability, crop yields, and other relevant data affecting the production or market for perennial ryegrass, annual ryegrass, and tall fescue seed. No pricing shall be discussed. (e) A data meeting may be held in-person or via teleconference at the discretion of the department. If in-person, the location will be determined by the department in consultation with the Planning Committee. Any fees associated with in-person meetings shall be paid for by the Bargaining Council as described in OAR 603-076-0021. (7) Notification to the department of members of the Bargaining Council (a) A cooperative bargaining association shall provide the department with the names of the individuals who shall represent the cooperative bargaining association on the Bargaining Council by June 1 or one week prior to the first scheduled Bargaining Council meeting, whichever is earlier. (b) A seed dealer shall provide the department with the names of the individuals who shall represent the seed dealer on the Bargaining Council by June 1 or one week prior to the first scheduled Bargaining Council meeting or one week prior to the first supervised dealer meeting, whichever is earlier. (8) Supervised Dealer Meeting(s) (a) The department may, at the request of eligible seed dealers, host one or more supervised seed dealer meetings. (b) Participants shall sign the pre-negotiation agreements prior to the first seed dealer meeting. (c) The meetings may be held in-person or via teleconference, at the discretion of the department. If in-person, the location will be determined by the department in consultation with the Planning Committee. Any fees associated with in-person meetings shall be paid for by the Bargaining Council as described in OAR 603-076-0021. (9) Negotiations (a) The Bargaining Council shall convene on or about June 25 each year. (b) Negotiations may be held in-person or via teleconference, at the discretion of the department. If in-person, the location will be determined by the department in consultation with the Planning Committee. (c) Negotiations may be held for one, two, or three grass seed kinds. (d) Pricing information shall not be shared outside the members of the Bargaining Council until the Director has approved an established price and issued a price order. (e) The proposed price may be market price. (f) The proposed price (or notification that the Bargaining Council could not agree on a proposed price) shall be submitted to the Director by the Bargaining Council within two days of the Bargaining Council agreeing to the proposed price (or agreeing that the Bargaining Council could not agree on a proposed price). (g) Fees apply as described in OAR 603-076-0021. (10) Director Review of a Proposed Price and Approval of an Established Price (a) The Bargaining Council shall submit to the Director a proposed price for annual ryegrass seed, perennial ryegrass seed, or tall fescue seed kinds within 48 hours of reaching an agreement regarding the proposed price (or proposed adjusted price). (b) The Director may request any additional information from the Bargaining Council necessary to understand and review the proposed price (or proposed adjusted price). The Bargaining Council shall provide this information within 48 hours of the Director’s request. (c) The Director may take the following actions: (A) Approve the proposed price (or proposed adjusted price) as the established price; or (B) Reject the proposed price (or proposed adjusted price) and direct the Bargaining Council to reconvene and continue their negotiations. (d) Upon approving an established price or an adjusted established price, the Director shall issue a price order, which shall include the following: (A) The established price or adjusted established price; (B) The grass seed kind and minimum standards to which the established price applies; (C) The date when the established price takes effect and its duration; (D) The name(s) of the cooperative bargaining association(s) that took part in the negotiations whose members are bound by the established price; (E) The name(s) of the seed dealers that that took part in the negotiations whose members are bound by the established price; (F) The reasons and rationale for the Director’s decision; and (G) The signature of the Director or their designee. (e) The Director shall issue the price order on or around July 15. (11) The Bargaining Council may, by consensus, determine that a proposed price cannot be agreed upon for one or more seed kinds. (a) For the purpose of this section, “consensus” means agreement between at least one-half of the cooperative bargaining association representatives to the Bargaining Council and at least one-half of the dealers on the Bargaining Council. Each seed dealer shall have one vote, regardless of how many individuals are representing that seed dealer on the Bargaining Council. (b) After notification by the Bargaining Council that a proposed price cannot be agreed upon for any of the seed kinds being negotiated, the Director shall issue a price order setting the established price as market price. (c) The Director shall issue the price order on or around July 15. (12) The Director may consider adjustments to the established price for a seed kind in the following circumstances: (a) After an emergency declaration related to the grass seed industry; (b) At the Director’s discretion; or (c) Upon written request from all members of the Bargaining Council. Written requests must include the following: (A) A justification for the request; (B) Acknowledgement that the fees described in OAR 603-076-0021 will apply; and (C) Proposed dates and times for negotiations for consideration by the Director. (d) If the Bargaining Council was unable to agree to a proposed price and the Director issues a price order as described in OAR 603-076-0020(11), no adjustments shall be considered to the established price for that seed kind. (e) An established price may only be adjusted once and adjustments shall be made prior to December 1 of the crop year. (13) Process for adjustments to the established price (a) After an emergency declaration related to the grass seed industry, the Director may invite the entities named in a price order to reconvene the Bargaining Council to discuss an adjustment to the established price. The Bargaining Council shall be reconvened only if the cooperative bargaining association and all dealers listed on the price order agree to participate in the discussion. (A) If the cooperative bargaining association and all dealers listed on the price order discuss the circumstances of an emergency declaration and determine that no adjustment to the established price is necessary, then the original price order will stand. (B) If the cooperative bargaining association and all dealers listed on the price order discuss the circumstances of the emergency declaration and determine that negotiations to adjust the established price are necessary, then negotiations shall follow the process set forth in OAR 603-076-0020(9)(b) through 603-076-0020(11). (b) At the Director's discretion, the Director may invite the entities named in a price order to reconvene the Bargaining Council to discuss an adjustment to the established price. (c) Upon review of a written request from the Bargaining Council to consider adjustments to an established price, the Director shall either: (A) Take no action to adjust the established price; or (B) Invite the Bargaining Council to reconvene to negotiate a proposed adjusted price as described in OAR 603-076-0020(b)-(g) and submit that price to the Director as described in OAR 603-076-0020(10).