N.Y. AGM Law § 258-KK — New York Code / Act AGM / Article 21-C / Section 258-KK
Northeast interstate dairy compact
Status: in_force

§ 258-kk. Northeast interstate dairy compact.  The northeast\ninterstate dairy compact as set forth in this article is hereby adopted\nand entered into with all jurisdictions joining therein. The compact is\nas follows:\n                   NORTHEAST INTERSTATE DAIRY COMPACT\n  ARTICLE I. STATEMENT OF PURPOSE, FINDINGS AND DECLARATION OF POLICY\n  § 1.  Statement of purpose, findings and declaration of policy.\n  ARTICLE II. DEFINITIONS AND RULES OF CONSTRUCTION\n  § 2.  Definitions.\n  § 3.  Rules of construction.\n  ARTICLE III. COMMISSION ESTABLISHED\n  § 4.  Commission established.\n  § 5.  Voting requirements.\n  § 6.  Administration and management.\n  § 7.  Rulemaking power.\n  ARTICLE IV. POWERS OF THE COMMISSION\n  § 8.  Powers to promote regulatory uniformity, simplicity, and inter-\nstate cooperation.\n  § 9.  Equitable farm prices.\n  § 10. Optional provisions for pricing order.\n  ARTICLE V. RULEMAKING PROCEDURE\n  § 11. Rulemaking procedure.\n  § 12. Findings and referendum.\n  § 13. Producer referendum.\n  § 14. Termination of over-order price or marketing order.\n  ARTICLE VI. ENFORCEMENT\n  § 15. Records, reports, access to premises.\n  § 16. Subpoena, hearings and judicial review.\n  § 17. Enforcement with respect to handlers.\n  ARTICLE VII. FINANCE\n  § 18. Finance of start-up and regular costs.\n  § 19. Audit and accounts.\n  ARTICLE VIII. ENTRY INTO FORCE; ADDITIONAL MEMBERS AND WITHDRAWAL\n  § 20. Entry into force; additional members.\n  § 21. Withdrawal from compact.\n  § 22. Severability.\n  § 23. Reservation of rights.\n   ARTICLE I. STATEMENT OF PURPOSE, FINDINGS AND DECLARATION OF POLICY\n  § 1. Statement of purpose, findings and declaration of policy.\n  The purpose of this compact is to recognize by constitutional\nprerequisite the interstate character of the northeast dairy industry\nand to form an interstate commission for the northeast region.  The\nmission of the commission is to take such steps as are necessary to\nassure the continued viability of dairy farming in the northeast, and to\nassure consumers of an adequate, local supply of pure and wholesome\nmilk.\n  The participating states find and declare that the dairy industry is\nthe paramount agricultural activity of the northeast. Dairy farms, and\nassociated suppliers, marketers, processors and retailers, are an\nintegral component of the region's economy. Their ability to provide a\nstable, local supply of pure, wholesome milk is a matter of great\nimportance to the health and welfare of the region.\n  The participating states further find that dairy farms are essential\nto the region's rural communities and character. The farms preserve open\nspaces, sculpt the landscape and provide the land base for a diversity\nof recreational pursuits. In defining the rural character of our\ncommunities and landscape, dairy farms also provide a major draw for our\ntourist industries.\n  By entering into this compact, the participating states affirm that\ntheir ability to regulate the price which northeast dairy farmers\nreceive for their product is essential to the public interest. Assurance\nof a fair and equitable price for dairy farmers ensures their ability to\nprovide milk to the market and the vitality of the northeast dairy\nindustry, with all the associated benefits.\n  Recent, dramatic price fluctuations, with a pronounced downward trend,\nthreaten the viability and stability of the northeast dairy region.\nHistorically, individual state regulatory action has been an effective\nemergency remedy available to farmers confronting a distressed market.\nThe federal order system, implemented by the Agricultural Marketing\nAgreement Act of 1937, establishes only minimum prices for dairy\nproducts, without preempting the power of states to regulate milk prices\nabove the minimum levels so established. Based on this authority, each\nstate in the region has individually attempted to implement at least one\nregulatory program in response to the current dairy industry crisis.\n  In today's regional dairy marketplace, cooperative, rather than\nindividual state action may address more effectively the market\ndisarray. Under our constitutional system, properly authorized, states\nacting cooperatively may exercise more power to regulate interstate\ncommerce than they may assert individually without such authority. For\nthis reason, the participating states invoke their authority to act in\ncommon agreement, with the consent of congress, under the compact clause\nof the constitution.\n  In establishing their constitutional regulatory authority over the\nregion's fluid milk market by this compact, the participating states\ndeclare their purpose that this compact neither displace the federal\norder system nor encourage the merging of federal orders.  Specific\nprovisions of the compact itself set forth this basic principle.\n  Designed as a flexible mechanism able to adjust to changes in a\nregulated marketplace, the compact also contains a contingency provision\nshould the federal order system be discontinued. In that event, the\ninterstate commission is authorized to regulate the marketplace in\nreplacement of the order system. This contingent authority does not\nanticipate such a change, however, and should not be so construed. It is\nonly provided should developments in the market other than establishment\nof this compact result in discontinuance of the order system.\n            ARTICLE II. DEFINITIONS AND RULES OF CONSTRUCTION\n  § 2. Definitions.\n  For the purposes of this compact, and of any supplemental or\nconcurring legislation enacted pursuant thereto, except as may be\notherwise required by the context:\n  (a) "Commission" means the commission established by this compact.\n  (b) "Compact" means this interstate compact.\n  (c) "Region" means the territorial limits of the states which are or\nbecome parties to this compact.\n  (d) "Participating state" means a state which has become a party to\nthis compact by the enactment of concurring legislation.\n  (e) "Regulated area" means any area within the region governed by and\ndefined in regulations establishing a compact over-order price or\ncommission marketing order.\n  (f) "Pool plant" means any milk plant located in a regulated area.\n  (g) "Partially regulated plant" means a milk plant not located in a\nregulated area but having class I distribution within such area, or\nreceipts from producers located in such area.  Commission regulations\nmay exempt plants having such distribution or receipts in amounts less\nthan the limits defined therein.\n  (h) "Compact over-order price" means a minimum price required to be\npaid to producers for class I milk established by the commission in\nregulations adopted pursuant to sections nine and ten of this compact,\nwhich is above the price established in federal marketing orders or by\nstate farm price regulation in the regulated area. Such price may apply\nthroughout the region or in any part or parts thereof as defined in the\nregulations of the commission.\n  (i) "Commission marketing order" means regulations adopted by the\ncommission pursuant to sections nine and ten of this compact in place of\na terminated federal marketing order or state dairy regulation. Such\norder may apply throughout the region or in any part or parts thereof as\ndefined in the regulations of the commission. Such order may establish\nminimum prices for any or all classes of milk.\n  (j) "Milk" means the lacteal secretion of cows and includes all skim,\nbutterfat, or other constituents obtained from separation or any other\nprocess. The term is used in its broadest sense and may be further\ndefined by the commission for regulatory purposes.\n  (k) "Class I milk" means milk disposed of in fluid form or as a fluid\nmilk product, subject to further definition in accordance with the\nprinciples expressed in subdivision (b) of section three of this\ncompact.\n  (l) "State dairy regulation" means any state regulation of dairy\nprices, and associated assessments, whether by statute, marketing order\nor otherwise.\n  § 3. Rules of construction.  (a) This compact shall not be construed\nto displace existing federal milk marketing orders or state dairy\nregulation in the region but to supplement them. In the event some or\nall federal orders in the region are discontinued, the compact shall be\nconstrued to provide the commission the option to replace them with one\nor more commission marketing orders pursuant to this compact.\n  (b) This compact shall be construed liberally in order to achieve the\npurposes and intent enunciated in section one of this compact. It is the\nintent of this compact to establish a basic structure by which the\ncommission may achieve those purposes through the application,\nadaptation and development of the regulatory techniques historically\nassociated with milk marketing and to afford the commission broad\nflexibility to devise regulatory mechanisms to achieve the purposes of\nthis compact. In accordance with this intent, the technical terms which\nare associated with market order regulation and which have acquired\ncommonly understood general meanings are not defined herein but the\ncommission may further define the terms used in this compact and develop\nadditional concepts and define additional terms as it may find\nappropriate to achieve its purposes.\n                   ARTICLE III. COMMISSION ESTABLISHED\n  § 4. Commission established.\n  There is hereby created a commission to administer the compact,\ncomposed of delegations from each state in the region. A delegation\nshall include not less than three nor more than five persons.  Each\ndelegation shall include at least one dairy farmer who is engaged in the\nproduction of milk at the time of appointment or reappointment, and one\nconsumer representative. Delegation members shall be residents and\nvoters of, and subject to such confirmation process as is provided for\nin, the appointing state. Delegation members shall serve no more than\nthree consecutive terms with no single term of more than four years, and\nbe subject to removal for cause.  In all other respects, delegation\nmembers shall serve in accordance with the laws of the state\nrepresented. The compensation, if any, of the members of a state\ndelegation shall be determined and paid by each state, but their\nexpenses shall be paid by the commission. Each state delegation shall be\nentitled to one vote in the conduct of the commission's affairs.\n  § 5. Voting requirements.\n  All actions taken by the commission, except for the establishment or\ntermination of an over-order price or commission marketing order, and\nthe adoption, amendment or rescission of the commission's by-laws, shall\nbe by majority vote of the delegations present. Establishment or\ntermination of an over-order price or commission marketing order shall\nrequire at least a two-thirds vote of the delegations present. The\nestablishment of a regulated area which covers all or part of a\nparticipating state shall require also the affirmative vote of that\nstate's delegation. A majority of the delegations from the participating\nstates shall constitute a quorum for the conduct of the commission's\nbusiness.\n  § 6. Administration and management.\n  (a) The commission shall elect annually from among the members of the\nparticipating state delegations a chairperson, a vice-chairperson, and a\ntreasurer. The commission shall appoint an executive director and fix\nhis or her duties and compensation. The executive director shall serve\nat the pleasure of the commission, and, together with the treasurer,\nshall be bonded in an amount determined by the commission. The\ncommission may establish through its by-laws an executive committee\ncomposed of one member elected by each delegation.\n  (b) The commission shall adopt by-laws for the conduct of its business\nby a two-thirds vote, and shall have the power by the same vote to amend\nand rescind these by-laws. The commission shall publish its by-laws in\nconvenient form with the appropriate agency or officer in each of the\nparticipating states. The by-laws shall provide for appropriate notice\nto the delegations of all commission meetings and hearings and of the\nbusiness to be transacted at such meetings or hearings. Notice also\nshall be given to other agencies or officers of participating states as\nprovided by the laws of those states.\n  (c) The commission shall file an annual report with the secretary of\nagriculture of the United States, and with each of the participating\nstates by submitting copies to the governor, both houses of the\nlegislature, and the head of the state department having\nresponsibilities for agriculture.\n  (d) In addition to the powers and duties elsewhere prescribed in this\ncompact, the commission shall have the power:\n  (1) to sue and be sued in any state or federal court;\n  (2) to have a seal and alter the same at pleasure;\n  (3) to acquire, hold, and dispose of real and personal property by\ngift, purchase, lease, license, or other similar manner, for its\ncorporate purposes;\n  (4) to borrow money and to issue notes, to provide for the rights of\nthe holders thereof and to pledge the revenue of the commission as\nsecurity therefor, subject to the provisions of section eighteen of this\ncompact;\n  (5) to appoint such officers, agents, and employees as it may deem\nnecessary, prescribe their powers, duties, and qualifications; and\n  (6) to create and abolish such offices, employments, and positions as\nit deems necessary for the purposes of the compact and provide for the\nremoval, term, tenure, compensation, fringe benefits, pension, and\nretirement rights of its officers and employees. The commission may also\nretain personal services on a contract basis.\n  § 7. Rulemaking power.\n  In addition to the power to promulgate a compact over-order price or\ncommission marketing orders as provided by this compact, the commission\nis further empowered to make and enforce such additional rules and\nregulations as it deems necessary to implement any provisions of this\ncompact, or to effectuate in any other respect the purposes of this\ncompact.\n                  ARTICLE IV. POWERS OF THE COMMISSION\n  § 8. Powers to promote regulatory uniformity, simplicity, and\ninterstate cooperation.\n  The commission is hereby empowered to:\n  (a) Investigate or provide for investigations or research projects\ndesigned to review the existing laws and regulations of the\nparticipating states, to consider their administration and costs, to\nmeasure their impact on the production and marketing of milk and their\neffects on the shipment of milk and milk products within the region.\n  (b) Prepare and transmit to the participating states model dairy laws\nand regulations dealing with the inspection of farms and plants,\nsanitary codes, labels for dairy products and their imitations,\nstandards for dairy products, license standards, producer security\nprograms, and fair trade laws.\n  (c) Study and recommend to the participating states joint or\ncooperative programs for the administration of the dairy laws and\nregulations and to prepare estimates of cost savings and benefits of\nsuch programs.\n  (d) Encourage the harmonious relationships between the various\nelements in the industry for the solution of their material problems.\nConduct symposiums or conferences designed to improve industry\nrelations, or a better understanding of problems.\n  (e) Prepare and release periodic reports on activities and results of\nthe commission's efforts to the participating states.\n  (f) Review the existing marketing system for milk and milk products\nand recommend changes in the existing structure for assembly and\ndistribution of milk which may assist, improve, or promote more\nefficient assembly and distribution of milk.\n  (g) Investigate costs and charges for producing, hauling, handling,\nprocessing, distributing, selling and for all other services performed\nwith respect to milk.\n  (h) Examine current economic forces affecting producers, probable\ntrends in production and consumption, the level of dairy farm prices in\nrelation to costs, the financial conditions of dairy farmers, and the\nneed for an emergency order to relieve critical conditions on dairy\nfarms.\n  § 9. Equitable farm prices.\n  (a) The powers granted in this section and section ten of this compact\nshall apply only to the establishment of a compact over-order price, so\nlong as federal milk marketing orders remain in effect in the region. In\nthe event that any or all such orders are terminated, this article shall\nauthorize the commission to establish one or more commission marketing\norders, as herein provided, in the region or parts thereof as defined in\nthe order.\n  (b) A compact over-order price established pursuant to this section\nshall apply only to class I milk. Such over-order price shall not exceed\none dollar and fifty cents per gallon. Beginning in nineteen hundred\nninety, and using that year as a base, the foregoing one dollar and\nfifty cents per gallon maximum shall be adjusted annually by the rate of\nchange in the consumer price index as reported by the Bureau of Labor\nStatistics of the United States Department of Labor. For purposes of the\npooling and equalization of an over-order price, the value of milk used\nin other use classifications shall be calculated at the appropriate\nclass price established pursuant to the applicable federal order or\nstate dairy regulation and the value of unregulated milk shall be\ncalculated in relation to the nearest prevailing class price in\naccordance with and subject to such adjustments as the commission may\nprescribe in regulations.\n  (c) A commission marketing order shall apply to all classes and uses\nof milk.\n  (d) The commission is hereby empowered to establish the minimum price\nfor milk to be paid by pool plants, partially regulated plants and all\nother handlers receiving milk from producers located in a regulated\narea. This price shall be established either as a compact over-order\nprice or by one or more commission marketing orders. Whenever such a\nprice has been established by either type of regulation, the legal\nobligation to pay such price shall be determined solely by the terms and\npurpose of the regulation without regard to the situs of the transfer of\ntitle, possession or any other factors not related to the purposes of\nthe regulation and this compact. Producer-handlers as defined in an\napplicable federal market order shall not be subject to a compact\nover-order price. The commission shall provide for similar treatment of\nproducer-handlers under commission marketing orders.\n  (e) In determining the price, the commission shall consider the\nbalance between production and consumption of milk and milk products in\nthe regulated area, the costs of production including, but not limited\nto the price of feed, the cost of labor including the reasonable value\nof the producer's own labor and management, machinery expense, and\ninterest expense, the prevailing price for milk outside the regulated\narea, the purchasing power of the public and the price necessary to\nyield a reasonable return to the producer and distributor.\n  (f) When establishing a compact over-order price, the commission shall\ntake such action as necessary and feasible to ensure that the over-order\nprice does not create an incentive for producers to generate additional\nsupplies of milk.\n  (g) The commission shall whenever possible enter into agreements with\nstate or federal agencies for exchange of information or services for\nthe purpose of reducing regulatory burden and cost of administering the\ncompact. The commission may reimburse other agencies for the reasonable\ncost of providing these services.\n  § 10. Optional provisions for pricing order.\n  Regulations establishing a compact over-order price or a commission\nmarketing order may contain, but shall not be limited to, any of the\nfollowing:\n  (a) Provisions classifying milk in accordance with the form in which\nor purpose for which it is used, or creating a flat pricing program.\n  (b) With respect to a commission marketing order only, provisions\nestablishing or providing a method for establishing separate minimum\nprices for each use classification prescribed by the commission, or a\nsingle minimum price for milk purchased from producers or associations\nof producers.\n  (c) With respect to an over-order minimum price, provisions\nestablishing or providing a method for establishing such minimum price\nfor class I milk.\n  (d) Provisions for establishing either an over-order price or a\ncommission marketing order may make use of any reasonable method for\nestablishing such price or prices including flat pricing and formula\npricing. Provision may also be made for location adjustments, zone\ndifferentials and for competitive credits with respect to regulated\nhandlers who market outside the regulated area.\n  (e) Provisions for the payment to all producers and associations of\nproducers delivering milk to all handlers of uniform prices for all milk\nso delivered, irrespective of the uses made of such milk by the\nindividual handler to whom it is delivered, or for the payment of\nproducers delivering milk to the same handler of uniform prices for all\nmilk delivered by them.\n  (1) With respect to regulations establishing a compact over-order\nprice, the commission may establish one equalization pool within the\nregulated area for the sole purpose of equalizing returns to producers\nthroughout the regulated area.\n  (2) With respect to any commission marketing order, as defined in\nsubdivision (i) of section two of this compact, which replaces one or\nmore terminated federal orders or state dairy regulation, the marketing\narea of now separate state or federal orders shall not be merged without\nthe affirmative consent of each state, voting through its delegation,\nwhich is partly or wholly included within any such new marketing area.\n  (f) Provisions requiring persons who bring class I milk into the\nregulated area to make compensatory payments with respect to all such\nmilk to the extent necessary to equalize the cost of milk purchased by\nhandlers subject to a compact over-order price or commission marketing\norder. No such provisions shall discriminate against milk producers\noutside the regulated area. The provisions for compensatory payments may\nrequire payment of the difference between the class I price required to\nbe paid for such milk in the state of production by a federal milk\nmarketing order or state dairy regulation and the class I price\nestablished by the compact over-order price or commission marketing\norder.\n  (g) Provisions specially governing the pricing and pooling of milk\nhandled by partially regulated plants.\n  (h) Provisions requiring that the account of any person regulated\nunder a compact over-order price shall be adjusted for any payments made\nto or received by such persons with respect to a producer settlement\nfund of any federal or state milk marketing order or other state dairy\nregulation within the regulated area.\n  (i) Provisions requiring the payment by handlers of an assessment to\ncover the costs of the administration and enforcement of such order\npursuant to subdivision (a) of section eighteen of this compact.\n  (j) Provisions for reimbursement to participants of the Women, Infants\nand Children Special Supplemental Food Program of the United States\nChild Nutrition Act of 1966.\n  (k) Other provisions and requirements as the commission may find are\nnecessary or appropriate to effectuate the purposes of this compact and\nto provide for the payment of fair and equitable minimum prices to\nproducers.\n                     ARTICLE V. RULEMAKING PROCEDURE\n  § 11. Rulemaking procedure.\n  Before promulgation of any regulations establishing a compact\nover-order price or commission marketing order, including any provision\nwith respect to milk supply under subdivision (f) of section nine of\nthis compact, or amendment thereof, as provided in article IV of this\ncompact, the commission shall conduct an informal rulemaking proceeding\nto provide interested persons with an opportunity to present data and\nviews. Such rulemaking proceeding shall be governed by section four of\nthe Federal Administrative Procedure Act, as amended (5 U.S.C. Sec.\n553). In addition, the commission shall, to the extent practicable,\npublish notice of rulemaking proceedings in the official register of\neach participating state. Before the initial adoption of regulations\nestablishing a compact over-order price or a commission marketing order\nand thereafter before any amendment with regard to prices or\nassessments, the commission shall hold a public hearing. The commission\nmay commence a rulemaking proceeding on its own initiative or may in its\nsole discretion act upon the petition of any person including individual\nmilk producers, any organization of milk producers or handlers, general\nfarm organizations, consumer or public interest groups, and local, state\nor federal officials.\n  § 12. Findings and referendum.\n  (a) In addition to the concise general statement of basis and purpose\nrequired by section 4(b) of the Federal Administrative Procedure Act, as\namended (5 U.S.C. Sec. 553(c)), the commission shall make findings of\nfact with respect to:\n  (1) Whether the public interest will be served by the establishment of\nminimum milk prices to dairy farmers under article IV of this compact.\n  (2) What level of prices will assure that producers receive a price\nsufficient to cover their costs of production and will elicit an\nadequate supply of milk for the inhabitants of the regulated area and\nfor manufacturing purposes.\n  (3) Whether the major provisions of the order, other than those fixing\nminimum milk prices, are in the public interest and are reasonably\ndesigned to achieve the purposes of the order.\n  (4) Whether the terms of the proposed regional order or amendment are\napproved by producers as provided in section thirteen of this compact.\n  § 13. Producer referendum.\n  (a) For the purpose of ascertaining whether the issuance or amendment\nof regulations establishing a compact over-order price or a commission\nmarketing order, including any provision with respect to milk supply\nunder subdivision (f) of section nine of this compact, is approved by\nproducers, the commission shall conduct a referendum among producers.\nThe referendum shall be held in a timely manner, as determined by\nregulation of the commission. The terms and conditions of the proposed\norder or amendment shall be described by the commission in the ballot\nused in the conduct of the referendum, but the nature, content, or\nextent of such description shall not be a basis for attacking the\nlegality of the order or any action relating thereto.\n  (b) An order or amendment shall be deemed approved by producers if the\ncommission determines that it is approved by at least two-thirds of the\nvoting producers who, during a representative period determined by the\ncommission, have been engaged in the production of milk the price of\nwhich would be regulated under the proposed order or amendment.\n  (c) For purposes of any referendum, the commission shall consider the\napproval or disapproval by any cooperative association of producers,\nqualified under the provisions of the act of congress of February\neighteen, nineteen hundred twenty-two, as amended, known as the\nCapper-Volstead Act, bona fide engaged in marketing milk, or in\nrendering services for or advancing the interests of producers of such\ncommodity, as the approval or disapproval of the producers who are\nmembers or stockholders in, or under contract with, such cooperative\nassociation of producers, except as provided in paragraph one of this\nsubdivision and subject to the provisions of paragraphs two, three, four\nand five of this subdivision:\n  (1) No cooperative which has been formed to act as a common marketing\nagency for both cooperatives and individual producers shall be qualified\nto block vote for either.\n  (2) Any cooperative which is qualified to block vote shall, before\nsubmitting its approval or disapproval in any referendum, give prior\nwritten notice to each of its members as to whether and how it intends\nto cast its vote. The notice shall be given in a timely manner as\nestablished, and in the form prescribed by the commission.\n  (3) Any producer may obtain a ballot from the commission in order to\nregister approval or disapproval of the proposed order.\n  (4) A producer who is a member of a cooperative which has provided\nnotice of its intent to approve or not to approve a proposed order, and\nwho obtains a ballot and with such ballot expresses his approval or\ndisapproval of the proposed order, shall notify the commission as to the\nname of the cooperative of which he or she is a member, and the\ncommission shall remove such producer's name from the list certified by\nsuch cooperative with its corporate vote.\n  (5) In order to insure that all milk producers are informed regarding\na proposed order, the commission shall notify all milk producers that an\norder is being considered and that each producer may register his or her\napproval or disapproval with the commission either directly or through\nhis or her cooperative.\n  § 14. Termination of over-order price or marketing order.\n  (a) The commission shall terminate any regulations establishing an\nover-order price or commission marketing order issued under this article\nwhenever it finds that such order or price obstructs or does not tend to\neffectuate the declared policy of this compact.\n  (b) The commission shall terminate any regulations establishing an\nover-order price or a commission marketing order issued under this\narticle whenever it finds that such termination is favored by a majority\nof the producers who, during a representative period determined by the\ncommission, have been engaged in the production of milk the price of\nwhich is regulated by such order; but such termination shall be\neffective only if announced on or before such date as may be specified\nin such marketing agreement or order.\n  (c) The termination or suspension of any order or provision thereof,\nshall not be considered an order within the meaning of this article and\nshall require no hearing, but shall comply with the requirements for\ninformal rulemaking prescribed by section four of the Federal\nAdministrative Procedure Act, as amended (5 U.S.C. Sec. 553).\n                         ARTICLE VI. ENFORCEMENT\n  § 15. Records, reports, access to premises.\n  (a) The commission may by rule and regulation prescribe record keeping\nand reporting requirements for all regulated persons. For purposes of\nthe administration and enforcement of this compact, the commission is\nauthorized to examine the books and records of any regulated person\nrelating to his or her milk business and for that purpose, the\ncommission's properly designated officers, employees, or agents shall\nhave full access during normal business hours to the premises and\nrecords of all regulated persons.\n  (b) Information furnished to or acquired by the commission officers,\nemployees, or its agents pursuant to this section shall be confidential\nand not subject to disclosure except to the extent that the commission\ndeems disclosure to be necessary in any administrative or judicial\nproceeding involving the administration or enforcement of this compact,\nan over-order price, a compact marketing order, or other regulations of\nthe commission. The commission may promulgate regulations further\ndefining the confidentiality of information pursuant to this section.\nNothing in this section shall be deemed to prohibit (1) the issuance of\ngeneral statements based upon the reports of a number of handlers, which\ndo not identify the information furnished by any person, or (2) the\npublication by direction of the commission of the name of any person\nviolating any regulation of the commission, together with a statement of\nthe particular provisions violated by such person.\n  (c) No officer, employee, or agent of the commission shall\nintentionally disclose information, by inference or otherwise, which is\nmade confidential pursuant to this section. Any person violating the\nprovisions of this section shall upon conviction be subject to a fine of\nnot more than one thousand dollars or by imprisonment for not more than\none year, or by both, and shall be removed from office. The commission\nshall refer any allegation of a violation of this section to the\nappropriate state enforcement authority or United States attorney.\n  § 16. Subpoena, hearings and judicial review.\n  (a) The commission is hereby authorized and empowered by its members\nand its properly designated officers to administer oaths and issue\nsubpoenas throughout all signatory states to compel the attendance of\nwitnesses and the giving of testimony and the production of other\nevidence.\n  (b) Any handler subject to an order may file a written petition with\nthe commission stating that any such order or any provision of any such\norder or any obligation imposed in connection therewith is not in\naccordance with law and praying for a modification thereof or to be\nexempted therefrom. He shall thereupon be given an opportunity for a\nhearing upon such petition, in accordance with regulations made by the\ncommission. After such hearing, the commission shall make a ruling upon\nthe prayer of such petition which shall be final, if in accordance with\nlaw.\n  (c) The district courts of the United States in any district in which\nsuch handler is an inhabitant, or has his principal place of business,\nare hereby vested with jurisdiction in equity to review such ruling,\nprovided a bill in equity for that purpose is filed within thirty days\nfrom the date of the entry of such ruling. Service of process in such\nproceedings may be had upon the commission by delivering to it a copy of\nthe bill of complaint. If the court determines that such ruling is not\nin accordance with law, it shall remand such proceedings to the\ncommission with directions either (1) to make such ruling as the court\nshall determine to be in accordance with law, or (2) to take such\nfurther proceedings as, in its opinion, the law requires. The pendency\nof proceedings instituted pursuant to this subdivision shall not impede,\nhinder, or delay the commission from obtaining relief pursuant to\nsection seventeen of this compact.  Any proceedings brought pursuant to\nsection seventeen of this compact (except where brought by way of\ncounterclaim in proceedings instituted pursuant to this section) shall\nabate whenever a final decree has been rendered in proceedings between\nthe same parties, and covering the same subject matter, instituted\npursuant to this section.\n  § 17. Enforcement with respect to handlers.\n  (a) Any violation by a handler of the provisions of regulations\nestablishing an over-order price or a commission marketing order, or\nother regulations adopted pursuant to this compact shall:\n  (1) Constitute a violation of the laws of each of the signatory\nstates. Such violation shall render the violator subject to a civil\npenalty in an amount as may be prescribed by the laws of each of the\nparticipating states, recoverable in any state or federal court of\ncompetent jurisdiction. Each day such violation continues shall\nconstitute a separate violation.\n  (2) Constitute grounds for the revocation of license or permit to\nengage in the milk business under the applicable laws of the\nparticipating states.\n  (b) With respect to handlers, the commission shall enforce the\nprovisions of this compact, regulations establishing an over-order\nprice, a commission marketing order or other regulations adopted\nhereunder by:\n  (1) Commencing an action for legal or equitable relief brought in the\nname of the commission in any state or federal court of competent\njurisdiction; or\n  (2) With the agreement of the appropriate state agency of a\nparticipating state, by referral to the state agency for enforcement by\njudicial or administrative remedy.\n  (c) With respect to handlers, the commission may bring an action for\ninjunction to enforce the provisions of this compact or the order or\nregulations adopted thereunder without being compelled to allege or\nprove that an adequate remedy of law does not exist.\n                          ARTICLE VII. FINANCE\n  § 18. Finance of start up and regular costs.\n  (a) To provide for its start-up costs, the commission may borrow money\npursuant to its general power under paragraph four of subdivision (d) of\nsection six of this compact.  In order to finance the costs of\nadministration and enforcement of this compact, including payback of\nstart-up costs, the commission is hereby empowered to collect an\nassessment from each handler who purchases milk from producers within\nthe region. If imposed, this assessment shall be collected on a monthly\nbasis for up to one year from the date the commission convenes, in an\namount not to exceed one-tenth of one percent of the applicable federal\nmarket order blend price per hundredweight of milk purchased from\nproducers during the period of the assessment. The initial assessment\nmay apply to the projected purchases of handlers for the two-month\nperiod following the date the commission convenes. In addition, if\nregulations establishing an over-order price or a compact marketing\norder are adopted, they may include an assessment for the specific\npurpose of their administration. These regulations shall provide for\nestablishment of a reserve for the commission's ongoing operating\nexpenses.\n  (b) The commission shall not pledge the credit of any participating\nstate or of the United States. Notes issued by the commission and all\nother financial obligations incurred by it, shall be its sole\nresponsibility and no participating state or the United States shall be\nliable therefor.\n  § 19. Audit and accounts.\n  (a) The commission shall keep accurate accounts of all receipts and\ndisbursements, which shall be subject to the audit and accounting\nprocedures established under its rules. In addition, all receipts and\ndisbursements of funds handled by the commission shall be audited yearly\nby a qualified public accountant and the report of the audit shall be\nincluded in and become part of the annual report of the commission.\n  (b) The accounts of the commission shall be open at any reasonable\ntime for inspection by duly constituted officers of the participating\nstates and by any persons authorized by the commission.\n  (c) Nothing contained in this article shall be construed to prevent\ncommission compliance with laws relating to audit or inspection of\naccounts by or on behalf of any participating state or of the United\nStates.\n    ARTICLE VIII. ENTRY INTO FORCE; ADDITIONAL MEMBERS AND WITHDRAWAL\n  § 20. Entry into force; additional members.\n  The compact shall enter into force effective when enacted into law by\nany three states of the group of states composed of Connecticut,\nDelaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New\nYork, Pennsylvania, Rhode Island, Vermont and Virginia and when the\nconsent of congress has been obtained. This compact shall also be open\nto states which are contiguous to any of the named states and open to\nstates which are contiguous to participating states.\n  § 21. Withdrawal from compact.\n  Any participating state may withdraw from this compact by enacting a\nstatute repealing the same, but no such withdrawal shall take effect\nuntil one year after notice in writing of the withdrawal is given to the\ncommission and the governors of all other participating states. No\nwithdrawal shall affect any liability already incurred by or chargeable\nto a party state prior to the time of such withdrawal.\n  § 22. Severability.\n  If any part or provision of this compact is adjudged invalid by any\ncourt, such judgment shall be confined in its operation to the part or\nprovision directly involved in the controversy in which such judgment\nshall have been rendered and shall not affect or impair the validity of\nthe remainder of this compact.\n  Congress reserves the right to amend or rescind this interstate\ncompact at any time.\n  § 23. Reservation of rights.\n  (a) In general. The right to alter, amend, or repeal this compact is\nexpressly reserved.\n  (b) Compensation requirement. When an over-order price is in effect,\nthe commission established in this compact shall compensate the\ncommodity credit corporation before the end of the fiscal year for the\ncost of any increased commodity credit corporation dairy purchases that\nresult from projected increased fluid milk production for that fiscal\nyear within the compact region in excess of the national average rate of\nincrease.\n