Approved Minutes
Northeast Dairy
Compact Commission
Monthly Meeting
May 3, 2000
Commission Members in Attendance:
CT: Shirley Ferris, Robert Jacquier, Mae Schmidle.
MA: Sam Shields, Gordon Cook, Jim Hines.
ME: Fred Hardy, Colon Durrell, Stanley Millay.
NH: Doug Morris, Debora Erb, Powell Cabot.
RI: Ron Newman, Al Bettencourt Jr., Aaron Briggs, Peter Petrone, Jametta Alston.
VT: Bobby Starr, Harold Howrigan, Andy Dykstra, Millicent Rooney, Jacques Couture.
Ex Officio Members Present:
Leon Graves, Commissioner, Vermont Department of Agriculture, Foods and Markets.
Commission Staff Present:
Kenneth Becker, Executive Director; Dixie Henry, General Counsel; Carmen Ross, Regulations Administrator; David Ferch, Public Information Director; and Patricia Lammott, Temporary Office Assistant.
Vice Chair Mae Schmidle called the meeting to order at 10:35 a.m. on Wednesday,
May 3, 2000.
I. Public Participation:
None
II. Introduction of Guests:
Steve Watrous of Allied Federated Co-ops; Gabe Moquin of the Connecticut
Department of Agriculture; Ray Christensen of the New York Department of
Agriculture and Markets; Gail Christensen; Susan Harlow of Northeast Dairy
Business; Carl Peterson of Agri-Mark; Martha Keirstead of New Hampshire Farm
Bureau; Erik Rasmussen of USDA; Kay Zeosky of the office of NY Sen. Nancy
Lorraine Hoffman; Naomi Scanlon of the New Hampshire Farm Bureau; and Dale
Cookson of NFO.
III. Consideration of the minutes:
Moved to accept the minutes of the April 5, 2000 meeting as presented.
IV. Consideration
of Communications:
Postponed to later
in the meeting.
V. Financial and Budget Report: Month ending March 2000
Mr. Cabot described the financial report and the design improvements.
VI. Reports:
A. Chair’s Report:
Postponed to later in the meeting.
B. Executive Director’s Report:
Mr. Becker said that
on Monday the US Supreme Court without comment denied plaintiffs’ appeal in the
New York State Dairy Foods Association Inc. case.
Mr. Becker said the funds escrowed in the New York State Dairy Foods
Association Inc. case should be released shortly and we hope producers will see
the money in June.
Mr. Becker said that part of the success in this case is attributable to Mr.
Ross who has spent more than 40 years in the industry and who wrote the
regulations in such a way that they withstood this challenge.
Mr. Becker discussed the design changes to the financial reports.
Mr. Becker said the pool for March milk was $7.1 million with a producer pay
price of $1.23/cwt.
Mr. Becker said he has been putting together a financial procedures manual.
Regarding the proposed rule from the Commodity Credit Corp. (CCC), Mr. Becker
said he is in touch with the analyst at the CCC. With consultation of Mr.
Starr, it was determined it is best to wait for a formal USDA proposal before
the Commission makes a statement.
Mr. Becker said there are three handlers with delinquent accounts. They are
being addressed.
Mr. Becker said the office received the last remaining letter necessary for the
completion of the audit.
C. Committee on Finance
None
D. Audit Committee:
None
E. Bylaws Committee:
Ms. Erb said the committee has not met. Several proposals were offered at
the April meeting and several new proposals have been made. Given the length of
the agenda, Ms. Erb suggested postponing the discussion.
F. Committee on Regulations and Rulemaking:
Mr. Starr said the committee has met twice to address the proposed rule and
a specific supply control program proposal will be presented later at this
meeting.
G. Committee on Administration:
Mrs. Schmidle said the committee has been meeting regularly and has
considered new financial information, the bylaws proposals, and communication with
Cliff Sloan.
VII. Old Business
Mr. Becker and Ms. Henry leave the meeting room.
A. Final Decision on HEP 97-006 (in re Petition of Organic Cow, LLC) –
Executive Session.
Mrs. Schmidle said
the Organic Cow case has been delayed once again. Attorney Cliff Sloan was
scheduled to attend the meeting but did not because there is no report.
Mr. Becker and Ms.
Henry returned to the meeting.
B. Deliberative meeting on proposed rule to adopt supply management program.
Mr. Hines recused himself from the deliberation.
Mr. Starr said the Commission has been informed of the progress of this
issue since it started two years ago, including numerous public hearings from
Saratoga, NY to Waterville, Maine. The Commission decided to move forward with
the assessment and refund program versus the base excess plan.
Mr. Starr said the
committee is proposing an assessment of 7.5 ¢/cwt from each month with a pool,
providing the resultant producer pay price was more than 25¢/cwt.
Mr. Starr said the committee recommends the program run from July 1, 2000
through June 30, 2001. Thereafter, there will only be a supply management
program if the Compact is in effect for more than six months. If the Compact is
not reauthorized, any escrowed funds would be folded into the last monthly
pool.
Mr. Starr said that
at the end of the year, those farmers who did not increase production by more
than 1 percent would receive a refund. The escrowed funds would be distributed
in two halves. The first half would be shared evenly among all qualified
producers. The second half would be distributed on a total production basis
among the qualified producers. There would be a cap of $12,000 on the second
half of the refunded amount.
Mr. Starr said that only farmers who ship milk to the pool plants will qualify
for the program. Producers who ship to non-regulated or partially-regulated
plants would not qualify.
Mr. Starr said a
letter regarding the proposal was received at the Commission office after the
deadline of the period for public comment and suggested the Commission not put
the letter into the record.
Motion 5/3-2 by Bobby
Starr on behalf of the Committee on Regulations
and Rulemaking
Moved to decline to include written comment received April 26, 2000 from Dennis Ward after the close of the comment period of April 19, 2000
Motion
5/3-3 by Bobby Starr on behalf of the
Committee on Regulations and Rulemaking
Moved to adopt
amendments to the over-order price regulation to create a milk supply
management plan through an assessment and refund program that will withhold 7.5
cents per hundredweight from the producer price in months with a Compact pool
and to issue refunds, in two parts, to producers whose milk production
increased at a rate of 1% or less, compared to the prior year’s production,
with one-half of the assessed funds refunded to eligible producers on an equal
flat rate basis and one-half refunded on a per hundredweight basis of total
production, as described in the pre-discussion draft, with a minimum program
year of six months.
Ms. Erb asked whether the motion includes the provisions regarding producers
qualified to participate in the program.
Mrs. Schmidle said from a point of parliamentary procedure the motion should be
repeated.
Mr. Starr read the motion again.
Mr. Cook asked if consolidation of the federal orders would have an impact on
the program.
Mr. Ross said the consolidated federal order is not relevant to the Commission
in this regard.
Mr. Ross added that since the Commission allows diversions, it is conceivable
that New England farmers will ship to a pool plant, which is then shipped out
of the region. That farmer is still qualified.
Ms. Erb asked if it is possible that the section defining qualified producers
might lead to milk from New England farmers being sent to non-regulated plants.
Mr. Starr said that was discussed and it was determined that this possibility
would not come to pass.
Mr. Starr said the Commission can
speculate, but it needs to act on the facts and there is no indication that
there are any New England producers that have not qualified. The committee will
keep an eye on the situation.
Ms. Erb said
she does not believe this program will affect supply.
Mr. Howrigan said the Commission has discussed supply management for two years.
He said some farmers will respond to the supply management program.
Mr. Howrigan commended the committee for developing the proposed program.
Mr. Briggs said in Rhode Island this program will help.
Mr. Dykstra said that if the supply management plan works, it could spread
nationwide. And there is a widespread desire for a supply management plan of
some sort.
Mr. Bettencourt said the proposed program will not curtail supply.
Ms. Ferris said the important thing is to meet the obligation established in
the Compact legislation.
Motion 5/3-4
by Bobby Starr on behalf of the Committee on Regulations and Rulemaking
Moved:
(1) That the public interest continues to be served by establishment of minimum milk prices to dairy farmers under Article IV, as amended;
(2) That the previously established level price of $16.94 (Class I, Suffolk County, Massachusetts) to dairy farmers under Article IV, is unaffected by these amendments, and will continue to assure that producers supplying the New England market 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) That the major provisions of the order, other than those fixing minimum milk prices, are and continue to be, in the public interest and are reasonably designed to achieve the purposes of the order;
Motion 5/3-4 by Bobby Starr on behalf of the Committee on
Regulations and Rulemaking
Moved:
(1) That the public interest continues to be served by establishment of minimum milk prices to dairy farmers under Article IV, as amended;
(2) That the previously established level price of $16.94 (Class I, Suffolk County, Massachusetts) to dairy farmers under Article IV will continue to assure that producers supplying the New England market 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 and will meet the objectives of section 9(f) of the Compact;
(3) That the major provisions of the order, other than those fixing minimum milk prices, are and continue to be, in the public interest and are reasonably designed to achieve the purposes of the order;
(4) That the terms of the proposed amendments will be approved by producers pursuant to a producer referendum required by Article V, Section 13.
MOTION PASSED 6 TO 0
Motion 5/3-5 by Bobby Starr on behalf of the Committee on
Regulations and Rulemaking
Moved that:
1)
December 1999 be the
designated representative period for determining eligible producers;
2)
Ballots will be mailed
to eligible producers and qualified cooperatives by May 12, 2000;
3)
Qualified cooperatives
must mail notice of block votes to members by May 16, 2000;
4)
All ballots must be
received in the Commission office by 5:00 p.m. on May 22, 2000; and
5)
Bobby Starr shall serve
as referendum agent.
Moved to approve the Federal Milk Market Administrator’s Invoice – February 2000 pool, audits completed during March, referendum costs and programming modifications.
Moved that the following standing committees be appointed for the year 2000 (list attached).
Mr. Hines said he served as designee for Ms. Kassler on the Committee on Administration and it was determined that he could not vote. Mr. Hines said the intent of the Commission in establishing the bylaws was that every state would have a vote on each and every committee. Mr. Hines recommended that before a designee is again denied a vote, the commission look into the issue and come up with a resolution.
Ms. Erb read from the bylaws, which stated that designees are allowed to vote.
She said Mr. Hardy and Mr. Hines should have been able to vote at the Committee
on Administration.
Mrs. Schmidle said she would refer the issue to the newly appointed
parliamentarian.
Ms. Erb said the Commission is based on one state one vote. She said the Commission needs to make a
philosophical decision on the matter.
Mrs. Schmidle said no state has been denied the right to
vote.
Mr. Hines said it was his impression that in the morning meeting he was not
allowed to vote.
Mr. Cook asked if the Commission could take action on the matter immediately.
Mrs. Schmidle said it is a wonderful suggestion that should be researched.
Ms. Henry said there is only one place where the issue of voting rights is
mentioned in the bylaws. And there will be instances where designees will be
involved with committees taking votes before the parliamentarian or the bylaws
committee would be able to make a determination on the question.
Mrs. Schmidle said no state will ever be denied a vote.
Mr. Howrigan said the intent of the commission is every state will be
represented and a designee will have the right to vote.
Mr. Cook said the Commission should make that understanding official.
Ms. Alston said the bylaws do state designees can vote. However, Ms. Alston
added that the composition of the Committee on Administration is such that it is
defined by officers as much as by state membership.
Ms. Alston said the Committee on Administration acts as an executive committee, which reflects its composition of officers. A state representative can be replaced but an officer cannot be replaced by a designee, she said.
Mr. Hardy said the Commission must deal
with the bylaws that state that another person should be given the right to
vote as a designee. One officer does not have any greater vote than a
non-officer so the role of an officer on the Committee on Administration is not
relevant to voting procedure.
Ms. Erb said the Commission deliberately named it the Committee on
Administration as opposed to the executive committee because the Commission did
not want the committee to have too much power.
Mr. Cook said the Commission needs to resolve the issue immediately
.
Motion 5/3-8 by Gordon Cook/Second by Jacques Couture
Moved that in the interim between now and any review of the bylaws that we intepret our bylaws to mean that any interim member or designee, including a designee of an officer, who goes to a committee meeting that they will be there with the full authority of the member to participate in the discussion and will have full equal voting rights as full members of the committee.
Ms. Ferris asked about the power to designate representatives.
Ms. Henry said the Compact legislation adopted by the individual states
determines designating authority and each state is different.
Mr. Shields said he was in the same situation and was not allowed to vote
so he wants it to be made clear.
Ms. Alston said maybe the Commissioners do not understand that it is an
executive committee that is just called a committee on administration. It acts
just as does an executive committee in that it addresses issues and brings
proposals to the commission to decide.
Ms. Henry said one difference is that when an officer is absent from a
Committee on Administration meeting he or she wants the state represented. The
officer is only absent from the meeting, not from the role as officer. It is
another member serving in a member status representing the state, not replacing
the officer in the officer capacity.
Ms. Alston said the chair represents the Commission, not just the state from
which she comes. That role cannot be replaced by a designee.
Moved the previous question.
MOTION PASSED 5 TO 1 (RHODE ISLAND DISSENTING)
Moved to pay Attorney Rich Cassidy for the work in negotiating a severance package (for Kenneth Becker).
The vote was delayed pending discussion in executive session.
Moved to accept Kenneth Becker’s resignation in the statement, manner and good will in which it is given.
Moved to go into executive session to discuss a legal matter.
Moved, according to the discussion here today, to empower the Committee on Administration to proceed with negotiations on the severance package.
Moved to take no action on the (Ad Hoc Personnel) Committee report heard here today.
Moved to adjourn
Respectfully submitted,
Mae Schmidle, Vice Chair