| SB 34 - Southern Dairy Compact - enact |
First Reader Summary
A bill to amend Title 2 of the Official Code of Georgia
Annotated, relating to agriculture, so as to enact into law the
Southern Dairy Compact and provide for the entry into the compact
by the State of Georgia together with all other jurisdictions
legally joining in the compact; to provide for the appointment,
terms, duties, powers, per diem, expenses, and vacancies of
members of the state's delegation to the Southern Dairy Compact
Commission.
| Recorded Votes |
| Vote # |
SV99-28 |
PASSAGE |
2/02/99 |
| Vote # |
HV99-865 |
PASS |
02/08/99 |
| Senate |
Action |
House |
| 1/15/99 |
Read 1st time |
2/3/99 |
| 1/29/99 |
Favorably Reported |
2/3/99 |
| 2/1/99 |
Read 2nd Time |
2/4/99 |
| 2/2/99 |
Read 3rd Time |
2/8/99 |
| 2/2/99 |
Passed/Adopted |
2/8/99 |
| 3/26/99 |
Sent To Governor |
|
| 5/3/99 |
Signed by Governor |
|
| 453 |
Act/Veto Number |
|
SB 34 99 LC 9 9854
SENATE BILL 34
By: Senators Ragan of the 11th, Marable of the 52nd,
Hill of the 4th and others
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Title 2 of the Official Code of Georgia Annotated,
1- 2 relating to agriculture, so as to enact into law the
1- 3 Southern Dairy Compact and provide for the entry into the
1- 4 compact by the State of Georgia together with all other
1- 5 jurisdictions legally joining in the compact; to provide for
1- 6 the appointment, terms, duties, powers, per diem, expenses,
1- 7 and vacancies of members of the state's delegation to the
1- 8 Southern Dairy Compact Commission; to provide for funds; to
1- 9 provide for obtaining and use of information; to provide for
1-10 rules and regulations; to provide for enforcement and
1-11 penalties; to amend Article 2 of Chapter 7 of Title 45 of
1-12 the Official Code of Georgia Annotated, relating to
1-13 reimbursement of expenses, so as to provide for expense
1-14 allowance and travel cost reimbursement for members of the
1-15 delegation from the State of Georgia to the Southern Dairy
1-16 Compact Commission; to repeal conflicting laws; and for
1-17 other purposes.
1-18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
1-19 SECTION 1.
1-20 Title 2 of the Official Code of Georgia Annotated, relating
1-21 to agriculture, is amended by adding at the end of said
1-22 title a new Chapter 18 to read as follows:
1-23 2-18-1.
1-24 The Southern Dairy Compact is enacted into law and entered
1-25 into by the State of Georgia with all other jurisdictions
1-26 legally joining therein. The full text of said compact is
1-27 as follows:
1-28 'SOUTHERN DAIRY COMPACT
1-29 ARTICLE I. STATEMENT OF PURPOSE, FINDINGS, AND
1-30 DECLARATION OF POLICY
-1-
2- 1 Section 1. Statement of purpose, findings, and
2- 2 declaration of policy.
2- 3 The purpose of this compact is to recognize the
2- 4 interstate character of the southern dairy industry and
2- 5 the prerogative of the states under the United States
2- 6 Constitution to form an interstate commission for the
2- 7 southern region. The mission of the commission is to
2- 8 take such steps as are necessary to assure the continued
2- 9 viability of dairy farming in the south, and to assure
2-10 consumers of an adequate, local supply of pure and
2-11 wholesome milk.
2-12 The participating states find and declare that the
2-13 dairy industry is an essential agricultural activity of
2-14 the south. Dairy farms, and associated suppliers,
2-15 marketers, processors, and retailers, are an integral
2-16 component of the region's economy. Their ability to
2-17 provide a stable, local supply of pure, wholesome milk
2-18 is a matter of great importance to the health and
2-19 welfare of the region.
2-20 The participating states further find that dairy farms
2-21 are essential, and they are an integral part of the
2-22 region's rural communities. The farms preserve land for
2-23 agricultural purposes and provide needed economic
2-24 stimuli for rural communities.
2-25 In establishing their constitutional regulatory
2-26 authority over the region's fluid milk market by this
2-27 compact, the participating states declare their purpose
2-28 that this compact neither displace the federal order
2-29 system nor encourage the merging of federal orders.
2-30 Specific provisions of the compact itself set forth this
2-31 basic principle.
2-32 Designed as a flexible mechanism able to adjust to
2-33 changes in a regulated marketplace, the compact also
2-34 contains a contingency provision should the federal
2-35 order system be discontinued. In that event, the
2-36 interstate commission is authorized to regulate the
2-37 marketplace in replacement of the order system. This
2-38 contingent authority does not anticipate such a change,
2-39 however, and should not be so construed. It is only
2-40 provided should developments in the market other than
2-41 establishment of this compact result in discontinuance
2-42 of the order system.
-2-
3- 1 By entering into this compact, the participating
3- 2 states affirm that their ability to regulate the price
3- 3 which southern dairy farmers receive for their product
3- 4 is essential to the public interest. Assurance of a
3- 5 fair and equitable price for dairy farmers ensures their
3- 6 ability to provide milk to the market and the vitality
3- 7 of the southern dairy industry, with all the associated
3- 8 benefits.
3- 9 Recent, dramatic price fluctuations, with a pronounced
3-10 downward trend, threaten the viability and stability of
3-11 the southern dairy region. Historically, individual
3-12 state regulatory action had been an effective emergency
3-13 remedy available to farmers confronting a distressed
3-14 market. The federal order system, implemented by the
3-15 Agricultural Marketing Agreement Act of 1937,
3-16 establishes only minimum prices paid to producers for
3-17 raw milk, without preempting the power of states to
3-18 regulate milk prices above the minimum levels so
3-19 established.
3-20 In today's regional dairy marketplace, cooperative,
3-21 rather than individual state action is needed to more
3-22 effectively address the market disarray. Under our
3-23 constitutional system, properly authorized states acting
3-24 cooperatively may exercise more power to regulate
3-25 interstate commerce than they may assert individually
3-26 without such authority. For this reason, the
3-27 participating states invoke their authority to act in
3-28 common agreement, with the consent of Congress, under
3-29 the compact clause of the Constitution.
3-30 ARTICLE II. DEFINITIONS AND RULES OF CONSTRUCTION
3-31 Section 2. Definitions.
3-32 For the purposes of this compact, and of any
3-33 supplemental or concurring legislation enacted pursuant
3-34 thereto, except as may be otherwise required by the
3-35 context:
3-36 (1) "Class I milk" means milk disposed of in fluid
3-37 form or as a fluid milk product, subject to further
3-38 definition in accordance with the principles expressed
3-39 in subdivision (b) of Section 3.
3-40 (2) "Commission" means the Southern Dairy Compact
3-41 Commission established by this compact.
-3-
4- 1 (3) "Commission marketing order" means regulations
4- 2 adopted by the commission pursuant to Sections 9 and
4- 3 10 of this compact in place of a terminated federal
4- 4 marketing order or state dairy regulation. Such order
4- 5 may apply throughout the region or in any part or
4- 6 parts thereof as defined in the regulations of the
4- 7 commission. Such order may establish minimum prices
4- 8 for any or all classes of milk.
4- 9 (4) "Compact" means this interstate compact.
4-10 (5) "Compact over-order price" means a minimum price
4-11 required to be paid to producers for Class I milk
4-12 established by the commission in regulations adopted
4-13 pursuant to Sections 9 and 10 of this compact, which
4-14 is above the price established in federal marketing
4-15 orders or by state farm price regulation in the
4-16 regulated area. Such price may apply throughout the
4-17 region or in any part or parts thereof as defined in
4-18 the regulations of the commission.
4-19 (6) "Milk" means the lacteal secretion of cows and
4-20 includes all skim, butterfat, or other constituents
4-21 obtained from separation or any other process. The
4-22 term is used in its broadest sense and may be further
4-23 defined by the commission for regulatory purposes.
4-24 (7) "Partially regulated plant" means a milk plant
4-25 not located in a regulated area but having Class I
4-26 distribution within such area. Commission regulations
4-27 may exempt plants having such distribution or receipts
4-28 in amounts less than the limits defined therein.
4-29 (8) "Participating state" means a state which has
4-30 become a party to this compact by the enactment of
4-31 concurring legislation.
4-32 (9) "Pool plant" means any milk plant located in a
4-33 regulated area.
4-34 (10) "Region" means the territorial limits of the
4-35 states which are parties to this compact.
4-36 (11) "Regulated area" means any area within the
4-37 region governed by and defined in regulations
4-38 establishing a compact over-order price or commission
4-39 marketing order.
4-40 (12) "State dairy regulation" means any state
4-41 regulation of dairy prices, and associated
-4-
5- 1 assessments, whether by statute, marketing order, or
5- 2 otherwise.
5- 3 Section 3. Rules of construction.
5- 4 (a) This compact shall not be construed to displace
5- 5 existing federal milk marketing orders or state dairy
5- 6 regulation in the region but to supplement them. In the
5- 7 event some or all federal orders in the region are
5- 8 discontinued, the compact shall be construed to provide
5- 9 the commission the option to replace them with one or
5-10 more commission marketing orders pursuant to this
5-11 compact.
5-12 (b) This compact shall be construed liberally in order
5-13 to achieve the purposes and intent enunciated in Section
5-14 1. It is the intent of this compact to establish a
5-15 basic structure by which the commission may achieve
5-16 those purposes through the application, adaptation, and
5-17 development of the regulatory techniques historically
5-18 associated with milk marketing and to afford the
5-19 commission broad flexibility to devise regulatory
5-20 mechanisms to achieve the purposes of this compact. In
5-21 accordance with this intent, the technical terms which
5-22 are associated with market order regulation and which
5-23 have acquired commonly understood general meanings are
5-24 not defined herein but the commission may further define
5-25 the terms used in this compact and develop additional
5-26 concepts and define additional terms as it may find
5-27 appropriate to achieve its purposes.
5-28 ARTICLE III. COMMISSION ESTABLISHED
5-29 Section 4. Commission established.
5-30 There is hereby created a commission to administer the
5-31 compact, composed of delegations from each state in the
5-32 region. The commission shall be known as the Southern
5-33 Dairy Compact Commission. A delegation shall include
5-34 not less than three nor more than five persons. Each
5-35 delegation shall include at least one dairy farmer who
5-36 is engaged in the production of milk at the time of
5-37 appointment or reappointment, and one consumer
5-38 representative. Delegation members shall be residents
5-39 and voters of, and subject to such confirmation process
5-40 as is provided for in, the appointing state. Delegation
5-41 members shall serve no more than three consecutive terms
5-42 with no single term of more than four years, and be
5-43 subject to removal for cause. In all other respects,
-5-
6- 1 delegation members shall serve in accordance with the
6- 2 laws of the state represented. The compensation, if
6- 3 any, of the members of a state delegation shall be
6- 4 determined and paid by each state, but their expenses
6- 5 shall be paid by the commission.
6- 6 Section 5. Voting requirements.
6- 7 All actions taken by the commission, except for the
6- 8 establishment or termination of an over-order price or
6- 9 commission marketing order, and the adoption, amendment,
6-10 or rescission of the commission's by-laws, shall be by
6-11 majority vote of the delegations present. Each state
6-12 delegation shall be entitled to one vote in the conduct
6-13 of the commission's affairs. Establishment or
6-14 termination of an over-order price or commission
6-15 marketing order shall require at least a two-thirds vote
6-16 of the delegations present. The establishment of a
6-17 regulated area which covers all or part of a
6-18 participating state shall require also the affirmative
6-19 vote of that state's delegation. A majority of the
6-20 delegations from the participating states shall
6-21 constitute a quorum for the conduct of the commission's
6-22 business.
6-23 Section 6. Administration and management.
6-24 (a) The commission shall elect annually from among the
6-25 members of the participating state delegations a
6-26 chairperson, a vice-chairperson, and a treasurer. The
6-27 commission shall appoint an executive director and fix
6-28 his or her duties and compensation. The executive
6-29 director shall serve at the pleasure of the commission,
6-30 and, together with the treasurer, shall be bonded in an
6-31 amount determined by the commission. The commission may
6-32 establish through its by-laws an executive committee
6-33 composed of one member elected by each delegation.
6-34 (b) The commission shall adopt by-laws for the conduct
6-35 of its business by a two-thirds vote and shall have the
6-36 power by the same vote to amend and rescind these
6-37 by-laws. The commission shall publish its by-laws in
6-38 convenient form with the appropriate agency or officer
6-39 in each of the participating states. The by-laws shall
6-40 provide for appropriate notice to the delegations of all
6-41 commission meetings and hearings and of the business to
6-42 be transacted at such meetings or hearings. Notice also
6-43 shall be given to other agencies or officers of
-6-
7- 1 participating states as provided by the laws of those
7- 2 states.
7- 3 (c) The commission shall file an annual report with
7- 4 the Secretary of Agriculture of the United States, and
7- 5 with each of the participating states by submitting
7- 6 copies to the governor, both houses of the legislature,
7- 7 and the head of the state department having
7- 8 responsibilities for agriculture.
7- 9 (d) In addition to the powers and duties elsewhere
7-10 prescribed in this compact, the commission shall have
7-11 the power:
7-12 (1) To sue and be sued in any state or federal
7-13 court;
7-14 (2) To have a seal and alter the same at pleasure;
7-15 (3) To acquire, hold, and dispose of real and
7-16 personal property by gift, purchase, lease, license,
7-17 or other similar manner, for its corporate purposes;
7-18 (4) To borrow money and to issue notes, to provide
7-19 for the rights of the holders thereof, and to pledge
7-20 the revenue of the commission as security therefor,
7-21 subject to the provisions of Section 18 of this
7-22 compact;
7-23 (5) To appoint such officers, agents, and employees
7-24 as it may deem necessary, prescribe their powers,
7-25 duties, and qualifications; and
7-26 (6) To create and abolish such offices, employments,
7-27 and positions as it deems necessary for the purposes
7-28 of the compact and provide for the removal, term,
7-29 tenure, compensation, fringe benefits, pension, and
7-30 retirement rights of its officers and employees. The
7-31 commission may also retain personal services on a
7-32 contract basis.
7-33 Section 7. Rulemaking power.
7-34 In addition to the power to promulgate a compact
7-35 over-order price or commission marketing orders as
7-36 provided by this compact, the commission is further
7-37 empowered to make and enforce such additional rules and
7-38 regulations as it deems necessary to implement any
7-39 provisions of this compact, or to effectuate in any
7-40 other respect the purposes of this compact.
-7-
8- 1 ARTICLE IV. POWERS OF THE COMMISSION
8- 2 Section 8. Powers to promote regulatory uniformity,
8- 3 simplicity, and interstate cooperation.
8- 4 The commission is hereby empowered to:
8- 5 (1) Investigate or provide for investigations or
8- 6 research projects designed to review the existing laws
8- 7 and regulations of the participating states, to
8- 8 consider their administration and costs, to measure
8- 9 their impact on the production and marketing of milk
8-10 and their effects on the shipment of milk and milk
8-11 products within the region.
8-12 (2) Study and recommend to the participating states
8-13 joint or cooperative programs for the administration
8-14 of the dairy marketing laws and regulations and to
8-15 prepare estimates of cost savings and benefits of such
8-16 programs.
8-17 (3) Encourage the harmonious relationships between
8-18 the various elements in the industry for the solution
8-19 of their material problems. Conduct symposia or
8-20 conferences designed to improve industry relations, or
8-21 a better understanding of problems.
8-22 (4) Prepare and release periodic reports on
8-23 activities and results of the commission's efforts to
8-24 the participating states.
8-25 (5) Review the existing marketing system for milk
8-26 and milk products and recommend changes in the
8-27 existing structure for assembly and distribution of
8-28 milk which may assist, improve, or promote more
8-29 efficient assembly and distribution of milk.
8-30 (6) Investigate costs and charges for producing,
8-31 hauling, handling, processing, distributing, selling,
8-32 and for all other services performed with respect to
8-33 milk.
8-34 (7) Examine current economic forces affecting
8-35 producers, probable trends in production and
8-36 consumption, the level of dairy farm prices in
8-37 relation to costs, the financial conditions of dairy
8-38 farmers, and the need for an emergency order to
8-39 relieve critical conditions on dairy farms.
8-40 Section 9. Equitable farm prices.
-8-
9- 1 (a) The powers granted in this section and Section 10
9- 2 shall apply only to the establishment of a compact
9- 3 over-order price, so long as federal milk marketing
9- 4 orders remain in effect in the region. In the event
9- 5 that any or all such orders are terminated, this article
9- 6 shall authorize the commission to establish one or more
9- 7 commission marketing orders, as herein provided, in the
9- 8 region or parts thereof as defined in the order.
9- 9 (b) A compact over-order price established pursuant to
9-10 this section shall apply only to Class I milk. Such
9-11 compact over-order price shall not exceed one dollar and
9-12 fifty cents per gallon at Atlanta, Ga., however, this
9-13 compact over-order price shall be adjusted upward or
9-14 downward at other locations in the region to reflect
9-15 differences in minimum federal order prices. Beginning
9-16 in 1990, and using that year as a base, the foregoing
9-17 one dollar and fifty cents per gallon maximum shall be
9-18 adjusted annually by the rate of change in the Consumer
9-19 Price Index as reported by the Bureau of Labor
9-20 Statistics of the United States Department of Labor. For
9-21 purposes of the pooling and equalization of an
9-22 over-order price, the value of milk used in other use
9-23 classifications shall be calculated at the appropriate
9-24 class price established pursuant to the applicable
9-25 federal order or state dairy regulation and the value of
9-26 unregulated milk shall be calculated in relation to the
9-27 nearest prevailing class price in accordance with and
9-28 subject to such adjustments as the commission may
9-29 prescribe in regulations.
9-30 (c) A commission marketing order shall apply to all
9-31 classes and uses of milk.
9-32 (d) The commission is hereby empowered to establish a
9-33 compact over-order price for milk to be paid by pool
9-34 plants and partially regulated plants. The commission
9-35 is also empowered to establish a compact over-order
9-36 price to be paid by all other handlers receiving milk
9-37 from producers located in a regulated area. This price
9-38 shall be established either as a compact over-order
9-39 price or by one or more commission marketing orders.
9-40 Whenever such a price has been established by either
9-41 type of regulation, the legal obligation to pay such
9-42 price shall be determined solely by the terms and
9-43 purpose of the regulation without regard to the situs of
9-44 the transfer of title, possession, or any other factors
-9-
10- 1 not related to the purposes of the regulation and this
10- 2 compact. Producer-handlers as defined in an applicable
10- 3 federal market order shall not be subject to a compact
10- 4 over-order price. The commission shall provide for
10- 5 similar treatment of producer-handlers under commission
10- 6 marketing orders.
10- 7 (e) In determining the price, the commission shall
10- 8 consider the balance between production and consumption
10- 9 of milk and milk products in the regulated area, the
10-10 costs of production including, but not limited to, the
10-11 price of feed, the cost of labor including the
10-12 reasonable value of the producer's own labor and
10-13 management, machinery expense, and interest expense, the
10-14 prevailing price for milk outside the regulated area,
10-15 the purchasing power of the public, and the price
10-16 necessary to yield a reasonable return to the producer
10-17 and distributor.
10-18 (f) When establishing a compact over-order price, the
10-19 commission shall take such other action as is necessary
10-20 and feasible to help ensure that the over-order price
10-21 does not cause or compensate producers so as to generate
10-22 local production of milk in excess of those quantities
10-23 necessary to assure consumers of an adequate supply for
10-24 fluid purposes.
10-25 (g) The commission shall whenever possible enter into
10-26 agreements with state or federal agencies for exchange
10-27 of information or services for the purpose of reducing
10-28 regulatory burden and cost of administering the compact.
10-29 The commission may reimburse other agencies for the
10-30 reasonable cost of providing these services.
10-31 Section 10. Optional provisions for pricing order.
10-32 Regulations establishing a compact over-order price or
10-33 a commission marketing order may contain, but shall not
10-34 be limited to, any of the following:
10-35 (1) Provisions classifying milk in accordance with
10-36 the form in which or purpose for which it is used, or
10-37 creating a flat pricing program.
10-38 (2) With respect to a commission marketing order
10-39 only, provisions establishing or providing a method
10-40 for establishing separate minimum prices for each use
10-41 classification prescribed by the commission, or a
-10-
11- 1 single minimum price for milk purchased from producers
11- 2 or associations of producers.
11- 3 (3) With respect to an over-order minimum price,
11- 4 provisions establishing or providing a method for
11- 5 establishing such minimum price for Class I milk.
11- 6 (4) Provisions for establishing either an over-order
11- 7 price or a commission marketing order may make use of
11- 8 any reasonable method for establishing such price or
11- 9 prices including flat pricing and formula pricing.
11-10 Provision may also be made for location adjustments,
11-11 zone differentials and for competitive credits with
11-12 respect to regulated handlers who market outside the
11-13 regulated area.
11-14 (5) Provisions for the payment to all producers and
11-15 associations of producers delivering milk to all
11-16 handlers of uniform prices for all milk so delivered,
11-17 irrespective of the uses made of such milk by the
11-18 individual handler to whom it is delivered, or for the
11-19 payment of producers delivering milk to the same
11-20 handler of uniform prices for all milk delivered by
11-21 them.
11-22 (A) With respect to regulations establishing a
11-23 compact over-order price, the commission may
11-24 establish one equalization pool within the regulated
11-25 area for the sole purpose of equalizing returns to
11-26 producers throughout the regulated area.
11-27 (B) With respect to any commission marketing
11-28 order, as defined in Section 2, subdivision (9),
11-29 which replaces one or more terminated federal orders
11-30 or state dairy regulations, the marketing area of
11-31 now separate state or federal orders shall not be
11-32 merged without the affirmative consent of each
11-33 state, voting through its delegation, which is
11-34 partly or wholly included within any such new
11-35 marketing area.
11-36 (6) Provisions requiring persons who bring Class I
11-37 milk into the regulated area to make compensatory
11-38 payments with respect to all such milk to the extent
11-39 necessary to equalize the cost of milk purchased by
11-40 handlers subject to a compact over-order price or
11-41 commission marketing order. No such provisions shall
11-42 discriminate against milk producers outside the
11-43 regulated area. The provisions for compensatory
-11-
12- 1 payments may require payment of the difference between
12- 2 the Class I price required to be paid for such milk in
12- 3 the state of production by a federal milk marketing
12- 4 order or state dairy regulation and the Class I price
12- 5 established by the compact over-order price or
12- 6 commission marketing order.
12- 7 (7) Provisions specially governing the pricing and
12- 8 pooling of milk handled by partially regulated plants.
12- 9 (8) Provisions requiring that the account of any
12-10 person regulated under the compact over-order price
12-11 shall be adjusted for any payments made to or
12-12 received by such persons with respect to a producer
12-13 settlement fund of any federal or state milk marketing
12-14 order or other state dairy regulation within the
12-15 regulated area.
12-16 (9) Provision requiring the payment by handlers of
12-17 an assessment to cover the costs of the administration
12-18 and enforcement of such order pursuant to Article VII,
12-19 Section 18(a).
12-20 (10) Provisions for reimbursement to participants of
12-21 the Women, Infants and Children Special Supplemental
12-22 Food Program of the United States Child Nutrition Act
12-23 of 1966.
12-24 (11) Other provisions and requirements as the
12-25 commission may find are necessary or appropriate to
12-26 effectuate the purposes of this compact and to provide
12-27 for the payment of fair and equitable minimum prices
12-28 to producers.
12-29 ARTICLE V. RULEMAKING PROCEDURE.
12-30 Section 11. Rulemaking procedure.
12-31 Before promulgation of any regulations establishing a
12-32 compact over-order price or commission marketing order,
12-33 including any provision with respect to milk supply
12-34 under subsection 9(f), or amendment thereof, as provided
12-35 in Article IV, the commission shall conduct an informal
12-36 rulemaking proceeding to provide interested persons with
12-37 an opportunity to present data and views. Such
12-38 rulemaking proceeding shall be governed by Section 4 of
12-39 the Federal Administrative Procedure Act, as amended (5
12-40 U.S.C. Sec. 553). In addition, the commission shall, to
12-41 the extent practicable, publish notice of rulemaking
12-42 proceedings in the official register of each
-12-
13- 1 participating state. Before the initial adoption of
13- 2 regulations establishing a compact over-order price or a
13- 3 commission marketing order and thereafter before any
13- 4 amendment with regard to prices or assessments, the
13- 5 commission shall hold a public hearing. The commission
13- 6 may commence a rulemaking proceeding on its own
13- 7 initiative or may in its sole discretion act upon the
13- 8 petition of any person including individual milk
13- 9 producers, any organization of milk producers or
13-10 handlers, general farm organizations, consumer or public
13-11 interest groups, and local, state or federal officials.
13-12 Section 12. Findings and referendum.
13-13 (a) In addition to the concise general statement of
13-14 basis and purpose required by section 4(b) of the
13-15 Federal Administrative Procedure Act, as amended (5
13-16 U.S.C. Sec. 553 (c)), the commission shall make findings
13-17 of fact with respect to:
13-18 (1) Whether the public interest will be served by
13-19 the establishment of minimum milk prices to dairy
13-20 farmers under Article IV.
13-21 (2) What level of prices will assure that producers
13-22 receive a price sufficient to cover their costs of
13-23 production and will elicit an adequate supply of milk
13-24 for the inhabitants of the regulated area and for
13-25 manufacturing purposes.
13-26 (3) Whether the major provisions of the order, other
13-27 than those fixing minimum milk prices, are in the
13-28 public interest and are reasonably designed to achieve
13-29 the purposes of the order.
13-30 (4) Whether the terms of the proposed regional order
13-31 or amendment are approved by producers as provided in
13-32 Section 13.
13-33 Section 13. Producer referendum.
13-34 (a) For the purpose of ascertaining whether the
13-35 issuance or amendment of regulations establishing a
13-36 compact over-order price or a commission marketing
13-37 order, including any provision with respect to milk
13-38 supply under subsection 9(f), is approved by producers,
13-39 the commission shall conduct a referendum among
13-40 producers. The referendum shall be held in a timely
13-41 manner, as determined by regulation of the commission.
13-42 The terms and conditions of the proposed order or
-13-
14- 1 amendment shall be described by the commission in the
14- 2 ballot used in the conduct of the referendum, but the
14- 3 nature, content, or extent of such description shall not
14- 4 be a basis for attacking the legality of the order or
14- 5 any action relating thereto.
14- 6 (b) An order or amendment shall be deemed approved by
14- 7 producers if the commission determines that it is
14- 8 approved by at least two-thirds of the voting producers
14- 9 who, during a representative period determined by the
14-10 commission, have been engaged in the production of milk
14-11 the price of which would be regulated under the proposed
14-12 order or amendment.
14-13 (c) For purposes of any referendum, the commission
14-14 shall consider the approval or disapproval by any
14-15 cooperative association of producers, qualified under
14-16 the provisions of the Act of Congress of February 18,
14-17 1922, as amended, known as the Capper-Volstead Act, bona
14-18 fide engaged in marketing milk, or in rendering services
14-19 for or advancing the interests of producers of such
14-20 commodity, as the approval or disapproval of the
14-21 producers who are members or stockholders in, or under
14-22 contract with, such cooperative association of
14-23 producers, except as provided in subdivision (1) hereof
14-24 and subject to the provisions of subdivision (2) through
14-25 (5) hereof.
14-26 (1) No cooperative which has been formed to act as
14-27 a common marketing agency for both cooperatives and
14-28 individual producers shall be qualified to block vote
14-29 for either.
14-30 (2) Any cooperative which is qualified to block vote
14-31 shall, before submitting its approval or disapproval
14-32 in any referendum, give prior written notice to each
14-33 of its members as to whether and how it intends to
14-34 cast its vote. The notice shall be given in a timely
14-35 manner as established, and in the form prescribed, by
14-36 the commission.
14-37 (3) Any producer may obtain a ballot from the
14-38 commission in order to register approval or
14-39 disapproval of the proposed order.
14-40 (4) A producer who is a member of a cooperative
14-41 which has provided notice of its intent to approve or
14-42 not to approve a proposed order, and who obtains a
14-43 ballot and with such ballot expresses his or her
-14-
15- 1 approval or disapproval of the proposed order, shall
15- 2 notify the commission as to the name of the
15- 3 cooperative of which he or she is a member, and the
15- 4 commission shall remove such producer's name from the
15- 5 list certified by such cooperative with its corporate
15- 6 vote.
15- 7 (5) In order to insure that all milk producers are
15- 8 informed regarding the proposed order, the commission
15- 9 shall notify all milk producers that an order is being
15-10 considered and that each producer may register his
15-11 approval or disapproval with the commission either
15-12 directly or through his or her cooperative.
15-13 Section 14. Termination of over-order price or marketing
15-14 order.
15-15 (a) The commission shall terminate any regulations
15-16 establishing an over-order price or commission marketing
15-17 order issued under this article whenever it finds that
15-18 such order or price obstructs or does not tend to
15-19 effectuate the declared policy of this compact.
15-20 (b) The commission shall terminate any regulations
15-21 establishing an over-order price or a commission
15-22 marketing order issued under this article whenever it
15-23 finds that such termination is favored by a majority of
15-24 the producers who, during a representative period
15-25 determined by the commission, have been engaged in the
15-26 production of milk the price of which is regulated by
15-27 such order; but such termination shall be effective only
15-28 if announced on or before such date as may be specified
15-29 in such marketing agreement or order.
15-30 (c) The termination or suspension of any order or
15-31 provision thereof shall not be considered an order
15-32 within the meaning of this article and shall require no
15-33 hearing, but shall comply with the requirements for
15-34 informal rulemaking prescribed by Section 4 of the
15-35 Federal Administrative Procedure Act, as amended (5
15-36 U.S.C. Sec. 553).
15-37 ARTICLE VI. ENFORCEMENT
15-38 Section 15. Records, reports, access to premises.
15-39 (a) The commission may by rule and regulation
15-40 prescribe record keeping and reporting requirements for
15-41 all regulated persons. For purposes of the
15-42 administration and enforcement of this compact, the
-15-
16- 1 commission is authorized to examine the books and
16- 2 records of any regulated person relating to his or her
16- 3 milk business and for that purpose, the commission's
16- 4 properly designated officers, employees, or agents shall
16- 5 have full access during normal business hours to the
16- 6 premises and records of all regulated persons.
16- 7 (b) Information furnished to or acquired by the
16- 8 commission officers, employees, or its agents pursuant
16- 9 to this section shall be confidential and not subject to
16-10 disclosure except to the extent that the commission
16-11 deems disclosure to be necessary in any administrative
16-12 or judicial proceeding involving the administration or
16-13 enforcement of this compact, an over-order price, a
16-14 compact marketing order, or other regulations of the
16-15 commission. The commission may promulgate regulations
16-16 further defining the confidentiality of information
16-17 pursuant to this section. Nothing in this section shall
16-18 be deemed to prohibit (i) the issuance of general
16-19 statements based upon the reports of a number of
16-20 handlers, which do not identify the information
16-21 furnished by any person, or (ii) the publication by
16-22 direction of the commission of the name of any person
16-23 violating any regulation of the commission, together
16-24 with a statement of the particular provisions violated
16-25 by such person.
16-26 (c) No officer, employee, or agent of the commission
16-27 shall intentionally disclose information, by inference
16-28 or otherwise, which is made confidential pursuant to
16-29 this section. Any person violating the provisions of
16-30 this section shall, upon conviction, be subject to a
16-31 fine of not more than one thousand dollars or to
16-32 imprisonment for not more than one year, or both, and
16-33 shall be removed from office. The commission shall
16-34 refer any allegation of a violation of this section to
16-35 the appropriate state enforcement authority or United
16-36 States Attorney.
16-37 Section 16. Subpoena, hearings and judicial review.
16-38 (a) The commission is hereby authorized and empowered
16-39 by its members and its properly designated officers to
16-40 administer oaths and issue subpoenas throughout all
16-41 signatory states to compel the attendance of witnesses
16-42 and the giving of testimony and the production of other
16-43 evidence.
-16-
17- 1 (b) Any handler subject to an order may file a written
17- 2 petition with the commission stating that any order or
17- 3 any provision of any such order or any obligation
17- 4 imposed in connection therewith is not in accordance
17- 5 with law and praying for a modification thereof or to be
17- 6 exempted therefrom. He shall thereupon be given an
17- 7 opportunity for a hearing upon such petition, in
17- 8 accordance with regulations made by the commission.
17- 9 After such hearing, the commission shall make a ruling
17-10 upon the prayer of such petition which shall be final,
17-11 if in accordance with law.
17-12 (c) The district courts of the United States in any
17-13 district in which such handler is an inhabitant, or has
17-14 his principal place of business, are hereby vested with
17-15 jurisdiction to review such ruling, provided a complaint
17-16 for that purpose is filed within thirty days from the
17-17 date of the entry of such ruling. Service of process in
17-18 such proceedings may be had upon the commission by
17-19 delivering to it a copy of the complaint. If the court
17-20 determines that such ruling is not in accordance with
17-21 law, it shall remand such proceedings to the commission
17-22 with directions either (1) to make such ruling as the
17-23 court shall determine to be in accordance with law, or
17-24 (2) to take such further proceedings as, in its opinion,
17-25 the law requires. The pendency of proceedings
17-26 instituted pursuant to this subdivision shall not
17-27 impede, hinder, or delay the commission from obtaining
17-28 relief pursuant to Section 17. Any proceedings brought
17-29 pursuant to Section 17, except where brought by way of
17-30 counterclaim in proceedings instituted pursuant to this
17-31 section, shall abate whenever a final decree has been
17-32 rendered in proceedings between the same parties, and
17-33 covering the same subject matter, instituted pursuant to
17-34 this section.
17-35 Section 17. Enforcement with respect to handlers.
17-36 (a) Any violation by a handler of the provisions of
17-37 regulations establishing an over-order price or a
17-38 commission marketing order, or other regulations adopted
17-39 pursuant to this compact shall:
17-40 (1) Constitute a violation of the laws of each of
17-41 the signatory states. Such violation shall render the
17-42 violator subject to a civil penalty in an amount as
17-43 may be prescribed by the laws of each of the
17-44 participating states, recoverable in any state or
-17-
18- 1 federal court of competent jurisdiction. Each day such
18- 2 violation continues shall constitute a separate
18- 3 violation.
18- 4 (2) Constitute grounds for the revocation of
18- 5 license or permit to engage in the milk business under
18- 6 the applicable laws of the participating states.
18- 7 (b) With respect to handlers, the commission shall
18- 8 enforce the provisions of this compact, regulations
18- 9 establishing an over-order price, a commission marketing
18-10 order or other regulations adopted hereunder by:
18-11 (1) Commencing an action for legal or equitable
18-12 relief brought in the name of the commission in any
18-13 state or federal court of competent jurisdiction; or
18-14 (2) Referral to the state agency for enforcement by
18-15 judicial or administrative remedy with the agreement
18-16 of the appropriate state agency of a participating
18-17 state.
18-18 (c) With respect to handlers, the commission may bring
18-19 an action for injunction to enforce the provisions of
18-20 this compact or the order or regulations adopted
18-21 thereunder without being compelled to allege or prove
18-22 that an adequate remedy of law does not exist.
18-23 ARTICLE VII. FINANCE
18-24 Section 18. Finance of start-up and regular costs.
18-25 (a) To provide for its start-up costs, the commission
18-26 may borrow money pursuant to its general power under
18-27 Section 6, subdivision (d), paragraph 4. In order to
18-28 finance the costs of administration and enforcement of
18-29 this compact, including payback of start-up costs, the
18-30 commission is hereby empowered to collect an assessment
18-31 from each handler who purchases milk from producers
18-32 within the region. If imposed, this assessment shall be
18-33 collected on a monthly basis for up to one year from the
18-34 date the commission convenes, in an amount not to exceed
18-35 $.015 per hundredweight of milk purchased from producers
18-36 during the period of the assessment. The initial
18-37 assessment may apply to the projected purchases of
18-38 handlers for the two-month period following the date the
18-39 commission convenes. In addition, if regulations
18-40 establishing an over-order price or a compact marketing
18-41 order are adopted, they may include an assessment for
18-42 the specific purpose of their administration. These
-18-
19- 1 regulations shall provide for establishment of a reserve
19- 2 for the commission's ongoing operating expenses.
19- 3 (b) The commission shall not pledge the credit of any
19- 4 participating state or of the United States. Notes
19- 5 issued by the commission and all other financial
19- 6 obligations incurred by it shall be its sole
19- 7 responsibility and no participating state or the United
19- 8 States shall be liable therefor.
19- 9 Section 19. Audit and accounts.
19-10 (a) The commission shall keep accurate accounts of all
19-11 receipts and disbursements, which shall be subject to
19-12 the audit and accounting procedures established under
19-13 its rules. In addition, all receipts and disbursements
19-14 of funds handled by the commission shall be audited
19-15 yearly by a qualified public accountant and the report
19-16 of the audit shall be included in and become part of the
19-17 annual report of the commission.
19-18 (b) The accounts of the commission shall be open at
19-19 any reasonable time for inspection by duly constituted
19-20 officers of the participating states and by any persons
19-21 authorized by the commission.
19-22 (c) Nothing contained in this article shall be
19-23 construed to prevent commission compliance with laws
19-24 relating to audit or inspection of accounts by or on
19-25 behalf of any participating state or of the United
19-26 States.
19-27 ARTICLE VIII. ENTRY INTO FORCE; ADDITIONAL MEMBERS
19-28 AND WITHDRAWAL
19-29 Section 20. Entry into force; additional members.
19-30 The compact shall enter into force effective when
19-31 enacted into law by any three states of the group of
19-32 states composed of Alabama, Arkansas, Florida, Georgia,
19-33 Kentucky, Louisiana, Maryland, Mississippi, North
19-34 Carolina, Oklahoma, South Carolina, Tennessee, Texas,
19-35 Virginia, and West Virginia and when the consent of
19-36 Congress has been obtained.
19-37 Section 21. Withdrawal from compact.
19-38 Any participating state may withdraw from this compact
19-39 by enacting a statute repealing the same, but no such
19-40 withdrawal shall take effect until one year after notice
19-41 in writing of the withdrawal is given to the commission
-19-
20- 1 and the governors of all other participating states. No
20- 2 withdrawal shall affect any liability already incurred
20- 3 by or chargeable to a participating state prior to the
20- 4 time of such withdrawal.
20- 5 Section 22. Severability.
20- 6 If any part or provision of this compact is adjudged
20- 7 invalid by any court, such judgment shall be confined in
20- 8 its operation to the part or provision directly involved
20- 9 in the controversy in which such judgment shall have
20-10 been rendered and shall not affect or impair the
20-11 validity of the remainder of this compact. In the event
20-12 Congress consents to this compact subject to conditions,
20-13 said conditions shall not impair the validity of this
20-14 compact when said conditions are accepted by three or
20-15 more compacting states. A compacting state may accept
20-16 the conditions of Congress by implementation of this
20-17 compact.'
20-18 2-18-2.
20-19 (a) The delegation from the State of Georgia to the
20-20 Southern Dairy Compact Commission, as established in
20-21 Article III of the compact, shall be composed of five
20-22 members appointed as follows:
20-23 (1) One member representing consumers of milk shall be
20-24 appointed by the Governor;
20-25 (2) One member shall be appointed by the Speaker of the
20-26 House of Representatives;
20-27 (3) One member representing the school food service
20-28 profession shall be appointed by the President of the
20-29 Senate; and
20-30 (4) Two members shall be appointed by the Commissioner
20-31 of Agriculture, one of whom shall be a dairy farmer
20-32 engaged in the production of milk and one of whom shall
20-33 be a milk handler actively engaged in the processing of
20-34 fluid milk at the time of appointment or reappointment.
20-35 (b) Members must be registered to vote in the state.
20-36 (c) Members shall serve a term of four years and may be
20-37 reappointed, but no member shall serve more than three
20-38 consecutive terms. Members shall serve until their
20-39 successors are duly appointed. Any appointment to fill an
20-40 unexpired term shall be for the balance of the unexpired
20-41 term and shall be made by the appropriate appointing
-20-
21- 1 authority. The Commissioner of Agriculture shall designate
21- 2 one member of the delegation to serve as chairperson, at
21- 3 the pleasure of the Commissioner.
21- 4 (d) A majority of the delegation shall constitute a quorum
21- 5 for the transaction of business.
21- 6 (e) All clerical and other services required by the
21- 7 delegation shall be provided by the Commissioner of
21- 8 Agriculture.
21- 9 (f) The delegation is assigned to the Department of
21-10 Agriculture for administrative purposes only.
21-11 (g) The funds necessary to carry out this chapter and the
21-12 Southern Dairy Compact shall be paid from funds
21-13 appropriated to or otherwise made available to the
21-14 Department of Agriculture for such purpose.
21-15 2-18-3.
21-16 The Commissioner of Agriculture may, by lawful means,
21-17 obtain information pertaining to the dairy industry which
21-18 the Commissioner deems necessary to carry out the purposes
21-19 of this chapter and the Southern Dairy Compact. Such
21-20 information may be utilized by the Commissioner, the
21-21 delegates, and the Southern Dairy Compact Commission.
21-22 2-18-4.
21-23 The Commissioner of Agriculture may adopt such rules and
21-24 regulations, in accordance with Chapter 13 of Title 50,
21-25 the 'Georgia Administrative Procedure Act,' as are
21-26 necessary to carry out the purposes of this chapter and
21-27 the Southern Dairy Compact.
21-28 2-18-5.
21-29 (a) No person shall violate this chapter, the Southern
21-30 Dairy Compact, or any rules or regulations adopted
21-31 pursuant to either this chapter or the compact.
21-32 (b) For purposes of the enforcement of this chapter, the
21-33 Southern Dairy Compact, or any rules or regulations
21-34 adopted pursuant to either this chapter or the compact,
21-35 the provisions of Code Section 2-2-10, Code Section
21-36 2-2-11, and Chapter 5 of this title shall be applicable to
21-37 any violation.
21-38 (c) Each day on which a violation occurs shall be a
21-39 separate violation."
-21-
22- 1 SECTION 2.
22- 2 Article 2 of Chapter 7 of Title 45 of the Official Code of
22- 3 Georgia Annotated, relating to reimbursement of expenses, is
22- 4 amended by striking Code Section 45-7-21, relating to
22- 5 expense allowances and travel cost reimbursement for members
22- 6 of certain boards and commissions, and inserting in lieu
22- 7 thereof the following:
22- 8 "45-7-21.
22- 9 Each member of the boards and commissions enumerated in
22-10 this Code section shall receive the same expense allowance
22-11 per day as that received by a member of the General
22-12 Assembly for each day such member of a board or commission
22-13 is in attendance at a meeting of such board or commission,
22-14 plus reimbursement for actual transportation costs while
22-15 traveling by public carrier or the legal mileage rate for
22-16 the use of a personal automobile in connection with such
22-17 attendance. The expense allowance and reimbursement
22-18 provided for in this Code section shall be paid in lieu of
22-19 any per diem, allowance, or other remuneration now
22-20 received by any such member for such attendance. The
22-21 existing law relative to any limitation on the number of
22-22 meeting days and remuneration for service on committees or
22-23 subcommittees of any such board or commission shall remain
22-24 in effect. The boards and commissions to which this Code
22-25 section shall be applicable are as follows:
22-26 (1) State Board of Education;
22-27 (2) State Medical Education Board;
22-28 (3) Board of Regents of the University System of
22-29 Georgia;
22-30 (4) Board of Corrections;
22-31 (5) Board of Industry, Trade, and Tourism;
22-32 (6) Board of Natural Resources;
22-33 (7) State Transportation Board;
22-34 (8) Dental Education Board;
22-35 (9) Georgia Student Finance Commission;
22-36 (10) Veterans Service Board;
22-37 (11) Georgia Agricultural Exposition Authority;
22-38 (12) Joint Board of Family Practice;
-22-
23- 1 (13) Georgia Music Hall of Fame Authority;
23- 2 (14) Georgia Sports Hall of Fame Authority; and
23- 3 (15) Georgia Rail Passenger Authority.; and
23- 4 (16) The delegation from the State of Georgia to the
23- 5 Southern Dairy Compact Commission."
23- 6 SECTION 3.
23- 7 All laws and parts of laws in conflict with this Act are
23- 8 repealed.
-23-
Secretary of the Senate
Frank Eldridge, Jr., Secretary
Last Updated on 05/05/99
