Delinquent Assessments Process,
Late Payment, Interest and Penalty Charges
The Concrete Masonry Checkoff Board (CMCB) will adhere to the following process to collect unpaid assessments from producers in a timely and fair manner. Penalties and fees set forth in this policy are in addition to the following discretionary actions available to the Secretary of the Department of Commerce:
15 U.S.C. § 8708 (c) (1) A person who willfully violates an order or regulation issued by the Secretary under this chapter may be assessed by the Secretary a civil penalty of not more than $5,000 for each violation.
15 U.S.C. § 8708 (c) (2) Each violation and each day during which there is a failure to comply with an order or regulation issued by the Secretary shall be considered to be a separate offense.
Delinquent Assessment Escalation Process
Whenever CMCB believes that there has been a failure to pay an assessment owed pursuant to the Concrete Masonry Products Research, Education and Promotion Act 15 USC 8701 et seq, CMCB will employ the following process:
- The CMCB will utilize its tabulation consultant to notify the manufacturer of the delinquent assessment due to CMCB through certified mail and may include an email and/or a phone call. This notification will include a statement that a failure to make payment is subject to the Late Payment Charge interest charges and penalties as set forth hereafter.
- If the manufacturer fails to respond to the 1st certified notification within 7 business days of delivery of notice, the tabulation consultant will refer the issue to the CMCB CEO, who will make a second attempt to notify the manufacturer via a certified letter and may include an email and/or a phone call.
- If the manufacturer fails to respond to the 2nd certified notification within an additional 7 business days of delivery of notice, the CEO will refer the matter to CMCB legal counsel for further collection efforts.
- The CMCB legal counsel will make a third attempt to notify the manufacturer via a certified letter and may include an email and/or a phone call.
- If the manufacturer fails to respond to the 3rd certified notification within an additional 7 business days of delivery of notice, the CMCB legal counsel will refer the non-payment to the Department of Commerce at which time it will become a public record. The Department of Commerce will utilize the federal law to the full extent possible to collect the total assessment, all penalties and interest.
- A manufacturer may dispute the claim of unpaid assessment by submitting a written statement of the reason that the claim is in error to the CMCB CEO postmarked within 7 business days of the manufacturer’s receipt of the first certified notice. The claim will be reviewed and determined by the Audit Committee. The Audit Committee may consult with the assessment exemption Task Group as it deems appropriate. If the appeal is not approved, the manufacturer is subject to all time constraints and penalties as set forth in this policy.
- Absent a determination of exclusion, all products meeting the 4-part test set forth in CMCB’s Policy Regarding Assessments and its intended Application for Exclusion are subject to assessment. Pending exclusion requests do not qualify for dispute.
- A manufacturer may request a one-time waiver of penalties and interest for a delinquent assessment payment. The manufacturer must make such a request in writing to the CMCB CEO in its response to the first certified notice and the request must be postmarked within 7 business days of its receipt of that notice. Assessments due to the CMCB must then be paid within 14 calendar days of receipt of the waiver request for the waiver to stand.
Late Payment and Interest Charges for Delinquent Assessments
- A late payment charge shall be imposed on any manufacturer who fails to make timely remittance to the Board of the total assessments for which such manufacturer is liable and/or any payment made outside of the time constraints imposed by the Act and/or 15 CFR 1500.01 et seq. Such past due payment shall be imposed on any assessments not received by 60 calendar days from the due date of the assessment quarter. This one-time late payment charge shall be equal to 10 percent of the assessments due before interest charges have accrued.
- In addition to the late payment charge, interest shall accrue on the outstanding balance, at a rate equal to the lesser of 1 1/2 percent per month or the maximum rate allowed by law in the manufacturer’s State. Interest shall also accrue on any late payment and accrued interest, and will be added to any accounts for which payment has not been received on or before the assessments due date. Such interest will continue to accrue monthly until the outstanding balance is paid to the Board.