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Subchapter 001: NORTHEAST INTERSTATE COMPACT FOR DAIRY PRICING
§ 1801. Statement of purpose, findings, and declaration of policy
(a) 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.
(b) 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.
(c) 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.
(d) 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.
(e) 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.
(f) 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.
(g) 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.
(h) 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.
(i) 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1802. 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 1810 and 1811 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 1810 and 1811 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 subsection (b)
of section 1803 of this compact.
(12) “State dairy regulation” means any state regulation of dairy prices, and associated
assessments, whether by statute, marketing order or otherwise. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1803. 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 1801 of this compact. 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1804. Commission established
There is hereby created a Commission to administer the compact, composed of delegations
from each state in the region. 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, 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1805. 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 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1806. 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 bylaws an executive committee composed of one member elected by each delegation.
(b) The Commission shall adopt bylaws 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 bylaws.
The Commission shall publish its bylaws in convenient form with the appropriate agency
or officer in each of the participating states. The bylaws 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 1818 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1807. 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1808. 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, and 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 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1809. Equitable farm prices
(a) The powers granted in this section and section 1810 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 $1.50 per gallon. Beginning in
1990, and using that year as a base, the foregoing $1.50 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 U.S. 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 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1810. 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 1802 of this
compact, subdivision (9), 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, subsection
1818(a) of this chapter.
(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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1811. 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 1809(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 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1812. Findings and referendum
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 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 1813 of this compact. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1813. 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 1809(f) of this title, 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) of this subsection and subject
to the provisions of subdivisions (2) through (5) of this subsection.
(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 or her 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 ensure 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 or her approval or disapproval with the Commission
either directly or through his or her cooperative. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1814. 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. § 553). (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1815. 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 $1,000.00 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 U.S.
Attorney. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1816. 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 or she 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 or her 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 30 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 1818 of this compact.
Any proceedings brought pursuant to section 1818 (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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1817. 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1818. 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 1806 of this compact, subdivision (d)(4). 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1819. 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1820. 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 that are contiguous to any of the named states and open to states that are
contiguous to participating states. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1821. 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)
§ 1822. 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. (Added 1993, No. 57, § 1, eff. June 3, 1993.)