Utah Admin. Code R65-5-5 - Expenses, Assessments, Collections, and Disbursement

(1)

(a) Each producer or processor shall pay the board an assessment equal to a pro rata share, as approved by the commissioner, of expenses the board finds necessary.

(b) The board shall compute the pro rata share of the expenses payable by a cooperative association of producers or processors based on the quantity of the product covered by the order that is distributed, sold, or shipped in commerce by the cooperative association of producers or processors.

(2) This assessment shall be up to $10 per ton of cherries.

(3)

(a) Each producer shall deduct the assessment from the producer's gross receipt of cherries from a processor and pay the board upon sale.

(b) Any proceeds the processor receives from the deducted portion, the processer shall pay annually to the board on or before February 1 for each crop year.

(4) The board shall keep records of the receipt of the assessment that shall be available for public inspection upon request.

(5)

(a) The commissioner or the department may require the board to reimburse the department or commissioner for any funds spent by the department or commissioner in performing duties under this rule.

(b) Reimbursement shall include only funds spent in connection with this rule.

(6)

(a) The board may incur expenses necessary to carry out its functions, subject to the commissioner's approval.

(b) The board shall receive and disburse any funds it receives pursuant to Section R65-5-5.

(7)

(a) An independent auditor shall audit the board's financial records at least once in the department's fiscal year and when the commissioner requests.

(b) The board must complete the annual audit and provide it to the department's Administrative Services Division within 180 days of the end of the department's fiscal year.

(c) The audit shall examine the receipt of assessments, the disbursement of funds, and any reimbursements, as well as a review of the board's financial documents, including bank statements, bank account reconciliations, and board meeting minutes.

(d) The board shall make copies of the audits and financial statements available to producers and processors for examination after the removal of any confidential individual producer or processor information.

(8)

(a) The board shall divide assessments made and money collected into funds for administrative, advertising, and research purposes.

(b) The board may use funds as described in Subsection 4-2-103(1)(e) and may not use funds for political or lobbying activities.

(9)

(a) If, at the end of the department's fiscal year, the assessments collected exceed the expenses incurred, the board, with the commissioner's approval, may carry over a portion of the excess into subsequent years as a reserve.

(b) The reserve funds may cover any expenses authorized by this rule and necessary expenses of liquidation if the commissioner terminates the order or dissolves the board.

(c) The board shall refund any excess not kept in reserve proportionately to the producers or processors that paid the excess.

(d) Without an additional amount reserve level approved by the commissioner, the amount held may not exceed one year's operations expenses.

(10)

(a) Within 30 days after the board collects the assessment, the board may receive a written request for a refund from a producer objecting to the payment.

(b) The board shall approve and pay each refund claim from its account.

(c) The board may deny refund claims filed more than 30 days after the assessment's collection date.

(d) The board may send a postage-paid, self-addressed postcard to each producer subject to the assessment, allowing them to request a refund by returning the postcard.

(e)

(i) If the board determines the expense to send postcards will exceed their budget, they may electronically notify each producer subject to the assessment and allow them to request a refund by responding to the email notification.

(ii) The board may verify electronic notifications through reading receipt verification processes.

(iii) Producers must provide accurate and complete email addresses to the board to allow electronic notifications.

(f) The board shall notify the department each time a producer requests a refund.

Notes

Utah Admin. Code R65-5-5

Adopted by Utah State Bulletin Number 2024-07, effective 3/26/2024