3.2-3300 - Southern Dairy Compact; form of compact.
§ 3.2-3300. Southern Dairy Compact; form of compact.
The Southern Dairy Compact is enacted into law and entered into with allother jurisdictions legally joining therein in the form substantially asfollows:
ARTICLE I. Statement of Purpose, Findings, and Declaration of Policy.
§ 1. Statement of purpose, findings, and declaration of policy.
The purpose of this compact is to recognize the interstate character of thesouthern dairy industry and the prerogative of the states under the UnitedStates Constitution to form an interstate commission for the southern region.The mission of the Commission is to take such steps as are necessary toassure the continued viability of dairy farming in the South, and to assureconsumers of an adequate, local supply of pure and wholesome milk.
The participating states find and declare that the dairy industry is anessential agricultural activity of the South. Dairy farms, and associatedsuppliers, marketers, processors, and retailers, are an integral component ofthe region's economy. Their ability to provide a stable, local supply ofpure, wholesome milk is a matter of great importance to the health andwelfare of the region.
The participating states further find that dairy farms are essential, andthey are an integral part of the region's rural communities. The farmspreserve land for agricultural purposes and provide needed economic stimulifor rural communities.
By entering into this compact, the participating states affirm that theirability to regulate the price that southern dairy farmers receive for theirproduct is essential to the public interest. Assurance of a fair andequitable price for dairy farmers ensures their ability to provide milk tothe market and the vitality of the southern dairy industry, with all theassociated 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 effectiveemergency remedy available to farmers confronting a distressed market. Thesystem of federal orders, implemented by the Agricultural Marketing AgreementAct of 1937, establishes only minimum prices paid to producers for raw milk,without preempting the power of states to regulate milk prices above theminimum levels so established.
In today's regional dairy marketplace, cooperative, rather than individualstate action is needed to more effectively address the market disarray. Underour constitutional system, properly authorized states acting cooperativelymay exercise more power to regulate interstate commerce than they may assertindividually without such authority. For this reason, the participatingstates invoke their authority to act in common agreement, with the consent ofCongress, under the compact clause of the Constitution.
In establishing their constitutional regulatory authority over the region'sfluid milk market by this compact, the participating states declare theirpurpose that this compact neither displace the system of federal orders norencourage the merging of federal orders. Specific provisions of the compactitself set forth this basic principle.
Designed as a flexible mechanism able to adjust to changes in a regulatedmarketplace, the compact also contains a contingency provision should thesystem of federal orders be discontinued. In that event, the interstatecommission may regulate the marketplace in lieu of the system of federalorders. This contingent authority does not anticipate such a change, however,and should not be so construed. It is only provided should developments inthe market other than establishment of this compact result in discontinuanceof the system of federal orders.
ARTICLE II. Definitions and Rules of Construction.
§ 2. Definitions.
For the purposes of this compact, and of any supplemental or concurringlegislation enacted pursuant thereto, except as may be otherwise required bythe context:
"Class I milk" means milk disposed of in fluid form or as a fluid milkproduct, subject to further definition in accordance with the principlesexpressed in subsection (b) of § 3.
"Commission" means the Southern Dairy Compact Commission established bythis compact.
"Commission marketing order" means regulations adopted by the Commissionpursuant to §§ 9 and 10 of this compact in place of a terminated federalmarketing order or state dairy regulation. Such order may apply throughoutthe region or in any part or parts thereof as defined in the regulations ofthe Commission. Such order may establish minimum prices for any or allclasses of milk.
"Compact" means this interstate compact.
"Compact over-order price" means a minimum price required to be paid toproducers for Class I milk established by the Commission in regulationsadopted pursuant to §§ 9 and 10 of this compact, which is above the priceestablished in federal marketing orders or by state farm price regulation inthe regulated area. Such price may apply throughout the region or in any partor parts thereof as defined in the regulations of the Commission.
"Milk" means the lacteal secretion of cows and includes all skim,butterfat, or other constituents obtained from separation or any otherprocess. The term is used in its broadest sense and may be further defined bythe Commission for regulatory purposes.
"Partially regulated plant" means a milk plant not located in a regulatedarea but having Class I distribution within such area. Commission regulationsmay exempt plants having such distribution or receipts in amounts less thanthe limits defined therein.
"Participating state" means a state which has become a party to thiscompact by the enactment of concurring legislation.
"Pool plant" means any milk plant located in a regulated area.
"Region" means the territorial limits of the states which are parties tothis compact.
"Regulated area" means any area within the region governed by and definedin regulations establishing a compact over-order price or commissionmarketing order.
"State dairy regulation" means any state regulation of dairy prices andassociated assessments, whether by statute, marketing order, or otherwise.
§ 3. Rules of construction.
(a) This compact shall not be construed to displace existing federal milkmarketing orders or state dairy regulation in the region but to supplementthem. In the event some or all federal orders in the region are discontinued,the compact shall be construed to provide the Commission the option toreplace them with one or more commission marketing orders pursuant to thiscompact.
(b) This compact shall be construed liberally in order to achieve thepurposes and intent enunciated in § 1. It is the intent of this compact toestablish a basic structure by which the Commission may achieve thosepurposes through the application, adaptation, and development of theregulatory techniques historically associated with milk marketing and toafford the Commission broad flexibility to devise regulatory mechanisms toachieve the purposes of this compact. In accordance with this intent, thetechnical terms which are associated with market order regulation and whichhave acquired commonly understood general meanings are not defined herein butthe Commission may further define the terms used in this compact and developadditional concepts and define additional terms as it may find appropriate toachieve its purposes.
ARTICLE III. Commission Established.
§ 4. Commission established.
There is hereby created a commission to administer the compact, composed ofdelegations from each state in the region. The Commission shall be known asthe Southern Dairy Compact Commission. A delegation shall include not lessthan three nor more than five persons. Each delegation shall include at leastone dairy farmer who is engaged in the production of milk at the time ofappointment or reappointment, and one consumer representative. Delegationmembers shall be residents and voters of, and subject to such confirmationprocess as is provided for in, the appointing state. Delegation members shallserve no more than three consecutive terms with no single term of more thanfour years, and be subject to removal for cause. In all other respects,delegation members shall serve in accordance with the laws of the staterepresented. The compensation, if any, of the members of a state delegationshall be determined and paid by each state, but their expenses shall be paidby the Commission.
§ 5. Voting requirements.
All actions taken by the Commission, except for the establishment ortermination of an over-order price or commission marketing order, and theadoption, amendment, or rescission of the Commission's bylaws, shall be bymajority vote of the delegations present. Each state delegation shall beentitled to one vote in the conduct of the Commission's affairs.Establishment or termination of an over-order price or commission marketingorder shall require at least a two-thirds vote of the delegations present.The establishment of a regulated area that covers all or part of aparticipating state shall require also the affirmative vote of that state'sdelegation. A majority of the delegations from the participating states shallconstitute a quorum for the conduct of the Commission's business.
§ 6. Administration and management.
(a) The Commission shall elect annually from among the members of theparticipating state delegations a chairperson, a vice-chairperson, and atreasurer. The Commission shall appoint an executive director and fix his orher duties and compensation. The executive director shall serve at thepleasure of the Commission, and, together with the treasurer, shall be bondedin an amount determined by the Commission. The Commission may establishthrough its bylaws an executive committee composed of one member elected byeach delegation.
(b) The Commission shall adopt bylaws for the conduct of its business by atwo-thirds vote and shall have the power by the same vote to amend andrescind these bylaws. The Commission shall publish its bylaws in convenientform with the appropriate agency or officer in each of the participatingstates. The bylaws shall provide for appropriate notice to the delegations ofall Commission meetings and hearings and of the business to be transacted atsuch meetings or hearings. Notice also shall be given to other agencies orofficers of participating states as provided by the laws of those states.
(c) The Commission shall file an annual report with the Secretary ofAgriculture of the United States, and with each of the participating statesby submitting copies to the Governor, both houses of the legislature, and thehead of the state department having responsibilities for agriculture.
(d) In addition to the powers and duties elsewhere prescribed in thiscompact, the Commission may engage in all of the following:
(1) Sue and be sued in any state or federal court.
(2) Have a seal and alter the same at pleasure.
(3) Acquire, hold, and dispose of real and personal property by gift,purchase, lease, license, or other similar manner, for its corporate purposes.
(4) Borrow money and to issue notes, to provide for the rights of the holdersthereof, and to pledge the revenue of the Commission as security therefor,subject to the provisions of § 18 of this compact.
(5) Appoint such officers, agents, and employees as it may deem necessary,prescribe their powers, duties, and qualifications.
(6) Create and abolish such offices, employments, and positions as it deemsnecessary for the purposes of the compact and provide for the removal, term,tenure, compensation, fringe benefits, pension, and retirement rights of itsofficers and employees.
(7) Retain personal services on a contract basis.
§ 7. Rule-making power.
In addition to the power to promulgate a compact over-order price orcommission marketing orders as provided by this compact, the Commission isfurther empowered to make and enforce such additional rules and regulationsas it deems necessary to implement any provisions of this compact, or toeffectuate in any other respect the purposes of this compact.
ARTICLE IV. Powers of the Commission.
§ 8. Powers to promote regulatory uniformity, simplicity, and interstatecooperation.
The Commission may:
(1) Investigate or provide for investigations or research projects designedto review the existing laws and regulations of the participating states, toconsider their administration and costs, and to measure their impact on theproduction and marketing of milk and their effects on the shipment of milkand milk products within the region.
(2) Study and recommend to the participating states joint or cooperativeprograms for the administration of the dairy marketing laws and regulationsand to prepare estimates of cost savings and benefits of such programs.
(3) Encourage the harmonious relationships between the various elements inthe industry for the solution of their material problems. Conduct symposia orconferences designed to improve industry relations, or a better understandingof problems.
(4) Prepare and release periodic reports on activities and results of theCommission's efforts to the participating states.
(5) Review the existing marketing system for milk and milk products andrecommend changes in the existing structure for assembly and distribution ofmilk which may assist, improve, or promote more efficient assembly anddistribution of milk.
(6) Investigate costs and charges for producing, hauling, handling,processing, distributing, selling, and for all other services, performed withrespect to milk.
(7) Examine current economic forces affecting producers, probable trends inproduction and consumption, the level of dairy farm prices in relation tocosts, the financial conditions of dairy farmers, and the need for anemergency order to relieve critical conditions on dairy farms.
§ 9. Equitable farm prices.
(a) The powers granted in this section and § 10 shall apply only to theestablishment of a compact over-order price, so long as federal milkmarketing orders remain in effect in the region. In the event that any or allsuch orders are terminated, this article authorizes the Commission toestablish one or more commission marketing orders, as herein provided, in theregion or parts thereof as defined in the order.
(b) A compact over-order price established pursuant to this section shallapply only to Class I milk. Such compact over-order price shall not exceedone dollar and fifty cents ($1.50) per gallon at Atlanta, Georgia, however,this compact over-order price shall be adjusted upward or downward at otherlocations in the region to reflect differences in minimum federal orderprices. Beginning in 1990, and using that year as a base, the foregoing onedollar and fifty cents ($1.50) per gallon maximum shall be adjusted annuallyby the rate of change in the Consumer Price Index as reported by the Bureauof Labor Statistics of the United States Department of Labor. For purposes ofthe pooling and equalization of an over-order price, the value of milk usedin other use classifications shall be calculated at the appropriate classprice established pursuant to the applicable federal order or state dairyregulation and the value of unregulated milk shall be calculated in relationto the nearest prevailing class price in accordance with and subject to suchadjustments as the Commission may prescribe in regulations.
(c) A commission marketing order shall apply to all classes and uses of milk.
(d) The Commission may establish a compact over-order price for milk to bepaid by pool plants and partially regulated plants. The Commission also mayestablish a compact over-order price to be paid by all other handlersreceiving milk from producers located in a regulated area. This price shallbe established either as a compact over-order price or by one or morecommission marketing orders. Whenever such a price has been established byeither type of regulation, the legal obligation to pay such price shall bedetermined solely by the terms and purpose of the regulation without regardto the situs of the transfer of title, possession, or any other factors notrelated to the purposes of the regulation and this compact. Producer-handlersas defined in an applicable federal market order shall not be subject to acompact over-order price. The Commission shall provide for similar treatmentof producer-handlers under commission marketing orders.
(e) In determining the price, the Commission shall consider the balancebetween production and consumption of milk and milk products in the regulatedarea, the costs of production including, but not limited to, the price offeed, the cost of labor including the reasonable value of the producer's ownlabor and management, machinery expense and interest expense, the prevailingprice for milk outside the regulated area, the purchasing power of thepublic, and the price necessary to yield a reasonable return to the producerand distributor.
(f) When establishing a compact over-order price, the Commission shall takesuch other action as is necessary and feasible to help ensure that theover-order price does not cause or compensate producers so as to generatelocal production of milk in excess of those quantities necessary to assureconsumers of an adequate supply for fluid purposes.
(g) The Commission shall whenever possible enter into agreements with stateor federal agencies for exchange of information or services for the purposeof reducing regulatory burden and cost of administering the compact. TheCommission may reimburse other agencies for the reasonable cost of providingthese services.
§ 10. Optional provisions for pricing order.
Regulations establishing a compact over-order price or a commission marketingorder may contain, but shall not be limited to, any of the following:
(1) Provisions classifying milk in accordance with the form in which orpurpose for which it is used, or creating a flat pricing program.
(2) With respect to a commission marketing order only, provisionsestablishing or providing a method for establishing separate minimum pricesfor each use classification prescribed by the Commission, or a single minimumprice for milk purchased from producers or associations of producers.
(3) With respect to an over-order minimum price, provisions establishing orproviding a method for establishing such minimum price for Class I milk.
(4) Provisions for establishing either an over-order price or a commissionmarketing order may make use of any reasonable method for establishing suchprice or prices including flat pricing and formula pricing. Provision mayalso be made for location adjustments, zone differentials, and competitivecredits with respect to regulated handlers who market outside the regulatedarea.
(5) Provisions for the payment to all producers and associations of producersdelivering 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 whomit is delivered, or for the payment of producers delivering milk to the samehandler of uniform prices for all milk delivered by them.
a. With respect to regulations establishing a compact over-order price, theCommission may establish one equalization pool within the regulated area forthe sole purpose of equalizing returns to producers throughout the regulatedarea.
b. With respect to any commission marketing order, as defined in § 2,subdivision (3), which replaces one or more terminated federal orders orstate dairy regulation, the marketing area of now separate state or federalorders shall not be merged without the affirmative consent of each state,voting through its delegation, which is partly or wholly included within anysuch new marketing area.
(6) Provisions requiring persons who bring Class I milk into the regulatedarea to make compensatory payments with respect to all such milk to theextent necessary to equalize the cost of milk purchased by handlers subjectto a compact over-order price or commission marketing order. No suchprovisions shall discriminate against milk producers outside the regulatedarea. The provisions for compensatory payments may require payment of thedifference between the Class I price required to be paid for such milk in thestate of production by a federal milk marketing order or state dairyregulation and the Class I price established by the compact over-order priceor commission marketing order.
(7) Provisions specially governing the pricing and pooling of milk handled bypartially regulated plants.
(8) Provisions requiring that the account of any person regulated under thecompact over-order price shall be adjusted for any payments made to orreceived by such persons with respect to a producer settlement fund of anyfederal or state milk marketing order or other state dairy regulation withinthe regulated area.
(9) Provision requiring the payment by handlers of an assessment to cover thecosts of the administration and enforcement of such order pursuant tosubsection (a) of § 18 of Article VII.
(10) Provisions for reimbursement to participants of the Women, Infants andChildren Special Supplemental Food Program of the United States ChildNutrition Act of 1966.
(11) Other provisions and requirements as the Commission may find arenecessary or appropriate to effectuate the purposes of this compact and toprovide for the payment of fair and equitable minimum prices to producers.
ARTICLE V. Rule-Making Procedure.
§ 11. Rule-making procedure.
Before promulgation of any regulations establishing a compact over-orderprice or commission marketing order, including any provision with respect tomilk supply under subsection (f) of § 9, or amendment thereof, as provided inArticle IV, the Commission shall conduct an informal rule-making proceedingto provide interested persons with an opportunity to present data and views.Such rule-making proceeding shall be governed by § 4 of the FederalAdministrative Procedure Act, as amended (5 U.S.C. § 553). In addition, theCommission shall, to the extent practicable, publish notice of rule-makingproceedings in the official register of each participating state. Before theinitial adoption of regulations establishing a compact over-order price or acommission marketing order and thereafter before any amendment with regard toprices or assessments, the Commission shall hold a public hearing. TheCommission may commence a rule-making proceeding on its own initiative or mayin its sole discretion act upon the petition of any person includingindividual milk producers, any organization of milk producers or handlers,general farm organizations, consumer or public interest groups, and local,state or federal officials.
§ 12. Findings and referendum.
(a) In addition to the concise general statement of basis and purposerequired by § 4(b) of the Federal Administrative Procedure Act, as amended (5U.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 ofminimum milk prices to dairy farmers under Article IV.
(2) What level of prices will assure that producers receive a pricesufficient to cover their costs of production and will elicit an adequatesupply of milk for the inhabitants of the regulated area and formanufacturing purposes.
(3) Whether the major provisions of the order, other than those fixingminimum milk prices, are in the public interest and are reasonably designedto achieve the purposes of the order.
(4) Whether the terms of the proposed regional order or amendment areapproved by producers as provided in § 13.
§ 13. Producer referendum.
(a) For the purpose of ascertaining whether the issuance or amendment ofregulations establishing a compact over-order price or a commission marketingorder, including any provision with respect to milk supply under subsection(f) of § 9, is approved by producers, the Commission shall conduct areferendum among producers. The referendum shall be held in a timely manner,as determined by regulation of the Commission. The terms and conditions ofthe proposed order or amendment shall be described by the Commission in theballot used in the conduct of the referendum, but the nature, content, orextent of such description shall not be a basis for attacking the legality ofthe order or any action relating thereto.
(b) An order or amendment shall be deemed approved by producers if theCommission determines that it is approved by at least two-thirds of thevoting producers who, during a representative period determined by theCommission, have been engaged in the production of milk the price of whichwould be regulated under the proposed order or amendment.
(c) For purposes of any referendum, the Commission shall consider theapproval 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 marketingmilk, or in rendering services for or advancing the interests of producers ofsuch commodity, as the approval or disapproval of the producers who aremembers or stockholders in, or under contract with, such cooperativeassociation of producers, except as provided in subdivision (1) of thissubsection and subject to the provisions of subdivisions (2) through (5) ofthis subsection.
(1) No cooperative that has been formed to act as a common marketing agencyfor both cooperatives and individual producers shall be qualified to blockvote for either.
(2) Any cooperative that is qualified to block vote shall, before submittingits approval or disapproval in any referendum, give prior written notice toeach of its members as to whether and how it intends to cast its vote. Thenotice shall be given in a timely manner as established, and in the formprescribed, by the Commission.
(3) Any producer may obtain a ballot from the Commission in order to registerapproval or disapproval of the proposed order.
(4) A producer who is a member of a cooperative which has provided notice ofits intent to approve or not to approve a proposed order, and who obtains aballot and with such ballot expresses his or her approval or disapproval ofthe proposed order, shall notify the Commission as to the name of thecooperative of which he or she is a member, and the Commission shall removesuch producer's name from the list certified by such cooperative with itscorporate vote.
(5) In order to ensure that all milk producers are informed regarding aproposed order, the Commission shall notify all milk producers that an orderis being considered and that each producer may register his or her approvalor disapproval with the Commission either directly or through his or hercooperative.
§ 14. Termination of over-order price or marketing order.
(a) The Commission shall terminate any regulations establishing an over-orderprice or commission marketing order issued under this Article whenever itfinds that such order or price obstructs or does not tend to effectuate thedeclared policy of this compact.
(b) The Commission shall terminate any regulations establishing an over-orderprice or a commission marketing order issued under this Article whenever itfinds that such termination is favored by a majority of the producers who,during a representative period determined by the Commission, have beenengaged in the production of milk, the price of which is regulated by suchorder; but such termination shall be effective only if announced on or beforesuch date as may be specified in such marketing agreement or order.
(c) The termination or suspension of any order or provision thereof, shallnot be considered an order within the meaning of this Article and shallrequire no hearing, but shall comply with the requirements for informal rulemaking prescribed by § 4 of the Federal Administrative Procedure Act, asamended (5 U.S.C. § 553).
ARTICLE VI. Enforcement.
§ 15. Records, reports, access to premises.
(a) The Commission may by rule and regulation prescribe record keeping andreporting requirements for all regulated persons. For purposes of theadministration and enforcement of this compact, the Commission may examinethe books and records of any regulated person relating to his or her milkbusiness and for that purpose, the Commission's properly designated officers,employees, or agents shall have full access during normal business hours tothe 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 andnot subject to disclosure except to the extent that the Commission deemsdisclosure to be necessary in any administrative or judicial proceedinginvolving the administration or enforcement of this compact, an over-orderprice, a compact marketing order, or other regulations of the Commission. TheCommission may adopt rules further defining the confidentiality ofinformation pursuant to this section. Nothing in this section shall be deemedto prohibit (i) the issuance of general statements based upon the reports ofa number of handlers, which do not identify the information furnished by anyperson, or (ii) the publication by direction of the Commission of the name ofany person violating any regulation of the Commission, together with astatement of the particular provisions violated by such person.
(c) No officer, employee, or agent of the Commission shall intentionallydisclose information, by inference or otherwise, that is made confidentialpursuant to this section. Any person violating the provisions of this sectionshall, upon conviction, be subject to a fine of not more than one thousanddollars ($1,000) or to imprisonment for not more than one year, or both, andshall be removed from office. The Commission shall refer any allegation of aviolation of this section to the appropriate state enforcement authority orUnited States Attorney.
§ 16. Subpoena, hearings, and judicial review.
(a) The Commission is hereby authorized and empowered by its members and itsproperly designated officers to administer oaths and issue subpoenasthroughout all signatory states to compel the attendance of witnesses and thegiving of testimony and the production of other evidence.
(b) Any handler subject to an order may file a written petition with theCommission stating that any order or any provision of any such order or anyobligation imposed in connection therewith is not in accordance with law andpraying for a modification thereof or to be exempted therefrom. The handlershall thereupon be given an opportunity for a hearing upon such petition, inaccordance with regulations made by the Commission. After such hearing, theCommission shall make a ruling upon the prayer of such petition which shallbe final, if in accordance with law.
(c) The district courts of the United States in any district in which thehandler is an inhabitant, or has his or her principal place of business, arehereby vested with jurisdiction to review such ruling, provided a complaintfor that purpose is filed within 30 days from the date of the entry of theruling. Service of process in these proceedings may be had upon theCommission by delivering to it a copy of the complaint. If the courtdetermines that the ruling is not in accordance with law, it shall remandsuch proceedings to the Commission with directions either (i) to make suchruling as the court shall determine to be in accordance with law, or (ii) totake such further proceedings as, in its opinion, the law requires. Thependency of proceedings instituted pursuant to this subdivision shall notimpede, hinder, or delay the Commission from obtaining relief pursuant to §17. Any proceedings brought pursuant to § 17, except where brought by way ofcounterclaim in proceedings instituted pursuant to this section, shall abatewhenever a final decree has been rendered in proceedings between the sameparties, and covering the same subject matter, instituted pursuant to thissection.
§ 17. Enforcement with respect to handlers.
(a) Any violation by a handler of the provisions of regulation establishingan over-order price or a commission marketing order, or other regulationsadopted pursuant to this compact shall:
(1) Constitute a violation of the laws of each of the signatory states. Suchviolation shall render the violator subject to a civil penalty in an amountas may be prescribed by the laws of each of the participating states,recoverable in any state or federal court of competent jurisdiction. Each daysuch violation continues shall constitute a separate violation.
(2) Constitute grounds for the revocation of license or permit to engage inthe milk business under the applicable laws of the participating states.
(b) With respect to handlers, the Commission shall enforce the provisions ofthis compact, regulations establishing an over-order price, a commissionmarketing order or other regulations adopted hereunder by:
(1) Commencing an action for legal or equitable relief brought in the name ofthe Commission in any state or federal court of competent jurisdiction; or
(2) Referral to the state agency for enforcement by judicial oradministrative remedy with the agreement of the appropriate state agency of aparticipating state.
(c) With respect to handlers, the Commission may bring an action forinjunction to enforce the provisions of this compact or the order orregulations adopted thereunder without being compelled to allege or provethat an adequate remedy of law does not exist.
ARTICLE VII. Finance.
§ 18. Finance of start-up and regular costs.
(a) To provide for its start-up costs, the Commission may borrow moneypursuant to its general power under § 6, subsection (d), subdivision 4. Inorder to finance the cost of administration and enforcement of this compact,including payback of start-up costs, the Commission may collect an assessmentfrom each handler who purchases milk from producers within the region. Ifimposed, this assessment shall be collected on a monthly basis for up to oneyear from the date the Commission convenes, in an amount not to exceed $.015per hundred weight of milk purchased from producers during the period of theassessment. The initial assessment may apply to the projected purchases ofhandlers for the two-month period following the date the Commission convenes.In addition, if regulations establishing an over-order price or a compactmarketing order are adopted, they may include an assessment for the specificpurpose of their administration. These regulations shall provide forestablishment of a reserve for the Commission's ongoing operating expenses.
(b) The Commission shall not pledge the credit of any participating state orof the United States. Notes issued by the Commission and all other financialobligations incurred by it, shall be its sole responsibility and noparticipating state or the United States shall be liable therefor.
§ 19. Audit and accounts.
(a) The Commission shall keep accurate accounts of all receipts anddisbursements, which shall be subject to the audit and accounting proceduresestablished under its rules. In addition, all receipts and disbursements offunds handled by the Commission shall be audited yearly by a qualified publicaccountant and the report of the audit shall be included in and become partof the annual report of the Commission.
(b) The accounts of the Commission shall be open at any reasonable time forinspection by duly constituted officers of the participating states and byany persons authorized by the Commission.
(c) Nothing contained in this Article shall be construed to preventcommission compliance with laws relating to audit or inspection of accountsby or on behalf of any participating state or of the United States.
ARTICLE VIII. Entry into Force; Additional Members and Withdrawal.
§ 20. Entry into force; additional members.
The compact shall enter into force effective when enacted into law by anythree 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 andwhen the consent of Congress has been obtained.
§ 21. Withdrawal from compact.
Any participating state may withdraw from this compact by enacting a statuterepealing the same, but no such withdrawal shall take effect until one yearafter notice in writing of the withdrawal is given to the Commission and thegovernors of all the participating states. No withdrawal shall affect anyliability already incurred by or chargeable to a participating state prior tothe time of such withdrawal.
§ 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 provisiondirectly involved in the controversy in which such judgment shall have beenrendered and shall not affect or impair the validity of the remainder of thiscompact. In the event Congress consents to this compact subject toconditions, said conditions shall not impair the validity of this compactwhen said conditions are accepted by three or more compacting states. Acompact state may accept the conditions of Congress by implementation of thiscompact.
(1998, c. 706, § 3.1-461.1; 2008, c. 860.)