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| Vilsack’s firewall recommendations |
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To ensure proper use of funds and oversight activities, Vilsack said any structuring of the NCBA that impacts the Federation of State Beef Councils must include the following firewalls:
•The Federation must be an independent organization. This requirement does not prohibit the Federation from contracting for its administrative or other services with other organizations. This requirement is consistent with the structure and administration of other checkoff programs where there is a clear distinction between policy organizations and checkoff programs.
•All funding decisions related to checkoff activities must be made only by the Federation and Cattlemen’s Beef Board, and not policy organizations.
•The Federation’s members who serve on the Beef Promotion Operating Committee are to be nominated and elected only by the Federation.
•Federation members must not vote on policy matters, nor be required to purchase a seat to a body that votes on policy. Checkoff funds cannot be used to purchase a seat in any policy organization.
•Regardless of structure, policy organizations should not be permitted to influence, determine outcomes, or vote on checkoff decisions.
•AMS has statutory and regulatory oversight of the Federation and the Board.
•Failure to implement all of these firewalls would raise serious legal concerns as to whether the restructuring complies with the provisions of the Beef Promotion Research Act and Order that established the beef checkoff program in 1985.
The act requires state beef councils to collect a $1 fee for research and promotion each time cattle are sold, but prohibits the use of funds for any type of activity to influence government policy. |
| 6/2/2010 |
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