{"data":{"id":"us-ky/krs-260.670","jurisdiction":"us-ky","citation":"KRS 260.670","heading":"Southern Dairy Compact.  (Effective upon contingency)","body":"The Southern Dairy Compact is enacted into law and entered into with all other\njurisdictions legally joining therein in the form substantially as follows:\nARTICLE I\nSTATEMENT OF PURPOSE, FINDINGS, AND DECLARATION OF POLICY\nSection 1.  Statement of purpose, findings, and declaration of policy.\nThe purpose of this compact is to recognize the interstate character of the southern\ndairy industry and the prerogative of the states under the United States Constitution to\nform an interstate commission for the south ern region. The mission of the commission is\nto take such steps as are necessary to assure the continued viability of dairy farming in the\nSouth, and to assure consumers of an adequate, local supply of pure and wholesome milk.\nThe participating states fin d and declare that the dairy industry is an essential\nagricultural activity of the South. Dairy farms, and associated suppliers, marketers,\nprocessors, and retailers, are an integral component of the region's economy. Their ability\nto provide a stable, loc al supply of pure, wholesome milk is a matter of great importance\nto the health and welfare of the region.\nThe participating states further find that dairy farms are essential, and they are an\nintegral part of the region's rural communities. The farms pre serve land for agricultural\npurposes and provide needed economic stimuli for rural communities.\nBy entering into this compact, the participating states affirm that their ability to\nregulate the price that southern dairy farmers receive for their product i s essential to the\npublic interest. Assurance of a fair and equitable price for dairy farmers ensures their\nability to provide milk to the market and the vitality of the southern dairy industry, with\nall the associated benefits.\nRecent dramatic price fluctuations, with a pronounced downward trend, threaten the\nviability and stability of the southern dairy region. Historically, individual state regulatory\naction had been an effective emergency remedy available to farmers confronting a\ndistressed market. The  system of federal orders, implemented by the Agricultural\nMarketing Agreement Act of 1937, establishes only minimum prices paid to producers\nfor raw milk, without preempting the power of states to regulate milk prices above the\nminimum levels so established.\nIn today's regional dairy marketplace, cooperative, rather than individual, state\naction is needed to more effectively address the market disarray. Under our constitutional\nsystem, properly authorized states acting cooperatively may exercise more powe r to\nregulate interstate commerce than they may assert individually without such authority.\nFor this reason, the participating states invoke their authority to act in common\nagreement, with the consent of Congress, under the compact clause of the Constitution.\nIn establishing their constitutional regulatory authority over the region's fluid milk\nmarket by this compact, the participating states declare their purpose that this compact\nneither displace the system of federal orders nor encourage the merging of  federal orders.\nSpecific provisions of the compact itself set forth this basic principle.\nDesigned as a flexible mechanism able to adjust to changes in a regulated\nmarketplace, the compact also contains a contingency provision should the system of\nfederal orders be discontinued. In that event, the interstate commission may regulate the\nmarketplace in lieu of the system of federal orders. This contingent authority does not\nanticipate such a change, however, and should not be so construed. It is only provid ed\nshould developments in the market other than establishment of this compact result in\ndiscontinuance of the system of federal orders.\nARTICLE II\nDEFINITIONS AND RULES OF CONSTRUCTION\nSection 2.  Definitions.\nFor the purposes of this compact, and of any supplemental or concurring legislation\nenacted pursuant thereto, except as may be otherwise required by the context:\n(1)  \"Class I milk\" means milk disposed of in fluid form or as a fluid milk product,\nsubject to further definition in accordance with the principles expressed in subsection (b)\nof Section 3 of this compact.\n(2)  \"Commission\" means the Southern Dairy Compact Commission established by\nthis compact.\n(3)  \"Commission marketing order\" means regulatio ns adopted by the commission\npursuant to Sections 9 and 10 of this compact in place of a terminated federal marketing\norder or state dairy regulation. Such order may apply throughout the region or in any part\nor parts thereof as defined in the regulations of the commission. Such order may establish\nminimum prices for any or all classes of milk.\n(4)  \"Compact\" means this interstate compact.\n(5)  \"Compact over -order price\" means a minimum price required to be paid to\nproducers for Class I milk established b y the commission in regulations adopted pursuant\nto Sections 9 and 10 of this compact, which is above the price established in federal\nmarketing orders or by state farm price regulation in the regulated area. Such price may\napply throughout the region or in any part or parts thereof as defined in the regulations of\nthe commission.\n(6)  \"Milk\" means the lacteal secretion of cows and includes all skim, butterfat, or\nother constituents obtained from separation or any other process. The term is used in its\nbroadest sense and may be further defined by the commission for regulatory purposes.\n(7)  \"Partially regulated plant\" means a milk plant not located in a regulated area but\nhaving Class I distribution within such area. Commission regulations may exempt plant s\nhaving such distribution or receipts in amounts less than the limits defined therein.\n(8)  \"Participating state\" means a state which has become a party to this compact by\nthe enactment of concurring legislation.\n(9)  \"Pool plant\" means any milk plant located in a regulated area.\n(10)  \"Region\" means the territorial limits of the states which are parties to this\ncompact.\n(11)  \"Regulated area\" means any area within the region governed by and defined in\nregulations establishing a compact over-order price or commission marketing order.\n(12)  \"State dairy regulation\" means any state regulation of dairy prices and\nassociated assessments, whether by statute, marketing order, or otherwise.\nSection 3.  Rules of construction.\n(a)  This compact shall not be co nstrued to displace existing federal milk marketing\norders or state dairy regulation in the region but to supplement them. In the event some or\nall federal orders in the region are discontinued, the compact shall be construed to provide\nthe commission the option to replace them with one or more commission marketing\norders pursuant to this compact.\n(b)  This compact shall be construed liberally in order to achieve the purposes and\nintent enunciated in Section 1 of this compact. It is the intent of this comp act to establish\na basic structure by which the commission may achieve those purposes through the\napplication, adaptation, and development of the regulatory techniques historically\nassociated with milk marketing and to afford the commission broad flexibili ty to devise\nregulatory mechanisms to achieve the purposes of this compact. In accordance with this\nintent, the technical terms which are associated with market order regulation and which\nhave acquired commonly understood general meanings are not defined i n this compact,\nbut the commission may further define the terms used in this compact and develop\nadditional concepts and define additional terms as it may find appropriate to achieve its\npurposes.\nARTICLE III\nCOMMISSION ESTABLISHED\nSection 4.  Commission established.\nThere is hereby created a commission to administer the compact, composed of\ndelegations from each state in the region. The commission shall be known as the\nSouthern Dairy Compact Commission. A delegation shall include not less than three (3)\nnor more than five (5) persons. Each delegation shall include at least one (1) dairy farmer\nwho is engaged in the production of milk at the time of appointment or reappointment,\nand one (1) consumer representative. Delegation members shall be residents and voters\nof, and subject to such confirmation process as is provided for in, the appointing state.\nDelegation members shall serve no more than three (3) consecutive terms with no single\nterm of more than four (4) years, and be subject to removal for cause. I n all other\nrespects, delegation members shall serve in accordance with the laws of the state\nrepresented. The compensation, if any, of the members of a state delegation shall be\ndetermined and paid by each state, but their expenses shall be paid by the commission.\nSection 5.  Voting requirements.\nAll actions taken by the commission, except for the establishment or termination of\nan over -order price or commission marketing order, and the adoption, amendment, or\nrescission of the commission's bylaws, shall be by majority vote of the delegations\npresent. Each state delegation shall be entitled to one (1) vote in the conduct of the\ncommission's affairs. Establishment or termination of an over -order price or commission\nmarketing order shall require at least a t wo-thirds (2/3) vote of the delegations present.\nThe establishment of a regulated area that covers all or part of a participating state shall\nrequire also the affirmative vote of that state's delegation. A majority of the delegations\nfrom the participating states shall constitute a quorum for the conduct of the commission's\nbusiness.\nSection 6.  Administration and management.\n(a)  The commission shall elect annually from among the members of the\nparticipating state de legations a chairperson, a vice -chairperson, and a treasurer. The\ncommission shall appoint an executive director and fix his or her duties and\ncompensation. The executive director shall serve at the pleasure of the commission, and,\ntogether with the treasurer, shall be bonded in an amount determined by the commission.\nThe commission may establish through its bylaws an executive committee composed of\none (1) member elected by each delegation.\n(b)  The commission shall adopt bylaws for the conduct of its bus iness by a two -\nthirds (2/3) vote and shall have the power by the same vote to amend and rescind these\nbylaws. The commission shall publish its bylaws in convenient form with the appropriate\nagency or officer in each of the participating states. The bylaws shall provide for\nappropriate notice to the delegations of all commission meetings and hearings and of the\nbusiness to be transacted at such meetings or hearings. Notice also shall be given to other\nagencies or officers of participating states as provided by the laws of those states.\n(c)  The commission shall file an annual report with the Secretary of Agriculture of\nthe United States, and with each of the participating states by submitting copies to the\nGovernor, both houses of the legislature, and the he ad of the state department having\nresponsibilities for agriculture.\n(d)  In addition to the powers and duties elsewhere prescribed in this compact, the\ncommission may engage in all of the following:\n(1)  Sue and be sued in any state or federal court.\n(2)  Have a seal and alter the same at pleasure.\n(3)  Acquire, hold, and dispose of real and personal property by gift, purchase, lease,\nlicense, or other similar manner, for its corporate purposes.\n(4)  Borrow money and issue notes, provide for the rights of the holders thereof, and\npledge the revenue of the commission as security therefor, subject to the provisions of\nSection 18 of this compact.\n(5)  Appoint such officers, agents, and employees as it may deem necessary, and\nprescribe their powers, duties, and qualifications.\n(6)  Create and abolish such offices, employments, and positions as it deems\nnecessary for the purposes of the compact and provide for the removal, term, tenure,\ncompensation, fringe benefits, pension, and retirement rights of its of ficers and\nemployees.\n(7)  Retain personal services on a contract basis.\nSection 7.  Rule-making power.\nIn addition to the power to promulgate a compact over -order price or commission\nmarketing orders as provided by this compact, the commission is furthe r empowered to\nmake and enforce such additional rules and regulations as it deems necessary to\nimplement any provisions of this compact, or to effectuate in any other respect the\npurposes of this compact.\nARTICLE IV\nPOWERS OF THE COMMISSION\nSection 8.  Pow ers to promote regulatory uniformity, simplicity, and interstate\ncooperation.\nThe commission may:\n(1)  Investigate or provide for investigations or research projects designed to review\nthe existing laws and regulations of the participating states, to cons ider their\nadministration and costs, and to measure their impact on the production and marketing of\nmilk and their effects on the shipment of milk and milk products within the region.\n(2)  Study and recommend to the participating states joint or cooperati ve programs\nfor the administration of the dairy marketing laws and regulations and prepare estimates\nof cost savings and benefits of such programs.\n(3)  Encourage the harmonious relationships between the various elements in the\nindustry for the solution o f their material problems. Conduct symposia or conferences\ndesigned to improve industry relations, or a better understanding of problems.\n(4)  Prepare and release periodic reports on activities and results of the\ncommission's efforts to the participating states.\n(5)  Review the existing marketing system for milk and milk products and\nrecommend changes in the existing structure for assembly and distribution of milk which\nmay assist, improve, or promote more efficient assembly and distribution of milk.\n(6)  Investigate costs and charges for producing, hauling, handling, processing,\ndistributing, selling, and for all other services, performed with respect to milk.\n(7)  Examine current economic forces affecting producers, probable trends in\nproduction and co nsumption, the level of dairy farm prices in relation to costs, the\nfinancial conditions of dairy farmers, and the need for an emergency order to relieve\ncritical conditions on dairy farms.\nSection 9.  Equitable farm prices.\n(a)  The powers granted in thi s section and Section 10 of this compact shall apply\nonly to the establishment of a compact over-order price, so long as federal milk marketing\norders remain in effect in the region. In the event that any or all such orders are\nterminated, this article aut horizes the commission to establish one (1) or more\ncommission marketing orders, as provided in this compact, in the region or parts thereof\nas defined in the order.\n(b)  A compact over-order price established pursuant to this section shall apply only\nto Class I milk. Such compact over -order price shall not exceed one dollar and fifty cents\n($1.50) per gallon at Atlanta, Georgia; however, this compact over -order price shall be\nadjusted upward or downward at other locations in the region to reflect differences in\nminimum federal order prices. Beginning in 1990, and using that year as a base, the\nforegoing one dollar and fifty cents ($1.50) per gallon maximum shall be adj usted\nannually by the rate of change in the Consumer Price Index as reported by the Bureau of\nLabor Statistics of the United States Department of Labor. For purposes of the pooling\nand equalization of an over-order price, the value of milk used in other us e classifications\nshall be calculated at the appropriate class price established pursuant to the applicable\nfederal order or state dairy regulation and the value of unregulated milk shall be\ncalculated in relation to the nearest prevailing class price in a ccordance with and subject\nto such adjustments as the commission may prescribe in regulations.\n(c)  A commission marketing order shall apply to all classes and uses of milk.\n(d)  The commission may establish a compact over -order price for milk to be paid\nby pool plants and partially regulated plants. The commission also may establish a\ncompact over-order price to be paid by all other handlers receiving milk from producers\nlocated in a regulated area. This price shall be established either as a compact ove r-order\nprice or by one or more commission marketing orders. Whenever such a price has been\nestablished by either type of regulation, the legal obligation to pay such price shall be\ndetermined solely by the terms and purpose of the regulation without regard to the situs of\nthe transfer of title, possession, or any other factors not related to the purposes of the\nregulation and this compact. Producer-handlers as defined in an applicable federal market\norder shall not be subject to a compact over -order price. The commission shall provide\nfor similar treatment of producer-handlers under commission marketing orders.\n(e)  In determining the price, the commission shall consider the balance between\nproduction and consumption of milk and milk products in the regula ted area, the costs of\nproduction including, but not limited to, the price of feed, the cost of labor including the\nreasonable value of the producer's own labor and management, machinery expense and\ninterest expense, the prevailing price for milk outside t he regulated area, the purchasing\npower of the public, and the price necessary to yield a reasonable return to the producer\nand distributor.\n(f)  When establishing a compact over -order price, the commission shall take such\nother action as is necessary and  feasible to help ensure that the over -order price does not\ncause or compensate producers so as to generate local production of milk in excess of\nthose quantities necessary to assure consumers of an adequate supply for fluid purposes.\n(g)  The commission shall whenever possible enter into agreements with state or\nfederal agencies for exchange of information or services for the purpose of reducing\nregulatory burden and cost of administering the compact. The commission may reimburse\nother agencies for the reasonable cost of providing these services.\nSection 10.  Optional provisions for pricing order.\nRegulations establishing a compact over -order price or a commission marketing order\nmay contain, but shall not be limited to, any of the following:\n(1)  Provisions classifying milk in accordance with the form in which or purpose for\nwhich it is used, or creating a flat pricing program.\n(2)  With respect to a commission marketing order only, provisions establishing or\nproviding a method for establishing separate minimum prices for each use classification\nprescribed by the commission, or a single minimum price for milk purchased from\nproducers or associations of producers.\n(3)  With respect to an over -order minimum price, provisions establishing or\nproviding a method for establishing such minimum price for Class I milk.\n(4)  Provisions for establishing either an over -order price or a commission\nmarketing order may make use of any reasonable method for establishing such price or\nprices including flat pricing and formula pricing. Provision may also be made for location\nadjustments, zone differentials, and competitive credits with respect to regulated handlers\nwho market outside the regulated area.\n(5)  Provisions for the payment to all producers and associations of producers\ndelivering milk to all handlers of uniform prices for all milk so delivered, irrespective of\nthe uses made of such milk by the individual handler to whom it is delivered, or for the\npayment of producers delivering milk to the same handler of unif orm prices for all milk\ndelivered by them.\na.  With respect to regulations establishing a compact over -order price, the\ncommission may establish one (1) equalization pool within the regulated area for the sole\npurpose of equalizing returns to producers throughout the regulated area.\nb.  With respect to any commission marketing order, as defined in Section 2,\nsubdivision (3), of this compact, which replaces one (1) or more terminated federal orders\nor state dairy regulation, the marketing area of now separ ate state or federal orders shall\nnot be merged without the affirmative consent of each state, voting through its delegation,\nwhich is partly or wholly included within any such new marketing area.\n(6)  Provisions requiring persons who bring Class I milk i nto the regulated area to\nmake compensatory payments with respect to all such milk to the extent necessary to\nequalize the cost of milk purchased by handlers subject to a compact over -order price or\ncommission marketing order. No such provisions shall disc riminate against milk\nproducers outside the regulated area. The provisions for compensatory payments may\nrequire payment of the difference between the Class I price required to be paid for such\nmilk in the state of production by a federal milk marketing or der or state dairy regulation\nand the Class I price established by the compact over -order price or commission\nmarketing order.\n(7)  Provisions specially governing the pricing and pooling of milk handled by\npartially regulated plants.\n(8)  Provisions requiring that the account of any person regulated under the compact\nover-order price shall be adjusted for any payments made to or received by such persons\nwith respect to a producer settlement fund of any federal or state milk marketing order or\nother state dairy regulation within the regulated area.\n(9)  Provision requiring the payment by handlers of an assessment to cover the costs\nof the administration and enforcement of such order pursuant to subsection (a) of Section\n18 of Article VII of this compact.\n(10)  Provisions for reimbursement to participants of the Women, Infants and\nChildren Special Supplemental Food Program of the United States Child Nutrition Act of\n1966.\n(11)  Other provisions and requirements as the commission may find are necessary\nor appropriate to effectuate the purposes of this compact and to provide for the payment\nof fair and equitable minimum prices to producers.\nARTICLE V\nRULE-MAKING PROCEDURE\nSection 11.  Rule-making procedure.\nBefore promulgation of any regulations establishing  a compact over -order price or\ncommission marketing order, including any provision with respect to milk supply under\nsubsection (f) of Section 9 of this compact, or amendment thereof, as provided in Article\nIV of this compact, the commission shall conduct an informal rule-making proceeding to\nprovide interested persons with an opportunity to present data and views. Such rule -\nmaking proceeding shall be governed by Section 4 of the Federal Administrative\nProcedure Act, as amended (5 U.S.C. sec. 553). In addit ion, the commission shall, to the\nextent practicable, publish notice of rule -making proceedings in the official register of\neach participating state. Before the initial adoption of regulations establishing a compact\nover-order price or a commission marketi ng order and thereafter before any amendment\nwith regard to prices or assessments, the commission shall hold a public hearing. The\ncommission may commence a rule -making proceeding on its own initiative or may in its\nsole discretion act upon the petition of  any person including individual milk producers,\nany organization of milk producers or handlers, general farm organizations, consumer or\npublic interest groups, and local, state or federal officials.\nSection 12.  Findings and referendum.\n(a)  In addition to the concise general statement of basis and purpose required by\nsection 4(b) of the Federal Administrative Procedure Act, as amended (5 U.S.C. sec. 553\n(c)), the commission shall make findings of fact with respect to:\n(1)  Whether the p ublic interest will be served by the establishment of minimum\nmilk prices to dairy farmers under Article IV of this compact.\n(2)  What level of prices will assure that producers receive a price sufficient to\ncover their costs of production and will elicit  an adequate supply of milk for the\ninhabitants of the regulated area and for manufacturing purposes.\n(3)  Whether the major provisions of the order, other than those fixing minimum\nmilk prices, are in the public interest and are reasonably designed to ac hieve the purposes\nof the order.\n(4)  Whether the terms of the proposed regional order or amendment are approved\nby producers as provided in Section 13 of this compact.\nSection 13.  Producer referendum.\n(a)  For the purpose of ascertaining whether the is suance or amendment of\nregulations establishing a compact over -order price or a commission marketing order,\nincluding any provision with respect to milk supply under subsection (f) of Section 9 of\nthis compact, is approved by producers, the commission shal l conduct a referendum\namong producers. The referendum shall be held in a timely manner, as determined by\nregulation of the commission. The terms and conditions of the proposed order or\namendment shall be described by the commission in the ballot used in t he conduct of the\nreferendum, but the nature, content, or extent of such description shall not be a basis for\nattacking the legality of the order or any action relating thereto.\n(b)  An order or amendment shall be deemed approved by producers if the\ncommission determines that it is approved by at least two -thirds (2/3) of the voting\nproducers who, during a representative period determined by the commission, have been\nengaged in the production of milk the price of which would be regulated under the\nproposed order or amendment.\n(c)  For purposes of any referendum, the commission shall consider the approval or\ndisapproval by any cooperative association of producers, qualified under the provisions of\nthe Act of Congress of February 18, 1922, as amended, known as the Capper -Volstead\nAct, bona fide engaged in marketing milk, or in rendering services for or advancing the\ninterests of producers of such commodity, as the approval or disapproval of the producers\nwho are members or stockholders in, or under contract w ith, such cooperative association\nof producers, except as provided in subdivision (1) of this subsection and subject to the\nprovisions of subdivisions (2) through (5) of this subsection.\n(1)  No cooperative that has been formed to act as a common marketin g agency for\nboth cooperatives and individual producers shall be qualified to block vote for either.\n(2)  Any cooperative that is qualified to block vote shall, before submitting its\napproval or disapproval in any referendum, give prior written notice to each of its\nmembers as to whether and how it intends to cast its vote. The notice shall be given in a\ntimely manner as established, and in the form prescribed, by the commission.\n(3)  Any producer may obtain a ballot from the commission in order to regist er\napproval or disapproval of the proposed order.\n(4)  A producer who is a member of a cooperative which has provided notice of its\nintent to approve or not to approve a proposed order, and who obtains a ballot and with\nsuch ballot expresses his or her approval or disapproval of the proposed order, shall notify\nthe commission as to the name of the cooperative of which he or she is a member, and the\ncommission shall remove such producer's name from the list certified by such cooperative\nwith its corporate vote.\n(5)  In order to ensure that all milk producers are informed regarding a proposed\norder, the commission shall notify all milk producers that an order is being considered\nand that each producer may register his or her approval or disapproval with the\ncommission either directly or through his or her cooperative.\nSection 14.  Termination of over-order price or marketing order.\n(a)  The commission shall terminate any regulations establishing an over-order price\nor commission marketing order issued under this article whenever it finds that such order\nor price obstructs or does not tend to effectuate the declared policy of this compact.\n(b)  The commission shall terminate any regulations establishing an over-order price\nor a commission marketing order issu ed under this article whenever it finds that such\ntermination is favored by a majority of the producers who, during a representative period\ndetermined by the commission, have been engaged in the production of milk, the price of\nwhich is regulated by such o rder; but such termination shall be effective only if\nannounced on or before such date as may be specified in such marketing agreement or\norder.\n(c)  The termination or suspension of any order or provision thereof, shall not be\nconsidered an order within the meaning of this article and shall require no hearing, but\nshall comply with the requirements for informal rule making prescribed by Section 4 of\nthe Federal Administrative Procedure Act, as amended (5 U.S.C. sec. 553).\nARTICLE VI\nENFORCEMENT\nSection 15.  Records, reports, access to premises.\n(a)  The commission may by rule and regulation prescribe recordkeeping and\nreporting requirements for all regulated persons. For purposes of the administration and\nenforcement of this compact, the commission may ex amine the books and records of any\nregulated person relating to his or her milk business and for that purpose, the\ncommission's properly designated officers, employees, or agents shall have full access\nduring normal business hours to the premises and records of all regulated persons.\n(b)  Information furnished to or acquired by the commission officers, employees, or\nits agents pursuant to this section shall be confidential and not subject to disclosure\nexcept to the extent that the commission deems disclos ure to be necessary in any\nadministrative or judicial proceeding involving the administration or enforcement of this\ncompact, an over -order price, a compact marketing order, or other regulations of the\ncommission. The commission may adopt rules further def ining the confidentiality of\ninformation pursuant to this section. Nothing in this section shall be deemed to prohibit\n(i) the issuance of general statements based upon the reports of a number of handlers,\nwhich do not identify the information furnished by  any person, or (ii) the publication by\ndirection of the commission of the name of any person violating any regulation of the\ncommission, together with a statement of the particular provisions violated by such\nperson.\n(c)  No officer, employee, or agent o f the commission shall intentionally disclose\ninformation, by inference or otherwise, that is made confidential pursuant to this section.\nAny person violating the provisions of this section shall, upon conviction, be subject to a\nfine of not more than one thousand dollars ($1,000) or to imprisonment for not more than\none (1) year, or both, and shall be removed from office. The commission shall refer any\nallegation of a violation of this section to the appropriate state enforcement authority or\nUnited States Attorney.\nSection 16.  Subpoena, hearings, and judicial review.\n(a)  The commission is hereby authorized and empowered by its members and its\nproperly designated officers to administer oaths and issue subpoenas throughout all\nsignatory states to compel the attendance of witnesses and the giving of testimony and the\nproduction of other evidence.\n(b)  Any handler subject to an order may file a written petition with the commission\nstating that any order or any provision of any such order or any obligation imposed in\nconnection therewith is not in accordance with law and praying for a modification thereof\nor to be exempted therefrom. The handler shall thereupon be given an opportunity for a\nhearing upon such petition, in accordance with regulations made by the commission.\nAfter such hearing, the commission shall make a ruling upon the prayer of such p etition\nwhich shall be final, if in accordance with law.\n(c)  The district courts of the United States in any district in which the handler is an\ninhabitant, or has his or her principal place of business, are hereby vested with\njurisdiction to review such  ruling, provided a complaint for that purpose is filed within\nthirty (30) days from the date of the entry of the ruling. Service of process in these\nproceedings may be had upon the commission by delivering to it a copy of the complaint.\nIf the court determines that the ruling is not in accordance with law, it shall remand such\nproceedings to the commission with directions either (i) to make such ruling as the court\nshall determine to be in accordance with law, or (ii) to take such further proceedings as,\nin its opinion, the law requires. The pendency of proceedings instituted pursuant to this\nsubdivision shall not impede, hinder, or delay the commission from obtaining relief\npursuant to Section 17 of this compact. Any proceedings brought pursuant to Section  17\nof this compact, except where brought by way of counterclaim in proceedings instituted\npursuant to this section, shall abate whenever a final decree has been rendered in\nproceedings between the same parties, and covering the same subject matter, instit uted\npursuant to this section.\nSection 17.  Enforcement with respect to handlers.\n(a)  Any violation by a handler of the provisions of regulation establishing an over -\norder price or a commission marketing order, or other regulations adopted pursuant to this\ncompact shall:\n(1)  Constitute a violation of the laws of each of the signatory states. Such violation\nshall render the violator subject to a civil penalty in an amount as may be prescribed by\nthe laws of each of the participating states, recoverable i n any state or federal court of\ncompetent jurisdiction. Each day such violation continues shall constitute a separate\nviolation.\n(2)  Constitute grounds for the revocation of license or permit to engage in the milk\nbusiness under the applicable laws of the participating states.\n(b)  With respect to handlers, the commission shall enforce the provisions of this\ncompact, regulations establishing an over -order price, a commission marketing order, or\nother regulations adopted hereunder by:\n(1)  Commencing an action for legal or equitable relief brought in the name of the\ncommission in any state or federal court of competent jurisdiction; or\n(2)  Referral to the state agency for enforcement by judicial or administrative\nremedy with the agreement of the appropriate state agency of a participating state.\n(c)  With respect to handlers, the commission may bring an action for injunction to\nenforce the provisions of this compact or the order or regulations adopted thereunder\nwithout being compelled to allege or prove that an adequate remedy of law does not exist.\nARTICLE VII\nFINANCE\nSection 18.  Finance of start-up and regular costs.\n(a)  To provide for its start-up costs, the commission may borrow money pursuant to\nits general power under Section 6, subdivision (d) , paragraph 4 of this compact. In order\nto finance the cost of administration and enforcement of this compact, including payback\nof start -up costs, the commission may collect an assessment from each handler who\npurchases milk from producers within the regi on. If imposed, this assessment shall be\ncollected on a monthly basis for up to one (1) year from the date the commission\nconvenes, in an amount not to exceed $0.015 per hundred weight of milk purchased from\nproducers during the period of the assessment. T he initial assessment may apply to the\nprojected purchases of handlers for the two (2) month period following the date the\ncommission convenes. In addition, if regulations establishing an over -order price or a\ncompact marketing order are adopted, they may include an assessment for the specific\npurpose of their administration. These regulations shall provide for establishment of a\nreserve for the commission's ongoing operating expenses.\n(b)  The commission shall not pledge the credit of any participating st ate or of the\nUnited States. Notes issued by the commission and all other financial obligations incurred\nby it shall be its sole responsibility, and no participating state or the United States shall be\nliable therefor.\nSection 19.  Audit and accounts.\n(a)  The commission shall keep accurate accounts of all receipts and disbursements,\nwhich shall be subject to the audit and accounting procedures established under its rules.\nIn addition, all receipts and disbursements of funds handled by the commission shall  be\naudited yearly by a qualified public accountant, and the report of the audit shall be\nincluded in and become part of the annual report of the commission.\n(b)  The accounts of the commission shall be open at any reasonable time for\ninspection by duly c onstituted officers of the participating states and by any persons\nauthorized by the commission.\n(c)  Nothing contained in this article shall be construed to prevent commission\ncompliance with laws relating to audit or inspection of accounts by or on beha lf of any\nparticipating state or of the United States.\nARTICLE VIII\nENTRY INTO FORCE; ADDITIONAL MEMBERS; AND WITHDRAWAL\nSection 20.  Entry into force; additional members.\nThe compact shall enter into force effective when enacted into law by any three (3)\nstates of the group of states composed of Alabama, Arkansas, Florida, Georgia,\nKentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina,\nTennessee, Texas, Virginia, and West Virginia, and when the consent of Congress has\nbeen obtained.\nSection 21.  Withdrawal from compact.\nAny participating state may withdraw from this compact by enacting a statute\nrepealing the same, but no such withdrawal shall take effect until one (1) year after notice\nin writing of the withdrawal is given to the commission and the governors of all the\nparticipating states. No withdrawal shall affect any liability already incurred by or\nchargeable to a participating state prior to the time of such withdrawal.\nSection 22.  Severability.\nIf any part or provision of this compact is adjudged invalid by any court, such\njudgment shall be confined in its operation to the part or provision directly involved in\nthe controversy in which such judgment shall have been rendered and shall not affect o r\nimpair the validity of the remainder of this compact. In the event Congress consents to\nthis compact subject to conditions, said conditions shall not impair the validity of this\ncompact when said conditions are accepted by three (3) or more compacting st ates. A\ncompact state may accept the conditions of Congress by implementation of this compact.","path":["KRS Chapter 260"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=12613","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:09Z","sha256":"8c07465d75014e2049c5c46720568d8b5089005169eaa90cbc9734605b8a16ed","source_id":"us-ky","stale":false,"prev":"us-ky/krs-260.665","next":"us-ky/krs-260.672"},"notice":"GroundRules: Original legal text. Not legal advice."}