October 13, 2000

Judicial Officer William G. Jensen has denied a request to reopen a case against Montana ranchers Jeanne and Steve Charter and instead found they willfully refused to pay the beef checkoff. They were ordered to pay past assessments, late payment charges and $12,000 in civil penalties within 60 days.

"Cattlemen like the idea that there is no free ride," Les McNeill, Texas cattle feeder and Cattlemen's Beef Board chairman, said of the finding. "Only a tiny percentage of beef producers try to avoid paying the checkoff, because most of us know that everybody benefits from this self-help program, so everybody should pay. We're glad to see that the judicial officer upheld this basic premise."

In his decision and order, which upheld the April 26 findings of Administrative Law Judge Dorothea A. Baker, the judicial officer wrote: "In light of the number of Respondents' (charters) violations, the willful nature of Respondents' violations, and the serious nature of Respondents' violations, I am perplexed by the small amount of the civil penalty recommended by Complainant (USDA) for each violation…despite the facts of this proceeding, which would appear to warrant a significantly higher civil penalty, I am reluctant to assess a civil penalty larger than recommended…"

The judicial officer's order calls on the charters to cease and desist failing to pay assessments due and later charges that may have accrued; pay the civil penalty of $12,000 to USDA as previously levied; and to pay past-due assessments and late-charges of $417.79 to the Montana Beef Council. All payments are due within 60 days of the charters being served with the order.

A claim by the Bakers held that National Cattlemen's Beef Association was using checkoff dollars to support its lobbying efforts, something prohibited by the Beef Act and Order. Jenson found, "Instead, the record supports a finding that the National Cattlemen's Beef Association has not used funds collected by the Cattlemen's Beef Promotion and Research Board for the purpose of influencing government policy or action in violation of (the act)."