No. 39762 (Repeal): Rule R65-3. Utah Turkey Marketing Order

(Repeal)

DAR File No.: 39762
Filed: 09/23/2015 08:13:10 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The rule establishes a marketing order for turkeys. The industry has grown to the point that they are providing for their own marketing. As such, it is no longer necessary to continue the Turkey Marketing Order.

Summary of the rule or change:

The proposed change is a complete repeal of the rule. There will no longer be a marketing order for turkeys when the rule takes effect. This will disband the Turkey Marketing Board.

State statutory or constitutional authorization for this rule:

• Subsection 4-2-2(1)(e)

Anticipated cost or savings to:

the state budget:

The repeal of this rule will disband the Turkey Marketing Board. As a result, the state will save on travel and per diem costs for the five-member board.

local governments:

Local governments had no role in the administration or enforcement of this rule. Local governments will not be affected by the repeal of this rule.

small businesses:

Turkey producers will no longer be obligated to pay the $0.08 per 100 lbs required by the Marketing Order.

persons other than small businesses, businesses, or local governmental entities:

Turkey producers will no longer be obligated to pay the $0.08 per 100 lbs required by the rule in order to facilitate the marketing of their product.

Compliance costs for affected persons:

This is a repeal of the rule. There will be no costs to the producers as they will no longer be bound by the Marketing Order. The repeal of this rule will actually lead to a savings for the small businesses, businesses, and the state.

Comments by the department head on the fiscal impact the rule may have on businesses:

The repeal of this rule does away with the Turkey Marketing Order. This would eliminate the fees that are collected by the Marketing Board. These fees will be kept by the producers and will be the producer to fund their own marketing campaigns.

LuAnn Adams, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Agriculture and Food
Marketing and Development
350 N REDWOOD RD
SALT LAKE CITY, UT 84116-3034

Direct questions regarding this rule to:

• Kathleen Mathews at the above address, by phone at 801-538-7103, by FAX at 801-538-7126, or by Internet E-mail at [e-mail]
• Scott Ericson at the above address, by phone at 801-538-7102, by FAX at 801-538-7126, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/16/2015

This rule may become effective on:

11/23/2015

Authorized by:

LuAnn Adams, Commissioner

RULE TEXT

R65. Agriculture and Food, Marketing and Development.

[R65-3. Utah Turkey Marketing Order.

R65-3-1. Authority.

A. Promulgated under authority of Section 4-2-2(1)(e).

B. The Commissioner of Agriculture and Food finds, after a study of information available and by request of the industry that it is in the public interest to establish a marketing order to improve conditions in the turkey producing industry. The Commissioner finds that the issuance of this marketing order is approved and favored by at least 50 percent of the producers and handlers voting on the referendum representing not less than two-thirds of the turkey production for the State of Utah during the calendar year. It is therefore ordered by the Commissioner, acting by the authority vested in him, that an Order be established to assure an effective and coordinated program to maintain and expand the Utah turkey industry's market position, and that the producers shall be subject to the terms and provisions of the Order.

 

R65-3-2. Definition of Terms.

A. "Commissioner" means the Commissioner of Agriculture and Food of the State of Utah.

B. "Person" means an individual, partnership, corporation, association, legal representative, or any organized group of individuals.

C. "Turkeys" means turkey eggs, turkey poults, breeder hens, and turkeys.

D. "Producer" means any person in this state in the business of producing or causing to be produced turkeys for market, provided producers shall not include producers who sell turkeys direct to the consumer which they themselves have produced.

E. "Handler" means any person engaged in the operation of selling, marketing, or distributing turkeys which are produced in Utah; but no rule under this Act shall apply to the sale of such turkeys to the ultimate consumer.

 

R65-3-3. Board.

A. A Board of Control is hereby established consisting of five members, two of whom shall be handlers, to carry out the provisions of this marketing order.

B. The original members of the Board of Control shall be selected by the Commissioner from names submitted by the industry.

C. Successors to original members shall be appointed by the Commissioner from names submitted by the industry. One grower member and one handler member shall be appointed in February of 1981 for a period of three years. Two grower members and one handler member shall be appointed in February of 1981 for a term of four years.

D. Members of the Board shall only succeed themselves once and not serve on the Board for more than eight consecutive years.

E. The officers of the Board shall be selected from the five Board members at their first meeting after reorganization. The officers shall consist of a Chairman and a Vice Chairman, to be elected yearly by the members of the Board. In the event of a vacancy or unfilled office; it shall be filled through a board election as soon as practical and shall be for the remainder of the unexpired term.

F. The Board shall exercise the following functions, powers and duties:

1. to receive and expend funds collected for the benefit of Utah turkey production,

2. to cooperate with any local, state or national organization engaged in activities similar to those of the Turkey Marketing Board,

3. to conduct advertising programs to increase the consumption of Utah produced turkeys where and when possible, and

4. to conduct research projects to improve the profit potential of the Utah turkey industry.

5. Financial reports will be made available annually for the Board and members of the industry.

G. No member of such Board shall receive a salary, but each shall be entitled to actual expenses incurred while engaged in performing the duties herein authorized in accordance with Sections 63A-3-106 and 63A-3-107.

H. All decisions of the Board of Control shall be by a majority vote of those present.

I. No member of the Board, nor any employee of the Board, shall be deemed responsible individually in any way whatsoever to any producer, distributor, handler, processor, or any other person, for errors of judgment, mistakes, or other acts, either of commission or omission of principal, agent, person, or employee, except for his own individual acts of dishonesty or crime. No such person or employee shall be held responsible individually for any act or omission of any other member of the Board. The liability of the members of such Board shall be several and not joint, and no member shall be liable for the default of any other member.

J. Attendance of three members at a duly called meeting shall constitute a quorum for the transaction of official business.

 

R65-3-4. Provision of this Order.

A. This order provides for:

1. Uniform grading and inspection of turkeys sold or offered for sale by producers or handlers and for the establishment of grading turkeys in accordance with such grading standards so established. Such grading standards shall not be established below any minimum standards now prescribed by law for this state.

2. Advertising and sales promotion to create new or larger markets for turkeys grown in Utah, provided that any such plan shall be directed towards increasing the sale of such commodity without reference to a particular brand or trade name. Provided further, that no advertising or sales promotion program shall be authorized which shall make use of false or unwarranted claims in behalf of the product covered by this Order, or disparage the quality, value, sale or use of any other agricultural commodity.

3. The labeling, marking, or branding of turkeys provided that such labeling, marking or branding, does not conflict with any rules of the Commissioner or laws of the State of Utah.

4. Conducting research projects and experiments for the purpose of improving the quality, size, and health and general condition of the turkey industry and for the purpose of protecting the health of the people of the State.

5. The Board of Control to cooperate with any other state or federal agency whose activities may be deemed beneficial to the purposes of this Order.

B. Expenses - Assessments - Collection and Disbursement.

1. Each handler subject to this Order shall pay to the Board of Control such handler's pro rata share (as approved by the Commissioner) of such expenses as the Commissioner may find will necessarily be incurred by the Board for the maintenance and functioning of said Board. The pro rata share of the expenses payable by a cooperative association of producers shall be computed on the basis of the quantity of the product covered by the Order which is distributed, sold, or shipped by such cooperative association of producers. The Board may maintain in its own name, or in the name of its members, a suit against any handler, subject to this Order, for the collection of such handler's pro rata share of expenses.

a. Such handler's assessment shall be approved by the Commissioner and the industry.

b. This assessment shall be set at $.08 per hundred weight of processed bird.

2. The Board is authorized to incur such expenses as are necessary to carry out its functions subject to the approval of the Commissioner. The Board shall receive and disperse all funds pursuant to R65-3-5. Any funds remaining at the end of any year over and above the necessary expenses of said Board of Control may be divided among all persons from whom such funds were collected, or, at the discretion of the Board, such amounts may be applied to the necessary expenses of the Board for the continuation of its program during the next succeeding year, and in such case the Board shall credit all persons from whom such funds were collected with their proper proportions thereof.

3. The assessment of each producer shall be deducted from the producer's gross receipt by the dealer or producer-handler. All proceeds from the deducted portion shall be paid at least quarterly to the Board upon request of the Board.

4. The Board shall retain records of the receipt of the assessment which will be available for public inspection upon request.

5. The Board of Control is required to reimburse the Commissioner for any funds as are expended by the Commissioner in performing his duties, as provided in this Order. Such reimbursement to include only funds actually expended in connection with this Order.

 

R65-3-5. Division of Funds.

Assessments made and monies collected under the provisions of this Order shall be divided into assessments and funds for

A. administrative purposes,

B. advertising and promotional purposes, and

C. research purposes. Such assessments and funds shall be used solely for the purposes for which they are collected; provided, that funds remaining at the end of any year may be used in the succeeding year.

 

R65-3-6. Refund.

Any producer who wishes a refund of their assessments may receive such by notifying the Board in writing of their request at the end of each calendar year.

 

R65-3-7. Complaints of Violations.

Complaints of violation shall be handled by the responsible legal agencies and shall be enforced in the civil courts of the State.

 

R65-3-8. Termination of Order.

The Commissioner may terminate this Marketing Order at such time as he may determine there is no longer an industry need for such order. This order shall be reviewed or amended at least every 5 years by the industry, Subsection 4-2-2(3)(a). A referendum vote may be called at the request of the producers through a petition of 40 percent of the producers.

 

KEY: promotions

Date of Enactment or Last Substantive Amendment: 1987

Notice of Continuation: September 8, 2014

Authorizing, and Implemented or Interpreted Law: 4-2-2(1)(e) ]

 

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