R65.  Agriculture and Food, Marketing and Development.
R65-1.  Utah Apple Marketing Order.
R65-1-1.  Authority.
	Promulgated under authority of Subsection 4-2-103(1)(e).

R65-1-2.  Definitions 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.  "Apples" means apples produced for market.
	D.  "Producer" means any person in this State in the business of producing or causing to be produced apples for the commercial market, provided such producers shall not include producers who sell all the commodity direct to the consumer.
	E.  "Handler" means any person engaged in the operation of selling, marketing, or distributing in commerce, or affecting commerce, apples which are produced in Utah; but no rule under this Order shall apply to the sale of such apples to Retail Outlets.
	F.  "Registered" producers means a producer who has indicated that he/she wants to be included in the marketing order voting process by registering to vote in the referendum.  Registration forms may be mailed out with the ballots.
	G.  "Known" producers means a producer of a specific commodity who has been identified by the commodity group, her/himself, or a third party as being eligible to register to vote in a referendum affecting that specific commodity.

R65-1-3.  Board.
	A.  A Board of Control is hereby established consisting of seven members, two of whom shall be handlers to carry out the provisions of this order.
	B.  The original members of the Board of Control shall be selected by the Commissioner from a list of names submitted by the industry.  Two grower members and one handler shall be appointed for a period of two years - the first appointment only.  Three grower members and one handler member shall be appointed for a period of four years.  All appointments after the first year shall be for a period of four years.
	C.  Successors to original members shall be appointed by the Commissioner from names submitted by the industry.
	D.  No member of such Board shall receive a salary but each shall be entitled to his actual expenses incurred while engaged in performing his duties herein authorized in accordance with Sections 63A-3-106 and 63A-3-107.
	E.  The duties of the Board shall be administrative only and may include only the acts mentioned in this order.
	F.  A majority of the Board of Control must attend a meeting to conduct business.  All decisions of the Board of Control shall be by majority vote.
	G.  The officers of the Board shall be selected from the seven 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 by the Commissioner from a list of names submitted by the industry.
	H.  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.

R65-1-4.  Provisions of the Order.
	A.  This order provides for:
	1.  Advertising and sales promotion to create and expand the market of Utah Apples.  This shall be done without reference to brand or trade names.
	2.  Research projects and experiments for the purpose of improving the quality, size, health and general conditions of the apples grown in the State of Utah and for the purpose of protecting the health of the citizens of the State.
	3.  Uniform grading of apples sold or offered for sale by producers or handlers.  Such grading standards shall not be established below any minimum standards now prescribed by law for this State.
	4.  The Board may cooperate with any other state or federal agency whose activities may be deemed beneficial to the purpose of this Order which is to strengthen the apple businesses in the state.
	B.  Expenses - Assessments - Collection and Disbursement
	1.  Each producer or handler subject to this order shall pay to the Board of Control such producer's or handler's pro rata share of such expenses as the Commissioner may find will necessarily be incurred by the Board for the maintenance and functioning of said Board.  Each producer shall pay up to 5 cents per 40 lb. box to the Board annually.  The discretionary assessment shall be set by majority vote of the board, and approved by the Commissioner.  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 in commerce 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 or producer, subject to this Order, for the collection of such handler's or producer's pro rata share of expenses.
	2.  The Board shall retain records of the receipt of the assessment.  The records shall be audited annually by an auditor approved by the Commissioner.  Copies of the audit shall be available to any contributor upon request.
	3.  The Board of Control is required to reimburse the Commissioner for funds which 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.
	4.  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 disburse all funds received by it pursuant to paragraph 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.

R65-1-5.  Division of Funds.
	Assessments made and monies collected under 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 and provided, that no funds be used for political or lobbying activities.

R65-1-6.  Complaints for Violations - Procedure.
	Complaints for violations shall be handled by the responsible legal agencies and shall be enforced in the civil courts of the State.

R65-1-7.  Refund.
	Any producer who wishes a refund of their assessments may receive such by notifying the Board in writing of their request by December 31 for apples harvested in that harvest year.

R65-1-8.  Termination of Order.
	The Commissioner may terminate the 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 five years by the industry, Subsection 4-2-2(3)(a).  Once a year, a referendum vote may be called at the request of the producers through a petition of ten percent of the producers.

KEY:  promotions
Date of Enactment or Last Substantive Amendment:  1987
Notice of Continuation:  August 30, 2019
Authorizing, and Implemented or Interpreted Law:  4-2-103(1)(e)