West Virginia Code § 19-11C-1

Enactment of compact
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The southern dairy compact is hereby entered into on behalf of the State of West Virginia.
The southern dairy compact shall become effective when enacted into law by a majority of
the states within the compact group of states and when the consent of Congress has been
obtained. The full text of the southern dairy compact is as follows:
SOUTHERN DAIRY COMPACT
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 the southern dairy
industry and the prerogative of the states under the Uanited 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 viablility 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 e conomic stimuli for rural communities.
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.
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 ordeers. 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 federaul order system be
discontinued. In that event, the interstate commission is authorized to regulate the
marketplace in replacement of the order system. This contintgent authority does not
anticipate such a change, however, and should not be so construed. It is only provided
should developments in the market other than establishment of this compact result in
discontinuance of the order system.
ARTICLE II. DEFINITIONS AND RULES OF CsONSTRUCTION.
§2. DEFINITIONS. i
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:
(a) "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.
(b) "CommissiVon" means the Southern Dairy Compact Commission established by this
compact.
(c) "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.
(d) "Compact" means this interstate compact.
(e) "Compact over-order price" means a minimum price required to be paid to producers for
Class I milk established by the commission in regulations adopted pursuant to sections nine
and ten of this compact, which is above the price established in federal marketing orders or
by state farm price regulation in the regulated area. Such price may apply throughout the
region or in any part or parts thereof as defined in the regulations of the commission.
(f) "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.
(g) "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.
(h) "Participating state" means a state which has become a party to this compact by the
enactment of concurring legislation.
(i) "Pool plant" means any milk plant located in a regulated area.u
(j) "Region" means the territorial limits of the states which are parties to this compact.
(k) "Regulated area" means any area within the regiona governed by and defined in
regulations establishing a compact over-order price or commission marketing order.
(l) "State dairy regulation" means any state regulation of dairy prices, and associated
assessments, whether by statute, marketing order or otherwise.
§3. RULES OF CONSTRUCTION.
(a) This compact shall not be construed to displace existing federal milk marketing orders or
state dairy regulation in the reegion 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 tLo replace them with one or more commission marketing orders
pursuant to this compact.
(b) This compact shall be construed liberally in order to achieve the purposes and intent
enunciated in section one. It is the intent of this compact to establish a basic structure by
which the commission may achieve those purposes through the application, adaptation and
devWelopment 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.
§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 or 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 anye, of the members
of a state delegation shall be determined and paid by each state, but their expenses shall be
paid by the commission. r
§5. VOTING REQUIREMENTS.
All actions taken by the commission, except for the establishtment 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. 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 delegastions 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 ga quorum for the conduct of the commission's business.
§6. ADMINISTRATION AND MeANAGEMENT.
(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 therefore, 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 a
(6) To create and abolish such offices, employments, and positions as it deems necessary for
the purpose 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.
§7.RULE-MAKING POWER.
In addition to the power to proemulgate 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 Lrules and regulations as it deems necessary to implement any
provisions of this compact, or to effectuate in any other respect the purpose of this compact.
ARTICLE IV. POWERS OF THE COMMISSION.
§8. POWERS TO PROMOTE REGULATORY UNIFORMITY, SIMPLICITY AND INTERSTATE
COOWPERATION.
The commission is hereby empowered to:
(a) 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.
(b) 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.
(c) 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.
(d) Prepare and release periodic reports on activities and results of the commission's efforts
to the participating states.
(e) 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.
(f) Investigate costs and charges for producing, hauling, handling, processing, distributing,
selling and for all other services performed with respect to milk.u
(g) 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 toa relieve critical conditions on dairy
farms.
§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 $1.50 per gallon at Atlanta, GA;
however, this compa ct over-order price shall be adjusted upward or downward at other
locations in thVe region to reflect differences in minimum federal order prices. Beginning in
one thousand nine hundred ninety, 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 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 purposes of the regulation without regard to the status
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 orderse.
(e) In determining the price, the commission shall consider the balancer 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 tarea, 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 enssure 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 the state or federal
agencies for exchange of inforemation or services for the purpose of reducing regulatory
burden and cost of administering the compact. The commission may reimburse other
agencies for the reasonaLble cost of providing these services.
§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 fault 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 or uniform prices for all milk delivered bey 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. u
(B) With respect to any commission marketing order, as defined in Article II, section two,
subdivision (c) of this compact, which replaces one or more terminated federal orders or
state dairy regulation, the marketing area of now sepaarate state or federal orders shall not
be merged without its delegation, which is partly or wholly included within any such new
marketing area. l
(6) Provisions requiring persons who bring Class I milk into the regulated area to make
compensatory payments with respect to alil such milk to the extent necessary to equalize the
cost of milk purchased by handlers sgubject 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 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
required 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) Provisions requiring the payment by handlers of an assessment to cover the costs of the
administration and enforcement of such order pursuant to Article VII, Section 18(a).
(10) Provisions for reimbursement to participants of the Women, Infants and Children
Special Supplement 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. RULE-MAKING PROCEDURE.
§11. RULE-MAKING 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 rule-making proceeding to provide interested persons with an
opportunity to present data and views. Such rule-making proceeding shall bee 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 noticer of rule-making
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 ta rule-making 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.
§12. FINDINGS AND REFERENDUM. s
(a) In addition to the concise general statement of basis and purpose required by section
4(b) of the Federal Administrative Pgrocedure 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 or 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.
§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 of 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 four 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 cotoperative association of
producers, except as provided in subdivision (1) hereof and subject to the provision of
subdivisions (2) through (5) hereof.
(1) No cooperative which has been formed to act asl a common marketing agency for both
cooperatives and individual producers shall bes qualified to block vote for either.
(2) Any cooperative which is qualified to bilock vote shall, before submitting its approval or
disapproval in any referendum, giveg 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 i s a member of a cooperative which has provided notice of its intent to
approve or noVt to approve a proposed order, and who obtains a ballot and with such ballot
expresses his approval or disapproval of the proposed order, shall notify the commission as
to the name of the cooperative of which he or she is a member, and the commission shall
remove such producer's name from the list certified by such cooperative with its corporate
vote.
(5) In order to insure that all milk producers are informed regarding a proposed order, the
commission shall notify all milk producers that an order is being considered and that each
producer may register his approval or disapproval with the commission either directly or
through his or her cooperative.
§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 noet be considered
an order within the meaning of this article and shall require no hearing, but shall comply
with the requirements for informal rule-making prescribed by section frour of the Federal
Administrative Procedure Act, as amended (5 U.S.C. §553).
ARTICLE VI. ENFORCEMENT.
§15. RECORDS, REPORTS, ACCESS TO PREMISES.
(a) The commission may by rule and regulation prescribe recordkeeping and reporting
requirements for all regulated persons. For purposles of the administration and enforcement
of this compact, the commission is authorizeds 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, oir agents shall have full access during normal
business hours to the premises and grecords 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
theW information furnished by any person; or (ii) the publication by direction of the
commission of the name of any person violating any regulation of the commission, together
with a statement of the particular provisions violated by such person.
(c) No officer, employee or agent of the commission shall intentionally disclose information,
by inference or otherwise, which is made confidential pursuant to this section. Any person
violating the provisions of this section shall, upon conviction, be subject to a fine of not more
than $1,000 or to imprisonment for not more than one year, or to both, and shall be removed
from office. The commission shall refer any allegation of a violation of this section to the
appropriate state enforcement authority or United States Attorney.
§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 ae 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 whrich shall be final, if in
accordance with law.
(c) The district courts or the United States in any district in which such handler is an
inhabitant, or has his principal place of business, are herebyt 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 rulings 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 commisgsion from obtaining relief pursuant to section seventeen.
Any proceedings brought pursuant to section seventeen, except where brought by way of
counterclaim in proceedings inestituted 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, instituteLd pursuant to this section.
§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
comWpact 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 provision 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) 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.
§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), paragaraph 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 lassessment 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 hundredwieight of milk purchased from producers during the
period of the assessment. The initial assessment may apply to the projected purchase 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 commissioner's ongoing
operating expenses.
(b) The commission s hall not pledge the credit of a participating state or of the United
States. Notes Vissued 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.
§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 commissioner.
(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.
§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.
§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 onae 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 incurreld by or chargeable to a participating state
prior to the 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 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 Congre ss by implementation of this compact.

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