Section R65-11-5 - Expenses - Assessments - Collection and Disbursement(1) Pursuant to Subsection 4-23-109(1) Each producer subject to this rule may pay to the board a pro rata share of expenses as the commissioner may find necessary to be incurred by the board for the functioning of the marketing order. This assessment shall constitute a personal debt of every person so assessed and shall be due and payable upon the sale of wool.(2) The pro rata shares of the expenses payable by a cooperative association of producers shall be computed based on the quantity of the product covered by the order which is distributed, sold, or shipped in commerce by a cooperative association of producers.(3) When levied, the assessment of each producer shall be deducted from the producer's gross receipt by the wool purchaser or handler.(a) Any proceeds the purchaser or handler receives from the deducted portion shall be paid at least quarterly to the board.(b) Sheep spending part of the year in Utah shall be assessed pro rata based on the time spent in Utah.(4) The board shall reimburse the commissioner for any funds that are expended by the commissioner in performing their duties, as provided in Section R65-11-4. Reimbursement includes only funds expended in connection with this rule.(5) The board may incur expenses as are necessary to carry out its functions subject to the approval of the commissioner. The board shall receive and disburse any funds received by it pursuant to Section R65-11-5.(6) Any producer who wishes a refund of their paid assessment may request the refund by notifying the board in writing within 30 days of payment of the assessment.(a) Each claim for a refund shall be approved by the board and paid from the board's account.(b) A claim for a refund is not allowed if it is filed more than 30 days after the date the assessment is collected.(c) The board shall notify the department each time a refund is requested and paid.(7) Assessments made and monies collected under this rule shall be divided into: (a) assessments and funds for administrative purposes;(b) educational purposes;(c) advertising and promotional purposes; and(d) research purposes.(i) Assessments and funds shall be used solely for the purposes for which they are collected.(ii) No funds shall be used for political or lobbying activities.(8) At the end of a fiscal year, if the funds collected are more than the expenses incurred, the board may carry over any excess portion into subsequent years as a reserve with the commissioner's approval.(a) Reserve funds may be used to cover any expenses authorized by this rule and necessary expenses of liquidation if the order is terminated or the board is dissolved.(b) Any excess not kept in reserve shall be refunded proportionately to the purchaser, handler, or producer from whom the excess was collected.(c) Without an additional reserve level approved by the commissioner, the amount held in reserve may not exceed one year's operational expenses.(9) The board shall have its financial records audited by an independent auditor at least once each fiscal year and at any time the commissioner requests. The annual audit shall be completed and provided to the department's Administrative Services Division within 180 days of the end of each fiscal year.(a) The audit shall include an examination of the receipt of funds, 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.(b) The board shall make copies of the audits and financial statements after removing any confidential individual producer or processor information that may be contained in them, available to producers and processors for examination.Utah Admin. Code R65-11-5
Amended by Utah State Bulletin Number 2023-13, effective 6/22/2023