Calendar
No. 25
104th
CONGRESS
1st
Session
S.
J. RES. 28
JOINT
RESOLUTION
To
grant consent of Congress to the Northeast
Interstate Dairy Compact.
March
6, 1995
Read
the second time and placed on the calendar
SJ
28 PCS
Calendar
No. 25
104th
CONGRESS
1st
Session
S.
J. RES. 28
To
grant consent of Congress to the Northeast
Interstate Dairy Compact.
IN
THE SENATE OF THE UNITED STATES
March
2 (legislative day, FEBRUARY 22), 1995
Mr.
JEFFORDS (for himself, Mr. LEAHY, Ms. SNOWE, Mr.
KENNEDY, Mr. COHEN,
Mr. GREGG, Mr. DODD, Mr. SMITH, Mr. CHAFEE, Mr.
KERRY, Mr. LIEBERMAN,and Mr. PELL) introduced
the following joint resolution; which was read
the first time
March
6, 1995
Read
the second time and placed on the calendar
JOINT
RESOLUTION
To
grant consent of Congress to the Northeast
Interstate Dairy Compact.
Resolved
by the Senate and House of Representatives of
the United States of
America in Congress assembled,
SECTION
1. CONGRESSIONAL CONSENT.
****
The enabling legislation for the Compact
located in the 1996 Farm Bill
includes the conditions of Congressional
consent. (Section 147 of the Agricultural
Market Transition Act (Title 1 of Public Law
104-127; 7 U.S.C. 7256)
(b)
COMPACT- The compact is substantially as
follows:
`ARTICLE
I. STATEMENT OF PURPOSE, FINDINGS AND
DECLARATION
OF POLICY
`Sec.
1. STATEMENT OF PURPOSE, FINDINGS AND
DECLARATION
OF POLICY
`The
purpose of this compact is to recognize by
constitutional prerequisite the
interstate character of the northeast dairy
industry and to form an interstate
commission for the northeast region. The mission
of the commission is to take
such steps as are necessary to assure the
continued viability of dairy farming in
the northeast, 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 the paramount
agricultural activity of the northeast. 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 to the region's rural
communities and character. The farms preserve
open spaces, sculpt the
landscape and provide the land base for a
diversity of recreational pursuits. In
defining the rural character of our communities
and landscape, dairy farms also
provide a major draw for our tourist industries.
`By
entering into this compact, the participating
states affirm that their ability to
regulate the price which northeast 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
northeast dairy industry, with all the
associated benefits.
`Recent,
dramatic price fluctuations, with a pronounced
downward trend, threaten
the viability and stability of the northeast
dairy region. Historically, individual
state regulatory action has 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 for dairy products, without preempting
the power of states to regulate milk
prices above the minimum levels so established.
Based on this authority, each
state in the region has individually attempted
to implement at least one regulatory
program in response to the current dairy
industry crisis.
`In
today's regional dairy marketplace, cooperative,
rather than individual state
action may address more effectively 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
`Sec.
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:
`(1)
`Commission' means the commission established by
this compact.
`(2)
`Compact' means this interstate compact.
`(3)
`Region' means the territorial limits of the
states which are or become
parties to this compact.
`(4)
`Participating state' means a state which has
become a party to this
compact by the enactment of concurring
legislation.
`(5)
`Regulated area' means any area within the
region governed by and
defined in regulations establishing a compact
over-order price or
commission marketing order.
`(6)
`Pool plant' means any milk plant located in a
regulated area.
`(7)
`Partially regulated plant' means a milk plant
not located in a
regulated area but having Class I distribution
within such area, or receipts
from producers located in such area. Commission
regulations may exempt
plants having such distribution or receipts in
amounts less than the limits
defined therein.
`(8)
`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.
`(9)
`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.
`(10)
`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 used in its broadest sense
and may be further defined
by the commission for regulatory purposes.
`(11)
`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.
`(12)
`State dairy regulation' means any state
regulation of dairy prices,
and associated assessments, whether by statute,
marketing order or
otherwise.
`Sec.
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
`Sec.
4. COMMISSION ESTABLISHED
`There
is hereby created a commission to administer the
compact, composed of
delegations from each state in the region. A
delegation shall include not less than
three nor 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.
Each state delegation shall be
entitled to one vote in the conduct of the
commission's affairs.
`Sec.
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
bylaws, shall be by majority vote of
the delegations present. 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.
`Sec.
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
therefor, 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 purposes 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.
`Sec.
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 purposes of this compact.
`ARTICLE
IV. POWERS OF THE COMMISSION
`Sec.
8. POWERS TO PROMOTE REGULATORY UNIFORMITY,
SIMPLICITY, AND INTERSTATE COOPERATION
`The
commission is hereby empowered to:
`(1) 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.
`(2)
Prepare and transmit to the participating states
model dairy laws and
regulations dealing with the inspection of farms
and plants, sanitary codes,
labels for dairy products and their imitations,
standards for dairy products,
license standards, producer security programs,
and fair trade laws.
`(3) Study and recommend to the participating
states joint or cooperative
programs for the administration of the dairy
laws and regulations and to
prepare estimates of cost savings and benefits
of such programs.
`(4) Encourage the harmonious relationships
between the various elements
in the industry for the solution of their
material problems. Conduct
symposiums or conferences designed to improve
industry relations, or a
better understanding of problems.
`(5) Prepare and release periodic reports on
activities and results of the
commission's efforts to the participating
states.
`(6) 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.
`(7) Investigate costs and charges for
producing, hauling, handling,
processing, distributing, selling and for all
other services performed with
respect to milk.
`(8) 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.
`Sec.
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 over-order price
shall not exceed one dollar fifty cents
per gallon. 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
the minimum price for
milk to be paid by pool plants, partially
regulated plants and 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 purpose of the regulation without
regard to the situs 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
action as necessary and feasible to ensure that
the over-order price does not create
an incentive for producers to generate
additional supplies of milk.
`(g)
The commission shall whenever possible enter
into agreements with 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.
`Sec.
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 flat
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 payment 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 of 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 the affirmative consent of each state,
voting through 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 payment of
the difference between the Class I price
required 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 regulated plants.
`(8)
Provisions requiring that the account of any
person regulated under a
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)
Provisions requiring the payment by handlers of
an assessment to
cover the costs of the administration and
enforcement of such order
pursuant to Article VII, Section 18(a).
`(10)
Provisions for reimbursement to participants of
the Women, Infants
and Children Special Supplemental 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
`Sec.
11. RULEMAKING PROCEDURE
`Before
promulgation of any regulations 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. Sec. 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 initiative 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.
`Sec.
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.
Sec. 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 of 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.
`Sec.
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 or 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
provisions 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.
`Sec.
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 it 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
rulemaking prescribed by section four of the
Federal Administrative
Procedure Act, as amended (5 U.S.C. Sec. 553).
`ARTICLE
VI. ENFORCEMENT
`Sec.
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 officers,
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 be 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.
`Sec.
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 of 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 in equity to review
such ruling, provided a bill in
equity 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
bill of 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.
`Sec.
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 provisions
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) With the agreement of the appropriate state
agency of a
participating state, by referral to the state
agency for enforcement
by judicial or administrative remedy.
`(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
`Sec.
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 compact, 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 one-tenth
of one percent of the applicable federal market
order blend price per
hundredweight of milk purchased from producers
during the period of the
assessment. The initial assessment may apply to
the projected purchases 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
commission's ongoing
operating expenses.
`(b)
The commission shall not pledge the credit of
any 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.
`Sec.
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 commission.
`(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 of
accounts by or on behalf of any participating
state or of the United States.
`ARTICLE
VIII. ENTRY INTO FORCE; ADDITIONAL MEMBERS AND
WITHDRAWAL
`Sec.
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
Connecticut, Delaware,
Maine, Maryland, Massachusetts, New Hampshire,
New Jersey, New
York, Pennsylvania, Rhode Island, Vermont, and
Virginia, and when the
consent of Congress has been obtained. This
compact shall also be open to
states which are contiguous to any of the named
states and open to states
which are contiguous to participating states.
`Sec.
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
party state prior to the time of such
withdrawal.
`Sec.
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.
`Congress
reserves the right to amend or rescind this
interstate compact at
any time.'.
SEC.
2. RESERVATION OF RIGHTS.
(a)
IN GENERAL- The right to alter, amend, or repeal
this Act is
expressly reserved.
(b)
COMPENSATION REQUIREMENT- When an over-order
price is in
effect, the Commission established in this
compact shall compensate the
Commodity Credit Corporation before the end of
the fiscal year for the
cost of any increased Commodity Credit
Corporation dairy purchases that
result from projected increased fluid milk
production for that fiscal year
within the Compact region in excess of the
national average rate of
increase.
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