N.D. Admin. Code 51-02-03-01

Current through Supplement No. 394, October, 2024
Section 51-02-03-01 - Definitions

As used in this chapter, unless the context otherwise requires:

1. "Contract services cost" means the cost paid to a contract hauler and approved by the board.

2. "Dairy farmer route" means that group of dairy farmers whose milk is hauled by a hauler to a processing plant on a regular basis.

3. "Depreciation on trucks" means original cost of the tank and truck less salvage value, divided by the economic life of the truck expressed in total miles [kilometers].

4. "Employee benefits cost" means fringe benefits such as hospitalization insurance, life insurance, pension contributions, unemployment insurance, industrial accident insurance, sick pay, vacation pay, etc.

5. "Gas, diesel fuel, oil, and lubricants cost" means those amounts actually recorded and used in bulk tank trucks on a specific producer route.

6. "General and administrative cost" means:

a. Accounting, record keeping, and clerical costs.

b. Administrative and supervision costs.

c. Miscellaneous depreciation, repair, and rental costs (shop repair equipment, fuel tanks, pumps, etc.).

d. Other miscellaneous items (as cost justified).

7. "Hauler" means:

a. A processor who provides trucking equipment necessary to haul dairy farmer's milk from farm to plant.

b. An independent businessman who owns one's own trucking equipment and who contracts directly with dairy farmers for hauling their milk from farm to plant as a contract hauler.

c. A group of dairy farmers who own their own trucking equipment and hire drivers to haul their own milk from farm to plant.

8. "Hauling rate" means the rate charged dairy farmers for hauling milk from farm to plant.

9. "Insurance, license, and tax cost" means the average cost of these items, recorded by a specific tank truck, over the most current twelve-month period.

10. "Interest" means the cost of borrowed capital.

11. "Labor cost" means salaries, wages, and payroll taxes for drivers and others employed by a hauler.

12. "Reasonable return on necessary investment" means a return on invested capital as a rate that shall be determined as equitable by the board.

13. "Rental or lease cost" means the leasing of vehicles and equipment (trucks, tanks, pumps, washing equipment, etc.) rather than owning them.

14. "Repairs and maintenance cost" means the average cost of repairs and maintenance of bulk milk tank trucks and other necessary equipment of the most recent twelve-month period.

15. "Tire cost" means the average cost of tires used on bulk milk tank trucks over the most current twelve-month period.

General Authority: NDCC 4-18.1-01, 4-18.1-05

Law Implemented: NDCC 4-18.1-05

N.D. Admin Code 51-02-03-01