81-8-901. Beef promotion and marketing -- powers and duties of department -- contract. (1) The department shall:

(a) enter into a contract with the Montana beef council to collect on behalf of the beef council an assessment of $1 for each head of Montana cattle sold as established in the national Beef Promotion and Research Act of 1985, 7 U.S.C. 2901 through 2911, also referred to as the national beef checkoff, and 7 CFR, part 1260, subpart A;

(b) adopt rules necessary for the administration of this section.

(2) (a) Except as provided in subsection (2)(b), the contract agreed to under this section between the department and the Montana beef council must include a provision that the beef council shall pay a fee, not to exceed 5% of the total checkoff funds collected by department employees and deposited in the state treasury, to reimburse the department for all expenses directly incurred through collection of the checkoff as verified by the legislative auditor during regularly scheduled financial compliance audits.

(b) The department is not obligated under this section or any other state law to contract for collection of the fee if the department's direct collection costs as verified by the legislative auditor exceed 5% of the checkoff funds collected by department employees and deposited in the state treasury.