HB2800 HSUMMARY 3/18
HOUSE COMMITTEE ON
AGRICULTURE AND NATURAL RESOURCES
H.B. 2800 (CARRYOVER FROM RS 1997/ORIGINATING IN COMMITTEE)
ATTORNEY: Paul K. Reese
DATE: March 18, 1998
SHORT TITLE: Enactment of the southern dairy compact
SPONSORED BY:Delegates Beach, Kelley, Buchannan, Prunty, Heck,
Riggs, Boggs and Evans.
INTRODUCED: January 14, 1998
CODE: §19-11C (NEW)
SUMMARY: This bill entered West Virginia into the Southern Dairy
Compact with up to 15 other regional states in order to establish
a commission to support a floor price of milk at the producer level
to keep compact state milk producers in the same competitive price
position established through the federal order system of 1937.
The compact will become effective when passed a majority of
contiguous regional states and when consent of Congress is
1. It is the declared purpose and policy of the compact to insure
continued viability of the southern dairy industry primarily
through regulation of the price which southern dairy farmers
receive for their product.
2. A commission, composed of state delegates appointed by the
W.Va. commissioner of agriculture, administers the compact. One
delegate shall be a farmer, one a retailer, one a processor, one a
consumer representative and one a delegate at large.
3. Administration and management powers include, among others,
4. So long as federal milk orders remain in effect, the commission
may establish over-order prices for class I milk only, not to
exceed $1.50 per gallon at Atlanta, GA, with 1990 as the base year,
adjusted annually by the consumer price index.
5. Provisions for payment to all producers; area of inclusion in the order; producers outside the regulated area to make
compensatory payments to equalize costs; payment of an assessment
by milk handlers to fund start-up costs of the commission, among
6. Commission is authorized to examine the confidential books and
records of any regulated person relating to milk business. Upon
conviction, breach of confidentiality results in a fine of $1000
and/or confinement in jail for one year.
7. Any state may withdraw from the compact by enacting repealing
statute with one year notice to all states in the compact.
8. Senate amendments, concurred in by the House, modified the
number of states necessary to make the compact effective, and also
modified the composition of the state delegation. Although the
issue may be practically moot, there exists an issue of
constitutional compact invalidity regarding the Senate amendments.
All ,other states that have ratified the compact have required the
approval of two other regional sates and Congress. The Senate
amendments require approval of a "majority of contiguous' regional
states. As noted in Opinion of the Justices, 184 N.E.2d 353, 357
(1962), an amendment making a compact effective as to a particular
state which is different from other compact states may be of
sufficient material substance to the compact to constitute a
material difference in the agreement, thereby voiding the contract.
FISCAL NOTE: None.
EFFECTIVE DATE: Regular - 90 Days From Passage.
SECOND REFERENCE: None.
DATE OF PASSAGE: March 10, 1998.