CT: Robert Jacquier, Mae Schmidle, Gabe Moquin (designee for Shirley Ferris)

MA: Mary Kassler, William Gillmeister (designee for Jay Healy)

ME: Linda Smith-Dyer, Fred Hardy, Michael Weirs (designee for Colon Durrell)

NH: Douglas Morris, Debora Erb

RI: Ron Newman, John Smith, Aaron Briggs, Al Bettencourt Jr.

VT: Jacques Couture; Andy Dykstra; Harold Howrigan; Millicent Rooney; Robert Starr.

Members Ex Officio Present: Leon Graves, Commissioner, Vermont Department of Agriculture, Food and Markets.

Kenneth Becker, Executive Director; Dixie Henry, General Counsel; Carmen Ross, Regulations Administrator; David Ferch, Public Information Director; Denise Little, Administrative Assistant; and, Patricia Lammott, temporary Office Assistant.

Chairman Mae Schmidle called the meeting to order at 10:15 a.m. on Wednesday, Sept. 1, 1999

At the request of the Chair, the members of the audience introduced themselves. They included: Pat Green of Country Folks, Diane Bothfeld of St. Albans Coop, Ray Christensen of the New York State Department of Agriculture and Markets, Gail Christensen a dairy farmer, Kay Zeosky from the office of New York State Senator Nancy L. Hoffman, Bob Wellington of Agri-Mark, Beth Foley from the Milk Market Administrator's office in Boston, Carl Peterson of Agri-Mark.

Bob Wellington of Agri-Mark made two remarks: he urged the Commissioners to not pay the obligation to the Commodity Credit Corporation; and, B. Wellington said Agri-mark may be party to a possible lawsuit on federal order reform, which indirectly could affect the NDCC.

R. Jacquier mentioned that the Aug. 12, 20 and 26 meetings were held by conference call.

K. Becker announced the receipt of a letter from the New England Governor's Conference inviting Commission members to the meeting in Rockport, Me. on Oct 3,4,5.

M. Kassler described the compiled financial reports for the administrative fund and the producer-settlement funds presented to the committee on Sept. 1.

M. Schmidle commented on the frequency and success of using telephone conference calls for special and emergency meetings. She also mentioned the upcoming rally in support of Compact reauthorization in Washington, D.C. on Sept. 15.

K. Becker said the staff is processing the school milk reimbursement forms on schedule and funds should be forwarded to the schools by mid-September. Also, the process will be streamlined for the coming year and a full report of the reimbursement will be offered at the October meeting. In response to a question by A. Dykstra, K. Becker said there is enough money to cover the reimbursement.

The New York State Dairy Foods et al. V. Dairy Compact et al. case has been briefed and a hearing will be held in a federal court in Boston on Sept. 13, said K. Becker.

The terms of the settlement in the Suiza et al. v Dairy Compact et al. are proceeding apace.

K. Becker complimented the staff members individually on their performance during an important and busy period in the history of the Compact.

M. Kassler said the $411,000 held in escrow was moved into the Commission's bank account and the Committee was reviewing pending bills to ensure the continued good credit of the Commission.

A report would be offered under new business, said R. Newman.

Tom Doak, was appointed to be Maine's Commissioner of Forests, said K. Becker. T. Doak was replaced on the Commission by Maine's Deputy Agriculture Commissioner Linda Smith-Dyer.

No report was offered.

Report offered under agenda item "old business".

R. Newman said the personnel manual is still being reviewed. A report will be made at the October Commission meeting.

H. Howrigan said September is going to be a crucial month for reauthorization.

He urged Commissioners to attend the Dairy Rally in Washington on Sept. 15.

Leon Graves made comments on the situation in Congress. He said the chances for reauthorization look good but it will be close, based on the makeup of the Agriculture Conference Committee.

B. Starr said the Commodity Credit Corp. sent the Commission a bill for $1,363,000. B. Starr said the Committee recommends the Commission pay the bill under protest and send a letter to the CCC explaining the Commission's disagreement with the CCC's conclusion.

R. Newman expressed his concern with the CCC obligation and asked for an explanation of its calculation.

K. Becker said the condition put on the Compact by Congress requires the payment. He then walked through the calculation of the $1,363,000.

D. Erb asked about the declaration by USDA of three New England states as disaster zones as a result of the drought and the relation of this announcement to the CCC obligation. USDA considers the issues to be separate, said K. Becker.

W. Gillmeister said the Massachusetts Department of Agriculture questions the CCC obligation and disputes the methodology for computing the sum.

B. Starr said the Commission pushed in FY 98 for the current formula aware of the situation and urged the formula remain unchallenged.

J. Smith asked about avenues for administrative appeal.

L. Dyer said she opposed the obligation and said the Commission should take a stand to make a statement.

R. Newman asked the chair to ask B. Wellington about the computation of the obligation. The chair recognized B. Wellington who said it was his opinion that the $1.36 million comes from pocket of the farmer.

D. Erb suggested the issue be studied until Sept. 30. and asked the chair to ask L. Graves about the political ramifications of the obligation. To which L. Graves said it would be a mistake to withhold payment given the timing and the effort for reauthorization.

M. Kassler, J. Couture, H. Howrigan and M. Weirs stated their opinion in support of meeting the CCC obligation.

M. Kassler asked how a vote is resolved if a delegation is evenly divided. M. Schmidle said Roberts Rules of Order recommends that in the event of a tie, there is no vote cast. M Schmidle added the practice has been for individual state delegations to determine resolution of this issue and the Commission bylaws do not govern delegation voting procedures within a state delegation.

Recessed for lunch.

No member of the public chose to address the Commission.

B. Starr said the Committee on Rules and Regulations felt it was appropriate to postpone the discussion until the Oct. 6 meeting because neither the Committee nor the staff had had sufficient time to review the record.

The Committee on Administration:

R. Newman made a motion to pay back loans. He then refined his motion because the his original motion did not specify the nature of the loans.

The next meeting will be held the first Wednesday in October, the 6^th, at the Wayfarer Inn in Bedford.

No report offered.

R. Newman commented on reauthorization.

There were questions about the scheduling of the November Commission meeting, which were not resolved.

The meeting was adjourned at approximately 2 p.m.

Respectfully submitted,

Mae Schmidle

Chairman, on behalf of Powell Cabot, Secretary

Administrative note: The September 1, 1999 minutes presented above represent the first use of a cataloguing system for motions and amendments. Motions include the Month and Year following by a sequential number. Notation of the amendments refer to the relevant motion code with sequential lettering.