Collections Compliance Tracking collection of the dollar-per-head

Collections Compliance Assessments Mandatory $1 per head Due whenever there is a change in ownership Regardless of age, gender or breed

Collections Compliance Assessments Exceptions Non-Producer Exemption: for cattle owned less than 10-days if assessment was collected on the first sale Organic Exemption Producer prepayment Requirement – a dollar or a document

Collections Compliance Assessments U.S. Customs collects $1-per-head or the equivalent on all imported live cattle, beef and beef products and forwards the full dollar to the Beef Board

Collections Compliance Collecting Persons The collecting person is typically the person making payment to the cattle producer who is selling cattle. This is the general rule that can be followed in most transactions. (BPRO § 1260.106 and § 1260.311) Examples include but are not limited to: Livestock Markets Dealers / Order Buyers Feedlots Packers/Processors Other Producers The seller can be the collecting person in some situations

Collections Compliance Collecting Persons Any producer marketing cattle of that producer’s own production in the form of beef or beef products shall remit the checkoff assessment. The checkoff becomes due at the time of slaughter. 1260.311 (b) State authorized brand inspectors are authorized to and shall collect assessments due as a result of the sale of cattle. 1260.311 (c) Both the buyer and seller have an obligation to make sure the beef checkoff assessment is collected and remitted. 1260.310 (c)

Collections Compliance 2 Percent Late Fees Due if remittance isn’t postmarked by the 15th of the month after the month of transaction Mandatory per the Order Neither CBB nor QSBCs have authority to waive late fees USDA has the only settlement authority

Collections Compliance QSBC Responsibilities Qualified State Beef Council (QSBC) are responsible for collecting the beef checkoff assessment in their states. Establish procedures to help ensure that assessments due are paid. Remit 50 cents per head of cattle assessed to CBB for investment into national checkoff programs.

Collections Compliance CBB Responsibilities Oversee collection of the national beef checkoff assessment 43 QSBCs, 5 non-QSBC states & imports Provide support to QSBCs Work to resolve cases of non-compliance Interface with USDA on collections issues Collection revenue analysis and forecasting

Collections Compliance Providing Support to QSBCs Regular Communications Collections Compliance Manual BCCS Assistance with Noncompliance Collections Compliance Review Collections Compliance Manual Includes: Standard Procedures Policies and Guidelines Forms

Collections Compliance Noncompliance Cases State level Most cases resolved here. Letters, visits, phone calls CBB Letters, phone calls, settlements, bond claims, etc… USDA Letters, offset program, litigation Collections and compliance policies