DAR File No. 42033

Agriculture and Food, Marketing and Development

Rule R65-13

Utah's Own

Notice of Proposed Rule

(New Rule)

DAR File No.: 42033
Filed: 08/18/2017 01:06:49 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The rule sets out the criteria for membership in the Utah's Own program. Additionally, it sets out the terms of use for the Utah's Own logo and explains the reasons for potential termination of membership. It also establishes a fee for membership in the program.

Summary of the rule or change:

The rule restricts membership to the Utah's Own program to businesses that grow, raise, produce, or process food or body care products within the state of Utah. It further explains the proper use of the Utah's Own logo which is made available to member of the program.

Statutory or constitutional authorization for this rule:

• Subsection 4-8-104(5)

Anticipated cost or savings to:

the state budget:

The rule includes a membership fee that has been approved by the legislature. The approved fee is $25 for new members with a $50 annual fee being charged after the first year. It is anticipated that out of the 500 current members the the fee will generate around $12,500 for the program. The next year, if membership stays the same, the program anticipates at least $27,500 from the current members and $1,000 from new companies joining the program. Currently, the program sees a growth of 40 to 60 new companies each year. The money generated by the program will stay within the program.

local governments:

The Utah's Own program is run entirely by the Department of Agriculture and Food. There is no responsibility that would involve any local government.

small businesses:

There will be a cost of $25 the first year of membership to a small business with an annual fee of $50 for the life of their membership. Due to their membership in the Utah's Own program, the member company has the opportunity to use the Utah's Own logo and participate in the program's marketing campaigns. Since 2015, the program has created over 49,000,000 impressions in its marketing campaigns. Additionally, membership entitles a company a profile on the Utah's Own website, a website created to direct shoppers to local products. This website receives thousands of visits each month.

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

The money generated from the fees will be used to promote member companies. There is a current demand for local products and the program is helping to market local companies by helping consumers locate and become familiar with these companies. Individuals who meet the criteria for membership will be subject to the same fee as any other small business and will be given the same benefits of using the Utah's Own logo and participating in the program's promotion and marketing opportunities.

Compliance costs for affected persons:

The cost of compliance is $25 for the first year and then an annual fee of $50 for as long as they would like to remain in the program.

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

The Utah's Own program provides economic opportunities to our member companies. There will be an entry fee of $25 assessed to a new business and a $50 annual fee, but the benefits of the Utah's Own program will help mitigate the impacts of the membership fee. There is increased interest across the state in buying local. The Utah's Own program taps into the interests and connects consumers with companies. The program connects companies together so that they can discuss and share concerns and ask for advice. Membership in the Utah's Own program gives permission to use the Utah's Own logo which is becoming increasingly more well known throughout the state because of the marketing campaigns and promotions of the program. Additionally, membership in the Utah's Own program provides online marketing through posting a companies profile on the Utah's Own website which is used to allow consumers to find the local products they need. This website receives thousands of visitors each month raising the visibility of the companies with profiles.

LuAnn Adams, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Office 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 kmathews@utah.gov
• Melissa Ure at the above address, by phone at 801-538-4976, by FAX at , or by Internet E-mail at mure@utah.gov

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:

10/16/2017

This rule may become effective on:

10/23/2017

Authorized by:

LuAnn Adams, Commissioner

R65. Agriculture and Food, Marketing and Development.

R65-13. Utah's Own.

R65-13-1. Authority and Purpose.

Pursuant to Subsection 4-8-104(5) of the Utah Code, this rule provides the application procedures, standards, and requirements for membership in the Utah's Own program.

 

R65-13-2. Definitions.

(1) "Department" means the Utah Department of Agriculture and Food.

(2) "Member Company" means a farm or other company that:

(a) raises, produces, prepares, or manufactures food for human consumption in Utah, or

(b) manufactures body care products using agricultural products grown or raised in Utah, and

(c) is headquartered in Utah.

(2) "Processed" means any significant change in the form or identity of a raw product.

(3) "Processor" means any person engaged within this state in the operation of receiving, grading, packaging, canning, extracting, preserving, grinding, crushing milling, or changing the form of an agricultural product for the purpose of preparing for market or marketing such product or engaged in any other activities performed for the purposes of preparing for market or marketing such product.

(4) "Program" means the Utah's Own program.

(5) "Program Mark" means the Utah's Own logo, which is trademarked by the department.

(6) "Promotion" means any written, printed, verbal or graphic representation, or combination thereof, of any product or company with the purpose of influencing consumer opinion as to the characteristics, qualities or image of the commodity, food, feed or fiber except labeling information as required by any government.

 

R68-13-3. Membership Eligibility and Application.

(1) Applicants seeking membership in the program shall submit the following to the department:

(a) a completed application form, as provided by the department;

(b) copies of required business license(s) from the applicable local municipality; and

(c) payment of the membership fee as outlined in the fee schedule approved by the legislature.

(2) To be eligible for membership in the program applicants shall meet the following qualifications:

(a) grow, raise, or produce food or food products intended for human consumption in the state;

(b) produce, prepare, or manufacture food intended for human consumption in Utah;

(c) produce or manufacture dietary supplements intended for human consumption in Utah; or

(d) produce body care products intended for human use using products produced in Utah; and

(e) be headquartered or incorporated in the state of Utah.

(3) The department may deny membership if:

(a) the applicant provides false information on the application;

(b) membership status has previously been revoked; or

(c) the applicant does not comply with all applicable laws and regulations.

(4) Membership shall be for vailed one year from the date of acceptance.

(5) Renewal shall be submitted on forms provided by the department.

(6) Program membership is nontransferable. The company must notify the department within 30 days of any change of ownership.

 

R65-13-4. Use of the Program Mark.

(1) Program members shall be given a limited right to use the program mark as prescribed by the department.

(2) Upon acceptance of program application, the department shall provide a confirmation of membership and copies of the program mark suitable for reproduction.

(3) Program members shall provide the department, prior to use of the program mark, design concepts for approval to validate compliance with the usage guidelines.

(4) The limited right to use the program mark terminates upon failure to renew membership yearly, or if membership is revoked or terminated.

 

R65-13-5. Membership Revocation and Termination.

(1) Program membership may be revoked, if the member company:

(a) no longer meets the qualifications for membership;

(b) violates any applicable statute or rule;

(c) violates the any agreements made between the department and the member company; or

(d) acts in a manner that may damage the reputation of the program.

 

KEY: Utah's Own program, membership in Utah's Own program

Date of Enactment or Last Substantive Amendment: 2017

Authorizing, and Implemented or Interpreted Law: 4-8-104(5)