States that Congress consents to the Southern Dairy Compact entered into by Alabama, Arkansas, Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia. States that only Florida, Nebraska, and Texas may join such Compact. Limits price regulatory authority to Class I fluid milk unless otherwise consented to by the Congress. Provides for Commodity Credit Corporation compensation. Sets forth the Southern Dairy Compact.
States that Congress consents to: (1) the Pacific Northwest Dairy Compact proposed for California, Oregon, and Washington; and (2) the Intermountain Dairy Compact proposed for Colorado, Nevada, and Utah. Limits price regulatory authority to Class I fluid milk. Provides for Corporation compensation. States that such Compacts shall be the same as the Southern Dairy Compact with specified differences.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1157 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1157
To reauthorize the consent of Congress to the Northeast Interstate
Dairy Compact and to grant the consent of Congress to the Southern
Dairy Compact, a Pacific Northwest Dairy Compact, and an Intermountain
Dairy Compact.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 29, 2001
Mr. Specter (for himself, Ms. Landrieu, Ms. Collins, Mr. Schumer, Ms.
Snowe, Mr. Leahy, Mr. Cochran, Mr. Breaux, Mr. Allen, Mr. Biden, Mr.
Bond, Mrs. Carnahan, Mr. Carper, Mr. Chafee, Mr. Cleland, Mrs. Clinton,
Mr. Dodd, Mr. Edwards, Mr. Frist, Mr. Gregg, Mr. Helms, Mr. Hollings,
Mr. Jeffords, Mr. Kennedy, Mr. Kerry, Mr. Lieberman, Mrs. Lincoln, Ms.
Mikulski, Mr. Miller, Mr. Reed, Mr. Rockefeller, Mr. Sarbanes, Mr.
Sessions, Mr. Shelby, Mr. Smith of New Hampshire, Mr. Thompson, Mr.
Thurmond, Mr. Torricelli, and Mr. Warner) introduced the following
bill; which was read twice and referred to the Committee on the
Judiciary
_______________________________________________________________________
A BILL
To reauthorize the consent of Congress to the Northeast Interstate
Dairy Compact and to grant the consent of Congress to the Southern
Dairy Compact, a Pacific Northwest Dairy Compact, and an Intermountain
Dairy Compact.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Dairy Consumers and Producers
Protection Act of 2001''.
SEC. 2. NORTHEAST INTERSTATE DAIRY COMPACT.
Section 147 of the Agricultural Market Transition Act (7 U.S.C.
7256) is amended--
(1) in the matter preceding paragraph (1), by striking
``States'' and all that follows through ``Vermont'' and
inserting ``States of Connecticut, Delaware, Maine, Maryland,
Massachusetts, New Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, and Vermont'';
(2) by striking paragraphs (1), (3), and (7);
(3) in paragraph (2), by striking ``Class III-A'' and
inserting ``Class IV'';
(4) by striking paragraph (4) and inserting the following:
``(4) Additional state.--Ohio is the only additional State
that may join the Northeast Interstate Dairy Compact.'';
(5) in paragraph (5), by striking ``the projected rate of
increase'' and all that follows through ``Secretary'' and
inserting ``the operation of the Compact price regulation
during the fiscal year, as determined by the Secretary (in
consultation with the Commission) using notice and comment
procedures provided in section 553 of title 5, United States
Code''; and
(6) by redesignating paragraphs (2), (4), (5), and (6) as
paragraphs (1), (2), (3), and (4), respectively.
SEC. 3. SOUTHERN DAIRY COMPACT.
(a) In General.--Congress consents to the Southern Dairy Compact
entered into among the States of Alabama, Arkansas, Georgia, Kansas,
Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma,
South Carolina, Tennessee, Virginia, and West Virginia, subject to the
following conditions:
(1) Limitation of manufacturing price regulation.--The
Southern Dairy Compact Commission may not regulate Class II,
Class III, or Class IV milk used for manufacturing purposes or
any other milk, other than Class I, or fluid milk, as defined
by a Federal milk marketing order issued under section 8c of
the Agricultural Adjustment Act (7 U.S.C. 608c), reenacted with
amendments by the Agricultural Marketing Act of 1937 (referred
to in this section as a ``Federal milk marketing order'')
unless Congress has first consented to and approved such
authority by a law enacted after the date of enactment of this
joint resolution.
(2) Additional states.--Florida, Nebraska, and Texas are
the only additional States that may join the Southern Dairy
Compact, individually or otherwise.
(3) Compensation of commodity credit corporation.--Before
the end of each fiscal year in which a Compact price regulation
is in effect, the Southern Dairy Compact Commission shall
compensate the Commodity Credit Corporation for the cost of any
purchases of milk and milk products by the Corporation that
result from the operation of the Compact price regulation
during the fiscal year, as determined by the Secretary (in
consultation with the Commission) using notice and comment
procedures provided in section 553 of title 5, United States
Code.
(4) Milk marketing order administrator.--At the request of
the Southern Dairy Compact Commission, the Administrator of the
applicable Federal milk marketing order shall provide technical
assistance to the Compact Commission and be compensated for
that assistance.
(b) Compact.--The Southern Dairy 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 the interstate
character of the southern dairy industry and the prerogative of the
states under the United States Constitution to form an interstate
commission for the southern region. The mission of the commission is to
take such steps as are necessary to assure the continued viability of
dairy farming in the south, 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 an essential agricultural activity of the south. 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 and they are an integral part of the region's rural
communities. The farms preserve land for agricultural purposes and
provide needed economic stimuli for rural communities.
``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.
``By entering into this compact, the participating states affirm
that their ability to regulate the price which southern 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 southern
dairy industry, with all the associated benefits.
``Recent, dramatic price fluctuations, with a pronounced downward
trend, threaten the viability and stability of the southern dairy
region. Historically, individual state regulatory action had 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 paid to producers for raw milk, without preempting the power of
states to regulate milk prices above the minimum levels so established.
``In today's regional dairy marketplace, cooperative, rather than
individual state action is needed to more effectively address 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.
``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) `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.
``(2) `Commission' means the Southern Dairy Compact
Commission established by this compact.
``(3) `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.
``(4) `Compact' means this interstate compact.
``(5) `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
regulations 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.
``(6) `Milk' means the lacteral 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.
``(7) `Partially regulated plant' means a milk plant not
located in a regulated area but having Class I distribution
within such area. Commission regulations may exempt plants
having such distribution or receipts in amounts less than the
limits defined therein.
``(8) `Participating state' means a state which has become
a party to this compact by the enactment of concurring
legislation.
``(9) `Pool plant' means any milk plant located in a
regulated area.
``(10) `Region' means the territorial limits of the states
which are parties to this compact.
``(11) `Regulated area' means any area within the region
governed by and defined in regulations establishing a compact
over-order price or commission marketing order.
``(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) The 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. The commission
shall be known as the Southern Dairy Compact Commission. 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.
``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 by-laws,
shall be by majority vote of the delegations present. Each state
delegation shall be entitled to one vote in the conduct of the
commission's affairs. 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 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) Study and recommend to the participating states joint
or cooperative programs for the administration of the dairy
marketing laws and regulations and to prepare estimates of cost
savings and benefits of such programs.
``(3) Encourage the harmonious relationships between the
various elements in the industry for the solution of their
material problems. Conduct symposia or conferences designed to
improve industry relations, or a better understanding of
problems.
``(4) Prepare and release periodic reports on activities
and results of the commission's efforts to the participating
states.
``(5) 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.
``(6) Investigate costs and charges for producing, hauling,
handling, processing, distributing, selling and for all other
services performed with respect to milk.
``(7) 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 compact over-order price
shall not exceed one dollar and fifty cents per gallon at Atlanta, Ga.,
however, this compact over-order price shall be adjusted upward or
downward at other locations in the region to reflect differences in
minimum federal order prices. 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 a compact
over-order price for milk to be paid by pool plants and partially
regulated plants. The commission is also empowered to establish a
compact over-order price to be paid by 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 other action as is necessary and feasible to help
ensure that the over-order price does not cause or compensate producers
so as to generate local production of milk in excess of those
quantities necessary to assure consumers of an adequate supply for
fluid purposes.
``(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 three,
which replaces one or more terminated federal orders or
state dairy regulations, 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 the 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) Provision 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
subdivision (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 the 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 one thousand dollars 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 to review such ruling,
provided a complaint 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 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 of any state or federal
court of competent jurisdiction; or
``(2) Referral to the state agency for enforcement by
judicial or administrative remedy with the agreement of the
appropriate state agency of a participating state.
``(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 $.015 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 Alabama,
Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi,
North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia
and West Virginia and when the consent of Congress has been obtained.
``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 participating 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. In the event Congress
consents to this compact subject to conditions, said conditions shall
not impair the validity of this compact when said conditions are
accepted by three or more compacting states. A compacting state may
accept the conditions of Congress by implementation of this compact.''.
SEC. 4. PACIFIC NORTHWEST DAIRY COMPACT.
Congress consents to a Pacific Northwest Dairy Compact proposed for
the States of California, Oregon, and Washington, subject to the
following conditions:
(1) Text.--The text of the Pacific Northwest Dairy Compact
shall be identical to the text of the Southern Dairy Compact,
except as follows:
(A) References to ``south'', ``southern'', and
``Southern'' shall be changed to ``Pacific Northwest''.
(B) In section 9(b), the reference to ``Atlanta,
Georgia'' shall be changed to ``Seattle, Washington''.
(C) In section 20, the reference to ``any three''
and all that follows shall be changed to ``California,
Oregon, and Washington.''.
(2) Limitation of manufacturing price regulation.--The
Dairy Compact Commission established to administer the Pacific
Northwest Dairy Compact (referred to in this section as the
``Commission'') may not regulate Class II, Class III, or Class
IV milk used for manufacturing purposes or any other milk,
other than Class I, or fluid milk, as defined by a Federal milk
marketing order issued under section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by
the Agricultural Marketing Act of 1937 (referred to in this
section as a ``Federal milk marketing order'').
(3) Effective date.--Congressional consent under this
section takes effect on the date (not later than 3 years after
the date of enactment of this Act) on which the Pacific
Northwest Dairy Compact is entered into by the second of the 3
States specified in the matter preceding paragraph (1).
(4) Compensation of commodity credit corporation.--Before
the end of each fiscal year in which a price regulation is in
effect under the Pacific Northwest Dairy Compact, the
Commission shall compensate the Commodity Credit Corporation
for the cost of any purchases of milk and milk products by the
Corporation that result from the operation of the Compact price
regulation during the fiscal year, as determined by the
Secretary (in consultation with the Commission) using notice
and comment procedures provided in section 553 of title 5,
United States Code.
(5) Milk marketing order administrator.--At the request of
the Commission, the Administrator of the applicable Federal
milk marketing order shall provide technical assistance to the
Commission and be compensated for that assistance.
SEC. 5. INTERMOUNTAIN DAIRY COMPACT.
Congress consents to an Intermountain Dairy Compact proposed for
the States of Colorado, Nevada, and Utah, subject to the following
conditions:
(1) Text.--The text of the Intermountain Dairy Compact
shall be identical to the text of the Southern Dairy Compact,
except as follows:
(A) In section 1, the references to ``southern''
and ``south'' shall be changed to ``Intermountain'' and
``Intermountain region'', respectively.
(B) References to ``Southern'' shall be changed to
``Intermountain''.
(C) In section 9(b), the reference to ``Atlanta,
Georgia'' shall be changed to ``Salt Lake City, Utah''.
(D) In section 20, the reference to ``any three''
and all that follows shall be changed to ``Colorado,
Nevada, and Utah.''.
(2) Limitation of manufacturing price regulation.--The
Dairy Compact Commission established to administer the
Intermountain Dairy Compact (referred to in this section as the
``Commission'') may not regulate Class II, Class III, or Class
IV milk used for manufacturing purposes or any other milk,
other than Class I, or fluid milk, as defined by a Federal milk
marketing order issued under section 8c of the Agricultural
Adjustment Act (7 U.S.C. 608c), reenacted with amendments by
the Agricultural Marketing Act of 1937 (referred to in this
section as a ``Federal milk marketing order'').
(3) Effective date.--Congressional consent under this
section takes effect on the date (not later than 3 year after
the date of enactment of this Act) on which the Intermountain
Dairy Compact is entered into by the second of the 3 States
specified in the matter preceding paragraph (1).
(4) Compensation of commodity credit corporation.--Before
the end of each fiscal year in which a price regulation is in
effect under the Intermountain Dairy Compact, the Commission
shall compensate the Commodity Credit Corporation for the cost
of any purchases of milk and milk products by the Corporation
that result from the operation of the Compact price regulation
during the fiscal year, as determined by the Secretary (in
consultation with the Commission) using notice and comment
procedures provided in section 553 of title 5, United States
Code.
(5) Milk marketing order administrator.--At the request of
the Commission, the Administrator of the applicable Federal
milk marketing order shall provide technical assistance to the
Commission and be compensated for that assistance.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S7247-7248)
Read twice and referred to the Committee on the Judiciary. (text of measure as introduced: CR S7248-7252)
Committee on the Judiciary. Hearings held. Hearings printed: S.Hrg. 107-520.
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