I
103D CONGRESS
2D SESSION
H. R. 4560
To provide the consent of Congress to the Northeast Interstate Dairy
Compact.
IN THE HOUSE OF REPRESENTATIVES
JUNE 9, 1994
Mr. OLVER (for himself, Mrs. JOHNSON of Connecticut, Mr. NEAL of Massa-
chusetts, Mr. ANDREWS of Maine, Mr. BLUTE, Ms. DELAURO, Mr.
GEJDENSON, Mr. KENNEDY, Mrs. KENNELLY, Mr. MACHTLEY, Mr. MAR-
KEY, Mr. MCHUGH, Mr. MEEHAN, Mr. REED, Mr. SANDERS, Ms.
SNOWE, Mr. STUDDS, Mr. SWETT, Mr. TORKILDSEN, Mr. ZELIFF, and
Mr. FRANKS of Connecticut) introduced the following bill; which was re-
ferred to the Committee on the Judiciary
A BILL
To provide the consent of Congress to the Northeast
Interstate Dairy Compact.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CONGRESSIONAL CONSENT.
That Congress hereby consents to the Northeast
Interstate Dairy Compact entered into between the States
of Vermont, New Hampshire, Maine, Connecticut, Rhode
Island, and Massachusetts, which Compact is substantially
as follows:
ARTICLE I. STATEMENT OF PURPOSE,
FINDINGS AND DECLARATION OF POLICY
§ 1. STATEMENT OF PURPOSE, FINDINGS AND
DECLARATION OF POLICY
The purpose of this Compact is to recognize by con-
stitutional prerequisite the interstate character of the
northeast dairy industry and to form an interstate Com-
mission for the northeast region. The mission of the Com-
mission 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
diary industry is the paramount agricultural activity of the
northeast. Dairy farms, and associated suppliers, market-
ers, 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 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 rec-
reational pursuits. In defining the rural character of our
communities 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 essen-
tial to the pubic 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 pro-
nounced downward trend, threaten the viability and stabil-
ity of the northeast dairy region. Historically, individual
State regulatory action has been an effective emergency
remedy available to farmers confronting a distressed mar-
ket. The Federal order system, implemented by the Agri-
cultural Marketing Agreement Act of 1937, establishes
only minimum prices for dairy products, without preempt-
ing 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 im-
plement at least 1 regulatory program in response to the
current dairy industry crisis.
In today’s regional dairy marketplace, cooperative,
rather than individual State action may address more ef-
fectively 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 au-
thority to act in common agreement, with the consent of
Congress, under the Compact clause of the Constitution.
In establishing their constitutional regulatory author-
ity 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 en-
courage 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 con-
tains a contingency provision should the Federal order
system be discontinued. In that event, the interstate Com-
mission is authorized to regulate the marketplace in re-
placement 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 develop-
ments in the market other than establishment of this Com-
pact result in discontinuance of the order system.
ARTICLE II. DEFINITIONS AND RULES OF
CONSTRUCTION
§ 2. DEFINITIONS
For the purpose of this Compact, and of any supple-
ment or concurring legislation enacted pursuant thereto,
except as may be otherwise required by the context:
(1) ‘‘Commission’’ means the Commission es-
tablished by this Compact.
(2) ‘‘Compact’’ means this interstate Compact.
(3) ‘‘Region’’ means the territorial limits of the
States which are or become parties to this Compact.
(4) ‘‘Participating State’’ means a State which
has become a party to this Compact by the enact-
ment of concurring legislation.
(5) ‘‘Regulated area’’ means any area within
the region governed by and defined in regulations es-
tablishing a Compact over-order price or Commis-
sion marketing order.
(6) ‘‘Pool plant’’ means any milk plant located
in a regulated area.
(7) ‘‘Partially regulated plan’’ 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 distribu-
tion or receipts in amounts less than the limits de-
fined therein.
(8) ‘‘Compact over-order price’’ means a mini-
mum price required to be paid to producers for
Class I milk established by the Commission in regu-
lations 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 Commis-
sion.
(9) ‘‘Commission marketing order’’ means regu-
lations adopted by the Commission pursuant to sec-
tions 9 and 10 of this Compact in place of a termi-
nated Federal marketing order or State dairy regu-
lation. Such order may apply throughout the region
or in any part or parts thereof as defined in the reg-
ulations of the Commission. Such order may estab-
lish minimum prices for any or all classes of milk.
(10) ‘‘Milk’’ means the lacteal secretion of cows
and includes all skim, butterfat, or other constitu-
ents 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.
(11) ‘‘Class I milk’’ means milk disposed of in
fluid form or as a fluid milk product, subject to fur-
ther definition in accordance with the principles ex-
pressed in subsection (b) of section 3.
(12) ‘‘State dairy regulation’’ means any State
regulation of dairy prices, and associated assess-
ments, whether by statute, marketing order or other-
wise.
§ 3. RULES OF CONSTRUCTION
(a) This Compact shall not be construed to displace
existing Federal milk marketing orders or State dairy reg-
ulation 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 1 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 pur-
poses through the application, adaptation and develop-
ment 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 un-
derstood general meanings are not defined herein but the
Commission may further define the terms used in this
Compact and develop additional concepts and define addi-
tional terms as it may find appropriate to achieve its pur-
poses.
ARTICLE III. COMMISSION ESTABLISHED
§ 4. COMMISSION ESTABLISHED
There is hereby created a Commission to administer
the Compact, composed of delegations from each State in
the region. A delegation shall include not less than 3 nor
more than 5 persons. Each delegation shall include at
least 1 dairy farmer who is engaged in the production of
milk at the time of appointment or reappointment, and
1 consumer representative. Delegation members shall be
residents and voters of, and subject to such confirmation
process as is provided for in, the appointing State. Delega-
tion members shall serve no more than 3 consecutive
terms with no single term of more than 4 years, and be
subject to removal for cause. In all other respects, delega-
tion 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. Each State delegation shall be entitled
to 1 vote in the conduct of the Commission’s affairs.
§ 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, amend-
ment or rescission of the Commission’s bylaws, shall be
by majority vote of the delegations present. Establishment
or termination of an over-order price or Commission mar-
keting 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 re-
quire 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 Commis-
sion’s business.
§ 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, to-
gether with the treasurer, shall be bonded in an amount
determined by the Commission. The Commission may es-
tablish through its bylaws an executive committee com-
posed of 1 member elected by each delegation.
(b) The Commission shall adopt bylaws for the con-
duct of its business by a two-third vote, and shall have
the power by the same vote to amend and rescind these
bylaws. The Commission shall publish its bylaws in con-
venient 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 trans-
acted 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 pleas-
ure;
(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 pro-
vide for the rights of the holders thereof and to
pledge the revenue of the Commission a security
therefor, subject to the provisions of section 18 of
this Compact;
(5) to appoint such officers, agents, and em-
ployees as it may deem necessary, prescribe their
powers, duties, and qualifications; and
(6) to create and abolish such offices, employ-
ments, and positions as it deems necessary for the
purposes of the Compact and provide for the re-
moval, term, tenure, compensation, fringe benefits,
pension, and retirement rights of its officers and em-
ployees. The Commission may also retain personal
services on a contract basis.
§ 7. RULEMAKING POWER
In addition to the power to promulgate a Compact
over-order price or Commission marketing orders as pro-
vided by this Compact, the Commission is further empow-
ered to make and enforce such additional rules and regula-
tions 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
§ 8. POWERS TO PROMOTE REGULATORY UNI-
FORMITY, SIMPLICITY, AND INTER-
STATE 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) Prepare and transmit to the participating
States model dairy laws and regulations dealing with
the inspection of farms and plants, sanitary codes,
labels for dairy products and their imitations, stand-
ards for dairy products, license standards, producer
security programs, and fair trade laws.
(3) Study and recommend to the participating
States joint or cooperative programs for the admin-
istration of the dairy laws and regulations and to
prepare estimates of cost savings and benefits of
such programs.
(4) Encourage the harmonious relationships be-
tween the various elements in the industry for the
solution of their material problems. Conduct sympo-
siums or conferences designed to improve industry
relations, or a better understanding of problems.
(5) Prepare and release periodic reports on ac-
tivities and results of the Commission’s efforts to
the participating States.
(6) 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.
(7) Investigate costs and charges for producing,
hauling, handling, processing, distributing, selling,
and for all other services performed with respect to
milk.
(8) Examine current economic forces affecting
producers, probable trends in production and con-
sumption, 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 criti-
cal conditions on dairy farms.
§ 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 1 or more Commission mar-
keting 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 $1.50 per gallon. 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 re-
ported 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 appli-
cable 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 sub-
ject 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, par-
tially 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 1 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 regu-
lation without regard to the situs of the transfer of title,
possession, or any other factors not related to the pur-
poses of the regulation and this Compact. Producer-han-
dlers 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 pro-
ducer-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 ex-
pense, 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 fea-
sible 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 ex-
change of information or services for the purpose of reduc-
ing regulatory burden and cost of administering the Com-
pact. The Commission may reimburse other agencies for
the reasonable cost of providing these services.
§ 10. 
OPTIONAL 
PROVISIONS 
FOR 
PRICING
ORDER
Regulations establishing a Compact over-order price
or a Commission marketing order may contain, but shall
not be limited to, any of the following:
(1) Provisions classifying milk in accordance
with the form in which or purpose for which it is
used, or creating a 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 Commis-
sion, 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 for-
mula pricing. Provision may also be made for loca-
tion adjustments, zone differentials, and for competi-
tive 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 in-
dividual 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 establish-
ing a Compact over-order price, the Commission
may establish 1 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 mar-
keting order, as defined in section 2, subdivi-
sion 9, which replaces 1 or more terminated
Federal orders or State dairy regulation, the
marketing area of now separate State or Fed-
eral orders shall not be merged without the af-
firmative 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 com-
pensatory payments with respect to all such milk to
the extent necessary to equalize the cost of milk pur-
chased by handlers subject to a Compact over-order
price or Commission marketing order. No such pro-
visions shall discriminate against milk producers
outside the regulated area. The provisions for com-
pensatory payments may require payment of the dif-
ference between the Class I price required to be paid
for such milk in the State of production by a Fed-
eral 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 a Compact over-order price
shall be adjusted for any payments made to or re-
ceived by such persons with respect to a producer
settlement fund of any Federal or State milk mar-
keting order or other State dairy regulation within
the regulated area.
(9) Provisions requiring the payment by han-
dlers of an assessment to cover the costs of the ad-
ministration and enforcement of such order pursu-
ant to Article VII, section 18(a).
(10) Provisions for reimbursement to partici-
pants 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 mini-
mum prices to producers.
ARTICLE V. RULEMAKING PROCEDURE
§ 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 section 9(f), or amend thereof, as provided in Arti-
cle IV, the Commission shall conduct an informal rule-
making 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.
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 pro-
ducers, any organization of milk producers or handlers,
general farm organizations, consumer or public interest
groups, and local, State, or Federal officials.
§ 12. FINDINGS AND REFERENDUM
(a) In addition to the concise general statement of
basis and purpose required by section 4(b) of the Federal
Administrative Procedure Act, as amended (5 U.S.C.
553(c)), the Commission shall make findings of fact with
respect to:
(1) Whether the public interest will be served
by the establishment of minimum milk prices to
dairy farmers under Article IV.
(2) What level of prices will assure that produc-
ers 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.
§ 13. PRODUCER REFERENDUM
(a) For the purpose of ascertaining whether the issu-
ance or amendment of regulations establishing a Compact
over-order price or a Commission marketing order, includ-
ing any provision with respect to milk supply under section
9(f), is approved by producers, the Commission shall con-
duct a referendum among producers. The referendum
shall be held in a timely manner, as determined by regula-
tion 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 ref-
erendum, but the nature, content, or extent of such de-
scription 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 ap-
proved by at least 2⁄3 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 coopera-
tive association of producers, qualified under the provi-
sions 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 commod-
ity, 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 pro-
vided in paragraph (1) hereof and subject to the provisions
of paragraphs (2) through (5) hereof.
(1) No cooperative which has been formed to
act as a common marketing agency for both coopera-
tives 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 dis-
approval in any referendum, give prior written notice
to each of its members as to whether and how it in-
tends to cast its vote. The notice shall be given in
a timely manner as established, and in the form pre-
scribed, by the Commission.
(3) Any producer may obtain a ballot from the
Commission in order to register approval or dis-
approval of the proposed order.
(4) A producer who is a member of a coopera-
tive which has provided notice of its intent to ap-
prove 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 cooper-
ative of which he or she is a member, and the Com-
mission 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 Com-
mission shall notify all milk producers that an order
is being considered and that each producer may reg-
ister his approval or disapproval with the Commis-
sion either directly or through his or her cooperative.
§ 14. TERMINATION OF OVER-ORDER PRICE OR
MARKETING ORDER
(a) The Commission shall terminate any regulations
establishing an over-order price or Commission marketing
order issued under this Article whenever it finds that such
order or price obstructs or does not tend to effectuate the
declared policy of this Compact.
(b) The Commission shall terminate any regulations
establishing an over-order price or a Commission market-
ing 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 be-
fore 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 rule-
making prescribed by section 4 of the Federal Administra-
tive Procedure Act, as amended (5 U.S.C. 553).
ARTICLE VI. ENFORCEMENT
§ 15. RECORDS, REPORTS, ACCESS TO PREMISES
(a) The Commission may by rule and regulation pre-
scribe recordkeeping and reporting requirements for all
regulated persons. For purposes of the administration and
enforcement of this Compact, the Commission is author-
ized to examine the books and records of any regulated
person relating to his or her milk business and for that
purpose, the Commission’s property 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 Com-
mission 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 proceed-
ing 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 confiden-
tiality 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 fur-
nished 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 state-
ment 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 sec-
tion. 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 1 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 United
States Attorney.
§ 16. SUBPOENA, HEARINGS, AND JUDICIAL RE-
VIEW
(a) The Commission is hereby authorized and empow-
ered 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 im-
posed in connection therewith is not in accordance with
law and praying for a modification thereof or to be ex-
empted therefrom. He shall thereupon be given an oppor-
tunity 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 jurisdic-
tion in equity to review such ruling, provided a bill in eq-
uity for that purpose is filed within 30 days from the date
of the entry of such ruling. Service of process in such pro-
ceedings 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 Commission with direc-
tions either (1) to make such ruling as the court shall de-
termine 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 Commis-
sion from obtaining relief pursuant to section 17. Any pro-
ceedings brought pursuant to section 17 (except where
brought by way of counterclaim in proceedings instituted
pursuant to this section) shall abate whenever a final de-
cree has been rendered in proceedings between the same
parties, and covering the same subject matter, instituted
pursuant to this section.
§ 17. ENFORCEMENT WITH RESPECT TO HAN-
DLERS
(a) Any violation by a handler of the provisions of
regulations establishing an over-order price or a Commis-
sion marketing order, or other regulations adopted pursu-
ant 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 partici-
pating States, recoverable in any State or Federal
court of competent jurisdiction. Each day such viola-
tion continues shall constitute a separate violation.
(2) Constitute grounds for the revocation of li-
cense 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 estab-
lishing 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) with the agreement of the appropriate State
agency of a participating State, by referral to the
State agency for enforcement by judicial or adminis-
trative 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 there-
under without being compelled to allege or prove that an
adequate remedy of law does not exist.
ARTICLE VII. FINANCE
§ 18. FINANCE OF START-UP AND REGULAR COSTS
(a) To provide for its start-up costs, the Commission
may borrow money pursuant to its general power under
section 6, subdivision (d), paragraph (4). In order to fi-
nance the costs of administration and enforcement of this
Compact, including pay back of start-up costs, the Com-
mission 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 1 year from the date the
Commission convenes, in an amount not to exceed one-
tenth of 1 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 han-
dlers for the 2-month period following the date the Com-
mission 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 Commis-
sion’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 in-
curred by it, shall be its sole responsibility and no partici-
pating State or the United States shall be liable therefor.
§ 19. AUDIT AND ACCOUNTS
(a) The Commission shall keep accurate accounts of
all receipts and disbursements, which shall be subject to
the audit and accounting procedures established under its
rules. In addition, all receipts and disbursements of funds
handled by the Commission shall be audited yearly by a
qualified public accountant and the report of the audit
shall be included in and become part of the annual report
of the 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 au-
thorized by the Commission.
(c) Nothing contained in this Article shall be con-
strued to prevent Commission compliance with laws relat-
ing to audit or inspection of accounts by or on behalf of
any participating State or of the United States.
ARTICLE VIII. ENTRY INTO FORCE;
ADDITIONAL MEMBERS AND WITHDRAWAL
§ 20. ENTRY INTO FORCE; ADDITIONAL MEMBERS
The Compact shall enter into force effective when en-
acted into law by any 3 States of the group of States com-