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WASHINGTON - The federal government is billing a Chino slaughterhouse $67.2 million for costs associated with the largest beef recall in U.S. history, officials said Wednesday.

That dollar amount is expected to increase significantly as California and other states compile expenses associated with destroying meat that had been sent to school districts across the country as part of the National School Lunch Program.

All told, Westland/Hallmark Meat Co. could be held liable for as much as $117 million, said Craig Morris, deputy administrator for the Agricultural Marketing Service, the U.S. Department of Agriculture's branch in charge of purchasing meat for school lunches and other federal food services.

If the Chino company can't pay -- which appears likely -- taxpayers will bear the cost.

Attempts to reach Westland/Hallmark President Steve Mendell by telephone and e-mail Wednesday were unsuccessful. His attorney, former Rep. Asa Hutchinson, R-Ark., declined to comment. In an e-mail, he said he represents Mendell individually, not Westland/Hallmark.

Mendell appeared under subpoena last month at a Capitol Hill hearing, at which lawmakers questioned him about video footage showing the mistreatment of cows at his plant. The footage, captured by an undercover investigator for the Humane Society of the United States, sparked the recall of 143 million pounds of beef that Westland/Hallmark sold between March 2006 and February this year.

More than 50 million pounds went to school cafeterias as part of the lunch program, along with other federal programs. Mendell was asked at the March hearing whether he could reimburse schools for the lost meat.

"I'm not sure if that's going to be possible," he answered.

A check of U.S. bankruptcy records in the south half of California on Wednesday did not show any filings for Mendell or his company. The slaughterhouse has been closed since mid-February.

Mendell lives in a house in the Corona del Mar area of Newport Beach that has been valued at more than $4 million. He transferred ownership of the house to his wife, Carol, a few years ago, according to property records.

Recall Costs Climbing

At a hearing Wednesday before the House Appropriations Committee's agriculture subcommittee, Agricultural Marketing Service Administrator Lloyd Day told lawmakers that the agency sent a claim to Westland/Hallmark last week seeking $67.2 million, the cost of the meat the government purchased for federal programs.

Asked after the hearing whether the agency expects to receive the money, Day appeared less than certain.

"We certainly hope to," he said. "We hold them liable."

Day and Morris said the agency has taken companies to court before to force payment, with mixed results. Neither was aware of any response to the claim from Mendell or Westland/Hallmark.

Agency spokesman Billy Cox said a collections team is in place to pursue payment.

Funds from the Agriculture Department's budget have been set aside to cover the lost meat, Cox said. Any money that Westland/Hallmark paid would go to replenish those funds, he said.

About 50.3 million pounds of the Westland/Hallmark beef destined for schools and other programs was first processed into taco meat, steak fingers or other foods in various states, and at state expense.

Roughly 33 million pounds of that meat had been consumed by the time the recall was announced in February. Individual school districts then paid for the destruction of the remaining meat out of their own budgets.

In addition to paying for the lost meat, Agriculture Department officials have vowed to reimburse states for the costs of processing the beef before the recall announcement, as well as the expenses related to destroying the uneaten meat afterward. That includes transportation and storage costs.

Only three states -- New Jersey, Maryland and West Virginia -- have sent their total expense reports to the Agriculture Department, Day said.

Sandip Kaur, chief of the administration and food distribution section at the California Department of Education, said the department is still collecting reimbursement requests from about 1,300 school districts and other agencies.

So far, about 1,000 agencies have submitted requests totaling close to $1.1 million. The deadline for the state to submit its request is April 22, Kaur said.

At Wednesday's hearing, Day said the states' reimbursement claims could total $50 million.

New Requirements Possible

The USDA's Office of Inspector General is investigating how department inspectors stationed at the plant could have missed the violations caught on tape by the Humane Society employee, who worked at the plant for six weeks last fall.

The footage showed workers shoving animals with a forklift, dragging them with chains and jabbing them with electric prods. The footage also provided evidence that downer cows -- those to sick or hurt to stand -- illegally got into the food supply.

Downer animals are generally prohibited from being slaughtered for food because they are more likely to have mad cow disease or other illnesses that could be passed on to people. There have been no reports illness related to the meat.

Regulations governing plants licensed to provide meat for federal programs are more stringent than those for other commercial slaughterhouses and include an absolute rule against the use of downer animals. Currently, 18 slaughterhouses have such government contracts. An audit of all them, conducted in the wake of the recall, found problems at four, Agriculture Secretary Ed Schafer announced this week.

In light of the Westland/Hallmark case, Day testified, the agency is considering stricter requirements for companies wishing to contribute meat to federal programs. The agency will unveil an action plan in the coming weeks, he said.