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Calendar No. 92
106th CONGRESS
1st Session
S. J. RES. 22
_______________________________________________________________________
JOINT RESOLUTION
To reauthorize, and modify the conditions for, the consent of Congress
to the Northeast Interstate Dairy Compact and to grant the consent of
Congress to the Southern Dairy Compact.
_______________________________________________________________________
April 28, 1999
Read the second time and placed on the calendar
Calendar No. 92
106th CONGRESS
1st Session
S. J. RES. 22
To reauthorize, and modify the conditions for, the consent of Congress
to the Northeast Interstate Dairy Compact and to grant the consent of
Congress to the Southern Dairy Compact.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 27, 1999
Mr. Jeffords (for himself, Mr. Leahy, Mr. Specter, Mr. Cochran, Mr.
Moynihan, Mr. Sessions, Ms. Snowe, Mr. Lott, Ms. Landrieu, Ms. Collins,
Mr. Kennedy, Mr. Schumer, Mr. Shelby, Ms. Mikulski, Mr. Hollings, Mr.
Hutchinson, Mr. Dodd, Mr. Breaux, Mr. Thurmond, Mr. Chafee, Mr. Smith
of New Hampshire, Mr. Sarbanes, Mr. Coverdell, Mr. Cleland, Mr. Gregg,
Mr. Reed, Mr. Kerry, Mr. Helms, Mr. Byrd, Mr. Torricelli, Mr. Edwards,
Mr. Lieberman, Mr. Ashcroft, Mr. Rockefeller, Ms. Lincoln, Mr. Biden,
Mr. Frist, Mr. Bond, and Mr. Thompson) introduced the following joint
resolution; which was read the first time
April 28, 1999
Read the second time and placed on the calendar
_______________________________________________________________________
JOINT RESOLUTION
To reauthorize, and modify the conditions for, the consent of Congress
to the Northeast Interstate Dairy Compact and to grant the consent of
Congress to the Southern Dairy Compact.
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled,
TITLE I--NORTHEAST INTERSTATE DAIRY COMPACT
SEC. 101. NORTHEAST INTERSTATE DAIRY COMPACT.
Section 147 of the Agricultural Market Transition Act (7 U.S.C.
7256) is amended--
(1) in the matter preceding paragraph (1), by striking
``Massachusetts, New Hampshire,'' and inserting ``Maryland,
Massachusetts, New Hampshire, New Jersey, New York,'';
(2) by striking paragraphs (1), (3), and (7);
(3) in paragraph (4), by striking ``Delaware, New Jersey,
New York, Pennsylvania, Maryland, and Virginia'' and inserting
``Delaware, Ohio, and Pennsylvania'';
(4) in paragraph (5), by striking ``the projected rate of
increase'' and all that follows through ``Secretary'' and
inserting ``the operation of the Compact price regulation
during the fiscal year, as determined by the Secretary (in
consultation with the Commission) using notice and comment
procedures provided in section 553 of title 5, United States
Code''; and
(5) by redesignating paragraphs (2), (4), (5), and (6) as
paragraphs (1), (2), (3), and (4), respectively.
TITLE II--SOUTHERN DAIRY COMPACT
SEC. 201. CONGRESSIONAL CONSENT TO SOUTHERN DAIRY COMPACT.
(a) In General.--Congress consents to the Southern Dairy Compact
entered into among the States of Alabama, Arkansas, Kentucky,
Louisiana, Mississippi, North Carolina, South Carolina, Tennessee,
Virginia, and West Virginia, subject to the following conditions:
(1) Limitation of manufacturing price regulation.--The
Southern Dairy Compact Commission may not regulate Class II,
Class III, or Class III-A milk used for manufacturing purposes
or any other milk, other than Class I, or fluid milk, as
defined by a Federal milk marketing order issued under section
8c of the Agricultural Adjustment Act (7 U.S.C. 608c),
reenacted with amendments by the Agricultural Marketing Act of
1937 (referred to in this Act as ``Federal milk marketing
order'') unless Congress has first consented to and approved
such authority by a law enacted after the date of enactment of
this joint resolution.
(2) Additional states.--Florida, Georgia, Missouri,
Oklahoma, Kansas, and Texas are the only additional States that
may join the Southern Dairy Compact, individually or otherwise.
(3) Compensation of commodity credit corporation.--Before
the end of each fiscal year in which a Compact price regulation
is in effect, the Southern Dairy Compact Commission shall
compensate the Commodity Credit Corporation for the cost of any
purchases of milk and milk products by the Corporation that
result from the operation of the Compact price regulation
during the fiscal year, as determined by the Secretary (in
consultation with the Commission) using notice and comment
procedures provided in section 553 of title 5, United States
Code.
(4) Milk marketing order administrator.--At the request of
the Southern Dairy Compact Commission, the Administrator of the
applicable Federal milk marketing order shall provide technical
assistance to the Compact Commission and be compensated for
that assistance.
(b) Compact.--The Southern Dairy Compact is substantially as
follows:
``ARTICLE I. STATEMENT OF PURPOSE, FINDINGS AND DECLARATION OF POLICY
``Sec. 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'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's rural
communities. The farms preserve land for agricultural purposes and
provide needed economic stimuli for rural communities.
``In establishing their constitutional regulatory authority over
the region's fluid milk market by this compact, the participating
states declare their purpose that this compact neither displace the
federal order system nor 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 federal order system be discontinued. In that
event, the interstate commission is authorized to regulate the
marketplace in replacement of the order system. This contingent
authority does not anticipate such a change, however, and should not be
so construed. It is only provided should developments in the market
other than establishment of this compact result in discontinuance of
the order system.
``By entering into this compact, the participating states affirm
that their ability to regulate the price which 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 federal order system, 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'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.
``ARTICLE II. DEFINITIONS AND RULES OF CONSTRUCTION
``Sec. 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:
``(1) `Class I milk' means milk disposed of in fluid form
or as a fluid milk product, subject to further definition in
accordance with the principles expressed in subdivision (b) of
section three.
``(2) `Commission' means the Southern Dairy Compact
Commission established by this compact.
``(3) `Commission marketing order' means regulations
adopted by the commission pursuant to sections nine and ten 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.
``(4) `Compact' means this interstate compact.
``(5) `Compact over-order price' means a minimum price
required to be paid to producers for Class I milk established
by the commission in regulations adopted pursuant to sections
nine and ten of this compact, which is above the price
established in federal marketing orders or by state farm price
regulations 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.
``(6) `Milk' means the lacteral 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.
``(7) `Partially regulated plant' 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.
``(8) `Participating state' means a state which has become
a party to this compact by the enactment of concurring
legislation.
``(9) `Pool plant' 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) `Regulated area' means any area within the region
governed by and defined in regulations establishing a compact
over-order price or commission marketing order.
``(12) `State dairy regulation' means any state regulation
of dairy prices, and associated assessments, whether by
statute, marketing order or otherwise.
``Sec. 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) The compact shall be construed liberally in order to achieve
the purposes and intent enunciated in section one. 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
``Sec. 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.
``Sec. 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's by-laws,
shall be by majority vote of the delegations present. Each state
delegation shall be entitled to one vote in the conduct of the
commission'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
which covers all or part of a participating state shall require also
the affirmative vote of that state's delegation. A majority of the
delegations from the participating states shall constitute a quorum for
the conduct of the commission's business.
``Sec. 6. Administration and management
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