H. B. 2800
(By Delegates Beach, Kelley, Buchannan, Prunty, Heck,
Riggs,
Boggs and Evans)
(Originating in the Committee on Agriculture and Natural
Resources)
[March 27, 1997]
A BILL to amend and reenact article eleven-c, chapter nineteen of
the code of West Virginia, one thousand nine hundred thirty- one, as amended, relating to the southern dairy compact;
enactment of compact; compact administrator; and, appointment
of delegation.
Be it enacted by the Legislature of West Virginia:
That article eleven c, chapter nineteen of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
enacted, to read as follows:
ARTICLE 11C. SOUTHERN DAIRY COMPACT.
§19-11C-1. Enactment of compact.
The southern dairy compact is hereby entered into on behalf of
the state of West Virginia. The southern dairy compact shall become
effective when enacted into law by at least two other states within
the compact group of states and when the consent of Congress has been obtained. The full text of the southern dairy compact is as
follows:
SOUTHERN DAIRY COMPACT
ARTICLE I. STATEMENT OF PURPOSE, FINDINGS AND DECLARATION OF
POLICY.
§1. STATEMENT OF PURPOSE, FINDINGS AND DECLARATION OF POLICY.
The purpose of this compact is to recognize the interstate
character of the southern dairy industry and the prerogative of
the states under the United States Constitution to form an
interstate commission for the southern region. The mission of the
commission is to take such steps as are necessary to assure the
continued viability of dairy farming in the south, and to assure
consumers of an adequate, local supply of pure and wholesome milk.
The participating states find and declare that the dairy
industry is an essential agricultural activity of the south. Dairy
farms, and associated suppliers, marketers, processors and
retailers, are an integral component of the region's economy.
Their ability to provide a stable, local supply of pure, wholesome
milk is a matter of great importance to the health and welfare of
the region.
The participating states further find that dairy farms are
essential and they are an integral part of the region's rural
communities. The farms preserve land for agricultural purposes and
provide needed economic stimuli for rural communities.
By entering into this compact, the participating states affirm
that their ability to regulate the price which southern dairy
farmers receive for their product is essential to the public
interest. Assurance of a fair and equitable price for dairy
farmers ensures their ability to provide milk to the market and the
vitality of the southern dairy industry, with all the associated
benefits.
Recent, dramatic price fluctuations, with a pronounced
downward trend, threaten the viability and stability of the
southern dairy region. Historically, individual state regulatory
action had been an effective emergency remedy available to farmers
confronting a distressed market. The federal order system,
implemented by the Agricultural Marketing Agreement Act of 1937,
establishes only minimum prices paid to producers for raw milk,
without preempting the power of states to regulate milk prices
above the minimum levels so established.
In today's regional dairy marketplace, cooperative, rather
than individual state action is needed to more effectively address
the market disarray. Under our constitutional system, properly
authorized states acting cooperatively may exercise more power to
regulate interstate commerce than they may assert individually
without such authority. For this reason, the participating states
invoke their authority to act in common agreement, with the consent of Congress, under the compact clause of the Constitution.
In establishing their constitutional regulatory authority over
the region's fluid milk market by this compact, the participating
states declare their purpose that this compact neither displace the
federal order system nor encourage the merging of federal orders.
Specific provisions of the compact itself set forth this basic
principle.
Designed as a flexible mechanism able to adjust to changes in
a regulated marketplace, the compact also contains a contingency
provision should the federal order system be discontinued. In that
event, the interstate commission is authorized to regulate the
marketplace in replacement of the order system. This contingent
authority does not anticipate such a change, however, and should
not be so construed. It is only provided should developments in
the market other than establishment of this compact result in
discontinuance of the order system.
ARTICLE II. DEFINITIONS AND RULES OF CONSTRUCTION.
§2. DEFINITIONS.
For the purposes of this compact, and of any supplemental or
concurring legislation enacted pursuant thereto, except as may be
otherwise required by the context:
(a) "Class I milk" means milk disposed of in fluid form or as
a fluid milk product, subject to further definition in accordance
with the principles expressed in subdivision (b) of section three.
(b) "Commission" means the Southern Dairy Compact Commission
established by this compact.
(c) "Commission marketing order" means regulations adopted by
the commission pursuant to sections nine and ten of this compact in
place of a terminated federal marketing order or state dairy
regulation. Such order may apply throughout the region or in any
part or parts thereof as defined in the regulations of the
commission. Such order may establish minimum prices for any or all
classes of milk.
(d) "Compact" means this interstate compact.
(e) "Compact over-order price" means a minimum price required
to be paid to producers for Class I milk established by the
commission in regulations adopted pursuant to sections nine and ten
of this compact, which is above the price established in federal
marketing orders or by state farm price regulation in the regulated
area. Such price may apply throughout the region or in any part or
parts thereof as defined in the regulations of the commission.
(f) "Milk" means the lacteal secretion of cows and includes
all skim, butterfat, or other constituents obtained from separation
or any other process. The term is sued in its broadest sense and
may be further defined by the commission for regulatory purposes.
(g) "Partially regulated plant" means a milk plant not located
in a regulated area but having Class I distribution within such
area. Commission regulations may exempt plants having such
distribution or receipts in amounts less than the limits defined
therein.
(h) "Participating state" means a state which has become a
party to this compact by the enactment of concurring legislation.
(i) "Pool plant" means any milk plant located in a regulated
area.
(j) "Region" means the territorial limits of the states which
are parties to this compact.
(k) "Regulated area" means any area within the region governed
by and defined in regulations establishing a compact over-order
price or commission marketing order.
(l) "State dairy regulation" means any state regulation of
dairy prices, and associated assessments, whether by statute,
marketing order or otherwise.
§3. RULES OF CONSTRUCTION.
(a) This compact shall not be construed to displace existing
federal milk marketing orders or state dairy regulation in the
region but to supplement them. In the event some or all federal
orders in the region are discontinued, the compact shall be
construed to provide the commission the option to replace them with
one or more commission marketing orders pursuant to this compact.
(b) This compact shall be construed liberally in order to
achieve the purposes and intent enunciated in section one. It is
the intent of this compact to establish a basic structure by which
the commission may achieve those purposes through the application,
adaptation and development of the regulatory techniques
historically associated with milk marketing and to afford the
commission broad flexibility to devise regulatory mechanisms to
achieve the purposes of this compact. In accordance with this
intent, the technical terms which are associated with market order
regulation and which have acquired commonly understood general
meanings are not defined herein but the commission may further
define the terms used in this compact and develop additional
concepts and define additional terms as it may find appropriate to
achieve its purposes.
ARTICLE III. COMMISSION ESTABLISHED.
§4. COMMISSION ESTABLISHED.
There is hereby created a commission to administer the
compact, composed of delegations from each state in the region.
The commission shall be known as the Southern Dairy Compact
Commission. A delegation shall include not less than three or more
than five persons. Each delegation shall include at least one
dairy farmer who is engaged in the production of milk at the time
of appointment or reappointment, and one consumer representative.
Delegation members shall be residents and voters of, and subject to
such confirmation process as is provided for in, the appointing
state. Delegation members shall serve no more than three
consecutive terms with no single term of more than four years, and
be subject to removal for cause. In all other respects, delegation
members shall serve in accordance with the laws of the state
represented. The compensation, if any, of the members of a state
delegation shall be determined and paid by each state, but their
expenses shall be paid by the commission.
§5. VOTING REQUIREMENTS.
All actions taken by the commission, except for the
establishment or termination of an over-order price or commission
marketing order, and the adoption, amendment or rescission of the
commission's by-laws, shall be by majority vote of the delegations
present. Each state delegation shall be entitled to one vote in
the conduct of the commission's affairs. Establishment or
termination of an over-order price or commission marketing order
shall require at least a two-thirds vote of the delegations
present. The establishment of a regulated area which covers all or
part of a participating state shall require also the affirmative
vote of that state's delegation. A majority of the delegations
from the participating states shall constitute a quorum for the
conduct of the commission's business.
§6. ADMINISTRATION AND MANAGEMENT.
(a) The commission shall elect annually from among the members
of the participating state delegations a chairperson, a vice- chairperson, and a treasurer. The commission shall appoint an
executive director and fix his or her duties and compensation. The
executive director shall serve at the pleasure of the commission,
and, together with the treasurer, shall be bonded in an amount
determined by the commission. The commission may establish through
its by-laws an executive committee composed of one member elected
by each delegation.
(b) The commission shall adopt by-laws for the conduct of its
business by a two-thirds vote, and shall have the power by the same
vote to amend and rescind these by-laws. The commission shall
publish its by-laws in convenient form with the appropriate agency
or officer in each of the participating states. The by-laws shall
provide for appropriate notice to the delegations of all commission
meetings and hearings and of the business to be transacted at such
meetings or hearings. Notice also shall be given to other agencies
or officers of participating states as provided by the laws of
those states.
(c) The commission shall file an annual report with the
Secretary of Agriculture of the United States, and with each of the
participating states by submitting copies to the governor, both
houses of the legislature, and the head of the state department
having responsibilities for agriculture.
(d) In addition to the powers and duties elsewhere prescribed
in this compact, the commission shall have the power --
(1) to sue and be sued in any state or federal court;
(2) to have a seal and alter the same at pleasure;
(3) to acquire, hold, and dispose of real and personal
property by gift, purchase, lease, license, or other similar
manner, for its corporate purposes;
(4) to borrow money and to issue notes, to provide for the
rights of the holders thereof and to pledge the revenue of the
commission as security therefore, subject to the provisions of
section eighteen of this compact;
(5) to appoint such officers, agents, and employees as it may
deem necessary, prescribe their powers, duties, and qualifications;
and
(6) to create and abolish such offices, employments, and
positions as it deems necessary for the purpose of the compact and
provide for the removal, term, tenure, compensation, fringe
benefits, pension, and retirement rights of its officers and
employees. The commission may also retain personal services on a
contract basis.
§7.RULEMAKING POWER.
In addition to the power to promulgate a compact over-order
price or commission marketing orders as provided by this compact,
the commission is further empowered to make and enforce such
additional rules and regulations as it deems necessary to implement
any provisions of this compact, or to effectuate in any other
respect the purpose of this compact.
ARTICLE IV. POWERS OF THE COMMISSION.
§8. POWERS TO PROMOTE REGULATORY UNIFORMITY, SIMPLICITY, AND
INTERSTATE COOPERATION.
The commission is hereby empowered to:
(a) Investigate or provide for investigations or research
projects designed to review the existing laws and regulations of
the participating states, to consider their administration and
costs, to measure their impact on the production and marketing of
milk and their effects on the shipment of milk and milk products
within the region.
(b) Study and recommend to the participating states joint or
cooperative programs for the administration of the dairy marketing
laws and regulations and to prepare estimates of cost savings and
benefits of such programs.
(c) Encourage the harmonious relationships between the various
elements in the industry for the solution of their material
problems. Conduct symposia or conferences designed to improve
industry relations, or a better understanding of problems.
(d) Prepare and release periodic reports on activities and
results of the commission's efforts to the participating states.
(e) Review the existing marketing system for milk and milk
products and recommend changes in the existing structure for
assembly and distribution of milk which may assist, improve or
promote more efficient assembly and distribution of milk.
(f) Investigate costs and charges for producing, hauling,
handling, processing, distributing, selling and for all other
services performed with respect to milk.
(g) Examine current economic forces affecting producers,
probable trends in production and consumption, the level of dairy
farm prices in relation to costs, the financial conditions of dairy
farmers, and the need for an emergency order to relieve critical
conditions on dairy farms.
§9. EQUITABLE FARM PRICES.
(a) The powers granted in this section and section ten shall
apply only to the establishment of a compact over-order price, so
long as federal milk marketing orders remain in effect in the
region. In the event that any or all such orders are terminated,
this article shall authorize the commission to establish one or
more commission marketing orders, as herein provided, in the region
or parts thereof as defined in the order.
(b) A compact over-order price established pursuant to this
section shall apply only to Class I milk. Such compact over-order
price shall not exceed one dollar and fifty cents per gallon at
Atlanta, GA; however, this compact over-order price shall be
adjusted upward or downward at other locations in the region to
reflect differences in minimum federal order prices. Beginning in
nineteen hundred ninety, and using that year as a base, the
foregoing one dollar fifty cents per gallon maximum shall be
adjusted annually by the rate of change in the Consumer Price Index
as reported by the Bureau of Labor Statistics of the United States
Department of Labor. For purposes of the pooling and equalization
of an over-order price, the value of milk used in other use
classifications shall be calculated at the appropriate class price
established pursuant to the applicable federal order or state dairy
regulation and the value of unregulated milk shall be calculated in
relation to the nearest prevailing class price in accordance with
and subject to such adjustments as the commission may prescribe in
regulations.
(c) A commission marketing order shall apply to all classes
and uses of milk.
(d) The commission is hereby empowered to establish a compact
over order price for milk to be paid by pool plants and partially
regulated plants. The commission is also empowered to establish a
compact over order price to be paid by all other handlers receiving
milk from producers located in a regulated area. This price shall
be established either as a compact over-order price or by one or
more commission marketing orders. Whenever such a price has been
established by either type of regulation, the legal obligation to
pay such price shall be determined solely by the terms and purposes
of the regulation without regard to the status of the transfer of
title, possession or any other factors not related to the purposes
of the regulation and this compact. Producer-handlers as defined
in an applicable federal market order shall not be subject to a
compact over-order price. The commission shall provide for similar
treatment of producer-handlers under commission marketing orders.
(e) In determining the price, the commission shall consider
the balance between production and consumption of milk and milk
products in the regulated area, the costs of production including,
but not limited to the price of feed, the cost of labor including
the reasonable value of the producer's own labor and management,
machinery expense, and interest expense, the prevailing price for
milk outside the regulated area, the purchasing power of the public
and the price necessary to yield a reasonable return to the
producer and distributor.
(f) When establishing a compact over-order price, the
commission shall take such other action as is necessary and
feasible to help ensure that the over-order price does not cause or
compensate producers so as to generate local production of milk in
excess of those quantities necessary to assure consumers of an
adequate supply for fluid purposes.
(g) The commission shall whenever possible enter into
agreements with the state or federal agencies for exchange of
information or services for the purpose of reducing regulatory
burden and cost of administering the compact. The commission may
reimburse other agencies for the reasonable cost of providing these
services.
§10. OPTIONAL PROVISIONS FOR PRICING ORDER.
Regulations establishing a compact over-order price or a
commission marketing order may contain, but shall not be limited
to, any of the following:
(1) Provisions classifying milk in accordance with the form in
which or purpose for which it is used, or creating a falt pricing
program.
(2) With respect to a commission marketing order only,
provisions establishing or providing a method for establishing
separate minimum prices for each use classification prescribed by
the commission, or a single minimum price for milk purchased from
producers or associations of producers.
(3) With respect to an over-order minimum price provisions
establishing or providing a method for establishing such minimum
price for Class I milk.
(4) Provisions for establishing either an over-order price or
a commission marketing order may make use of any reasonable method
for establishing such price or prices including flat pricing and
formula pricing. Provision may also be made for location
adjustments, zone differentials and for competitive credits with
respect to regulated handlers who market outside the regulated
area.
(5) Provisions for the payement to all producers and
associations of producers delivering milk to all handlers of
uniform prices for all milk so delivered, irrespective of the uses
made of such milk by the individual handler to whom it is
delivered, or for the payment of producers delivering milk to the
same handler or uniform prices for all milk delivered by them.
(a) With respect to regulations establishing a compact over- order price, the commission may establish one equalization pool
within the regulated area for the sole purpose of equalizing
returns to producers throughout the regulated area.
(b) With respect to any commission marketing order, as defined
in section two, subdivision nine, which replaces one or more
terminated federal orders or state dairy regulation, the marketing
area of now separate state or federal orders shall not be merged
without its delegation, which is partly or wholly included within
any such new marketing area.
(6) Provisions requiring persons who bring Class I milk into
the regulated area to make compensatory payments with respect to
all such milk to the extent necessary to equalize the cost of milk
purchased by handlers subject to a compact over-order price or
commission marketing order. No such provisions shall discriminate
against milk producers outside the regulated area. The provisions
for compensatory payments may require to be paid for such milk in
the state of production by a federal milk marketing order or state
dairy regulation and the Class I price established by the compact
over-order price or commission marketing order.
(7) Provisions specially governing the pricing and pooling of
milk handled by partially required plants.
(8) Provisions requiring that the account of any person
regulated under the compact over-order price shall be adjusted for
any payments made to or received by such persons with respect to a
producer settlement fund of any federal or state milk marketing
order or other state dairy regulation within the regulated area.
(9) Provision requiring the payment by handlers of an assement
to cover the costs of the administration and enforcement of such
order pursuant to Article VII, Section 18(a).
(10) Provision for reimbursement to participants of the Women,
Infants and Children Special Supplement Food Program of the United
States Child Nutrition Act of 1966.
(11) Other provisions and requirements as the commission may
find are necessary or appropriate to effectuate the purposes of
this compact and to provide for the payment of fair and equitable
minimum prices to producers.
ARTICLE V. RULEMAKING PROCEDURE.
§11. RULEMAKING PROCEDURE.
Before promulgation of any regulatons establishing a compact
over-order price or commission marketing order, including any
provision with respect to milk supply under subsection 9(f), or
amendment thereof, as provided in Article IV, the commission shall
conduct an informal rulemaking proceeding to provide interested
persons with an opportunity to present data and views. Such
rulemaking proceeding shall be governed by section four of the
Federal Administrative Procedure Act, as amended (5 U.S.C. §553).
In addition, the commission shall, to the extent practicable,
publish notice of rulemaking proceedings in the official register
of each participating state. Before the initial adoption of
regulations establishing a compact over-order price or a commission
marketing order and thereafter before any amendment with regard to
prices or assessments, the commission shall hold a public hearing.
The commission may commence a rulemaking proceeding on its own
initiataive or may in its sole discretion act upon the petition of
any person including individual milk producers, any organization of
milk producers or handlers, general farm organizations, consumer or
public interest groups, and local, state or federal officials.
§12. FINDINGS AND REFERENDUM.
(a) In addition to the concise general statement of basis and
purpose required by section 4(b) of the Federal Administrative
Procedure Act, as amended (5 U.S.C. §553(c)), the commission shall
make findings of fact with respect to:
(1) Whether the public interest will be served by the
establishment of minimum milk prices to dairy farmers under Article
IV.
(2) What level or prices will assure that producers receive a
price sufficient to cover their costs of production and will elicit
an adequate supply of milk for the inhabitants of the regulated
area and for manufacturing purposes.
(3) Whether the major provisions of the order, other than
those fixing minimum milk prices, are in the public interest and
are reasonably designed to achieve the purposes of the order.
(4) Whether the terms of the proposed regional order or
amendment are approved by producers as provided in section
thirteen.
§13. PRODUCER REFERENDUM.
(a) For the purpose of ascertaining whether the issuance or
amendment of regulations establishing a compact over-order price or
a commission marketing order, including any provision with respect
to milk supply under subsection 9(f), is approved by producers, the
commission shall conduct a referendum among producers. The
referendum shall be held in a timely manner, as determined by
regulation of the commission. The terms and conditions of the
proposed order or amendment shall be described by the commission in
the ballot used in the conduct of the referendum, but the nature,
content, or extent of such description shall not be a basis for
attacking the legality of the order or any action relating thereto.
(b) An order or amendment shall be deemed approved by
producers if the commission determines that it is approved by at
least two-thirds of the voting producers who, during a
representative period determined by the commission, have been
engaged in the production of milk the price of which would be
regulated under the proposed order of amendment.
(c) For purposes of any referendum, the commission shall
consider the approval or disapproval by any cooperative association
of producers, qualified under the provisions of the Act of Congress
of February 18, 1922, as amended, known as the Capper-Volstead Act,
bona fide engaged in marketing milk, or in rendering services for
or advancing the interests of producers of such commodity as the
approval or disapproval of the producers who are members or
stockholders in, or under contract with, such cooperative
association of producers, except as provided in subdivision (1)
hereof and subject to the provision of subdivisions (2) through (5)
hereof.
(1) No cooperative which has been formed to act as a common
marketing agency for both cooperatives and individual producers
shall be qualified to block vote for either.
(2) Any cooperative which is qualified to block vote shall,
before submitting its approval or disapproval in any referendum,
give prior written notice to each of its members as to whether and
how it intends to cast its vote. The notice shall be given in a
timely manner as established, and in the form prescribed, by the
commission.
(3) Any producer may obtain a ballot from the commission in
order to register approval or disapproval of the proposed order.
(4) A producer who is a member of a cooperative which has
provided notice of its intent to approve or not to approve a
proposed order, and who obtains a ballot and with such ballot
expresses his approval or disapproval of the proposed order, shall
notify the commission as to the name of the cooperative of which he
or she is a member, and the commission shall remove such producer's
name from the list certified by such cooperative with its corporate
vote.
(5) In order to insure that all milk producers are informed
regarding a proposed order, the commission shall notify all milk
producers that an order is being considered and that each producer
may register his approval or disapproval with the commission either
directly or through his or her cooperative.
§14. TERMINATION OF OVER-ORDER PRICE OR MARKETING ORDER.
(a) The commission shall terminate any regulations
establishing an over-order price or commission marketing order
issued under this article whenever if finds that such order or
price obstructs or does not tend to effectuate the declared policy
of this compact.
(b) The commission shall terminate any regulations
establishing an over-order price or a commission marketing order
issued under this article whenever it finds that such termination
is favored by a majority of the producers who, during a
representative period determined by the commission, have been
engaged in the production of milk the price of which is regulated
by such order; but such termination shall be effective only if
announced on or before such date as may be specified in such
marketing agreement or order.
(c) The termination or suspension of any order or provision
thereof, shall not be considered an order within the meaning of
this article and shall require no hearing, but shall comply with
the requirements for informal rule-making prescribed by section
four of the Federal Administrative Procedure Act, as amended (5
U.S.C. §553).
ARTICLE VI. ENFORCEMENT.
§15. RECORDS, REPORTS, ACCESS TO PREMISES.
(a) The commission may by rule and regulation prescribe record
keeping and reporting requirements for all regulated persons. For
purposes of the administration and enforcement of this compact, the
commission is authorized to examine the books and records of any
regulated person relating to his or her milk business and for that
purpose, the commission's properly designated officers, employees,
or agents shall have full access during normal business hours to
the premises and records of all regulated persons.
(b) Information furnished to or acquired by the commission
offers, employees, or its agents pursuant to this section shall be
confidential and not subject to disclosure except to the extent
that the commission deems disclosure to be necessary in any
administrative or judicial proceeding involving the administration
or enforcement of this compact, an over-order price, a compact
marketing order, or other regulations of the commission. The
commission may promulgate regulations further defining the
confidentiality of information pursuant to this section. Nothing
in this section shall be deemed to prohibit: (i) the issuance of
general statements based upon the reports of a number of handlers,
which do not identify the information furnished by any person; or
(ii) the publication by direction of the commission of the name of
any person violating any regulation of the commission, together
with a statement of the particular provisions violated by such
person.
(c) No officer, employee, or agent of the commission shall
intentionally disclose information, by inference or otherwise,
which is made confidential pursuant to this section. Any person
violating the provisions of this section shall upon conviction by
subject to a fine of not more than $1,000 or to imprisonment for
not more than one year, or to both, and shall be removed from
office. The commission shall refer any allegation of a violation
of this section to the appropriate state enforcement authority or
United States Attorney.
§16. SUBPOENA, HEARINGS AND JUDICIAL REVIEW.
(a) The commission is hereby authorized and empowered by its
members and its properly designated officers to administer oaths
and issue subpoenas throughout all signatory states to compel the
attendance of witnesses and the giving of testimony and the
production of other evidence.
(b) Any handler subject to an order may file a written
petition with the commission stating that any such order or any
provision of any such order or any obligation imposed in connection
therewith is not in accordance with law and praying for a
modification thereof or to be exempted therefrom. He shall
thereupon be given an opportunity for a hearing upon such petition,
in accordance with regulations made by the commission. After such
hearing, the commission shall make a ruling upon the prayer of such
petition which shall be final, if in accordance with law.
(c) The district courts or the United States in any district
in which such handler is an inhabitant, or has his principal place
of business, are hereby vested with jurisdiction to review such
ruling, provided a complaint for that purpose is filed within
thirty days from the date of the entry of such ruling. Service of
process in such proceedings may be had upon the commission by
delivering to it a copy of the complaint. If the court determines
that such ruling is not in accordance with law, it shall remand
such proceedings to the commission with directions either (1) to
make such ruling as the court shall determine to be in accordance
with law, or (2) to take such further proceedings as, in its
opinion, the law requires. The pendency of proceedings instituted
pursuant to this subdivision shall not impede, hinder, or delay the
commission from obtaining relief pursuant to section seventeen.
Any proceedings brought pursuant to section seventeen, except where
brought by way of counterclaim in proceedings instituted pursuant
to this section, shall abate whenever a final decree has been
rendered in proceedings between the same parties, and covering the
same subject matter, instituted pursuant to this section.
§17. ENFORCEMENT WITH RESPECT TO HANDLERS.
(a) Any violation by a handler of the provisions of
regulations establishing an over-order price or a commission
marketing order, or other regulations adopted pursuant to this
compact shall:
(1) Constitute a violation of the laws of each of the
signatory states. Such violation shall render the violator subject
to a civil penalty in an amount as may be prescribed by the laws of
each of the participating states, recoverable in any state or
federal court of competent jurisdiction. Each day such violation
continues shall constitute a separate violation.
(2) Constitute grounds for the revocation of license or permit
to engage in the milk business under the applicable laws of the
participating states.
(b) With respect to handlers, the commission shall enforce the
provision of this compact, regulations establishing an over-order
price, a commission marketing order or other regulations adopted
hereunder by:
(1) Commencing an action for legal or equitable relief brought
in the name of the commission in any state or federal court of
competent jurisdiction; or
(2) Referral to the state agency for enforcement by judicial
or administrative remedy with the agreement of the appropriate
state agency of a participating state.
(c) With respect to handlers, the commission may bring an
action for injunction to enforce the provisions of this compact or
the order or regulations adopted thereunder without being compelled
to allege or prove that an adequate remedy of law does not exist.
ARTICLE VII. FINANCE.
§18. FINANCE OF START-UP AND REGULAR COSTS.
(a) To provide for its start-up costs, the commission may
borrow money pursuant to its general power under section six,
subdivision (d), paragraph four. In order to finance the costs of
administration and enforcement of this complaint, including payback
of start-up costs, the commission is hereby empowered to collect an
assessment from each handler who purchases milk from producers
within the region. If imposed, this assessment shall be collected
on a monthly basis for up to one year from the date the commission
convenes, in an amount not to exceed $.015 per hundredweight of
milk purchased from producers during the period of the assessment.
The initial assessment may apply to the projected purchase of
handlers for the two-month period following the date the commission
convenes. In addition, if regulations establishing
an over-order price or a compact marketing order are adopted, they
may include an assessment for the specific purpose of their
administration. These regulations shall provide for establishment
of a reserve for the commissioner's ongoing operating expenses.
(b) The commission shall not pledge the credit of an
participating state or of the United States. Notes issued by the
commission and all other financial obligations incurred by it,
shall be its sole responsibility and no participating state or the
United States shall be liable therefor.
§19. AUDIT AND ACCOUNTS.
(a) The commission shall keep accurate accounts of all
receipts and disbursements, which shall be subject to the audit and
accounting procedures established under its rules. In addition,
all receipts and disbursements of funds handled by the commission
shall be audited yearly by a qualified public accountant and the
report of the audit shall be included in and become part of the
annual report of the commissioner.
(b) The accounts of the commission shall be open at any
reasonable time for inspection by duly constituted officers of the
participating states and by any persons authorized by the
commission.
(c) Nothing contained in this article shall be construed to
prevent commission compliance with laws relating to audit or
inspection off accounts by or on behalf of any participating state
or of the United States.
ARTICLE VIII. ENTRY INTO FORCE; ADDITIONAL MEMBERS
AND WITHDRAWAL.
§20. ENTRY INTO FORCE; ADDITIONAL MEMBERS.
The compact shall enter into force effective when enacted into
law by any three states of the group of states composed of Alabama,
Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland,
Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee,
Texas, Virginia and West Virginia and when the consent of Congress
has been obtained.
§21. WITHDRAWAL FROM COMPACT.
Any participating state may withdraw from this compact by
enacting a statute repealing the same, but no such withdrawal shall
take effect until one year after notice in writing of the
withdrawal is given to the commission and the governors of all
other participating states. No withdrawal shall affect any
liability already incurred by or chargeable to a participating
state prior to the time of such withdrawal.
§22. SEVERABILITY.
If any part or provision of this compact is adjudged invalid
by any court, such judgment shall be confined in its operation to
the part or provision directly involved in the controversy in which
such judgment shall have been rendered and shall not affect or
impair the validity of the remainder of this compact. In the event
Congress consents to this compact subject to conditions, said
conditions shall not impair the validity of this compact when said
conditions are accepted by three or more compacting states. A
compacting state may accept the conditions of Congress by
implementation of this compact.
§19-11C-2. Compact administrator.
The compact administrator of this state is the commissioner of
agriculture. The duties of the compact administrator are deemed a
regular part of the duties of his office.
§19-11C-3. Appointment of delegation.
There shall be five delegates from this state to the compact
commission, and these delegates shall be appointed by the
commissioner of agriculture. At least three of the delegates shall
be dairy farmers who are engaged in the production of milk at the
time of appointment or reappointment, and at least one delegate
shall be a consumer representative. Delegates shall serve for a
term of four years. Vacancies in the state delegation will be
filled in the same manner as the appointment of delegates, and
shall be for the term of the position vacated.