Agriculture_Markets
Andrew M. Cuomo, Governor | Richard A. Ball, Commissioner
 
 

New York State Consolidated Laws

Agriculture & Markets

                              ARTICLE 21-C
                   NORTHEAST INTERSTATE DAIRY COMPACT
Section 258-kk. Northeast interstate dairy compact.
        258-ll. New York delegation to compact commission.
        258-mm. Compact order violations.
        258-nn. New York delegation; limitation on voting.

  S  258-kk.  Northeast  interstate dairy compact.  The northeast inter-
state dairy compact as set forth in this article is hereby  adopted  and
entered  into  with all jurisdictions joining therein. The compact is as
follows:
                   NORTHEAST INTERSTATE DAIRY COMPACT
  ARTICLE I. STATEMENT OF PURPOSE, FINDINGS AND DECLARATION OF POLICY
  S 1.  Statement of purpose, findings and declaration of policy.
  ARTICLE II. DEFINITIONS AND RULES OF CONSTRUCTION
  S 2.  Definitions.
  S 3.  Rules of construction.
  ARTICLE III. COMMISSION ESTABLISHED
  S 4.  Commission established.
  S 5.  Voting requirements.
  S 6.  Administration and management.
  S 7.  Rulemaking power.
  ARTICLE IV. POWERS OF THE COMMISSION
  S 8.  Powers to promote regulatory uniformity, simplicity, and  inter-
state cooperation.
  S 9.  Equitable farm prices.
  S 10. Optional provisions for pricing order.
  ARTICLE V. RULEMAKING PROCEDURE
  S 11. Rulemaking procedure.
  S 12. Findings and referendum.
  S 13. Producer referendum.
  S 14. Termination of over-order price or marketing order.
  ARTICLE VI. ENFORCEMENT
  S 15. Records, reports, access to premises.
  S 16. Subpoena, hearings and judicial review.
  S 17. Enforcement with respect to handlers.
  ARTICLE VII. FINANCE
  S 18. Finance of start-up and regular costs.
  S 19. Audit and accounts.
  ARTICLE VIII. ENTRY INTO FORCE; ADDITIONAL MEMBERS AND WITHDRAWAL
  S 20. Entry into force; additional members.
  S 21. Withdrawal from compact.
  S 22. Severability.
  S 23. Reservation of rights.
   ARTICLE I. STATEMENT OF PURPOSE, FINDINGS AND DECLARATION OF POLICY
  S 1. Statement of purpose, findings and declaration of policy.
  The  purpose of this compact is to recognize by constitutional prereq-
uisite the interstate character of the northeast dairy industry  and  to
form  an interstate commission for the northeast region.  The mission of
the commission is to take such steps as  are  necessary  to  assure  the
continued  viability  of  dairy  farming in the northeast, and to assure
consumers of an adequate, local supply of pure and wholesome milk.
  The participating states find and declare that the dairy  industry  is
the  paramount  agricultural activity of the northeast. Dairy farms, and
associated suppliers, marketers, processors and retailers, are an  inte-
gral  component  of  the  region`s  economy.  Their ability to provide a
stable, local supply of pure, wholesome milk is a matter of great impor-
tance to the health and welfare of the region.
  The participating states further find that dairy farms  are  essential
to the region`s rural communities and character. The farms preserve open
spaces,  sculpt  the landscape and provide the land base for a diversity
of recreational pursuits. In defining the rural character of our  commu-
nities  and  landscape,  dairy  farms  also provide a major draw for our
tourist industries.
  By entering into this compact, the participating  states  affirm  that
their  ability  to  regulate  the  price  which  northeast dairy farmers
receive for their product is essential to the public interest. Assurance
of a fair and equitable price for dairy farmers ensures their ability to
provide  milk  to  the  market  and  the vitality of the northeast dairy
industry, with all the associated benefits.
  Recent, dramatic price fluctuations, with a pronounced downward trend,
threaten the viability and stability  of  the  northeast  dairy  region.
Historically,  individual  state regulatory action has been an effective
emergency remedy available to farmers confronting a  distressed  market.
The  federal  order  system,  implemented  by the Agricultural Marketing
Agreement Act  of  1937,  establishes  only  minimum  prices  for  dairy
products, without preempting the power of states to regulate milk prices
above  the  minimum levels so established. Based on this authority, each
state in the region has individually attempted to implement at least one
regulatory program in response to the current dairy industry crisis.
  In today`s regional dairy marketplace, cooperative, rather than  indi-
vidual  state  action  may address more effectively the market disarray.
Under our constitutional  system,  properly  authorized,  states  acting
cooperatively  may  exercise  more power to regulate interstate commerce
than they may assert  individually  without  such  authority.  For  this
reason, the participating states invoke their authority to act in common
agreement, with the consent of congress, under the compact clause of the
constitution.
  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 regu-
lated 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
  S 2. Definitions.
  For the purposes of this compact, and of any supplemental  or  concur-
ring  legislation  enacted  pursuant thereto, except as may be otherwise
required by the context:
  (a) "Commission" means the commission established by this compact.
  (b) "Compact" means this interstate compact.
  (c) "Region" means the territorial limits of the states which  are  or
become parties to this compact.
  (d)  "Participating  state"  means a state which has become a party to
this compact by the enactment of concurring legislation.
  (e) "Regulated area" means any area within the region governed by  and
defined  in  regulations  establishing  a  compact  over-order  price or
commission marketing order.
  (f) "Pool plant" means any milk plant located in a regulated area.
  (g) "Partially regulated plant" means a milk plant not  located  in  a
regulated  area  but  having  class  I distribution within such area, or
receipts from producers located in such area.    Commission  regulations
may  exempt  plants having such distribution or receipts in amounts less
than the limits defined therein.
  (h) "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.
  (i)  "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.
  (j) "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.
  (k)  "Class I milk" means milk disposed of in fluid form or as a fluid
milk product, subject to further definition in accordance with the prin-
ciples expressed in subdivision (b) of section three of this compact.
  (l) "State dairy regulation" means any state regulation of dairy pric-
es, and associated assessments, whether by statute, marketing  order  or
otherwise.
  S  3.  Rules of construction.  (a) This compact shall not be construed
to displace existing federal milk marketing orders or state dairy  regu-
lation  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 one of this compact. It is the
intent  of  this  compact  to  establish  a basic structure by which the
commission may achieve those purposes through the  application,  adapta-
tion  and  development of the regulatory techniques historically associ-
ated 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
  S 4. Commission established.
  There is hereby  created  a  commission  to  administer  the  compact,
composed  of  delegations  from  each  state in the region. 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  repres-
ented.  The  compensation,  if any, of the members of a state delegation
shall be determined and paid by each state, but their expenses shall  be
paid  by  the commission. Each state delegation shall be entitled to one
vote in the conduct of the commission`s affairs.
  S 5. Voting requirements.
  All  actions  taken by the commission, except for the establishment or
termination of an over-order price or commission  marketing  order,  and
the adoption, amendment or rescission of the commission`s by-laws, shall
be  by majority vote of the delegations present. Establishment or termi-
nation 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  partic-
ipating  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.
  S 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 commis-
sion may establish through its by-laws an executive  committee  composed
of one member elected by each delegation.
  (b) The commission shall adopt by-laws for the conduct of its business
by a two-thirds vote, and shall have the power by the same vote to amend
and  rescind  these by-laws. The commission shall publish its by-laws in
convenient form with the appropriate agency or officer in  each  of  the
participating  states.  The by-laws shall provide for appropriate notice
to the delegations of all commission meetings and hearings  and  of  the
business  to  be  transacted  at  such meetings or hearings. Notice also
shall be given to other agencies or officers of participating states  as
provided by the laws of those states.
  (c)  The  commission shall file an annual report with the secretary of
agriculture of the United States, and with  each  of  the  participating
states by submitting copies to the governor, both houses of the legisla-
ture,  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  corpo-
rate 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 secu-
rity therefor, subject to the provisions of  section  eighteen  of  this
compact;
  (5)  to  appoint  such  officers, agents, and employees as it may deem
necessary, prescribe their powers, duties, and qualifications; and
  (6) to create and abolish such offices, employments, and positions  as
it  deems  necessary for the purposes of the compact and provide for the
removal, term,  tenure,  compensation,  fringe  benefits,  pension,  and
retirement rights of its officers and employees. The commission may also
retain personal services on a contract basis.
  S 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 regu-
lations  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
  S  8.  Powers to promote regulatory uniformity, simplicity, and inter-
state cooperation.
  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 participat-
ing 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)  Prepare and transmit to the participating states model dairy laws
and regulations dealing with the inspection of farms and  plants,  sani-
tary  codes,  labels  for dairy products and their imitations, standards
for dairy products, license standards, producer security  programs,  and
fair trade laws.
  (c)  Study  and recommend to the participating states joint or cooper-
ative programs for the administration of the dairy laws and  regulations
and to prepare estimates of cost savings and benefits of such programs.
  (d)   Encourage  the  harmonious  relationships  between  the  various
elements in the industry for the solution of  their  material  problems.
Conduct   symposiums   or   conferences  designed  to  improve  industry
relations, or a better understanding of problems.
  (e) Prepare and release periodic reports on activities and results  of
the commission`s efforts to the participating states.
  (f)  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 effi-
cient assembly and distribution of milk.
  (g) Investigate costs and charges for  producing,  hauling,  handling,
processing,  distributing,  selling and for all other services performed
with respect to milk.
  (h) 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.
  S 9. Equitable farm prices.
  (a) The powers granted in this section and section ten of this compact
shall apply only to the establishment of a compact over-order price,  so
long as federal milk marketing orders remain in effect in the region. In
the event that any or all such orders are terminated, this article shall
authorize  the  commission to establish one or more commission marketing
orders, as herein provided, in the region or parts thereof as defined in
the order.
  (b) A compact over-order price established pursuant  to  this  section
shall apply only to class I milk. Such over-order price shall not exceed
one  dollar  and  fifty  cents per gallon. Beginning in nineteen hundred
ninety, and using that year as a base,  the  foregoing  one  dollar  and
fifty cents per gallon maximum shall be adjusted annually by the rate of
change  in  the  consumer price index as reported by the Bureau of Labor
Statistics of the United States Department of Labor. For purposes of the
pooling and equalization of an over-order price, the value of milk  used
in  other  use  classifications  shall  be calculated at the appropriate
class price established pursuant to  the  applicable  federal  order  or
state dairy regulation and the value of unregulated milk shall be calcu-
lated  in  relation  to the nearest prevailing class price in accordance
with and subject to such adjustments as the commission may prescribe  in
regulations.
  (c)  A  commission marketing order shall apply to all classes and uses
of milk.
  (d) The commission is hereby empowered to establish the minimum  price
for  milk  to be paid by pool plants, partially regulated plants and all
other handlers receiving milk from  producers  located  in  a  regulated
area.  This  price  shall  be established either as a compact over-order
price or by one or more commission marketing  orders.  Whenever  such  a
price has been established by either type of regulation, the legal obli-
gation  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 action as necessary and feasible to ensure that the over-order
price  does not create an incentive for producers to generate additional
supplies of milk.
  (g) The commission shall whenever possible enter into agreements  with
state  or  federal  agencies for exchange of information or services for
the purpose of reducing regulatory burden and cost of administering  the
compact.  The commission may reimburse other agencies for the reasonable
cost of providing these services.
  S 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:
  (a) Provisions classifying milk in accordance with the form  in  which
or purpose for which it is used, or creating a flat pricing program.
  (b)  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.
  (c) With respect to an over-order minimum price, provisions establish-
ing  or providing a method for establishing such minimum price for class
I milk.
  (d) 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.
  (e)  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 individ-
ual 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.
  (1)  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.
  (2) With respect to any commission  marketing  order,  as  defined  in
subdivision  (i)  of  section two of this compact, 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.
  (f) Provisions requiring persons who bring class I milk into the regu-
lated 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  estab-
lished by the compact over-order price or commission marketing order.
  (g)  Provisions  specially  governing  the pricing and pooling of milk
handled by partially regulated plants.
  (h) Provisions requiring that the  account  of  any  person  regulated
under a compact over-order price shall be adjusted for any payments made
to  or  received  by  such persons with respect to a producer settlement
fund of any federal or state milk marketing order or other  state  dairy
regulation within the regulated area.
  (i)  Provisions  requiring the payment by handlers of an assessment to
cover the costs of the administration  and  enforcement  of  such  order
pursuant to subdivision (a) of section eighteen of this compact.
  (j) Provisions for reimbursement to participants of the Women, Infants
and  Children  Special  Supplemental  Food  Program of the United States
Child Nutrition Act of 1966.
  (k) 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
  S 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 subdivision (f) of section nine of this
compact, or amendment  thereof,  as  provided  in  article  IV  of  this
compact,  the commission shall conduct an informal rulemaking proceeding
to provide interested persons with an opportunity to  present  data  and
views.  Such  rulemaking proceeding shall be governed by section four of
the Federal Administrative Procedure Act,  as  amended  (5  U.S.C.  Sec.
553).  In  addition,  the  commission  shall, to the extent practicable,
publish notice of rulemaking proceedings in  the  official  register  of
each  participating  state.  Before  the initial adoption of regulations
establishing a compact over-order price or a commission marketing  order
and  thereafter  before  any  amendment with regard to prices or assess-
ments, 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.
  S 12. Findings and referendum.
  (a)  In addition to the concise general statement of basis and purpose
required by section 4(b) of the Federal Administrative Procedure Act, as
amended (5 U.S.C. Sec. 553(c)), the commission shall  make  findings  of
fact with respect to:
  (1) Whether the public interest will be served by the establishment of
minimum milk prices to dairy farmers under article IV of this compact.
  (2)  What  level  of prices will assure that producers receive a price
sufficient to cover  their  costs  of  production  and  will  elicit  an
adequate  supply  of  milk for the inhabitants of the regulated area and
for manufacturing purposes.
  (3) Whether the major provisions of the order, other than those fixing
minimum milk prices, are in  the  public  interest  and  are  reasonably
designed to achieve the purposes of the order.
  (4)  Whether the terms of the proposed regional order or amendment are
approved by producers as provided in section thirteen of this compact.
  S 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  subdivision  (f)  of section nine 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 regu-
lation 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  eigh-
teen,  nineteen hundred twenty-two, as amended, known as the Capper-Vol-
stead 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 paragraph one of this subdivision and  subject  to
the  provisions of paragraphs two, three, four and five of this subdivi-
sion:
  (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 estab-
lished, 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  commis-
sion  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 or her
approval  or  disapproval with the commission either directly or through
his or her cooperative.
  S 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 arti-
cle 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 effec-
tive only if announced on or before such date as  may  be  specified  in
such marketing agreement or order.
  (c)  The  termination or suspension of any order or provision thereof,
shall not be considered an order within the meaning of this article  and
shall  require  no  hearing,  but shall comply with the requirements for
informal rulemaking prescribed by section four of the  Federal  Adminis-
trative Procedure Act, as amended (5 U.S.C. Sec. 553).
                         ARTICLE VI. ENFORCEMENT
  S 15. Records, reports, access to premises.
  (a) The commission may by rule and regulation prescribe record keeping
and  reporting  requirements  for all regulated persons. For purposes of
the administration and enforcement of this compact,  the  commission  is
authorized  to  examine  the  books  and records of any regulated person
relating to his or her milk business and for that purpose,  the  commis-
sion`s  properly  designated  officers,  employees, or agents shall have
full access during normal business hours to the premises and records  of
all regulated persons.
  (b)  Information  furnished to or acquired by the commission officers,
employees, or its agents pursuant to this section shall be  confidential
and  not  subject to disclosure except to the extent that the commission
deems disclosure to be  necessary  in  any  administrative  or  judicial
proceeding  involving the administration or enforcement of this compact,
an over-order price, a compact marketing order, or other regulations  of
the commission. The commission may promulgate regulations further defin-
ing the confidentiality of information pursuant to this section. Nothing
in  this section shall be deemed to prohibit (1) 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 (2) 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  partic-
ular provisions violated by such person.
  (c)  No  officer,  employee,  or  agent of the commission shall inten-
tionally disclose information, by inference or otherwise, which is  made
confidential   pursuant  to  this  section.  Any  person  violating  the
provisions of this section shall upon conviction be subject to a fine of
not more than one thousand dollars or by imprisonment for not more  than
one  year,  or by both, and shall be removed from office. The commission
shall refer any allegation of a violation of this section to the  appro-
priate state enforcement authority or United States attorney.
  S 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 in equity to review such ruling,
provided a bill in equity 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 bill of complaint. If the court determines that such ruling  is  not
in  accordance with law, it shall remand such proceedings to the commis-
sion with directions either (1) to make such ruling as the  court  shall
determine  to  be  in  accordance  with law, or (2) to take such further
proceedings as, in its  opinion,  the  law  requires.  The  pendency  of
proceedings  instituted  pursuant  to this subdivision shall not impede,
hinder, or delay  the  commission  from  obtaining  relief  pursuant  to
section  seventeen of this compact.  Any proceedings brought pursuant to
section seventeen of this compact (except where brought by way of  coun-
terclaim 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.
  S 17. Enforcement with respect to handlers.
  (a) Any violation by a handler of the provisions of regulations estab-
lishing  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  consti-
tute 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 participat-
ing 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  here-
under 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 juris-
diction; or
  (2) With the agreement of the appropriate state agency  of  a  partic-
ipating  state, by referral to the state agency for enforcement by judi-
cial or administrative remedy.
  (c)  With  respect to handlers, the commission may bring an action for
injunction to enforce the provisions of this compact  or  the  order  or
regulations  adopted  thereunder  without  being  compelled to allege or
prove that an adequate remedy of law does not exist.
                          ARTICLE VII. FINANCE
  S 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 paragraph four of subdivision (d) of
section six of this compact.  In order to finance the costs of  adminis-
tration  and  enforcement of this compact, including payback of start-up
costs, the commission is hereby empowered to collect an assessment  from
each  handler  who  purchases  milk from producers within the region. If
imposed, this assessment shall be collected on a monthly basis for up to
one year from the date the commission convenes,  in  an  amount  not  to
exceed  one-tenth  of one percent of the applicable federal market order
blend price per hundredweight of milk purchased  from  producers  during
the  period  of  the assessment. The initial assessment may apply to the
projected purchases of handlers for the two-month period  following  the
date  the  commission convenes. In addition, if regulations establishing
an over-order price or a compact marketing order are adopted,  they  may
include  an assessment for the specific purpose of their administration.
These regulations shall provide for establishment of a reserve  for  the
commission`s ongoing operating expenses.
  (b)  The  commission  shall not pledge the credit of any participating
state or of the United States. Notes issued by the  commission  and  all
other  financial obligations incurred by it, shall be its sole responsi-
bility and no participating state or the United States shall  be  liable
therefor.
  S 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 proce-
dures 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
  S 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  Connecticut,  Dela-
ware,  Maine,  Maryland,  Massachusetts,  New Hampshire, New Jersey, New
York, Pennsylvania, Rhode Island, Vermont  and  Virginia  and  when  the
consent  of  congress has been obtained. This compact shall also be open
to states which are contiguous to any of the named states  and  open  to
states which are contiguous to participating states.
  S 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 with-
drawal shall affect any liability already incurred by or chargeable to a
party state prior to the time of such withdrawal.
  S 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.
  Congress  reserves  the  right  to  amend  or  rescind this interstate
compact at any time.
  S 23. Reservation of rights.
  (a) In general. The right to alter, amend, or repeal this  compact  is
expressly reserved.
  (b)  Compensation  requirement. When an over-order price is in effect,
the commission established in this compact shall compensate the  commod-
ity credit corporation before the end of the fiscal year for the cost of
any  increased  commodity credit corporation dairy purchases that result
from projected increased fluid milk  production  for  that  fiscal  year
within  the  compact  region  in  excess of the national average rate of
increase.

  S  258-ll. New York delegation to compact commission. (a) The New York
delegation to the northeast interstate compact commission shall  consist
of  five  persons,  at  least one of whom shall be a dairy farmer who is
engaged in the production of milk at the time of  appointment  or  reap-
pointment  and  one of whom shall be representative of consumers` inter-
ests. One member shall be appointed by the governor, one by  the  tempo-
rary  president of the senate, one by the minority leader of the senate,
one by the speaker of the assembly and one by the minority leader of the
assembly. Members shall serve for a term of three years, except that the
members first appointed by the temporary president of the senate and the
speaker of the assembly shall serve for a term  of  two  years  and  the
members  first  appointed  by  the minority leader of the senate and the
minority leader of the assembly shall serve for a term of one year.
  (b) The members of the delegation shall receive compensation for their
services of three hundred dollars per diem.
  (c) The department and any other  agency  of  the  state  shall,  when
called upon, provide the members with cooperation, information and staff
support.

  S 258-mm. Compact order violations. Any violation of the provisions of
regulations  adopted  pursuant to the northeast interstate dairy compact
establishing an over-order price, a commission marketing order,  or  any
other  regulations,  shall  constitute  a violation of this chapter. Any
such violation shall be subject to the  civil  penalties  prescribed  by
section thirty-nine of this chapter. In addition, all the administrative
and  judicial sanctions and remedies prescribed for a violation of arti-
cle twenty-one of this chapter shall apply to any such violation.

  S  258-nn.  New  York  delegation;  limitation on voting. The New York
delegation to the northeast interstate dairy compact commission, or  any
member  thereof, shall not vote to include all or part of New York state
as part of a regulated area, as that term is defined in subdivision  (e)
of  section two of article two of the northeast interstate dairy compact
set forth in section two hundred fifty-eight-kk of this article, if  the
compact  over-order  price  regulation or commission marketing order for
such regulated area would establish a price for class I milk in  all  or
part of New York state which is in excess of the highest price for class
I  milk  in the New York-New Jersey marketing area at any time up to the
effective date of this section, as calculated by the market  administra-
tor in the New York-New Jersey milk marketing area, 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.