Amend CSSB 705 as follows:
Immediately following SECTION 4 of the bill (House Committee
Report, page 10, between lines 8 and 9), insert the following
appropriately numbered SECTIONS and renumber the subsequent
SECTIONS of the bill accordingly:
SECTION ____. Subtitle D, Title 6, Agriculture Code, is
amended by adding Chapter 182 to read as follows:
CHAPTER 182. SOUTHERN DAIRY COMPACT
Sec. 182.001. DEFINITIONS. In this chapter:
(1) "Compact" means the Southern Dairy Compact.
(2) "Compact commission" means the Southern Dairy
Compact Commission established by Section 4, Article III, of the
compact.
(3) "Delegate" means a member of the delegation from
this state to the Southern Dairy Compact Commission as set forth in
Section 4, Article III, of the compact.
Sec. 182.002. DELEGATES; QUALIFICATIONS. (a) The
commissioner shall appoint one delegate to this state's delegation
to the compact commission to serve at the pleasure of the
commissioner. The commissioner may appoint the commodity crisis
manager under Chapter 60 as the delegate under this subsection. If
the commissioner appoints a person other than the commodity crisis
manager as a delegate, the commissioner's appointee must be an
employee of the department, preferably an employee with experience
with milk marketing and stabilization. The delegate serving under
this subsection shall serve as chair of the delegation from this
state.
(b) The governor shall appoint four delegates to this
state's delegation to the compact commission as follows:
(1) two delegates who must be dairy farmers engaged in
the production of milk at the time of appointment or reappointment;
(2) one delegate who must be a dairy processor engaged
in the production of milk at the time of appointment or
reappointment; and
(3) one delegate who must be a consumer
representative.
(c) Each delegate must be a resident and registered voter of
this state.
(d) A delegate is not an officer of this state by virtue of
holding the position of delegate.
Sec. 182.003. TERMS; REMOVAL; VACANCY. (a) Each delegate
serves a term of four years.
(b) Each delegate shall serve from the date of appointment
until a successor is appointed and qualified.
(c) An individual may not serve more than three consecutive
terms as a delegate.
(d) A delegate may be removed for cause.
Sec. 182.004. EFFECTIVE DATE OF COMPACT; SUNSET PROVISION.
(a) The compact shall become effective when:
(1) the governor has executed the compact in a form
substantially similar to that contained in Section 182.005 on
behalf of this state and has filed a verified copy of the compact
with the secretary of state;
(2) the United States Congress has consented to the
compact; and
(3) two or more of the other states named in Section
20, Article VIII, of the compact, have ratified the compact in a
form substantially similar to that contained in Section 182.005.
(b) The governor shall take such action as may be necessary
to complete the exchange of official documents between this state
and any other state ratifying the compact.
(c) This state's delegation to the compact commission is
subject to Chapter 325, Government Code (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the state's
delegation to the commission is abolished and this chapter expires
September 1, 2003.
Sec. 182.005. COMPACT TO BE ENTERED; TEXT. Subject to
Section 182.004, the Southern Dairy Compact is hereby entered into
and enacted into law 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.
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 the United States Congress, under the compact clause of the
United States Constitution.
In establishing their constitutional regulatory authority
over the region's fluid milk market by this compact, the
participating states declare their purpose that this compact
neither displace the federal order system nor encourage the merging
of federal orders. Specific provisions of the compact itself set
forth this basic principle.
Designed as a flexible mechanism able to adjust to changes in
a regulated marketplace, the compact also contains a contingency
provision should the federal order system be discontinued. In that
event, the interstate commission is authorized to regulate the
marketplace in replacement of the order system. This contingent
authority does not anticipate such a change, however, and should
not be so construed. It is only provided should developments in
the market other than establishment of this compact result in
discontinuance of the order system.
ARTICLE II. DEFINITIONS AND RULES OF CONSTRUCTION
Sec. 2. DEFINITIONS. For the purposes of this compact, and
of any supplemental or concurring legislation enacted pursuant
thereto, except as may be otherwise required by the context:
(1) "Class I milk" means milk disposed of in fluid
form or as a fluid milk product, subject to further definition in
accordance with the principles expressed in Subsection (b) of
Section 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 9 and 10 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 9 and 10
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.
(6) "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.
(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) This compact shall be construed liberally in order to
achieve the purposes and intent enunciated in Section 1. 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 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 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 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 18 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 10 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, Georgia;
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 1990, and using that
year as a base, the foregoing $1.50 per gallon maximum shall be
adjusted annually by the rate of change in the Consumer Price Index
as reported by the Bureau of Labor Statistics of the 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 2, Subdivision three, which replaces
one or more terminated federal orders or state dairy regulation,
the marketing area of now separate state or federal orders shall
not be merged without the affirmative consent of each state, voting
through its delegation, which is partly or wholly included within
any such new marketing area.
(6) provisions requiring persons who bring Class I
milk into the regulated area to make compensatory payments with
respect to all such milk to the extent necessary to equalize the
cost of milk purchased by handlers subject to a compact over-order
price or commission marketing order. No such provisions shall
discriminate against milk producers outside the regulated area.
The provisions for compensatory payments may require payment of the
difference between the Class I price required to be paid for such
milk in the state of production by a federal milk marketing order
or state dairy regulation and the Class I price established by the
compact over-order price or commission marketing order;
(7) provisions specially governing the pricing and
pooling of milk handled by partially regulated plants;
(8) provisions requiring that the account of any
person regulated under 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 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 4 of the federal Administrative Procedure Act,
as amended (5 U.S.C. Section 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. 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. Section 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 that 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 13.
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
Section 9(f) of this compact, is approved by producers, the
commission shall conduct a referendum among producers. The
referendum shall be held in a timely manner, as determined by
regulation of the commission. The terms and conditions of the
proposed order or amendment shall be described by the commission in
the ballot used in the conduct of the referendum, but the nature,
content, or extent of such description shall not be a basis for
attacking the legality of the order or any action relating thereto.
(b) An order or amendment shall be deemed approved by
producers if the commission determines that it is approved by at
least two-thirds of the voting producers who, during a
representative period determined by the commission, have been
engaged in the production of milk, the price of which would be
regulated under the proposed order or amendment.
(c) For purposes of any referendum, the commission shall
consider the approval or disapproval by any cooperative association
of producers, qualified under the provisions of the Act of Congress
of February 18, 1922, as amended, known as the Capper-Volstead Act,
bona fide engaged in marketing milk, or in rendering services for
or advancing the interests of producers of such commodity, as the
approval or disapproval of the producers who are members or
stockholders in, or under contract with, such cooperative
association of producers, except as provided in Subdivision (1)
hereof and subject to the provisions of Subdivisions (2) through
(5) hereof.
(1) No cooperative which has been formed to act as a
common marketing agency for both cooperatives and individual
producers shall be qualified to block vote for either.
(2) Any cooperative which is qualified to block vote
shall, before submitting its approval or disapproval in any
referendum, give prior written notice to each of its members as to
whether and how it intends to cast its vote. The notice shall be
given in a timely manner as established and in the form prescribed
by the commission.
(3) Any producer may obtain a ballot from the
commission in order to register approval or disapproval of the
proposed order.
(4) A producer who is a member of a cooperative which
has provided notice of its intent to approve or not to approve a
proposed order, and who obtains a ballot and with such ballot
expresses his approval or disapproval of the proposed order, shall
notify the commission as to the name of the cooperative of which he
or she is a member, and the commission shall remove such producer's
name from the list certified by such cooperative with its corporate
vote.
(5) In order to ensure that all milk producers are
informed regarding a proposed order, the commission shall notify
all milk producers that an order is being considered and that each
producer may register his 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 4 of the
federal Administrative Procedure Act, as amended (5 U.S.C. Section
553).
ARTICLE VI. ENFORCEMENT
Sec. 15. RECORDS, REPORTS, ACCESS TO PREMISES. (a) The
commission may by rule and regulation prescribe recordkeeping 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 commission
officers, employees, or its agents pursuant to this section shall
be confidential and not subject to disclosure except to the extent
that the commission deems disclosure to be necessary in any
administrative or judicial proceeding involving the administration
or enforcement of this compact, an over-order price, a compact
marketing order, or other regulations of the commission. The
commission may promulgate regulations further defining the
confidentiality of information pursuant to this section. Nothing
in this section shall be deemed to prohibit (i) the issuance of
general statements based upon the reports of a number of handlers
which do not identify the information furnished by any person, or
(ii) the publication by direction of the commission of the name of
any person violating any regulation of the commission, together
with a statement of the particular provisions violated by such
person.
(c) No officer, employee, or agent of the commission shall
intentionally disclose information, by inference or otherwise,
which is made confidential pursuant to this section. Any person
violating the provisions of this section shall, upon conviction, be
subject to a fine of not more than $1,000 or to imprisonment for
not more than one year, or 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 the
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 30
days from the date of the entry of such ruling. Service of process
in such proceedings may be had upon the commission by delivering to
it a copy of the 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 subsection shall not impede, hinder, or delay the
commission from obtaining relief pursuant to Section 17. Any
proceedings brought pursuant to Section 17, 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 a license
or permit to engage in the milk business under the applicable laws
of the participating states.
(b) With respect to handlers, the commission shall enforce
the provisions of this compact, regulations establishing an
over-order price, a commission marketing order, or other
regulations adopted hereunder by:
(1) commencing an action for legal or equitable relief
brought in the name of the commission in any state or federal court
of competent jurisdiction; or
(2) 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 6, Subdivision (d),
Paragraph 4. In order to finance the costs of administration and
enforcement of this compact, including payback of start-up costs,
the commission is hereby empowered to collect an assessment from
each handler who purchases milk from producers within the region.
If imposed, this assessment shall be collected on a monthly basis
for up to one year from the date the commission convenes, in an
amount not to exceed $.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 the United States 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 before 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.
SECTION ____. Section 12.020(c), Agriculture Code, is
amended to read as follows:
(c) The provisions of this code subject to this section and
the applicable penalty amounts are as follows:
Provision Maximum Penalty
Chapters 13, 14, 18, 61, 94, 95
101, 102, 103, 121, 125, 132,
<and> 134, and 182 $500
Subchapter B, Chapter 71
Chapter 19 $2,000
Chapters 75 and 76
Subchapters A and C, Chapter 71
Chapters 72, 73, and 74 $5,000.