1.1                          A bill for an act 
  1.2             relating to agriculture; establishing a Midwest 
  1.3             Interstate Dairy Compact; appropriating money; 
  1.4             proposing coding for new law as Minnesota Statutes, 
  1.5             chapter 236B. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [236B.01] [MIDWEST INTERSTATE DAIRY COMPACT.] 
  1.8      Subdivision 1.  [ARTICLE I - RATIFICATION; PURPOSE.] The 
  1.9   state of Minnesota ratifies and approves the compact in this 
  1.10  section.  
  1.11     It is the purpose of this compact to: 
  1.12     (1) assure the continued viability of dairy farming in the 
  1.13  Midwest and to assure consumers and manufacturers of an adequate 
  1.14  local supply of pure and wholesome milk; 
  1.15     (2) enhance the economic and general welfare of citizens of 
  1.16  the joining states engaged in the production and sale of milk 
  1.17  and dairy products; 
  1.18     (3) protect the economies and very existence of local 
  1.19  communities in the joining states, understanding that dairy 
  1.20  farms and associated suppliers, marketers, processors, and 
  1.21  retailers are an integral component of the region's economy; and 
  1.22     (4) assure the continued production of milk in joining 
  1.23  states in quantities necessary to provide wholesome dairy 
  1.24  products to an increasing United States population. 
  1.25     Subd. 2.  [ARTICLE II - DEFINITIONS.] (a) The definitions 
  2.1   in this article apply to this compact. 
  2.2      (b) "Commission" means the Midwest Interstate Dairy 
  2.3   Commission established in subdivision 4. 
  2.4      (c) "Compact" means this interstate compact. 
  2.5      (d) "Compact over-order price" means a minimum price 
  2.6   required to be paid to producers for Class I milk established by 
  2.7   the commission, which is above the price established in federal 
  2.8   marketing orders in the regulated area. 
  2.9      (e) "Joining state" means a state which has become a party 
  2.10  to this compact by the enactment of concurring legislation. 
  2.11     (f) "Milk" has the meaning given in section 32.391. 
  2.12     (g) "State" means a state of the United States located 
  2.13  wholly or partially within the geographic region commonly 
  2.14  referred to as the Midwest in which milk is produced for the 
  2.15  markets of the nation and world. 
  2.16     (h) "State dairy regulation" means any state regulation of 
  2.17  dairy prices, and associated assessments, whether by statute, 
  2.18  marketing order, or otherwise. 
  2.19     Subd. 3.  [ARTICLE III - CONSTRUCTION.] This compact must 
  2.20  not be construed to displace existing federal milk marketing 
  2.21  orders or state dairy regulation in the region but to supplement 
  2.22  them.  This compact must be construed liberally in order to 
  2.23  achieve its purposes and intent.  It is the intent of this 
  2.24  compact to establish a basic structure by which the commission 
  2.25  may achieve those purposes through the application of regulatory 
  2.26  techniques to achieve the purposes of this compact. 
  2.27     Subd. 4.  [ARTICLE IV - COMMISSION.] The Midwest Interstate 
  2.28  Dairy Commission is an agency of the joining states.  The 
  2.29  commission consists of five residents of each joining state who 
  2.30  have an agricultural background, as follows:  (1) the head of 
  2.31  the state department responsible for agriculture; (2) two 
  2.32  members appointed by the governor, who are dairy farmers engaged 
  2.33  in the production of milk at the time of appointment or 
  2.34  reappointment; (3) one senator appointed in the manner 
  2.35  prescribed by the senate of the state; and (4) one member of the 
  2.36  house of representatives appointed in the manner prescribed by 
  3.1   the house of representatives of the state.  Members appointed by 
  3.2   the governor serve at the pleasure of the governor.  Members 
  3.3   shall serve terms of two years and may be reappointed.  The 
  3.4   attorneys general of joining states or assistants designated by 
  3.5   the attorneys general are nonvoting members of the commission. 
  3.6      (b) A majority of the sum of all commission members from 
  3.7   the joining states constitutes a quorum for the conduct of the 
  3.8   commission's business.  Each member is entitled to one vote.  A 
  3.9   member must be present to vote and voting by proxy is not 
  3.10  permitted.  The commission may not act unless a majority of the 
  3.11  voting members are present.  All actions taken by the 
  3.12  commission, except for the establishment or termination of an 
  3.13  over-order price or commission marketing order, must be by 
  3.14  majority vote of the members present.  Establishment or 
  3.15  termination of an over-order price or commission marketing order 
  3.16  requires a two-thirds vote of the members present. 
  3.17     (c) The commission is a body corporate of each joining 
  3.18  state and may adopt an official seal for its use.  
  3.19     (d) The commission shall hold an annual meeting and any 
  3.20  other regular meetings as its bylaws may provide and special 
  3.21  meetings as a majority of its members may determine.  The 
  3.22  commission bylaws may specify the dates of the annual and any 
  3.23  other regular meetings and shall provide for the giving of 
  3.24  notice of annual, regular, and special meetings.  Notice of a 
  3.25  special meeting must include the reasons for the meeting and an 
  3.26  agenda of the items to be considered. 
  3.27     (e) The commission shall elect annually, from among its 
  3.28  voting members, a chairperson, a vice-chairperson, and a 
  3.29  treasurer.  The commission may use staff services provided by 
  3.30  one or more of the joining states or may appoint an executive 
  3.31  director who shall serve at its pleasure.  The executive 
  3.32  director, if appointed, is the secretary of the commission.  The 
  3.33  commission may provide for the bonding of its officers and 
  3.34  employees as it considers appropriate. 
  3.35     (f) Irrespective of the civil service, personnel, or other 
  3.36  merit system laws of any joining state, the commission may 
  4.1   appoint or discharge any personnel necessary for the performance 
  4.2   of the functions of the commission.  The commission may borrow, 
  4.3   accept, or contract for the services of personnel from any 
  4.4   state, the United States, or any other governmental entity. 
  4.5      (g) The commission may accept for any of its purposes and 
  4.6   functions any and all donations and grants of money, equipment, 
  4.7   supplies, materials, and services, conditional or otherwise, 
  4.8   from any governmental entity and may use and dispose of the same.
  4.9      (h) The commission may establish one or more offices for 
  4.10  the transacting of its business. 
  4.11     (i) The commission may adopt bylaws for the conduct of its 
  4.12  business.  The commission shall publish its bylaws in convenient 
  4.13  form and shall file a copy of the bylaws and any amendments to 
  4.14  them with the appropriate agency or officer in each of the 
  4.15  joining states. 
  4.16     (j) The commission shall annually report to the governor 
  4.17  and legislature of each joining state covering its activities 
  4.18  for the preceding year.  Any donation or grant accepted by the 
  4.19  commission or services borrowed must be reported in the annual 
  4.20  report of the commission, including the nature, amount, and 
  4.21  conditions, if any, of the donation, gift, grant, or services 
  4.22  borrowed and the identity of the donor or lender.  The 
  4.23  commission may make additional reports it considers desirable. 
  4.24     (k) The commission may establish committees from its 
  4.25  membership in compliance with its bylaws to carry out its 
  4.26  functions. 
  4.27     Subd. 5.  [ARTICLE V - POWERS AND DUTIES OF COMMISSION.] (a)
  4.28  The commission may examine current economic forces affecting 
  4.29  producers, probable trends in production and consumption, the 
  4.30  level of dairy farm prices in relation to costs, the financial 
  4.31  conditions of dairy farmers, and the need for an emergency order 
  4.32  to relieve critical conditions on dairy farms.  The commission 
  4.33  may also conduct comprehensive and continuing studies and 
  4.34  investigations of milk and dairy product marketing practices, 
  4.35  procedures, and controls and their relationship to and effect 
  4.36  upon the citizens and economies of the joining states. 
  5.1      (b) The commission may make recommendations for the 
  5.2   correction of weaknesses and solutions to problems in the 
  5.3   present system of milk and dairy product marketing or the 
  5.4   development of alternatives to the present system, including the 
  5.5   development, drafting, and recommendation of proposed state or 
  5.6   federal legislation. 
  5.7      (c) For the purpose of ascertaining whether the issuance of 
  5.8   regulations establishing a compact over-order price or a 
  5.9   commission marketing order is approved by producers, the 
  5.10  commission may conduct a referendum among producers.  The 
  5.11  referendum must be held in a timely manner, as determined by the 
  5.12  commission. 
  5.13     (d) The commission may establish a minimum price for milk 
  5.14  to be paid by handlers receiving milk from producers located in 
  5.15  a regulated area.  This price may be established either as a 
  5.16  compact over-order price or by one or more commission marketing 
  5.17  orders.  Whenever such a price has been established by either 
  5.18  type of regulation, the legal obligation to pay that price must 
  5.19  be determined solely by the terms and purpose of the regulation 
  5.20  without regard to the location of the transfer of title, 
  5.21  possession, or any other factors not related to the purposes of 
  5.22  the regulation and this compact. 
  5.23     (e) The commission may do all things necessary and 
  5.24  incidental to the administration of its functions under this 
  5.25  compact. 
  5.26     Subd. 6.  [ARTICLE VI - FINANCE.] (a) The commission shall 
  5.27  submit to the governor of each joining state a budget of its 
  5.28  estimated expenditures for any period required by the laws of 
  5.29  that state for presentation to its legislature. 
  5.30     (b) The money necessary to finance the general operations 
  5.31  of the commission not otherwise provided for in carrying forth 
  5.32  its duties, responsibilities, and powers under this compact 
  5.33  shall be appropriated to the commission by the joining states, 
  5.34  when authorized by the respective legislatures.  Appropriations 
  5.35  by joining states for the financing of the operations of the 
  5.36  commission in the initial biennium of the compact shall be in 
  6.1   the amount of $....... for each joining state; thereafter the 
  6.2   total amount of appropriations requested must be apportioned 
  6.3   among the joining states in the manner determined by the 
  6.4   commission.  Failure of a joining state to provide its share of 
  6.5   financing is cause for the state to lose its membership in the 
  6.6   compact. 
  6.7      (c) The commission may not incur any obligations prior to 
  6.8   the making of appropriations adequate to meet them; nor shall 
  6.9   the commission pledge the credit of any of the joining states, 
  6.10  except by and with the authority of the joining state. 
  6.11     (d) The commission shall keep accurate accounts of all 
  6.12  receipts and disbursements.  The receipts and disbursements of 
  6.13  the commission are subject to the audit and accounting 
  6.14  procedures established under its bylaws.  However, all receipts 
  6.15  and disbursements of funds handled by the commission must be 
  6.16  audited yearly by a certified or licensed public accountant and 
  6.17  the report of the audit must be included in and become part of 
  6.18  the annual report of the commission. 
  6.19     (e) The accounts of the commission are open for public 
  6.20  inspection at any reasonable time. 
  6.21     Subd. 7.  [ARTICLE VII - ELIGIBLE PARTIES; ENTRY INTO 
  6.22  FORCE; WITHDRAWAL; AND TERMINATION.] (a) Any state may become a 
  6.23  member of this compact. 
  6.24     (b) This compact shall become effective initially when 
  6.25  enacted into law by any two states prior to July 1, 1999, and in 
  6.26  additional states upon their enactment of the compact into law. 
  6.27     (c) Any joining state may withdraw from this compact by 
  6.28  enacting a statute repealing the compact, but the withdrawal 
  6.29  does not become effective until one year after the enactment of 
  6.30  the statute and notification of the commission by the governor 
  6.31  of the withdrawing state.  A withdrawing state is liable for any 
  6.32  obligations that it incurred on account of its membership up to 
  6.33  the effective date of withdrawal.  If the withdrawing state has 
  6.34  specifically undertaken or committed itself to any performance 
  6.35  of an obligation extending beyond the effective date of 
  6.36  withdrawal, it remains liable to the extent of that obligation. 
  7.1      (d) This compact terminates one year after the notification 
  7.2   of withdrawal by the governor of any joining state that reduces 
  7.3   the total membership in the compact to less than two states. 
  7.4      Sec. 2.  [236B.02] [ADMINISTRATIVE SUPPORT.] 
  7.5      The commissioner of agriculture shall provide 
  7.6   administrative staff and support to the Midwest Interstate Dairy 
  7.7   Commission members from this state. 
  7.8      Sec. 3.  [APPROPRIATION.] 
  7.9      $....... is appropriated from the general fund to the 
  7.10  commissioner of agriculture for costs of participating in the 
  7.11  Midwest Interstate Dairy Compact to be available until June 30, 
  7.12  1999. 
  7.13     Sec. 4.  [EFFECTIVE DATE.] 
  7.14     Sections 1 to 3 are effective the day following final 
  7.15  enactment.  Authority to establish and enforce over-order prices 
  7.16  under subdivision 5, paragraph (d), is effective on the 
  7.17  effective date of legislation by the Congress of the United 
  7.18  States authorizing such over-order prices.