1. (1)(a) Each producer or processor shall pay the board an assessment equal to a pro rata share, as approved by the commissioner, of expenses the board finds necessary.

   1. (b) The board shall compute the pro rata share of the expenses, up to $10 per ton of cherries, payable by a cooperative association of producers or processors based on the quantity of the product covered by the order that is distributed, sold, or shipped in commerce by the cooperative association of producers or processors.

2. (2)(a) Each producer shall deduct the assessment from the producer's gross receipt of cherries from a processor and pay the board upon sale.

   1. (b) Each processor shall pay to the board any proceeds the processor receives from the deducted portion on or before February 1 for each crop year.
3. (3) The board shall keep records of the receipt of the assessment that shall be available for public inspection upon request.
4. (4) The department may require the board to reimburse the department for any funds spent by the department in performing duties under this rule.

5. (5)(a) The board may incur expenses necessary to carry out its functions, subject to the commissioner's approval.

   1. (b) The board shall receive and disburse any funds it receives pursuant to this rule.

6. (6)(a) An accountant approved by the commissioner shall review the board's financial records once in the department's fiscal year.

   1. (b) The board shall complete the review and provide it to the department by December 31 of each year.
   2. (c) The review shall examine the receipt of assessments, 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.
   3. (d) The board shall provide copies of the review and financial statements available to producers and processors for examination after the removal of any confidential individual producer or processor information.

7. (7)(a) The board shall divide assessments made and money collected into funds for administrative, advertising, and research purposes.

   1. (b) The board may not use funds for political or lobbying activities.

8. (8)(a) If, at the end of the department's fiscal year, the assessments collected exceed the expenses incurred, the board, with the commissioner's approval, may carry over a portion of the excess into subsequent years as a reserve.

   1. (b) The reserve funds may cover any expenses authorized by this rule and necessary expenses of liquidation if the commissioner terminates the order or dissolves the board.
   2. (c) The board may refund any excess not kept in reserve proportionately to the producers or processors that paid the excess.
   3. (d) Without an additional amount reserve level approved by the commissioner, the amount held may not exceed one year's operations expenses.

9. (9)(a) Within 30 days after the board collects the assessment, the board may receive a written request for a refund from a producer objecting to the payment.

   1. (b) The board shall approve and pay each refund claim from its account.
   2. (c) The board may deny refund claims filed more than 30 days after the assessment's collection date.
   3. (d) The board shall notify each producer subject to the assessment, allowing them to request a refund.
   4. (e) The board shall notify the department each time a producer requests a refund.

KEY: promotions, marketing order, Red Tart Cherries, Sour Cherries, marketing assessments, cherry marketing order

Date of Last Change: February 11, 2026

Notice of Continuation: March 21, 2022

Authorizing, and Implemented or Interpreted Law: 4-2-103(1)(e)