§ 106-810. Southern Dairy Compact entered into; form of Compact.

NORTH CAROLINA STATUTES AND CODES

§ 106-810. Southern Dairy Compact entered into; form of Compact.

Article 68.

Southern Dairy Compact.

§ 106‑810. SouthernDairy Compact entered into; form of Compact.

The Southern Dairy Compact isenacted into law and entered into with all other jurisdictions legally joiningtherein in the form 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 isto recognize the interstate character of the southern dairy industry and theprerogative of the states under the United States Constitution to form aninterstate commission for the southern region. The mission of the Commission isto take such steps as are necessary to assure the continued viability of dairyfarming in the South, and to assure consumers of an adequate, local supply ofpure and wholesome milk.

The participating states findand declare that the dairy industry is an essential agricultural activity ofthe South. Dairy farms, and associated suppliers, marketers, processors, andretailers, are an integral component of the region's economy. Their ability toprovide a stable, local supply of pure, wholesome milk is a matter of greatimportance to the health and welfare of the region.

The participating statesfurther find that dairy farms are essential, and they are an integral part ofthe region's rural communities. The farms preserve land for agriculturalpurposes and provide needed economic stimuli for rural communities.

By entering into this compact,the participating states affirm that their ability to regulate the price thatsouthern dairy farmers receive for their product is essential to the publicinterest. Assurance of a fair and equitable price for dairy farmers ensurestheir ability to provide milk to the market and the vitality of the southerndairy industry, with all the associated benefits.

Recent dramatic pricefluctuations, with a pronounced downward trend, threaten the viability andstability of the southern dairy region. Historically, individual stateregulatory action had been an effective emergency remedy available to farmersconfronting a distressed market. The system of federal orders, implemented bythe Agricultural Marketing Agreement Act of 1937, establishes only minimumprices paid to producers for raw milk, without preempting the power of statesto regulate milk prices above the minimum levels so established.

In today's regional dairymarketplace, cooperative, rather than individual state action is needed to moreeffectively address the market disarray. Under our constitutional system,properly authorized states acting cooperatively may exercise more power toregulate interstate commerce than they may assert individually without suchauthority. For this reason, the participating states invoke their authority toact in common agreement, with the consent of Congress, under the compact clauseof the Constitution.

In establishing theirconstitutional regulatory authority over the region's fluid milk market by thiscompact, the participating states declare their purpose that this compactneither displace the system of federal orders nor encourage the merging offederal orders. Specific provisions of the compact itself set forth this basicprinciple.

Designed as a flexiblemechanism able to adjust to changes in a regulated marketplace, the compactalso contains a contingency provision should the system of federal orders bediscontinued. In that event, the interstate commission may regulate themarketplace in lieu of the system of federal orders. This contingent authoritydoes not anticipate such a change, however, and should not be so construed. Itis only provided should developments in the market other than establishment ofthis compact result in discontinuance of the system of federal orders.

ARTICLE II. Definitions and Rules of Construction

§ 2. Definitions.

For the purposes of thiscompact, and of any supplemental or concurring legislation enacted pursuantthereto, except as may be otherwise required by the context:

(1) "Class Imilk" means milk disposed of in fluid form or as a fluid milk product,subject to further definition in accordance with the principles expressed insubsection (b) of Section 3.

(2) "Commission"means the Southern Dairy Compact Commission established by this compact.

(3) "Commissionmarketing order" means regulations adopted by the Commission pursuant toSections 9 and 10 of this compact in place of a terminated federal marketingorder or state dairy regulation. Such order may apply throughout the region orin any part or parts thereof as defined in the regulations of the Commission.Such order may establish minimum prices for any or all classes of milk.

(4) "Compact"means this interstate compact.

(5) "Compact over‑orderprice" means a minimum price required to be paid to producers for Class Imilk established by the Commission in regulations adopted pursuant to Sections9 and 10 of this compact, which is above the price established in federalmarketing orders or by state farm price regulation in the regulated area. Suchprice may apply throughout the region or in any part or parts thereof asdefined in the regulations of the Commission.

(6) "Milk"means the lacteal secretion of cows and includes all skim, butterfat, or otherconstituents obtained from separation or any other process. The term is used inits broadest sense and may be further defined by the Commission for regulatorypurposes.

(7) "Partiallyregulated plant" means a milk plant not located in a regulated area buthaving Class I distribution within such area. Commission regulations may exemptplants having such distribution or receipts in amounts less than the limitsdefined therein.

(8) "Participatingstate" means a state which has become a party to this compact by theenactment of concurring legislation.

(9) "Poolplant" means any milk plant located in a regulated area.

(10) "Region"means the territorial limits of the states which are parties to this compact.

(11) "Regulatedarea" means any area within the region governed by and defined inregulations establishing a compact over‑order price or commissionmarketing order.

(12) "State dairyregulation" means any state regulation of dairy prices and associatedassessments, whether by statute, marketing order, or otherwise.

§ 3. Rules of construction.

(a) This compact shallnot be construed to displace existing federal milk marketing orders or statedairy regulation in the region but to supplement them. In the event some or allfederal orders in the region are discontinued, the compact shall be construedto provide the Commission the option to replace them with one or morecommission marketing orders pursuant to this compact.

(b) This compact shallbe construed liberally in order to achieve the purposes and intent enunciatedin Section 1. It is the intent of this compact to establish a basic structureby which the Commission may achieve those purposes through the application,adaptation, and development of the regulatory techniques historicallyassociated with milk marketing and to afford the Commission broad flexibilityto devise regulatory mechanisms to achieve the purposes of this compact. Inaccordance with this intent, the technical terms which are associated withmarket order regulation and which have acquired commonly understood generalmeanings are not defined herein but the Commission may further define the termsused in this compact and develop additional concepts and define additionalterms as it may find appropriate to achieve its purposes.

ARTICLE III. Commission Established

§ 4. Commission established.

There is hereby created a commissionto administer the compact, composed of delegations from each state in theregion. The Commission shall be known as the Southern Dairy Compact Commission.A delegation shall include not less than three nor more than five persons. Eachdelegation shall include at least one dairy farmer who is engaged in theproduction of milk at the time of appointment or reappointment, and oneconsumer representative. Delegation members shall be residents and voters of,and subject to such confirmation process as is provided for in, the appointingstate. Delegation members shall serve no more than three consecutive terms withno single term of more than four years, and be subject to removal for cause. Inall other respects, delegation members shall serve in accordance with the lawsof the state represented. The compensation, if any, of the members of a statedelegation shall be determined and paid by each state, but their expenses shallbe paid by the Commission.

§ 5. Voting requirements.

All actions taken by theCommission, except for the establishment or termination of an over‑orderprice or commission marketing order, and the adoption, amendment, or rescissionof the Commission's bylaws, shall be by majority vote of the delegationspresent. Each state delegation shall be entitled to one vote in the conduct ofthe Commission's affairs. Establishment or termination of an over‑orderprice or commission marketing order shall require at least a two‑thirdsvote of the delegations present. The establishment of a regulated area thatcovers all or part of a participating state shall require also the affirmativevote of that state's delegation. A majority of the delegations from theparticipating states shall constitute a quorum for the conduct of theCommission's business.

§ 6. Administration andmanagement.

(a) The Commissionshall elect annually from among the members of the participating statedelegations a chairperson, a vice‑chairperson, and a treasurer. TheCommission shall appoint an executive director and fix his or her duties andcompensation. The executive director shall serve at the pleasure of theCommission, and, together with the treasurer, shall be bonded in an amountdetermined by the Commission. The Commission may establish through its bylawsan executive committee composed of one member elected by each delegation.

(b) The Commissionshall adopt bylaws for the conduct of its business by a two‑thirds voteand shall have the power by the same vote to amend and rescind these bylaws.The Commission shall publish its bylaws in convenient form with the appropriateagency or officer in each of the participating states. The bylaws shall providefor appropriate notice to the delegations of all Commission meetings andhearings and of the business to be transacted at such meetings or hearings.Notice also shall be given to other agencies or officers of participatingstates as provided by the laws of those states.

(c) The Commissionshall file an annual report with the Secretary of Agriculture of the UnitedStates, and with each of the participating states by submitting copies to theGovernor, both houses of the legislature, and the head of the state departmenthaving responsibilities for agriculture.

(d) In addition to thepowers and duties elsewhere prescribed in this compact, the Commission mayengage in all of the following:

(1) Sue and be sued inany state or federal court.

(2) Have a seal andalter the same at pleasure.

(3) Acquire, hold, anddispose of real and personal property by gift, purchase, lease, license, orother similar manner, for its corporate purposes.

(4) Borrow money and toissue notes, to provide for the rights of the holders thereof, and to pledgethe revenue of the Commission as security therefor, subject to the provisionsof Section 18 of this compact.

(5) Appoint suchofficers, agents, and employees as it may deem necessary, prescribe theirpowers, duties, and qualifications.

(6) Create and abolishsuch offices, employments, and positions as it deems necessary for the purposesof the compact and provide for the removal, term, tenure, compensation, fringebenefits, pension, and retirement rights of its officers and employees.

(7) Retain personalservices on a contract basis.

§ 7. Rule‑making power.

In addition to the power topromulgate a compact over‑order price or commission marketing orders asprovided by this compact, the Commission is further empowered to make andenforce such additional rules and regulations as it deems necessary toimplement any provisions of this compact, or to effectuate in any other respectthe purposes of this compact.

ARTICLE IV. Powers of the Commission

§ 8. Powers to promoteregulatory uniformity, simplicity, and interstate cooperation.

The Commission may:

(1) Investigate orprovide for investigations or research projects designed to review the existinglaws and regulations of the participating states, to consider theiradministration and costs, to measure their impact on the production andmarketing of milk and their effects on the shipment of milk and milk productswithin the region.

(2) Study and recommendto the participating states joint or cooperative programs for theadministration of the dairy marketing laws and regulations and to prepareestimates of cost savings and benefits of such programs.

(3) Encourage theharmonious relationships between the various elements in the industry for thesolution of their material problems. Conduct symposia or conferences designedto improve industry relations, or a better understanding of problems.

(4) Prepare and releaseperiodic reports on activities and results of the Commission's efforts to theparticipating states.

(5) Review the existingmarketing system for milk and milk products and recommend changes in theexisting structure for assembly and distribution of milk which may assist,improve, or promote more efficient assembly and distribution of milk.

(6) Investigate costsand charges for producing, hauling, handling, processing, distributing,selling, and for all other services, performed with respect to milk.

(7) Examine current economicforces affecting producers, probable trends in production and consumption, thelevel of dairy farm prices in relation to costs, the financial conditions ofdairy farmers, and the need for an emergency order to relieve criticalconditions on dairy farms.

§ 9. Equitable farm prices.

(a) The powers grantedin this section and Section 10 shall apply only to the establishment of acompact over‑order price, so long as federal milk marketing orders remainin effect in the region. In the event that any or all such orders areterminated, this Article authorizes the Commission to establish one or morecommission marketing orders, as herein provided, in the region or parts thereofas defined in the order.

(b) A compact over‑orderprice established pursuant to this section shall apply only to Class I milk.Such compact over‑order price shall not exceed one dollar and fifty cents($1.50) per gallon at Atlanta, Georgia, however, this compact over‑orderprice shall be adjusted upward or downward at other locations in the region toreflect differences in minimum federal order prices. Beginning in 1990, andusing that year as a base, the foregoing one dollar and fifty cents ($1.50) pergallon maximum shall be adjusted annually by the rate of change in the ConsumerPrice Index as reported by the Bureau of Labor Statistics of the United StatesDepartment of Labor. For purposes of the pooling and equalization of an over‑orderprice, the value of milk used in other use classifications shall be calculatedat the appropriate class price established pursuant to the applicable federalorder or state dairy regulation and the value of unregulated milk shall becalculated in relation to the nearest prevailing class price in accordance withand subject to such adjustments as the Commission may prescribe in regulations.

(d) The Commission mayestablish a compact over‑order price for milk to be paid by pool plantsand partially regulated plants. The Commission also may establish a compactover‑order price to be paid by all other handlers receiving milk fromproducers located in a regulated area. This price shall be established eitheras a compact over‑order price or by one or more commission marketingorders. Whenever such a price has been established by either type ofregulation, the legal obligation to pay such price shall be determined solelyby the terms and purpose of the regulation without regard to the situs of thetransfer of title, possession, or any other factors not related to the purposesof the regulation and this compact. Producer‑handlers as defined in anapplicable federal market order shall not be subject to a compact over‑orderprice. The Commission shall provide for similar treatment of producer‑handlersunder commission marketing orders.

(e) In determining theprice, the Commission shall consider the balance between production andconsumption of milk and milk products in the regulated area, the costs ofproduction including, but not limited to, the price of feed, the cost of laborincluding the reasonable value of the producer's own labor and management,machinery expense and interest expense, the prevailing price for milk outsidethe regulated area, the purchasing power of the public, and the price necessaryto yield a reasonable return to the producer and distributor.

(f) When establishinga compact over‑order price, the Commission shall take such other actionas is necessary and feasible to help ensure that the over‑order pricedoes not cause or compensate producers so as to generate local production ofmilk in excess of those quantities necessary to assure consumers of an adequatesupply for fluid purposes.

(g) The Commissionshall whenever possible enter into agreements with state or federal agenciesfor exchange of information or services for the purpose of reducing regulatoryburden and cost of administering the compact. The Commission may reimburseother agencies for the reasonable cost of providing these services.

§ 10. Optional provisions forpricing order.

Regulations establishing acompact over‑order price or a commission marketing order may contain, butshall not be limited to, any of the following:

(1) Provisionsclassifying milk in accordance with the form in which or purpose for which itis used, or creating a flat pricing program.

(2) With respect to acommission marketing order only, provisions establishing or providing a methodfor establishing separate minimum prices for each use classification prescribedby the Commission, or a single minimum price for milk purchased from producersor associations of producers.

(3) With respect to anover‑order minimum price, provisions establishing or providing a methodfor establishing such minimum price for Class I milk.

(4) Provisions for establishingeither an over‑order price or a commission marketing order may make useof any reasonable method for establishing such price or prices including flatpricing and formula pricing. Provision may also be made for locationadjustments, zone differentials, and competitive credits with respect toregulated handlers who market outside the regulated area.

(5) Provisions for thepayment to all producers and associations of producers delivering milk to allhandlers of uniform prices for all milk so delivered, irrespective of the usesmade of such milk by the individual handler to whom it is delivered, or for thepayment of producers delivering milk to the same handler of uniform prices forall milk delivered by them.

a. With respect toregulations establishing a compact over‑order price, the Commission mayestablish one equalization pool within the regulated area for the sole purposeof equalizing returns to producers throughout the regulated area.

b. With respect to anycommission marketing order, as defined in Section 2, subdivision (9), whichreplaces one or more terminated federal orders or state dairy regulation, themarketing area of now separate state or federal orders shall not be mergedwithout the affirmative consent of each state, voting through its delegation,which is partly or wholly included within any such new marketing area.

(6) Provisions requiringpersons who bring Class I milk into the regulated area to make compensatorypayments with respect to all such milk to the extent necessary to equalize thecost of milk purchased by handlers subject to a compact over‑order priceor commission marketing order. No such provisions shall discriminate againstmilk producers outside the regulated area. The provisions for compensatorypayments may require payment of the difference between the Class I pricerequired to be paid for such milk in the state of production by a federal milkmarketing order or state dairy regulation and the Class I price established bythe compact over‑order price or commission marketing order.

(7) Provisions speciallygoverning the pricing and pooling of milk handled by partially regulatedplants.

(8) Provisions requiringthat the account of any person regulated under the compact over‑orderprice shall be adjusted for any payments made to or received by such personswith respect to a producer settlement fund of any federal or state milkmarketing order or other state dairy regulation within the regulated area.

(9) Provision requiringthe payment by handlers of an assessment to cover the costs of theadministration and enforcement of such order pursuant to subsection (a) ofSection 18 of Article VII.

(10) Provisions forreimbursement to participants of the Women, Infants and Children SpecialSupplemental Food Program of the United States Child Nutrition Act of 1966.

(11) Other provisions andrequirements as the Commission may find are necessary or appropriate toeffectuate the purposes of this compact and to provide for the payment of fairand equitable minimum prices to producers.

ARTICLE V. Rule‑Making Procedure

§ 11. Rule‑makingprocedure.

Before promulgation of anyregulations establishing a compact over‑order price or commissionmarketing order, including any provision with respect to milk supply undersubsection (f) of Section 9, or amendment thereof, as provided in Article IV,the Commission shall conduct an informal rule‑making proceeding toprovide interested persons with an opportunity to present data and views. Suchrule‑making proceeding shall be governed by Section 4 of the FederalAdministrative Procedure Act, as amended (5 U.S.C. § 553). In addition, theCommission shall, to the extent practicable, publish notice of rule‑makingproceedings in the official register of each participating state. Before theinitial adoption of regulations establishing a compact over‑order priceor a commission marketing order and thereafter before any amendment with regardto prices or assessments, the Commission shall hold a public hearing. TheCommission may commence a rule‑making proceeding on its own initiative ormay in its sole discretion act upon the petition of any person includingindividual milk producers, 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 theconcise general statement of basis and purpose required by section 4(b) of theFederal Administrative Procedure Act, as amended (5 U.S.C. § 53 (c)), theCommission shall make findings of fact with respect to:

(1) Whether the publicinterest will be served by the establishment of minimum milk prices to dairyfarmers under Article IV.

(2) What level of priceswill assure that producers receive a price sufficient to cover their costs ofproduction and will elicit an adequate supply of milk for the inhabitants ofthe regulated area and for manufacturing purposes.

(3) Whether the majorprovisions of the order, other than those fixing minimum milk prices, are inthe public interest and are reasonably designed to achieve the purposes of theorder.

(4) Whether the terms ofthe proposed regional order or amendment are approved by producers as providedin Section 13.

§ 13. Producer referendum.

(a) For the purpose ofascertaining whether the issuance or amendment of regulations establishing acompact over‑order price or a commission marketing order, including anyprovision with respect to milk supply under subsection (f) of Section 9, isapproved by producers, the Commission shall conduct a referendum amongproducers. The referendum shall be held in a timely manner, as determined byregulation of the Commission. The terms and conditions of the proposed order oramendment shall be described by the Commission in the ballot used in theconduct of the referendum, but the nature, content, or extent of suchdescription shall not be a basis for attacking the legality of the order or anyaction relating thereto.

(b) An order oramendment shall be deemed approved by producers if the Commission determinesthat it is approved by at least two‑thirds of the voting producers who,during a representative period determined by the Commission, have been engagedin the production of milk the price of which would be regulated under theproposed order or amendment.

(c) For purposes of anyreferendum, the Commission shall consider the approval or disapproval by anycooperative association of producers, qualified under the provisions of the Actof Congress of February 18, 1922, as amended, known as the Capper‑VolsteadAct, bona fide engaged in marketing milk, or in rendering services for oradvancing the interests of producers of such commodity, as the approval ordisapproval of the producers who are members or stockholders in, or undercontract with, such cooperative association of producers, except as provided insubdivision (1) of this subsection and subject to the provisions ofsubdivisions (2) through (5) of this subsection.

(1) No cooperative thathas been formed to act as a common marketing agency for both cooperatives andindividual producers shall be qualified to block vote for either.

(2) Any cooperative thatis qualified to block vote shall, before submitting its approval or disapprovalin any referendum, give prior written notice to each of its members as towhether and how it intends to cast its vote. The notice shall be given in atimely manner as established, and in the form prescribed, by the Commission.

(3) Any producer mayobtain a ballot from the Commission in order to register approval ordisapproval of the proposed order.

(4) A producer who is amember of a cooperative which has provided notice of its intent to approve ornot to approve a proposed order, and who obtains a ballot and with such ballotexpresses his or her approval or disapproval of the proposed order, shallnotify the Commission as to the name of the cooperative of which he or she is amember, and the Commission shall remove such producer's name from the listcertified by such cooperative with its corporate vote.

(5) In order to ensurethat all milk producers are informed regarding a proposed order, the Commissionshall notify all milk producers that an order is being considered and that eachproducer may register his or her approval or disapproval with the Commissioneither directly or through his or her cooperative.

§ 14. Termination of over‑orderprice or marketing order.

(a) The Commissionshall terminate any regulations establishing an over‑order price orcommission marketing order issued under this Article whenever it finds thatsuch order or price obstructs or does not tend to effectuate the declaredpolicy of this compact.

(b) The Commissionshall terminate any regulations establishing an over‑order price or acommission marketing order issued under this Article whenever it finds thatsuch termination is favored by a majority of the producers who, during arepresentative period determined by the Commission, have been engaged in theproduction of milk, the price of which is regulated by such order; but suchtermination shall be effective only if announced on or before such date as maybe specified in such marketing agreement or order.

(c) The termination orsuspension of any order or provision thereof, shall not be considered an orderwithin the meaning of this Article and shall require no hearing, but shallcomply with the requirements for informal rule making prescribed by Section 4of the Federal Administrative Procedure Act, as amended (5 U.S.C. § 553).

ARTICLE VI. Enforcement

§ 15. Records, reports, accessto premises.

(a) The Commission mayby rule and regulation prescribe record keeping and reporting requirements forall regulated persons. For purposes of the administration and enforcement ofthis compact, the Commission may examine the books and records of any regulatedperson relating to his or her milk business and for that purpose, theCommission's properly designated officers, employees, or agents shall have fullaccess during normal business hours to the premises and records of allregulated persons.

(b) Informationfurnished to or acquired by the Commission officers, employees, or its agentspursuant to this section shall be confidential and not subject to disclosureexcept to the extent that the Commission deems disclosure to be necessary inany administrative or judicial proceeding involving the administration orenforcement of this compact, an over‑order price, a compact marketingorder, or other regulations of the Commission. The Commission may adopt rulesfurther defining the confidentiality of information pursuant to this section.Nothing in this section shall be deemed to prohibit (i) the issuance of generalstatements based upon the reports of a number of handlers, which do notidentify the information furnished by any person, or (ii) the publication bydirection of the Commission of the name of any person violating any regulationof the Commission, together with a statement of the particular provisionsviolated by such person.

(c) No officer,employee, or agent of the Commission shall intentionally disclose information,by inference or otherwise, that is made confidential pursuant to this section.Any person violating the provisions of this section shall, upon conviction, besubject to a fine of not more than one thousand dollars ($1,000) or toimprisonment for not more than one year, or both, and shall be removed fromoffice. The Commission shall refer any allegation of a violation of thissection to the appropriate state enforcement authority or United StatesAttorney.

§ 16. Subpoena, hearings, andjudicial review.

(a) The Commission ishereby authorized and empowered by its members and its properly designatedofficers to administer oaths and issue subpoenas throughout all signatorystates to compel the attendance of witnesses and the giving of testimony andthe production of other evidence.

(b) Any handler subjectto an order may file a written petition with the Commission stating that anyorder or any provision of any such order or any obligation imposed inconnection therewith is not in accordance with law and praying for a modificationthereof or to be exempted therefrom. The handler shall thereupon be given anopportunity for a hearing upon such petition, in accordance with regulationsmade by the Commission. After such hearing, the Commission shall make a rulingupon the prayer of such petition which shall be final, if in accordance withlaw.

(c) The district courtsof the United States in any district in which the handler is an inhabitant, orhas his or her principal place of business, are hereby vested with jurisdictionto review such ruling, provided a complaint for that purpose is filed within 30days from the date of the entry of the ruling. Service of process in theseproceedings may be had upon the Commission by delivering to it a copy of thecomplaint. If the court determines that the ruling is not in accordance withlaw, it shall remand such proceedings to the Commission with directions either(i) to make such ruling as the court shall determine to be in accordance withlaw, or (ii) to take such further proceedings as, in its opinion, the lawrequires. The pendency of proceedings instituted pursuant to this subdivisionshall not impede, hinder, or delay the Commission form obtaining reliefpursuant to Section 17. Any proceedings brought pursuant to Section 17, except wherebrought by way of counterclaim in proceedings instituted pursuant to thissection, shall abate whenever a final decree has been rendered in proceedingsbetween the same parties, and covering the same subject matter, institutedpursuant to this section.

§ 17. Enforcement with respectto handlers.

(a) Any violation by ahandler of the provisions of regulation establishing an over‑order priceor a commission marketing order, or other regulations adopted pursuant to thiscompact shall:

(1) Constitute a violationof the laws of each of the signatory states. Such violation shall render theviolator subject to a civil penalty in an amount as may be prescribed by thelaws of each of the participating states, recoverable in any state or federalcourt of competent jurisdiction. Each day such violation continues shallconstitute a separate violation.

(2) Constitute groundsfor the revocation of license or permit to engage in the milk business underthe applicable laws of the participating states.

(b) With respect tohandlers, the Commission shall enforce the provisions of this compact,regulations establishing an over‑order price, a commission marketingorder or other regulations adopted hereunder by:

(1) Commencing an actionfor legal or equitable relief brought in the name of the Commission in anystate or federal court of competent jurisdiction; or

(2) Referral to thestate agency for enforcement by judicial or administrative remedy with theagreement of the appropriate state agency of a participating state.

(c) With respect tohandlers, the Commission may bring an action for injunction to enforce theprovisions of this compact or the order or regulations adopted thereunderwithout being compelled to allege or prove that an adequate remedy of law doesnot exist.

ARTICLE VII. Finance

§ 18. Finance of start‑upand regular costs.

(a) To provide for itsstart‑up costs, the Commission may borrow money pursuant to its generalpower under Section 6, subdivision (d), paragraph 4. In order to finance thecost of administration and enforcement of this compact, including payback ofstart‑up costs, the Commission may collect an assessment from eachhandler who purchases milk from producers within the region. If imposed, thisassessment shall be collected on a monthly basis for up to one year from thedate the Commission convenes, in an amount not to exceed $.015 per hundredweight of milk purchased from producers during the period of the assessment.The initial assessment may apply to the projected purchases of handlers for thetwo‑month period following the date the Commission convenes. In addition,if regulations establishing an over‑order price or a compact marketingorder are adopted, they may include an assessment for the specific purpose oftheir administration. These regulations shall provide for establishment of areserve for the Commission's ongoing operating expenses.

(b) The Commissionshall not pledge the credit of any participating state or of the United States.Notes issued by the Commission and all other financial obligations incurred byit, shall be its sole responsibility and no participating state or the UnitedStates shall be liable therefor.

§ 19. Audit and accounts.

(a) The Commissionshall keep accurate accounts of all receipts and disbursements, which shall besubject to the audit and accounting procedures established under its rules. Inaddition, all receipts and disbursements of funds handled by the Commissionshall be audited yearly by a qualified public accountant and the report of theaudit shall be included in and become part of the annual report of theCommission.

(b) The accounts of theCommission shall be open at any reasonable time for inspection by dulyconstituted officers of the participating states and by any persons authorizedby the Commission.

(c) Nothing containedin this Article shall be construed to prevent commission compliance with lawsrelating to audit or inspection of accounts by or on behalf of anyparticipating 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 intoforce effective when enacted into law by any three states of the group ofstates composed of Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana,Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee,Texas, Virginia, and West Virginia and when the consent of Congress has beenobtained.

§ 21. Withdrawal from compact.

Any participating state maywithdraw from this compact by enacting a statute repealing the same, but nosuch withdrawal shall take effect until one year after notice in writing of thewithdrawal is given to the Commission and the governors of all theparticipating states. No withdrawal shall affect any liability already alreadyincurred by or chargeable to a participating state prior to the time of suchwithdrawal.

§ 22. Severability.

If any part or provision ofthis compact is adjudged invalid by any court, such judgment shall be confinedin its operation to the part or provision directly involved in the controversyin which such judgment shall have been rendered and shall not affect or impairthe validity of the remainder of this compact. In the event Congress consentsto this compact subject to conditions, said conditions shall not impair thevalidity of this compact when said conditions are accepted by three or morecompacting states. A compact state may accept the conditions of Congress byimplementation of this compact. (1997‑494, s. 1.)