603-047-0300 Seed Dealer Financial Assurance; Rules; License Refusal; Agents As used in ORS 576.741 and this rule, unless the context or a specifically applicable definition requires otherwise. (1) "Officer” means any of the following individuals: (a) A president, vice president, secretary, treasurer or director of a corporation; (b) A general partner in a limited partnership; (c) A manager in a manager-managed limited liability company; (d) A member of a member-managed limited liability company; (e) A trustee; (f) A person or group of persons who direct or cause the direction of the management and policies of a licensed seed dealer person, whether through ownership of voting securities, by contract or otherwise. (g) “Owner” means the sole proprietor of, partner in or holder of a controlling interest in the named entity on an application for a seed dealer’s license. (2)(a) As a condition of issuing a seed dealer license under ORS 633.70, the department shall require the following financial assurance when: (b) If during the preceding year a seed dealer, owner or officer of a seed dealer’s license has received a final order suspending the dealer’s license and the final order is not withdrawn or successfully appealed, but the seed dealer has demonstrated to the satisfaction of the department that the dealer is current on all payments described in a final order, the department may issue a seed dealer license but shall require a surety bond or irrevocable letter of credit for not less than $100,000 prior to issuing or renewing a license. This bond must be maintained for a period of time not less than 5 years from the date of issuance of the new or renewed license. (3)(a) The department may refuse to issue or renew a seed dealer license to a seed dealer, owner or officer of a seed dealer, for which the license has been suspended under ORS 576.738, or may refuse to issue or renew a seed dealer license to an officer of a seed dealer at the time of an event that resulted in the license of the seed dealer being suspended, or of a person who exercised substantial control over the seed industry activities of a seed dealer at the time of an event that resulted in the license of the seed dealer being suspended under 576.738. (b) The department must notify applicant of its decision to refuse to issue or renew a seed dealer license in writing consistent with ORS Chapter 183 and as described in OAR 603-047-0400, and shall serve its notice on the applicant and on any party to the previous action resulting in suspension of the seed dealer’s license. (4) Any seed dealer or person who was an officer or agent for a seed dealer at the time of an event that resulted in the license of the seed dealer being suspended may provide evidence to the department as to why a seed dealer license should not be suspended and may include evidence; (a) That the seed dealer named in the order on suspension is current on all payments due as described in a final order issued by the Department; (b) That the person or entity making the application is not or did not exercise substantial control over the business or activities causing the suspension of the seed dealer license; or (c) That the person or entity making the application did not have actual authority to establish the performance obligations of the seed dealer under the contract at issue in any seed dealer license suspension. (5) The department may corroborate the evidence submitted by a seed dealer with any seed growers or producers who were a party to the suspension proceeding in which the seed dealer’s license was suspended. If significant disputes remain regarding the evidence submitted by applicant, the department shall refer the issue of whether the seed dealer has made satisfactory payment to an evidentiary hearing. Statutory/Other Authority: ORS 561.190, 576.738, 576.741, 576.744, 633.660, 633.670 & 633.680 Statutes/Other Implemented: ORS 576.738, 576.741 & 574.744 History: DOA 31-2012, f. & cert. ef. 12-21-12