Morris: The New Proposed Montana Cattle Checkoff
The Montana Cattlemen’s Association would like to provide Montana ranchers an update on the New proposed Cattle Checkoff which is making its way through the Montana Legislature as HB119. This new proposed cattle checkoff to be known as The Montana Cattle Committee will be funded by a mandatory tax of $1 per head each time cattle change ownership. It will be collected by unsalaried Brand Inspectors and Livestock Market personnel each time a Bill of Sale is sent to the Department of Livestock. This collected tax can be sent comingled with the original $1 a head National Checkoff fee that the Livestock Markets and Brand Inspectors also collect at each ownership transfer.
The plan is when these collections are sent into the Montana Department of Livestock the National Checkoff fees will be sent to the Montana Beef Council. The Montana Cattle Committee collection will be held by the Montana Department of Livestock personnel who will administer the refunds if they are requested. Refund requests must be made within 45 days of collection. The Montana Department of Livestock will be in charge of the penalties for nonpayment of this mandatory tax also. The penalties stated in HB119 are 5 percent of the total not collected plus 1 percent per each month of delayed payment. There is also mention of a $500 maximum fine that really needs to be clarified.
As stated, this tax is refundable for each transaction of 6 animals or more at one time if requested within 45 days. Five head or less per transaction will not be refundable. It also is stated in HB119 that the Department of Livestock will charge the Montana Cattle Committee for the services it provides and will provide an annual audit of all costs incurred and also indirect costs that are attributed to the program.
The Department of Livestock will also conduct the referendum. The voters in this referendum will be anyone who has sold cattle within the previous 2 years or have paid a per capita cattle tax the previous year. The Department of Livestock will charge up front for this service. The Department is in charge of verifying each voter. Passage or failure of the referendum is by a majority of the total ballots cast with NO set threshold of total votes cast. Upon passage of the referendum, The Montana Cattle Committee will be formed with 7 seats. Nominations will be sent to the Montana Governor from the 7 following organizations.
1 – The Montana Cattlemen’s Association
2 – The Montana Stockgrowers Association
3 – The Montana Livestock Auction Markets
4 – The Montana Cattlewomen
5 – The Montana Beef Council
6 – The Montana Farm Bureau Federation
7 – The Montana Farmers Union
Each group can send in any number of nominations. The Governor can then pick 7 members from this large pool of names. There is no stipulation that he fill the seats with a member from each of the 7 organizations listed. Members of the Montana Cattle Committee Board are appointed for 3-year terms. To start out 2 members will be 1 year terms, 2 members will be 2 year terms and the other 3 members will be 3 year terms. Each board member can only serve for a total of nine years.
The Montana Cattlemen’s Association Opposes HB119 for many reasons. To keep this short this is a list of 3 top reasons:
1 – Complete formation of the board by the Governor. This board can be completely built with political cronies appointed to the board.
2 – The Department of Livestock’s near total involvement. This really complicates administration and wastes Department of Livestock employees’ time.
3 – The idea that this collected tax can be sent onto national organizations to promote cattle and beef in the state. There is no mention that this will be used to promote Montana cattle and beef.
As of now HB119, The New Montana Cattle Committee Checkoff has passed the House by a slim margin. It is now entering the Senate Ag Committee probably on the 20th of February.
Anyone who doesn’t want an additional $1 state beef checkoff should e-mail and/or text legislators and ask for a no vote on this bill. You can find their phone numbers and e-mail addresses on legmt.gov/legislators/ or go to montanacattlemen.org to find the bill language and a complete list of legislators.
