                                 CODE OF VIRGINIA

SOUTHERN DAIRY COMPACT; FORM OF COMPACT (§ 3.2-3300)

The Southern Dairy Compact is enacted into law and entered into with all other
jurisdictions legally joining therein 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 is to recognize the interstate character of the
southern dairy industry and the prerogative of the states under the United
States Constitution to form an interstate commission for the southern region.
The mission of the Commission is to take such steps as are necessary to assure
the continued viability of dairy farming in the South, and to assure consumers
of an adequate, local supply of pure and wholesome milk.
		The participating states find and declare that the dairy industry is an
essential agricultural activity of the South. Dairy farms, and associated
suppliers, marketers, processors, and retailers, are an integral component of
the region&#8217;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, and they
are an integral part of the region&#8217;s rural communities. The farms preserve
land for agricultural purposes and provide needed economic stimuli for rural
communities.
		By entering into this compact, the participating states affirm that their
ability to regulate the price that southern dairy farmers receive for their
product is essential to the public interest. Assurance of a fair and equitable
price for dairy farmers ensures their ability to provide milk to the market and
the vitality of the southern dairy industry, with all the associated benefits.
		Recent dramatic price fluctuations, with a pronounced downward trend, threaten
the viability and stability of the southern dairy region. Historically,
individual state regulatory action had been an effective emergency remedy
available to farmers confronting a distressed market. The system of federal
orders, implemented by the Agricultural Marketing Agreement Act of 1937,
establishes only minimum prices paid to producers for raw milk, without
preempting the power of states to regulate milk prices above the minimum levels
so established.
		In today&#8217;s regional dairy marketplace, cooperative, rather than
individual state action is needed to more effectively address the market
disarray. Under our constitutional system, properly authorized states acting
cooperatively may exercise more power to regulate interstate commerce than they
may assert individually without such authority. For this reason, the
participating states invoke their authority to act in common agreement, with the
consent of Congress, under the compact clause of the Constitution.
		In establishing their constitutional regulatory authority over the
region&#8217;s fluid milk market by this compact, the participating states
declare their purpose that this compact neither displace the system of federal
orders nor encourage the merging of federal orders. Specific provisions of the
compact itself set forth this basic principle.
		Designed as a flexible mechanism able to adjust to changes in a regulated
marketplace, the compact also contains a contingency provision should the system
of federal orders be discontinued. In that event, the interstate commission may
regulate the marketplace in lieu of the system of federal orders. This
contingent authority does not anticipate such a change, however, and should not
be so construed. It is only provided should developments in the market other
than establishment of this compact result in discontinuance of the system of
federal orders.
		ARTICLE II. Definitions and Rules of Construction.
		§ 2. Definitions.
		For the purposes of this compact, and of any supplemental or concurring
legislation enacted pursuant thereto, except as may be otherwise required by the
context:
		&#8220;Class I milk&#8221; means milk disposed of in fluid form or as a fluid
milk product, subject to further definition in accordance with the principles
expressed in subsection (b) of § 3.
		&#8220;Commission&#8221; means the Southern Dairy Compact Commission
established by this compact.
		&#8220;Commission marketing order&#8221; means regulations adopted by the
Commission pursuant to §§ 9 and 10 of this compact in place of a terminated
federal marketing order or state dairy regulation. Such order may apply
throughout the region or in any part or parts thereof as defined in the
regulations of the Commission. Such order may establish minimum prices for any
or all classes of milk.
		&#8220;Compact&#8221; means this interstate compact.
		&#8220;Compact over-order price&#8221; means a minimum price required to be
paid to producers for Class I milk established by the Commission in regulations
adopted pursuant to §§ 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 Commission.
		&#8220;Milk&#8221; means the lacteal secretion of cows and includes all skim,
butterfat, or other constituents obtained from separation or any other process.
The term is used in its broadest sense and may be further defined by the
Commission for regulatory purposes.
		&#8220;Partially regulated plant&#8221; means a milk plant not located in a
regulated area but having Class I distribution within such area. Commission
regulations may exempt plants having such distribution or receipts in amounts
less than the limits defined therein.
		&#8220;Participating state&#8221; means a state which has become a party to
this compact by the enactment of concurring legislation.
		&#8220;Pool plant&#8221; means any milk plant located in a regulated area.
		&#8220;Region&#8221; means the territorial limits of the states which are
parties to this compact.
		&#8220;Regulated area&#8221; means any area within the region governed by and
defined in regulations establishing a compact over-order price or commission
marketing order.
		&#8220;State dairy regulation&#8221; means any state regulation of dairy
prices and associated assessments, whether by statute, marketing order, or
otherwise.
		§ 3. Rules of construction.

a. This compact shall not be construed to displace existing federal milk
marketing orders or state dairy regulation in the region but to supplement them.
In the event some or all federal orders in the region are discontinued, the
compact shall be construed to provide the Commission the option to replace them
with one or more commission marketing orders pursuant to this compact.

b. This compact shall be construed liberally in order to achieve the purposes
and intent enunciated in &#xA7; 1. It is the intent of this compact to establish
a basic structure by which the Commission may achieve those purposes through the
application, adaptation, and development 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
understood general meanings are not defined herein but the Commission may
further define the terms used in this compact and develop additional concepts
and define additional terms as it may find appropriate to achieve its purposes.
			ARTICLE III. Commission Established.
			&#xA7; 4. Commission established.
			There is hereby created a commission to administer the compact, composed of
delegations from each state in the region. The Commission shall be known as the
Southern Dairy Compact Commission. A delegation shall include not less than
three nor more than five persons. Each delegation shall include at least one
dairy farmer who is engaged in the production of milk at the time of appointment
or reappointment, and one consumer representative. Delegation members shall be
residents and voters of, and subject to such confirmation process as is provided
for in, the appointing state. Delegation members shall serve no more than three
consecutive terms with no single term of more than four years, and be subject to
removal for cause. In all other respects, delegation members shall serve in
accordance with the laws of the state 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.
			&#xA7; 5. Voting requirements.
			All actions taken by the Commission, except for the establishment or
termination of an over-order price or commission marketing order, and the
adoption, amendment, or rescission of the Commission&#8217;s bylaws, shall be by
majority vote of the delegations present. Each state delegation shall be
entitled to one vote in the conduct of the Commission&#8217;s affairs.
Establishment or termination of an over-order price or commission marketing
order shall require at least a two-thirds vote of the delegations present. The
establishment of a regulated area that covers all or part of a participating
state shall require also the affirmative vote of that state&#8217;s delegation.
A majority of the delegations from the participating states shall constitute a
quorum for the conduct of the Commission&#8217;s business.
			&#xA7; 6. Administration and management.

a. The Commission shall elect annually from among the members of the
participating state delegations a chairperson, a vice-chairperson, and a
treasurer. The Commission shall appoint an executive director and fix his or her
duties and compensation. The executive director shall serve at the pleasure of
the Commission, and, together with the treasurer, shall be bonded in an amount
determined by the Commission. The Commission may establish through its bylaws an
executive committee composed of one member elected by each delegation.

b. The Commission shall adopt bylaws for the conduct of its business by a
two-thirds vote and shall have the power by the same vote to amend and rescind
these bylaws. The Commission shall publish its bylaws in convenient 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 transacted at such meetings or
hearings. Notice also shall be given to other agencies or officers of
participating states as provided by the laws of those states.

c. The Commission shall file an annual report with the Secretary of Agriculture
of the United States, and with each of the participating states by submitting
copies to the Governor, both houses of the 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 may engage in all of the following:

   1. Sue and be sued in any state or federal court.

   2. Have a seal and alter the same at pleasure.

   3. Acquire, hold, and dispose of real and personal property by gift, purchase,
   lease, license, or other similar manner, for its corporate purposes.

   4. Borrow money and to issue notes, to provide for the rights of the holders
   thereof, and to pledge the revenue of the Commission as security therefor,
   subject to the provisions of &#xA7; 18 of this compact.

   5. Appoint such officers, agents, and employees as it may deem necessary,
   prescribe their powers, duties, and qualifications.

   6. Create and abolish such offices, employments, and positions as it deems
   necessary for the purposes of the compact and provide for the removal, term,
   tenure, compensation, fringe benefits, pension, and retirement rights of its
   officers and employees.

   7. Retain personal services on a contract basis.
   				&#xA7; 7. Rule-making power.
   				In addition to the power to promulgate a compact over-order price or
   commission marketing orders as provided by this compact, the Commission is
   further empowered to make and enforce such additional rules and regulations 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.
   				&#xA7; 8. Powers to promote regulatory uniformity, simplicity, and
   interstate cooperation.
   				The Commission may:

   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, and 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. Study and recommend to the participating states joint or cooperative
   programs for the administration of the dairy marketing laws and regulations
   and to prepare estimates of cost savings and benefits of such programs.

   3. Encourage the harmonious relationships between the various elements in the
   industry for the solution of their material problems. Conduct symposia or
   conferences designed to improve industry relations, or a better understanding
   of problems.

   4. Prepare and release periodic reports on activities and results of the
   Commission&#8217;s efforts to the participating states.

   5. 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.

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

   7. Examine current economic forces affecting producers, probable trends in
   production and consumption, the level of dairy farm prices in relation to
   costs, the financial conditions of dairy farmers, and the need for an
   emergency order to relieve critical conditions on dairy farms.
   				&#xA7; 9. Equitable farm prices.

a. The powers granted in this section and &#xA7; 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 authorizes the Commission to establish one or more
commission marketing orders, as herein provided, in the region or parts thereof
as defined in the order.

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

c. A commission marketing order shall apply to all classes and uses of milk.

d. The Commission may establish a compact over-order price for milk to be paid
by pool plants and partially regulated plants. The Commission also may establish
a compact over-order price to be paid by all other handlers receiving milk from
producers located in a regulated area. This price shall be established either as
a compact over-order price or by one or more commission marketing orders.
Whenever such a price has been established by either type of regulation, the
legal obligation to pay such price shall be determined solely by the terms and
purpose of the regulation without regard to the situs of the transfer of title,
possession, or any other factors not related to the purposes of the regulation
and this compact. Producer-handlers as defined in an applicable federal market
order shall not be subject to a compact over-order price. The Commission shall
provide for similar treatment of producer-handlers under commission marketing
orders.

e. In determining the price, the Commission shall consider the balance between
production and consumption of milk and milk products in the regulated area, the
costs of production including, but not limited to, the price of feed, the cost
of labor including the reasonable value of the producer&#8217;s own labor and
management, machinery expense and interest expense, the prevailing price for
milk outside the regulated area, the purchasing power of the public, and the
price necessary to yield a reasonable return to the producer and distributor.

f. When establishing a compact over-order price, the Commission shall take such
other action as is necessary and feasible to help ensure that the over-order
price does not cause or compensate producers so as to generate local production
of milk in excess of those quantities necessary to assure consumers of an
adequate supply for fluid purposes.

g. The Commission shall whenever possible enter into agreements with state or
federal agencies for exchange of information or services for the purpose of
reducing regulatory burden and cost of administering the compact. The Commission
may reimburse other agencies for the reasonable cost of providing these
services.
			§ 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 Commission, 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 formula pricing. Provision may also
   be made for location adjustments, zone differentials, and competitive 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 individual 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 establishing a compact over-order price,
   the Commission may establish one equalization pool within the regulated area
   for the sole purpose of equalizing returns to producers throughout the
   regulated area.
   				b. With respect to any commission marketing order, as defined in &#xA7; 2,
   subdivision (3), which replaces one or more terminated federal orders or state
   dairy regulation, the marketing area of now separate state or federal orders
   shall not be merged without the affirmative consent of each state, voting
   through its delegation, which is partly or wholly included within any such new
   marketing area.

   6. Provisions requiring persons who bring Class I milk into the regulated area
   to make compensatory payments with respect to all such milk to the extent
   necessary to equalize the cost of milk purchased by handlers subject to a
   compact over-order price or commission marketing order. No such provisions
   shall discriminate against milk producers outside the regulated area. The
   provisions for compensatory payments may require payment of the difference
   between the Class I price required to be paid for such milk in the state of
   production by a federal milk marketing order or state dairy regulation and the
   Class I price 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 the
   compact over-order price shall be adjusted for any payments made to or
   received by such persons with respect to a producer settlement fund of any
   federal or state milk marketing order or other state dairy regulation within
   the regulated area.

   9. Provision requiring the payment by handlers of an assessment to cover the
   costs of the administration and enforcement of such order pursuant to
   subsection (a) of &#xA7; 18 of Article VII.

   10. Provisions for reimbursement to participants 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 minimum prices to producers.
   				ARTICLE V. Rule-Making Procedure.
   				&#xA7; 11. Rule-making 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 subsection (f) of &#xA7; 9, or amendment thereof, as
   provided in Article IV, the Commission shall conduct an informal rule-making
   proceeding to provide interested persons with an opportunity to present data
   and views. Such rule-making proceeding shall be governed by &#xA7; 4 of the
   Federal Administrative Procedure Act, as amended (5 U.S.C. &#xA7; 553). In
   addition, the Commission shall, to the extent practicable, publish notice of
   rule-making 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 rule-making proceeding on its own initiative or
   may in its sole discretion act upon the petition of any person including
   individual milk producers, any organization of milk producers or handlers,
   general farm organizations, consumer or public interest groups, and local,
   state or federal officials.
   				&#xA7; 12. Findings and referendum.

a. In addition to the concise general statement of basis and purpose required by
§ 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 producers receive a price sufficient
   to cover their costs of production and will elicit an adequate supply of milk
   for the inhabitants of the regulated area and for manufacturing purposes.

   3. Whether the major provisions of the order, other than those fixing minimum
   milk prices, are in the public interest and are reasonably designed to achieve
   the purposes of the order.

   4. Whether the terms of the proposed regional order or amendment are approved
   by producers as provided in &#xA7; 13.
   				&#xA7; 13. Producer referendum.

a. For the purpose of ascertaining whether the issuance or amendment of
regulations establishing a compact over-order price or a commission marketing
order, including any provision with respect to milk supply under subsection (f)
of &#xA7; 9, is approved by producers, the Commission shall conduct a referendum
among producers. The referendum shall be held in a timely manner, as determined
by regulation of the Commission. The terms and conditions of the proposed order
or amendment shall be described by the Commission in the ballot used in the
conduct of the referendum, but the nature, content, or extent of such
description shall not be a basis for attacking the legality of the order or any
action relating thereto.

b. An order or amendment shall be deemed approved by producers if the Commission
determines that it is approved by at least two-thirds of the voting producers
who, during a representative period determined by the Commission, have been
engaged in the production of milk the price of which would be regulated under
the proposed order or amendment.

c. For purposes of any referendum, the Commission shall consider the approval or
disapproval by any cooperative association of producers, qualified under the
provisions of the Act of Congress of February 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 commodity, as the
approval or disapproval of the producers who are members or stockholders in, or
under contract with, such cooperative association of producers, except as
provided in subdivision (1) of this subsection and subject to the provisions of
subdivisions (2) through (5) of this subsection.

   1. No cooperative that has been formed to act as a common marketing agency for
   both cooperatives and individual producers shall be qualified to block vote
   for either.

   2. Any cooperative that is qualified to block vote shall, before submitting
   its approval or disapproval in any referendum, give prior written notice to
   each of its members as to whether and how it intends to cast its vote. The
   notice shall be given in a timely manner as established, and in the form
   prescribed, by the Commission.

   3. Any producer may obtain a ballot from the Commission in order to register
   approval or disapproval of the proposed order.

   4. A producer who is a member of a cooperative which has provided notice of
   its intent to approve or not to approve a proposed order, and who obtains a
   ballot and with such ballot expresses his or her approval or disapproval of
   the proposed order, shall notify the Commission as to the name of the
   cooperative of which he or she is a member, and the Commission shall remove
   such producer&#8217;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 Commission shall notify all milk producers that an order
   is being considered and that each producer may register his or her approval or
   disapproval with the Commission either directly or through his or her
   cooperative.
   				&#xA7; 14. Termination of over-order price or marketing order.

a. The Commission shall terminate any regulations establishing an over-order
price or commission marketing order issued under this Article whenever it finds
that such order or price obstructs or does not tend to effectuate the declared
policy of this compact.

b. The Commission shall terminate any regulations establishing an over-order
price or a commission marketing order issued under this 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 before such date as
may be specified in such marketing agreement or order.

c. The termination or suspension of any order or provision thereof, shall not be
considered an order within the meaning of this Article and shall require no
hearing, but shall comply with the requirements for informal rule making
prescribed by &#xA7; 4 of the Federal Administrative Procedure Act, as amended
(5 U.S.C. &#xA7; 553).
			ARTICLE VI. Enforcement.
			&#xA7; 15. Records, reports, access to premises.

a. The Commission may by rule and regulation prescribe record keeping and
reporting requirements for all regulated persons. For purposes of the
administration and enforcement of this compact, the Commission may examine the
books and records of any regulated person relating to his or her milk business
and for that purpose, the Commission&#8217;s properly designated officers,
employees, or agents shall have full access during normal business hours to the
premises and records of all regulated persons.

b. Information furnished to or acquired by the Commission officers, employees,
or its agents pursuant to this section shall be confidential and not subject to
disclosure except to the extent that the Commission deems disclosure to be
necessary in any administrative or judicial proceeding involving the
administration or enforcement of this compact, an over-order price, a compact
marketing order, or other regulations of the Commission. The Commission may
adopt rules further defining the confidentiality of information pursuant to this
section. Nothing in this section shall be deemed to prohibit (i) the issuance of
general statements based upon the reports of a number of handlers, which do not
identify the information furnished by any person, or (ii) the publication by
direction of the Commission of the name of any person violating any regulation
of the Commission, together with a statement of the particular provisions
violated 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, be subject to a fine of not more than one thousand dollars ($1,000)
or to imprisonment for not more than one 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.
			&#xA7; 16. Subpoena, hearings, and judicial review.

a. The Commission is hereby authorized and empowered by its members and its
properly designated officers to administer oaths and issue subpoenas throughout
all signatory states to compel the attendance of witnesses and the giving of
testimony and the production of other evidence.

b. Any handler subject to an order may file a written petition with the
Commission stating that any order or any provision of any such order or any
obligation imposed in connection therewith is not in accordance with law and
praying for a modification thereof or to be exempted therefrom. The handler
shall thereupon be given an opportunity for a hearing upon such petition, in
accordance with regulations made by the Commission. After such hearing, the
Commission shall make a ruling upon the prayer of such petition which shall be
final, if in accordance with law.

c. The district courts of the United States in any district in which the handler
is an inhabitant, or has his or her principal place of business, are hereby
vested with jurisdiction to review such ruling, provided a complaint for that
purpose is filed within 30 days from the date of the entry of the ruling.
Service of process in these proceedings may be had upon the Commission by
delivering to it a copy of the complaint. If the court determines that the
ruling is not in accordance with law, 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 with law, or (ii) to take such further proceedings
as, in its opinion, the law requires. The pendency of proceedings instituted
pursuant to this subdivision shall not impede, hinder, or delay the Commission
from obtaining relief pursuant to &#xA7; 17. Any proceedings brought pursuant to
&#xA7; 17, except where brought by way of counterclaim in proceedings instituted
pursuant to this section, shall abate whenever a final decree has been rendered
in proceedings between the same parties, and covering the same subject matter,
instituted pursuant to this section.
			&#xA7; 17. Enforcement with respect to handlers.

a. Any violation by a handler of the provisions of regulation establishing an
over-order price or a commission marketing order, or other regulations adopted
pursuant to this compact shall:

   1. Constitute a violation of the laws of each of the signatory states. Such
   violation shall render the violator subject to a civil penalty in an amount as
   may be prescribed by the laws of each of the participating states, recoverable
   in any state or federal court of competent jurisdiction. Each day such
   violation continues shall constitute a separate violation.

   2. Constitute grounds for the revocation of license or permit to engage in the
   milk business under the applicable laws of the participating states.

b. With respect to handlers, the Commission shall enforce the provisions of this
compact, regulations establishing an over-order price, a commission marketing
order or other regulations adopted 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. Referral to the state agency for enforcement by judicial or administrative
   remedy with the agreement of the appropriate state agency of a participating
   state.

c. With respect to handlers, the Commission may bring an action for injunction
to enforce the provisions of this compact or the order or regulations adopted
thereunder without being compelled to allege or prove that an adequate remedy of
law does not exist.
			ARTICLE VII. Finance.
			&#xA7; 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 &#xA7; 6, subsection (d), subdivision 4. In order to
finance the cost of administration and enforcement of this compact, including
payback of start-up costs, the Commission may collect an assessment from each
handler who purchases milk from producers within the region. If imposed, this
assessment shall be collected on a monthly basis for up to one year from the
date the Commission convenes, in an amount not to exceed $.015 per hundred
weight of milk purchased from producers during the period of the assessment. The
initial assessment may apply to the projected purchases of handlers for the
two-month period following the date the Commission convenes. In addition, if
regulations establishing an over-order price or a compact marketing order are
adopted, they may include an assessment for the specific purpose of their
administration. These regulations shall provide for establishment of a reserve
for the Commission&#8217;s ongoing operating expenses.

b. The Commission shall not pledge the credit of any participating state or of
the United States. Notes issued by the Commission and all other financial
obligations incurred by it, shall be its sole responsibility and no
participating state or the United States shall be liable therefor.
			&#xA7; 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 authorized by the Commission.

c. Nothing contained in this Article shall be construed to prevent commission
compliance with laws relating to audit or inspection of accounts by or on behalf
of any participating state or of the United States.
			ARTICLE VIII. Entry into Force; Additional Members and Withdrawal.
			&#xA7; 20. Entry into force; additional members.
			The compact shall enter into force effective when enacted into law by any
three states of the group of states composed of 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 been obtained.
			&#xA7; 21. Withdrawal from compact.
			Any participating state may withdraw from this compact by enacting a statute
repealing the same, but no such withdrawal shall take effect until one year
after notice in writing of the withdrawal is given to the Commission and the
governors of all the participating states. No withdrawal shall affect any
liability already incurred by or chargeable to a participating state prior to
the time of such withdrawal.
			&#xA7; 22. Severability.
			If any part or provision of this compact is adjudged invalid by any court,
such judgment shall be confined in its operation to the part or provision
directly involved in the controversy in which such judgment shall have been
rendered and shall not affect or impair the validity of the remainder of this
compact. In the event Congress consents to this compact subject to conditions,
said conditions shall not impair the validity of this compact when said
conditions are accepted by three or more compacting states. A compact state may
accept the conditions of Congress by implementation of this compact.

HISTORY: 1998, c. 706, § 3.1-461.1; 2008, c. 860.